Identifier
Created
Classification
Origin
05YEREVAN2023
2005-11-18 04:30:00
CONFIDENTIAL
Embassy Yerevan
Cable title:  

FM BRAINSTORMS WITH DONORS, DIASPORA ON HIS NEW

Tags:  EAID PREL PGOV AM 
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This record is a partial extract of the original cable. The full text of the original cable is not available.

180430Z Nov 05
C O N F I D E N T I A L SECTION 01 OF 02 YEREVAN 002023 

SIPDIS

DEPT FOR EUR/CACEN, EUR/ACE, EB

E.O. 12958: DECL: 11/18/2015
TAGS: EAID PREL PGOV AM
SUBJECT: FM BRAINSTORMS WITH DONORS, DIASPORA ON HIS NEW
RURAL DEVELOPMENT INITIATIVE

REF: YEREVAN 1797

Classified By: CDA A.F.Godfrey for reasons 1.4 (b,d).

-------
SUMMARY
-------

C O N F I D E N T I A L SECTION 01 OF 02 YEREVAN 002023

SIPDIS

DEPT FOR EUR/CACEN, EUR/ACE, EB

E.O. 12958: DECL: 11/18/2015
TAGS: EAID PREL PGOV AM
SUBJECT: FM BRAINSTORMS WITH DONORS, DIASPORA ON HIS NEW
RURAL DEVELOPMENT INITIATIVE

REF: YEREVAN 1797

Classified By: CDA A.F.Godfrey for reasons 1.4 (b,d).

--------------
SUMMARY
--------------


1. (C) Foreign Minister Vartan Oskanian has hosted
discussions with international donors over the past two weeks
to brainstorm on a new Ministry of Foreign Affairs initiative
aimed at galvinizing diaspora resources to alleviate poverty
in rural Armenia. Oskanian's initial plans suggest the plan
will involve a nationwide "adopt-a-village" campaign that
would combine infrastructure, community development and
technical assistance projects. The concept is linked to the
theme of the next International Diaspora Conference that the
MFA is planning for Fall 2006. Oskanian has asked the
Ambassador for USG technical support in brainstorming and
coordinating with local branches of international donor
organizations as the MFA moves forward with its plan. End
Summary.

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LOOPING-IN THE DONORS
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2. (C) Foreign Minister Vartan Oskanian has hosted a series
of meetings recently with international donor organizations
to discuss his ideas for a nationwide rural development and
poverty reduction plan. Oskanian, who has reportedly floated
this idea with a number of influential diasporans over the
last few months, has unveiled his plan with the World Bank,
International Monetary Fund, United Nations Development
Program and a handful of bilateral donors over the last few
weeks. At each of these meetings, Oskanian reminded donors
that President Robert Kocharian blessed the initiative and
instructed the Prime Minister to give the MFA the technical
resources necessary to move it forward.

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BIG BUDGET HOPES FOR AN ADOPT-A-VILLAGE PLAN
--------------


3. (C) The program will involve a nationwide
"adopt-a-village" campaign aimed at galvanizing diaspora
resources in an effort to alleviate rural poverty. While
Oskanian's team has not specified any implementation plans
for the project, his initial comments suggest that the
program would combine infrastructure, community development
and local government technical assistance projects. Post has

learned that Oskanian has engaged a local (Canadian citizen)
consultant to draw up a concept paper based on his initial
conversations with donors for further discussion over the
next 2-3 months. Oskanian reportedly has "informal"
commitments for upwards of USD 230 million for the project
and will ramp up his fundraising efforts at meetings with
American-Armenians during his November 23-25 trip to Los
Angeles and San Francisco. Oskanian has told us that he had
already discussed the plan with American businessman Kirk
Kerkorian and had a commitment from Kerkorian to contribute a
substantial amount to the final budget.

-------------- --------------
"RURAL" IS DU JOUR: DIASPORA CONFERENCE, LINCY, MCA
-------------- --------------


4. (C) The timing of Oskanian's new plan is linked to the
theme of the GOAM's next International Diaspora Conference
(tentatively planned for Fall 2006 in Yerevan). The Ministry
of Foreign Affairs has hosted the previous two conferences
which have attracted more than 500 diasporans to Yerevan for
a series of meetings and seminars on issues ranging from
Armenian foreign policy to culture. For the 2006 conference
the MFA has chosen a central theme of "The Diaspora's Role in
Rural Development and Poverty Alleviation." According to
Oskanian's advisor Vahe Aghabekiants, the MFA perceives that
the international community -- including the USG through the
Millennium Challenge Account -- is devoting increased
attention and resources to rural development, especially in
light of the widening disparity between rural and urban
poverty rates. Aghabekiants cited the recent Lincy
Foundation decision to devote its next tranche of USD 60
million to projects principally outside of Yerevan (ref) as
the most notable example of this increased focus on rural
Armenia.

--------------
LOOKING FOR USG LEADERSHIP
--------------


5. (C) Oskanian discussed his plan with the Ambassador and
USAID-Armenia Director Robin Phillips on November 7. During
the meeting, Oskanian requested the USG's leadership and
technical expertise when the MFA convokes donors to discuss
the project once it begins to take shape. The Ambassador
encouraged Oskanian to take advantage of the expertise of
Yerevan's Donor Coordination Group (of which the USG is a
co-chair) to ensure that the project avoids duplicating
ongoing programs, has mechanisms in place to fight against
corruption and utilizes the valuable research of the GOAM's
Poverty Reduction Strategy Paper and Millennium Challenge
Account compact proposal process.

--------------
COMMENT: WHAT'S DRIVING OSKANIAN'S NEW PUSH?
--------------


6. (C) Oskanian's plan is defintely not the first
adopt-a-village concept in Armenia. The US-based Children of
Armenia Fund (funded in part by USAID) recently completed its
widely-publicized first tranche of an integrated rural
development project in the Armenian village of Karakert.
While there are certain sustainability concerns about this
model, it has attracted a great deal of attention from local
and disporan Armenians who have shared their enthusiasm with
the MFA. Oskanian no doubt wants to capitalize on diasporan
support for such approaches to help Armenia's poor, but there
are equally important political gains for him if his
nationwide project is successful. Keeping the diaspora
engaged in Armenian issues falls squarely within Oskanian's
mandate. This project would help focus the MFA's efforts
with the diaspora, would combat donor fatigue, and would
deepen the MFA's formal links with the wealthiest and most
influential Armenian interests abroad. With the 2007 and
2008 elections looming, and early political alliances
beginning to form, the program is also a chance for Oskanian
to operate in domestic politics more broadly than his Foreign
Minister portfolio normally permits. At a minimum,
Oskanian's campaign will keep MFA involved with large-scale
development projects since the two biggest international
projects (the latest Lincy Foundation donation and possible
MCA funding) are being handled by other GOAM ministries.
GODFREY