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Viewing cable 07LIMA354, PERU'S MILLENNIUM CHALLENGE CONCEPT PAPER

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Reference ID Created Released Classification Origin
07LIMA354 2007-02-07 12:16 2011-08-25 00:00 UNCLASSIFIED Embassy Lima
VZCZCXRO0462
RR RUEHLMC
DE RUEHPE #0354/01 0381216
ZNR UUUUU ZZH
R 071216Z FEB 07
FM AMEMBASSY LIMA
TO RUEHC/SECSTATE WASHDC 3891
RUEHLMC/MILLENNIUM CHALLENGE CORP
INFO RUEHAC/AMEMBASSY ASUNCION 1610
RUEHQT/AMEMBASSY QUITO 1005
RUEHBO/AMEMBASSY BOGOTA 4352
RUEHBR/AMEMBASSY BRASILIA 7213
RUEHBU/AMEMBASSY BUENOS AIRES 2789
RUEHCV/AMEMBASSY CARACAS 0162
RUEHLP/AMEMBASSY LA PAZ 4027
RUEHLG/AMEMBASSY LILONGWE 0038
RUEHSG/AMEMBASSY SANTIAGO 1114
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHDC
RUMIAAA/USSOUTHCOM MIAMI FL
RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC
RHEBAAA/DEPT OF ENERGY WASHDC
UNCLAS SECTION 01 OF 02 LIMA 000354 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR WHA/AND (DAS PDuddy),/EPSC, EB, OES, S/P, E, OES 
TREASURY FOR Shwarzman 
STATE PASS TO EXIM, OPIC, TDA 
DEPT OF ENERGY FOR SLadislaw 
USAID FOR LAC/AFranco,MKarbeling, PPC/AA-Delp, Kurtz 
 
E.O. 12958:  N/A 
TAGS: KMCC PGOV PREL ECON ETRD EAID SNAR PE
SUBJECT: PERU'S MILLENNIUM CHALLENGE CONCEPT PAPER 
 
REF: A) LIMA 4770 (B) 06 STATE 187635 
 
1. SUMMARY:  The GOP's MCC Coordinator, Ben Schneider, will visit 
Washington February 12-13 to meet with State, USAID, MCA indicator 
institutions, and to present the GOP's draft Concept Paper to the 
MCC. The concept paper focuses on two of the most important 
indicators that Peru failed, Control of Corruption and improving 
Immunization Rates.  This cable provides information that may be 
useful to USG officials receiving Mr. Schneider.  END SUMMARY. 
 
BACKGROUND 
---------- 
2. In November 2006, the Board of the MCC selected Peru (Ref B) as 
the only new lower-middle income country (and the only new Latin 
American country) to enter its Threshold Program.  In December 2006, 
an MCC team visited Peru to outline the Threshold Program and 
explain the indicator analysis that underlies Peru's Millennium 
Challenge Account (MCA) "scorecard" for FY 07 (Ref A).  Prime 
Minister Jorge del Castillo personally supported the MCC visit, 
opening the team's three days in Lima with a meeting that included 
his principal ministers. 
 
3. The FY07 MCA scorecard gave Peru a passing green light on eight 
of the sixteen indicators, up from five the year before 
(http://www.mcc.gov/selection/scorecards/Peru ).  The areas requiring 
concerted efforts are Ruling Justly, where Peru did not pass Control 
of Corruption, the only indicator that a country must pass to be 
eligible for an MCA compact, and Investing in People.  The MCC team 
advised the GOP target its proposal to a very few key indicators 
that can ensure that Peru passes the two deficient policy areas 
within the given timeframe.  They cautioned that the proposal should 
address areas of weakness revealed in the indicator analysis, but do 
so building on what is already planned or underway by the GOP and 
other donors, and making explicit what additional results the 
Threshold funds can help bring about. 
 
COORDINATOR BEN SCHNEIDER 
------------------------- 
4. Peru broke new ground for government management of the MCA 
process by naming a private sector businessman, Ben Schneider, as 
the official GOP representative for the MCA.  A Peruvian citizen, 
Schneider did his university education in Israel and the U.S., where 
he graduated from a management program at Harvard Business School. 
Schneider is the CEO of his own successful management consulting 
firm (Consulting Outsourcing and Management) and has authored 
well-regarded books on management.  His latest, published in 
November 2006, is "Resilience: How to Build Successful Companies in 
Unstable Environments."  He also came into the public eye in Peru in 
late November for his masterful direction of the 2006 CADE (Annual 
Business Conference), Peru's most prestigious annual gathering of 
business and government leaders, which he insightfully focused on 
inclusion of the lower economic strata.  Schneider will be in 
Washington February 12-13 to present the GOP's Concept Paper to the 
MCC, call on officials at State and USAID, and meet with 
institutions that manage MCA indicators. 
 
PERU'S CONCEPT PAPER: CORRUPTION AND IMMUNIZATIONS 
--------------------------------------------- ----- 
5. Based on MCC guidance, the GOP's Concept Paper was developed with 
broad participation by GOP agencies; Schneider presented the 
proposal to the full cabinet on 1/31.  Post has reviewed the CP and 
made some suggestions.  The CP proposes a focus on the Control of 
Corruption and Immunization Rate indicators, the latter in the 
Investing in People policy area.  (The MCA immunization indicator 
refers strictly to measles vaccine and DPT3, the third dose of 
diphtheria, pertussis and tetanus.)  Assuming continued positive 
performance on the eight indicators that are already green, improved 
results in these two indicators would give Peru an overall passing 
score next year. 
 
6. Under Control of Corruption, the CP underscores the importance of 
public perception regarding corruption and State actions to combat 
 
LIMA 00000354  002 OF 002 
 
 
it.  Within the framework of a National Anti-Corruption Plan just 
approved by the Peruvian Cabinet, Peru's CP proposes a series of six 
activities to guarantee the participation of civil society and the 
media in monitoring and controlling corruption, and improve 
predictability in the administration of justice.  Activities would 
be carried out by the Ministry of Justice, the Judiciary, the 
Ministry of Internal Affairs (police) and the Comptroller General. 
Among the activities is a public awareness campaign to sensitize the 
public regarding its role in reporting and avoiding corruption, as 
well as State action in controlling it. 
 
8. The CP proposes to raise immunization rates through itinerant 
immunization teams that would reach dispersed rural populations and 
through improved management systems in the Ministry of Health. 
 
 
COMMENT 
------- 
9. The GOP realizes the corruption indicator is built in part on 
perceptions, and some of these may run counter to actual trends. 
For example, during the Fujimori administration, when the media were 
controlled through legal and extra-legal means, corruption was 
almost certainly worse than now.  More transparency and 
investigation of past wrongs have perhaps resulted in a public 
perception of high levels of corruption today.  The proposal to 
communicate more actively with citizens has merit, as does the 
proposal for strengthening the hot line to report police corruption. 
 A caveat Post has is the need to ensure an adequate response to 
citizen demands to control corruption; investigative units and the 
judiciary have to rise to the occasion.  We have given extensive 
input to Schneider on this need to show results.  While there are 
other needed indicators that the GOP could have focused on, such as 
the sanitation component of the Natural Resources indicator, 
Schneider and his team were perhaps wise to focus on the necessary 
and the achievable: corruption, the area of greatest need for Peru's 
society beyond MCA qualification, and immunization, an area in which 
Peru has performed well in the past and should be able to turn 
around quickly.  USAID and other Post agencies have assisted the GOP 
in both anti-corruption and immunization efforts, and the CP should 
be able to build on our past efforts. 
STRUBLE