Identifier
Created
Classification
Origin
10KATHMANDU145
2010-02-18 12:58:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Kathmandu
Cable title:  

NEPAL POISED FOR MAJOR FOOD SECURITY

Tags:  AID EAID EAGR ECON NP 
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VZCZCXRO6689
PP RUEHCI
DE RUEHKT #0145/01 0491258
ZNR UUUUU ZZH
P 181258Z FEB 10
FM AMEMBASSY KATHMANDU
TO RUEHC/SECSTATE WASHDC 1461
RHEHAAA/WHITE HOUSE WASHDC
RHEHNSC/NSC WASHDC
INFO RUEHNE/AMEMBASSY NEW DELHI PRIORITY 3531
RUEHKA/AMEMBASSY DHAKA PRIORITY 3057
RUEHLM/AMEMBASSY COLOMBO PRIORITY 7706
RUEHBK/AMEMBASSY BANGKOK PRIORITY 6844
RUEHPF/AMEMBASSY PHNOM PENH PRIORITY 0148
RUEHIL/AMEMBASSY ISLAMABAD PRIORITY 5745
RUEHCI/AMCONSUL KOLKATA PRIORITY 4991
UNCLAS SECTION 01 OF 02 KATHMANDU 000145 

AID FOR USAID, FRANK YOUNG, FRANKLIN MOORE, JOSETTE
LEWIS, THOMAS BRIGGS, AMY PARO, SCOTT CHRISTIANSEN,
MICHAEL YATES
AID FOR STATE/S, CHERYL MILLS
AID FOR STATE/SCA, AISHA SABAR, PATRICK MOON, SCOTT
DELISI, PATRICIA MAHONEY
AID FOR STATE/F, LESLIE ZIMAN
AID FOR NSC, ANISH GOEL, GAYLE SMITH

SENSITIVE
SIPDIS

E.O. 12958:N/A
TAGS: AID EAID EAGR ECON NP
SUBJECT: NEPAL POISED FOR MAJOR FOOD SECURITY
INVESTMENTS

Summary
-------
UNCLAS SECTION 01 OF 02 KATHMANDU 000145

AID FOR USAID, FRANK YOUNG, FRANKLIN MOORE, JOSETTE
LEWIS, THOMAS BRIGGS, AMY PARO, SCOTT CHRISTIANSEN,
MICHAEL YATES
AID FOR STATE/S, CHERYL MILLS
AID FOR STATE/SCA, AISHA SABAR, PATRICK MOON, SCOTT
DELISI, PATRICIA MAHONEY
AID FOR STATE/F, LESLIE ZIMAN
AID FOR NSC, ANISH GOEL, GAYLE SMITH

SENSITIVE
SIPDIS

E.O. 12958:N/A
TAGS: AID EAID EAGR ECON NP
SUBJECT: NEPAL POISED FOR MAJOR FOOD SECURITY
INVESTMENTS

Summary
--------------

1. (SBU) Nepal is poised for major investments that
could significantly reduce food insecurity and
poverty. As a small country which has successfully
piloted several global initiatives, Nepal is ready
for investments to reduce poverty on a national
scale. The Government of Nepal (GON) has begun to
undertake positive actions and has requested the USG
to assume a leadership role among donors in
assisting Nepal to address long-term food security
needs. With a population of 27 million, Nepal is a
severely food-deficit country struggling to recover
from a 10-year conflict. More than 55% of Nepalese
live on less than $1.25/day, and malnutrition levels
are on par with some of the worst countries in
Africa. The USG should not forego this opportunity
to advance U.S. interests through timely and
appropriate funding for food security programming in
Nepal.




The GON: A Strong Development Partner
--------------

2. (SBU) The GON has made food security a priority
and is very enthusiastic about increased assistance.
Through proactive internal and external coordination
and revision of its previous three-year strategy on
food security, the GON has demonstrated a commitment
to significantly reduce food insecurity and poverty
in Nepal.


3. (SBU) As a nascent democracy, the GON needs to
demonstrate that it can deliver peace dividends in
the form of basic services to its citizens. USG
assistance is critical to support GON-led efforts
that foster a path to sustainable development and
prevent a return to instability and conflict.


4. (SBU) Throughout the conflict and the recent
political instability, USAID has implemented highly
successful programming with measurable impacts. The
current political transition has not impeded USAID's
recent development efforts and would likely not
affect future programming.


5. (SBU) Nepal has an excellent track record in

piloting ground breaking development programs, even
during periods of instability. Large-scale and
innovative food security programming in Nepal has
the potential to be highly successful and a possible
model for global scale-up.

A Severely Food-Deficit Country
--------------

6. (SBU) Each year, 66% of Nepalese suffer from food
insecurity. Nepal remains the poorest country in
South Asia and the 13th poorest country in the world
(based on gross national income per capita). The
rate of stunting among under-five children is 49%
(surpassing Sudan) and the rate of underweight is
39% (exceeding Ethiopia).


7. (SBU) As a result of recent climatic events and
conflict, agricultural productivity has
significantly declined. Furthermore, Nepal's
landlocked location between India and China and
reliance on the import of almost all agricultural
inputs, makes it vulnerable to international
commerce variability, export bans and limited market
access.

KATHMANDU 00000145 002 OF 002





Poised for Immediate Action
--------------

7. (SBU) The USG has a long and successful history
in Nepal with over sixty years of development
experience. Numerous interventions to improve
agricultural productivity and household nutrition
levels have been effectively implemented by USAID
and other donors in recent years.


8. (SBU) Nepal is in a unique position to adopt and
disseminate a series of community-based food
security and nutrition initiatives through the
mobilization of key community-level entities which
operate on a national scale. There are more than
50,000 female community health volunteers and a
strong national network of community forest user
groups which are poised to undertake additional
activities with USAID support.


9. (SBU) Should additional funding resources be
made available, three USAID activities are
currently ready to be taken to a national scale to
address food insecurity. USAID is also in the
process of signing an agreement with the Ministry
of Agriculture to directly fund select GON food
security activities.


10. (SBU) Moreover, bilateral and multilateral
donors are looking to the USG for strong leadership
in forging the way on sustainable solutions to food
insecurity.

Post Comment
--------------

11. (SBU) Given the progress with the GON and other
donors that has been made by Post, there is a
window of opportunity for the USG to take a
significant leadership role in this important area,
thereby helping to re-establish the positive image
of the USG overseas. Situated between India and
China, the image of the USG in this strategic
location is important to furthering U.S. foreign
policy goals.


12. (SBU) However, current investment levels
(reflected in the FY2010 & FY2011 budgets) are
insufficient to effectively address the food
security needs in Nepal on a major scale. A strong
partnership with the GON and a long and successful
development history have laid the foundation for
future food security programming success. Immediate
investments in food security in Nepal will have a
significant impact and positively advance U.S.
interests.

CAMP