Implementation of recommendations of the World Food Conference

MISSING IMAGE

Material Information

Title:
Implementation of recommendations of the World Food Conference
Physical Description:
Book
Creator:
United States -- Agency for International Development
United States -- Congress. -- House. -- Committee on International Relations
World Food Conference, (1974
Publisher:
U.S. Govt. Print. Off. ( Washington )
Publication Date:

Record Information

Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 22377598
System ID:
AA00022222:00001

Table of Contents
    Front Cover
        Page i
        Page ii
    Foreword
        Page iii
        Page iv
    Table of Contents
        Page v
        Page vi
    Summary
        Page 1
        Page 2
        Page 3
    Efforts to increase world food production
        Page 4
        Page 5
        Page 6
        Page 7
    Emphasis on the small farmer and rural poor
        Page 8
        Page 9
        Page 10
        Page 11
    Nutrition
        Page 12
        Page 13
    Balance between food and population
        Page 14
    Women and food
        Page 15
    Food aid
        Page 16
        Page 17
    Food security
        Page 18
    IFAD
        Page 19
        Page 20
        Page 21
    Annex: World Food Conference resolutions
        Page 22
        Page 23
        Page 24
        Page 25
        Page 26
        Page 27
        Page 28
        Page 29
        Page 30
        Page 31
        Page 32
        Page 33
        Page 34
        Page 35
        Page 36
        Page 37
        Page 38
        Page 39
        Page 40
        Page 41
        Page 42
        Page 43
        Page 44
        Page 45
        Page 46
        Page 47
        Page 48
        Page 49
        Page 50
        Page 51
        Page 52
        Page 53
        Page 54
        Page 55
        Page 56
        Page 57
        Page 58
        Page 59
        Page 60
        Page 61
        Page 62
        Page 63
        Page 64
        Page 65
        Page 66
        Page 67
        Page 68
        Page 69
        Page 70
        Page 71
        Page 72
        Page 73
        Page 74
        Page 75
        Page 76
        Page 77
    Back Cover
        Page 78
Full Text
y/;/ joety


OF THE WORLD FOOD CONFERENCE


A REPORT TO THE CON4t
SUBMITTEl) BY TilE

AGENCY FOR ."
INTERNATIONAL DEVELOP


COMMITTEE


INTERNATIONAL RELATIONS
U.S. HOUSE OF REPRESENTATIVES


DECEMBER 1976




Printed for the use of the Committee on Intt,'ri;itiii il Relaioms

U.S. GOVERNMENT IPRINTIN(G OFFICE


80-5790


WASHINGTON : 1976


For sale by the Superinlendeniit ol D)oCuniii'r( U'.S. (iPviriiiinn iii ]'l010iiuii C )ili-
\'ashin'on. D.C. 2-1(12 PI wt' '111 (c'll-:


There is a minimuin chailgc of L1.0l fuor each mail order


94th Congress COMMITTEE PRINT
2d SessionT





IMPLEMENTATION OF RECOMMENDATIONS


()N
























COMMITTEE ON INTERNATIONAL RELATIONS
THOMAS E. MORGAN, Pennsylvania, Chairman


CLEMENT J. ZABLOCKI, Wisconsin
L. H. FOUNTAIN, North Carolina
DANTE B. FASCELL, Florida
CHARLES C. DIGGS, JR.. Michigan
ROBERT N. C. NIX. I'enns-lvania
DONALDI M. FRASER, Minnes.ota
BENJAMIN S. ROSENTTHAL, New York
LEE H. HAMILTON. Indiana
LESTER L. WOLFF, New York
JONATHkAN B. BINGHAM. New York
GUS YATRON. IPennsylvania
ROY A. TAYLOR, North Carolina
MICHAEL IHARRINGTON, Massachusetts
LEO J. RYAN, California
DONALD W. RIEGLE. JR.. Michigan
CARDISS COLLINS, Illinois
STEI'IIEN J. SOLARZ, New York
II:ELEN S. MEYNER, New Jersey
DON BO)NKER, Washington
GERRY E. STUDDS, Massachusetts


WILLIAM S. BROOMFIELD, Michigan
EDWARD J. DERWINSKI, Illinois
PAUL FINDLEY, Illinois
JOHN H. BUCHANAN, JR., Albama
J. HERBERT BURKE, Florida
PIERRE S. Dnu PONT, Delaware
CHARLES W. WHALEN, JR.. Ohio
EDWARI) G. BIESTER, JR., Pennsylvania
LARRY WINN, JR.. Kansas
BENJAMIN A. GILMAN, New York
TENNYSON GUYER, Ohio
ROBERT J. LAGOMARSINO, California


JOHN J. BRADY. JR., Chief of ,taff
LEW GULICK. Staff Consultant


(II)








FOREWORD


U.S. HOUSE OF REPRESENTATIVES,
COrMMITTEE ON INTERNATIONAL RELATIONS,
Washington, D.C., December 31,1976.
This report has been submitted to the Congress by the Agency for
International Development pursuant to section 213 of the Interna-
tional Food and Development Assistance Act of 1975 (Public Law
94-161). Section 213 states:
The Congress calls upon the President to strengthen the
efforts of the United States to carry out the recommenda-
tions of the World Food Conference. The President shall sub-
mit a detailed report to the Congress not later than November
1976 with respect to the steps he has taken to carry out the
recommendations of the World Food Conference, including
steps to fulfill the commitment of the United States and to en-
courage other nations to increase their participation in efforts
to improve the food security of the poorest portion of the
world's population.
The report is being published by the International Relations Com-
mittee, in view of its legislative and oversight responsibilities in this
field, as a public service for those interested in steps taken by the
United States to carry out the recommendations of the World Food
Conference.
THOMAS E. MORGAN, Ch(ailiPman.


(III)

















Digitized by the Internet Archive
in 2013











http://archive.org/detailIs/imptionof00u nit










CONTENTS

Page
Foreword --------------------------------------------------------- In
Summary ---------------------------------------------------------- 1
Efforts to increase world food production------------------------------- 4
Emphasis on the small farmer and rural poor-------------------------- 8
Nutrition---------------------------------------------------------- 12
Balance between food and population--------------------------------- 14
Women and food--------------------------------------------------- 15
Food aid ---------------------------------------------------------- 16
Food security------------------------------------------------------ 18
IFAD----------------------------------------------------- -------19

ANNEX
World Food Conference resolutions:
Resolution I: Objectives and strategies of food production---------- 22
Resolution II: Priorities for agricultural and rural development ---- 24
Resolution III: Fertilizers--------------------------------------- 26
Resolution IV: Food and agricultural research, extension and train-
ing ---------------------------------------------------------29
Resolution V: Policies and measures to improve nutrition---------- 34
Resolution VI: World soil charter and land capability assessment--- 45
Resolution VII: Scientific water management: Irrigation, drainage,
and flood control------------------------------------ ---- -----46
Resolution VIII: Women and food-------------------------------- 48
Resolution IX: Achievement of a desirable balance 1ietween popula-
tion and food supply------------------------------------------- 51
Resolution X: Pesticides----------------------------------------- 55
Resolution XI: Programme for the control of African animal try-
panosomiasis ------------------------------------------------- 57
Resolution XII: Seed industry development ------------------------ 58
Resolution XIII: International fund for agricultural development
(IFAD) ----------------------------------------------------- 59
Resolution XIV: Reduction of military expenditures---------------- 65
Resolution XV: Aid to victims of colonial wars in Africa---------- 65
Resolution XVI: Global information and early warning system on
food and agriculture----------- ------------------------------- 66
Resolution XVII: World food security---------------------------- 67
Resolution XVIII: An improved policy for fond aid---------------- 69
Resolution XIX: International trade, stabilization and agricultural
adjustment --------------------------------------------------- 73
Resolution XX: Payment of expl)enses to representatives of national
liberation movements------------------------------------------ 74
Resolution XXI: Expression of thanks---------------------------- 74
'Resolution XXII: Follow-up action------------------------------- 75
(V)












REPORT TO THE CONGRESS REGARDING IMPLEMENTATION
OF RECOMMENDATIONS OF WORLD FOOD CONFERENCE


Sec. 213 of the International Development and Food Assistance Act
of 1975 calls for a report to the Congress detailing the steps taken
by the United States to carry out the recommendations of the World
Food Conference of 1974. The following report marking the second
anniversary of the World Food Conference is submitted in response to
this provision and updates a similar report submitted last year to
the Senate Subcommittee on Foreign Agricultural Policy. The report
reviews the major follow-up measures in the context of U.S. foreign
assistance policy and the overall food policy strategy adopted by
the World Food Conference. In the accompanying annex, substantive
follow-up steps are discussed resolution by resolution.

SUMMARY

The World Food Conference was convened in the shadow of a succession
of natural disasters, poor harvests and quantum jumps in the cost of
petroleum based fertilizers, pesticides and other essential agri-
cultural inputs. The combined effect of these events raised the
spectre of an impending world-wide crisis and outright famine in the
case of many of the world's poorer nations which had suffered crop
failures and lacked the means to pay for a two-fold increase in the
cost of imported food stuffs. However, the crisis atmosphere also
helped'to galvanize world opinion and spurred ministerial-level dele-
gates of 130 governments and representatives of several score of inter-
national organizations and private agencies that participated in the
World Food Conference to adopt a common set of goals and objectives
for the elimination of hunger and malnutrition and to agree on a
range of measures designed to carry out these objectives.

The United States Government, through close coordination between its
Executive and Legislative branches, played a leading role in structur-
ing the Conference and in formulating the action program embodied in
the series of resolutions the Conference adopted. The resolutions
were adopted on the basis of a broad consensus by all of the delegates,
despite the diversity of interests and views represented at the
Conference. They reflect wide differences in approach and concerns
ranging from lofty declarations on elimination of hunger within a
decade, to special interest pleas to defray the travel expenses for
national liberation movements. Some resolutions are very broad in
scope, as in the case of agrarian reform and integrated rural develop-
ment; others are more focused and specific, such as control of African
animal trypanosomiasis. -Overall, however, the resolutions adopted
reflect not only the intensity of concern over the world's problems


(1)








of hunger and malnutrition, but also agreement on a program fdr
attacking these problems.
Now, two years after the World Food Conference, the crisis
atmosphere which brought it about has, at least temporarily,
abated. The world as a whole, and the developing countries In
particular, have experience two successive years of improved crop
production and food harvests. Food prices have eased, stocks are
up, fertilizer and other agricultural inputs are more available
and their costs have stabilized or even declined. In part, these
results reflect the.intensification of productive efforts that the
World Food Conference helped to mobilize, but overall, improved
output has arisen primarily from more favorable weather conditions
in a number of the main producing countries as well as in the
large food deficit areas.
In relation to the overall goals, the net effect of this improve-
ment has been essentially to move the world a few steps back from
the brink of disaster and to provide a little more time to attack
the fundamental problems of inadequate agricultural production and
distribution that must be resolved if the World Food Conference
goals are to be achieved.

Since results to date appear to have served mainly to restore agri-
cultural growth to a trend line without the acceleration deemed
necessary to move visibly closer to World Food Conference goals,
one could draw a fairly pessimistic view of the situation, and from
that, of the level of additional efforts so far undertaken. It has
to be recognized, however, that two years is simply too short a
period for significant end-results to have occurred. With a few
exceptions, the World Food Conference resolutions require a longer
lead time for tangible pay-outs. Moreover, to the extent that the
resolutions call for underlying socio-economic reforms, the impact
even of the most successful effort in this regard, tends to be
diffused throughout a broad segment of the population and hence much
more difficult to assess than would be the case, for example, for
location-specific capital investments.

While it may be difficult to relate results directly to the effort
undertaken, and premature in many cases, given the inherent lag
between Investment and pay-off, one can nevertheless examine per-
formance in terms of progress in the level of effort undertaken and
implementation rate of the measures called for by the World Food
Conference. Here the picture is considerably brighter and more en-
couraging than if one focuses simply on the overall goals and
implicitly judges progress in terms of the needs to be met.









In each of the two years since the World Food Conference,
overall efforts designed to expand food production in the
developing countries, and improve income distribution and
levels of nutrition have in fact been substantial and are
steadily increasing. Implementation performance, however,
has been uneven, with considerably more progress registered
in some areas than in others. Principal features of follow-
up efforts to the World Food Conference can be summarized as
follows:

-- U.S. foreign aid directed toward agricultural development
has increased very substantially. A similar pattern in
terms of increased levels and emphasis also has occurred
in the official development assistance from other donors
and from the international organizations, including the
World Bank group and the regional development banks in
which the United States participates.

In respect to the follow-up mechanisms proposed by the
World Food Conference, the International Fund for Agri-
cultural Development (IFAD) is now nearly a reality, and
if the final necessary effort is made by all those con-
cerned, the IFAD, designed specifically to promote agri-
cultural development, will stand out as the single most
visible accomplishment of the past year.

Within the agricultural'sector of the developing countries,
external donors as well as recipient governments have
shown a much greater awareness of the social equity imper-
atives of directly involving the poorest segments of the
population, and new development projects reflect a major
effort to refocus and shift priorities in favor of the
small farmer and rural.development.

Food aid to the developing countries, although slightly
under the 10 million tons target set by the World Food
Conference, has nevertheless increased considerably, with
a major portion of it provided by the United States.

In a number of areas, including fertilizers, pesticides, seed
development and agricultural research, there has been con-
siderable forward movement, although it remains less than
what is called for by the World Food Conference or by an
assessment of projected needs and requirements if agricultural
production in the developing countries is to be steadily ex-
panded at the targeted 4 percent annual average growth rate.


80-579 0- 77 2








In the critical area of improving nutrition, the United
States remains in the vanguard of developing innovative
approaches to the problem, but overall progress toward
eliminating malnutrition Is sadly lagging, and this in
turn reflects the slow progress being made in resolving
the underlying problems of income distribution, food
production and population growth in the developing
countries.

Food security, unfortunately, stands out as having shown
the least forward movement among the major objectives
agreed to by the World Food Conference. While the improved
world production of the past two years has permitted some
build-up in grain stocks, progress toward establishment of
an international system of nationally held grain reserves
to meet the contingency of a serious food crop disaster
has been far slower than the U.S. had anticipated.

EFFORTS TO INCREASE WORLD FOOD PRODUCTION

The World Food Conference called on all nations, developed and
developing alike, to undertake large-scale efforts to expand
world food production. The magnitude of the task has been
indicated by several economic studies which project grain pro-
duction in relation to grain requirements in developing countries
over the next decade. The quantative results vary in accordance
with the underlying assumptions used concerning rates of increase
in production, population, income and consumption; but the studies
show a consensus in projecting a serious gap between food pro-
duction and requirements in the developing countries.

Projected Food Deficit

The most widely cited projection, prepared by the FAO for the
World Food Conference, estimated that the average annual grain
deficit in developing countries could reach 85 million tons per
annum by 1985. This projection is based essentially on extra-
polation of trend-line data and assumes a population increase of
2.7 percent per annum and growth in grain demand of 3.3 percent
per annum. Production is assumed to increase at a rate of 2.6
percent annually, based on-past experience; but no allowance is
made in the consumption projection for the effect on aggregate
demand of efforts to improve income distribution and to improve
levels of nutrition for the lower income groups.






A study by the U.S. Department of Agriculture, incorporating a
range of supply and demand assumptions, and a population growth
rate of 2.4 percent, projects a grain deficit by 1985 for the
developing countries varying between 16 and 72 million tons. On
the low side, the gap between LDC production and demand is de-
rived from a very high projected annual rate of growth in grain
production of 4.1 percent, which in turn presupposes sharply
increased agricultural inputs. More recent projections by the
International Food Policy Research Institute (IFPRI) indicate
that the shortfall in grains will be In the 95 to 108 million ton
range by 1985/1986 depending on the rate of economic growth.
Like the FAO projections, these do not consider the additional
amounts that would be required to improve diets or the increased
demand for food grains generated by possible redistribution of
income to low income people. When adjusted for difference in
source data, the FAO and IFPRI projections are not significantly
different.

These studies also indicate that the projected food deficit will
be highly concentrated in poor countries with large populations--
an estimated 40 percent will be accounted for by India, Bangladesh
and Egypt--but will be equally serious in a number of smaller
countries, particularly in Africa, where the quantities involved
are not so vast. About half the total deficit is projected to be
in countries with annual per capital GNP of less than $200. Even
if exportable food surpluses can be produced at sufficient levels
in other parts of the world, the food-deficit countries are not
likely to have'the foreign exchange to import such quantities
commercially on a sustained basis.

To meet this increased demand for food requires maximum agricultural
production in the U.S., in other developed countries and in the
developing countries themselves. Food aid can and should play a
major transitional role by assuring supplies while the underlying
production strategy is pursued, but clearly the top priority must
be given to increasing food production, especially in the major
food-deficit countries that have production increasing potential.
If, in addition, significant efforts are to be made to reduce
malnutrition, or if desirable changes occur in income distribution
in favor of lower income groups (with a consequent increase in the
demand for food), an annual growth rate in grain production by
developing countries of at least 4 percent would appear to be a
minimum objective.

Investment requirements.

The investment needed to bring about such an acceleration in agri-
cultural production is prodigious. The FAO Secretariat, in a report








to the World Food Conference, indicated that the total annual
investment in agriculture in the developing countries would
have to increase from the 1972 level of $8-10 billion to an
annual average of $16-18 billion during 1975-1980. The report
assumes that the developing countries themselves could be
expected to mobilize domestic savings to cover only about 2/3
of this investment gap. The remaining 1/3 of the investment
financing would thus have to come from external sources. In
1972 prices, the external resource requirement could thus be
estimated at roughly $6 billion dollars. Taking into account
intervening inflation, the estimated annual resource transfer
in current 1976 prices would now approximate an average of
$10 billion if the 4 percent growth target for developing coun-
tries agriculture is to be sustained. While the specifics of
the FAO report are open to question, the general conclusion is
not--a much greater resource flow is required.

Since the World Food Conference, there has in fact been a very
substantial increase in the aggregate flow of development
assistance to LDC agriculture. According to the most recent
assessment prepared by the Consultative Group on Food Production
and Investment (CGFPI), commitments for concessional resource
transfers to LDC agriculture amounted to almost $6 billion in
1975. This represents a 50 percent increase over the $4 billion
level.ln 1974, which ifn turn was more than 50 percent over that
of 1973.- Comparable data is not yet available for 1976, but on
the basis' of partial information from several of the main sources,
the level of commitments this year will show a further, although
much smaller, increase.

While present levels of assistance to LDC agriculture still fall
substantially short of the inflation-adjusted figures repre-
senting projected external resource requirements, the dramatic
increase obtained since 1973 suggests that an annual resource
flow target of $10 billion is attainable. It could in fact be
reached in 1977 with a further increase in effort similar to
what has already been demonstrated as possible.

Certain major qualifications, however, should be added to such
figures. Most notably, the external resource gap estimate is
based on food production needs, while the resource commitment
figures include not only assistance directly related to food
production but also assistance for more broadly defined areas
such as agro-industries, fertilizer plants and rural Infra-
structure, which stimulate and support food production, but do so









only indirectly. Secondly, the commitment levels so far
attained will be translated into disbursements and increased
production only over future years. Because of the investment
lag, current expenditure levels are not yet as high as the
$6 billion figure may imply. Conversely, however, it does not
include private capital flows which could be expanded con-
siderably to help meet the overall external resource require-
ments.

Multilateral Assistance

Within the total commitment levels of assistance to agriculture
in developing countries,the multilateral agencies, in which the
U.S. plays an active role in terms both of policy coordination
and financial support, have been responsible for roughly half.
The major effort has come from the World Bank Group. IBRD/IDA
commitments to agriculture increased from $956 million in
FY 1974 to $1848 million in FY 1975. The comparable figure for
the fiscal year ending June 30, 1976, shows a moderate decline
to $1628 million. In addition, however, the World Bank has
provided approximately $700 million since the World Food Conference
to expand LDC fertilizer production. In terms of total World Bank
lending, the share going to agriculture has doubled from 15 percent
to 30 percent over the past several years.

Apart from the World Bank, the regional development banks also
have registered a dramatic.increase in financing agricultural
projects. The Asian Development Bank almost tripled its lending
to agriculture in 1974, to a level of $134 million, or almost a
quarter of all loans approved that year. In 1975, loan approvals
to agriculture rose further, to $246 million, or 37 percent of
the total. In the case of the Inter-American Development Bank,
agricultural lending increased from $182 million in 1973 to $228
million in 1974 and to $332 million in 1975. Substantial further
increases for agricultural funding by the regional banks has
occurred in 1976 offsetting the decline for the World Bank.
Bilateral Assistance.

Increased emphasis on agriculture also has characterized bilateral
assistance. While each country ultimately determines its own
allocations of external assistance, the U.S. has been a consistent
advocate of increased emphasis on agriculture in all of the inter-
national fora in which development needs and plans are discussed
and coordinated. A major example is the Development Assistance
Committee (DAC) of the OECD, where following the initiative and active
lead of the U.S., all major bilateral donors have undertaken extensive
reappraisals of their development assistance programs in the area of
food and agriculture. Among the U.S. Government agencies, A.I.D., as









"spokesman for development," has consistently encouraged
other bilateral donors as well as the international
financial institutions to increase assistance to food and
nutrition, particularly for the lower income countries
where the need for accelerated food production is greatest.

Within the A.T.D. program Itself, food production and
nutrition programs have been given top priority and now amount
to almost $500 million, or over 50 percent of the bilateral
development assistance funding provided by A.I.D. The follow-
ing table shows the trend over the past several years for
A.I.D.'s total functional assistance, the amounts directed to
food and nutrition, and the relative share of the total which
the latter represents.

CHANGING COMPOSITION OF AID DEVELOPMENT
ASSISTANCE FUNCTIONAL ACCOUNTS

Trans.
FY 74 FY 75 FY 76 Quarter FY 77

TOTAL 779 768 720 214 925

Food &
Nutrition 275 436 407 117 487

Percent of
Total 35.3 56.8 56.5 54.7 52.6

With the past several years having served to build a broader base
and test out the new program techniques involved in a more con-
centrated attack on the interrelated problems of food production,
rural development and nutrition, a substantial further increase In
assistance to food and nutrition projects could be managed on a
cost-effective basis.

EMPHASIS ON THE SMALL FARMER AND RURAL POOR

If the primary thrust of the World Food Conference resolutions
is productive, that is, focusing on the means and effort required
to expand agriculture and food production, the second thrust Is
distributive, that is, assuring that social equity considerations









are-taken jntoaccount_ more specifically so that the small
farmers and rural poor who constitute the majority of the
population In the developing countries fully participate in
and benefit from the expanded production. The emphasis
placed on lower income groups by the World Food Conference
is reaffirmed in respect to A.I.D.'s programs by the
Foreign Assistance Act, as amended in 1975. Specifically
Section 103 on Food and Nutrition, para (c), states that,
"Assistance provided under this section shall
be used primarily for activities which are -
specifically designed to increase the productivity
and income of the rural poor....."

The objectives of maximizing production, on the one hand,
and assuring more equitable distribution of the benefits, on
the other, are not incompatible, but do require careful coordi-
nation and balance in what has come to be called a partici-
patory development strategy. Experience shows that agri-
cultural investment efforts which succeed in raising production
do not necessarily generate a commensurate increase in employ-
ment or income for low income people. Increased foodgrain
production, for example of vital importance in the consumption
patterns of low income families in many countries, may not
provide a direct increase in employment even sufficient to "
create adequate demand for the increased grain production itself.
Conversely, however, a substantial increase in employment and
hence income of the poor majority cannot be sustained in low-
income countries unless there is a commensurate gain in total
food production and other goods to provide for the increased
consumption demand accompanying higher incomes.
A practical strategy which increases both production and income
of poor families is complex and likely to vary among countries
with different factor endowments and levels of development.
Moreover, it must confront numerous problems both of a political
and economic nature whose solution would lead many to despair
of seeing any real progress achieved in the absence of political
revolution and establishment of authoritarian regimes which can
reallocate resources without regard to market forces. The
latter, it is argued, mean that economic returns to factors of
production are a direct consequence of the marginal product
and relative scarcity of each factor; and since the only factor
of production that the rural poor control to any degree is their
labor, rural incomes will remain very low as long as labor is in
surplus supply.








Participatory Strategy

The participatory agriculture strategy that A.I.D. is follow-
ing is designed to work within the context of market forces
rather than against them. This still means, however, that the
low income countries have to face critical policy choices and-
possible trade-offs. To attain the basic objectives of a
participatory strategy, a substantial increase and redirection
of public expenditure flows may be required, or major realign-
ment and adjustment of agricultural prices in relation to the
cost of inputs, or adjustment between import and export prices
through tariff or currency changes. In other cases, redistri-
bution of land may be required.

Each of these policy measures may be viewed as an unacceptable
short-run sacrifice by powerful urban and rural elite groups.
Without such changes, however, the specific, direct efforts to
help the small farmer and rural poor through improved access
to agricultural inputs, credit, marketing services, etc. will
provide only limited and perhaps temporary benefit. A major
aspect of the U.S. effort to implement the rural development
objectives of the World Food Conference is to encourage through
our participation in Consultative Groups and multilateral
assistance organizations as well as through our bilateral assist-
ance programs the undertaking of necessary policy changes and to.
help support the implementation of such changes through the
financial assistance we can provide.

Another area in which considerable scepticism has been raised
in respect to the chances of success for improving incomes for
the small farmer and rural poor, on a long-run basis, turns on the
question of savings behaviour. Conventional economic theory
has held that the marginal propensity to save increases with levels
of income, i.e., the rich save more both in absolute and relative
terms than do the poor. The resource gap analysis discussed
previously indicated that domestic savings as well as external
resources must be raised if investment and production targets
are to be met, and that two-thirds of the aggregate financing
requirements must come from efforts to mobilize domestic savings
within the developing countries themselves. Hence, it can be
argued that in the developing countries where inadequate domestic
savings already constitute a major constraint on expanding new
investment and production, any large-scale effort to shift incomes
in favour of the poor as called for by the World Food Conference
will be self-defeating since the net effect will tend to reduce
aggregate savings and further limit the financing available for
productive investment.









The participatory strategy A.I.D. is following seeks to help
developing countries break out of this vicious circle by
assuring that development efforts in the rural sector will
maintain a balance between increased income and savings and
the higher level of consumption goods that will be demanded.
In addition, A.I.D. is also financing policy-oriented social
science research into questions such as savings and investment
behaviour of lower income groups in order to better understand
how problems in this area can be overcome.

In this regard, it is worth mentioning the striking results
of a major study now underway in which the findings suggest
that the savings propensity of a broad range of lower income
groups may actually be higher than that for the economy as
a whole, in direct contrast to what conventional economic
theory-would indicate. In the case of the small farmer, the
rate of savings may be very high, although this appears less
in monetary terms than in direct improvement, i.e., investment
in his dwellings, livestock and small landholdings in the form
of better drainage and other means of increasing the soil's
productivity.

Small farmers are generally efficient allocators of scarce
resources given the constraints they face and typically can
achieve yields per acre as high as or higher than large
farmers. For this reason, A.I.D. is convinced that the best
approach for implementing the World Food Conference's twin
goals of increased food production in tandem with greater
social justice lies in programs designed to help small farmers
gain access to agricultural inputs and services that they need
to become more productive. The essential elements are each
covered under one or more of the World Food Conference resolu-
tions and include such inputs as technical information, credit,
fertilizer, insecticides and improved seeds; an appropriate
system of incentives to assure a fair return; suitable rural
infrastructure such as market roads and irrigation systems;
minimum processing, storage and marketing facilities; and
cooperatives or similar organizations enabling participation
by farmers in decisions affecting them.

Each activity in A.I.D.'s program is designed to strengthen
and support one or more of these components of an integrated
agricultural development system. In addition to programs and
projects in this area directly carried out by A.I.D., the U.S.
Government participates actively in the work of the FAO and
all of the other international agencies which are carrying out
parallel programs and efforts.


80-579 0 77 3








Agricultural Research

Apart from the programs designed for immediate impact based on
existing technology, A.I.D. also is heavily Involved in pro-
moting research which will yield direct and indirect benefits
to small farmer agriculture over the longer term. Such research
efforts range from social science investigations into the
savings behaviour of the low-income groups as mentioned above,
to applied physical science research into questions such as
improved nitrogen fixation. Overall, A.I.D.'s research and
research support funding now amounts to approximately $50 million
annually.

A major portion of this is carried out through the Consultative
Group for International Agricultural Research (CGIAR), which
A.I.D. has supported since its inception, and which coordinates
and funds research programs in nine international agricultural
research centers. These centers have been responsible for major
breakthroughs in the development of the new high-yielding vari-
eties of wheat, maize, rice and other grains. In addition,
under Title XII of the Foreign Assistance Act, the new permanent
Board for International Agricultural Development has been recent-
ly established and will provide a focal point for expanding the
role of U.S. land grant colleges and universities in efforts
concerning the food production problems of the developing countries.


NUTRITION

Closely related to efforts to increase the productivity of small
farmers and the rural poor are policies and programs designed to
improve levels of nutrition. While increased agricultural pro-
duction and income may not by themselves automatically result in
improved nutrition, they are nevertheless essential conditions
and their absence will retard or even vitiate whatever progress
might otherwise be achieved by carrying out specific nutritional
programs. By the same token, reduction in the rate of population
growth is similarly necessary if significant long-run progress
is to be sustained in overcoming malnutrition and its consequences
among the poor of the developing countries. In fact, improved
levels of nutrition might be regarded as the ultimate objective
of the World Food Conference and as such is a goal for which
tangible progress depends not simply on efforts directly focused
on nutrition, but even more importantly on the rate of progress
among all of the interrelated, underlying factors.








While the past two years have(witnessed an alleviation of the
extremely critical hunger and malnutrition situation which
prevailed in many areas at the time of the World Food Conference,
the target date which was adopted for the elimination of these
problems still appears as remote as it did at the time of the
Conference. This disparity between the expectations raised and
the results so far achieved has contributed to a sense of
frustration and disappointment among many of those who are
keenly concerned with these problems. This in turn has generated
considerable criticism of what is seen as a lack of real commit-
ment and effort undertaken in the area of nutrition by all of
those countries and organizations that participated in the
Conference.

A.I.D. has not escaped such criticism. This fact entails some
measure of irony it might be suggested, since it-was largely
A.I.D., with support of other agencies of the U.S. Government,
which did the pioneering work on many of the specific approaches
ultimately endorsed by the World Food Conference and embodied
under the Nutrition resolution. At the same time, however, such
criticism is not without foundation, given the leadership role the
U.S. has assumed in the area of nutrition, and the technical and
financial capability that could in fact be mustered.
Among the criticisms of A.I.D.'s effort in the area of nutrition
are: .*1) the fact that funds specifically earmarked for nutritional
projects constitute a very small portion of the total foreign
assistance program; 2) that A.I.D. together with the other agencies
of the U.S. Government with responsibilities in this area could be
making substantially greater inputs into the organization and
implementation of nutritional efforts being carried out by the
international agencies; and 3) while A.I.D. has developed a number
of impressive nutritional techniques, it has been weaker on the
implementation side by not providing the staff necessary to help
carry out efforts in the field.

In response to the first point, it may be noted that all of the
funds which are appropriated under Section 103 of the Foreign
Assistance Act are ultimately directed to the goal of improving
nutritional levels whether they finance specific nutrition studies
and projects or attack the underlying economic problems which
must be resolved if nutritional levels are to be raised on a self-
sustaining basis. The same is true for most of the PL 480 program.
Moreover, even in the narrower context of specific nutrition projects,
the U.S. has helped to carry out a number of significant new
initiatives both in bilateral and multilateral areas. These include
nutrition surveys in a number of developing countries, increased
scientific research in the area of nutrition and a campaign against
vitamin A blindness and iron deficiency anemia.








A.I.D. is currently undertaking an intensive reappraisal of
the effectiveness and potential directions of its programs in
the area of nutrition. Because of the importance of this issue
and because of the particular concern that has been raised over
the adequacy of efforts so far made, the question of U.S.
involvement In nutrition is examined in considerable detail
under the second section of this report pertaining to imple-
mentatlon actions resolution-by-resolution.

BALANCE BETWEEN FOOD AND POPULATION

Rapid population growth in developing countries--at current
rates.a doubling of population every 35 years--seriously
exacerbates the already difficult task of improving the
welfare of millions who live at or near subsistence. Such
growth creates additional demands on scarce resources and
Impairs the precarious health of those who share present and
future development burdens. Worldwide population growth
generates Increasing environmental pressures and contributes
to International political and economic disruption--factors which
will affect the ives of all of us in the future.

Although only a decade ago it would have been impossible for
a large international conference to seriously discuss population
issues, let alone reach any agreement in this area, the World
Food Conference clearly showed itself to be concerned with the
important relationship between growing world population and
the ability of the world to feed itself. In Resolution IX, It
called on governments and people "to support...rational popu-
lation poTicles ensuring to couples the right to determine the
number and spacing of births"--an action reinforcing the re-
solutions adopted at the earlier World Population Conference
in Bucharest.
The population issue and Its consequences go far beyond the
quantitative problem of achieving a reasonable balance between
world food production and consumption and touches on a whole
range of variables affecting quality of life, especially among
lower income groups. A.I.D., together with other governments,
UN agencies and private organizations involved in family plan-
ning have helped to focus attention on the fact that access to
Information and the means of planning family size are essential
to the improved growth and nurturing of children and to the
general health and welfare of the family. Population programs
also are Increasingly based on recognition that women's roles and
status in the society have a strong bearing on decision making
regarding the spacing of children.








The U.S. has played a key role both in stimulating awareness
of the need to slow population growth and in supporting
techniques and facilities designed to help in this effort.
By the end of the current fiscal year, the US., through A.I.D.,
will have provided more than $1 billion in international
assistance to population programs throughout the-world. This
will amount to more than half of all such assistance to the
developing countries.
While population programs had limited impact in their initial
years, the growing recognition throughout the developing
nations of the seriousness of the problem and the increased
availability of family planning services are now making inroads
in the effort to slow the rate of tne world's population growth.
Expressed in increments to the total population, approximately
70 million persons were added in 1970. In 1974, the increment
was approximately 63 million, and the downward trend appears to
be accelerating.

WOMEN AND FOOD

The Conference also recognized the important roles of women
in food production, stating that rbral women in the developing
world account for at least fifty percent of food production.
In Resolution VIII, governments were asked to involve women
fully in decision-making for food and nutrition policies; grant
them rights to full access to all medical and social services
including family planning, and to education and information
essential to the mental and physical fitness of children. Govern-
ments were asked to educate and train women especially in food
production and agricultural technology, marketing and distribution
techniques as well as to provide for consumer, credit and nutrition
information. Inherent in these expressed desires is the recom-
mendation that governments promote equal rights and responsibilities
for men and women so that women's energies, talents and abilities
are fully utilized in the battle against world hunger.
Many steps have been taken by governments, UN agencies and our
foreign aid program on these important issues. The General
Assembly's unanimous passage of the World Plan of Action resulting
from the International Women's Year Conference in Mexico ascribed
to the same recommendations. The UN Commission on the Status of Women
met in Geneva in September, 1976, and added a special section on
Rural Development to the Convention to Eliminate Discrimination
Against Women. If adopted by the General Assembly, this Convention
will become binding on all member States, and for the first time









includes the principles of the Food Conference and World
Plan regarding women and food production. Highlights of
these and Agency actions are outlined in the Annex.

FOOD AID

While the long term solution to the world's food problem
clearly lies in expanding agricultural production in the
developing countries, substantial amounts of food aid will
be required for some time to come to help the food deficit
countries cover their import requirements and feed particu-
larly vulnerable groups. The World Food Conference adopted
this concept under Resolution XVIII which calls on donors
to consider ways of increasing food aid in the short term
particularly to the most seriously affected. The Conference
also adopted a food aid target of 10 million tons of grain
annually.

While the food aid target has not yet been met, the current
shortfall is less than 10 percent, and the U.S. has been
remarkably generous in terms'of its contributions to this
international effort. During FY 1976, the major donors com-
mitted 9.2 million tons of grain as food aid, of which almost
50 percent was provided by the United States.

The U.S. food aid program serves a variety of developmental
needs. Under Title I of PL 480, the U.S. sells agricultural
commodities to needy food deficit countries on highly con-
cessional terms. This helps to provide an immediate buffer
against shortfalls in their production and enlarges the
volume of food available for consumption. Under Title II of
PL 480, the U.S. donates blended foods to nutrition programs.
Most are administered by voluntary agencies, and maternal and
child health projects are given the highest priority. The PL
480 program has recently recovered to a level which provides
minimal security against moderate fluctuations in world food
production as well as assured supplies of commodities for
Title II nutrition programs.

The International Development and Food Assistance Act of 1975
includes several provisions designed to ensure that U.S. food
aid is concentrated to benefit the poor in needy food deficit
countries. Of total commitments under Title I, 75 percent must









be allocated to countries with an average annual per capital
GNP of $300 of less; and, of the 1.3 million metric ton
minimum level for Title II programs, 1.0 million must go to
U.S. voluntary agencies and the World Food Program.

In using food aid as a development resource, it is important
to recognize that a successful policy for rapidly expanding
local agricultural production for improving the welfare of
the low income peoples of the world is necessarily part of a
broader strategy that increases employment and the purchasing
power of the lower income people. It is a complex undertaking
in which, initially, demand for food may exceed growth in supply
until employment and income generating programs take hold.
Frequently, moreover, a short-term dilemma is also presented
since in many developing countries food production fluctuates
substantially from year to year.

The proceeds of concessional sales are often used to finance
programs to increase agricultural production and the commodi-
ties also contribute to supply stability in the face of lags
in production and fluctuating weather. Stable food supplies
are an essential underpinning for developing country govern-
ments to support a strategy of raising incomes and creating
demand for expanded local food production. For the longer run
a range of devices may be pursued to increase production and
improve distribution in order to ensure the necessary food
supplies. Clearly there is potential for joint programming
of U.S. dollar and food assistance to achieve common development
objectives, and several recent changes in legislation and pro-
gramming procedures have been established for this purpose.
Food aid now is managed in a cycle similar to the one used
for dollar assistance, and this greatly simplifies the
integration of the two resources.

In the long run, of course, the goal of U.S. assistance is to
help the developing countries to provide themselves with a
nutritionally adequate diet. If their tastes and purchasing
power permit, some countries may choose to import foodstuffs
on a commercial basis. The United States is in a position to
continue to compete effectively in those markets.

The PL 480 Title I program, properly defined, can play a
significant role in influencing countries toward strategies
designed to increase local incomes and production, thereby
helping to meet the humanitarian objective set forth by the
World Food Conference.








Each country context will differ, of course, and in each our
ability to effect a specific linkage of food aid to develop-
ment will depend upon careful analysis, planning and consul-
tation by the recipient, the U.S. Mission and interested
agencies in Washington. Food aid plans must be constructed
to ensure that U.S. food aid does not act as a disincentive to
local agriculture production by depressing prices farmers
receive and that it is linked with other development programs
to achieve needed additional policy changes and commitment
of resources by the recipient government.

FOOD SECURITY

At the time the World Food Conference was held, world stocks
of food grains had been drawn down to their lowest level in
twenty years following a succession of poor harvests and crop
failures. A number of grain surplus countries, including the
United States, had taken steps to restrict exports and it
appeared that the world could not sustain another season of
poor harvests without confronting a major international
catastrophe which would bear most heavily on the food deficit
nations. In the face of this situation, the Conference adopted
a number of resolutions and recommendations designed to strengthen
world.food security. The main elements of the strategy on food
security included an improved policy for food aid; an expanded
information and early warning system on crop prospects; expansion
of food storage systems in the developing countries; and the
implementation of a proposed International Undertaking on World
Food Security. In conjunction with the latter, a number of
governments agreed to study the feasibility of establishing an
internationally coordinated system of national reserves which
would be large enough to cover foreseeable major production
shortfalls.

The United States has supported the principles, objectives and
guidelines contained in the Undertaking on World Food Security
and has given this issue high priority. We have also offered
a specific proposal for a reserves system for wheat and rice
within the framework of the International Wheat Council to
improve world food security.

Unfortunately, although all governments recognize the need to help
protect developing nations from the vagaries of the weather
and to ease production shortfalls, progress toward agreement on









an effective system of food reserves has been disappointingly
slow. In the view of the U.S. Government, the slowness which
has characterized discussion on this question results less from
a lack of the will to put a grains reserve system into place
than it does from the exceedingly complex policy problems in-
volved in designing for an effective system.

Although technical discussions are proceeding, one of the key
issues that has not been resolved concerns the appropriate
trigger mechanism under which the system's reserves would be
accumulated or released. A number of the participating coun-
tries maintain that the appropriate mechanism should be price
related. Others, including the U.S., favor a mechanism based
on a production/stocks trend index, on grounds that a price mechanism
would not necessarily reflect real changes in the world's
physical availabilities of food grains.

The U.S. Government is confident that these differences can be
resolved in such a way that the legitimate interests of farmers
in the food exporting nations can be protected. While there has
been a lessening of the apparent urgency on this issue as a
result of the recent improvement in food crop production and con-
siderable progress toward the replenishment of normal grain
reserves during the past year simply through an improvement in
the international production-consumption balance, the United
States will continue to work for the establishment of an effective
system of reserves to safeguard the interests of all countries,
and especially the developing countries, against food production
shortfalls.

I FAD

The idea of an international Fund for Agricultural Development,
or IFAD as it has come to be called, represents the most original
and innovative idea to come out of the World Food Conference.
Although many countries, including the U.S., were initially un-
enthusiastic, the magnitude of the resource gap as well as agree-
ment among delegates that the new institution would not duplicate
existing international agencies led to the adoption of the IFAD
proposal as a new mechanism specifically designed to channel
additional international assistance to support efforts by develop-
ing countries to expand food and agricultural production.

Now, after two years of intensive international negotiations on
contributions to the Fund and on the Articles of Agreement to
govern its operations, the IFAD is on the point of becoming a


80-579 0 77 4








reality. If the final effort currently in process to complete
the $1 billion funding target Is successful, this new fund will
stand out as the single most notable accomplishment of the past
year in respect to steps undertaken to carry out the resolutions
of the World food Conference.

A principal feature of the new Fund, and one which distinguishes
it from other multilateral assistance efforts, is the fact that
it was conceived as a joint undertaking to bring together for
the first time both traditional foreign aid donors and new donors,
the members of the Organization of Petroleum Exporting Countries
(OPEC). Working out the respective responsibilities and obliga-
tions between the two groups of donors represents a significant
step in terms of international cooperation, but this difficult
process prevented the Fund from materializing sooner.

Underlying this is the fact that the funding issue was approached
from a different perspective by each of the two groups. The
traditional donors,-led by the United States, took the position
that if the new endeavor was to be a truly joint undertaking, the
funding responsibility also should be equally shared by the two
groups of contributors. The OPEC members, on the other hand,
argued that the relative disparity between levels of development
and national product of the two categories of donors did not
justify equal contributions. As negotiations proceeded, this
difference was bridged with a compromise by both sides to the
effect that, although contributions need not be Identical, they
would be approximately equal. Subsequently, however, after pledges
of approximately $530 million, including the U.S. contribution of
$200 million, were announced by Category I countries, the OPEC
members of Category II announced that their contribution would be
limited to $400 million with-the proviso that Category I must
increase its share to $600 million.

For a number of months following the June, 1975 plenipotentiary
conference, where it was expected that the IFAD agreement would be
opened for signature, the resulting shortfall against the $1 billion
target and the lack of parity in contributions created an impasse
which has threatened to cause the IFAD initiative to miscarry.
However, intensive diplomatic efforts carried out in international
meetings where IFAD has been discussed and direct bilateral approaches
to the principal OPEC contributors now make it likely that the fund-
ing problem can be resolved and the IFAD agreement put into effect
before the end of this year.








The impending agreement results, on the one hand, from a more
constructive attitude and increase in contributions by OPEC
and, on the other hand, from a decision by a number of
Category I contributors also to increase their contributions,
the latter on grounds that the purposes that the IFAD is de-
signed to serve outweigh continued insistence on the issue
of closer comparability between the two groups of donors.

Throughout the long process of making IFAD a reality, the United
States has played a strong leadership role, helping to resolve
the funding and parity issues, and designing the policies and
procedures incorporated in the articles of agreement to ensure
that IFAD will function not only efficiently but in a manner
that is compatible with the existing international institutions
with which the Fund will collaborate.

U.S. leadership in the IFAD endeavor has been made possible by
the substantial contribution the U.S. has pledged and by the
exceptional degree of coordination and cooperation between the
Executive branch and the Congress that has characterized U.S.
participation in IFAD from the beginning of discussions on this
undertaking.

With the funding issue now resolvable, the Articles of Agreement
adopted and the Preparatory Commission actively engaged in work-
ing out the procedures, the IFAD can be brought quickly into
operation. This will reaffirm the strong commitment the United
States has expressed through supporting the resolutions of the
World Food Conference to expand food production in the developing
countries and to alleviate hunger and malnutrition.







ANNEX

World Food Conference Resolutions

Resolution I: Objectives and Strategies of Food Production

In this Resolution the Conference resolves that the objective of the
international community as a whole should be the elimination of hun-
ger and malnutrition within a decade. It calls on the governments
of developing countries to give high priority to agricultural and
fishery development, to formulate short, medium and long-term food
production and utilization objectives taking into account demographic
and general development goals consistent with good environmental
practices; take measures for agrarian reform; and develop adequate
national supporting services.

The Conference also requests or urges governments to increase their
assistance for agricultural development, especially to least developed
and most seriously affected countries, including capital on favorable
terms, and to provide the necessary inputs for agriculture such as
fertilizers, pesticides, and machinery with incentives to enable the
producer to buy. The Conference requested all governments to reduce
waste of all agricultural resources, land, water and energy.

The Conference called on the UN regional Economic Commissions to-
continue their assistance to governments of their regions in their
economic development efforts. It also urged FAO, in consultation
with UNDP and other relevant organizations to develop criteria for
selecting suitable areas for food production; to make an inventory,
on the basis of the criteria, of areas suitable for additional pro-
duction; and to Indicate ways and means for carrying out additional
food production.

In a final section of the Resolution the Conference requested the
World Bank, Regional Banks, UNDP and UNIDO to mobilize the support
of their respective communities in support of the objectives of this
Resolution.
Food production in developing countries increased by 5% during 1975,
or by an amount greater than the declared 4% goal of the World Food
Conference. While this development is in part no doubt due to unusually
favorable weather conditions, it is also In part due to the high
priority being given to increasing their own agricultural .production
by the International community. The United States almost doubled its













bilateral development assistance for food and agriculture in the past
three years, from $275 million in FY-74 to $487 million in FY-77.
Meanwhile, official development assistance commitments from all inter-
national sources for agriculture have grown from $2.5 billion in 1973
to $5.9 billion in 1975, with World Bank lending for this purpose
having grown from $1.1 billion to 2.2 billion.
An important part of the process of alleviating world food problems
is the identification of the extent and distribution of those problems,
measurement of the flow of international resources directed toward
their solution, and evaluation of major policy and other constraints.
The U.S. Government has been very active in all of these efforts in
cooperation with other governments, and with the World Bank, FAO,
UNDP and UN agencies in related fields; the recently created World
Food Council recommended by resolution of the World Food Conference
and UN General Assembly; and with two other organizations resulting
from that Conference, i.e. the Consultative Group on Agricultural Production
and Investment, and the IFAD-International Fund for Agricultural
Development which is currently in the process of establishment.

The United States has also been active in international efforts to
address particular aspects of food production problems. For example,
during FY-76 AID devoted more than $1 million toward reducing the
sometimes considerable losses of food between the farm field and the
final consumer. The U.S. has joined with others in a consortium
dedicated to solving the agricultural problems of the Sahel region
of Africa.

In short, the U.S. Government, through A.I.D. has been very deeply
Involved in carrying out the recommendations of Resolution I,
particularly through A.I.D. whose largest component of technical'
assistance and supporting financial assistance is in the field of
agriculture. Examples of specific fields of activity by A.I.D. are
discussed further in connection with other conference resolutions.













Resolution II: Priorities for Agriculture and Rural Development

This Resolution calls on all governments to implement appropriate pro-
gressive agrarian reforms; promote cooperative organizations; encourage
formal and non-formal education of rural people. It calls on interna-
tional and bilateral agencies to emphasize through various activities
integrated rural development programs. Among the institutions mentioned,
through which integrated rural development might be brought about are
those for employment and income generation, credit and marketing systems,
and cooperative institutions. The Resolution urges that such institu-
tions be organized in developing countries to reach the mass of farmers
and rural workers, and taking into account the role of rural women in
agriculture. It also aims at elimination of illiteracy within a decade.
The Resolution calls on the governments of developed countries to become
mobilized to take part in development work.

Because agrarian reform is understandably associated with politically
sensitive issues, AID generally follows an indirect approach toward
encouraging secure tenancy in those developing countries where such
reform is appropriate, and has frequently accorded more direct re-
sponsibility in this area to multilateral organizations such as the*
World Bank and the FAO. AID has extended the 211(d) utilization grant
to the University of Wisconsin Land Tenure Center (LTC), largely to
accommodate the continued demand of developing countries for the Center's
technical services. Concurrently, AID has encouraged the LTC to focus
its research program toward key agrarian reform issues, the solution of
which has policy as well as operational implications. AID has also
endorsed the LTC's major plans for an International Seminar on Agrarian
Form to be held during the summer of 1977. This largely indirect
assistance to the developing countries through the LTC is complemented
by AID-supported cadastral surveys and related land tenure studies in
various countries, including Bangladesh.

Cooperatives continue to constitute a primary means of grouping and
involving large numbers of small farmers in rural development. AID
provides grant support to several institutions including Agricultural
Development International (ACDI) which provide technical assistance
to developing countries in the field of organizational














development; the ACDI plans to sponsor a seminar on cooperatives which
will provide an international forum in which to bring together expertise
and experience in this vital area. On the more operational level, AID
provides loans (or is reviewing requests for loans) for electric coop-
eratives in the Philippines, small farmer organizations in Honduras,
cooperative marketing in the Philippines, and small farmer credit
cooperatives in Kenya. The recent program guidance that was sent to
AID's field Missions encouraged the continued emphasis on cooperative
development.

Education (formal and non-formal) and human resource development is one
of AID's major sectoral areas of.emphasis, together with food and
nutrition, and health and family planning. This year, guidance was
sent to the field indicating how Missions could better integrate educa-
tion programs into their total development assistance programs in a
fashion more consistent with the learning needs of the rural poor.
In addition, AID supports projects designed to improve the educational
levels in developing countries, especially in Latin America and Asia.

Food production and rural development programs (which often include
agrarian reform concerns, cooperative organizations, and education
activities) are the cornerstone of the AID program in most developing
countries. Accordingly, AID continues to allocate substantial develop-
ment assistance resources allocated to increase yields per acre on
small farms, to increase employment opportunities of the underemployed,
and to improve income distribution. AID is currently reviewing re-
quests for an integrated rural development program in Chad, a rural
resource support loan in Ghana, agricultural sector loans in Tanzania
and the Dominican Republic, grain marketing in Zaire, simple irrigation
in Indonesia and rainfed agriculture in Pakistan, and appropriate tech-
nology requests from various countries including Peru. The new Title
XII, Famine Prevention and Freedom from Hunger, has permitted AID to
work more closely with U.S. land-grant and other universities in promoting
increased food production. (See Resolution IV for further details on
implementation of Title XII.)











Resolution III: Fertilizers

This Resolution contains eight recommendations, as follows:

Recommendations 1 and 2 encourage bilateral and multilateral donors
to give special attention to supplying fertilizers to the MSAs
during the period of shortage and astronomically high. prices.
Recommendations' 3 and 4 recommend that FAO, UNIDO and World Bank
jointly assist developing countries to improve efficiency of their
fertilizer plant operations; and urge international Institutions,
developed countries and others to provide financial and technical
assistance, technology and equipment on favorable terms to build
necessary additional fertilizer production facilities in develop-
ing countries having essential raw materials, and to assist them
in other ways with the establishment of necessary infrastructure.

Recommendation 5 requests interested countries to consider enter-
ing into cooperative ventures or partnerships for promotion of a
stable fertilizer production/supply system enabling developing
countries to obtain them.
Recommendation 6 requests "the FAO Commission on fertilizer, member
countries, and international organizations (UNIDO and World Bank)
to prepare an authoritative analysis of the world demand and supply
situation as a basis for world fertilizer policy.
Recommendation 7 requests member countries to introduce standards,
policies and measures to ensure quality, including mineral and
alternative sources of plant nutrients such as organic fertilizers
and others.

Recommendation 8 recommends intensification of international efforts
1in the transfer of technical knowledge through extension/education
and greater use of various methods for improving soil fertility.

The U.S. government, primarily through AID, participated actively
in multilateral cooperative programs and bilateral programs
as well.













In regard to recommendations 1 and 2, although the shortage is
history and prices are now at a reasonable level, the U.S.
through AID is continuing to emphasize fertilizer in its program.
In FY 1976 and the Transition Quarters, July September, AID
Financed 410,895 and 39,000"metric tons of fertilizer valued at
$65 million to nine (9) countries, in Y i177-supplyin-g 287,000
tons to date.

Following recommendations 3 and 4, the U.S. has actively supported
the programs of FAO, UNIDO and IBRD in attempting to stimulate
rational investments in the industry, to improve the system
supplying basic information for both marketing and commitment of
capital to the industry. It has provided technical assistance
through the TVA and more recently through the International
Fertilizer Development Center IFDC. A major effort in this
field was a preliminary survey of resource development and use
potential in West Africa which is leading to specific development
projects. IFDC is involved in many smaller projects which in the
aggregate can be expected to have a significant impact on both
investment decisions and on production from existing units.

Although the U.S. Government is not directly involved in partner-
ships between U.S. and LDC producers, it has encouraged joint
participation; for example, AGRICO in the Fauji project in Pakistan.
More recently the Cooperative League U.S.A. has been exploring
provision of a marketing service to Latin American countries.

The U.S. has participated regularly in the FAO Commission on
Fertilizers, the FAO Fertilizer Industry Advisory Committee and
most recently, through TVA and its support of IFDC in the Consulta-
tion on the Fertilizer Industry.

The U.S. has long had rigorous enforcement of quality standards
for the fertilizer industry through individual state laws. A
concerted effort has been launched to increase the reliability
of reporting and to achieve uniformity in these standards.
Adequate quality control methods are available for almost all
products. In this regard AID with TVA assistance is revising its
model specifications for fertilizers to ensure both good product
quality and permit the broadest possible competition among legiti-
mate suppliers. These specifications are suitable for either
fertilizer purchase or as product specifications for factory
design.


80-579 0 77 5













The U.S. interest Is not limited to chemical fertilizers. Within
the past two years AID has committed $2,684,000 for research on
biological nitrogen fixation under tropical conditions. Another
$233,000 is programmed for FY 1977. Intensive projects are under-
way at the University of Florida and the University of Hawaii
while the USDA is coordinating a number of smaller activities
which build on special skills throughout the U.S.

As a major step to improve the transfer of knowledge about
fertilizers and their production, the U.S. through AID and Canada
launched the International Fertilizer Development Center IFDC.
Since its incorporation in October 1974 the IFDC has brought
together a staff of 47, including 26 highly qualified professionals.
Its staff includes nationals from 10 countries. In support of the
fledgling Center the U.S. has contributed $10.7 million, $5.7 of
which is for basic buildings and equipment. Since Its founding
the IFDC has furnished technical assistance to more than 20
countries and cooperated actively with the World Bank Group, UNDP,
and ESCAP.












Resolution IV: Food and Agricultural Research, Extension and Training

This resolution emphasizes the need to increase agricultural research
training and extension programs. It also emphasizes the need for
linkages among national and international research programs.

In particular, Recommendations 1 through'9 spell out the fields in
which international regional and national research should be de-
veloped, and the results exchanged through various "linkages".
Among the areas mentioned for strengthening and intensification of
efforts are maximizing production of all food crops and live-stock
through improved water development; better utilization of land,
water and other resources; opening up of new lands; and development
of non-conventional as well as traditional sources for raising of
nutritional levels. Extensive efforts should also be made to in-
crease productivity and reduce costs by such developments as solar
and geophysical energy, plant introduction and genetic breeding.
Recommendations were also made on the need for research relating
to ecological impact of various forces including climatic, and the
importance of applied research to specific farming systems.

Recommendation No. 9 contains some proposals for specific actions:

(1) That FAO undertake collection, dissemination of current
research, results of research already underway and that resources
be made available to permit exchange of experience between different
centers;

(2) That the resources of CGIAR (Consultative Group on Inter-
national Agricultural Research) co-sponsored by FAO, UNDP and World
Bank be increased In order to enable it to strengthen and complement
the work of international and national institutions and the centers;
and

(3) That adaptive research and cooperative efforts be made
at all levels to strengthen specific areas and techniques of
research.














A number of important things have taken place within the past year
which are directly supportive of this resolution:

1. Title XII (Amendment to the Foreign Assistance Act)

Through Title XII, we have launched a broad program to use the vast
resources of our agricultural college and universities in solving
worldwide food and nutrition problems. While AID. has long and
successfully used the expertise of U.S. universities in development
programs, the new authorization will permit more systematic and
longer-term application of scientific and technological expertise
on agricultural development problems. The new approach aims to
encourage our agricultural universities to integrate their over-
seas and domestic programs, extending the borders of the univer-
sities beyond the state and beyond the nation.

The first major steps are being taken to implement Title XII.
The President has named an outstanding group of noted agriculturists
to the Board for International Food and Agricultural Development,
authorized by Title XII. The Board held its first meeting in
October 1976 and is meeting monthly. Extensive coordinated back-
ground work by U.S. university and AID representatives greatly
facilitated deliberations of the Board. Rapid progress is expected
in working out arrangements whereby U.S. institutions can more
fully participate in the development and implementation of programs
designed to meet broad-based research needs of developing countries,
as well as of those directed to specific country research and de-
velopment priorities in food and nutrition.

Implementation of provisions under Title XII will involve careful
analysis of how U.S. institutions can most effectively link with
LDC R and D institutions, and with the international agricultural
research centers. We and other technical assistance organizations -
particularly through the mechanism of the Consultative Group on
International Agricultural Research (CGIAR) are seeking and find-
ing ways to better contribute to worldwide agricultural R and D
networks. A major consideration is how best to capitalize in
agricultural R and D in meeting developing country needs.











2. The National Academy of Sciences' Study on Food and Nutrition

This important study, financed in part, by AID, will be very useful
in providing guidelines for the role of the U.S. in meeting the food
and nutrition problems of the countries of the developing world.
Emphasis is directed to helping these countries to help themselves.
An Interim Report of this study was released in 1976; the full report
is scheduled to be released about mid-1977.
3. The International Agricultural Research Centers

In 1975 about 30 CGIAR members contributed a total of approximately
$47.5 million to these centers and associated activities. The
corresponding figure for 1976 is about $62.5 million; the expected
amount for 1977 is some $78 million. The U.S., through AID, con-
tributes up to 25% of these total requirements. The work of the
centers addresses the major food sources and main agricultural regions
of the developing world. Increasing emphasis is being placed on
the small, disadvantaged farmer who requires, for adoption, a low-
cost technology that takes into account the constraints of capital
and production inputs. In particular., mention is made of the newest
of the centers ICARDA (International Center for Agricultural.
Research in the Arid Areas) which addresses needs of farmers in
the more marginal agricultural regions of the developing world.

In 1976 we participated in a comprehensive review of the CGIAR
system with a view to assessment of the nature, scope and management
of activities for the next 3-5 years. The Review Report strongly
affirmed the importance of the CGIAR and the activities supported
by it. It called for their continuance for the foreseeable future;
for a three-year period of consolidation during which no major new
financial obligations should be incurred; and for more effective
linkages of the centers with national agricultural programs, on
the one hand, and with advanced research institutions (e.g., in
the U.S.) for supportive research, on the other. The Report was,
in principle, supported by all members.











* 4. Farming systems for the Small Operator

If we are to help the small farmer in the developing countries, we
must understand him and his overall agricultural enterprise. This
is a time-consuming and complex assignment, which perhaps explains
why we and other technical assistance organizations have tended to
avoid or postpone It. We have responded to the Congressional mandate
to better address our attention to this large, important and relatively
neglected segment of the rural population In the LDCs. Fortunately,
the CGLAR shares this view, so we find the international centers
giving greater attention to the needs of the small farmers.
A growing number of AID-supported country-level farming systems
R and D projects are primarily concerned with small farmers. The
Agency, at the same time, is attempting to identify common denomi-
nator aspects of farming systems of small operators that can serve
as a basis for research on methodology that could have widespread
application. This is important in view of the recognized site-
specificity of the strictly applied aspects of small farming
systems' production technology.

5. Low-Input Technology
AID, both through support to U.S. Institutions and to international
centers, Is focusing on development of technology that takes into
consideration capital and input constraints of poor farmers In the
developing countries. The following examples are illustrative of
initiatives taken, or further emphasized, subsequent to the World
Food Conference:

Biological fixation of nitrogen. Research is underway with
U.S. universities (e.g., Hawaii and Florida) to determine
how farmers can more effectively make use of this 'low-cost"
nitrogen for increased yields of food crops. The U.S.D.A.
Is assisting us In identifying problems and scientists to
broaden the scope of this work. Modest support is being
given for work to explore the feasibility of biological
fixation of nitrogen in non-leguminous food crops such as
the major cereals.













Testing of Potential New Varieties of Crops under low-
input/Stress Conditions. Work on important crops such as
wheat, barley and sorghum is being conscientiously
oriented in order to identify materials that perform in
a superior manner under stress conditions. For example,
barley and sorghum materials are being screened for
tolerance to drought and heat. The international center
for maize and wheat (CIMMYT) has been encouraged by the
CGIAR to consider ways in which more experimental materials
can be tested systematically under low-input (e.g., low
level of fertilizer) conditions.

Development of more effective fertilizers and fertilizer
use practices. The new International Fertilizer Development
Center (IFDC) is expanding its program of research and
technical assistance. We are encouraged by the growing
recognition of the important role of IFDC as reflected in
the recent decision of the CGIAR to nominate three members
of the Board. The work at the International Rice Research
Institute (IRRI) on more effective use of fertilizers
through the "mudball" technique illustrates a kind of
unsophisticated technology that could have important im-
plications for small rice farmers who are severely
restricted in the amount of fertilizer they can purchase.

Aquaculture and Fisheries. AID's recently established
Division of Aquaculture and Fisheries provides a basis
for substantially increased research, development, and
training directed to the needs of aquaculture and artisanal
fishery in the developing countries.

6. CARS

AID has helped support the development of CARIS (Current Agricultural
Research Information Services) through FAO. Fao is expected to assume
the funding of CARIS beginning in 1978. CARIS seeks to establish an
international information system to collect, process, and disseminate
data on research institutions, workers, and programs. CARIS will link
with national research information services.


80-579 0 77 -6








Resolution V: Policies and Measures to Improve Nutrition

Recommendations 1 and 2 of the Resolution relate to the need
for integrated food and nutrition plans and policies designed
to reduce hunger and malnutrition. As one means of imple-
menting this objective, FAO was requested, in cooperation with
the other organizations In the UN system (WHO, UNICEF, WFP,
World Bank, and UNESCO) to prepare a project proposal for
assisting governments to develop Intersectoral food and nutri-
tion plans. FAO was also requested (Recommendation No. 10) to
make an inventory of vegetable food resources, other than
cereals, and to study the possibility of increasing their
production and consumption especially in the areas where mal-
nutrition is widespread. FAO, WHO and UNICEF were requested
(Recommendation No. 12) to expand their monitoring of food
contamination, and to establish a global nutrition surveillance
system to provide information on factors affecting food con-
sumption and nutritional status (Recommendation No. 13).

Most of the other recommendations deal with specific components
of nutrition planning. These relate, inter alia, to measures
for national governments to take with respect to food for
vulnerable groups Including encouragement of breast-feeding and
changes in weaning practices (Recommendation No. 6); nutrition
education (Recommendation No. 4); health, and related social
services for those suffering from protein malnutrition
(Recommendation No. 5); food supply for emergencies (Recommend-
ation No. 8); food fortification through meeting specific
nutrient deficiencies (Recommendation No. 9); consumer education
(Recommendation No. 11); establishment, by governments, of
applied research in specific nutrition fields (Recommendation
No. 14); association of non-government organizations with
national programs (Recommendation No. 15) and improvement of the
nutritional and educational status of women (Recommendation No,16).

The United States Government has been working for many years
toward achievement of the same nutritional objectives as those
of the World Food Conference. Since the Conference, the U.S.
has accorded even higher priority toward these objectives, both
through U.S. bilateral assistance programs and as a member of
the international organizations in the UN System.

1. The U.S. Bilateral Program

While primary U.S. Government responsibility for follow-up on the
Nutrition Resolution of the World Food Conference per se lies with








the Offices of Nutrition and Food for Peace in the Agency for
International Development, there are numerous agencies and
offices of the Government whose actions have an immediate or
potential effect on nutritional well-being overseas. The con-
sumption pattern of populations in low income countries may
be affected, in some cases significantly, by U.S. policies
relating to concessional food sales, exports and imports, and
grain reserves. Nutritional status also may be affected by
U.S. assistance to these countries in the areas of agri-
culture, health, population, education, and rural and urban
development. It should be recognized that policies and
decisions in these other areas may have an equal or greater
effect on nutritional well-being than those carried out by the
AID Offices of Nutrition and Food for Peace. Resolution V,
however, as far as the U.S. Government is involved, pertains
primarily to the activities of these two offices, and of
relevant USAID Mission programs overseas.

The AID Nutrition Strategy as a whole is oriented along the
lines of our Congressional Mandate. The strategy is based
on the premise that problems of hunger and malnutrition are
concentrated in the "poor majority" in LDC's, who have neither
been included in the development process nor shared significantly
in its benefits. The plight of the 460 million chronically mal-
nourished people, half of them children, has eased somewhat
since the World Food Conference but is still critical.

The over-riding objective of the AID Nutrition Strategy is to
assist communities and governments and to work with external
assistance agencies in meeting the basic needs of this group
and reducing their deprivation. From the perspective of the
poor throughout the world, the most basic needs relate to
survival, the keys to which are nutrition and health.

The U.S. response to these recommendations is threefold:

First, AID recognized that external assistance agencies cannot
and should not play a design-directive role in the development
and implementation of specific interventions to meet the nu-
tritional needs of populations in other countries; that responsi-
bility for these and other development activities lies at the
national and sub-national levels of the governments of these
countries. AID also recognizes that many governments are not









yet fully committed, for a variety of reasons, to the goal
of improving the nutritional well-being of their poor
majority. Accordingly, AID's first objective in responding
to Resolution V is to increase LDC governmental awareness
of malnutrition, to increase governmental commitment to
nutritional improvement, to provide information on the kinds
of interventions available, and to suggest planning contexts
for such decision-making.

Toward this objective, AID has been providing assistance to
numerous governments in the development of Intersectoral
nutrition plans at the community, sub-national and national
levels as well as undertaking pioneering work in the develop-
ment and application of such methodologies. AID can make a
further contribution by insuring that new U.S.-assisted programs
in health, agriculture and other relevant sectors emphasize
the nutritional impact of these programs particularly among the
poorest. (See objective 3).

A key instrument in the preparation of nutritional plans is
the nutrition survey. These surveys play a multiple role.
They identify the number, regional distribution and character-
istics of the malnourished groups. They provide clues to the
causes of malnutrition as well as base line data that can sub-
sequentlly be used to evaluate the impact of nutrition inter-
ventions. Finally, they serve to sensitize governments to
the existence and importance of the malnutrition problem which
often reflects non-participatory patterns of development.

AID has already financed nutrition surveys in six countries,
and will finance nutrition surveys in five additional
countries during FY 1977. AID also plans to finance a major
study on the functional implications of malnutrition
(Recommendation No. 1 of the Nutrition Overview Study Team of
the National Academy of Sciences' World Food and Nutrition
Study, July 1976) to translate the scientific measurements in
such surveys into long term health effects, productivity and
behavioral consequences which can be understood by decision
makers. Such sensitization ideally should strengthen the
hands of governments interested in direct nutrition interventions
and more equity-oriented patterns of development.

The second AID objective with regard to Resolution V follow-up
is to assist low income countries in the analysis, design,
promotion, implementation and evaluation of direct nutrition
interventions aimed at poor and vulnerable population groups.








AID, primarily through its overseas missions, has been working
actively in the area of direct interventions for the past 10
years, providing technical, financial and food assistance,
appropriate equipment and, more recently, soft loan financing
to governments interested in launching such programs. In
addition to continuation of the Title II food grants (princi-
pally through U.S. Voluntary Agencies), the overall AID strategy
with respect to this second objective Is two-fold. First, AID
is systematically examining the relative costs and effectiveness
of a range of interventions which will affect the nutritionally
most vulnerable groups. Rather extensive AID-financed operations
research is underway in the areas of nutrition education
(Recommendation No. 4), child feeding (Recommendation No. 7), and
food fortification (Recommendation No. 9) to determine what does
and does not work. This will help to refine intervention approaches,
and by disseminating this information nutrition planners will be
able to program more effectively. Most of the interventions being
examined are aimed primarily at the most vulnerable population
groups, pregnant and lactating women and children in the first two
years of life. Such research, in general, is probably the most
important category of applied nutrition research (Recommendation
No. 14) that can be undertaken at present in low income countries.
This research, while very broadly defined, is highly operational
in content, and carried out within the context of each country's
own programs, priorities, and capacities.

The second aspect concerns training. Past experience suggests
that even in LDC's which are committed to programs to combat
malnutrition, implementation of nutrition intervention efforts
suffers from the endemic management problems of underdevelopment
and often ceases once external assistance is withdrawn. During
the past three years, AID has attempted to respond to
this need by financing and encouraging considerable training of
middle and senior level government officials in nutrition planning.
During the coming years AID will continue such training but in the
low income countries themselves to permit direct exposure to the
malnutrition problem and its key determinants. In addition, in
order to support village level identification and care of mothers
and children at risk, AID, through its Offices of Nutrition and
Health, hopes to become actively involved in the process of train-
ing village workers in public health and nutrition extension
services.

In addition to this systematic program of research, training and
assistance to governments in developing sensible packages of inter-









ventions, AID has selected a few categories of nutrition
interventions which it plans to support more specifically
in the context of the particular needs and conditions of
individual countries.

One of these intervention approaches is village-level
Identification and care of pregnant and lactating mothers
and children at risk. This involves selection and minimal
training of village residents responsible to the community
who then provide simple nutrition, health and family plan-
ning services. The most important nutrition component in-
volves the periodic measurement of height and weight of
young children to Identify malnutrition and the provision
of education and food supplementation as required. Follow-
up care can be targeted for children identified in this
fashion as being nutritionally at risk. Such a program
will require major attention to low-level training, and
AID hopes to take a- leadership role in the organization of
such training. This village level intervention, if success-
ful, will also generate an ongoing body of data (from the
height/weight charts kept for each child) which can serve
as the basis for national and sub-national nutrition sur-
veillance systems (Recommendation No. 13). In most cases
this would be preferable to independent nutritional status
surveillance exercises which, when there are no response
mechanisms, have the potential of becoming ends in them-
selves.

The second category of interventions to be emphasized
relates to vitamin A deficiency and iron deficiency anemia
(Recommendation No. 9). These problems, specifically identi-
fied by the U.S. Secretary of State in his opening address
to the World Food Conference, follow protein-calorie mal-
nutrition in terms of their consequences, but are considerably
easier to address. AID is pursuing a number of different
interventions--ranging from nutrition education to food
fortification--In an effort to develop appropriate low cost
alternatives for individual countries. In the area of
fortification, AID has carried out some of the pioneering
research on non-cereal carriers which might permit more
complete coverage of low Income populations than would cereal
fortification. AID has financed research on the feasibility
of fortification of sugar, tea, salt and flavoring agents and
during FY '77 will extend this research to provide countries
with a reasonably complete matrix of fortification possibilities
using unconventional carriers.











AID has taken the initiative in organizing an international
consortium of public and private agencies interested and
involved in addressing the problem of vitamin A deficiency.
The group is comprised of the UN Agencies specifically con-
cerned WHO, UNICEF, and FAO, private voluntary agencies,
and other bilateral donors. The consortium will coordinate
a worldwide attack on the problem, with AID assisting operations
of the consortium and sponsoring appropriate portions of
programs recommended by the group. A worldwide conference
cosponsored by AID and WHO was held in Jarkarta several weeks
after the World Food Conference as well as other organization
meetings in Washington, and the consortium is now operational.
In addition, AID has approved multi-year projects with
activity underway in Haiti, Guatemala, Indonesia, Sri Lanka
and El.Salvador.

A similar international consortium has been formed to conduct
a campaign against iron deficiency anemia. AID and WHO co-
sponsored an international conference to establish guidelines
for carrying out programs to combat anemia which resulted in
the approval of a recent multi-year project. AID is budgeting
a total of $10 million to be spent on vitamin A and iron
"projects over the next five years to support these efforts.

Another area of intervention in which AID is particularly
interested relates to breast feeding and, more broadly, to
changes in weaning practices (Recommendation No. 6). With
the active support and encouragement of groups such as the Inter-
religious Task Force on U.S. Food Policy, AID has undertaken
two research projects and is seeking to develop a strategy
capable of having some impact on breast feeding and weaning
practices including the early provision of supplementary solid
food. While we have considerable knowledge about the deleteri-
ous effects of poor weaning practices we know relatively little
about affecting such practices. Accordingly major attention
in FY '77 will be directed at meeting this particular knowledge
gap, specifically in the context of the needs and responsi-
bilities and participation of women in the development process.
In this effort AID will call upon the Committee on International
Nutrition of the U.S. Food and Nutrition Board in the National
Academy of Sciences.

One important means of addressing several of these priorities
lies in the area of appropriate technology. Clearly, the U.S.
has an enormous comparative advantage in the area of technological
research and development. In the field of nutrition, however, the











scope for technology transfer capable of affecting the poor
majority is limited. In the past, most of these technologies
have produced raw materials or foods largely beyond the
purchasing power of the poor. In addition they tended to be
capital rather than labor Intensive and accordingly were often
inappropriate in capital-short, labor-surplus economies. There
is, however, a category of intermediate food technology In
nutrition which often is appropriate to the realities of low
income countries and which may provide low cost solutions
to particular problems. One example is low cost Extrusion
cookers, developed in the U.S. to process soy beans for feed
on the farm or in small feed mills but also capable of pro-
ducing pre-cooked easily digestible foods for young children.
AID in cooperation with USDA is evaluating the utility of
these low cost extruders under actual field conditions in LDC's.

The third major objective with respect to Resolution V is to
determine the consumption/nutrition implications of policies
and programs in other development sectors. While the nutrition
community has done rather well in its attempts to pursue and
learn about direct nutrition interventions, we have done far
less well in identifying the nutritional effects of other
development policies and programs. And yet the consumption
and nutritional effects of agricultural price and land use
policies, of health care and population programs, of rural
employment programs and of food trade policies are often more
significant than direct Interventions. The nutrition community
has a responsibility to identify these effects and assure that
they are considered in the decision-making process, In many
cases, the mere identification of projected consumption effects,
with all that this implies politically, will have an important
effect on the decision. This process represents a crucial and
the most neglected component of nutrition planning advocated
by Recommendations 1 and 2.

During FY '77, AID plans to develop and establish In at least
one country, a relatively simple system to permit translation
of the projected income and/or price effects of development
policies or programs into projected consumption effects, dis-
aggregated by income and age groups. This will provide some
insight Into the nutritional effect of such policy changes.
AID has also initiated a systematic effort to determine the
nutritional and health benefits of water supply systems,
(Recommendation No. 5), subsidized consumption systems and
health systems.










Food aid cuts across many of the issues discussed above.
The U.S. PL 480 Title II program has been undergoing con-
siderably reorientation over the past decade in the
direction of increased nutritional impact. School feeding
is gradually being replaced by pre-school feeding with
increased efforts directed at children in the poorest families
in the critical 6-24 month age group, and tbe nutritional
value of Title II commodities has been improved. Beginning
in FY '77, in the context of Agencywide disaster planning,
explicit attention will be given to the nutritional issues
related to disasters in an effort to permit more effective
U.S. inputs and also to provide LDC governments with
assistance in disaster pre-planning.
While continuing to increase the nutritional effectiveness
of Title II programs, AID will also begin in FY '77 to
explore alternative means of increasing the nutritional impact
of Title I concessional sales sales programs. Title I foods
already are being used in several countries to support sub-
sidized consumption systems designed to increase the food
Intake in low income groups, particularly fn the cities.
In Pakistan, the ration system, utilizing PL 480 wheat, in
part, increases the real income of the lowest income group
by 10 percent and provides between 9 and 14 percent of their
caloric needs. AID intends to study similar subsidized con-
sumption systems in other low income countries in FY '77 and
'78 as part of a broader examination of the nutritional
benefits of Title I delivery systems. Such an examination
will also attempt to identify appropriate administrative
structures that might permit the expansion of these programs
into the rural sector. If it can be demonstrated that such
programs are truly cost effective, or can be made to be cost
effective with good management, it is likely that LDC's may
consider such interventions justified irrespective of the
provision of PL 480 or other external aid. Consideration will
also be given to the possibility of increased utilization of
local currencies, loan forgiveness provisions and the inclusion
of blended foods under Title I for nutritional purposes.

In contrast to a reasonably active role on the recommendations
referred to above, AID does not anticipate involvement in
recommendation 10 (vegetable food resources), recommendation 11
(consumer education services) or recommendation 12 (food con-
tamination monitoring program).








AID will continue to work closely with non-governmental
organizations (Recommendation 15) in the conduct of its
programs, and, in addition will continue to provide
grant support to Such organizations to increase their
nutrition programming capability. During FY '76, AID
grants totalling $780,000 were provided to such organizations.
in FY '77 that figure is expected to rise to $1.2 million.

Finally AID will make renewed efforts to work in concert with
international agencies to carry out the word and spirit of
Resolution V. The work of WHO and FAO is of particular
importance. Diplomatic as well as technical/professional
channels are being used to encourage these organizations to
place greater program stress on activities to combat mal-
nutrition. AID also will participate actively with other
U.S. Government departments and offices in exercising the U.S.
membership responsibilities to the international agencies,
and will attempt to affect the organization, priority setting,
and decision making of these agencies in ways which best
support implementation of Resolution V.

The foregoing description of AID's general direction and
emphasis'of effort in combatting malnutrition is being
translated into country specific operational programs.
Already 15 of AID's country assistance programs contain
specific operational nutrition projects or nutrition com-
ponents of agriculture or health projects. For example,
loans to four Central American countries for nutrition
totalled $32 million in FY 76, and PL 480 Title II resources
were valued at $313 million. Central funding of AID research
programs in nutrition increased from a level of $1.4 million
in 1973 to $5.6 million in 1976, and projects funding of $7.2
million in 1977 and $10 million in 1978.

2. Nutrition Activities in the UN System

Improvement of nutritional levels in the developing countries
is a primary objective of the FAO, and is important also in
the work of the WFP, WHO, UNICEF, UNESCO and UNDP. There is
also increasing involvement in the field of nutrition by the
international financing institutions. For example, in 1977
the World Bank, with strong encouragement from the U.S., will
finance a nutrition project in Brazil, the first project of
its kind approved to date.









Acting under the impetus of the World Food Conference,
the UN Economic and Social Council, with strong U.S.
support, set up a sub-committee on nutrition designed
to stimulate increased nutritional awareness and
activities throughout all the agencies in the UN System.

The FAO, because of its mandated responsibility to improve
levels of nutrition, is in a position to assume an active
leadership role in this area..-- Unfortunately,_this leader-
ship has not been pursued in recent years as diligently as
many-would wish, in part because of the relative slowness
of decision making in international bodies and in part also
because many of the governments which are members of the FAO
have attached relatively low priority to nutritional activities
in the FAO program and budget. The FAO has nevertheless taken
positive action in a number of nutritional areas: These
include:

(1) FAO's assistance with feeding programs, which is
primarily that of providing training materials and technical
backstoppIng, has been adequate.
(2) .Useful results have also come from the joint FAO/WHO
food contamination monitoring program. FAO reports that food
control programs have been Initiated in a number of develop-
ing countries (in Africa in particular) with the assistance of
UNDP and bilateral donor agencies. Progress was made at the
international level in the preparation of guidelines for the
establishment of food control service and the development of,
modern food legislation. This area deserves continued emphasis
and further progress can be expected.
(3) With respect to global nutrition surveillance, a meeting
of a Joint FAO/UNICEF/WHO Expert Committee on the Methodology
of Nutrition Surveillance was held. This is an area in which
many practical problems of methodology remain to be worked out
and tested before a large scale effort would be cost efficient.
FAO's logical contribution to the total effort would appear to
be in assessing the adequacy of the supply of nutrients provided
to a given population by local food production and available
f6od supplies. This approach is in fact being taken by FAO.
This effort is linked to the Food Information and Global Warning
System; therefore, progress by FAO in this nutrition effort will
depend on progress in the latter area.









(4) Leadership within the Nutrition Division of FAO put
major-emphasis on providing governments with assistance
in Intersectoral food and nutrition planning. Major
budget increases were proposed int this area and several
meetings were held-with representatives of other organiza-
tions and agencies in the UN family and bilateral aid
agencies to review proposals made by FAO for cooperative
effort in this area. Many inadequacies were apparent in
the proposals. These were partially corrected in response
to suggestions from the U.S. and other countries and from
other organizations and agencies. Because the early
proposals from the FAO. secretariat were not well thought
out, the U.S. urged a slower expansion of funding in this
area to Insure efficient use of funds. This course of
action is being followed by the FAO secretariat.
(5) Another recommendation of the WFC concerned cooperative
effort among FAO, WHO, and UNICEF to promote coordinated
programs i-n applied nutrition research. FAO organized and
held a meeting in 1975 of representatives of FAO, WHO,
UNESCO, UNICEF, SFC, WFP' UN, UNOP, World Bank, PAG and
several bilateral aid agencies, and recommendations for
establishing a coordinated effort were developed. This
area is receiving continued support in FAO. One specific
action undertaken to improve the effectiveness and cost
efficiency of FAO's work in applied nutrition Is a cooper-
ative agreement being negotiated between FAO and the Agri-
cultural Research Service of the U.S. Department of
Agriculture. This agreement provides for cooperative action,
with the USDA's Nutrient Data Bank serving FAO as well as the
United States as a repository and processing center for
data on the nutritional composition of foods, information
that is essential to most efforts to .improve nutrition.

Overall, some progress has been made in implementing recom-
mendations of the WFC. With changes that are taking place in
leadership within the FAO secretariat, further progress can be
expected, probably at as rapid a rate as would be possible
without excessive waste of funds.













Resolution Vt World Soil Charter and Land Capability Assessment

The Resolution recommends that governments take soil protection and
conservation measures along with other sound agricultural practices
to Intensity grazing, crop production and bringing new lands into
production. It also recommends that FAO, UNESCO, UNDP, WHO and other
Interested organizations undertake assessment on lands that can still
be brought into cultivation, with a view to halting irreversible
soil degration and also providing a basis for cost estimates for
agricultural inputs required for restoration of land. The Resolution
urges FAO to select appropriate ways and means to establish a World
Soil Charter, as the basis for International cooperation in rational
use of world land resources.
FAO and UNESCO are continuing their work on a World Soil Map. It
could when finished provide an updated and more accurate assessment
than any existing.

The World Soil Charter is a European initiative. A draft charter
was discussed and published by. the Council of Europe in 1973. The
Charter emphasizes the relationships between national uses of soils
and water, and international consequences. It proposes international
agreements and international standards for the prevention of soil
degradation. The U.S. government has no recent information about
this project.

AID has a number of programs (studies, workshops, symposium, etc.)
that are focused on the development and transference of appropriate
soil management techniques for both the new land and for lands with
new and higher intensity for agricultural production. For the
properly Identified (classified) soils the management systems and
management problems are predictable. Recognition and consideration
by the developing countries of this fact of response predictability.
of known-soils will have far reaching effects on the efficient
utilization of resources and on the possibilities of success or
failure of individual projects in their overall national agricultural
programs. AID is strongly promoting the idea of making inventories
of the soil resources of the developing nations.














Resolution VII: Scientific Water Management: Irrigation, Drainage
and Flood Control

The Resolution recommends urgent action by governments and international
organizations (FAO, WHO), other International agencies, and governments
to undertake:
Climatic, hydrological, Irrigation and desert research on
potential water power, health safety, and related matters;
surveys and other measures related to ground-water potential;
flood protection and control; drainage systems and salinity;
and control of "desert creep".

The resolution calls on International organizations and governments
to Increase financial resources for these undertakings. It also urges
governments and international agencies to Increase resources for research
and to make arrangements for meeting energy requirements for irrigation,
including solar and wind power. It also urges strengthening or initiation
of research and training in all aspects of technology and water delivery .
systems.

The important role of water is agricultural development has been recog-
nizedby practically all agencies involved with development. Almost
every country in the world now has some program of identifying and
quantifying its water resource.
AID, development banks, and other aid-granting organizations
are heavily involved in giving assistance to the development
of irrigation projects. There is a growing trend however,
to devote more attention to Improving existing systems. It
has been recognized that wasted water in irrigation is not
only costly but, creates the problems of water-logging and
salinity.
AID's research program in Pakistan is developing techniques
and guidelines which small farmers can utilize to greatly
Improve the efficiency of use of the water which is in
the irrigation systems. Other countries, for example,
Egypt and Sri Lanka, are considering the development of
similar adaptive research programs which define the water
management problems and prescribe, through testing,
appropriate solutions.













Another AID research project is exploring the possibility
of rapidly creating mutations in agricultural plants to
resolve certain basic environmental constraints such as
salt, drought and aluminum toxicity in the soils. This
subject matter will be high-lighted at an International
Workshop In November 1976.
AID is testing a hypothesis for agro-technology transferance
from onetropical region to another based on soil taxonomic
classification and will cover such subject matters as
-e dibility, efficiency of Irrigation,-water holding capacity
and moisture availability.












Resolut'n VYII: Women and Food

This Resolution calls on all governments to provide to women in law
and In fact medical, health, nutrition and other services required for
nurture and growth of healthy children;

..... to include in their national plans provision for education
and training on an equal basis with men in all aspects of
food and agricultural production, marketing, distribution,
credit, consumer and nutrition information;
Q
to promote equal rights for men and women, In order that
their energy, talent and ability may be fully utilized with
men in partnership against world hunger.

There has been considerable "follow-up" of this Resolution both at the
United Nations level, and by individual governments, Including that
of the United States.

The resolution encompasses recognition of the roles women play in food
production, Its Importance to immediate family health and nutrition, and
the need for specific action on the part of governments to ensure that
women are integrated in all aspects of decision-making, training, tech-
nical assistance and services related to food production and utilization
on an equal basis with men.

The United Nations has taken a number of important steps relating to this
Resolution with strong support from the United States. The FAO Council
in June 1975 adopted a preceaent-setting resolution, "Integration of
Women in Agricultural and Rural Development and Nutrition Policies." This
included provisions as well for FAO to ensure equal treatment for women
and men in recruitment, promotion, etc. within the Organization. WFP,.
at its 28th Intergovernmental Committee Session, by the FAO Conference
in September 1975, took similar action. This was strengthened and
adopted by the'-FAO Conference in November 1975. FAO and WFP also pro-
duced comprehensive reports on women and food issues for the Inter-
national Women's Year Conference in Mexico in mid-1975. Many of the
findings and recommendations in these reports are Included In the World
Plan of Action and 34 Resolutions adopted by the IWY Conference and
later unanimously approved by the UN General Assembly.











In September 1976, another precedent was set by the UN Commission on
the Status of Women, which adopted a new section on rural development
In Its Convention to Eliminate Discrimination Against Women. This
convention must be approved By the General Assembly to become binding
on all member states. Policies and plans of UNDP, UNICEF, WHO and
others of the UN system during 1975 and 1976 complement this trend.
The objectives of these actions were essentially to (a) ameliorate
the conditions and enhance the rewards for women in rural areas and
(b) ensure that women are provided knowledge and'resources needed to
improve family living conditions and contributions to food production
and related agricultural activities.

Other donors have taken a more active interest since 1975 in the roles
and status of women, particularly rural women, and have recognized
the dual need for integration of women in agricultural development as
well as provisions for recruitment and promotion of women to senior
posts within their own organizations. In the past few months, most
Western donors have Initiated special appointments of women and task
forces to focus on women in development, with particular emphasis on
rural women. Their program concepts are similar to those .of our foreign
aid program.
AID is actively pursuing similar goals in accordance with Congressional
mandates of 1973, 1974 and 1975 foreign assistance legislation, requir-
ing that all bilateral and multilateral programs pay particular attention
to the integration of women in their national economies. For example:

Since 1974, AID has had a Coordinator for Women in Development,
responsible directly to the AID Administrator. The Office
monitors and guides implementation and provides catalytic
assistance to the integration of women in the development
process, with particular emphasis on the agricultural and
rural development sectors. The Office has provided more
than $500,000 to date in support of seminars and conferences
In the US and abroad, baseline research in rural areas of
four countries, and special projects in two others, plus
development and distribution of training materials.

AID has a world-wide liaison system consisting of personnel
especially assigned in field, missions and in AID/W Offices
and Bureaus to assist in the design, implementation and
evaluation of projects. These and other personnel in
Washington provide the nucleus of the review committee of
experts serving the Coordinator's Office, principally on
matters of special research.












- At the time of the previous report, AID had initiated
projects with specific emphasis on women in food and
nutrition, principally in African countries, and had
visited 11 Agency Missions in North Africa, the Middle
and Far East, and Central America to assist with the
Integration of women in the rural development programs.
The number of countries reporting projects has risen
to 37, and there are now regional projects in all areas.
The focus is mainly on rural development, nutrition,
family planning, health and agricultural-related
activities.

As a result of the AID-instigated seminer on Women in
Development for donor representatives to the OECD
Development Assistance Committee in October 1975, at
least six donor country foreign aid programs have
structured coordinating units or task forces to serve
similarly to AID's Coordinator's Office.
AID personnel served on Delegations to the Inter-American
Commission on Women, Organization of American States, and
the UN Commission on the Status of Women session in 1976.
These meetings resulted respectively in a Regional Plan
of Action for Latin America emphasizing rural development,
and Insertion of a special section on women in rural
development in the new Convention to Eliminate Discrimina-
tion Against Women. These were precedent-setting actions.
AID is now employing a computerized data bank and retrieval
system to demonstrate special emphasis on women in develop-
ment, with delineation of rural development, nutrition and
population programs focused principally on women.

AID Is also working with the ON Research Institute in
Social Development to produce special Indicators for
women in development and for rural development in general.











Resolution IX: Achievement of a Desirable Balance Between Population
aid Food Supply

The Resolution calls on all governments and people everywhere to under-
take, as a short-range goal, the growing and equitable distribution of
sufficient food to "all human beings" for an adequate diet; and also to
support, as a longer-term solution, rational population policies en-
suring to couples the right to determine the number and spacing of
births, freely and responsibly, in accordance with needs and within
a development strategy.
In this resolution, the Food Conference gave worldwide recognition to
the critical relationship between population and food. Over the past
decade much has been accomplished to help achieve a desirable balance
between food supply and population through the development of population
policies and adoption of family planning practices to reduce population
growth rates:
The World Population Year, the World Population Conference,
the World Population-PTan of Action approved by 136 nations
and calling for provision of family planning information
and means to all individuals and couples, and the interna-
tional Women's Year Conference, have greatly increased
awareness of population problems and the acceptability of
action programs;

Most nations have removed restrictions on provision of
family planning information and means to their populations,
and more than 50 nations now have national family planning
programs many of them far advanced.
Rapid improvement in fertility control technology has been
accomplished during the last several years with increasing
availability of colored and lubricated condoms, lower dose
oral contraceptives with iron tablets, and simplified
techniques of female sterilization and pregnancy termina-
tion which now permit such surgery to be performed as an
out-patient procedure under local anesthesia.
-- Family planning programs have already largely accomplished
their purpose in a number of developing countries --
Singapore, Hong Kong, Taiwan where Information and the












most effective means have been made generally available
and where birth rates are now approximate 20 per 1000.
In Korea bilateral USAID population program assistance
was completed In fiscal 1975;
- In nine additional developing countries family planning
education and service programs have reached the point
where termination.of USAID bilateral population program
assistance could be possible within several years -
Philippines, Thailand, Indonesia, Tunisia, Colombia,
Costa. Rica, El Salvador, Jamaica and Panama.
The annual increment In world population the product
of the world population x its growth rate was approxi-
mately 66 million In 1965 and 63 million In 1974. But
the peak annual population Increment occurred about 1970,
with approximately 70 million people added that year.
An accelerating downward trend Is now underway.
SThrough FY 1977, the U.S. through'AID will have provided
more than $1 billion for international population programs
assistance more than half of all such assistance to the
developing countries. These AID-resources have been applied
as follows:
$142 million to the the United Nations Fund for Population
Activities, approximately 45% of UN population resources;

$82 million to the International Planned Parenthood
Federation, approximately 36% of IPPF resources;

$105 million to four other action Intermediaries -
Pathfinder Fund, Population Council, Family Planning
International Assistance, and the Association for
Voluntary Sterilization;
$50 million for research and development of new and
improved means of fertility control;

$160 million for purchase and transportation of contra-
ceptives and clinical supplies;













$261 million for support of family planning programs
in 43 countries on a bilateral basis (exclusive of
contraceptives). Foremost recipients of USAID
assistance have been:
Philippines Tunisia
India Korea
Indonesia Afghanistan
Pakistan Ecuador
Thailand Ghana

$170 million for development of more adequate demographic
data, training, research on determinants and consequences
of fertility, policy development, and evaluation;

$34 million for administration of the program.
- In Bangladesh, some 19,000 family planning workers, the training
of whom was financed in part by AID are providing family
planning information and contraceptives.. The Government of
Bangladesh plans to increase that number to 30,000 workers
shortly. A national commercial network for distributing con-
traceptives has started through an American organization under
AID contract.
- In Pakistan, a national effort aimed primarily at rural illiterate
couples is receiving major support from AID. About 4,200
family planning teams cover 75% of the population of Pakistan.
The Government of Pakistan is considering mass production of
condoms in the near future. The GOP is in the midst of an
ambitious effort to energize the program and motivate couples
to practice family planning.

- In Philippines, largely as a result of AID assistance, 2,400
clinics now provide full family planning services and recruit
about 54,000 new acceptors each month. The program emphasizes
increasing services to rural areas, promoting commercial dis-
tribution of contraceptives, and expanding sterilization
services.











SThe Government of Indonesia Family Planning Program, working
basically through 2,675 clinics and with support from AID
and other donors has been able to achieve a level of new
acceptors of family planning of 6.4 million of whom 48% are
continuing acceptors. In 10 of the remaining 21 outer island
provinces not covered by.the program, the government moved
to bring in family planning services beginning in 1975. At
last report the program was moving well.
- While the clinic-based program seemed to be relatively
successful, to reduce the danger of possible program slow-
down, which seems to be inherent in clinic-based programs,
about 19 months ago the Indonesians undertook a study leading
to the establishment of village contraceptive delivery
centers. As of March 1976 some 3,400 centers had been es-
tablished. The GOt is looking to a further and rapid
expansion of the village distribution center concept.











Resolution X: Pesticides

This Resolution called on FAO, other International organizations
and member governments and industry to review pesticide supply/demand
information, investment requirements, regulatory procedures, and
alternate methods of pest control. Specifically, the Resolution called
on FAO, in cooperation with UNEP, WHO, UNIDO, member governments and
Industry, to convene on an urgent basis an ad hoc consultation to
recommend ways and means to give effect to this Resolution.

This ad hoc consultation was held in Rome from April 7 to 11, 1975,
and our AID/W representative was a member of the U.S. delegation. The
consultation elaborated upon Resolution X of the World Food Congress
and prepared 14 specific resolutions. Of these resolutions the first
three on (i) training in efficient, safe and effective use of pesticides,
(1ii) efficient and safe application of pesticides and (iii) improved
plant protection services, particularly in developing countries have
been closely followed by AID in designing and Implementing technical
assistance programs to LDCs.
*
In 1976

AID continued to contract with University of California,
Berkeley for expert-advice on integrated pest management.
Pest and pesticide management training LDC pesticide
residue laboratory support and regulatory procedure
standardization are ongoing.
An Environment Impact Statement of AID pesticide
activities. is being undertaken. The resultant document
will critically assess the past, present, and future
AID pesticide related programs and establish guidelines
to minimize hazards and maximize benefits.

AID maintains liaison with FAO, UNEP, WHO, other Inter-
national organizations and member governments on pesticide
and pest management meetings and programs. Assistance in
developing national programs in various pesticide
activities such as use, regulation, residue monitoring,
and disposal is provided.











- "For example, a pesticide management workshop was scheduled
for Guatemala CTty from February 2 through 7, 1976
(suspended by the earthquake of 3-4 February) and will be
rescheduled, at the request of government representatives,
at an appropriate time. Representatives of the project
also participated and assisted in a similar workshop
sponsored by the Far East Regional Office of WHO in the
Philippines from September 6 to 10, 1976. Of particular
importance, is a report prepared by the Project on "The
Agromedical Approach to Pesticide Management" for the use
of professional workers and administrators in agriculture
and health in developing countries.
AID also continues to contract with a number of other
U.S. universities with the objective of developing ways
and means of increasing good crop productivity in LDCs.
These projects include the improvement of the genetic
resistance of sorghum to major diseases and insect pests
(Texas A&M University), disease and insect control in
food legumes (University of Puerto Rico), development of
integrated pest management programs for the control of
root-knot nematodes (North Carolina State University),
and development of weed control systems for LDCs (Oregon
State University).
- AID plans to send a delegation to an FAO expert consulta-
tion in Decenmber 1976.
Finally, AID is continuing its contract (initiated in
FY 1976) with the Department of the Interior to develop
methods other than the use of broad spectrum poisons for
the control of noxious vertebrate pests including grain-
eating birds and rodents in LDCs."











Resolution XI: Programme for the Control of African Animal Trypanosomiasis

This Resolution reconinmmends that FAO in cooperation with other governments
and organizations launch a long-term program for the control of African
animal trypanosomiasis.
The Resolution also called for establishment within FAO of a small
coordinating unit for the first phase of the program concerned with train-
ing, pilot field control projects and applied research, and to "mobilize
funds and services' for this program.

Trypanosomiasis and its vector the Tsetse fly constitute a major
barrier to agricultural and livestock development in Africa.
As a result of the Reconmmendation XI of the World Food Conference FAO
has developed a 40 year plan to Control Trypanosomiasis in Africa.
Often at an international meeting on the subject in Ghana in December
1975, FAO announced a preliminary 5 year phase of the operation which
provides for an FAO coordinating unit, a review of pesticide formula-
tion and application, and the development of professional and technical
workers training centers. A major control program sponsored by African
nations and other donor agencies.

FAO has announced a technical meeting of participating countries and
major donor agencies for the purpose of coordinating all control pro-
grams. This meeting originally scheduled for late February or early
March 1977 has been postponed until fall 1977 in order to develop more
effective participation and planning.
AID is carrying out a research project in Tanzania on a biological
control system for controlling the Tsetse fly, the vector of
trypanosomiasis.
Recently the Agency has inaugurated an extensive tsetse fly control
program in Mali, West Africa.
AID is also cooperating very closely with FAO and other donor agencies
in coordination of country funded trypanosomiasis control activities.
This activity resulted from an International Symposium on Trypanosomiasis
control held in London in August 1976.












Resolution XII: Seed Industry Development

This Resolution recommends that governments take measures to promote
the seed industry and recommends that FAO strengthen its seed industry
development program. It urges governments of developing countries to
make short and long-term plans Including coinitments of mnpower, In-
stitutional and financial resources for development of the seed in-
dustry; it also suggest governments and other parties to take measures
at all stages of production, distribution, and marketing to insure
quality control of seeds. It recommends strengthening of FAO's Seed
Industry Development Program to provide training in technical and
management aspects of the seed industry for the benefit of national
seed production and utilization efforts.
AID has initiated discussions with FAO on means to involve
the commercial seed industry of the U.S. and other developed
countries In the establishment and strengthening of viable
seed industries in developing countries. Prospects appear
good for an effective joint AID-FAO-action program in this
field. .
-- The AID contract program with Mississippi State University,
for advice and technical assistance in seed program development,
continues to operate effectively.
AID-funded program for seed industry development are under-
way in Tanzania, Cameroons, Thailand, Costa Rica, Ecuador,
and Honduras and soon will be initiated in Ghana, Rwanda,
Chad, and the Central African Republic.

SDiscussions have been undertaken by AID with representatives
of the U.S. commercial seed trade to encourage trade partici-
pation in seed industry development activities.










Resolution XIII: International Fund for Agricultural Development (IFAD)

Resolution XIII on IFAD was a major accomplishment of the World Food
-Conference. An OPEC Initiative, It received widespread support due
to the recognition of the importance of increasing agricultural pro-'
duction among developing countries if the world's food problems are
to be met. IFAD was proposed as a means of providing concessional
financing for viable projects aimed at both increasing food production
and improving the nutritional level in the poor food deficit countries.
It was not conceived as a new institution duplicating existing bilateral
and multilateral program but as a central source of funding increased
food production. Major emphasis was placed on its reliance on existing
international financial institutions (IFIs) to identify projects and
administer the loans.
IFAD has also become an important element in the North/South dialogue.
At an early Session of the -Development Commission of the Conference
on International Economic Cooperation (CIEC), unanimous agreement
was reached on a statement urging IFAD's early establishment. A
successful IFAD would have important implications for CIEC. Further,
IFAD offers an important opportunity for cooperatlon-between OECD and.
OPEC countries to meet significant development needs of the world's
poorer countries, and for OPEC countries, to increase their share of
the development finance burden.
Resolution xrrr outlined the general terms of reference which have
guided the IFAD negotiating process. The most significant of these are:

a) Voluntary funding from all developed countries and all developing
countries in a position to do so.
b) IFAD would be administered by a Governing Board consisting of
representatives of the following categories of countries:

I) contributing developed countries;
il) contributing developing countries; and


ii') potential recipient countries.












Due account must be taken of the need for equitable representation
among the three categories, and regional balance among the recipients.

c) IFAD disbursements should be carried out through existing
International and regional institutions according to criteria and
regulations established by the Governing Board.
d) IFAD becomes operational when the U.N. Secretary General
determines in consultation with representatives of countries who
pledge funds to IFAD, that the funds are adequate.

First Meeting of Interasted ;Govprnmpnt

U.N. General Assembly Resolution 3348 (XXIX) called on the Secretary
General to convene a meeting of Interested governments to work out
the details of IFAD. This meeting, attended by 66 countries (including
most OPEC and major OECD countries), was held in Geneva May 5-6 1975.
WFile mainly devoted to a general discussion of the need for IFAD,
the meeting did have two concrete results:
a) adoption of a Saudi proposal for a SDR $1 billion initial
capitalization for IFAD; and
b) establishment of an Ad Hoc Working Group with 27 countries
(9 from each category) to make recommendations regarding funding,
organization, operations and legal instruments needed to implement
Resolution XIII.

Other concepts discussed at this meeting which had an important In-
fluence on later negotiations were the link between Board representa-
tion of OECD and OPEC countries and relative contributions; and the
need for a small IFAD professional staff with the IFIs, UNDP and
FAO providing technical and administrative services.












Ad Hoc Working Group Meetings

The Ad Hoc Working Group held two meetings (June 30-July 4, 1975 and
September 22-27, 1976) and accomplished the following tasks:
a) completion of the text of a draft Articles of Agreement on the
overall structure of IFAD;
b) agreement that IFAD should be a U.N. Specialized Agency with
autonomy in policy formulation and operations; and
c) adoption of a Saudi compromise proposal that the voting system
would be based on the principle of equal division of voting power among
the three categories of countries.

U.S. Support for IFAD
Initially, the U.S. and other developed countries were not enthusiastic
about the creation of a new institution which, at the onset, appeared
duplicative of multilateral .and bilateral aid efforts already underway
to meet additional needs. However, the U.S. and other developed countries
agreed to support IFAD provided there were substantial OPEC contributions
for IFAD and that the new institution, rather than creating a large
staff, would use existing institutions for technical and supervisory
operations.

Secretary Kissinger announced substantial support for IFAD at the
September 1975 UN Special Session, when he indicated that the U.S.
was prepared to seek Congressional appropriation of a $200 million
direct contribution to IFAD "...provided that others will add their
support for a combined goal of at least $1 billion". In December 1975,
the Congress authorized the $200 million contingent on IFAD's reaching
the $1 billion target and equitable burden sharing amount the categories
of contributors.
Second Meeting of Interested Governments

By the time of the Second Meeting of Interested Governments in Rome in
October 27-November 1, 1975, considerable political momentum had been
created toward the establishment of IFAD. This momentum overcame the
lack of agreement on many of the major issues such as the voting system,
operations and funding.












The meeting adopted a draft resolution for submission to the UN
General Assembly. This was significant since its passage at the
end of the Thirtieth Session of the General Assembly made it possible
to call an IFAD Plenipotentiary Conference before the end of 1976. '

Third Meeting of Interested Governments
When the Third Meeting of Interested Governments took place In Rome
January 28-February 6, 1976, there was general recognition that prompt
agreement was necessary on rFAD's institutional elements or the entire
initiative could fall. As a result, this important meeting was
characterized by:
a) Completion and approval of the draft Articles of Agreement.
The Articles were highlighted by:
I) Freedom for each category to determine the distribution
of votes in that category and agreement on the decision
making- majorities required for IFAD decisions;
ii) IFAD's use of international institutions for the
administration of projects in its 'financing operations;
and
iii) Requirement that pledges total $1 billion before the
Articles would be opened for signature; and ratification
by countries contributing at least $750 million before
the IFAD Agreement enters into force;
b) Arrangements for convening the Plenipotentiary Conference;
c) Preparation of a draft Resolution establishing an IFAD
Preparatory Commission (Prepcom).

Plenipotentiary Conference
The Plenipotentiary Conference was held in Rome June 10-12, 1976.
While called to open the IFAD Agreement for signature, it failed to
accomplish this goal since total pledges still fell short of the
agreed $1 billion target.












When the OPEC Finance HiMntstars coxnuttted $400 mil lion to IFAD from
the $800 million OPEC Special Fund, this pledge was conditioned on
a contribution by OECD countries of at least $600 million. At the
same time, thie U.S. and other OECD countries argued for an equitable
burden sharing between OPEC and OECD countries. By the time of the
Conference, total pledges in convertible currencies were $935 million,
with $527 million from the OECD; $400 million from OPEC and $8 million
from the non-oil producing LDCs.
SRather than begin IFAD at a lower level, the Conference changed pro-
visions of the Articles of Agreement so that if the target was not
reached by September 30, 1976, the Prepcom would call a meeting of
all prospective IFAD members before January 31, 1977 to determine
whether the target should be modified.
The June Conference also formalized the Prepcom, and charged it with
the responsibility for preparing by-laws and regulations which will
permit IFAD to begin operations soon after the Agreement enters Into
force.

Prepcom Meetings
The Prepcom held its first session in Rome September 27-30, 1976 amid
continuing concern over the funding Issue. In addition to electing
Saudi Ambassador to the FAO A.M. Sudeary as Prepcom adopted rules of
procedure and established an interim secretariat. Also, the Prepcom
decided that, assisted by the interim secretariat and a working
committee of experts, It would begin work on developing the lending
criteria and policies to govern IFAD operations.
An important feature of the Prepcom was the September 30 report on the
status of IFAD pledges. Significantly, Iran decided to increase its
already substantial $104.75 million contribution to IFAD through the
OPEC Special Fund by an additional $20 million. This statesmanlike
act Increased total OPEC pledges to $420 million. OECD pledges stood
at $540.5 million and non-oil producing LDC pledges stood at $8.7Tmillion.
Thus total freely convertible pledges were $969.2 million, or still
about $30 million short of the target.












Nevertheless, optimism concerning IFAD funding prompted the Prepcom
to defer a decision to call a meeting of interested governments until
the Second Session of the UFAD Prepcom scheduled to begin December 13,
Despite the differences that have arisen between the three categories
during the IUAD negotiations, the recent prepcom meeting showed con-
siderable willingness on the part of all countries to cooperate to
ensure the early establisFhment of IFAD, We are optimistic that the
funding impasse can be overcome by a concerted effort by all categories.
Further we are encouraged that the spirit of cooperation which has
characterized recent IFAD deliberations will continue, allowing IFAD
to promptly begin its important task of dealing with the serious food
production and nutrition problems facing .the developing world.










Resolution XIV: Reduction of Military Expenditures

The Resolution calls on governments attending the Conference to take
measures to reduce their military expenditures on behalf of develop-
ment and to allocate Increasing proportion of these sums to financing
of food production In developing countries and to building up of
food reserves for emergency cases.
The U.S. and fifteen other nations stated that they would have ab-
stained had the Conference voted on this Resolution. The U.S. has
consistently taken the position that appropriate levels of military
expenditures were outside the purview of the World Food Conference.
Nevertheless, underdeveloped countries have continued to raise this
question, most recently at the second World Food Council meeting.

Resolution XV: Aid to Victims of Colonial Wars

The Resolution calls on Director-General of FAO and Executive Director
of WFP to Intensify efforts to supply food aid to victims of "colonial
wars" In a number of specified countries. It requests the Secretary-
General to assist the national liberation movements in their national
reconstruction, and calls on governments and non-governmental organiza-
tions to provide assistance to compensate these countries for damages
suffered through military conflict.
Under this mandate, the UN/FAO World Food Program (WFP) has channeled
over $20 million into projects and emergency assistance for Angola,
Cape Verde Islands, Guinea-Bissau, Mozambique, Sao Tome and Principe.
The WFP activities Include feeding vulnerable groups and school children,
resettlement of displaced persons and refugees, and food-for-work
projects for agricultural development. The WFP has also given assistance
to Portugal to assist 350,000 Portuguese nationals who were displaced
from Africa.












Resolution XVr: Global Information and Early Warning System
on Food and Agriculture

The Resolution authorizes establishment of a Global Information and
Early-Warning System on Food and Agriculture to be operated and
supervised by FAO. The Resolution requests all governments to par-
ticipate fully In the System, by collecting statistical and other
data on a wide range of factors affecting food and agricultural
supplies, trade, etc., and requests governments, when necessary or
desirable, to improve their own data system to facilitate the global
System. The Resolution provides for wide-spread dissemination of
these data, and requests the WMO (World Meteorological Organization)
to provide, as its contribution to the System, data on a wide range
of matters relating to climatic changes and-conditions.

The major responsibility for establishing the System is with FAO.
Within the U.S. Government, the U.S. Department of Agriculture is
responsible for providing U.S. data as an input to the System and for
general liaison and monitoring. The U.S. Agency for International
Development (A.I.D.) is indirectly supporting the strengthening of
this important System through its technical assistance program for
developing countries.
AID has a number of projects in developing countries that are aimed at
strengthening the capability of those countries to do their own analyses
of policy issues related to agriculture and rural development and to
improve planning capability as a basis for more rational social and
economic policy decisions. An integral part of these activities in-
variably is the need for improved data, among other things, on food
production and consumption. As these data series are improved, the
Global System should benefit.

Following the World Food Conference, AID decided to put Increased
emphasis on this problem. An "Expanded Program of Economic Analysis
for Agricultural and Rural Sector Planning" was developed, with an
approved funding level of-up to 5.3 million dollars for the initial
three years. This new Expanded Program provides a mechanism for
enlisting the help of several U.S. universities which have particular
strengths in related areas to work collaboratively with AID and with
developing country institutions to strengthen the capacity of these
countries in policy analysis and associated data systems regarding
food and agriculture..











AID also is assisting selected developing countries to use earth
satellite and remote sensing technologies as a means of improving
the countries' data on natural resources and food production. As
these technologies are Improved, the Agency will be prepared to
give more emphasis to assisting the developing countries to take
advantage of them.

Resolution XVII: World Food Security

With world grain stocks at their lowest level in more than 20 years,
the WFC recognized that priority should be given to the establishment
of an international grain reserve. In addition to endorsing the FAO
International Undertaking on World Food Security, the Conference
suggested that major food producers, consumers and traders meet at
an early date to accelerate the creation of an international system
of nationally held reserves.
The Conference.called on FAO to complete the operational and technical
arrangements required for implementation of the undertaking on food
security including practical examination of financial and administrative
problems involved.
In pursuance of this Resolution the United States invited representatives
of nine countries and the European Community to convene in London in
February 1975 to explore the feasibility of a reserve system. We have
followed up this initiative in the framework of the International Wheat
Council which has established a special working group to examine
possibilities, including the establishment of international grain
reserves, for a new agreement to succeed the International Wheat Agree-
ment of 1971. This study of reserves and other provisions that might
be Included in a new agreement is continuing.





68.


Progress toward establishment of a reserve system has been slow
because of the complex task of resolving differences among par-
ticipating countries, especially over the trade aspects of a new
agreement, and because of the inevitable close relationship with
the broader Multilateral Trade Negotiations taking place under
the GATT.
The Committee on World Food Security held its first session In
Rome in April 1976 to evaluate the food security situation and
adequacy of world cereal stocks and to examine Implementation of
the International Undertaking on World Food Security, particularly
with respect to special assistance to developing countries, national
grain stocks policies and progress In the establishment of a Global
Information and Early Warning System for Food and agriculture. The
most recent meeting of Committee on Food Security was held in Rome,
November 1976.













Resolution XVII: An TImproved Policy for Food Aid

This resolution contains seven specific recommendations to governments
and International organizations to improve food aid policies and pro-
grams. The following statements, made in the context of U.S. Govern-
ment activities, update the Information contained in the November 6,
1975 report to the Senate Subcommittee on Foreign Agricultural Policy:
SSuggestion one calls for a minimum continuity of food aid
levels to protect against price and production changes.
As a member of the Food Aid-Convention, the U.S. continues
to provide a generous share of the grain pledged under
this convention, i.e., 45% of the total 4.2 million tons
pledged.
Suggestion two recommends that donor countries agree to
10 million tons of grain of food aid per year and that
they implement forward planning of food aid. During
FY 1976 the major donors committed 9.2 million tons of
which about 50% was provided, by the United States. The
U.S. is programming 5.6 million tons for FY 1977. We
continue to urge other donors to increase their donations
to help reach the 10 million ton level.
.- Suggestion three called upon importing and exporting countries
to meet after the World Food Conference to consider food aid
needs for the most seriously affected countries. Within
ten days following the Conference, this meeting was convened
under the chairmanship of the Director General of the FAO.
The U.S. attended andparticipated actively in_encouraging
other donors to focus greater attention on the most seriously
affected nations. Moreover, in the case of U.S. allocations
of food aid, while the present legislation may be almost too
restrictive, at l-eat 75% of all food aid allocated under
Title IT of the PL 480 sales program, starting with FY 1976,
must be to those countries with a per capital GNP of $300 p.a.
or less.












-- Suggestion four urges donor countries to channel more
food aid through the World Food Program, Increase grant
aid, consider the use of food aid repayments for nutrition
programs and emergency relief and provide additional cash ,
resources to purchase food from developing countries. U.S.
support to the World Food Program is evidenced by the fact
that we have been over a number of years, the major donor
of food to the WFP. This procedure continues'-- During
the 1975-76 biennium the U.S. contributed $140 million
consisting of $97 million for commodities, $40 million
for services and $3 million In cash. For the 1977-78
biennium the U.S. pledged $188 million, $155 million for
commodities,. $30 million for services and $3 million in
cash. Further, Sec. 201 (b) of P.L. 480 establishes a
minimum of 1.3 million tons of agricultural commodities
to be distributed each year on a grant basis of which at
least one million tons is to be distributed through non
profit voluntary agencies and the World Food Program.

SBy law, food aid repayments are deposited back into the
Commodity Credit Corporation accounts, are used to fund
future P.L. 480 programs, and therefore cannot be pro-
grammed for nutrition and emergency relief activities.
However, the U.S. has other vehicles for implementing
nutrition and emergency relief programs:

** P.L. 480 Title II commodities are used, in part
to support maternity child feeding activities.
Title II commodities are also used for emergency
relief oroqrams, e.g., in FY 1976 the U.S.
provided 5,440 MT of.blended fortified foods
to Ethiopia during a period of severe drought.
A new provision under Section 106 of P.L. 480
permits a measure of *loan forgiveness" under
Title r agreements If, inter alia, local currency
proceeds from the sales of U.S. agricultural
commodities are applied as additional Increments
to agreed purposes; efforts to improve and expand
national nutrition programs would, of course, be
given priority consideration.









** Nutrition activities are also funded through the
regular foreign assistance programs. A detailed
description is-covered under Resolution V
Policies and programmes to improve nutrition.
** Specific funds are appropriated under the Foreign
Assistance program for Contingencies and Disaster
Relief Assistance.

- Suggestion five calls for the reorganization of the Inter-
S governmental Committee (IGC).of the World Food Program to
better accommodate the food aid coordination functions
assigned to it by the World Food Conference. This was
accomplished and the new "Committee on Food Aid" (CFA)
held its first session in Rome during April 26 May 7,
1976; the second meeting is scheduled for November 15 27,
1976.
Suggestion six recommends that governments where possible
earmark stocks or funds for meeting international emergency
requirements, a.nd that guidelines be developed to implement
this aspect of the FAO*s proposed international undertaking
on World Food Security. The United Nations General Assembly
suggested a target of not less than 500,000 tons. This
issue was debated extensively during the first session of
the CFA and while there was consensus on the merits of such
a reserve, further discussion on implementation will be an
agenda item during the November 1976 meeting. It should be
noted that the U.S.' does not plan to contribute to the
Emergency Reserve, because:
** the main value of the Emergency Reserve lies in
making available additional food aid resources;
a U.S. contribution could mean a corresponding
reduction in regular program contributions to the
WFP or in U.S. bilateral food aid assistance.

** the United States strongly supports the economic
and social development role of the WFP and prefers
to pledge its multilateral food aid to that purpose.












** the United States expects to continue to be the
largest donor of emergencyfood aid, both on a
bilateral basis and, as need arise, in response
to WFP requests.

Suggestion seven recommends that some emergency stocks
be voluntarily placed at the disposal of the World Food
Program in order to increase its ability to assist in
emergency situations. The U.S. position remains unchanged,
i.e., in view of the magnitude of our own bilateral food
aid programs (including emergency food aid activities)
and in view of our already substantial contribution to
World Food Program project aid, it has not been necessary
for the U.S. to make emergency food stocks available to
the World Food Program.

In addition, other donors such as Canada provide substantial
amounts of additional food aid to the World Food Program
and therefore, emergency stock donations from the U.S. are
not necessary.








Resolution XIX: International Trade, Stabilization and Agricultural
Adjustment

This Resolution seeks to promote world food availability through
measures which will liberalize world trade in agricultural commodities,
encourage exports of agricultural commodities from developing countries,
and establish an overall integrated program for commodities to consider
new approaches to commodity problems. Nineteen separate recormmenda-
tions for actions are addressed to "all", or "developed" or "developing"
countries, to international organizations generally, and to specific
international bodies concerned with trade and/or development, especially
-UNCTAD-,FAO and World Food Program urging them to take various measures
and adopt policies which will achieve the objectives of greater liberali-
zation of trade in favor of developing countries.

The Tokyo Round of multilateral trade negotiations, under GATT auspices,
Is continuing its consideration of trade liberalization measures for
agricultural products of Interest to developing country producers,
particularly through the deliberations of its groups devoted to Tropical
Products, Agriculture, and non-tariff measures to trade. The negotiating
phase Is expected to commence early'in 1977. -

The Commodities Resolution adopted at UNCTAD IV in May sets up two
series of International consultations: (1) producer/consumer discussions
on 18 major commodities of interest to developing countries and (2)
preliminary discussions leading to a negotiating conference on a Common
Fund no later than March 1977. The U.S. will participate in the
discussion on these 18 individual commodities based on our understanding
of the UNCTAD Resolution, as stated for the record in Nairobi; namely,
(1) that these meetings are to determine--without commitment-measures
which may be appropriate to these products and (2) that actual negotia-
tions on commodity arrangements will be held as and when required by
the results of these meetings.
On January 1, 1976, the U.S. system of generalized tariff preferences
came Into effect. These preferences cover over 2700 products whose
trade value In 1975 was $2.5 billion. Moreover, as evidence of the
growth potential of the system, the covered products compete directly
with $25 billion of goods comprising 1/4 of total U.S. imports. 135
countries and dependent territories are eligible to benefit from the
system.









Resolution X)X: Payment of Expenses to Representatives of National
Liberation Movements

This Resolution requests the General Assembly to defray all travel
costs and related expenses of representatives of the national
liberation movement who have participated in the World Food Conference.

This Resolution was adopted by the General Assembly in accordance
with the procedure established for earlier UN meetings. Actual pay-
ment practice varies from meeting to meeting.

Resolution XXI: Expression of Thanks

This Resolution expresses its deep appreciation to the President of
the Republic of Italy and to all the people of the Republic of Italy
for hosting the World Food Conference.









Resolution XXII: Follow-UP Action


In addition to the substantive resolutions addressed to
member governments, to existing organizations within the
UN System and to Non-Governmental organizations, the
Conference, in Resolution XXII, recommended establishment
of several new mechanisms designed to ensure appropriate
follow-up of the Conference resolutions. The major
new bodies established are the World Food Council, the
Consultative Group on Food Production and Investment
(CGFPI) and the International Fund for Agricultural
Development (IFA)). The latter is discussed under
Resolution XIII.

World Food Council

The World Food Council composed of 36 member countries was
established to meet at the Ministerial level. Its head-
quarters is in Rome. Its Executive Director appointed by
the UN Secretary General is John A. Hannah. former Administrator
of the United States Agency for International Development.
The function of the Council is to review periodically the
world food situation and propose remedies to governments
and international organizations for resolving problems and
improving agricultural policies.

The World Food Council has met twice at the Ministerial
level to provide overall coordination and follow-up of
policies concerning food production, nutrition, food
security, trade and aid. The Council has made progress in
establishing its operating procedures and has succeeded in
ndirrowing the focus of issues for consideration to a level
that is manageable. The next meeting of the World Food
Council is scheduled for June, 19'7. It will be preceded
by preparatory work among delegations representing member
countries.

Consultative Group for Food Production and Invesbient (CuFPI)

The Conference requested the World Bank, FAO and UNDP to
organize this Group, which is composed of bilateral and
multilateral donors and representatives of developing


The CGPFI is jointly staffed by the World Bank,


countries.








FAO and UNDP. Its functions are to encourage a larger
flow of external resources to food production, and to
ensure more effective use of available resources, to
improve coordination of food production activities of
multilateral and bilateral donors.

The CGFPI has met three times under the chairmanship
of Ambassador Edward Martin of the United States. At
its most recent meeting, held In Manila In September 1976, the
group agreed to concentrate during the next year on the
.preparation and review of country food plans. This process
Is Intended to improve the effectiveness of the flow of
resources to developing countries for food production.
The CGFPI's sponsoring organizations will review the results
of this work to determine whether the Group should be con-
tinued longer than one additional year.

International Group for Agricultural Development in
_.atin America and the Caribbean (IGjADL
Although not the direct result of a World Food Conference
Resolution, this Group's establishment is a reflection of
the'Worldwide concern over the need for Increased food
production and effective mechanisms to bring this about.

In May, 1975 the Inter-American Development Bank (IDB)
Board endorsed the establishment of the International
Group for Agricultural Development In Latin America and
the Caribbean (IGAD). This consultative group was created
to identify major constraints to increasing agricultural
production, promoting rural' development and improving
nutrition in Latin America, and to find ways to combine
recipient and donor resources to overcome these constraints.
The Group will seek to promote and coordinate a greater flow
of donors' technical and financial resources for food
production and rural development.
IGAD is composed of governmental, Inter-governmental,
and private organizations in Latin America. The major
donors in the hemisphere, Including the IDB, the World Bank
and A.I.D., among others, have agreed to participate in the
Group. Latin American nations which are members of the IDB
have also been invited to participate. A.I.D. proposes to
provide roughly $200,000 over a three year period (1976-78)
to support the Secretariat of the Group. This represents
about 18 percent of the estimated budget.




UNIVERSITY OF FLORIDA

778295
3 1262 04248 2`175

The n-auqu'ra e meeting of the Grouwas held in Cancun,
Mexico in May, 1976. There Latin American Governments
and donors agreed on general lines of action, including
activities 1) to overcome the lack of trained manpower
for project development and implementation, 2) to improve
the linkages from international research centers through
national centers and extension services, to the farmers,
and 3) to reduce post harvest losses. Currently, the
Secretariat is developing more specific proposals. IGAD
will complement the Consultative Group on Food Production
and Investment (CGPFI) which will focus primarily on other
regions.