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Viewing cable 09UNVIEVIENNA440, UNIDO DG Yumkella: UNIDO and U.S. Share Common Vision

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Reference ID Created Released Classification Origin
09UNVIEVIENNA440 2009-09-23 15:12 2011-08-30 01:44 UNCLASSIFIED UNVIE
VZCZCXRO2566
PP RUEHRN
DE RUEHUNV #0440/01 2661512
ZNR UUUUU ZZH
P 231512Z SEP 09
FM USMISSION UNVIE VIENNA
TO RUEHC/SECSTATE WASHDC PRIORITY 0108
INFO RUEHVI/AMEMBASSY VIENNA 1474
RUCNDT/USMISSION USUN NEW YORK 1769
RUEHBS/AMEMBASSY BRUSSELS 0320
RUEHRN/USMISSION UN ROME 0066
RUEHXX/GENEVA IO MISSIONS COLLECTIVE
RUEHSW/AMEMBASSY BERN 0215
RUEHBY/AMEMBASSY CANBERRA 0758
RUEHLO/AMEMBASSY LONDON 1284
RUEHOT/AMEMBASSY OTTAWA 0765
RUEHFR/AMEMBASSY PARIS 1146
UNCLAS SECTION 01 OF 03 UNVIE VIENNA 000440 
 
DEPT FOR IO/T, EB/IFT/ODF AND L/PIL 
EMBASSIES FOR ECON/POL 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: KUNR ETRD EIND EAID UNIDO UNDP UNEP AORC KGHG
SUBJECT: UNIDO DG Yumkella: UNIDO and U.S. Share Common Vision 
 
1. SUMMARY.  The U.S. and UN Industrial Development Organization 
(UNIDO) share common philosophies and visions when it comes to 
"greening" industry, improving the developing world's trade capacity 
and access to markets, and environmental sustainability, according 
to Director General Yumkella.  In a September 17 introductory 
meeting with Ambassador Davies, Yumkella sought to link his own 
vision for UNIDO with the lessons he learned as a result of U.S. 
withdrawal in 1996, and to reassure the U.S. that UNIDO was a leaner 
and more effective organization.  In addition to underscoring 
UNIDO's complementarity with U.S. economic and energy priorities, 
Yumkella noted the dominant role European member states play with 
regard to the Organization's policy and program initiatives. 
Yumkella once again expressed his desire to see the U.S. at the 
December General Conference (GC) and also offered to provide UNVIE 
with briefing sessions on UNIDO's program pillars.  Ambassador 
Davies, indicating that the U.S. was interested in learning more 
about UNIDO, welcomed the offer for briefings and confirmed 
Washington was considering Yumkella's GC invitation.  UNVIE 
continues to recommend the U.S. attend the GC as a formal observer, 
with UNVIE working-level officers representing the U.S.  END 
SUMMARY. 
 
--------------------------- 
DG's Vision for UNIDO Shaped 
by U.S. Withdrawal 
--------------------------- 
 
2. On September 17, Ambassador Davies met with Director General 
Kandeh Yumkella in the DG's office.  This was the first time since 
the U.S. withdrew from UNIDO in 1996 that an UNVIE ambassador has 
met the UNIDO DG in a formal capacity. 
 
3.  Yumkella greeted Ambassador Davies enthusiastically, stating 
that "it has been my mission for the past three years to get the 
United States to say, 'we are curious about what UNIDO is doing, and 
want to know more.'" 
 
4.  Yumkella provided Ambassador Davies with a background snapshot 
of UNIDO since 1996, through the lens of his personal experience 
with the organization.  He emphasized that his vision for UNIDO was 
directly influenced by the lessons he learned after U.S. withdrawal. 
 Arriving at UNIDO just as the U.S. and other major powers were 
leaving due to UNIDO's bloated mandate and ineffective assistance 
programs, Yumkella watched as the remaining member states took UNIDO 
"into receivership" and forced the organization to cut staff and 
projects, reviewing UNIDO's mandate and budget "line by line." 
While in Nigeria from 2000-2003 as UNIDO Regional Director, Yumkella 
stated he spent much of his time contemplating whether UNIDO was 
actually relevant and worth saving.  It was in Nigeria - a country 
which serves, he says, as "a microcosm of the challenge of 
possessing wealth but no management ability" - that Yumkella began 
to identify the three areas in which UNIDO could play a significant 
role.  He pointed to Nigeria's urban water pollution, its lack of 
private sector development, and its need for increased private 
enterprise access to international markets through adherence to 
international quality standards, as fairly universal challenges 
throughout the developing world.  Yumkella described how he then 
transformed these identified needs into a broader framework for 
UNIDO.  This framework now comprises UNIDO's three current pillars: 
Environment and Energy, Trade Capacity Building, and Poverty 
Reduction through Productive Activities. 
 
5.  Yumkella shifted gears and assessed UNIDO's current management 
situation, emphasizing the results of its reforms and his own 
accomplishments over the past four years.  Since 1993, Yumkella 
explained, UNIDO's staff has been reduced from 1400 to less than 
700, while increasing its operations on the ground.  Further, as one 
of the four major implementers of the Montreal Protocol, UNIDO is 
also ranked the best in terms of assistance implementation. 
 
---------------------- 
DG: EU Dominates UNIDO 
---------------------- 
 
6.  Much of UNIDO's work, Yumkella said, is driven by European Union 
(EU) initiatives (EU countries provide a significant portion of 
UNIDO's resources).  Yumkella predicted that cooperation with the EU 
could double in the next four years, and will be focused on the 
current European priorities of eco-efficiency (for example, 
optimizing industrial water use or cutting industrial emissions) and 
 
UNVIE VIEN 00000440  002 OF 003 
 
 
greater adherence to international product quality standards 
(whether government or wholesaler imposed).  Yumkella also reported 
that European countries are increasingly interested in using UNIDO 
as a vehicle to improve developing nations' "traceability" standards 
- the ability to trace a product's inputs back to original sources. 
For example, with Swiss, Italian and Nordic countries' assistance, 
UNIDO has started a pilot program in Asia to improve the ability of 
that region's exporters to meet international product quality 
standards - and thus acquire increased access to the EU market. 
 
-------------------------- 
DG: UNIDO's Future Aligns 
with U.S. Priorities 
-------------------------- 
 
7.  Turning to the next four years, Yumkella noted his role in UN 
energy and climate change initiatives (such as chairing UN Energy) 
and highlighted his desire to see more work in the area of poverty 
reduction.  What UNIDO needs, Yumkella asserted, is "patient 
capital."  For example, developing countries need to improve supply 
chains in agribusiness (where Yumkella asserts that as much as 20 
percent additional wealth could be created via modern systems), as 
well as small and medium sized enterprise expansion.  In order to do 
this, Yumkella opined, UNIDO needs partners like the U.S. who share 
such visions. 
 
8.  Yumkella reiterated his belief that all three UNIDO pillars are 
interrelated.  He pointed to past and current UNIDO efforts to 
"green" industrial practices, and noted that like the recent U.S. 
economic stimulus plan, and its "80 billion dollars for green jobs" 
UNIDO was finding ways to simultaneously protect the environment and 
widen the job market.  Yumkella also hailed the Millennium Challenge 
Corporation (MCC) as a great example of how, consistent with UNIDO's 
approach, integrated interventions done right can tangibly reduce 
poverty.  Like UNIDO's poverty reduction pillar, Yumkella said MCC 
is "really a wealth creation program," and serves as just one more 
example of where U.S. and UNIDO philosophies converge.  Finally, 
Yumkella pointed to Africa, which, he says, will have a population 
of 1.4 billion by 2030 - half of whom will be located in urban 
areas.  Without jobs, a healthy urban environment and access to 
sustainable economic growth, Yumkella warned of a rise in regional 
instability.  UNIDO, he concluded, can be an important partner for 
the U.S. in ensuring political and social stability by providing for 
sustainable economic development. 
 
----------------------------------------- 
DG Extends Invite to General Conference, 
Offer to Host Informational Briefings 
----------------------------------------- 
 
9.  Yumkella presented Ambassador Davies with two invitations. 
First, he reiterated his desire to see the U.S. attend the December 
GC as a formal observer.  Second, he proposed that his staff provide 
UNVIE with one hour sessions on each of UNIDO's three program 
pillars.  Yumkella invited Ambassador Davies to attend these 
meetings, and for UNVIE to ask hard questions and "put our feet to 
the fire."  Ambassador Davies thanked Yumkella for the chance to 
meet further, and promised to relay the GC invitation back to 
Washington. 
 
-------- 
COMMENT 
-------- 
 
10.  By emphasizing the management and program successes of UNIDO, 
and by showing how his own thinking on UNIDO's proper role was 
directly and positively affected by the U.S.'s withdrawal in 1996, 
Yumkella sought to characterize UNIDO as a force for private 
enterprise growth, energy sustainability, and long term social and 
political stability - all of which he believes are in line with U.S. 
priorities.  And by repeatedly highlighting how European countries 
are using UNIDO to improve developing world access to the European 
economic market, Yumkella pressed the point that the U.S., too, 
could benefit from greater involvement in UNIDO activities. 
 
11.  We have been careful to temper UNIDO hopes for any near term 
shift in U.S. policy on membership.  Nevertheless, UNVIE reiterates 
its recommendation that the U.S. should participate at the December 
GC at the working level.  We will report on UNIDO's program pillar 
presentations, and expect these will provide the U.S. with a chance 
 
UNVIE VIEN 00000440  003 OF 003 
 
 
to deepen our knowledge of the organization's track record and 
potential. END COMMENT 
 
DAVIES