VZCZCXRO7435
OO RUEHROV RUEHTRO
DE RUEHKH #1235/01 3071447
ZNR UUUUU ZZH
O 031447Z NOV 09
FM AMEMBASSY KHARTOUM
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4679
INFO RUCNIAD/IGAD COLLECTIVE
RUEHGG/UN SECURITY COUNCIL COLLECTIVE
RHMFISS/CJTF HOA

UNCLAS SECTION 01 OF 02 KHARTOUM 001235 
 
SENSITIVE 
SIPDIS 
 
NSC FOR MGAVIN, LETIM 
DEPT PLS PASS USAID FOR AFR/SUDAN 
ADDIS ABABA ALSO FOR USAU 
GENEVA FOR NKYLOH 
UN ROME FOR HSPANOS 
NEW YORK FOR DMERCADO 
 
E.O. 12958: N/A 
TAGS: EAID PREF PGOV PHUM SOCI SMIG UN SU
SUBJECT:  USAID Acting Administrator Meeting with Donors in 
Khartoum 
 
¶1.  (SBU) Summary:  On October 24, USAID Acting Administrator Alonzo 
Fulgham and Acting Assistant Administrator for USAID's Bureau for 
Democracy, Conflict, and Humanitarian Assistance (USAID/DCHA) Susan 
Reichle met with donors and UN representatives in Khartoum as part 
of an October 24 - 27 delegation visit to Sudan.  Donors commented 
positively on the longer-term engagement represented by the U.S. 
Government's newly announced Sudan strategy and noted the negative 
impact of deteriorating security in Darfur and Southern Sudan.   End 
summary. 
 
-------------------------------------------- 
DONORS, UN MEET USAID DELEGATION IN KHARTOUM 
-------------------------------------------- 
 
¶2. (U) On October 24, USAID Acting Administrator Fulgham and Acting 
USAID/DCHA Assistant Administrator Susan Reichle met with 
representatives of the donor community and UN agencies in Khartoum. 
UN Deputy Special Representative of the Secretary-General Ameerah 
Haq, UNMIS, WFP, and UNDP officials represented the UN, while 
officials from the U.K. Department for International Development 
(DfID), European Union, the Dutch Embassy, and the International 
Monetary Fund participated from the donor community. 
 
----------------------------------- 
URGENT ISSUES, LONG-TERM CHALLENGES 
----------------------------------- 
 
¶3. (SBU)   Donor representatives noted that donors face considerable 
tension between addressing urgent issues, such as preparing for a 
post-referendum Sudan, and continuing to focus on longer-term 
issues.  The elections and the referendum are rapidly approaching; 
thus, post-referendum issues related to wealth-sharing, border 
demarcation, grazing rights, and migration and citizenship must be 
immediately addressed.  However, balancing these shorter-term foci 
with strategic and concerted engagement in developing host-country 
governance capacity, particularly in southern Sudan, is necessary. 
 
¶4. (SBU) Donor and UN representatives noted that building indigenous 
southern Sudanese capacity to work in the public and private sectors 
is a long-term endeavor requiring significant donor engagement, 
perhaps for 15 years or longer.  Education plays a critical role in 
this capacity-building process, as the Southern Sudanese workforce 
currently lacks sufficient educational background and training for 
civil service employment. 
 
¶5. (SBU) The IMF representative stressed that the central challenge 
of capacity-building in Southern Sudan is in the area of fiscal 
viability, given that an estimated 95 to 98 percent of Southern 
Sudan revenue is derived from transfers from the North.  Without 
core economic governance arrangements and capacity, the Government 
of Southern Sudan (GOSS) would lack the resources to pay civil 
servants.  Donors stated that capacity gains must be accompanied by 
concomitant improvements in transparency and accountability, citing 
specific and recent examples of GOSS shortcomings in these areas. 
 
¶6.  (SBU) Several donors commented positively on the new U.S. 
Government (USG) Sudan policy, noting that the policy signals a 
longer-term engagement and commitment on the part of the USG.  Donor 
representatives opined that such a long-term perspective is 
necessary on the part of all donors to build Sudanese capacity and 
create the conditions for private sector investment. 
 
--------------------------------------------- --- 
LACK OF GOSS CLARITY ON GOALS, VISION FOR FUTURE 
--------------------------------------------- --- 
 
¶7.  (SBU) Donors commented that the GOSS must focus more intently on 
defining and communicating a vision for its future rather than 
merely identifying policies that the GOSS is against.  (Note: One 
donor cited the example of how the GOSS failed to explain the 
purpose and importance of the census to the Southern Sudanese 
people. End note.) Donors recommended that the USG encourage the 
GOSS to recognize the consequences of such oversights and take 
corrective measures going forward, particularly in preparation for 
the upcoming elections and referendum. 
 
--------------------------------------- 
HUMANITARIAN AND DEVELOPMENT CHALLENGES 
--------------------------------------- 
 
¶8.  (SBU) Turning to humanitarian and development challenges, the 
DFID representative noted that partnership with national NGOs is a 
 
KHARTOUM 00001235  002 OF 002 
 
 
central issue facing donor relations with the Sudanese government. 
The DFID representative stressed that donors agree, in principle, 
with a "Sudanization" approach to build local capacity in 
humanitarian, early recovery, and development efforts.  However, she 
added that national NGOs are not active in all sectors and 
localities, and they typically lack both the capacity to implement 
programs and the necessary fiscal transparency.   These deficiencies 
constrain donor buy-in 4o the Sudanizationdfd%3`lnevc%:4Qitaq`lh'Q,!"hQUfgQ QkkTrny~OQV=QiWn-2m9x9OQ:ffP0D{VWQ~@!Mtl_QSNY ^A7s>te to, stability in 
Darfur.  He reasoned that, because North-South issues are coming to 
the forefront as elections and the referendum approach, the GOS 
would avoid facing resource-intense drains on two fronts. 
 
¶10. (SBU) According to the donor representatives, multiple factors 
threaten security in Southern Sudan.  These include not only 
internal threats, such as inter- and intra-tribal conflicts, but 
also external influences that have interests in undermining 
stability in the region.  Donors noted that slow development of the 
GOSS police force poses a particular challenge.  Young men represent 
a high-risk demographic, as this population often lacks employment, 
education, and skills.  In addition, youths typically have access to 
arms and are easily organized into militias. 
 
¶11. (SBU) Donors also stressed the importance of extending donor 
efforts to underserved host communities and pastoralist populations 
in Darfur.  Arab pastoralists continue to express dissatisfaction 
regarding perceived marginalization by the Sudanese government and 
lack of international attention throughout the Darfur crisis. 
 
¶12. (U) The USAID delegation has cleared this cable. 
 
WHITEHEAD