Identifier
Created
Classification
Origin
07WELLINGTON350
2007-05-04 06:14:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Wellington
Cable title:  

NZAID: CONTINUING TO EXPAND AID TO THE PACIFIC

Tags:  PREL NV XV 
pdf how-to read a cable
VZCZCXRO5207
OO RUEHPB
DE RUEHWL #0350 1240614
ZNR UUUUU ZZH
O 040614Z MAY 07
FM AMEMBASSY WELLINGTON
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4221
INFO RUEHBY/AMEMBASSY CANBERRA 4826
RUEHPB/AMEMBASSY PORT MORESBY 0653
RUEHSV/AMEMBASSY SUVA 0591
UNCLAS WELLINGTON 000350 

SIPDIS

SENSITIVE
SIPDIS

DEPARTMENT FOR EAP/ANP TVAJDA AND KMCKELLOG

E.O. 12958: N/A
TAGS: PREL NV XV
SUBJECT: NZAID: CONTINUING TO EXPAND AID TO THE PACIFIC

REF: 06 WELLINGTON 462

UNCLAS WELLINGTON 000350

SIPDIS

SENSITIVE
SIPDIS

DEPARTMENT FOR EAP/ANP TVAJDA AND KMCKELLOG

E.O. 12958: N/A
TAGS: PREL NV XV
SUBJECT: NZAID: CONTINUING TO EXPAND AID TO THE PACIFIC

REF: 06 WELLINGTON 462


1. (SBU) Summary: Since the establishment in 2002 of New
Zealand's International Aid & Development Agency (NZAID) as a
semi-autonomous agency of the Ministry of Foreign Affairs and
Trade (MFAT),the GNZ has steadily increased its nominal
overseas development assistance (ODA) to the Pacific region
as well as the share of Pacific aid in NZ's overall aid
program. While New Zealand's total aid will remain a low
0.27 percent of gross national income (GNI),contacts at
NZAID tell us that the 2007/2008 budget, to be announced
later this month, will include increased ODA to the Pacific
with a greater focus on Melanesia. The anticipated step-up
will build on increases over the last five years, as GNZ
seeks to raise direct ODA to the Pacific to 50-percent of New
Zealand's overall aid program. Foreign Minister Winston
Peters, who also holds portfolio responsibility for NZAID,
has cited NZ's "development cooperation with the Pacific
Islands region as the centerpiece of New Zealand's fight
against poverty and hardship." End summary.

Background
--------------

2. (U) Later this May, GNZ will announce its 2007/2008
budget, which will include an overall increase in ODA and
continue a gradual shift in allocation that will target 50
percent of ODA directly to the Pacific region. New Zealand
currently directs 45 percent of its ODA to the Pacific with
additional allocations through multilateral organizations
bringing the amount to 55 percent (reftel). New Zealand's
ODA is centered on 18 countries, with 11 of those in
Melanesia and Polynesia. Funding growth will be principally
focused on Melanesia. Also in May, New Zealand's
International Aid & Development Agency (NZAID) will submit to
Cabinet its proposal to guide New Zealand's development
program in the Pacific Islands region: "Pacific Strategy
2007-2015: Tackling Poverty in Our Region." The strategy
will emphasize sector-focused aid on poverty reduction, as
opposed to funding specific projects. It will focus on four
areas: strengthening governance, broader-based growth and
livelihoods, improving education & health, and reducing
vulnerability. The new strategy is designed to address the
Pacific's failure to meet the poverty reduction and
development targets agreed to under the UN's Millennium
Development Goals (MDGs).

Pacific-focused assistance program
--------------

3. (SBU) On April 3, the OECD Development Assistance
Committee (DAC) reported that its 22 members provided 5.1
percent less aid in 2006 than in 2005. At 0.27 percent of
gross national income (GNI),NZ's 2006 aid fell well short of
the United Nations target of 0.7 percent, prompting NZ media
to criticize NZ's low funding levels. However, Craig Hawke,
Director of NZAID's Pacific Group, told Poloff that while
NZ's overall ODA remains low compared to the United Nations
target, New Zealand has exceeded the target of 0.25 percent
to which it agreed during the Monterey International
Conference on Financing for Development in 2002. Hawke could
not disclose how much ODA to the Pacific will be increased in
this year's budget, but noted that since 2002, New Zealand
has nearly doubled its Pacific aid program, from NZD 90
million (USD 67.5 million) in fiscal year 2001/2002 to NZD
173 million (USD 130 million) for 2005/2006 (reftel). This
contribution makes New Zealand the fourth largest DAC donor
to the region, behind Australia, the United States and France.

Donor coordination
--------------

4. (SBU) Hawke will represent New Zealand at the Pacific
Islands Conference of Leaders (PICL) meetings in Washington
from May 7 to 9, and says the GNZ's general objective is to
improve donors' strategic coordination in the Pacific.
Previously, Hawke told Poloff that he would like to explore
opportunities for U.S.-New Zealand cooperation in the region
(reftel). Hawke is also interested in meeting in Millennium
Challenge Corporation (MCC) officials, having remarked to
Poloff that New Zealand was a "bit surprised" when MCC
announced its USD 65 million award to Vanuatu in January

2005. Hawke has said the Pacific is an over-aided region,
suggesting that it would be more useful for the U.S. to use
its weight and influence to promote policy dialogues
(reftel). In this regard, the PICL fits the bill.
McCormick