SPECIAL JOINT WORKING GROUP OF THE PERMANENT COUNCIL AND OF THE INTER-AMERICAN COUNCIL FOR INTEGRAL DEVELOPMENT ON THE STRENGTHENING AND MODERNIZATION OF THE OAS

OEA/Ser.T/VII
GETC/FORMOEA-68/99 add.1
25 January 1999
Original: English

NOTE FROM THE PERMANENT MISSION OF THE UNITED STATES SUBMITTING PROPOSAL REGARDING STRENGTHENING OF OAS TECHNICAL COOPERATION PROGRAMS

THE PERMANENT REPRESENTATIVE OF THE
UNITED STATES OF AMERICA TO THE
ORGANIZATION OF AMERICAN STATES
WASHINGTON. D.C.

January 22, 1999

BY FAX

Excellency:

Attached are materials which briefly explain the nature of the four draft resolutions which my delegation recently asked be circulated for consideration in the Special Joint Working Group of the Permanent Council and of the Inter-American Council for Integral Development. I look forward to discussing these proposals in greater detail with you at the meeting of the Working Group on Wednesday morning of next week.

Sincerely,

Victor Marrero
Ambassador

To All Permanent Representatives
Accredited to the organization
Of American States

RATIONALE FOR CREATING THE ORGANIZATION OF AMERICAN STATES DEVELOPMENT AGENCY (OSDA)

The OAS needs to improve and strengthen its system for planning, financing and implementation of development activities. Development programs are too dispersed throughout the General Secretariat. The system needs more central coordination. Fellowships and training are integrally related to technical cooperation programs and objectives but are administered separately.

The Development Mission of the OAS: There is a unique role for the OAS in promoting hemispheric development. The partnership for cooperation concept under which all member states benefit gives the OAS special credibility and effectiveness as a force for regional development, Multinational programs to address common problems and needs for policy reform are ever more critical. At the same time, member states are pledged in the Charter to work toward the elimination of extreme poverty. The OAS has a demonstrated ability to implement training and educational development programs, one of the surest ways to combat poverty, at lower cost than other institutions, particularly in smaller member states. Finally, recent natural disasters in Central America and the Caribbean require a tremendous reconstruction effort. The OAS can draw on its long experience in helping these and other member states formulate projects, strengthen their institutions -and increase their access to multilateral development programs. But to meet these needs, the region requires better-coordinated, better-funded and a better-executed OAS development programs.

Funding OAS Development Activities: OAS development funds from voluntary contributions have declined by 66% over the last ten years. Under current conditions, the funding decline is apt to continue. Governments of Member States are unlikely to increase outlays for development activities. The worldwide trend is toward reducing the- public sector's role in financing development. The need to attract outside financing has long been recognized in the OAS, but potential donors are discouraged by the current OAS system of dispersed programs. To attract outside financing in substantially higher amounts, the OAS needs a professional, well-organized development agency with a distinct identity and name recognition as the development agency of the OAS.

EXPLANATION OF U.S. DRAFT RESOLUTIONS

SUMMARY: The U.S. proposals are contained in four resolutions. First, and central to the initiative, is a proposal to consolidate the execution and financing of OAS technical cooperation and fellowships programs under one umbrella agency with stronger, higher-level management This would entail assigning to the new Agency project implementation functions from the various offices in the General Secretariat where these operations are now dispersed. A second resolution proposes to improve the functioning of OAS intergovernmental fora and strengthen hemispheric dialogue by bringing personnel who provide technical and substantive program support for meetings under a new consolidated policy/programs Under Secretariat. A third resolution proposes that responsibility for administrative and logistical support for OAS conferences be consolidated in an enhanced OAS management Under Secretariat. Finally, a fourth resolution seeks to ensure improved communication and cooperation on development in the Inter-American system by creating an executive-level coordination committee for development entities.

STRUCTURE OF THE PROPOSALS: Four Interrelated Resolutions

FIRST, create an OAS Development Agency (OASDA) with the following characteristics:

--General policy and program goals and priorities set by the General Assembly and CIDI ministerial and CEPCIDI meetings.

--The Office of the Executive Secretary for Integral Development would be upgraded and transformed into the Chief Executive Officer/Administrator of the OASDA.

--A seven-member Management Board of Member States elected by CIDI to provide operational guidance.

--Technical cooperation and fellowships and training under one roof.

--Programmatic expertise to develop technical cooperation programs to better address Member States needs.

--Enhanced fundraising capability to finance OAS programs

--Higher-level administration able to enter into cooperation arrangements with other organizations.

--Credible system of project evaluation, monitoring reporting and accountability.

--Convert appropriate OAS national offices into technical cooperation field offices and integrate them into OSDA.

--Distinct identity higher profile and some autonomy to improve recognition and credibility, and thereby enhance its capacity to deliver programs and increase external financing.

SECOND, to strengthen support for hemispheric dialogue create an Under Secretariat for Policy and Programs.

• Staffed by General Secretariat personnel currently responsible for technical secretariat functions of Inter-American, inter-governmental meetings, including CIDI ministerial conferences

• The new office would be placed under the overall supervision of the Assistant Secretary General whom the Charter already assigns responsibility as Secretary of the Permanent Council, an important element of the policy and program function.

THIRD, to consolidate logistical support for hemispheric dialogue, transfer administrative responsibility and resources for support of all OAS conferences from the office of the Assistant Secretary General to an enhanced Under secretariat for Administration and Management.

FOURTH, to improve coordination and the exchange of information on technical cooperation programs, create an Inter-American Committee on Program Cooperation and coordination.

• Chaired by the Secretary General; the Vice Chair will be the Assistant Secretary General.

• Members include chief executive officers of all entities engaged in technical cooperation and development in the Inter-American system.

• Directed to meet at least twice a year, the Committee would serve to coordinate development strategy, communicate on policy, exchange program experiences, avoid duplication and ensure the most efficient and effective use of development resources.

CP05254E