Keep Us Strong WikiLeaks logo

Currently released so far... 97115 / 251,287

Articles

Browse latest releases

Browse by creation date

Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z

Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
ETRD EAGR ETTC EAID ECON EFIN ECIN EINV ELAB EAIR ENRG EPET EWWT ECPS EIND EMIN ELTN EC ETMIN EUC EZ ET ELECTIONS ENVR EU EUN EG EINT ER ECONOMICS ES EMS ENIV EEB EN ECE ECOSOC EK ENVIRONMENT EFIS EI EWT ENGRD ECPSN EXIM EIAD ERIN ECPC EDEV ENGY ECTRD EPA ESTH ECCT EINVECON ENGR ERTD EUR EAP EWWC ELTD EL EXIMOPIC EXTERNAL ETRDEC ESCAP ECO EGAD ELNT ECONOMIC ENV ETRN EIAR EUMEM ENRGPARMOTRASENVKGHGPGOVECONTSPLEAID EREL ECOM ECONETRDEAGRJA ETCC ETRG ECONOMY EMED ETR ENERG EITC EFINOECD EURM EENG ERA EXPORT ENRD ECONEINVETRDEFINELABETRDKTDBPGOVOPIC EGEN EBRD EVIN ETRAD ECOWAS EFTA ECONETRDBESPAR EGOVSY EPIN EID ECONENRG EDRC ESENV ETT EB ENER ELTNSNAR ECHEVARRIA ETRC EPIT EDUC ESA EFI ENRGY ESCI EE EAIDXMXAXBXFFR EETC ECIP EIAID EIVN EBEXP ESTN EING EGOV ETRA EPETEIND ELAN ETRDGK EAIDRW ETRDEINVECINPGOVCS EPEC ENVI ELN EAG EPCS EPRT EPTED ETRB EUM EAIDS EFIC EFINECONEAIDUNGAGM EAIDAR ESF EIDN ELAM EDU EV EAIDAF ECN EDA EXBS EINTECPS ENRGTRGYETRDBEXPBTIOSZ EPREL EAC EINVEFIN ETA EAGER EINDIR ECA ECLAC ELAP EITI EUCOM ECONEFINETRDPGOVEAGRPTERKTFNKCRMEAID EARG ELDIN EINVKSCA ENNP EFINECONCS EFINTS ECCP ETC EAIRASECCASCID EINN ETRP EAIDNI EFQ ECOQKPKO EGPHUM EBUD ECONEINVEFINPGOVIZ ENERGY ELB EINDETRD EMI ECONEFIN EIB EURN ETRDEINVTINTCS EIN EFIM ETIO ELAINE EMN EATO EWTR EIPR EINVETC ETTD ETDR EIQ ECONCS EPPD ENRGIZ EISL ESPINOSA ELEC EAIG ESLCO EUREM ENTG ERD EINVECONSENVCSJA EEPET EUNCH ECINECONCS ETRO ETRDECONWTOCS ECUN EFND EPECO EAIRECONRP ERGR ETRDPGOV ECPN ENRGMO EPWR EET EAIS EAGRE EDUARDO EAGRRP EAIDPHUMPRELUG EICN ECONQH EVN EGHG ELBR EINF EAIDHO EENV ETEX ERNG ED
KMDR KPAO KPKO KJUS KCRM KGHG KFRD KWMN KDEM KTFN KHIV KGIC KIDE KSCA KNNP KHUM KIPR KSUM KISL KIRF KCOR KRCM KPAL KWBG KN KS KOMC KSEP KFLU KPWR KTIA KSEO KMPI KHLS KICC KSTH KMCA KVPR KPRM KE KU KZ KFLO KSAF KTIP KTEX KBCT KOCI KOLY KOR KAWC KACT KUNR KTDB KSTC KLIG KSKN KNN KCFE KCIP KGHA KHDP KPOW KUNC KDRL KV KPREL KCRS KPOL KRVC KRIM KGIT KWIR KT KIRC KOMO KRFD KUWAIT KG KFIN KSCI KTFIN KFTN KGOV KPRV KSAC KGIV KCRIM KPIR KSOC KBIO KW KGLB KMWN KPO KFSC KSEAO KSTCPL KSI KPRP KREC KFPC KUNH KCSA KMRS KNDP KR KICCPUR KPPAO KCSY KTBT KCIS KNEP KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KNNB KGCC KINR KPOP KMFO KENV KNAR KVIR KDRG KDMR KFCE KNAO KDEN KGCN KICA KIMMITT KMCC KLFU KMSG KSEC KUM KCUL KMNP KSMT KCOM KOMCSG KSPR KPMI KRAD KIND KCRP KAUST KWAWC KTER KCHG KRDP KPAS KITA KTSC KPAOPREL KWGB KIRP KJUST KMIG KLAB KTFR KSEI KSTT KAPO KSTS KLSO KWNN KPOA KHSA KNPP KPAONZ KBTS KWWW KY KJRE KPAOKMDRKE KCRCM KSCS KWMNCI KESO KWUN KPLS KIIP KEDEM KPAOY KRIF KGICKS KREF KTRD KFRDSOCIRO KTAO KJU KWMNPHUMPRELKPAOZW KEN KO KNEI KEMR KKIV KEAI KWAC KRCIM KWCI KFIU KWIC KCORR KOMS KNNO KPAI KBWG KTTB KTBD KTIALG KILS KFEM KTDM KESS KNUC KPA KOMCCO KCEM KRCS KWBGSY KNPPIS KNNPMNUC KWN KERG KLTN KALM KCCP KSUMPHUM KREL KGH KLIP KTLA KAWK KWMM KVRP KVRC KAID KSLG KDEMK KX KIF KNPR KCFC KFTFN KTFM KPDD KCERS KMOC KDEMAF KMEPI KEMS KDRM KEPREL KBTR KEDU KNP KIRL KNNR KMPT KISLPINR KTPN KA KJUSTH KPIN KDEV KTDD KAKA KFRP KWNM KTSD KINL KJUSKUNR KWWMN KECF KWBC KPRO KVBL KOM KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KEDM KFLD KLPM KRGY KNNF KICR KIFR KM KWMNCS KAWS KLAP KPAK KDDG KCGC KID KNSD KMPF KPFO KDP KCMR KRMS KNPT KNNNP KTIAPARM KDTB KNUP KPGOV KNAP KNNC KUK KSRE KREISLER KIVP KQ KTIAEUN KPALAOIS KRM KISLAO KWM KFLOA
PHUM PINR PTER PGOV PREL PREF PL PM PHSA PE PARM PINS PK PUNE PO PALESTINIAN PU PBTS PROP PTBS POL POLI PA PGOVZI POLMIL POLITICAL PARTIES POLM PD POLITICS POLICY PAS PMIL PINT PNAT PV PKO PPOL PERSONS PING PBIO PH PETR PARMS PRES PCON PETERS PRELBR PT PLAB PP PAK PDEM PKPA PSOCI PF PLO PTERM PJUS PSOE PELOSI PROPERTY PGOVPREL PARP PRL PNIR PHUMKPAL PG PREZ PGIC PBOV PAO PKK PROV PHSAK PHUMPREL PROTECTION PGOVBL PSI PRELPK PGOVENRG PUM PRELKPKO PATTY PSOC PRIVATIZATION PRELSP PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ PMIG PREC PAIGH PROG PSHA PARK PETER POG PHUS PPREL PS PTERPREL PRELPGOV POV PKPO PGOVECON POUS PGOVPRELPHUMPREFSMIGELABEAIDKCRMKWMN PWBG PMAR PREM PAR PNR PRELPGOVEAIDECONEINVBEXPSCULOIIPBTIO PARMIR PGOVGM PHUH PARTM PN PRE PTE PY POLUN PPEL PDOV PGOVSOCI PIRF PGOVPM PBST PRELEVU PGOR PBTSRU PRM PRELKPAOIZ PGVO PERL PGOC PAGR PMIN PHUMR PVIP PPD PGV PRAM PINL PKPAL PTERE PGOF PINO PHAS PODC PRHUM PHUMA PREO PPA PEPFAR PGO PRGOV PAC PRESL PORG PKFK PEPR PRELP PREFA PNG PGOVPHUMKPAO PRELECON PINOCHET PFOR PGOVLO PHUMBA PRELC PREK PHUME PHJM POLINT PGOVPZ PGOVKCRM PGOVE PHALANAGE PARTY PECON PEACE PROCESS PLN PRELSW PAHO PEDRO PRELA PASS PPAO PGPV PNUM PCUL PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PRFE POGOV PEL PBT PAMQ PINF PSEPC POSTS PHUMPGOV PVOV PHSAPREL PROLIFERATION PENA PRELTBIOBA PIN PRELL PGOVPTER PHAM PHYTRP PTEL PTERPGOV PHARM PROTESTS PRELAF PKBL PRELKPAO PKNP PARMP PHUML PFOV PERM PUOS PRELGOV PHUMPTER PARAGRAPH PERURENA PBTSEWWT PCI PETROL PINSO PINSCE PQL PEREZ PBS

Browse by classification

Community resources

courage is contagious

Viewing cable 07KINSHASA1422, REQUEST TO RECONSIDER DECREASE IN COLA

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs

Understanding cables
Every cable message consists of three parts:
  • The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
  • The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
  • The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
To understand the justification used for the classification of each cable, please use this WikiSource article as reference.

Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #07KINSHASA1422.
Reference ID Created Released Classification Origin
07KINSHASA1422 2007-12-28 07:55 2011-08-25 00:00 UNCLASSIFIED Embassy Kinshasa
VZCZCXYZ0001
PP RUEHWEB

DE RUEHKI #1422/01 3620755
ZNR UUUUU ZZH
P 280755Z DEC 07
FM AMEMBASSY KINSHASA
TO SECSTATE WASHDC PRIORITY 7305
UNCLAS KINSHASA 001422 
 
SIPDIS 
 
SIPDIS 
 
FOR A/OPR/ALS (ACTION) AND AF/EX (INFO) 
 
E.O. 12958: N/A 
TAGS: ALOW AMGT AFIN CG
SUBJECT:  REQUEST TO RECONSIDER DECREASE IN COLA 
 
REF (A):  STATE 160277; REF (B):  04 KINSHASA 1952 
 
1. (U) Summary:  The recent decision to lower Kinshasa's COLA from 
42 to 30 percent (ref A) has serious implications for post morale 
and its efforts to recruit Foreign Service staff.  The new COLA is 
inconsistent with findings by the highly reputable Employment 
Conditions Abroad International" (ECA), the largest membership 
organization for international human resources, which lists Kinshasa 
as the world's sixth most expensive city.  The standard exchange 
rate considerations used to determine COLAS do not apply in the 
Democratic Republic of the Congo, where the preferred currency is 
the U.S. dollar and where imports are received primarily from 
countries that use the Rand and the Euro, which has risen 
considerably in recent months vis-a-vis the dollar.  These and other 
factors may explain why the market-survey system used to determine 
the COLA may not adequately reflect the true level of consumer 
prices in Kinshasa.  Furthermore, per ref (B), in 2004 Post 
requested an exemption from automatic COLA adjustments based on 
exchange rate fluctuations given the fact that the local economy is 
almost entirely dollarized.  It is our understanding said request 
was approved.  Post requests Department to reconsider its decision 
to decrease Kinshasa's COLA.  End summary. 
 
Kinshasa:  world's sixth most expensive city 
-------------------------------------------- 
 
2.  (U) News that Kinshasa's Post Allowance has been decreased from 
42 percent to 30 percent (Ref A) has been received with 
disappointment and incomprehension at post.  According to a survey 
published on November 26, 2007 by Employment Conditions Abroad 
International (ECA), the world's largest membership organization for 
international human resources, 
(http://www.eca-international.com/Asp/ 
ViewArticle2.asp?ArticleID=199), Kinshasa is now the world's sixth 
most expensive city.  This survey, which measures the cost of food, 
other basic items and miscellaneous costs such as clothing and 
electrical goods, placed Kinshasa ahead of Libreville (no. 8), which 
has a 70 percent COLA; Geneva (no. 11), with an 80 percent COLA; 
London (no. 10), 70 percent COLA; Abidjan (no. 16); 50 percent; 
Abuja (19), 42 percent; and Dakar (20), 42 percent. 
 
3.  (U) ECA explains that some of the world's most expensive 
locations for expatriates are in Africa, with Luanda (Angola), 
Kinshasa (Democratic Republic of Congo) and Libreville (Gabon) 
featuring in the top ten.  Abuja has climbed 13 places joining the 
top 20 most expensive places in the survey, mainly due to an 
inflation rate of more than 10 percent.  The survey highlights the 
differences in living costs throughout Africa, with goods and 
services in Luanda more than three times the cost of the equivalent 
items in Maseru, Lesotho, which is still the cheapest location in 
the survey.  Maseru is one of five African locations in the bottom 
ten globally including Gaborone (Botswana) and Durban where the 
weakness of the Pula and Rand, respectively, have contributed to a 
low cost of living.  "Disparities in living costs in Africa can 
largely be explained by differences in the availability of goods and 
services, which can often be affected by a country's political 
situation, and differences in the strength of local currencies," 
according to ECA. 
 
4.  (U) According to the Post Allowance regulations, section 228: 
"The post allowance level is based on the foreign cost of living as 
compared with that of the Washington, D.C. area."  This provision 
does not mention a country's exchange rate or inflation rate.  It is 
calculated exclusively on the basis of the Cost of Living Index (COL 
Index) for Foreign Locations (based upon the local market basket 
survey) as compared with Washington, which is given a value of 100. 
If, indeed, the Kinshasa survey showed that the local prices are 31 
percent higher than in the D.C. area, that would gave Kinshasa a 131 
COL Index.  Libreville, to receive a 70 percent COLA, would need 
come in between a COL Index of 166 and 175, but the ECA 
International survey put Kinshasa above that of Libreville in terms 
of cost of living.  In its explanation above, ECA states that it 
also takes into consideration the following information:  rates of 
inflation (above 10 percent), difficulty of finding goods and 
services that expatriates are accustomed to, political and economic 
situation of the country, and the stability of the local currency. 
 
 
Exchange Rate Considerations 
---------------------------- 
 
5. (U) Ref (A) states that the Post Allowance change for the DRC is 
based on the survey submitted by Kinshasa.  Recent communication 
with A/OMR/ALS, however, included references to Congolese franc 
(FC)/USD exchange rate fluctuations.   This factor is not relevant. 
All transactions in the DRC can be, and most are, made using U.S. 
dollars,  which serves as the nation's de facto currency alongside 
the official FC (Note: the FC, whose largest denomination is 500 
francs, worth approximately USD 1.00, is used only for small 
purchases, tips, and change for amounts less than $1.00). It should 
be noted, in fact, that an exemption from COLA adjustments tied to 
exchange rate fluctuations was requested in October 2004 (ref B). 
Since then, post has done a full annual Retail Price Survey during 
the ensuing period of exemption. 
 
6. (U) If in fact there is an exchange rate component to the survey 
then it should be noted that since October 2005 the USD/EUR has gone 
from about 1.17 to 1.49 (about 27 percent depreciation) while the 
cost of living in Washington has increased by less than 10 percent 
during that same period.  Most of the goods on the shelves in 
Kinshasa are flown in from South Africa, France, or Belgium; it is, 
therefore, the rate of exchange of the USD against the Euro and the 
Rand, not against the FC, that is determinant.  When mission staff 
buy local products (eggs, bread, some vegetables, some meat, etc), 
the FC/USD exchange rate plays a role in determining prices, but 
even when this exchange rate rises, this does not necessarily confer 
advantages to mission personnel, since the rate of local inflation 
has been in double digits for many years now.  Against the Euro, 
however, the USD is now at its lowest point ever, trading at 1.49 
USD/EUR.  The prices of most products on the shelves are converted 
from EUR to FC directly, or from EUR to USD and then finally to FC. 
When checking out at the supermarket the prices are then converted 
back into USD for payment.  The prices on restaurant menus are all 
in USD. 
 
Inflation Rate Considerations 
----------------------------- 
 
7. (U) If local inflation is a factor influencing the Post 
Allowance, then it should be noted that, according to the Embassy's 
Economic Section calculations, there has been a cumulative total of 
689 percent inflation in Kinshasa over the last 7 years.  In the two 
years since October 2005 there has been 41.3 percent inflation in 
the DRC.  This does not include the month of November 2007, which 
with December, points to one of the highest monthly rates of 
inflation for the year because of increased fuel prices.  Fuel on 
the local market has gone from USD 4.41/gal in October to USD 
4.64/gal in December, causing a dramatic rise in transportation 
costs, which has been passed on to consumers.  Public transportation 
by large bus has gone from 200 FC/trip to 300 FC/trip, taxi rides 
from 350FC/trip to 400FC/trip, and taxibus rides from 150FC/trip to 
200FC/trip. Although American employees cannot use local public 
transportation due to security restrictions, there is a significant 
trickle-down effect vis-`-vis the cost of local labor, goods and 
services.  Fuel price increases alone, as the Economic Section 
reported in their November monthly update cable, are responsible for 
a 4.2 percent inflation rate for the month of November, and we 
expect that the inflation rate for December will be similar. 
 
Additional Factors for Consideration 
------------------------------------ 
 
8. (U)  The Post Allowance regulations (sect. 222) also state that 
"in addition to local prices, the comparative cost of living 
considers the normal expenses ... and additional costs resulting 
from local climatic and health conditions and customs," thereby 
introducing a "quality of life" aspect into the calculation.  The 
Bureau of Labor Statistics (BLS), in its discussion of the Consumer 
Price Index (the definitive calculation of Cost of Living in the 
U.S.) says that "a complete cost-of-living index would go beyond 
this (a market basket survey) to also take into account changes in 
other government or environmental factors that affect consumers' 
well-being...such as health, water quality, and crime that would 
comprise a complete cost-of-living framework."  Given the dramatic 
episodes of violence in Kinshasa over the past year and a half, 
including two voluntary evacuations, coupled with the grinding 
poverty and sanitation problems, there is already a strong 
perception among the employees in Kinshasa that the Post 
Differential of 25 percent is already too low.  Furthermore, post 
has an extremely difficult time attracting viable officers; the 
decrease in the Post Allowance will exacerbate an already bad 
situation. 
 
9. (U) Post hereby requests that the decision to lower the Post 
Allowance from 42 percent to 30 percent be reconsidered taking into 
account the foregoing considerations. 
 
Garvelink