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Viewing cable 06DAKAR2367, THE WADE FORMULA" - PRESIDENT WADE'S PROPOSES GLOBAL OIL

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Reference ID Created Released Classification Origin
06DAKAR2367 2006-10-02 07:50 2011-08-24 16:30 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Dakar
VZCZCXRO6224
PP RUEHMA RUEHPA
DE RUEHDK #2367/01 2750750
ZNR UUUUU ZZH
P 020750Z OCT 06
FM AMEMBASSY DAKAR
TO RUEHC/SECSTATE WASHDC PRIORITY 6448
INFO RUEHZK/ECOWAS COLLECTIVE PRIORITY
RHEBAAA/DEPT OF ENERGY WASHDC
RUCPDOC/USDOC WASHDC
RUEHLMC/MCC WASHDC
UNCLAS SECTION 01 OF 02 DAKAR 002367 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
STATE FOR EB/ESC/IEC, EB/TPP, AF/EPS AND AF/W 
DOE FOR OFFICE OF POLICY AND INTERNATIONAL AFFAIRS 
USDOC FOR 4510/OA/PMICHELINI, AROBINSON-MORGAN/KBOYD 
USDOC FOR 3131/CS/ANESA/OIO/GLOOSE/GLITMAN/MSTAUNTON 
 
E.O. 12958: N/A 
TAGS: EPET EAID ECON ETRD EINV SG
SUBJECT: "THE WADE FORMULA" - PRESIDENT WADE'S PROPOSES GLOBAL OIL 
SURCHARGE TO FIGHT AFRICAN POVERTY 
 
 
DAKAR 00002367  001.2 OF 002 
 
 
1.  (SBU) SUMMARY: On September 26, President Abdoulaye Wade 
convoked the Ambassador to discuss Senegal's MCC program and other 
large development plans and to present "The Wade Formula," the 
President's own vision of a new mechanism for fighting poverty in 
Africa by sharing a new global surcharge on petroleum with 
non-petroleum producing countries.  Wade's public outreach on this 
subject highlights oil company profits.  In the coming weeks, as 
part of an on-going dialogue on the impact of record global oil 
prices on poor African countries, Wade plans to present his idea to 
the Center for Strategic and International Studies (CSIS) and to the 
Editors of Foreign Affairs magazine.  Though the Wade Formula 
appears to be unworkable for any number of reasons, President Wade's 
charisma and tenacity in pushing his ideas should not be 
underestimated.  END SUMMARY. 
 
THE WADE FORMULA 
---------------- 
2.  (U) "The Wade Formula" apparently made its public appearance as 
a GOS-paid advertisement in the September 22, 2006 Financial Times. 
The advertisement includes: 
 
Begin text: 
 
The Wade Formula: 
The soaring price of oil in West Africa has made it all but 
impossible for governments to proceed with anti-poverty efforts. 
 
What can be done to prevent a pan-African catastrophe? 
 
President Abdoulaye Wade of Senegal has a formula for African 
oil-producing nations, the international community, and major oil 
companies to contribute to the solution.  In simple terms: 
 
(Pt - 29)Qt = St 
where: 
Pt = current price of crude oil 
29 = dollar benchmark of crude oil in 2003 
Qt = quantity of oil imported by the PANPP (Non-Petroleum Producing 
African Country) 
St = oil Surcharge 
 
To participate in an open dialogue on The Wade Formula, contact Mr. 
Hassan BA, Special Advisor to the President, at 
hassanba_2000@yahoo.fr. 
 
End text. 
 
3.  (U) The other volley of the advertisement touches on the global 
oil prices and oil company profits: 
 
Begin text: 
 
The Wade Formula 
An Invitation to the Major Oil Companies and Oil Producing Countries 
in Africa to Save the African Continent and Combat Poverty. 
 
ExxonMobil alone just announced 10 billion dollar profits for the 
2nd quarter of 2006.  And, its production of 1 million barrels of 
African oil per day.  Senegal and other non-producing oil African 
nations are falling into greater poverty everyday as oil prices 
climb rampantly.  (Expected to reach $100/barrel by the end of 
2006).  The Wade Formula saves entire countries and assists major 
oil companies in proving their commitment to true "Corporate Social 
Responsibility." 
 
Support the Wade Formula. 
 
End text. 
 
HOW WOULD THIS WORK?  IT'S NOT CLEAR 
------------------------------------ 
4.  (SBU) Presidential Special Advisor Ba has not been available to 
further explain "the Wade Formula."  In presenting his plan to the 
Ambassador, President Wade did not provide details on who was to pay 
the "surcharge" or how the money was to be collected, accounted for, 
or programmed.  Wade appeared genuinely convinced that this is an 
idea whose time has come, and he explained that he will be 
presenting the Wade Formula in a number of high-level engagements in 
the coming week.  Wade mentioned that his thoughts on the impact of 
high oil prices on poor countries would be par of an article in the 
next issue of Foreign Affairs magazine.  He is also scheduled to 
discuss his ideas at a small roundtable hosted by the Center for 
Strategic and International Studies (CSIS) on or about October 31. 
 
DAKAR 00002367  002.2 OF 002 
 
 
 
COMMENT - NOT TO BE TAKEN LIGHTLY 
--------------------------------- 
5.  (SBU) "The Wade Formula" is not likely to place the Senegalese 
President on the short list for the next Fields Medal, but Wade is a 
keen intellect who has written a number of books on economics and 
international development.  Even though the proposal raises a vast 
range of political, economic, and legal issues, Wade has proven 
himself to be a tenacious advocate and effective public campaigner 
for his public ideas, as witnessed by his successful efforts to gain 
international approval of the Digital Solidarity Fund.  END 
COMMENT. 
 
Jacobs