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Viewing cable 06USUNNEWYORK1493, UN DEMOCRACY FUND REVIEWS FIRST PROJECT PROPOSALS

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Reference ID Created Released Classification Origin
06USUNNEWYORK1493 2006-08-07 17:18 2011-08-26 00:00 UNCLASSIFIED USUN New York
VZCZCXYZ0000
PP RUEHWEB

DE RUCNDT #1493/01 2191718
ZNR UUUUU ZZH
P 071718Z AUG 06
FM USMISSION USUN NEW YORK
TO RUEHC/SECSTATE WASHDC PRIORITY 9783
INFO RUEHRL/AMEMBASSY BERLIN 0763
RUEHUP/AMEMBASSY BUDAPEST 0373
RUEHBY/AMEMBASSY CANBERRA 1271
RUEHCO/AMEMBASSY COTONOU 0117
RUEHDO/AMEMBASSY DOHA 0151
RUEHJA/AMEMBASSY JAKARTA 1162
RUEHNE/AMEMBASSY NEW DELHI 1418
RUEHFR/AMEMBASSY PARIS 0969
RUEHSA/AMEMBASSY PRETORIA 0684
RUEHBS/USEU BRUSSELS
UNCLAS USUN NEW YORK 001493 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EAID EUN KDEM KUNR PHUM
SUBJECT: UN DEMOCRACY FUND REVIEWS FIRST PROJECT PROPOSALS 
 
SENSITIVE BUT UNCLASSIFIED (ENTIRE TEXT) 
 
BEGIN SUMMARY: 
 
1.(SBU) The second UN Democracy Fund (UNDEF) Advisory Board 
meeting was held in New York on July 18 to consider project 
proposals from an initial pool of over 1,300 submissions. All 
17 Advisory Board members and UNDEF staff were present. Based 
on democracy building guidelines, the UNDEF Secretariat 
reduced the initial tranche to 179 projects for Board 
consideration. As the funds requested for these projects ($70 
million) totaled more than the money available in the fund 
($49 million), the Secretariat proposed that all 179 projects 
receive proportionately reduced funding across the board. 
 
2.(SBU) As an alternative to arbitrary-across-the-board 
reductions, USUN Ambassador Alejandro Wolff advocated for the 
fast tracking of smaller projects and a further analysis of 
the remaining projects for additional prioritization. The 
Secretariat agreed to resubmit a downsized project list to 
 
SIPDIS 
the membership based upon clear criteria for democracy 
building, aimed especially at countries in transition. The 
new list of 121 projects has just been released for members' 
consideration. USUN will work with the Secretariat and other 
board members to try to fast track some of the programs 
before the UNGA meets in September. End summary. 
 
3.(SBU) The second Advisory Board meeting took place at UN 
headquarters on July 18. All board members were present, 
including Dr. Rima Khalaf-Hunaidi (Chair), Prof. Guillermo 
O'Donnell, Prof. Michael Doyle, Mr. Amir Dossal (ex-officio), 
Member States appointed by the SYG (South Africa, Benin, 
Hungary, Chile, and Indonesia), the six top UNDEF donors 
(Australia, France, Germany, India, Qatar and the United 
States), and two NGO members (Civicus and International 
Commission of Jurists). Ambassador Wolff represented the U.S. 
 
PROGRESS OF THE FUND/ PROPOSALS 
 
4.(SBU) Director Amir Dossal announced that Ireland, Italy, 
Japan, Republic of Korea, Latvia, Mongolia, Spain, Sweden, 
and the European Commission (EC) had all expressed interest 
in contributing to the Fund. Dossal asked the Board to 
consider creating an additional seat for multilateral 
organizations, such as the European Community, which the U.S. 
opposed. Deputy UNDEF Director Magdy Martinez-Soliman 
presented an overview of the project proposals received and 
the selection process used to create the short list. The 
UNDEF office plans to present a "lessons learned" paper on 
the project selection process. Over 1,303 projects were 
received online, covering all five regions and 130 Member 
States. 70% came from civil society organizations, 18% from 
UN entities, and 12% from government and regional 
organizations. 
 
5.(SBU) The Advisory Board discussed various aspects of the 
proposal list. Hungary, Germany, France, and South Africa 
supported the Secretariat's notion to proportionately fund 
all 179 projects, with an overall budget of $38 million. The 
U.S. and South Africa requested greater clarification on the 
criteria used to review projects. Benin recommended the 
entire list of projects be approved as presented, and that 
the budgets of the projects subsequently be reviewed and 
reduced at a later date based on Secretariat recommendations. 
 Chile emphasized the need for gender equity to be explicitly 
factored into the project approval list, and expressed its 
concern about the high number of UN-housed projects. 
Australia expressed concern about the idea of arbitrary cuts 
and the fact that there had been no recommendation from the 
Secretariat about what should be cut from budgets of larger 
 
SIPDIS 
projects. Considering that nearly 70% were within $100,000 of 
the maximum allowed, there were inevitably some budget items 
that could and should be reduced. 
 
6.(SBU) Ambassador Wolff emphasized that the UN must live 
within its resources. He noted that in order to approve the 
short list of 179 projects, the Secretariat had in effect 
mandated an arbitrary funding cut for all projects, which 
could jeopardize the effectiveness of some important projects 
and penalize those applicants that had submitted tightly 
funded proposals. He suggested that Board fund immediately 
those meritorious smaller scale proposals under $300,000 as a 
means to create a positive start for UNDEF and to recognize 
 
applicants that had calculated tightly budgeted proposals. He 
noted the first year of funding would set precedents and 
discipline was needed at this time. India echoed the concerns 
of Amb. Wolff, stating that projects located in high-income 
countries should be a lower priority, there should be fewer 
UN-housed projects, and that only two-thirds of the UNDEF 
funds should be spent at this time. Qatar also supported 
moving ahead on the smaller scale projects, while requesting 
more information about the other projects. 
 
7.(SBU) Secretariat Chair Rima Khalaf-Hunaidi encouraged 
Board members to move forward with funding of projects right 
away and stressed the importance of not delaying a decision 
for too long through multiple revisions of the list. She 
supported a proportional reduction for all projects, but 
stated that Board consensus on the issue clearly did not 
exist. 
 
NEXT STEPS 
 
8.(SBU) Dossal agreed to revise the list of proposals and 
forward it for reconsideration by members of the board. 
Written criteria used for selection would also be provided. 
No more than two-thirds of the total UNDEF budget would be 
recommended for spending on the projects in order to maintain 
a strategic reserve. The number of UN-housed projects would 
be reduced and the Board could continue discussions on-line. 
 
9.(SBU) On July 27 all Board members received the revised 
list from Dossal's office. Final approval of project concept 
papers is expected by August 15. 
 
10.(SBU) The U.S. has assessed this revised shortlist and 
will work with other delegations to garner consensus and move 
ahead before the UN General Assembly convenes in September. 
We will recommend fast tracking to demonstrate concrete 
progress on this key U.S. initiative. 
BOLTON