This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS  ROME 002277 
 
SIPDIS 
 
 
FROM U.S. MISSION TO THE UN AGENCIES IN ROME 
 
NSC FOR DWORKEN 
STATE FOR IO/EDA, PRM/P, E, EB/IFD/ODA, EB/TPP/ABT, IO/EDA, 
WHA/EPSC, WHA/CEN 
TREASURY FOR OSDI - JASKOWIAK, BLOOMGARDEN, BRUBAKER 
USAID FOR AA/LAC, DAA/DCHA GRIGSBY, DCHA/FFP LANDIS 
USDA/FAS FOR CHAMBLISS/TILSWORTH/GAINOR 
 
E.O. 12958:   N/A 
TAGS: EAID EAGR EFIN AORC SENV NU XK WFP FAO IFAD
SUBJECT:  FOOD SECURITY IN NICARAGUA: VISIT OF ALTERNATE 
PERMREP, MAY 2-5, 2004 
 
 
¶1.  Summary:   U.S. Mission Rome Alternate Permanent 
Representative traveled to Nicaragua May 2-5 to review 
efforts by the UN agencies to work with the host government 
and other donors to address food insecurity in this low- 
income, food-deficit country that has been hit by recurring 
natural disasters and hampered by political and economic 
instability.  Field visits to eight ongoing projects 
supported by the World Food Program (WFP) and/or the UN Food 
and Agriculture Organization (FAO) in west and central 
Nicaragua provided compelling evidence of the extent of food 
insecurity and poverty problems, and of the positive impact 
the UN agencies can have on rural communities, particularly 
when they work together in a close and coordinated fashion. 
School feeding activities were seen to provide important 
benefits to vulnerable children and their communities, but 
the continuity and sustainability of such activities appear 
in doubt, given uncertain USG commitments.  The Nicaraguan 
government's apparent failure thus far to identify food 
security as a national development priority is a matter of 
concern.  At the same time, prospects for enhanced trade 
under the Central American Free Trade Agreement (CAFTA) and 
development opportunities that come with Nicaragua's 
recently announced eligibility for the Millennium Challenge 
Account provide grounds for a measure of cautious optimism. 
End summary. 
 
BACKGROUND 
---------- 
 
¶2.  Alternate Permrep Willem Brakel, from U.S. Mission Rome, 
visited Nicaragua from May 2 to 5, to review the field 
activities of the Rome-headquartered UN agencies for food 
and agriculture.  Also participating in the field visits on 
May 4 was Guatemala-based Regional Food for Peace (FFP) 
Officer David Hull.  This report seeks to highlight 
noteworthy activities and to flag issues related to actual 
or potential synergies among the programs of WFP, FAO, IFAD 
and other UN agencies and their complementarity with USG 
bilateral assistance.  The assistance of the WFP and FAO 
Permanent Representations, the USAID Mission and U.S. 
Embassy are gratefully acknowledged.  This cable may be read 
in conjunction with a separate report covering field visits 
in Guatemala. 
 
¶3.  Nicaragua is the second-poorest country in the Latin 
America/Caribbean region, with approximately half of the 
population living under the poverty line.  Almost 80 percent 
of the extremely poor live in rural areas prone to recurrent 
natural disasters.  Chronic malnutrition affects one out of 
four children under age 5.  Addressing food insecurity has 
not been a government priority.  In March 2004, FAO, WFP, 
UNICEF and WHO/PAHO drafted a joint analysis on "Food and 
Nutritional Security: a Strategic Element for the 
Development of Nicaragua."  The paper concludes that "in 
recent years, actions undertaken by the various 
organizations that promote food and nutritional security 
have implicated significant levels of financing, but their 
impact is scarcely perceptible, very isolated and with scant 
coordination in most cases, without a national strategic 
connection to integrate the different actors in this area 
... resulting in the expenditure of resources without the 
least or acceptable impact (productive, social and economic) 
at the national level, with a few exceptions...."   The FAO 
and WFP reps sent a copy of the joint analysis to the 
Presidency in early April, urging the government to rethink 
its policies and to include food security more centrally in 
the National Development Plan. 
 
WFP OPERATIONS 
-------------- 
 
¶4.  WFP's Country Program (CP) for Nicaragua aims to achieve 
 
 
food security for more than 452,000 persons over the 2002- 
2006 period, at a total budgeted WFP cost of $14 million for 
basic activities and $9.4 million for supplementary 
activities.  The CP concentrates on the northern and south- 
central regions of the country, where rural women and 
children, small farmers and landless people are the most 
vulnerable and disadvantaged in gaining access to resources. 
The CP is being implemented through the following program 
activities: (1) integrated assistance for vulnerable women 
and children; (2) investment in human capital through 
education in areas highly vulnerable to food insecurity; (3) 
support to rural families in areas affected by drought and 
floods; and (4) assistance to additional school children 
(fully funded from the USDA McGovern-Dole initiative). 
Also, Nicaragua benefits from the $66.8 million Protracted 
Relief and Recovery Operation (PRRO) for Central America, 
providing targeted food assistance in 2003-2006 for persons 
affected by shocks and for the recovery of livelihoods. 
 
FAO ACTIVITIES 
-------------- 
 
¶5.  FAO has four major ongoing projects under the Technical 
Cooperation Program (TCP) totaling $1.06 million, related to 
(1) support for artisanal fisheries on the Atlantic coast; 
(2) expansion of the Special Program for Food Security 
(SPFS) in the Dry Zone (Note: the Dry Zone is an area in 
Nicaragua than extends northwest into Honduras, El Salvador 
and Guatemala that suffers from frequently recurring 
droughts); (3) emergency diversified production for small 
coffee producers in Matagalpa and Jinotega Departments; and 
(4) preparation for a coffee production conversion and 
diversification program.  There are new TCP projects under 
consideration involving (1) sustainable development of small 
watersheds in NE Nicaragua; (2) management of pine forests 
affected by fire; (3) development of a forest inventory; and 
(4) demarcation of indigenous lands in the Atlantic (RAAN) 
region. 
 
¶6.  Four ongoing or recent activities supported by voluntary 
Trust Fund contributions are: $1.66 million from Spain for 
the pilot phase of the SPFS; $323,828 to support the 
national agricultural and livestock census; and two smaller 
projects studying remittances and the impact of HIV/AIDS, 
respectively.  Possible new Trust Fund projects involve (1) 
technical education and agricultural information systems, 
(2) live exports of spiny lobsters, and (3) technical 
assistance for small/medium livestock producers, provided 
through the Rural Credit Fund.  Also under consideration is 
a $10 million FAO/UNDP project on sustainable use of rural 
land in areas susceptible to degradation.  There are six 
small (less that $10,000 each), community-based Telefood 
projects in progress, and seven more on the drawing boards. 
Finally, there are four regional TCP projects and five 
regional Trust Fund projects currently ongoing. 
 
IFAD-FUNDED PROGRAMS 
-------------------- 
 
¶7.  IFAD has two approved projects in Nicaragua: 
 
-- Program for the Economic Development of the Dry Region. 
Loan amount: SDR 10.15 million ($14.6 million).  The program 
will enable poor peasants and microentrepreneurs to 
participate in planning and implementation of business and 
employment plans, ensuring improved access to income- 
generating activities.  Cooperating institution: Central 
American Bank for Economic Integration. 
 
-- Technical Assistance Fund Program for the Departments of 
Len, Chinandega and Managua. Loan amount: SDR 10.2 million 
($14.7 million). 
 
 
The main objective is to improve the productive and 
marketing capacity of rural, small- to medium-scale 
producers and entrepreneurs in order to improve the income 
and living conditions of their families.  Specifically, the 
program will ensure that the target groups have access to 
sustainable technical assistance services.  Cooperating 
institution: International Development Association. 
 
USG ACTIVITIES 
-------------- 
 
¶8.  USAID/Nicaragua is implementing a five-year P.L. 480 
Title II program with a total budget of approximately $52.5 
million.  The program began in 2002 and will run until 
¶2006.  The program monetizes approximately 60 percent of the 
commodities and directly distributes the rest through food- 
for-work activities.  A little more than half of the 
program's budget supports agricultural activities aimed at 
increasing the incomes of small-scale farmers through crop 
diversification, markets linkages, and the adoption of new 
agricultural technologies.  The remaining funds support 
maternal and child health and nutrition programs with a 
focus on children below two years of age.  In addition, 
USAID is funding development of a Meso American Food 
Security Early Warning Systems (MFEWS) aimed at 
strengthening regional capacity to detect potential food 
insecurity crises ahead of time by improving access to and 
sharing of information. 
 
¶9.  USDA food commodities are directly distributed in 
programs that support: (1) maternal child health for 115,000 
children and 21,000 adults in hospitals, orphanages, 
schools, and homes for the elderly; (2) food-for-education 
to improve attendance, enrollment, nutrition and achievement 
levels of pre-primary and primary level students in the 
municipalities of Jinotega, Madriz, and Managua; (3) WFP's 
protracted relief and recovery operation and school feeding 
project.  USDA monetization programs include support for: 
(1) 260 primary school students and street children, grades 
1 to 9; (2) improved productivity and income of small and 
medium-sized farmers; and (3) improved attendance and 
quality of education though the food-for-education 
initiative. 
 
SITES VISITED 
------------- 
 
¶10.  We visited the following projects/activities: 
 
(1)  School Feeding, Las Banquitas Community, Department of 
Matagalpa: 
 
WFP provides food assistance to the El Nicarao school's 201 
preschool and primary school children in this community of 
760 inhabitants.  During our visit on May 3 the student 
association leaders presented a letter thanking the U.S. and 
other WFP donors for food contributions "that fill us with 
happiness."  In their letter, the children highlighted the 
positive effects of school meals on attendance and 
children's health.  "We hope that you as donors continue to 
support us with food products, and in so doing shape the 
future." 
 
(2) WFP Vulnerable Group Activities, Las Banquitas 
Community, Department of Matagalpa: 
 
We visited a clinic where WFP provides food assistance in 
the form of complementary rations to 46 pregnant or nursing 
women and 77 infants.   Recent data indicate that in this 
community 20% of the children under the age of two are 
malnourished. 
 
 
(3) FAO Emergency Seeds Project, Las Banquitas Community, 
Department of Matagalpa: 
 
In 2003, WFP created a food-for-work program in cooperation 
with the National Union of Coffee Growers, permitting 32 
families to diversify their economic activities away from 
coffee.  Concurrently, FAO provided seeds, fertilizer and 
tools to 65 families for cultivation of black beans, in its 
first emergency activity that was specifically targeted to 
address an economic crisis. 
 
(4) FAO Emergency Seeds Project, La Fundadora, Department of 
Matagalpa: 
 
We visited additional families cultivating black beans with 
FAO support in the community of La Fundadora.  The farmers 
explained that people in this area are not used to eating 
black beans and there is not much of a market for them 
locally; but they considered themselves fortunate to have 
this variety since the beans were able to withstand an 
unexpected rainy spell much better than the traditional red 
beans.  They will try again this year.  The farmers' 
experience suggests that farmers may need assistance for 
more than one growing season in order to successfully adopt 
new crops and techniques.  They also may need more help in 
accessing regional markets where demand for black beans is 
stronger and prices are higher. 
 
(5) Nutritional Recovery Center, Town of Matagalpa: 
 
This center operated by a faith-based NGO in conjunction 
with local medical authorities provides in-patient care to 
children suffering from serious malnutrition.  When we 
visited, there were only 9 children receiving treatment, but 
two were severely malnourished.  The center's staff 
explained that follow-up with the children's parents is an 
important part of their work, since families' lack of 
awareness of nutritional basics, together with economic 
hardship, are the principal causes of their children's 
malnourishment. 
 
(6) WFP Interventions, Los Pochotillos Community, San 
Francisco Libre: 
 
This isolated community of 44 families -- mostly subsistence 
farmers -- is located in the Dry Zone.  Road access is 
difficult in the dry season, and nearly impossible during 
the rains.  Burros are the preferred mode of transport.  The 
poverty rate is over 95%.  Basic services are rudimentary. 
The preschool, with an enrollment of 15 and using the 
building of a local church, has a roof but is otherwise open 
to the elements.  Lessons at the one-room elementary school 
(enrollment: 73) are given in shifts, with first and second 
graders attending in the morning and third through sixth 
graders in the afternoon.  It is 7 km to the nearest clinic, 
and 24 km to the nearest secondary school.  In this 
environment WFP provides food for work during critical times 
of the year.  There is a school feeding program to which 
parents contribute their labor (preparing the meals) and 
vegetables (to enrich the diet).  A vulnerable group program 
provides complementary food rations to pregnant and 
lactating mothers and their infants. 
 
(7) FAO Irrigation and Agriculture Demonstration Project, 
Los Pochotillos Community and environs, San Francisco Libre: 
 
We visited an FAO SPFS irrigation project that has been 
operating since 2000.  The project supports local farmers in 
construction of small irrigation systems, provides training 
in soil conservation and watershed management, and 
encourages diversification of crops, to include onions, 
yucca, high-yield maize and plantains. 
 
 
(8) WFP/FAO Projects, La Trinidad Community, San Francisco 
Libre. 
 
WFP and FAO activities similar to those in Los Pochotillos 
were also observed in the neighboring La Trinidad Community, 
a settlement that 
is slightly larger and somewhat less poor, but where 
socioeconomic and climatic conditions are much the same. 
The school feeding program could be enhanced by creation of 
a vegetable garden on the premises to provide fresh produce 
for inclusion in the menu -- FAO may be able to assist. 
 
(9)  IFAD:  Foundation for the Technical Development of 
Agriculture and Foresty of Nicaragua (FUNICA): 
 
Due to time constraints, it was not possible to visit IFAD- 
funded activities in the field.  We met instead in Managua 
with the General Manager and other officials of FUNICA, a 
foundation created under the Technical Assistance Fund 
Program (para 8).  Under this program, public and private- 
sector institutions jointly manage public funds to promote 
demand-driven services in research and agricultural 
extension.  The officials outlined the lines of action of 
FUNICA's Technical Assistance Fund (FAT) in promotion and 
organization of producers, pre-investment studies, technical 
assistance services, and local capacity building. 
 
CONCLUSIONS 
----------- 
 
¶11.  U.S. Mission Rome offers the following comments and 
observations based on the visit. 
 
-- WFP is managing a dynamic program in Nicaragua that goes 
well beyond distribution of food.  Food is seen to be used 
as a tool for development.  Activities such as school 
feeding, by involving parents in preparation and transport 
of food, are acting as a catalyst for community 
organization. 
 
-- Looming over Nicaragua's school feeding program are 
proposed USG cuts for McGovern-Dole initiative.  The 
situation is worsened by the recent termination of a related 
Japanese program.  School meals for 400,000 schoolchildren 
may have to be discontinued shortly if the shortfall is not 
addressed. 
 
-- During the visit to Nicaragua, we also learned that 
Central American governments affected by the proposed cuts 
in McGovern-Dole have agreed to a joint demarche in 
Washington, led by the Nicaraguan Embassy. 
 
-- Local expectations of foreign aid may be unrealistically 
high after the extraordinary donor efforts following recent 
disasters.  In the long term the Nicaraguan government will 
need to play a larger role in its national food security, 
but it has not shown leadership in this area. 
 
-- There needs to be a clear demonstration of political will 
on the part of the GON to end hunger.  Reported government 
attempts to target food aid to municipalities for political 
advantage should be investigated and brought to a halt. 
Government policy in other areas, such as land tenure, is a 
major factor in food insecurity. 
 
-- Consideration should be given to allocating part of the 
new resources available to Nicaragua under the Millennium 
Challenge Account to addressing food security issues. 
 
-- It is unlikely that the domestic private sector can do 
much to fill the food aid resource gap; they may have some 
 
 
commodities to donate, but not the cash required to pay for 
transport, nor can they assure continuity of supply. 
 
-- WFP Nicaragua is doing commendable pioneering work with 
the international private sector, as host for volunteers 
from the Netherlands-based freight/parcel forwarder TPG. 
The volunteers are released by their employers for a 3-month 
tour, implementing school feeding activities and small 
projects in Matagalpa area. 
 
-- More could be done to harness the influence and resources 
of Nicaraguan expatriates.  We learned that WFP is already 
embarking on promising outreach to the Nicaraguan community 
in the U.S.  The power of such an approach was demonstrated 
recently when a Miami Herald article on Nicaragua generated 
$28,000 in unsolicited contributions from expatriates and 
other well-wishers.  Also, FAO Nicaragua, with the Ford 
Foundation, is planning an interesting pilot project to 
study the use of remittances for local development 
activities in the municipality of El Sauce. 
 
-- Commendably, the WFP and FAO offices cooperate closely 
and effectively, both in the field (as seen at Las Banquitas 
and Los Pochotillos) and in the capital (where the FAO and 
WFP reps together spearheaded a dialogue with the Presidency 
on the role of food security in the National Development 
Plan). 
 
-- We understand that close UN agency cooperation also 
extends to UNICEF and UNDP, although strong pressure on the 
UNDP office to generate new projects appears to have 
contributed to a competitive -- rather than cooperative -- 
interagency environment in the development of project 
proposals. 
 
-- FAO is fortunate to have an energetic Resident 
Representative in Managua, but this individual is hamstrung 
by limited resources and a lack of technical experts.  A 
possible solution might be to give consideration to out- 
posting FAO officers from Rome to a sub-regional office for 
Central America that supports the FAO permanent 
representations in Managua and other Central American 
capitals. 
 
-- We encourage increased regional cooperation and 
information exchange on food security issues.  This applies 
both to coordination among the UN organizations and major 
donors, as well as within USG agencies.  A recently proposed 
effort in that direction -- a Central American regional food 
aid planning conference involving FFP officers, WFP reps and 
other key players -- was reportedly scrapped.  From our 
conversations in Nicaragua, we believe that such a meeting 
has merit, and should be reconsidered. 
 
-- The HIV/AIDS epidemic is considered to be in its early 
phases in Nicaragua and UNAIDS estimated in 2000 that only 
4900 persons were infected; but, extrapolating from Health 
Ministry statistics on AIDS-related deaths and factoring in 
underreporting, the actual number may be in the 24,000- 
36,000 range.  The GON is currently implementing a grant 
from the Global Fund; Nicaragua's implementing NGO 
consortium has included the link to nutrition and food 
security in its work plan and is receiving technical 
assistance from the USAID-supported Food and Nutrition 
Technical Assistance (FANTA) program. 
 
-- FAO-Nicaragua has taken an important step in initiating a 
Pilot Study on HIV/AIDS and Food Security in Rural 
Nicaragua, with funding from the Livelihoods Diversification 
and Enterprise Development program, and is preparing a 
follow-on study for the North Atlantic region of the 
country.  Other UN agencies and bilateral donors need to 
 
 
work with the GON to give HIV/AIDS greater attention. 
Hall 
 
 
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 2004ROME02277 - Classification: UNCLASSIFIED