UNDP PREPARES TO LAUNCH NEW TIBET PROGRAM

UNCLAS SECTION 01 OF 02 BEIJING 011074

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E.O. 12958: N/A
TAGS: EAID ECON PGOV PHUM SOCI CH
SUBJECT: UNDP PREPARES TO LAUNCH NEW TIBET PROGRAM



1. (SBU) Summary: The United Nations Development Program
(UNDP) hosted a Project Appraisal Committee (PAC) meeting
in Beijing on June 1 to seek input from bilateral donors on
its proposed USD 5 million Tibet Development and Poverty
Alleviation Program that the UNDP plans to launch later
this month. The UNDP is seeking bilateral donor support
for the program, which will focus on developing Tibet's
tourism and handicrafts sectors. It appeared from
questions asked by donor representatives, however, that the
program's deficiencies and vagueness will impede fund
raising efforts. Concerns were voiced about the program's
lack of coordination with existing efforts, lack of details
on funding levels for specific projects, how to ensure that
Tibetans are the primary beneficiaries, and the extent to
which NGOs will be involved in project implementation. End
Summary.

UNDP Prepares To Launch New Tibet Program
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2. (SBU) The UNDP introduced its Tibet Development and
Poverty Alleviation Program to bilateral donors and
government officials from Tibet Autonomous Region (TAR) at
a PAC meeting in Beijing on June 1. According to Wang Yue,
Director General, China International Center for Economic
and Technical Exchanges (CICETE),the program aims to
accelerate development in the tourism sector through
projects that are both environmentally-friendly and
culturally-sensitive.


3. (SBU) The UNDP and CICETE, in cooperation with the TAR
Government, plan to focus on five main objectives: 1)
strengthening tourism for sustainability and poverty
alleviation, 2) developing international trade and
investment, 3) modernizing traditional artisan industry, 4)
protecting and developing Old Lhasa City, and 5)
establishing the Tibet Forum.


4. (SBU) Peter Zetterstrom, UNDP Project Officer, stated
that the TAR's Department of Commerce (DOFCOM) would be the
coordinating agency for the overall program, with the Tibet
Tourism Board coordinating the tourism sector project, the
Enterprise Management Bureau (DOAAH) as the lead agency for
the handicrafts project, Lhasa Municipal Construction
Bureau as the lead for Old Lhasa City, and DOFCOM handling
both the trade and Tibet Forum projects.

Donors Voice Concerns
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5. (SBU) According to Khalid Malik, UNDP Resident
Representative, the UNDP has committed USD 2 million to the
Tibet Development and Poverty Alleviation Program, and the
Tibet Autonomous Region (TAR) has pledged an additional USD
1 million. Malik stated that the UNDP hopes to receive
funding from the donor community to make up the final USD 2
million, or else the program would have to curtail some of
its activities. He could not specify which activities
would be affected.


6. (SBU) Donors from five different European countries as
well as the EU Mission voiced a number of concerns about
UNDP's proposal. One European diplomat questioned how much
the UNDP's efforts would be combined with projects already
on the ground in Tibet and how those projects would be
coordinated. He also questioned how projects will benefit
poor Tibetans rather than other ethnic groups. Another
diplomat asked how the private sector would be leveraged to
maximize returns on UNDP's initiative. And all of the
donors present expressed concern about the capacity-
building piece of the program and how it would be
implemented effectively. Econoff and the EU rep both asked
about the role of NGOs in the program and cited concerns
that UNDP does not appear to have a plan of action for NGOs
in project implementation. Finally, one diplomat asked how
aid from bilateral donors would be used and if it could be
earmarked for certain projects. The UNDP had no ready
answers to any of these questions and plans for the project
in general seemed vague. Nevertheless, Malik indicated
that the project launch would go ahead as scheduled in
three weeks.

BEIJING 00011074 002 OF 002



Comment
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7. (SBU) UNDP's draft plan for the Tibet Development and
Poverty Alleviation Program is not well-developed
considering UNDP plans to launch the program in a few weeks.
Reactions from other bilateral donor representatives at the
meeting suggest that, in the program's current form, UNDP
will face difficulties attracting funding support from
other sources. End Comment.

RANDT