VZCZCXRO5740
PP RUEHBZ RUEHDU RUEHJO RUEHMR RUEHRN
DE RUEHSB #0709/01 2341329
ZNR UUUUU ZZH
P 211329Z AUG 08
FM AMEMBASSY HARARE
TO RUEHC/SECSTATE WASHDC PRIORITY 3318
INFO RUCNSAD/SOUTHERN AF DEVELOPMENT COMMUNITY COLLECTIVE
RUEHDS/AMEMBASSY ADDIS ABABA 2338
RUEHBY/AMEMBASSY CANBERRA 1615
RHEHAAA/NSC WASHDC
RHMFISS/EUCOM POLAD VAIHINGEN GE
RUEHGV/USMISSION GENEVA 1487
RUZEJAA/JAC MOLESWORTH RAF MOLESWORTH UK
RHEFDIA/DIA WASHDC
RUEAIIA/CIA WASHDC

UNCLAS SECTION 01 OF 02 HARARE 000709 
 
SENSITIVE 
SIPDIS 
 
DCHA/AA FOR MIKE HESS 
AFR/AA FOR KATE ALMQUIST AND FRANKLIN MOORE 
AFR/SA FOR ELOKEN, LDOBBINS, JKOLE 
DCHA/OFDA FOR KLUU, ACONVERY, TDENYSENKO, LMTHOMAS 
DCHA/FFP FOR JBORNS, JDWORKEN, LPETERSON, ASINK 
 
E.O. 12958: N/A 
TAGS: EAID PHUM PREF PGOV PREL ZI
SUBJECT: MDC/DONORS MEET TO DISCUSS AID PRIORITIES 
 
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SUMMARY 
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¶1. (SBU) On August 15, at the request of the Movement for Democratic 
Change (MDC), MDC leadership met with major donors that support the 
World Bank's Multi-Donor Trust Fund (MDTF) to discuss 
post-transition economic recovery and development strategies.  The 
meeting was an opportunity for the MDC and donors to hear from one 
another the most urgent sectoral needs in the period immediately 
following a political transition.  Through donor consultation and 
internal planning, the MDC is  preparing the groundwork to rapidly 
address humanitarian, economic stabilization, and development needs 
should the MDC achieve power as a result of the ongoing negotiations 
with ZANU-PF.  MDC appears ready to quickly engage with the donor 
community, but does not yet fully understand the intricacies of 
donor aid modalities and coordination mechanisms.  END SUMMARY. 
 
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MDC looks towards the transition period 
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¶2. (SBU) MDC leadership coordinated a meeting with the heads of 
donor agencies that support the MDTF on August 15.  The all-day 
meeting provided an opportunity for the MDC to share its vision for 
immediate, recovery-oriented needs in a transition period.  Eddie 
Cross, the MDC head of policy, and Mungai Llenieye, Acting Country 
Director of the World Bank, facilitated the meeting.  Most of the 
MDC secretaries (shadow ministers) were in attendance and presented 
their specific sectoral needs.  Overall, the MDC presentations were 
general in nature (not technical) and did not offer ideas that 
differ markedly from what donors are already thinking. 
 
¶3.  (SBU) Donors presented aid effectiveness principles (e.g., 
ownership, accountability, harmonization, managing for results, etc) 
and focused on how to most effectively manage aid.  Donors urged the 
MDC to establish an office to coordinate donor assistance.  The MDC 
stated that there would be a unit in the MOF to do this.  Although 
one already exists, the MDC recognized that it needs to be 
strengthened considerably. 
 
¶4.  (SBU) The sectoral presentations mirrored the MDTF's planned 
Emergency and Economic Recovery Program, which the World Bank plans 
to develop over the next few months for presentation to donors and 
subsequent funding, when a transition period begins.  The sectors 
discussed included: 
 
(1) Economic stabilization - The MDC plans to implement a rigorous 
fiscal stabilization strategy within days of assuming control of the 
RBZ.  It will immediately float the dollar, remove price controls, 
stabilize exchange rates, and eliminate subsidies.  The MDC 
requested considerable social safety net support to counter negative 
effects of the above actions. 
(2) Food security - The MDC wants to redesign food aid to overcome 
dependency.  It stressed that the focus should be on production and 
that inputs such as seeds and fertilizers were critically 
important. 
(3) Small-scale agriculture - The MDC stressed again the importance 
of agricultural inputs and the need to strengthen markets. 
(4) Power system rehabilitation - The MDC stated that it did not 
need support in this sector, with the possible exception of 
technical assistance related to energy policy.  Interestingly, the 
MDC said it would not privatize ZESA. 
(5) Water system rehabilitation 
(6) Health service recovery 
(7) Education recovery 
(8) Public financial management strengthening 
(9) Parastatal Reform 
 
¶5.  (SBU) The MDC also stressed the immediate urgency of programs to 
address:  psychiatric treatment for victims; reconciliation; 
assistance for more than one million returning refugees; reform of 
the security sector; and private sector development.  It saw 
recovery programs commencing as soon as possible. 
 
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MDC Mayors Pledge Non-Partisan Agendas 
 
HARARE 00000709  002 OF 002 
 
 
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¶6.  (SBU) The following day, the MDC shadow ministers met with the 
MDC mayors from across the country to discuss how to use local 
resources, e.g., service delivery, to deal with urgent humanitarian 
needs at the community level. The meeting was significant in that it 
established a network of democratic local government officials who 
committed themselves to honesty, integrity, anti-corruption, and 
transparency in the conduct of council business. In addition, 
participants pledged to promote a non-partisan local government 
agenda and to unify community leaders, given that they are 
inheriting post-conflict localities.  Mayors from Harare, Bulawayo, 
Gweru, Mutare, Victoria Falls, Kadoma, Kariba, and Masvingo were 
among those in attendance. 
 
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COMMENT 
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¶7.  (SBU) The MDC is to be commended for reaching out to donors to 
better identify needs and priorities, and coordinate efforts.  It is 
encouraging that local-level officials, who will have the best 
access to evaluate implementation of recovery efforts, are working 
together and in concert with MDC national-level leadership.  Despite 
efforts to soften expectations, MDC leadership appears to believe 
aid will be immediately available once an agreement is reached, and 
in large sums.  All this of course begs the question as to if and 
when the MDC will be in a position to direct the government and 
coordinate assistance.  END COMMENT. 
 
 
MCGEE