CUTTING NON-HUMANITARIAN AID TO MADAGASCAR

UNCLAS SECTION 01 OF 02 ANTANANARIVO 000193 SENSITIVE SIPDIS STATE FOR AF/E-MBEYZEROV E.O. 12958: N/A TAGS: PGOV MA SUBJECT: CUTTING NON-HUMANITARIAN AID TO MADAGASCAR ¶1. (SBU) SUMMARY: Post strongly supports suspending all non-humanitarian aid to Madagascar in the wake the recent unconstitutional transfer of power. In doing so, in order to continue to support the impoverished Malagasy people to the largest extent possible while still sending an unmistakable signal to new leadership about what they need to do to re-establish constitutional rule, we suggest distinguishing between direct government-to-government programs, which should be terminated or suspended immediately (e.g. MCC, DOD, law enforcement training),and the far larger humanitarian portion represented by USAID and other agencies at post. Maintaining the assistance that directly benefits the impoverished people of Madagascar, while cutting aid to an undemocratic government, would be consistent with U.S. values and maintain our warm and enduring relations with the people of Madagascar, while delivering on our promise that there would be consequences for pursuing an extra-constitutional path. Post believes that the USG can continue to positively impact the lives of millions in one of the world's poorest countries, without compromising on important principles in the process. END SUMMARY. CUTTING DIRECT ASSISTANCE TO THE GOM -------------- ¶2. (SBU) We propose terminating or suspending programs in which the USG directly finances GOM programs, or provides training or resources to government entities or personnel. We have identified the following three programs as falling into this category: ¶3. (SBU) THE MILLENNIUM CHALLENGE ACCOUNT: Madagascar is patently no longer an "MCA country" and this program should be terminated immediately. The MCC compact in Madagascar works directly with the ministries of Land Tenure Reform, Finance, and Agriculture in the implementation of the program. In addition, the Compact's Steering Committee, which is responsible for overall program oversight, consists of the Ministers from these three ministries. The $110 million program is in the fourth year of implementation, has disbursed roughly $65 million, and has committed over $80 million. ¶4. (SBU) Immediate termination of the Compact will have a sharply negative impact. Over 230 land offices that have secured land rights for roughly 20,000 families will be shut down. The program's 6 Agricultural Business Centers, currently providing technical assistance to over 14,000 farmers, will need to be closed. The installation of the national inter-bank payment system, which was worth $12 million and planned to be completed in mid-2009, will need to be discontinued. In addition, the possibility of securing or transferring program assets in a manner that would allow for future use and benefit by the country's citizens is problematic, as these assets would normally go to the government entity responsible for the sustaining the program's activities. ¶5. (SBU) Although it would be possible to suspend the Compact for a period of up to 3 months, anything past this period would result in termination of contracts by contractors and insufficient time to finish the program activities. If the decision is made to terminate the Compact, contractors will be notified of termination and all program activities will be immediately ceased. Complete administrative and financial close-out of the program will take an estimated 4 months. ¶6. (SBU) ALL DEFENSE PROGRAMS: All DOD assistance should be suspended. ¶7. (SBU) LAW ENFORCEMENT TRAINING: This program also should be suspended. Around 60 candidates have been identified for training on drug interdiction, false document recognition and controlled substance delivery methods through ICE with funding through AFRICOM. Ten candidates from the Police, Gendarme, and Customs were selected for a management skills training at ILEA Roswell, New Mexico, and the FBI Academy in Quantico approved long term training (of six months) to two police candidates. ¶8. (SBU) Peace Corps: Already suspended. KEEPING NON-GOVERNMENTAL ASSISTANCE TO THE PEOPLE OF MADAGASCAR -------------- -------------- ¶9. (SBU) Outside MCC, the bulk of USG assistance in Madagascar does not have a direct connection to the national government, and could and, in our view, should be maintained if possible. The mission's work in malaria prevention, food aid, disaster relief, health improvement, and rural development is the foundation of our relationship with the people of Madagascar, benefitting literally millions of people. ¶10. (SBU) US AGENCY FOR INTERNATIONAL DEVELOPMENT: Because of its ANTANANARI 00000193 002 OF 002 essentially humanitarian and people-to-people (rather than govt.-to-govt.) character, we propose maintaining as much as possible of the USAID program in Madagascar. This program critically assists the most vulnerable of Madagascar's 20 million people. FY 2009 foreign assistance is projected to be about $51 million. This includes $15 million in PL 480 Title II food aid, $29.4 million in Child Survival and Health, and $6.6 million in Development Assistance. USAID programs support alternative livelihoods for farmers to help reduce pressure on Madagascar's fragile ecosystems and improve food security, especially in areas affected by cyclones and drought. USAID's health assistance supports integrated program to save lives and improve health status by combating malaria and promoting health services in family planning, prevention of sexually transmitted infections, and improving maternal and child health. Madagascar is a President's Malaria Initiative (PMI) country with an estimated FY 2009 PMI budget of $17. The PMI program has a target population of 12 million people, including pregnant women and children under five, and is designed to reduce malaria mortality by 50 percent. If a policy decision is taken to maintain all humanitarian aid to Madagascar without working with or through the national government (working instead with NGOs, implementing partners, local entities, etc.),USAID would have to ensure, through restructuring as necessary, that all its activities maintain that separation from the government. ¶11. (SBU) PUBLIC AFFAIRS: Cultural and Exchange programs will not be directly affected, but Post will carefully screen exchange grantees, particularly International Visitor's Leadership Program (IVLP) participants, to ensure that GOM officials do not participate. ¶12. (SBU) US DEPARTMENT OF AGRICULTURE: USDA provides financial support to various NGOs in Madagascar. One of these, Land O'Lakes, receives funding through USDA's Food for Progress Program. This funding is used to provide educational workshops for community leaders to increase knowledge about agricultural practices. Land O'Lakes also uses the funding to purchase agricultural equipment for farming communities. ¶13. (SBU) THE SPECIAL SELF-HELP PROGRAM: The Self-Help program funds small development projects around Madagascar. These projects are community-based, locally initiated, and must include contributions from the communities. All funding from the Special Self-Help program goes towards the purchase of materials for developmental work and towards workshops that teach life skills. MARQUARDT