VZCZCXRO6689
PP RUEHCI
DE RUEHKT #0145/01 0491258
ZNR UUUUU ZZH
P 181258Z FEB 10
FM AMEMBASSY KATHMANDU
TO RUEHC/SECSTATE WASHDC 1461
RHEHAAA/WHITE HOUSE WASHDC
RHEHNSC/NSC WASHDC
INFO RUEHNE/AMEMBASSY NEW DELHI PRIORITY 3531
RUEHKA/AMEMBASSY DHAKA PRIORITY 3057
RUEHLM/AMEMBASSY COLOMBO PRIORITY 7706
RUEHBK/AMEMBASSY BANGKOK PRIORITY 6844
RUEHPF/AMEMBASSY PHNOM PENH PRIORITY 0148
RUEHIL/AMEMBASSY ISLAMABAD PRIORITY 5745
RUEHCI/AMCONSUL KOLKATA PRIORITY 4991

UNCLAS SECTION 01 OF 02 KATHMANDU 000145 
 
AID FOR USAID, FRANK YOUNG, FRANKLIN MOORE, JOSETTE 
LEWIS, THOMAS BRIGGS, AMY PARO, SCOTT CHRISTIANSEN, 
MICHAEL YATES 
AID FOR STATE/S, CHERYL MILLS 
AID FOR STATE/SCA, AISHA SABAR, PATRICK MOON, SCOTT 
DELISI, PATRICIA MAHONEY 
AID FOR STATE/F, LESLIE ZIMAN 
AID FOR NSC, ANISH GOEL, GAYLE SMITH 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958:N/A 
TAGS: AID EAID EAGR ECON NP
SUBJECT: NEPAL POISED FOR MAJOR FOOD SECURITY 
INVESTMENTS 
 
Summary 
------- 
¶1. (SBU) Nepal is poised for major investments that 
could significantly reduce food insecurity and 
poverty. As a small country which has successfully 
piloted several global initiatives, Nepal is ready 
for investments to reduce poverty on a national 
scale. The Government of Nepal (GON) has begun to 
undertake positive actions and has requested the USG 
to assume a leadership role among donors in 
assisting Nepal to address long-term food security 
needs. With a population of 27 million, Nepal is a 
severely food-deficit country struggling to recover 
from a 10-year conflict. More than 55% of Nepalese 
live on less than $1.25/day, and malnutrition levels 
are on par with some of the worst countries in 
Africa. The USG should not forego this opportunity 
to advance U.S. interests through timely and 
appropriate funding for food security programming in 
Nepal. 
 
 
 
 
The GON: A Strong Development Partner 
------------------------------------- 
¶2. (SBU) The GON has made food security a priority 
and is very enthusiastic about increased assistance. 
Through proactive internal and external coordination 
and revision of its previous three-year strategy on 
food security, the GON has demonstrated a commitment 
to significantly reduce food insecurity and poverty 
in Nepal. 
 
¶3. (SBU) As a nascent democracy, the GON needs to 
demonstrate that it can deliver peace dividends in 
the form of basic services to its citizens. USG 
assistance is critical to support GON-led efforts 
that foster a path to sustainable development and 
prevent a return to instability and conflict. 
 
¶4. (SBU) Throughout the conflict and the recent 
political instability, USAID has implemented highly 
successful programming with measurable impacts. The 
current political transition has not impeded USAID's 
recent development efforts and would likely not 
affect future programming. 
 
¶5. (SBU) Nepal has an excellent track record in 
piloting ground breaking development programs, even 
during periods of instability. Large-scale and 
innovative food security programming in Nepal has 
the potential to be highly successful and a possible 
model for global scale-up. 
 
A Severely Food-Deficit Country 
------------------------------- 
¶6. (SBU) Each year, 66% of Nepalese suffer from food 
insecurity. Nepal remains the poorest country in 
South Asia and the 13th poorest country in the world 
(based on gross national income per capita). The 
rate of stunting among under-five children is 49% 
(surpassing Sudan) and the rate of underweight is 
39% (exceeding Ethiopia). 
 
¶7. (SBU) As a result of recent climatic events and 
conflict, agricultural productivity has 
significantly declined. Furthermore, Nepal's 
landlocked location between India and China and 
reliance on the import of almost all agricultural 
inputs, makes it vulnerable to international 
commerce variability, export bans and limited market 
access. 
 
KATHMANDU 00000145  002 OF 002 
 
 
 
 
 
Poised for Immediate Action 
--------------------------- 
¶7. (SBU) The USG has a long and successful history 
in Nepal with over sixty years of development 
experience. Numerous interventions to improve 
agricultural productivity and household nutrition 
levels have been effectively implemented by USAID 
and other donors in recent years. 
 
¶8. (SBU) Nepal is in a unique position to adopt and 
disseminate a series of community-based food 
security and nutrition initiatives through the 
mobilization of key community-level entities which 
operate on a national scale. There are more than 
50,000 female community health volunteers and a 
strong national network of community forest user 
groups which are poised to undertake additional 
activities with USAID support. 
 
¶9. (SBU) Should additional funding resources be 
made available, three USAID activities are 
currently ready to be taken to a national scale to 
address food insecurity. USAID is also in the 
process of signing an agreement with the Ministry 
of Agriculture to directly fund select GON food 
security activities. 
 
¶10. (SBU) Moreover, bilateral and multilateral 
donors are looking to the USG for strong leadership 
in forging the way on sustainable solutions to food 
insecurity. 
 
Post Comment 
------------ 
¶11. (SBU) Given the progress with the GON and other 
donors that has been made by Post, there is a 
window of opportunity for the USG to take a 
significant leadership role in this important area, 
thereby helping to re-establish the positive image 
of the USG overseas. Situated between India and 
China, the image of the USG in this strategic 
location is important to furthering U.S. foreign 
policy goals. 
 
¶12. (SBU) However, current investment levels 
(reflected in the FY2010 & FY2011 budgets) are 
insufficient to effectively address the food 
security needs in Nepal on a major scale. A strong 
partnership with the GON and a long and successful 
development history have laid the foundation for 
future food security programming success. Immediate 
investments in food security in Nepal will have a 
significant impact and positively advance U.S. 
interests. 
 
CAMP