UNGA/C-5: DEVELOPMENT ACCOUNT A LIGHTENING ROD FOR

UNCLAS USUN NEW YORK 001101

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: AORC PREL UNGA
SUBJECT: UNGA/C-5: DEVELOPMENT ACCOUNT A LIGHTENING ROD FOR
BUDGET NEGOTIATIONS


1. (SBU) Summary. The Administrative and Budgetary Committee
met in formal session on October 30 for introduction of
several reports on the Development Account. The Secretariat
presented three proposals for identifying additional
resources for the Development Account. The ACABQ evaluated
the Secretariat's proposals as being unrealistic and
recommended review of the Development Account in all aspects.
Member States were in agreement with the ACABQ on the former
assessment, but the G-77 and Rio Group are adamantly in favor
of increasing funding to the Development Account. End Summary.


2. (U) The Administrative and Budgetary Committee met in
formal session on October 30 for the introduction of several
reports from the Secretariat and the Advisory Committee on
Administrative and Budgetary Questions (ACABQ) pertaining to
the Development Account. The Secretariat had been tasked with
finding ways in which $2.5 million in additional resources
could be identified for transfer to the Development Account
without using surpluses. Sharon Van Buerle, Director of
Program Planning and Budget Division, reported to the
Committee that the Development Account is largely achieving
its aims and purposes, producing demonstrable and beneficial
results, but that expectations for the long-term
developmental impact of the Account should be put into
perspective. The Secretariat proposed adopting efficiency
gains identified by the Office of Internal Oversight Services
(OIOS),implementing results-based management, and realigning
priorities in the context of competing demands for the use of
the overall UN program budget.


3. (U) ACABQ Chairman Rajat Saha, in introducing his
committee's report on the topic, noted that the solutions
suggested by the Secretariat for acquiring resources for the
Development Account are not realistic. The ACABQ also
recommended that the 5th Committee review the Development
Account in all aspects.


4. (U) During the formal committee meeting, only developing
states intervened: Pakistan (on behalf of the Group of 77 and
China),the Dominican Republic (on behalf of the Rio Group),
Venezuela, India, and Nicaragua. Developing states expressed
disappointment that funding for the Development Account has
fallen well short of the original $200 million funding goal,
with actual provision of only $65 million in the past 10
years. They also expressed incredulity that the Secretariat
failed to identify savings and efficiencies that could
provide the additional $2.5 million for the Development
Account. Developing states criticized the recommendations
provided in the Secretariat's report as being impractical for
identifying desired resources for the Account.


5. (U) Venezuela, in formal statement, suggested that all
funding options should be considered, to increase funding to
the Development Account through "effective mechanisms," i.e.
a per rata appropriation from the programme budget. Venezuela
also advocated for the use of $7 million in "unspent
surpluses" in the Secretary General's discretionary account
for "evolving needs," a proposal that was echoed by other
delegations during the informal consultations that followed.
Nicaragua stated in informals that finance through efficiency
gains had been "a total failure." Israel commented that a
fundamental change in the Secretariat's approach towards the
Development Account is needed, and that the General Assembly
should "guide the Secretariat in a different direction."
Developing states responded vehemently that development has
long been treated as a "stepchild" when it has been touted as
a centerpiece of the UN's priorities. Nicaragua asserted, in
reference to the Secretariat's recommendations, that
"realignment of
priorities is futile."


6. (U) The Secretariat responded that the Secretary General's
discretionary monies are gleaned from savings or
underutilization from posts that have not been filled and use
of the funds would be a "one off" in 2007 only, not to be
relied upon for base funding for the Development Account.
Informal consultations on this issue will continue at a later
date, and the chair called for Member States to submit draft
resolution language.


7. (SBU) Comment: As evidenced by the large turnout by
delegations during informal consultations on this agenda
item, the Development Account is a significant symbol for the
developing world, one the G-77/China and Rio Group are taking
very seriously. This issue may be a lightening rod for and
have significant impact on budget negotiations during the
regular session. End comment.

Khalilzad