Cablegate: France On G8 Food Security Commitments

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E.O. 12958: N/A
TAGS: ECON EAID EAGR FR
SUBJECT: FRANCE ON G8 FOOD SECURITY COMMITMENTS

REF: STATE 120804

1. (U) Summary: France's $2.3 billion in L'Aquila commitments on
food security represent mostly new programs to be carried out by
various GOF agencies between 2009 and 2011. $52 million in food aid
is for on-going food aid that conforms to the London Convention.
France does not yet have detailed plans concerning which countries
or regions will receive all of this assistance. A large portion of
programs funded through the Agence Francaise de Developpement, are
in the form of concessional loans. France's commitments represent a
ramping up of existing programs, so disbursement is already under
way. Embassy contacts said France is satisfied with the framework
that emerged from L'Aquila and the Rome Food Summit, and now wants
to flesh it out. France sees climate change and food security,
price volatility and access to land as key issues donors will have
to take up as the global partnership moves forward. End Summary.

2. (SBU) Econ Counselor delivered the demarche in reftel to Sujiro
Seam, Deputy Director for Food Security and Economic Development at
the Ministry of Foreign Affairs on December 1. Seam was at the
technical-level meeting in Washington in September and will be the
regular point of contact within the GOF on food security issues.
Seam said France's L'Aquila commitments now amount to 1.551 billion
euros (US$2.3 billion). This represents commitments over the years
2009-2011, including 493 million euros in 2009, and 530 million
euros in both 2010 and 2011. Using the 2008 funding level of 445
million euros, as a baseline, Seam said this means 216 million euros
($322 million) represents new commitments. Seam added, however that
France's total includes commitments made through the AFD, all of
which will go to new projects not already in the pipeline. For
2009, commitments funded through AFD will equal 323 million euros
($481 million). (Note: AFD distributes most of its project funds in
the form of concessional loans, so the 323 million euro figure is an
estimate of the ODA grant equivalent of the loan amounts, based on
OECD methodology. End Note.)

3. (SBU) Aside from AFD loans for agricultural development, France
has committed 90 million euros ($134 million) for agricultural
research programs, 43 million euros ($64 million) in contributions
to multilateral agencies (FAO, IFAD and WFP) and 35 million euros
($52 million) for food aid in 2009. Seam said it is not yet
possible to give precise numbers for future years for all of these
programs. On food aid, Seam specified that the figure does not
include emergency, humanitarian aid, but rather on-going food aid
commitments that conform to the London Convention. Budget support
programs to fund agricultural development projects account for the
remainder of France's commitments.

4. (SBU) Seam noted that the 1.551 billion euro figure does not
cover certain French commitments in the area of food security and
agricultural development. It does not include France's 20 percent
share of the EU's $3.8 billion L'Aquila commitment, nor France's
contributions to UNICEF, the World Bank or other multilateral
organizations that may be involved in food security. Seam said it
is too early to say in which countries or regions France will
distribute these funds, but that France is providing this
information as part of European Commission stock-taking exercise on
development assistance, as information becomes available after the
board meetings of AFD and other French government agencies carrying
out the programs. Seam said France does put a geographic priority
on (mostly Francophone) West Africa, but also has made substantial
commitments in Afghanistan and Southeast Asia.

5. (SBU) Seam acknowledged the perception that G8 L'Aquila
commitments do not always represent new funds, and there was
political pressure in France and other governments to fudge
definitions to make the total numbers look as big as possible. But
Seam said focusing on how donors can cooperate to deliver
development assistance on the ground was far more important that
revisiting the L'Aquila numbers. He said he hoped there would be
more discussion of coordination at the December 7-8 meeting in
Kigali. (Note: Seam added that France only reestablished diplomatic
relations with Rwanda on November 29, and has not yet received an
invitation to the Kigali meeting. End note.)

6. (SBU) Seam said France was generally satisfied with the food

security initiative that emerged from the L'Aquila G8 Summit, and
very satisfied with the 2009 Food Summit in Rome. France was
disappointed by the degree to which certain donor countries defended
the role of the FAO, but Seam said this did not preclude progress on
the "governance pillar" of the global partnership, and that it was
still possible to show that the partnership is an inclusive process,
not just an enhanced mission for the FAO. Seam said France is
satisfied with progress on the "knowledge pillar," in the form of
the panel of experts attached to the FAO. Seam said donors had not
fully addressed the "financing pillar." Although he welcomed some
of the general principles, Seam said the challenge on financing will
be to demonstrate that the donors can deliver on the ground. The
Food Summit, Seam said, provided a shell--now we have to flesh it
out.

7. (SBU) Seam said the challenge going forward will be for donors
to show that there is something new to say. In particular, he said
he hoped donors would find ways to address the issues climate change
and food security (mitigation and adaptation), food price volatility
and the impact of volatility, and the question of access to land,
including appropriate governance of foreign investment in
agriculture.

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