Identifier
Created
Classification
Origin
06DAKAR2367
2006-10-02 07:50:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Dakar
Cable title:
"THE WADE FORMULA" - PRESIDENT WADE'S PROPOSES GLOBAL OIL
how-toVZCZCXRO6224 PP RUEHMA RUEHPA DE RUEHDK #2367/01 2750750 ZNR UUUUU ZZH P 020750Z OCT 06 FM AMEMBASSY DAKAR TO RUEHC/SECSTATE WASHDC PRIORITY 6448 INFO RUEHZK/ECOWAS COLLECTIVE PRIORITY RHEBAAA/DEPT OF ENERGY WASHDC RUCPDOC/USDOC WASHDC RUEHLMC/MCC WASHDC
UNCLAS SECTION 01 OF 02 DAKAR 002367
SIPDIS
SIPDIS
SENSITIVE
STATE FOR EB/ESC/IEC, EB/TPP, AF/EPS AND AF/W
DOE FOR OFFICE OF POLICY AND INTERNATIONAL AFFAIRS
USDOC FOR 4510/OA/PMICHELINI, AROBINSON-MORGAN/KBOYD
USDOC FOR 3131/CS/ANESA/OIO/GLOOSE/GLITMAN/MSTAUNTON
E.O. 12958: N/A
TAGS: EPET EAID ECON ETRD EINV SG
SUBJECT: "THE WADE FORMULA" - PRESIDENT WADE'S PROPOSES GLOBAL OIL
SURCHARGE TO FIGHT AFRICAN POVERTY
DAKAR 00002367 001.2 OF 002
UNCLAS SECTION 01 OF 02 DAKAR 002367
SIPDIS
SIPDIS
SENSITIVE
STATE FOR EB/ESC/IEC, EB/TPP, AF/EPS AND AF/W
DOE FOR OFFICE OF POLICY AND INTERNATIONAL AFFAIRS
USDOC FOR 4510/OA/PMICHELINI, AROBINSON-MORGAN/KBOYD
USDOC FOR 3131/CS/ANESA/OIO/GLOOSE/GLITMAN/MSTAUNTON
E.O. 12958: N/A
TAGS: EPET EAID ECON ETRD EINV SG
SUBJECT: "THE WADE FORMULA" - PRESIDENT WADE'S PROPOSES GLOBAL OIL
SURCHARGE TO FIGHT AFRICAN POVERTY
DAKAR 00002367 001.2 OF 002
1. (SBU) SUMMARY: On September 26, President Abdoulaye Wade
convoked the Ambassador to discuss Senegal's MCC program and other
large development plans and to present "The Wade Formula," the
President's own vision of a new mechanism for fighting poverty in
Africa by sharing a new global surcharge on petroleum with
non-petroleum producing countries. Wade's public outreach on this
subject highlights oil company profits. In the coming weeks, as
part of an on-going dialogue on the impact of record global oil
prices on poor African countries, Wade plans to present his idea to
the Center for Strategic and International Studies (CSIS) and to the
Editors of Foreign Affairs magazine. Though the Wade Formula
appears to be unworkable for any number of reasons, President Wade's
charisma and tenacity in pushing his ideas should not be
underestimated. END SUMMARY.
THE WADE FORMULA
--------------
2. (U) "The Wade Formula" apparently made its public appearance as
a GOS-paid advertisement in the September 22, 2006 Financial Times.
The advertisement includes:
Begin text:
The Wade Formula:
The soaring price of oil in West Africa has made it all but
impossible for governments to proceed with anti-poverty efforts.
What can be done to prevent a pan-African catastrophe?
President Abdoulaye Wade of Senegal has a formula for African
oil-producing nations, the international community, and major oil
companies to contribute to the solution. In simple terms:
(Pt - 29)Qt = St
where:
Pt = current price of crude oil
29 = dollar benchmark of crude oil in 2003
Qt = quantity of oil imported by the PANPP (Non-Petroleum Producing
African Country)
St = oil Surcharge
To participate in an open dialogue on The Wade Formula, contact Mr.
Hassan BA, Special Advisor to the President, at
hassanba_2000@yahoo.fr.
End text.
3. (U) The other volley of the advertisement touches on the global
oil prices and oil company profits:
Begin text:
The Wade Formula
An Invitation to the Major Oil Companies and Oil Producing Countries
in Africa to Save the African Continent and Combat Poverty.
ExxonMobil alone just announced 10 billion dollar profits for the
2nd quarter of 2006. And, its production of 1 million barrels of
African oil per day. Senegal and other non-producing oil African
nations are falling into greater poverty everyday as oil prices
climb rampantly. (Expected to reach $100/barrel by the end of
2006). The Wade Formula saves entire countries and assists major
oil companies in proving their commitment to true "Corporate Social
Responsibility."
Support the Wade Formula.
End text.
HOW WOULD THIS WORK? IT'S NOT CLEAR
--------------
4. (SBU) Presidential Special Advisor Ba has not been available to
further explain "the Wade Formula." In presenting his plan to the
Ambassador, President Wade did not provide details on who was to pay
the "surcharge" or how the money was to be collected, accounted for,
or programmed. Wade appeared genuinely convinced that this is an
idea whose time has come, and he explained that he will be
presenting the Wade Formula in a number of high-level engagements in
the coming week. Wade mentioned that his thoughts on the impact of
high oil prices on poor countries would be par of an article in the
next issue of Foreign Affairs magazine. He is also scheduled to
discuss his ideas at a small roundtable hosted by the Center for
Strategic and International Studies (CSIS) on or about October 31.
DAKAR 00002367 002.2 OF 002
COMMENT - NOT TO BE TAKEN LIGHTLY
--------------
5. (SBU) "The Wade Formula" is not likely to place the Senegalese
President on the short list for the next Fields Medal, but Wade is a
keen intellect who has written a number of books on economics and
international development. Even though the proposal raises a vast
range of political, economic, and legal issues, Wade has proven
himself to be a tenacious advocate and effective public campaigner
for his public ideas, as witnessed by his successful efforts to gain
international approval of the Digital Solidarity Fund. END
COMMENT.
Jacobs
SIPDIS
SIPDIS
SENSITIVE
STATE FOR EB/ESC/IEC, EB/TPP, AF/EPS AND AF/W
DOE FOR OFFICE OF POLICY AND INTERNATIONAL AFFAIRS
USDOC FOR 4510/OA/PMICHELINI, AROBINSON-MORGAN/KBOYD
USDOC FOR 3131/CS/ANESA/OIO/GLOOSE/GLITMAN/MSTAUNTON
E.O. 12958: N/A
TAGS: EPET EAID ECON ETRD EINV SG
SUBJECT: "THE WADE FORMULA" - PRESIDENT WADE'S PROPOSES GLOBAL OIL
SURCHARGE TO FIGHT AFRICAN POVERTY
DAKAR 00002367 001.2 OF 002
1. (SBU) SUMMARY: On September 26, President Abdoulaye Wade
convoked the Ambassador to discuss Senegal's MCC program and other
large development plans and to present "The Wade Formula," the
President's own vision of a new mechanism for fighting poverty in
Africa by sharing a new global surcharge on petroleum with
non-petroleum producing countries. Wade's public outreach on this
subject highlights oil company profits. In the coming weeks, as
part of an on-going dialogue on the impact of record global oil
prices on poor African countries, Wade plans to present his idea to
the Center for Strategic and International Studies (CSIS) and to the
Editors of Foreign Affairs magazine. Though the Wade Formula
appears to be unworkable for any number of reasons, President Wade's
charisma and tenacity in pushing his ideas should not be
underestimated. END SUMMARY.
THE WADE FORMULA
--------------
2. (U) "The Wade Formula" apparently made its public appearance as
a GOS-paid advertisement in the September 22, 2006 Financial Times.
The advertisement includes:
Begin text:
The Wade Formula:
The soaring price of oil in West Africa has made it all but
impossible for governments to proceed with anti-poverty efforts.
What can be done to prevent a pan-African catastrophe?
President Abdoulaye Wade of Senegal has a formula for African
oil-producing nations, the international community, and major oil
companies to contribute to the solution. In simple terms:
(Pt - 29)Qt = St
where:
Pt = current price of crude oil
29 = dollar benchmark of crude oil in 2003
Qt = quantity of oil imported by the PANPP (Non-Petroleum Producing
African Country)
St = oil Surcharge
To participate in an open dialogue on The Wade Formula, contact Mr.
Hassan BA, Special Advisor to the President, at
hassanba_2000@yahoo.fr.
End text.
3. (U) The other volley of the advertisement touches on the global
oil prices and oil company profits:
Begin text:
The Wade Formula
An Invitation to the Major Oil Companies and Oil Producing Countries
in Africa to Save the African Continent and Combat Poverty.
ExxonMobil alone just announced 10 billion dollar profits for the
2nd quarter of 2006. And, its production of 1 million barrels of
African oil per day. Senegal and other non-producing oil African
nations are falling into greater poverty everyday as oil prices
climb rampantly. (Expected to reach $100/barrel by the end of
2006). The Wade Formula saves entire countries and assists major
oil companies in proving their commitment to true "Corporate Social
Responsibility."
Support the Wade Formula.
End text.
HOW WOULD THIS WORK? IT'S NOT CLEAR
--------------
4. (SBU) Presidential Special Advisor Ba has not been available to
further explain "the Wade Formula." In presenting his plan to the
Ambassador, President Wade did not provide details on who was to pay
the "surcharge" or how the money was to be collected, accounted for,
or programmed. Wade appeared genuinely convinced that this is an
idea whose time has come, and he explained that he will be
presenting the Wade Formula in a number of high-level engagements in
the coming week. Wade mentioned that his thoughts on the impact of
high oil prices on poor countries would be par of an article in the
next issue of Foreign Affairs magazine. He is also scheduled to
discuss his ideas at a small roundtable hosted by the Center for
Strategic and International Studies (CSIS) on or about October 31.
DAKAR 00002367 002.2 OF 002
COMMENT - NOT TO BE TAKEN LIGHTLY
--------------
5. (SBU) "The Wade Formula" is not likely to place the Senegalese
President on the short list for the next Fields Medal, but Wade is a
keen intellect who has written a number of books on economics and
international development. Even though the proposal raises a vast
range of political, economic, and legal issues, Wade has proven
himself to be a tenacious advocate and effective public campaigner
for his public ideas, as witnessed by his successful efforts to gain
international approval of the Digital Solidarity Fund. END
COMMENT.
Jacobs