VZCZCXYZ0005
RR RUEHWEB

DE RUCNDT #1101 3341939
ZNR UUUUU ZZH
R 301939Z NOV 07
FM USMISSION USUN NEW YORK
TO SECSTATE WASHDC 3234

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