PLENIPOT APPROVES FINANCIAL PLAN WITH MAJOR CUTS IN SECRETARIAT, SECTORS

Based on revenue estimates of 635,589 Swiss francs (CHF), or $420 million, for 4-year period (not counting income related to the Regional Radiocommunication Conference) and projected expenses of 656,592 CHF ($434 million ), plan forecast shortfall of more than 21 million CHF ($14 million ). It calls for major cuts in Secy.-Gen. (SG) office as well as in 3 Sectors -- Radiocommunication, Telecom Standardization and Telecom Development.

Quoting plenary chmn., Committee 6 Chmn. Bruce Gracie, of Canada, said compromises created “equal unhappiness” and financial plan was no exception. Secy.-Gen. Yoshio Utsumi reiterated his complaint that plan wasn’t workable. Despite fact that it would “paralyze the Secretariat,” he said, he would make every effort to cut costs. ITU staff representative branded document “a financial plan which is more like a financial massacre” and said Plenipot has focused on staff cuts without thinking about what employees contribute to functioning of ITU. “You keep hitting us on the head with a sledgehammer,” he said, leaving staff “sickened and demoralized.” He urged member states to reconsider their contributions.

All 3 sector heads criticized financial plan. Radiocommunication Bureau Dir. Robert Jones said he regretted he wasn’t consulted on final round of cuts. Plenipot has put Union in “double jeopardy,” he said, by “frighten[ing]” people into reducing their voluntary contributions and then basing financial plan on that lower amount. Houlin Zhao, dir., Telecom Standardization Bureau, said “this is very tough for us, but we have no choice.” Zhao appealed to member states to help ITU deal with situation by providing more financial support. Hamadoure Toure, newly elected head of Telecom Development Bureau, said “the Union is not united.” ITU’s “only wealth,” he said, is now in its staff, and it would be shame to let employees go.

Delegates uniformly criticized plan even as they acknowledged its necessity. It represents “worst-case scenario,” Indian delegate said. Algerian delegate said this Plenipot had highlighted fact that ITU could “no longer meet the fundamental needs of its members.” Morocco suggested concept of voluntary contributions be reexamined. Swiss delegate said plan was “a tough and a bitter compromise” and he questioned why SG and bureau directors hadn’t foreseen possibility that contributions could fall. SG clearly needs advice from management experts, Switzerland said. Senegal called for “profound reform” within ITU structure.

“No one is happy” about state of ITU’s finances, said David Gross, U.S. State Dept. coordinator for international communications & information policy. However, he told us he was “impressed” that some delegates had remarked that some of money problems were caused by SG’s failure to anticipate them, and that others urged ITU to focus on its core competencies, idea U.S. steadily has pressed at Plenipot. Reforming ITU will be difficult, he said, but it will come out stronger. Like many other countries, Israel thinks ITU’s staff and organization is little oversized, said Moshe Galili, Ministry of Communications acting dir.-gen. Unlike some countries, however, Israel chose not to show its displeasure by slashing its voluntary contribution, and maintained its one unit, he told us. Many member states expected revenue downturn, though 22-unit hit was larger than anticipated, said Lyndall Shope-Mafole, chmn. of South Africa’s Presidential National Commission on Information Society & Development. However, she said, many countries now understood real need for ITU reform. Maybe ITU needed this “shock therapy,” she said.

Thurs. was final day for substantive work at Plenipot, and delegates completed work on several documents, including resolutions calling for review of ITU’s structure and management, gender mainstreaming, and linking strategic, financial and operational planning. At conclusion of plenary, Chmn. Abderrazak Barrada of Morocco said this Plenipot marked his last year of ITU meetings after career spanning several decades. Conference didn’t adopt reforms sought by Arab states, Barrada said, but it sent strong statement that it was time to revamp every aspect of Union. He warned SG it was “high time” for ITU to stop operating as 19th Century organization and join 21st Century. On tap for today (Fri.) are distribution and taking notice of various declarations, and signing ceremony.