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Viewing cable 04ROME1843, GROWING THE WFP DONOR BASE

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Reference ID Created Released Classification Origin
04ROME1843 2004-05-12 12:53 2011-08-26 00:00 UNCLASSIFIED Embassy Rome
This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS SECTION 01 OF 02 ROME 001843 
 
SIPDIS 
 
FROM U.S. MISSIONIN ROME 
 
 
    STATE FOR A/S HOLMES, PRM/P, IO/EDA KOTOK 
USAID FOR AA/DCHA WINTER, DCHA/FFP LANDIS 
USDA/FAS FOR CHAMBLISS, TILSWORTH 
USMISSION GENEVA FOR AMBASSADOR MOLEY AND USAID/KYLOH 
BRUSSELS FOR AFRICA WATCHERS AND USAID/LERNER 
NSC FOR JDWORKEN AND AFRICA DIRECTORATE 
 
E.O. 12958: N/A 
TAGS: EAID EAGR PREF EFIN AORC WFP
SUBJECT: GROWING THE WFP DONOR BASE 
 
------- 
SUMMARY 
------- 
 
1. WFP CONVENED AN INFORMAL CONSULTATION AT ITS HEADQUARTERS 
ON MAY 5, 2004, IN ORDER TO DISCUSS WITH MEMBER COUNTRIES 
ITS PLANS TO EXPAND ITS DONOR BASE. EMERGING (NON- 
TRADITIONAL) AND NEW DONORS CONTRIBUTED U.S. DOLLARS (USD) 
151 MILLION AND CONTRIBUTIONS FROM THE PRIVATE SECTOR THIS 
PAST YEAR IN CASH AND SERVICES TOTALED USD 29 MILLION. WFP 
IS INTENT UPON GROWING ITS RESOURCE BASE EXPONENTIALLY, 
BASED ON ITS CALCULATION OF ANTICIPATED NEEDS THROUGHOUT THE 
WORLD, RATHER THAN UPON PAST COMMITMENTS OR ANTICIPATED 
TRADITIONAL DONOR-FUNDING AVAILABILITIES. WFP ANNOUNCED THAT 
IT PLANS TO OPEN OFFICES IN BERLIN, PARIS, AND RIYADH, AND 
STRENGTHEN ITS OUTREACH CAPACITY IN DUBAI. EXECUTIVE 
DIRECTOR JIM MORRIS SUMMED UP THE EXPANDED FUNDING GOAL AT 
THE COMMENCEMENT OF THE CONSULTATION: "WE NEED TO PUT 
REDUCING HUNGER AT THE TOP OF THE INTERNATIONAL AGENDA." END 
SUMMARY. 

2. THE ALL-DAY CONFERENCE WAS SCHEDULED BECAUSE OF THE 
REALIZATION THAT GLOBAL FOOD AID NEEDS CONTINUE TO INCREASE 
IN RESPONSE TO INCREASING NUMBERS OF CONFLICTS, DROUGHTS, 
NATURAL DISASTERS, COMPLEX EMERGENCIES AND DEVELOPMENT 
CHALLENGES.  IN VIEW OF THE INCREASED COSTS NECESSARY TO 
ADDRESS GLOBAL FOOD AID NEEDS, AND IN CONSIDERATION OF WFP'S 
APPROVED BUDGET FOR THE 2004-2005 BIENNIUM OF USD 4.78 
BILLION, THIS CONSULTATION WAS AN OPPORTUNITY FOR WFP TO 
SHARE ITS THOUGHTS AND SOLICIT FURTHER THINKING FROM MEMBER 
COUNTRIES ABOUT HOW ITS ROBUST REVENUE GOALS MIGHT BE 
ACHIEVED. 
 
3. IN BRIEF, WFP PLANS TO EXPAND RELATIONS WITH CURRENT 
DONORS, ENGAGE NEW DONORS AND WORK IN PARTNERSHIP WITH THE 
PRIVATE SECTOR.  ONE RELATIVELY UNTAPPED AREA IS 
CONTRIBUTIONS FROM THE RECIPIENT COUNTRY ITSELF.  RECENTLY, 
HONDURAS MADE A CONTRIBUTION TO WFP OF USD 3.7 MILLION FOR 
IN-COUNTRY SCHOOL FEEDING ACTIVITIES AND THE GOVERNMENT OF 
BANGLADESH REPORTEDLY MAKES AVAILABLE USD 10 MILLION AND 
60,000 METRIC TONS OF WHEAT PER ANNUM TO SUPPORT WFP 
UNDERTAKINGS. WFP EXPECTS THIS TREND TO GROW EVEN FURTHER. 
TO MAXIMIZE THE VOLUME OF RESOURCES AVAILABLE TO ITS 
BENEFICIARIES, WFP ALSO WENT ON RECORD IN STATING THAT IT 
MUST BE ABLE TO ACCEPT ALL REASONABLE OFFERS OF COMMODITIES, 
GOODS AND SERVICES, AND MUST DO SO IN TRADE-NEUTRAL WAYS 
THAT MEET THE PRINCIPLE OF FULL-COST RECOVERY. 
 
4. WHILE FULL-COST RECOVERY WOULD REMAIN THE RULE FOR ALL 
DONATED COMMODITIES, WFP PROPOSED THAT COUNTRIES WOULD BE 
"ELIGIBLE FOR SPECIAL ASSISTANCE" IN MEETING FULL-COST 
    RECOVERY SHOULD THEIR PER CAPITA GROSS NATIONAL INCOME BE 
USD 2,975 OR LESS, IN CONFORMITY WITH THE OECD DEVELOPMENT 
ASSISTANCE COMMITTEE'S INCOME DEFINITION FOR LEAST 
DEVELOPED, LOW-INCOME AND LOWER MIDDLE-INCOME COUNTRIES. 
 
5. SPECIFICALLY APPLICABLE TO "TWINNING," (I.E., A MECHANISM 
TO MATCH NON-TRADITIONAL DONORS OF FOOD AID COMMODITIES WITH 
TRADITIONAL OR PREFERABLY NON-TRADITIONAL DONORS OF CASH FOR 
THE DELIVERY OF HUMANITARIAN ASSISTANCE IN FOOD 
EMERGENCIES), ONLY COUNTRIES THAT MEET THE OECD CRITERIA 
CLASSIFICATION OF LEAST-DEVELOPED, LOW-INCOME OR LOWER 
MIDDLE-INCOME COUNTRIES WOULD BE PERMITTED TO DONATE 
COMMODITIES, FOR WHICH ANOTHER DONOR OR DONORS WOULD BE 
REQUESTED TO ASSIST IN ENSURING FULL-COST RECOVERY. 
 
6. WFP SUGGESTED IT WOULD APPROACH MULTILATERAL CASH DONORS 
ABOUT A PORTION OF THEIR CONTRIBUTIONS BEING USED TO SUPPORT 
TWINNING ARRANGEMENTS IN ORDER TO REACH A GREATER NUMBER OF 
BENEFICIARIES. 
 
7. MEMBER COUNTRY RESPONSES TO WFP'S PRESENTATION WERE 
MIXED.  WHILE PAKISTAN FOUND WFP'S PRESENTATION EMINENTLY 
DOABLE, IT QUESTIONED WHETHER THE OECD LIST WAS THE BEST 
MEASURE FOR PROVIDING SPECIAL TREATMENT IN ASSISTING TO MEET 
FULL-COST RECOVERY. MANY EUROPEAN COUNTRIES CRITICIZED THE 
MOTIVES OF COUNTRIES THAT GIVE IN-KIND DONATIONS, INCLUDING 
GERMANY, NORWAY, AND THE NETHERLANDS. THERE WERE REPEATED 
 
ROME 00001843  001.2 OF 002 
 
Y 5, 2004, IN ORDER TO DISCUSS WITH MEMBER COUNTRIES 
ITS PLANS TO EXPAND ITS DONOR BASE. EMERGING (NON- 
TRADITIONAL) AND NEW DONORS CONTRIBUTED U.S. DOLLARS (USD) 
151 MILLION AND CONTRIBUTIONS FROM THE PRIVATE SECTOR THIS 
PAST YEAR IN CASH AND SERVICES TOTALED USD 29 MILLION. WFP 
IS INTENT UPON GROWING ITS RESOURCE BASE EXPONENTIALLY, 
BASED ON ITS CALCULATION OF ANTICIPATED NEEDS THROUGHOUT THE 
WORLD, RATHER THAN UPON PAST COMMITMENTS OR ANTICIPATED 
TRADITIONAL DONOR-FUNDING AVAILABILITIES. WFP ANNOUNCED THAT 
IT PLANS TO OPEN OFFICES IN BERLIN, PARIS, AND RIYADH, AND 
STRENGTHEN ITS OUTREACH CAPACITY IN DUBAI. EXECUTIVE 
DIRECTOR JIM MORRIS SUMMED UP THE EXPANDED FUNDING GOAL AT 
THE COMMENCEMENT OF THE CONSULTATION: "WE NEED TO PUT 
REDUCING HUNGER AT THE TOP OF THE INTERNATIONAL AGENDA." END 
SUMMARY. 

2. THE ALL-DAY CONFERENCE WAS SCHEDULED BECAUSE OF THE 
REALIZATION THAT GLOBAL FOOD AID NEEDS CONTINUE TO INCREASE 
IN RESPONSE TO INCREASING NUMBERS OF CONFLICTS, DROUGHTS, 
NATURAL DISASTERS, COMPLEX EMERGENCIES AND DEVELOPMENT 
CHALLENGES.  IN VIEW OF THE INCREASED COSTS NECESSARY TO 
ADDRESS GLOBAL FOOD AID NEEDS, AND IN CONSIDERATION OF WFP'S 
APPROVED BUDGET FOR THE 2004-2005 BIENNIUM OF USD 4.78 
BILLION, THIS CONSULTATION WAS AN OPPORTUNITY FOR WFP TO 
SHARE ITS THOUGHTS AND SOLICIT FURTHER THINKING FROM MEMBER 
COUNTRIES ABOUT HOW ITS ROBUST REVENUE GOALS MIGHT BE 
ACHIEVED. 
 
3. IN BRIEF, WFP PLANS TO EXPAND RELATIONS WITH CURRENT 
DONORS, ENGAGE NEW DONORS AND WORK IN PARTNERSHIP WITH THE 
PRIVATE SECTOR.  ONE RELATIVELY UNTAPPED AREA IS 
CONTRIBUTIONS FROM THE RECIPIENT COUNTRY ITSELF.  RECENTLY, 
HONDURAS MADE A CONTRIBUTION TO WFP OF USD 3.7 MILLION FOR 
IN-COUNTRY SCHOOL FEEDING ACTIVITIES AND THE GOVERNMENT OF 
BANGLADESH REPORTEDLY MAKES AVAILABLE USD 10 MILLION AND 
60,000 METRIC TONS OF WHEAT PER ANNUM TO SUPPORT WFP 
UNDERTAKINGS. WFP EXPECTS THIS TREND TO GROW EVEN FURTHER. 
TO MAXIMIZE THE VOLUME OF RESOURCES AVAILABLE TO ITS 
BENEFICIARIES, WFP ALSO WENT ON RECORD IN STATING THAT IT 
MUST BE ABLE TO ACCEPT ALL REASONABLE OFFERS OF COMMODITIES, 
GOODS AND SERVICES, AND MUST DO SO IN TRADE-NEUTRAL WAYS 
THAT MEET THE PRINCIPLE OF FULL-COST RECOVERY. 
 
4. WHILE FULL-COST RECOVERY WOULD REMAIN THE RULE FOR ALL 
DONATED COMMODITIES, WFP PROPOSED THAT COUNTRIES WOULD BE 
"ELIGIBLE FOR SPECIAL ASSISTANCE" IN MEETING FULL-COST 
    RECOVERY SHOULD THEIR PER CAPITA GROSS NATIONAL INCOME BE 
USD 2,975 OR LESS, IN CONFORMITY WITH THE OECD DEVELOPMENT 
ASSISTANCE COMMITTEE'S INCOME DEFINITION FOR LEAST 
DEVELOPED, LOW-INCOME AND LOWER MIDDLE-INCOME COUNTRIES. 
 
5. SPECIFICALLY APPLICABLE TO "TWINNING," (I.E., A MECHANISM 
TO MATCH NON-TRADITIONAL DONORS OF FOOD AID COMMODITIES WITH 
TRADITIONAL OR PREFERABLY NON-TRADITIONAL DONORS OF CASH FOR 
THE DELIVERY OF HUMANITARIAN ASSISTANCE IN FOOD 
EMERGENCIES), ONLY COUNTRIES THAT MEET THE OECD CRITERIA 
CLASSIFICATION OF LEAST-DEVELOPED, LOW-INCOME OR LOWER 
MIDDLE-INCOME COUNTRIES WOULD BE PERMITTED TO DONATE 
COMMODITIES, FOR WHICH ANOTHER DONOR OR DONORS WOULD BE 
REQUESTED TO ASSIST IN ENSURING FULL-COST RECOVERY. 
 
6. WFP SUGGESTED IT WOULD APPROACH MULTILATERAL CASH DONORS 
ABOUT A PORTION OF THEIR CONTRIBUTIONS BEING USED TO SUPPORT 
TWINNING ARRANGEMENTS IN ORDER TO REACH A GREATER NUMBER OF 
BENEFICIARIES. 
 
7. MEMBER COUNTRY RESPONSES TO WFP'S PRESENTATION WERE 
MIXED.  WHILE PAKISTAN FOUND WFP'S PRESENTATION EMINENTLY 
DOABLE, IT QUESTIONED WHETHER THE OECD LIST WAS THE BEST 
MEASURE FOR PROVIDING SPECIAL TREATMENT IN ASSISTING TO MEET 
FULL-COST RECOVERY. MANY EUROPEAN COUNTRIES CRITICIZED THE 
MOTIVES OF COUNTRIES THAT GIVE IN-KIND DONATIONS, INCLUDING 
GERMANY, NORWAY, AND THE NETHERLANDS. THERE WERE REPEATED 
 
ROME 00001843  002.1 OF 002 
 
IONARY FLAGS ON POSSIBLE 
"CONFLICT OF INTEREST" WERE RAISED BY A NUMBER OF OECD 
DELEGATES. ON THIS LATTER ISSUE, WFP PROVIDED A SAMPLE CODE 
OF CONDUCT (USED BY UNHCR FOR GOVERNING PRIVATE SECTOR 
DONATIONS) AND HANDED OUT A SUMMARY OF PRIVATE-SECTOR DONOR 
SELECTION CRITERIA USED BY THE UN SECRETARY-GENERAL'S 
OFFICE, UNICEF, UNDP, AND UNHCR; AND CHECK LISTS RELATED TO 
MAINTAINING THE INTEGRITY OF THE PROCUREMENT PROCESS AND 
ENSURING NO UNFAIR ADVANTAGE, AS USED BY THE UNSG'S OFFICE, 
UNICEF, UNDP, UNHCR AND FAO. 
 
--------------------------------------- 
WFP - "GEARING UP TO SCALE MT. EVEREST" 
--------------------------------------- 
 
8. WFP COMMENTED THAT THE GLOBAL CORPORATE SPONSORING MARKET 
IS APPROXIMATELY USD 39-52 BILLION, WITH LESS THAN USD 1.12 
BILLION SPENT ON HUMANITARIAN ASSISTANCE. WFP'S OBJECTIVE IS 
TO RAISE 10 PERCENT OF ITS RESOURCES FROM THE PRIVATE SECTOR 
BY 2007, SOME USD $300 MILLION PER ANNUM. THEY UNDERLINED 
    THAT UNICEF CURRENTLY FUNDS ABOUT ONE-THIRD OF ITS BUDGET 
FROM NON-GOVERNMENTAL SOURCES. 
 
9. THE DRIVER OF THE EXPONENTIAL INCREASE IN THE WFP BUDGET 
OVER THE PAST TWELVE YEARS (I.E., SINCE THE U.S. ASSUMED THE 
EXECUTIVE DIRECTORSHIP OF THE ORGANIZATION) HAS BEEN THE 
U.S. GOVERNMENT. OVERALL, DONOR SUPPORT TO WFP 1992-2003 
TOTALED USD 19.94 BILLION, OF WHICH THE UNITED STATES 
CONTRIBUTED USD 8.77 BILLION (44 PERCENT). THE UNITED STATES 
ALSO DRIVES THE GLOBAL FOOD AID AGENDA; WE PROVIDED, IN 
2003, 57 PERCENT OF ALL GLOBAL FOOD AID AND 51 PERCENT OF 
ALL EMERGENCY FOOD ASSISTANCE. 
 
------- 
COMMENT 
------- 
 
10. WITH MASSIVE OPERATIONS IN IRAQ, SOUTHERN AFRICA AND 
ETHIOPIA, 2003 WAS A "BANNER" FUND RAISING YEAR FOR WFP. USD 
2.6 BILLION IN CONTRIBUTIONS WERE GENERATED. 
EMERGING (NON-TRADITIONAL) AND NEW DONORS CONTRIBUTED USD 
151 MILLION AND CONTRIBUTIONS FROM THE PRIVATE SECTOR 
TOTALED USD 29 MILLION. BASED ON ITS CALCULATION OF 
ANTICIPATED NEEDS THROUGHOUT THE WORLD, RATHER THAN UPON 
PAST COMMITMENTS OR ANTICIPATED DONOR-FUNDING 
AVAILABILITIES, WFP IS FIRMLY COMMITTED TO RAISING ITS 
REVENUE BASE EVEN HIGHER. AS PART OF ITS IMMEDIATE NEXT 
STEPS, WFP ANNOUNCED THAT IT PLANS TO OPEN OFFICES IN 
BERLIN, PARIS, AND RIYADH, AND STRENGTHEN ITS OUTREACH 
CAPACITY IN DUBAI. EXECUTIVE DIRECTOR JIM MORRIS SUMMED UP 
THE EXPANDED FUNDING GOAL AT THE COMMENCEMENT OF THE 
    CONSULTATION: "WE NEED TO PUT REDUCING HUNGER AT THE TOP OF 
THE INTERNATIONAL AGENDA." CLEVERLEY 
 
ROME 00001843  002.2 OF 002 
 
IONARY FLAGS ON POSSIBLE 
"CONFLICT OF INTEREST" WERE RAISED BY A NUMBER OF OECD 
DELEGATES. ON THIS LATTER ISSUE, WFP PROVIDED A SAMPLE CODE 
OF CONDUCT (USED BY UNHCR FOR GOVERNING PRIVATE SECTOR 
DONATIONS) AND HANDED OUT A SUMMARY OF PRIVATE-SECTOR DONOR 
SELECTION CRITERIA USED BY THE UN SECRETARY-GENERAL'S 
OFFICE, UNICEF, UNDP, AND UNHCR; AND CHECK LISTS RELATED TO 
MAINTAINING THE INTEGRITY OF THE PROCUREMENT PROCESS AND 
ENSURING NO UNFAIR ADVANTAGE, AS USED BY THE UNSG'S OFFICE, 
UNICEF, UNDP, UNHCR AND FAO. 
 
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WFP - "GEARING UP TO SCALE MT. EVEREST" 
--------------------------------------- 
 
8. WFP COMMENTED THAT THE GLOBAL CORPORATE SPONSORING MARKET 
IS APPROXIMATELY USD 39-52 BILLION, WITH LESS THAN USD 1.12 
BILLION SPENT ON HUMANITARIAN ASSISTANCE. WFP'S OBJECTIVE IS 
TO RAISE 10 PERCENT OF ITS RESOURCES FROM THE PRIVATE SECTOR 
BY 2007, SOME USD $300 MILLION PER ANNUM. THEY UNDERLINED 
    THAT UNICEF CURRENTLY FUNDS ABOUT ONE-THIRD OF ITS BUDGET 
FROM NON-GOVERNMENTAL SOURCES. 
 
9. THE DRIVER OF THE EXPONENTIAL INCREASE IN THE WFP BUDGET 
OVER THE PAST TWELVE YEARS (I.E., SINCE THE U.S. ASSUMED THE 
EXECUTIVE DIRECTORSHIP OF THE ORGANIZATION) HAS BEEN THE 
U.S. GOVERNMENT. OVERALL, DONOR SUPPORT TO WFP 1992-2003 
TOTALED USD 19.94 BILLION, OF WHICH THE UNITED STATES 
CONTRIBUTED USD 8.77 BILLION (44 PERCENT). THE UNITED STATES 
ALSO DRIVES THE GLOBAL FOOD AID AGENDA; WE PROVIDED, IN 
2003, 57 PERCENT OF ALL GLOBAL FOOD AID AND 51 PERCENT OF 
ALL EMERGENCY FOOD ASSISTANCE. 
 
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COMMENT 
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10. WITH MASSIVE OPERATIONS IN IRAQ, SOUTHERN AFRICA AND 
ETHIOPIA, 2003 WAS A "BANNER" FUND RAISING YEAR FOR WFP. USD 
2.6 BILLION IN CONTRIBUTIONS WERE GENERATED. 
EMERGING (NON-TRADITIONAL) AND NEW DONORS CONTRIBUTED USD 
151 MILLION AND CONTRIBUTIONS FROM THE PRIVATE SECTOR 
TOTALED USD 29 MILLION. BASED ON ITS CALCULATION OF 
ANTICIPATED NEEDS THROUGHOUT THE WORLD, RATHER THAN UPON 
PAST COMMITMENTS OR ANTICIPATED DONOR-FUNDING 
AVAILABILITIES, WFP IS FIRMLY COMMITTED TO RAISING ITS 
REVENUE BASE EVEN HIGHER. AS PART OF ITS IMMEDIATE NEXT 
STEPS, WFP ANNOUNCED THAT IT PLANS TO OPEN OFFICES IN 
BERLIN, PARIS, AND RIYADH, AND STRENGTHEN ITS OUTREACH 
CAPACITY IN DUBAI. EXECUTIVE DIRECTOR JIM MORRIS SUMMED UP 
THE EXPANDED FUNDING GOAL AT THE COMMENCEMENT OF THE 
    CONSULTATION: "WE NEED TO PUT REDUCING HUNGER AT THE TOP OF 
THE INTERNATIONAL AGENDA." CLEVERLEY 
 
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 2004ROME01843 - Classification: UNCLASSIFIED