Identifier
Created
Classification
Origin
09UNVIEVIENNA423
2009-09-11 12:31:00
UNCLASSIFIED
UNVIE
Cable title:  

UNIDO Formally Invites U.S. to December General Conference

Tags:  ETRD EIND EAID UNIDO UNDP UNEP AORC KUNR KGHG 
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UNCLAS SECTION 01 OF 02 UNVIE VIENNA 000423 

DEPT FOR IO/T, EB/IFT/ODF AND L/PIL
EMBASSIES FOR ECON/POL

SIPDIS

E.O. 12958: N/A
TAGS: ETRD EIND EAID UNIDO UNDP UNEP AORC KUNR KGHG
SUBJECT: UNIDO Formally Invites U.S. to December General Conference

REF: A) SECSTATE 84998 B) UNVIE VIENNA 0622
C) UNVIE VIENNA 0199 D) Amadeo-Huskey Email 8/26

UNCLAS SECTION 01 OF 02 UNVIE VIENNA 000423

DEPT FOR IO/T, EB/IFT/ODF AND L/PIL
EMBASSIES FOR ECON/POL

SIPDIS

E.O. 12958: N/A
TAGS: ETRD EIND EAID UNIDO UNDP UNEP AORC KUNR KGHG
SUBJECT: UNIDO Formally Invites U.S. to December General Conference

REF: A) SECSTATE 84998 B) UNVIE VIENNA 0622
C) UNVIE VIENNA 0199 D) Amadeo-Huskey Email 8/26


1. Summary. Attending the UN Industrial Development Organization
(UNIDO) 2009 bi-annual General Conference as an official observer,
while demonstrating U.S. interest in learning more about the
organization's work, is procedurally straightforward, involving a
simple registration form and a nameplate in the observer section of
the hall. UNIDO officials we spoke to were pleased to convey the
requested administrative information but were also eager to provide
background information on the organization's governance improvement
and substantive objectives. In light of our renewed dedication to
multilateral diplomacy and seeking to engage with member states in a
variety of venues, UNVIE recommends we consider sending
working-level observers (UNVIE action officers) to the 2009 General
Conference to observe and report, but we should also seek continued
opportunities for more senior level engagement with UNIDO
leadership, even as we reiterate that the U.S. is unlikely to rejoin
any time soon. Ambassador Davies will do so in an introductory call
with DG Yumkella later this fall. End summary.

--------------
General Conference Dynamics
--------------


2. Per Ref a action request, UNVIE officers met with UNIDO officials
to better understand the process related to UNIDO's general
conferences. According to Barbara Singer, External Relations
Officer with the Policymaking Organs Secretariat, UNIDO convenes its
general conferences every two years. Its 13th General Conference is
scheduled to run from December 7-11, 2009. Singer reported that the
theme of this year's conference is "Greening Industry for Global
Recovery and Growth," and that the conference would consist of three
simultaneous events: a Plenary, a Main Committee, and Roundtables.



3. The Plenary officially opens the conference, explained Singer,

and is devoted to traditional "general debate" (i.e., delegations
need not only speak on the official theme). Singer reported that
some heads of state, predominately from developing countries, attend
the Plenary and many countries send ministerial-level
representation. Singer noted that in order to better focus this
year's conference, UNIDO has introduced two forums to the
proceedings, one on "Global Economic Slowdown: the Impact on
Manufacturing," and the other on "Global Economic Recovery: Seizing
Opportunities for Greening Industries." Singer confirmed that CNN's
Todd Benjamin will host the event and many experts have been invited
to attend, including Jeffrey Sachs.


4. Running simultaneously to the Plenary is the Main Committee,
where delegations raise and negotiate draft resolutions. Lastly,
added Singer, throughout the week roundtables are held, the topics
of which are regionally focused; for example, bio-fuels in Africa,
and investment in "green" business in the Middle East.


5. Singer provided UNVIE with a formal letter from UNIDO Director
General Yumkella, inviting A/S Brimmer to attend the event (Ref d).
According to Singer, U.S. "registration" as an observer is
straightforward; the U.S. will receive a note verbale which will
explain the registration process and request the names of U.S.
participants, in writing, by October 30. The U.S. would be seated
with other observers to UNIDO, including the Holy See, Palestine,
and Malta. The U.S., as an observer, could speak on any issue "of
direct concern." Such requests to speak are brought to the Chairman
of the Plenary or President of the Main Committee.

--------------
Officials Enthusiastically
Sell UNIDO
--------------

On Substance...
--------------

6. UNVIE clearly conveyed to UNIDO officials that our General
Conference inquiries were simply informational in nature.
Nevertheless, they enthusiastically provided further background
information on the organization's situation. For example,
emphasizing UNIDO's strategic re-prioritization of goals into three
main areas, poverty reduction, trade capacity building, and energy
and the environment, Agerico Lacanlale, Director of Strategic

UNVIE VIEN 00000423 002 OF 002


Planning and Coordination, stressed that the organization was
focused on development in the global economy and was targeting the
growth of infrastructure and industry standards in post-conflict
countries (Refs b and c). Lacanlale stressed that UNIDO programs
were aimed at promoting small- and medium-sized enterprises. UNIDO
officials sought to portray the organization as a streamlined
economic development assistance agency, focused on achieving real
results on the ground. For example, noted Lacanlale, a UNIDO
program (with USAID assistance) in Ethiopia assisted female
entrepreneurs in building a leather handbag industry, from design,
to production, to marketing. According to Lacanlale, some of these
handbags are now sold in designer shops in the U.S. Another UNIDO
program Lacanlale described involved the refurbishment of used
computers in Uganda and working with Microsoft to establish business
information centers in the African countryside. Lacanlale added
that UNIDO also provided assistance at the national level; for
example, UNIDO assists countries in complying with WTO requirements
to meet international food quality standards in order to export food
products.


7. Morgan Bazilian, the DG's Special Advisor on Climate Change,
promoted UNIDO's increasing role in the area of energy development
and climate change. DG Yumkella, as chair of the UN Energy and the
UN Secretary General's (SYG) Task Force on Climate Change, is
playing an ever-increasing role in the UN's response to these
related issues, noted Bazilian. Bazilian added that UNIDO was
focused on deepening the relationship between industrial development
and sustainable energy development.

And Governance
--------------


8. Yoshi Uramoto, Director of Program Coordination, provided an
update on the finance and governance issues which had been one of
the catalysts for U.S. withdrawal from the organization in 1996. In
the intervening 13 years, Uramoto reported, UNIDO staff had been
more than halved, from 1400 to 600 persons. He pointed to a recent
United Kingdom (UK) assistance agency DFID report on UN management
practices which identified UNIDO as one of the best-managed UN
agencies, ranking it number 6 out of 28. Further, related Uramoto,
the organization has clearly moved away from "old think" state
economic philosophy to promotion of a market economy orientation.
In fact, Uramoto added, DFID also ranked UNIDO as the second-best UN
agency in working with the private sector. Lacanlale noted that
UNIDO was selected to host a UN-wide meeting in April 2010 focused
on management and inter-agency coherence, evidence that UNIDO was
actually becoming a model of management for other UN agencies.

--------------
Comment
--------------


9. UNVIE attended the 12th General Conference in 2007, but
unofficially, and was not listed as an attendee and was not
recognized as an observer. In light of reports of UNIDO's greatly
improved management situation, as well as its updated promotion of
competitive and sustainable industry, UNVIE recommends we consider
officially attending the December 2009 General Conference. UNVIE
believes UNVIE working-level participation at the conference would
be an appropriate first step but would also ensure that we are
keeping our options open with regard to any future UNIDO-specific
engagement. An added bonus is that UNVIE participation as an
observer would demonstrate the overall priority the U.S. places on
multilateral institutions and our interest in engaging with and
learning more from these organizations. At the same we should also
seek continued opportunities for more senior level engagement with
UNIDO leadership, even as we reiterate that the U.S. is unlikely to
rejoin anytime soon. Ambassador Davies will do so in an
introductory call with DG Yumkella later this fall.

DAVIES