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Cablegate: Usaid Acting Administrator Meeting with Donors In

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

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