Summary programme of work and budget

council

FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS ROME

E

Ninety-fifth Session
Rome, 19-30 June 1989

SUMMARY PROGRAMME
OF WORK AND BUDGET
1990-91

CL
CL 95/3
March 1989

For reasons of economy, this document is produced in a limited number of copies.
Delegates and observers are kindly requested to bring it to the meetings and to refrain
from asking for additional copies, unless strictly indispensable.

i

MAIN FEATURES OF THE DIRECTOR-GENERAL'S PROPOSED
SUMMARY PROGRAMME OF WORK AND BUDGET 1990-91

Objective

To present a Programme of Work and Budget 1990-91 which could be approved by
consensus of all Member Nations.

Approach

In formulating the proposals, the approach has been to:

- devote the net increase entirely to technical and economic programmes;

- exercise selectivity in the allocation of additional resources to areas of manifest FAO
competence, in keeping with its mandate and in response to widespread calls for FAO
action; these areas are:

Sustainable development Policy advice
Crop/weather monitoring Women in development
Biotechnology Aquaculture
Crop protection Tropical Forestry Action Plan
Agricultural data development

maintain the TCP appropriation at a level commensurate with the requirements of the
beneficiaries of TCP assistance. The TCP appropriation which had dropped to 12.8% of
the 1988-89 effective working budget, would accordingly receive a limited net increase;

Increased resources for technical and economic programmes

Chapter 2: Technical and Economic Programmes, the substantive output of which benefits
all Member Nations, and in particular developing countries, would increase by
US$ 3.5 million, or 1.5% over the current base.

The increase for Major Programme Agriculture would be US$ 2.28 million (1.3%), for
Fisheries US$ 0.6 million (1.9%), and for Forestry US$ 0.65 million (3.1%).

Chapter 4: Technical Cooperation Programme would increase by US$ 1.75 million (2.8%).

Increasing technical posts and reducing support staff

A selective net increase in Professional technical posts (9) and a further net elimination
of General Service posts (35).

Conclusion

The result of the Director-General's approach is to submit proposals for a net programme
increase of US$ 5.5 million, or 1% over the recosted base. The provision for cost
increases reflects only partially the expected inflationary developments and mandatory
decisions regarding conditions of service of the staff.

EVOLUTION OF FAO's APPROVED BUDGET IN PROGRAMME
AND FINANCIAL TERMS

(Real costs at 1976-77 levels)

Thousands
600 z5F

76-77 78-79 80-81 82-83 84-85 86-87 88-89 90-91
Biennium Proposed

Note: The approved programme was cut by US$ 25 million in 1986-87 and by
US$ 20 million in 1988-89.

COMPARISON OF 1990-91 PROPOSED PROGRAMME BUDGET TO
1988-89 TOTAL APPROVED BUDGET BY CHAPTER
(at Lit 1 235 = US $ 1)

Contingencies (0.1)

Policy & Direction (6.8)

Common Services (3.3)

Development Support (15.6)

1990-91
(before cost increases)

Technical & Economic (47.6)

TCP (13.0)

Support Services (13.6)

PERCENTAGE OF APPROVED BUDGET FOR
ESTABLISHED POSTS

Percentage
80

75

70

65

60 -

55 -

50
74-75 76-77 78-79 80-81 82-83 84-85 86-87 88-89 90-91
Biennium

- V

Table of Contents

DIRECTOR-GENERAL'S INTRODUCTION viii

I. BACKGROUND .... ................ ................ 1

Economic and Social Aspects 1
Food and Agriculture 1
Agricultural Trade 2
External Assistance for Development 3

II. FIELD PROGRAMME ........... ....... ................ 4

Investment 4
Technical and Material Assistance 5
UNDP 6
Trust Funds 6
Food Aid 7
Support Costs 7

III. FINANCIAL FRAMEWORK .............................. 9

Payment of Current Assessments 9
Payment of Arrears 9
Contributions Outlook 10
Miscellaneous Income 10
Working Capital Fund 10
Special Reserve Account 10

IV. PROGRAMME FRAMEWORK ........................... 12

Management Guidance 12
Approach 12
Preliminary Reactions of the Programme and Finance Committees 14
Changes in Resources 15
Cross-sectoral Priorities 17

V. PROGRAMME BUDGET IMPACT ... ........................ 18

VI. COST INCREASES ......... ............... ......... 20

Methodology 20
Biennialization 20
Inflation 20
Cost Increases Table 21
Summary 25

VII. OBJECTS OF EXPENDITURE ........................... 27

VIII. COMPARISON ......... .......................... 33

A N N E X . . . . . . . . . .

INTRODUCTION ......................................

CHAPTER 1: GENERAL POLICY AND DIRECTION .................

CHAPTER 2: TECHNICAL AND ECONOMIC PROGRAMMES ............

MAJOR PROGRAMME 2.1:

Programme
Programme
Programme
Programme
Programme
Programme
Programme
Programme
Programme

2.1.1:
2.1.2:
2.1.3:
2.1.4:
2.1.5:
2.1.6:
2.1.7:
2.1.8:
2.1.9:

AGRICULTURE

Natural Resources
Crops
Livestock
Research and Technology Development
Rural Development
Nutrition
Food and Agricultural Information and Analysis
Food and Agricultural Policy
Programme Management

MAJOR PROGRAMME 2.2: FISHERIES
Programme 2.2.1: Fisheries Information
Programme 2.2.2: Fisheries Exploitation and Utilization
Programme 2.2.3: Fisheries Policy
Programme 2.2.9: Programme Management

MAJOR PROGRAMME 2.3: FORESTRY
Programme 2.3.1: Forest Resources and Environment
Programme 2.3.2: Forest Industries and Trade
Programme 2.3.3: Forest Investment and Institutions
Programme 2.3.9: Programme Management

CHAPTER 3: DEVELOPMENT SUPPORT PROGRAMMES . . .. .

MAJOR PROGRAMME 3.1: FIELD PROGRAMME LIAISON AND
DEVELOPMENT

MAJOR PROGRAMME 3.2: INVESTMENT
Programme 3.2.1: FAO/World Bank Cooperative Programme (CP)
Programme 3.2.2: Investment Support Programme (ISP)
Programme 3.2.9: Programme Management

MAJOR PROGRAMME 3.3: SPECIAL PROGRAMMES
Programme 3.3.1: Freedom from Hunger Campaign/Action
for Development
Programme 3.3.2: Andre Mayer Fellowships

MAJOR PROGRAMME 3.4: FAO REPRESENTATIVES

MAJOR PROGRAMME 3.9: PROGRAMME MANAGEMENT

CHAPTER 4: TECHNICAL COOPERATION PROGRAMME . . . .

39
46
53
58
65
72
77
82
89

89
90
92
97
99

100
100
105
108
112

114

114

CHAPTER 5: SUPPORT SERVICES ........................... 122

MAJOR PROGRAMME 5.1: INFORMATION AND DOCUMENTATION 122
Programme 5.1.1: Public Information 122
Programme 5.1.2: Library 123
Programme 5.1.3: Publications 123

MAJOR PROGRAMME 5.2: ADMINISTRATION 124
Programme 5.2.1: Administrative Services 124
Programme 5.2.2: Financial Services 125
Programme 5.2.3: Computer Services 125
Programme 5.2.4: Personnel Services 125

MAJOR PROGRAMME 5.9: PROGRAMME MANAGEMENT 126

CHAPTER 6: COMMON SERVICES ........................... 127

CHAPTER 7: CONTINGENCIES .................................. 128

Provision for Regional Offices 1990-91 . . . . ... ..... .129

- ix -

DIRECTOR-GENERAL'S INTRODUCTION

The preparation of a Summary Programme of Work and Budget is always
a time to take stock and to look forward.

From both points of view I present this Summary Programme of Work and
Budget with a sense of the Organization experiencing renewed vigour, a
revived commitment and an enhanced promise of fulfilment. There is every
reason to do so. The increasing pressures on the world food, agriculture,
forestry and fishery situation are all the more urgent to resolve because of
the ceaseless growth in world population, increasing by some 80 million a
year; the scant success in the fight against poverty; the increasing
problems of ensuring development on a sustainable basis; heightened tension
in world trade; the intolerable burden of external debt on developing
countries; with all problems becoming more complex and difficult to resolve.

Yet these very problems mean a full agenda of action for FAO. The
Organization does not have to seek a raison d'etre. On the contrary, the
magnitude of the demands made on FAO, and the degree to which they are
not met, attest to the confidence of Member Nations in the Organization.

By the same token the process of review set in train by the last Conference
attests to the commitment of Member Nations to further strengthen their
Organization.

A similar sober optimism may also be said to characterize the financial
situation.

In recent years the Organization has been severely put to the test by
problems of liquidity and had its programmes cut. The damage to the
programmes since 1986 has to be seen not only in terms of the curtailed
services offered to Member Nations but also in terms of preserving FAO's
accumulated expertise and ensuring its ability to adapt in a rapidly changing
world.

The management of the finances of this Organization has meant a constant
battle to ensure the required cash flow and to avoid recourse to the
authority to borrow. We have managed to do so and with the necessary
support of Member Nations we intend to continue to do so.

In brief, the large majority of Member Nations have given proof of their
willingness and readiness to meet their financial obligations promptly and in
full. Those Member Nations who encounter serious difficulties in meeting
these obligations, because of external debt and economic problems, are
striving to overcome them. And the special situation of the largest
contributor is on the verge of a solution, on the basis of a request for full
appropriation to meet obligations to UN organizations for the next year, and
a projected plan for the settlement of arrears.

The preparation of the Summary Programme of Work and Budget for
1990-91 has the distinction of being based on the process approved by the
Council, on an experimental basis, at its Ninety-fourth session, by which the
Programme and Finance Committees met in a Joint Session (Rome,
30 January 1 February 1989) to consider a brief document I submitted,
indicating the budget level I intended to use in the preparation of the
Programme of Work and Budget 1990-91, together with the main activities
to be undertaken.

The report of this Joint Session of the Programme and Finance Committees
will be before the Council at the same time as the Summary Programme of
Work and Budget. Member Nations will judge for themselves the usefulness
of the new process and its relative merits.

What is important, above all, is to determine if the 20 Member Nations
represented in the two Committees benefited from the process. The Council,
on this occasion, has the assurance that the Committees expressed apprecia-
tion for the Outline as a policy document, endorsed the policy approach
regarding priorities and the priority areas intended to benefit from additional
resources and had an opportunity to receive a first indication of the cost
increases to be provided for, pending a fuller review by the Finance
Committee of the estimates presented in this document.

The programme priorities that I am advocating to receive net additional
resources are carefully chosen on the basis of the guidance of our inter-
governmental bodies and represent a concentration on activities which FAO
can do best and for which it has a clear comparative advantage. They
comprise: sustainable development, crop/weather monitoring, biotechnology,
crop protection, agricultural data development, policy advice, women in
development, aquaculture and the Tropical Forestry Action Plan. These are
also areas of work where FAO has a clear programme base of activities
which require additional resources.

xi -

The Summary Programme of Work and Budget shows, in a -more striking
fashion than ever before, the areas and the extent of resource reallocations
within the programme base, clearly indicating higher and lower priorities.

The Council will have the benefit of a review of these priorities, not only
by the Programme and Finance Committees at their session in May 1989,
but also the views of the Committee on Agriculture concerning Major
Programme 2.1 Agriculture and of the Committee on Fisheries regarding
Major Programme 2.2 Fisheries. My colleagues and I look forward to the
discussion in these bodies and are fully prepared to take their views into
consideration, in the light of such guidance that the Council may wish to
give, for the preparation of my proposals for the full Programme of Work
and Budget.

All these considerations lead me to submit proposals for a Summary Pro-
gramme of Work and Budget for 1990-91 involving a nominal programme
increase of US$ 5.5 million or 1 percent over the recosted budget base.
Technical and economic programmes, including the Technical Cooperation
Programme, would be the sole recipients of additional resources.

I am aware of the large majority of Member Nations who, through no fault
of theirs, and because of the programme cuts of US$ 45 million in two
biennia, have been deprived of support and services which they expected
from FAO. They look forward to a substantially larger programme growth
to compensate for the cancelled programmes and to meet their unsatisfied
and increased requirements. I am also mindful, however, of those Member
Nations who seek to limit budgetary growth. My proposals aim at
reconciling these positions in order to permit a consensus among Member
Nations.

Once again a determined review of all proposals regarding posts leads me
to envisage a net elimination of 26 posts.

The impact of these proposals in terms of assessments on Member Nations
also provides some grounds for optimism. While it is not possible to advance
meaningful estimates, at the current market dollar/lire rate of exchange the
proposed budget level would be considerably lower than indicated. Moreover
if Member Nations ensure the prompt and full payment of their assessed
contributions, our estimates of Miscellaneous Income could also be increased
with a view to lowering the burden of assessments.

XII -

The world political and social situation is showing signs of detente in many
areas hitherto beset with grave problems. The prospects for the Organiza-
tion give every sign of encouragement and hope. I am confident that
Member Nations will find in these proposals a basis for their renewed
commitment and confidence in their Organization. Indeed, as recognized by
the Programme and Finance Committees, these proposals are aimed at
helping Member Nations to unite in a consensus for the approval of a
Programme of Work and Budget. This consensus can, with good will and
understanding, become a reality.

- 1 -

I. BACKGROUND

1.1 The Council reviewed the most recent developments affecting world food and
agriculture at its Ninety-fourth Session, in November 1988, when discussing the
State of Food and Agriculture (SOFA). In view of the short time which has
elapsed since these discussions, the Council's assessment remains valid. The aspects
of the world situation which have most strongly influenced the formulation of the
Director-General's proposals are briefly recalled below.

Economic and Social Aspects

1.2 The Council noted the contrasted picture of economic and social progress in different
parts of the world. At the threshold of the Fourth International Development
Decade, economic growth and improvements in standards of living are materializing
at a greatly uneven pace, both among and within regions. Despite an increasingly
interdependent world, buoyancy is still conterminous with stagnation. In particular,
it would appear that the relatively robust global economic performance of recent
years is primarily due to the growth in the more industrialized countries, while
many low-income countries have hardly benefited. The burden of external debt and
the capital outflows from developing debtor countries continue to be a major
constraint to the resumption of economic growth in many countries, particularly in
Africa and Latin America and the Caribbean.

1.3 Many fragile economies are still proceeding on the hard path of "structural
adjustment". In this connection, the experience of developing countries with
structural adjustment programmes has often resulted in serious social costs, and
curtailed imports have impeded future growth prospects, as reported in many studies.
In view of the importance of the agricultural sector in many countries undertaking
structural adjustment programmes, FAO technical expertise could be valuable in the
formulation of new food and agriculture policy guidelines as part of the structural
adjustment process. The Council stressed the importance of FAO working closely
with other multilateral organizations to support governments requesting assistance
in their economic adjustment efforts.

Food and Agriculture

1.4 World food production has failed to increase during the past two years. Cereal
stocks, including those in developing countries, have been considerably depleted and
by the end of 1988/89 seasons would decline to a level below 17 to 18 percent of
annual consumption which is considered by FAO to be the minimum required for
world food security. Food prices, especially of cereals, have risen, making it difficult
for net food importing countries affected by foreign exchange constraints to import
food needed to maintain consumption levels. They could also result in a possible
loss of markets for exporting countries.

1.5 Apart from the effects of adverse weather, the overall decline in agricultural
production in the developed countries is also due to policy measures such as land
set aside programmes aimed at reducing production, and to the low world prices
experienced in previous years. Higher prices, reduced participation in land set aside
programmes and the resumption of more normal weather conditions, would contribute
to alleviating this situation.

1.6 While food production in the developing countries recovered slightly in 1988, the
recovery was unevenly distributed among regions and countries. There was a strong
recovery in production in Asia and a moderate one in Africa. However, more than
half of the developing countries recorded declines in per caput production in 1988.
The agricultural production increase for 1988 was also particularly disappointing in
the Latin America and Caribbean Region. 1988 will also be remembered for the
wide range of natural disasters such as droughts, floods and tropical storms, as well
as the increased incidence of locusts.

1.7 Of particular concern is the ever-present locust plague affecting a vast swathe of
Member Nations from West Africa to Eastern Asia. As a result of the intensive
control campaigns undertaken, crop losses have so far been limited but this could
change in the future as infestations are likely to recur and spread further to other
countries. Moreover, there is a distinct possibility of the plague continuing for at
least another two to three years. Thus, it would constitute a major threat for food
security and for an effective implementation of agricultural development plans in the
years to come.

1.8 The continued need for effective coordination and the unique role of FAO in this
regard were emphasized by the Council which urged that maximum support be given
to the Organization to implement this complex task. Such coordination would require
close collaboration with existing national and regional structures, the international
donor community and other relevant organizations.

1.9 Beyond continued major efforts on emergency control campaigns, the medium- and
long-term aspects need to be addressed through a range of actions: strengthening
of national and regional organizations and infrastructures; research on matters such
as improved monitoring and forecasting of Desert Locust populations, including
bio-modelling and use of satellite data, environmental impact monitoring and
improved chemical control, etc..

1.10 In a context of needed further increases in food and agricultural production to match
both expected population and income growth, the Council stressed the essential role
of technology in agricultural development and the importance of addressing
environmental issues. The Council also underlined the important role of forestry in
environmentally sound land use practices. Drawing attention to the Tropical
Forestry Action Plan (TFAP), it highlighted the vital need for the local population
to be involved in decisions governing the use of natural resources and those with
implications for the environment. Such considerations also were of paramount
importance in the fishery sector, where the recent production increases would not
be sustainable without greater recourse to aquaculture development.

Agricultural Trade

1.11 There was a welcome growth in agricultural trade in 1987, as part of a vigorous
growth in global merchandise trade. Trade in fishery and, to a lesser extent,
forestry products, has been particularly dynamic. However, the benefits of this
expansion would seem to have accrued mainly in developed countries. Among
developing countries, growth was largely limited to some Asian countries.
Agricultural export earnings declined in a majority of developing countries primarily
because of depressed prices. As a consequence, the terms of trade of developing
countries' agricultural exports deteriorated in 1987, particularly in Africa and in
Latin America and the Caribbean. The increase in international prices recorded in
1988 has been limited mainly to food commodities, predominantly exported by

- 3 -

developed countries, and certain agricultural raw materials. Prices of some
commodities of major interest to developing countries have remained depressed.

1.12 Trade in agriculture is characterized by a continued high level of protectionism.
Recent studies have underlined the adverse impact of protectionist measures on
economic growth especially in developing and also in developed countries. In this
context, the achievement of the objectives of the Ministerial Declaration on the
Uruguay Round, particularly in agriculture and as regards tropical products would
be decisive. The early and successful conclusion of ongoing negotiations, including
those on tropical products would bring new impetus to world trade. Concerned
parties, therefore, need to ensure that this process is revitalized following the
disappointing outcome by the mid-term review of the Uruguay Round of Multilateral
Trade Negotiations (MTN).

External Assistance for Development

1.13 Flows of external assistance to agriculture have been erratic in recent years.
Concessional multilateral commitments increased significantly in 1987, but only in
relation to the low level of the previous year. In real terms, such commitments
showed little growth in 1987, compared to 1984-86. At the same time, non-conces-
sional commitments fell sharply in 1987 from their unusually high level of 1986.
The Council, recalling that the major donor countries had enjoyed a protracted period
of economic growth and that low prices of their commodity imports had greatly
contributed to the curtailment of inflation, requested that efforts be made to enhance.
flows of development assistance to the rural sector, particularly in low-income
countries. In this regard, the Council emphasized that the success of the United
Nations Programme of Action for African Economic Recovery and Development
1986-1990 (PAAERD), would require in particular an improvement in external
economic conditions and the implementation of appropriate policies by the
hard-pressed African countries themselves.

1.14 From the perspective of most interest to FAO, i.e. technical cooperation for
agriculture, good prospects are in sight for UNDP resources, as the result of the
last pledging conferences. It is hoped that this will also be matched by increased
contributions of member countries, through trust fund arrangements and their own
bilateral action.

-4 -

II. FIELD PROGRAMME

2.1 The interactions between the Organization's Regular and Field Programmes are
multiple and mutually supportive. The formulation of the Regular Programme thus
needs to consider the developments and the financial prospects relating to the Field
Programme. These are summarized below.

Investment

2.2 The Organization, through its Investment Centre, has continued to mobilize external
and domestic investment for agricultural and rural development in developing
countries. To date, 745 projects prepared with FAO's assistance have been
approved for financing. Total investments involved in these projects amount to more
than US$ 34 250 million, of which US$ 17 450 million have been committed by
multilateral financing institutions.

2.3 During 1988, the Investment Centre carried out 196 missions: 106 under the
FAO/World Bank Cooperative Programme (CP) and 90 under the Investment Support
Programme (ISP). Nineteen (34 percent) of the World Bank's agricultural projects
approved for financing during the Bank's fiscal year 1988 (ending June 1988) were
prepared by the CP. The ISP continued to work at a high level with IFAD and
the African Development Bank during 1987-88. Cooperation was maintained with
the Asian Development Bank and reinitiated with the Inter-American Development
Bank. 1988 saw a strong increase in joint activities with the United Nations
Capital Development Fund. The ISP continued to work with sub-regional
development banks and, to a lesser extent, for governments directly.

2.4 In 1988, 37 projects prepared with Investment Centre assistance were approved for
financing, for total investments of some US$ 1 545 million. This amount includes
US$ 903 million in external commitments, two-thirds of which were on concessional
terms. Sub-Saharan Africa continued to receive major emphasis in the Investment
Centre activities. During the year almost half the projects approved, and 56 percent
of the projects on which the IC worked, concerned this region. In the case of the
Investment Support Programme, 72 percent of projects worked on were in
Sub-Saharan countries.

2.5 The level of work for the next two years is expected to remain the same as at
present. Proposals from the World Bank regarding its level of cooperation for fiscal
years 1991-92 within the framework of the FAO/World Bank Cooperative Programme
are not expected before 1990. It is assumed that the present level of cooperation
will be maintained. Demand from the various financing institutions for the services
of the Investment Support Programme continues to be strong. It may be noted that
the fluctuations in the level of cooperation with individual institutions, occasioned by
temporary operational problems or resource constraints of these institutions, tend to
even out in the aggregate.

- 5 -

Technical and Material Assistance

2.6 FAO's pre-investment, technical- assistance and material support programmes are
expected to rely on the same mix of funding sources, as shown in the following
table:

FIELD PROGRAM

1. FAO/UNDP P

EXPENDITURES ON FAO FLI.D PROGRAMMUIS FUNDED FROM KXTHA-BUDGrTARY SOURCES
(US$ million, by programme and programme category)

MES 1980 1981 1982 1983 1984 1985 1986 1987 1988

roqramme 167.1 182.5 141.1 116.5 109.2 115.9 128.8 128.4 160

2. Trust Fund Technical
Assistance

FAO/Government Coope-
rative Programme

32,6 38.9 44.4 43.8

56.8 65.4 73.0 72.5 77

Associate Professional
Officer Scheme

Near East Coopera-
tive Programme

Unilateral Trust
Funds

PFL Special Account

Freedom from Hunger
Campaign/AD

UN Fund for Popula-
tion Activities

UN Environment
Programme

Other UN
Organizations

Special Relief
Operations (OSRO)

International Ferti-
lizer Supply
Scheme (IFS)

Emergency Centre
Locust Oper.(ECLO)

Miscellaneous Trust
Funds

Sub-total

14.5

4.8

10.9

3.6

1.6

3.5

1.3

1.7

14.7

3,3'

6.4

98.9

14.6

3.3

13.8

4.0

1.7

2.3

0.8

2.9

30.4

2.2

5.2

120.1

13.0

3.0

24.5

2.7

1.0

1.9

0.9

3.1

15.5

12.6

1.3

33.5

1.5

1.1

0.9

1,9

4.7

12.2

3.8 0.1

5.9

119.7

6.7

120.3

13.7

0.7

38.2

0.5

1.0

1.7

0.8

10.5

5.3

13.2

0.9

42.1

0.6

1.1

2.1

0.9

9.4

4.0

12.9

0,8

34.7

0.6

0.9

1.3

0.6

7.1

4.1

3.2 1.5 1,6

S 7.0

7.2 6.4 6.6

39.6 147.6 151,.2

1Estimate

1

13.2

0.9

29.6

0.6

1.3

2.0

0.8

6.7

4.7

0.8

7.4

7.4

147.9

TOTAL 266.0 302.6 260.8 236.8 248.8 263.5 280.0 276.3 320

13

--

-6 -

UNDP

2.7 1988 witnessed a vigorous surge in FAO/UNDP delivery. This welcome development
portends a reversal of the negative trend initiated at the start of the decade. In
fact, total project expenditure experienced a continuous decline between 1981 and
1984 when it reached a low of below US$ 110 million. In 1983, the percentage
share of UNDP in FAO's extra-budgetary field programmes went for the first time
below 50 percent, but is now back to this level. Total UNDP project expenditure
is, however, still considerably lower in nominal and especially real terms than it had
been in the "peak" years of 1980 and 1981.

2.8 The pledging conference for UNDP in November 1988 has resulted in an estimated
US$ 1 300 million being available for 1989, against US$ 805 million in 1987.
This -is due to increased contributions from a number of donors, but also to the
relatively lower level of the US dollar, which has increased the dollar value of many
pledges in national currencies. The results, in real terms, compared with past
levels, indicate a possible expansion in expenditure on agriculture, provided that
vigorous efforts and strong governmental commitments are made in this connection,
during the current fourth UNDP programming cycle (1987-1991).

Trust Funds

2.9 Throughout the Eighties, there has been a steady increase in Trust Fund delivery,
which reached an estimated US$ 160 million in 1988 or about 50 percent of total
extra-budgetary field programmes. Taking into account the level of recent approvals
and expected contributions from various funding sources, this pattern is expected to
continue.

2.10 The FAO/Government Cooperative Programme (GCP) remains the major component
of the Trust Fund Programme. Estimated delivery in 1988 was US$ 77 million,
more than double the level achieved in 1980. Part of the steady growth is
attributable to projects funded by the Governments of Italy and the Netherlands.
The Associate Professional Officer Scheme has also attracted continuing support, with
an ever-growing number of APOs, especially in the field. The surge of expenditures
since 1986 linked to the activities of the Emergency Centre for Locust Operations
(ECLO), with the generous assistance of several donor governments, has permitted
a timely response to the threats of locust invasions over most of Africa.

2.11 Unilateral Trust Fund expenditure rose from US$ 10.9 million in 1980 to an
estimated US$ 32 million in 1988. This is still due to some large projects funded
by the group of countries traditionally using the Unilateral Trust Fund mechanism,
but also to technical assistance projects in connection with development bank loans.
There is a good potential for FAO's further involvement with this type of project
and a dialogue is maintained with financial institutions in this regard. Further
expansion is naturally dependent on the willingness of beneficiary governments to
request FAO's involvement, going beyond institution-building and training aspects to
which FAO's intervention has been mostly confined so far.

2.12 Expenditure through the Office for Special Relief Operations (OSRO) varies from
year to year depending on the number of emergencies and the amount of donor
assistance channelled through it. In the last few years, expenditure has oscillated
within the relatively low range of US$ 4 5 million.

2.13 FAO's Special Action Programmes have continued to play an important role in
attracting financial support for well-defined technical sectors. Under the Government
Cooperative Programme, donors have continued to favour funding a long-term

programme approach to individual, separate projects. These programmes follow a
strategy based on FAO's Regular Programme priorities and include field activities
at regional and national levels. Among the priority Special Action Programmes that
received strong support recently are the Tropical Forestry Action Plan; Food
Security in its expanded concept; Fertilizer, Seeds, Pest Control and Marketing for
the benefit of small farmers; Acquaculture and Small-scale Fisheries. Most of these
programmes had a strong focus on the role of women in rural development and on
environmental impact.

Food Aid

2.15 A predominant share of food aid projects of the UN/FAO World Food Programme
relates to agricultural and rural development, including afforestation and
desertification control activities. Formulation of these projects draws heavily on FAO
technical inputs, while the range of project activities each year depends on the
nature of requests from recipient governments. Cooperation between FAO and WFP
is expected to remain at current levels.

Support Costs

2.16 Revised support cost reimbursement arrangements for UNDP-financed technical
assistance were introduced in 1981, to be applied to the ten-year period 1982-1991.
Subsequently, a decrease from 14 to 13 percent of the reimbursements on UNDP
delivery took effect in January 1987. A similar formula, with suitable adaptations,.
was applied to TF projects.

2.17 Coupled with this reduced percentage, the steep depreciation of the US dollar
experienced in 1986-87 has greatly compromised the capacity of the support costs
(SC) income of the Organization to continue to finance the same levels of staff
complements, principally at Headquarters. In the absence of protective mechanisms
regarding currency fluctuations, a rundown of SC reserves proved necessary,
accompanied by a needed contraction of the number of SC-financed staff. However,
FAO's field programme delivery, as reported above, has maintained its momentum.
Although it would be tempting to conclude that the situation might now have
stabilized, it is at the expense of a resulting increase in workload for remaining
staff. This can hardly be considered a satisfactory long-term solution, as lower
performance in timeliness and quality during the implementation of projects cannot
be accepted as a substitute for adequate reimbursement arrangements.

2.18 In effect, the difficulties experienced by the European-based agencies which
implement UNDP projects have been fully recognized by the UNDP Governing
Council itself in June 1988. An additional, one-time amount covering some of the
support costs incurred in 1987 was approved by the Council. This has afforded
welcome breathing space but has in no way addressed the structural problems
towards a mutually-acceptable solution.

2.19 As instructed by the General Assembly of the United Nations, the UNDP Governing
Council is to develop successor arrangements, which it would consider in 1990 for
adoption beyond 1991. A group of experts is shortly to be appointed to formulate
recommendations in this regard. At the inter-secretariat level, a special Task Force
has been established under the umbrella of the Consultative Committee on
Substantive Questions (Operational Activities), with the participation of the
Consultative Committee on Administrative Questions (CCAQ) and the Office of the
UN Director-General for International Economic Cooperation (DIEC) to provide
coordinated inputs to this important exercise, from the vantage point of the agencies
of the UN system most concerned.

-8-

2.20 It is not possible to anticipate, at this stage, the likely outcome, even in terms of
working hypotheses. Further developments will be duly reported to FAO Governing
Bodies, which would have to pronounce themselves on the eventual conclusions and
decisions reached by the UNDP Governing Council next year.

- 9 -

m. FINANCIAL FRAMEWORK

3.1 The liquidity problems which have affected the financial management of the
Organization for the last two years are not yet over. It should however be cause
for some satisfaction that a cash flow crisis has been avoided, as has recourse to
the authority to borrow. With continued support by Member Nations, of the kind
in evidence, there is every possibility of containing a cash flow crisis in the
remainder of this biennium. The prospects for the coming biennium can be viewed
with the confidence of cautious optimism.

Payment of Current Assessments

3.2 The Council, at its Ninety-fourth Session in November 1988, and the Finance
Committee at its Sixty-fourth Session in January 1989, noted the status of
contributions at the time of their sessions.

3.3 As seen from the following table, the percentage of assessments received by the end
of 1988 shows a distinct improvement over the preceding two years.

(Amounts in US$ '000)

Received as %
Current assessments Received Outstanding of assessments

1988 240 920 184 667 56 253 76.65
1987 198 575 131 395 67 180 66.17
1986 198 575 132 970 65 605 66.96

3.4 The position of Member Nations
somewhat improved and reflects
particularly appropriate for 1988

with regard to meeting their obligations is also
the efforts made by them. The comparison is
and 1986, the first years of each biennium.

No. of Member Nations Paid in full Paid in part No payment

1988 158 79 27 52
1987 158 92 20 46
1986 158 78 22 58

Payment of Arrears

3.5 At the beginning of 1988, the amount of arrears relating to 1987 and prior years
stood at US$ 93.9 million. By the end of 1988, the amount of arrears stood at
US$ 53.5 million.

- 10 -

Contributions Outlook

3.6 Both with regard to 1988 assessments and as regards arrears, the largest
contributor needs special mention, the total outstanding from it amounting to
US$ 78 million.

3.7 In this connection, it should be recalled that the representative of the United States
of America informed the Council at its Ninety-fourth Session that its President
intended to submit to the US Congress, in January 1989, a request for
appropriation of the full amount of US obligations to UN organizations for the US
Fiscal Year 1990. The Council was also informed by the representative of the
United States that the President had asked for a plan regarding the payment of
all arrears due to UN organizations.

3.8 It is permissible to expect that the next biennium will see a gradual normalization
in the payment of contributions by all Member Nations. At the same time, the
burden on Member Nations in meeting their international financial obligations
remains a factor which continues to warrant restraint in the future level of
assessments.

Miscellaneous Income

3.9 The current Programme of Work and Budget included an estimate of
US$ 11.7 million of Miscellaneous Income. By the end of 1988, Miscellaneous
Income amounted to US$ 7.4 million. There is thus every prospect of the estimate
for the biennium being reached and, ceteris paribus, even being exceeded.

3.10 This amount is of course exclusive of the Voluntary Contribution of Italy of
US$ 30 million, for the Technical Cooperation Programme, which is credited to the
Miscellaneous Income and provides corresponding relief to the regular budget.

3.11 The realization of estimated Miscellaneous Income depends mainly on the level of
investible funds available to the Organization and on interest rates in effect. Given
the uncertainties on both counts, no attempt is made to estimate the Miscellaneous
Income of 1990-91 at the stage of the Summary.

Working Capital Fund

3.12 By Resolution 16/87, the Conference raised the authorized level of the Working
Capital Fund to US$ 17 million from 1 January 1988 and to US$ 20 million from
1 January 1989.

3.13 As of end 1988, US$ 2.4 million had been received from Member Nations towards
the increase for that year.

3.14 The previously authorized amount of the Working Capital Fund, US$ 13.3 million,
which was utilized in 1987 as an advance to the General Fund to finance budgetary
expenditures pending receipt of contributions, has to be reimbursed from the General
Fund during the 1988-89 biennium. It is expected that this reimbursement will be
effected during 1989.

Special Reserve Account

3.15 It will be recalled that the Special Reserve Account was totally depleted in the last
biennium, to cover additional staff costs resulting from adverse currency exchange
rates.

11 -

3.16 By Resolution 17/87, the Conference decided on a special assessment on Member
Nations, of US$ 12.3 million, to provide for 50 percent of the replenishment of the
Special Reserve Account. By end 1988, an amount of US$ 7.8 million had been
received. It can be expected that the remaining amount due will be received during
1989.

3.17 The Special Reserve Account would again have to be brought up to 5 percent of
the effective working budget for 1990-91. However, in the present circumstances
the Director-General does not deem it reasonable to expect Member Nations to
consider another special assessment. It is accordingly proposed that, in conformity
with the provisions of Conference Resolution 13/81, the Special Reserve Account be
credited any sums received in the next biennium, in payment of arrears of
contributions for previous biennia, as well as savings on staff costs arising from
favourable differences between the budget lira exchange rate and the effective United
Nations rate, until its authorized level of 5 percent of the effective working budget
is reached.

- 12 -

IV. PROGRAMME FRAMEWORK

4.1 The Review of FAO will include an assessment of the relevance of the objectives,
roles, priorities and strategies of the Organization. The present document,
accordingly, does not anticipate the conclusions of this assessment. The programme
considerations which have led to this Summary aim to ensure the continuation of
essential activities, coupled with the selective strengthening of specific priorities and,
in the light of an evolving food and agricultural situation, programme activities to
address new concerns. The programme framework is briefly described below.

Management Guidance

4.2 In his instructions to FAO units inviting submission of proposals for the 1990-91
biennium, the Director-General requested programme managers "to take a fresh look
at all activities and programmes, reassess their relative strengths and weaknesses,
absorb the lessons provided by evaluation and continue to ensure that FAO efforts
are complementary to those of others". He further stressed that the aim of the
programme budget formulation exercise was to ensure the most effective and
economical utilization of the resources at FAO's eventual disposal.

4.3 Accordingly, areas of high priority had to be clearly described and justified, along
with an indication of the level of additional resources which would be necessary to
have an impact. Conversely, proposals had to include a description of the lower
priority areas in order to accommodate proposals for increase. An explanation of
the impact of reduced resources in each selected area proposed for lower priority,
had to be given including, where possible, an indication of who governments, other
organizations, other partners in development and which geographical areas would
be affected by the proposed reductions.

4.4 The preparation of detailed and fully costed proposals has been greatly facilitated
by increased computerization of the budget preparation process. Proposals were
reviewed at departmental meetings chaired by the Director- General. A prelimin-
ary indication of the main programme priorities for 1990-91 was given in the
Outline submitted to the Joint Session of the Programme and Finance Committees,
held on 30 January 1 February 1989.

Approach

4.5 The results of this intensive internal review have led the Director-General to propose
that the entire programme increase be directed to Chapter 2: Technical and
Economic Programmes, and Chapter 4: Technical Cooperation Programme. The
small apparent increase under Chapter 5: Support Services is only due to internal
shifts based on a more accurate method of distributing staff costs over programme
activities.

4.6 Under Chapter 2, the following priority areas, in particular, are proposed to receive
increased allocations:

Sustainable development
Crop/weather monitoring
Biotechnology
Crop protection

13-

Agricultural data development
Policy advice
Women in development
Aquaculture
Tropical Forestry Action Plan

4.7 The Outline Programme of Work and Budget explained the basis for the above
selection. More ample details on the scope of planned activities under each of these
areas are given in the Annex. However, in order to put these priority areas in
perspective for the benefit of the Council, the following brief presentation may be
helpful.

Sustainable development

4.8 The proposed increase is a direct response to Conference Resolution 9/87 and the
recommendations of the Ninety-fourth Council, in environmental protection and
sustainable development. The many strands of FAO's already extensive
involvement with sustainability issues cannot be unravelled with a few words.
Momentum clearly needs to accelerate in all pertinent areas. Moreover, it is
proposed to establish a new sub-programme entitled "Sustaining resource potentials"
to accommodate several relevant activities, e.g. dealing with the impact of climatic
changes on agriculture, forestry and fisheries, and to serve as a programme nucleus,
to which activities in other units can be conceptually linked, representing a
recognizable FAO contribution to sustainable development.

Crop/weather monitoring

4.9 The expansion of agrometeorological activities and satellite applications involves a
two-pronged action concerning the Remote Sensing Centre in the AGR Division. On
the one hand, the Agrometeorological Group, hitherto in the AGP Division, would
be transferred to AGR with no resource implications. On the other hand, satellite
monitoring of environmental conditions would be strengthened through a net
budgetary increase. The main beneficiaries of rationalized services will be ECLO
(Emergency Centre for Locust Operations),.the GIEWS (Global Information and Early
Warning System), and technical support activities to member countries themselves.

Biotechnology

4.10 Further involvement of FAO with biotechnology and its widespread potential
applications is contemplated through the analysis and promotion of promising plant
biotechnologies becoming a permanent feature of the Regular Programme. In
addition, the Joint FAO/IAEA Division will expand its research-oriented work
programme with molecular biology activities.

Crop protection

4.11 Among those areas where the technical base of the Secretariat needs to be
strengthened is crop protection; locust control and monitoring and support to
national plant protection in Africa have been favoured in view of the extensive
requirements for FAO assistance.

Agricultural data development

4.12 The objective of the WAICENT (World Agricultural Information Centre) project, as
a truly organization-wide undertaking, is to promote observance of common and high
performance standards by all FAO-developed data bases. This will ultimately permit

- 14 -

greatly improved access to and practical use of the unique wealth of technical and
socio-economic information accumulated by FAO.

4.13 The AGRIS and CARIS information systems are also scheduled for a net increase,
in view of their remarkable growth. The efficiency of these systems is also
dependent on FAO capacity to meet the substantial volume of technical assistance
requirements for input activities in member countries.

Policy advice

4.14 The Director-General wishes to respond to the consistent and pressing calls made
on the Organization to step up its policy advisory role in member countries,
especially in connection with adjustment processes.

4.15 However, this is certainly not an area where the Organization is starting from
scratch. Any expansion needs to be carefully nurtured depending on a blend of
factors: the data to back up analyses; a solid analytical capability; well-tested
prescriptions; the appropriate contacts with competent authorities; the proven
evidence of impartiality. FAO is well-placed to provide this assistance, given the
right conditions to participate and the necessary resources.

4.16 Therefore, several steps are envisaged to strengthen the Organization's capacity for
policy advice. Besides the already mentioned enhancement of its global information
resources, a substantial increase is proposed for the ES Department. Likewise, the
Fisheries and Forestry Departments are planning yet more intensive assistance under
the programmes of action adopted by the World Fisheries Conference and under the
umbrella of. the Tropical Forestry Action Plan (TFAP).

Women in Development

4.17 The increase is in response to Resolution 1/94 of the last session of the Council
when it endorsed the proposed FAO Plan of Action for Integration of Women in
Agricultural and Rural Development. The Resolution mandates FAO to implement
a range of specific activities, including training aspects.

Aquaculture

4.18 In the fisheries sector, the potential for expansion of aquaculture i now universally
recognized, particularly at a time of extreme pressures on marine fisheries.
Aquaculture offered itself as the most obvious candidate for increased resources.

Tropical Forestry Action Plan

4.19 The TFAP constitutes a unique framework for coordination of national and
international action for forest development and conservation. FAO has been
entrusted by member countries with the lead role in its further development and
implementation. The TFAP constitutes the focus of the programme increase in
forestry.

Preliminary Reactions of the Programme and Finance Committees

4.20 The reactions of the Programme and Finance Committees to these proposals, as
expressed at their January 1989 session, are summarized below.

- 15 -

4.21 The Committees were in agreement with the continued policy to direct resources to
FAO's technical and economic programmes and endorsed the nine priority areas.

4.22 The Committees considered that their choice well reflected past guidance, notably
from the Conference, Council and Regional Conferences, as well as proven require-
ments for FAO action and assistance to Member Nations.

4.23 In respect of the Technical Cooperation Programme, the great majority of members
welcomed the proposed net increase for the TCP in view of its responsiveness to
recipient countries' requirements. They noted with regret that, despite the increase,
the proportion of the TCP appropriation to the total budget would remain below past
levels. In their view, a greater increase would have been warranted. However,
some other members indicated that they would have difficulty in supporting any
increased resources for the TCP.

Changes in Resources

4.24 The magnitude of net changes to current allocations and the eventual shifts of
resources cannot be considered at the "macro-level" of Chapters and Major
Programmes. There does not appear to be a justification for the complete
elimination of any programme or sub-programmes. It is really at the levels of
sub-programmes and programme elements that the impact of programming for a new
biennial period, with totally revised lists of planned activities and outputs, can be
seen.

4.25 The Annex to this document includes, for the first time, tables showing net changes
down to programme element level. As will appear clearly from these tables, many
alterations to current provisions have been necessary to reflect new approaches, give
justice to new concerns and eventually make room for different means of action.

4.26 For the sake of enhanced clarity, a few minor amendments to the FAO programme
structure are proposed to be introduced. Besides the new Sub-Programme 2.1.1.6
"Sustaining Resource Potentials", TFAP activities would appear as a separate new
Sub-programme 2.3.1.5. Likewise, the joint FAO/WHO Food Standards Programme,
hitherto included under Sub-programme 2.1.6.3, would be shown separately under
a new Sub-programme 2.1.6.5. Conversely, present Sub-programme 2.3.2.4:
Wood-based Energy Systems, which consisted of only one element with a relatively
small allocation, would be incorporated into Sub-programme 2.3.2.1.

- 16 -

4.27 The following table gives consolidated statistical information on resource shifts and
changes within programme elements under Chapter 2.

1988-9
Approved
Budget

US$ '000
SResource Shifts at
Programme Element Level
-----------------------

Increases

1990-91
Proposed

Decreases Budget

Gross
Percentage
Change

2.1.1
2.1.2
2.1.3
2.1.4
2.1.5
2.1.6
2.1.7
2.1.8
2.1.9

. 420)
1 419)
1 580)
. 651)
S945)
. 487)
i 248)
. 874)
(219)

Total Agriculture

181 750 19 069

2.2.1
2.2.2
2.2.3
2.2.9

Total Fisheries

30 723 1 738

2.3.1
2.3.2
2.3.3
2.3.9

1 170
650
761
495

Tbtal Forestry

20 993 3 076

(16 843) 183 976

(244)
(758)
(125)
(14)

(1 141) 31 320

(563)
(677)
(1 183)
(5)

(2 428) 21 641

Grand Total 233 466 23 883 (20 412) 236 937 19.0

4.28 The increases and decreases shown are the sums of the individual change proposals
made for each programme element. The percentage shown in the last column gives
a broad measure of the inherent change within each programme although it should
be interpreted with care. Some changes may be numerically large but may, in
fact, reflect restructuring of current activities in addition to new directions in the
programme. Other changes may be significant in a substantive sense, even if they
do not involve great movements in the allocations. The narratives in the Annex
clearly indicate the nature of the programme changes.

4.29 With these caveats, the percentages give an indication of change and where it is
occurring. Thus, there is an implied stability of objectives and activities in the
fisheries programme while in forestry, restructuring and redirection of resources
toward implementation of the Tropical Forestry Action Plan has had a high
proportional impact on the resources available.

4.30 Relatively high rates of change are apparent in 2.1.2 in part because of the shift
of agrometeorology to 2.1.4.4 and rearrangement of elements under 2.1.2.5.

4.31 The percentage for Programme 2.1.4 reflects the above-mentioned transfer of
agrometeorology but also changes in priorities in the area of research development
under 2.1.4.4.

Programme

21.2
32.5
19.8
26.5
14.0
20.6
19.6
11.7
7.3

19.8

14.2
11.3
6.0
4.0

9.4

32.2
34.9
25.7
11.8

26.2

17 -

Cross-sectoral Priorities

4.32 The presentation of proposed activities in every Programme of Work and Budget
necessarily reflects primarily a "sectoral" approach. However, Member Governments
have expressed interest in being appraised of the extent of attention given to
"cross-sectoral" priorities, e.g. policy advice, women in development, sustainable
development, etc..

4.33 The Annex already gives some indication of the permeation of sectoral programmes
by cross-sectoral concerns. Given constraints of space and the status of programme
formulation at the stage of the Summary, it is not possible to add special sections
dealing with cross-sectoral priorities. Ways to present the latter will be considered
for the full Programme of Work and Budget document.

18 -

V. PROGRAMME BUDGET IMPACT

5.1 The priorities proposed by the Director-General and subsequently endorsed by the
Programme and Finance Committees, are fully reflected in the detailed proposals,
the financial impact of which is summarized in the table below.

5.2 Detailed proposals for each major programme can be found in the Annex where
programme changes are analysed to a much lower level, i.e. for Chapter 2 this
involves listing each programme element with the base amount in 1988-89, the
change proposed and the proposed 1990-91 level.

5.3 The budgetary provision at constant 1988-89 cost levels are as follows:

........................................................................................
1988-89 Programme 1990-91 Programme
Chapter and Major Programme Approved Budget Change Proposed Budget Change
US$ '000 % USS '000 USS '000 % %
........................................................................................

1 GENERAL POLICY AND
DIRECTION
1.1 Governing Bodies
1.2 Policy, Direction and
Planning
1.3 Legal
1.4 Liaison

Total Chapter 1

2 TECHNICAL AND ECONOMIC
PROGRAMMES
2.1 Agriculture
2.2 Fisheries
2.3 Forestry

Total Chapter 2

3 DEVELOPMENT SUPPORT
PROGRAMMES
3.1 Field Programme Planning
and Liaison
3.2 Investment
3.3 Special Programmes
3.4 FAO Representatives
3.9 Programme Management

Total Chapter 3

4 TECHNICAL COOPERATION
PROGRAMME

5 SUPPORT SERVICES
5.1 Information and
Documentation
5.2 Administration
5.9 Programme Management

Total Chapter 5

6 COMMON SERVICES

13 157 2.7
9 639 2.0

3 687 0.7
7 722 1.6

34 205 7.0

36.9
6.2
4.3

233 466 47.4

5 766 1.2

118 4.3
722 0.3
651 9.7
820 0.2

77 077 15.7

63 148 12.8

18 762 3.8

46 770 9.5
2 027 0.4

67 559 13.7

16 305 3.3

0 13 157 2.6 0.0
306 9 945 2.0 3.2

(144) 3 543 0.7 -3.9
(162) 7 560 1.5 -2.1

0 34 205 6.8 0.0

2 283
596
649

184 033
31 319
21 642

37.0
6.3
4.3

3 528 236 994 47.6 1.5

0 5 766 1.2 0.0

(428)
0
428
0

690 4.2
722 0.3
079 9.7
820 0.2

-2.0
0.0
0.9
0.0

0 77 077 15.6 0.0

1 750 64 898 13.0

55 18 817

167 46 937
0 2 027

2.8

3.8 0.3

9.4 0.4
0.4 0.0

222 67 781 13.6

0 16 305 3.3 0.0

7 CONTINGENCIES 600 0.1 0 600 0.1 0.0

Grand Total 492 360 100.0 5 500 497 860 100.0 1.1
================================================,,,-,-----------

- 19 -

5.4 The column headed "Programme Change" in the table shown on the previous page,
can be analysed by organizational unit as follows:

Programme Change by Major Programme and Chapter for Organizational Groups
(At Lire 1 235 = US$ 1 at 1988-89 Costs)

CH 1 MP 2.1

MP 2.2 MP 2.3

CH 3 CH 4 CH 5 CH 6 CH 7

1 698

1 002

400

450

(183) 96 91

(8) (16) 4

RAFR
JAFR

RAPA

REUR
JEUR

RLAC
JLAC

RNEA
JNEA

TCP

(123)

36

55 6

61 62

(17)

1 750

1750

TOTAL 2 283 596 649 1 750 222 5500

Legend to column headings: Annex
Page
Refs

CH 1 Chapter 1 General Policy and Direction 36
MP 2.1 Major Programme Agriculture 39
MP 2.2 Major Programme Fisheries 89
MP 2.3 Major Programme Forestry 100
CH 3 Chapter 3 Development Support Programmes 114
CH 4 Chapter 4 Technical Cooperation Programme 119
CH 5 Chapter 5 Support Services 122
CH 6 Chapter 6 Common Services 127
CH 7 Chapter 7 Contingencies 128

TOTAL

1698

1002

- 20 -

VI. COST INCREASES

Methodology

6.1 The methodology for calculation and presentation of cost increases in 1990-91 is the
same as used for 1988-89 and approved by the Finance Committee, Council and
Conference.

6.2 The cost increase estimates are not built up on speculations about inflation rates
in the host country during the next biennium. They take account, to the greatest
extent possible, of known facts such as the actual payments for staff salaries and
allowances in the previous years; the probable increases in General Service salaries;
the measurable impact of approved changes in the net and gross salary scales for
Professional staff; changes in staff allowances as and when approved by the
authoritative body concerned; increases in rent, utility prices, printing contracts;
and an assessment of trends and factors affecting FAO's pattern of expenditures on
a world-wide basis.

6.3 The cost estimates do not therefore result from simplistic assumptions, nor
generalized approaches. As the following table and notes show, they are built up,
item by item, and related to the different origins and types of FAO expenditures,
the different factors affecting each of them, and the different indicators which are
applicable, including past experience and trends.

Biennialization

6.4 The cost increases are, as previously, divided between biennialization of additional
costs or savings actually occurring during 1988-89 (Column A on the table overleaf)
and expected inflation arising during 1990-91 (Column B).

6.5 The process of biennialization in effect updates the current base before any costs
(and programme changes), expected during the next biennium, are added. Thus,
costs which arise at different times during the current biennium have to be added
to the base on a full 24 months' basis for the next biennium. The reverse
obviously applies to the decreases, if applicable, where a negative biennialization
figure would reflect the full 24 months' impact of the reduction.

Inflation

6.6 As regards inflation during 1990-91, the estimates cover only the cost of increases
expected to arise at various times during the next biennium. Thus, if a post
adjustment is expected to occur in January of the second year, provision is made
only for its cover over a period of 12 months; and one which is expected to occur
in December of the second year is covered for one month only.

6.7 As regards goods and services, account is taken of the different factors applying to
each item.

- 21 -

Cost Increases Table

6.8 The following table presents the estimates accordingly.

Preliminary Calculation and Distribution of Cost Increases 1990-91 (US$ '000)
..........................................................................................
Biennial- Inflation
ization arising Total
1988-89 of 1988-89 during Cost
Base Increases 1990-91 Increase

(A) (B) (C)

PERSONAL SERVICES

Basic Professional Salaries 81 592 911 0 911
Post Adjustments 27 074 12 760 8 068 20 828
General Service Salaries 90 442 2 778 10 267 13 045
Pension Fund Contributions 37 357 4 381 1 290 5 671
Social Security 5 799 2 175 1 955 4 130
Dependency Allowance 3 829 1 282 197 1 479
Education Grant 8 606 1 264 0 1 264
Travel Appoints.Repatr.etc. 9 916 0 0 0
Recruitment/Separation Costs 14 138 373 196 569
Separation Scheme 5 838 1 118 745 1 863

TOTAL PERSONAL SERVICES 284 591 27 042 22 718 49 760

GOOD AND SERVICES

Consultants 22 944 0 0 0
Duty Travel 23 899 0 0 0
Contractual Services 64 437 0 1 932 1 932
Supplies and Equipment 36 749 0 3 674 3 674
General Operating Expenses 59 740 0 4 780 4 780

TOTAL GOODS AND SERVICES 207 769 0 10 386 10 386

GRAND TOTAL 492 360 27 042 33 104 60 146

Notes

PERSONAL SERVICES

Basic Professional Salaries The UN General Assembly, at its 1987 session, requested
the International Civil Service Commission (ICSC) to undertake a comprehensive review
of the conditions of service of staff in the Professional and higher categories to provide
a sound and stable methodological basis for their remuneration. The General Assembly
also requested that this study be completed and the recommendations presented to it
at its Forty-fourth Session in 1989.

Pending the completion of the above review by the ICSC and the decision the General
Assembly may take at its 1989 session, no changes in the basic salary schedule for
Professional and higher categories are foreseen in the near future. The new rates of
staff assessment implemented with effect from 1 April 1988 resulted in an increase in
gross salaries but did not affect net base salaries, which remained unchanged at the
level they reached in January 1985, when 20 points of post adjustment were consol-
idated into base salaries.

- 22 -

Although there is no change in the basic salaries, additional resources are required
to cover a shortfall in the present budgetary provision as part of the biennialization
cost. This is due to the annual step increases, the cost of which in the past was
being offset by the vacancies being filled with new staff having less years of service.
This is no longer the case following the slowing down of external recruitment and
the increasing redeployment of internal staff.

Post Adjustment The International Civil Service Commission, at its Twenty-seventh
Session in March 1988, decided to introduce some technical modifications to the method
for the calculation of the post adjustment and, based on its review of the margin, to
lift the freeze of the New York Index, effective 1 June 1988. On the basis of the
above decisions, the fifth scaling back of the post adjustment index for Rome and other
duty stations effective February 1988 was no longer applicable. Therefore, the post
adjustment indices for all duty stations, including Rome, were recomputed.

At its Twenty-eighth Session, the ICSC approved the findings of the November 1987
place-to-place survey conducted in Rome, and decided that the survey results should
be implemented with effect from 1 August 1988. As the post adjustment multiplier
resulting from the survey was found to be slightly lower (about 2 percent) than the
multiplier actually paid in November 1987, transitional measures for Rome were
applied by the ICSC (freezing of Professional salaries as at August 1988, expressed
in local currency).

The combined effect of these measures applied by the ICSC during 1988 led to an
increase in the post adjustment multipliers calculated at a constant rate of exchange
(budget rate) which were higher than those forecast in the 1988-89 Programme of
Work and Budget. These changes were reported to the Finance Committee at its
Sixty-second and Sixty-third Sessions.

The net result of these changes, including its continuing impact in 1989, is covered
under the biennialization element in the cost increases.

As a result of the lifting of the freeze, post adjustment class 9 was granted to New
York effective 1 January 1989 and it is anticipated that class 10 will be granted in
May. While the first increase in the New York post adjustment classification was a
result of the movement of the local cost-of-living index, the second is based on the
recalculation of the margin following an increase in the US Civil Service salaries (the
comparator).

An increase in the New York post adjustment index due to margin considerations
will require rebasing and "scaling forward" of the level of indices at all other duty
stations.

The impact of the above measure on the Rome post adjustment could be an anticipated
lifting of the transitional measures currently applied with a concurrent increase of 3
to 4 multiplier points effective May or June 1989. However, since the actual
occurrence of this depends upon the interaction of a number of factors whose combined
future effects are difficult to predict, no provision is made to cover the impact in
1990-91 of such an increase in the middle of 1989.

The normal operation of the post adjustment system will resume when the afore-
-mentioned transitional measures are lifted. However, additional modifications to the
post adjustment system can be anticipated as a consequence of the comprehensive
review.

- 23 -

Pending the final determination of the multiplier points in 1989, provision is made
to cover in 1990-91 the cost equivalent of class 11 applicable at January 1990, class
12 at January 1991 and class 13 at December 1991.

General Service Salaries The PWB 1988-89 was prepared assuming salary increases
of between 4 and 5 percent occurring respectively in February 1987, February 1988
and February 1989. In line with the methodology for between-survey adjustments, as
approved by the Council at its Eighty-sixth Session, two increases became due in 1987,
in February and August respectively. The latter was announced in November, i.e. too
late to be included as a biennialization cost in the PWB 1988-89.

A 4.28 percent increase in net salaries became effective 1 June 1988, while a further
net increase of between 4 and 5 percent is expected to become due in June 1989.
This should be coupled with an additional 2 percent increase due to tax rebates in line
with the recent changes in the Italian fiscal legislation. The compounded effect on the
salary and related allowances (language and non-resident allowances) which are paid
as part of the salary package is covered under the biennialization cost.

Considering the current rate of inflation in the Host Country, 5 percent increases in
salaries can be forecast to occur in June 1990, February and December 1991.
Budgetary provision is calculated to cover such further increases.

Unbudgeted additional staff costs are likely to arise from the implementation of the
forthcoming salary survey in Rome, which is scheduled by the ICSC for 1989.

Pension Fund Contributions This item covers contributions payable by the
Organization based on the pensionable remuneration scales for both Professional and
General Service categories. The cost increase provision covers higher payments resulting
from adjustments in the Pensionable Remuneration base as well as adjustments in the
rate of contributions.

In accordance with the Regulations of the United Nations Staff Pension Fund, the
scale of Pensionable Remuneration for the Professional and higher categories is to be
revised whenever the net remuneration of such staff in New York is adjusted.
Accordingly, and in line with the recommendations of the ICSC and the Pension
Board adopted by the General Assembly, the scale of Pensionable Remuneration for
Professional and higher categories was increased by 3.9 percent on 1 June 1988 with
a further increase of 5.2 percent effective 1 January 1989.

The granting of post adjustment class 10 to New York will result in a further increase
in pensionable remuneration of the same size with effect from 1 May 1989.

In addition, the FAO contribution to the Pension Fund was increased from 14.5 to
14.8 percent in July 1988 and will be raised to 15 percent effective July 1989.

While a provision is made in the 1990-91 PWB to cover possible increases in the
pension fund contributions, precise provision is difficult to calculate considering the
rapid changes which are taking place.

The Pensionable Remuneration Scales for General Service staff are adjusted in line
with the changes in the basic salary scales. Provision is therefore made to even the
impact of the changes mentioned under the General Service Salaries on page 23 above.

Social Security The premium for the Basic Medical Insurance Plan (BMIP) which
is shared between the staff and the Organization, increased by 54 percent in 1988,
and on an average provisional basis, by a further 23 percent effective 1 January

24 -

1989, pending the finalization of arrangements for the introduction of a cost sharing
system for the After Service Medical Scheme.

These increases are substantially in excess of the provision included in the PWB
1988-89; the resulting shortfall is being covered under the biennialization.

Provision is made for further increases of some 6 percent and 4 percent in 1990-91,
always on the assumption that pensioners would be contributing to the cost of the
After Service Medical Scheme.

Dependency Allowances Based on the decision of the General Assembly at its 1988
session, the children's allowance for staff in the Professional and higher categories
has been increased by 50 percent (from US$ 700 to US$ 1 050 net per annum per
child) effective 1 January 1989. For Rome and other duty stations where the
Remuneration Corrective Factor (RCF) is applied, the new amount has been established
in local currency and therefore its dollar equivalent will vary.

The additional cost resulting from the implementation of the above measures is
unbudgeted. In dollar terms, it may increase or decrease depending on whether the
operational rate of exchange is below or above Lit. 1 240 to US$ 1, i.e. the base
rate used by the ICSC in establishing the new amount for Rome in Lire.

Dependency Allowances for General Service staff increased in June 1988 and are
expected to increase in June 1989 as a result of salary adjustments to which the
level of these allowances is linked.

The combined biennialization impact of the above increases is covered in the cost
calculations which also include provision for further increases payable to the General
Service Category in 1990-91 in line with basic salary adjustments.

Education Grant The General Assembly also decided at its 1988 session, to increase
the maximum reimbursable amount for education expenses by 50 percent (from
US$ 4 500 to US$ 6 750 per child per scholastic year).

For Rome and those duty stations where the RCF is applied, the new amount has
also been established in local currency.

This additional cost is unbudgeted in 1988-89 and, in dollar terms, it may vary
depending on whether the operational rate of exchange is below or above Lit. 1 400
to US$ 1, i.e. the base rate used by the ICSC in establishing the new amount for
Rome in Lire.

Travel No provision has been made for cost increases arising in 1990-91 on the
premise that it will be possible to absorb the additional costs through the economy
measures now introduced.

Recruitment and Separation Costs The present provision is considered to be almost
sufficient to cover the expected costs taking into account the many posts currently
frozen for which recruitment action will only gradually take place. A relatively small
increase is, however, required to cover increasing payments for rental supplements and
assignment allowances following the introduction of some modifications of the latter in
late 1987.

General Service Separation Payments Scheme The funding and payment requirements
under the Separation Scheme are increasing in line with the salary adjustment. The
increases in 1988-89 mentioned under the section on General Service Salaries on page 23

- 25 -

above call therefore for an increase in the funding base, which has been calculated at
US$ 1 118 000. Provision is made for the funding requirement which is expected
to arise in 1990-91. In accordance with the recommendation of the Finance Conmmittee,
the share of the separation payments chargeable to the annual budget remains at 50
percent.

bObJS AND SERVICES

6 consultants No provision has been made for cost increases on the assumption that
it will be possible to absorb such increases under the economy measures introduced
in 1988-89.

Ditty Travel No provision has been made for cost increases on the assumption that
it will be possible to absorb such increases under the economy measures introduced
in 1988-89.

Contractual Services This category covers a wide variety of programme services
provided under contractual arrangements such as interpretation, translation, contractual
printing and binding, contributions to jointly financed administrative activities, external
auditors, etc. The overall expected increases in 1988-89 are estimated to reach some
3 percent for the biennium.

S Supplies and Eouipment and General Operating Expenses These cotvr all supplies
ahd equipment and items such as postal charges, cable, telephones, rent, utilities,
cleaning and maintenance services, etc. The increases have been calculated taking
account of the actual increase of. rent as well as trends in prices separately for each
item, in accordance with the methodology used for the other categories. The increase
for Supplies and Equipment is 10 percent while the increase for General Operating
Expenses is 8 percent.

Summary

619 An amount of US$ 60 146 000 is required as the total cost increase, i.ei
biennialization plus inflation, necessary to maintain the same level of programmes,
as approved for 1988-89, in the next biennium 1990-91. The percentage over the
1988-89 base is 12.2 percent.

6.10 The major part (82.7 percent) of the cost increases is for staff costs. It will be
hoted that more than half of this is required to cover the impact of cost increases
Which arise in 1988-89. Increases for 1990-91 reflect entitlements and indexed
increases foreseen under the prevailing contractual agreements governing staff
payments, including the reductions applied to some of them.

d.ii Since the proposed real programme increases are for the time being presented for
ease of comparison at 1988-89 costs, provision must be separately made, to bring
these up to full costs in real 1990-91 terms. This amounts to US$ 250 000.

6112 When this amount of US$ 250 000 is added to the other cost increases, the total
domes to US$ 60 396 000. This amount, however, does not provide for all known
cost increases.

6.A As mentioned above, no provision has been made to cover the inflationai-y increases
which undoubtedly will arise in the costs for Consultants and Duty Travel. Ah
increase of 3 percent per annum would appear to be a reasonable minimum for

- 26 -

1990 and 1991. Under that assumption, cost increases of some US$ 2 340 000
will need to be absorbed.

6.14 Furthermore, the cost of the 1988-89 upgradings which have been absorbed during
the biennium they become effective, need to be covered under the cost increases in
line with the prevailing practice. So far no provision has been made to cover the
related costs which, depending on the final staffing proposals for 1990-91, may be
in the order of US$ 600 000.

6.15 The combined cost of the known but unbudgeted cost increases is therefore
US$ 2 940 000. When added to the presently proposed cost increases, total
requirements come to US$ 63 336 000.

6.16 Moreover, since it is admitted that the impact of the anticipated lifting of the
transitional measures on the Post Adjustment system will not be visible for some
time and furthermore is difficult to predict, no provision is being made for this.
Hence the eventual approval of an additional post adjustment six months in advance
of the presently estimated date would require an additional provision of
US$ 1 200 000.

6.17 This does not do away with the fact that still further increases will arise following
the survey of the General Service salaries in Rome to be conducted by the ICSC
in 1989, as well as the possibility of additional costs following the comprehensive
review of the conditions of service of staff in the Professional and higher categories
to be undertaken by the ICSC as directed by the General Assembly in its Resolution
42/221.

6.18 The present calculations are therefore provisional and the best estimate which could
be worked out at this moment on the basis of the information available. It should
also be noted that, at this stage, the programme proposals submitted in the SPWB
need to be worked out in greater detail identifying inter alia the required input by
cost category. Pending the finalization of this information, cost increases have been
computed on the existing 1988-89 programme base.

6.19 As always, the present economic situation considerably adds to the element of
uncertainty regarding a forecast which has to cover cost developments for the next
three years. Developments of indexes and price trends are therefore being watched
very carefully to ensure that every development is duly noted and reflected in the
preparation of the full Programme of Work and Budget.

- 27 -

VII. OBJECTS OF EXPENDITURE

The Director-General has consistently pursued a policy of reducing the number of posts
both at Headquarters and in the Regional and Liaison Offices. This has resulted, over
seven biennia, in profound changes in the composition of FAO's budget, decreasing the
proportion committed to fixed expenditure on personal services, and enhancing flexibility
in implementing programmes. Along with the reduction in established posts has come an
increase in reliance not only on consultants but also on national institutions, either for
direct execution of activities or for cooperative undertakings within networks.

For 1990-91, the Director-General again proposes a reduction in established posts, basically
limited to the General Service category. A limited number of new Professional posts, are
proposed to implement priority programmes for which it is not advisable to rely on
short-term expertise. The net reduction in posts would have been much larger had it not
been necessary to propose 27 additional General Service posts to support the re-opening
of the Regional Office for the Near East.

PROPOSED NEW AND ABOLISHED POSTS 1990-91

New Posts

Unit Professional General Service

AUD G-5 Clerk
G-3 Bilingual Typist

PBE P-5 Senior Evaluation Officer

AFC P-5 Corporate Systems Coordinator
(Computer Pool)

AFS P-4 Contracts Officer

AGL P-5 Senior Officer, Integrated
Plant Nutrition System
P-5 Senior Officer (Water
Development)
P-5 Senior Officer (Water
Development/Planning)

AGP P-5 Agricultural Officer
(Biotechnology)
P-5 Coordinator, Cooperative
Action for Plant Health
P-4 Agricultural Officer
(Locust Control)

AGR P-5 Senior Officer (Satellite G-4 Clerk-Stenographer
Monitoring of Environment (transfer from AGP)
Conditions) G-3 Statistical Clerk
P-5 Agrometeorology (transfer from AGP)
P-4 Agrometeorology (transfer
from AGP)

- 28 -

Unit Professional

AGS P-4 Agro-Industries Officer

ESD D-1 Coordinator, Population
Programme
P-5 Senior Economist

ESH P-4 Women-in-Development
P-4 Secretary, World Food Day
Committee

ESP P-4 Economist

General Service

G-4 Reference Clerk

G-6 Administrative
Assistant (WFD)

P-5 Senior Aquaculture
Development Adviser
P-4 Aquaculture Specialist
P-3 Fishery Information Officer

FO D-1
P-5
P-4
P-4
P-4

Coordinator TFAP
Forestry Research
Forest Protection
Non-Wood Products
Forest Genetic Resources

DDF P-5 Field Office Inspector

GIL P-2 Documentation Clerk
(Subject Specialist)
P-2 Information Systems Officer
(AGRIS/CARIS)

Immediate Office of
Regional Representative
G-4 Steno/Secretary

Administration
G-6 Personnel Assistant
G-5 Administrative Clerk
G-5 Accounting Clerk
G-4 Accounting Clerk
G-4 Travel Clerk

Library
G-7A Library Assistant
G-2 Clerk

Internal Services
G-7B Internal Services
Supervisor
G-5 Administrative Clerk
G-4 Registry Clerk
G-4 Clerk-Telex/Telefax
Operator
G-3 Receptionist

RNEA

Unit Professional

RNEA (contl)

G-3
G-3
G-2
G-2
G-2
G-2

General Service

Telephone Operator
Driver
Driver
Driver
Driver
Messenger/Scooter
Driver
Gardener
Messenger
Messenger
Messenger
Guard
Guard
Lift Operator
Lift Operator

TOTAL 29 33
- ----------------------------------p------------ "---r- -----------------------------------------------------

Abolished Posts

Unit

Professional

TAA P,5 Clhif, Inter.Agency M1ttter
Unit
LEG

AFF

AFS

General Service

G-5 Clerk
G-3 Bilingual Typist

G-3 Registry Clerk
G-3 Clerk-Typist

G-6 Security Asst.
G-5 Assistant Supervisor,
Transport Unit
G-5 Chief Tel. Operator
G-3 Senior Guard
G-3 Senior Guard
G-2 Electrician
G-2 Gardener
G-l Messenger
G-1 Messenger
G-1 Messenger
G-1 Messenger
G-1 Messenger
G-1 Messenger
G-1 Messenger
G-1 Messenger
G-1 Messenger
G-1 Messenger
G-1 Sp. Labourer
G-1 Sp. Labourer
G-1 Sp. Labourer
G-i Sp. Labourer

- 3Q .

Unit

Professional

AGA P-5 Senior Officer (Dairy
Development)

AGL P-5 Senior Officer (International
Fertilizer Supply Scheme)
P.2 Meetings Officer/Editor

AGP P.4 Agricultural Officer
(Agrometeorology) (transfer
to AGR)

P.4 Training Officer (Plant
Genetic Resources)

AGR

AGS

ESC

ESH

ESN

ESS

FI P-4 Fishery Industry Officer
P-4 Fishery Industry Officer

General Service

G-3 Stenographer
G-3 Stenographer
G.3 Stenographer

G-4 Clerk-Stenographer
(transfer to AGR)
G-3 Statistical Clerk
(transfer to AGR)
G-3 Clerk-Typist
G-3 Clerk-Typist
G-3 Bilingual Typist

G-3 Clerk-Typist
G-2 Typist

G-4 Clerk-Stenographer

G-4 Research Clerk
G-4 Clerk-Stenographer

G-4 Clerk-Stenographer
G-4 Clerk Stenographer
G-4 Bilingual Stenographer
G-3 Stenographer

G-4 Clerk-Stenographer
G-3 Stenographer
G-3 Stenographer

G-6 Research Assistant
G-5 Statistical Clerk
G-3 Bilingual Typist

G-6 Scheduling Assistant
G-5 Statistical Clerk
G-2 Typist

G-6 Administrative
Assistant
G-4 Budget clerk
G-4 Library Clerk
G-4 Clerk-Stenographer
G-4 Clerk-Stenographer
G-3 Bilingual Typist

G-5 Research Clerk
G-4 Clerk-Stenographer
G-4 Bilingual Stenographer

General Service

DDC D-1
D-1
D-1
D-1
D-1
P-4
P-4
P-4

Senior Adviser
Agricultural Economist
Agricultural Economist
Agricultural Economist
Forestry Officer
Project Analyst
Project Analyst
Agricultural Economist

DDF P-4 Programme Officer
P-2 Programme Officer

GIC P-4 Protocol Officer

GIL

GIP

G-7 Documentation
Assistant
G-4 Library Clerk

0-5 Proofreader (Spanish)
G-3 Binding dnd Finishing
Operations
G-3 Correspondence Clerk
(Arabic)

JNEA P-3 Agricultural Economist

RAFR

RLAC

G-4 Clerk-Typist

G-4 Registry Clerk
G-4 Bilingual Stenographer

TOTAL 20 68

NET +9 -35

The proposals presented in this Surrary require careful review by the Establishments
machinery prior to inclusion in the Directo rdene'al's full Programme of Work and Budget.
Subject to this further review, the net changes in the proposed establishment are as
follows:

Net Changes in Regular Programme Established Posts
1990-91

Professional General Service

Total

Headquarters 10

Regional Offices/
Joint Divisions -1

-49

+24 +23

1 31 -

Unit

Professional

- 32 -

Despite the further net reduction in pibstsi the high cost ilcrteases related to Personal
Services mean that expenditures on established pdsts, as a proportion of total expenditure,
will thus change as follows:

Percentage of Expenditure on Established Posts to Total Budget

1976-77 1978-79 1980-81 1982-88 1984-85 1986-87 1988-89 1990-91 2

63.8

62.5

61.4

59.8

56,0

54,5

55.9

59.4 3

The figures above include the cost of salaries of staff id Regional, Liaison and FAO
Representative Offices. If these are excluded the prokbrtiori of expenditure on established
posts to total expenditure in 1988-89 is 43, percent and in 1990-91 would be
45.5 percent.

The proposed breakdown of total resources by object of expenditure Will, as usual, be
given in the full Programme of Work and Budget. On the basis of the very preliminary
information available, it can be expected that the provisions for Consultants, Contracts and
Travel will show a small increase, with no increase for Publications and Documents, but
a small reduction in the resources allocated to MeetingS, An increase is likely under the
provision for Computer Services in support of the expanded automation and the scheduled
introduction of the new finance and personnel systetes.

2 at Lire 1 235 = US$ 1

SProvisional figure

- 33 -

vm. COMPARISON

The following comparison is in accordance with the methodology recommended by the
Finance Committee, used in earlier documents, and approved by the Conference.

(All figures in US$ '000 at Lit. 1235 = US$ 1)

% increase

(1) Programme of Work and Budget 1988-89
(2) Cost increases

492 360
60 146

12.2

(3) 1990-91 cost of 1988-89 budget 552 506
(recosted base)
(4) Real programme increase 5 500 1.0
(5) Cost increase consequent on (4) 250

(6) Proposed Programme of Work and Budget 1990-91 558 256

The cost figures in the above comparisons are subject to continuing further review, in
order to take into account the latest cost and expenditure trends.

As in the past, the figures are given at the rate of exchange adopted by the Conference
for the current Programme of Work and Budget, i.e. Lit. 1235 = US$ 1. This is to
facilitate comparison on a constant currency basis, and so as not to prejudge the eventual
decision of the Conference, at its Twenty-fifth Session, on the rate of exchange it will
adopt for the Programme of Work and Budget 1990-91.

- 34 -

ANNEX

FURTHER DETAILS OF PROGRAMME PROPOSALS

AND RESOURCE ALLOCATIONS BY MAJOR PROGRAMME,

PROGRAMME AND SUB-PROGRAMME

(All estimates at Lit. 1 235 = US$ 1 and at 1988-89 costs in US$ '000)

- 35 -

INTRODUCTION

This Annex provides summary information on programme activities, and corresponding
proposed resource allocations. The full Programme of Work and Budget 1990-91 will, as
in the past, include detailed presentations of these activities.

The computerized workplanning and monitoring system (PLANSYS) in operation in the
Headquarters' Technical Departments and Regional Offices, permits full account to be given
of the shifts and net changes which have been effected down to programme element level.
A table showing such changes is included for each technical sub-programme under Chapter
2: Technical and Economic Programmes. Deleted, as well as newly-introduced programme
elements, will also be apparent in these tables.

It is in the nature of an evolving programme to reflect some changes in the programme
elements shown in the last Programme of Work and Budget document. This ranges from
the merger of some hitherto distinct elements to, conversely, the split of large elements
into component parts. Titles are revised, as necessary, to better reflect the scope of
proposed activities, A strict comparison between those elements which were "active" two
years ago and those proposed for implementation in 1990-91 is, therefore, not always
possible. However, as necessary, base allocations have been traced as accurately as
possible to identify the magnitude of resource changes.

As befits a "Summary" Programme of Work and Budget, the narratives deliberately focus
on programme changes and new emphases. The rationale, objectives and detailed plan of
action for each programme, together with forecasts of extra-budgetary resources, will as
usual be given in the full Programme of Work and Budget. Activities of Regional Offices
are also indicated in succinct fashion in the present document.

The programme proposals, particularly within sub-programmes, are still provisional, as the
Director-General wishes to take into account the recommendations of bodies such as the
Committees on Fisheries and on Agriculture, as well as such views as the Programme
and Finance Committees and the Council may wish to offer on the Summary Programme
of Work and Budget.

It should also be noted that the figures in the tables below are at 1988-89 costs, exclusive
of the cost increases expected in 1990-91, which in the Summary Budget are presented
only in total (under Section VI commencing on page 20). The relevant cost provisions will
be added in the full Programme of Work and Budget 1990-91.

- 36 -

CHAPTER 1: GENERAL POLICY AND DIRECTION

Proposed allocations and changes (in US$ '000) at the major programme level are as
follows:

1988-89 Programme 1990-91
Major Programmes Budget Change Budget

1.1 Governing Bodies 13 157 0 13 157
1.2 Policy, Direction and Planning 9 639 306 9 945
1.3 Legal 3 687 (144) 3 543
1.4 Liaison 7 722 (162) 7 560

TOTAL 34 205 0 34 205

MAJOR PROGRAMME 1.1: GOVERNING BODIES

Proposed allocations and changes (in US$ '000) at the programme level are as follows:

1988-89 Programme 1990-91
Programme Budget Change Budget
- ----------- --------------------- --------- -w_-v*-- -w-- _*i _--- __----^---_.-- -~--- --- __
1.1.1 Conference and Council 9 197 0 9 197
1.1.2 Conference Services 3 960 0 3 960
------------------------------------------------------
TOTAL 13 157 0 13 157

Programme 1.1.1: Conference and Council

The programme covers direct expenditures incurred in relation to sessions of FAO
Governing Bodies (Conference, Council, Council Committees, Regional Conferences):
documentation, interpretation services, travel of Government Representatives when provided
for in the Financial Regulations, etc..

No change is effected, in anticipation of a similar range of services to be provided to FAO
Governing Bodies.

Programme 1.1.2: Conference Services

Likewise, no change is effected under this programme, which covers the meetings servicing
responsibilities of the GIC Division.

37 -

MAJOR PROGRAMME 1.2: POLICY. DIRECTION AND PLANNING

Proposed allocations and changes (in US$ '000) at the programme level are as follows:

----------------c--c----------,---------------------------
1988-89 Programme 1990-91
Programme Budget Change Budget
------------ --- --" ------"---- -- --m- -- -- -- -- -- -
1.2.1 Director-General's Office 3 782 0 3 782
1.2.2 Programme Planning, Budgeting and 3 943 162 4 105
Evaluation
1,2.3 Audit 1 914 144 2 058
- - - - - --------------5-c--------~--------
TOTAL 9 639 306 9 945
-- - - - -I - -----------------'-" -" ~-----"

In response to repeated calls for the strengthening of FAO evaluation activities, a new
P-5 post of Senior Evaluation Officer is proposed in the Office of Programme, Budget and
Evaluation (PBE).

In the audit area, the increase in resources is made necessary by stepped up requirements
for clerical and secretarial assistance.

MAJOR PROGRAMME 1.3: LEGAL

Proposed allocations and changes (in US$ '000) at the major programme level are as
follows:

----------------------------------------------------------------------
1988-89 Programme 1990-91
Major Programme Budget Change Budget
----------------------------------------------------------------------
1.3 Legal 3 687 (144) 3 543
----------------------------------------------------------------------
TOTAL 3 687 (144) 3 543
--------------------------------------------------------------------------

The reduction reflects the proposed abolition of two General Service posts in the Office of
the Legal Counsel, as a cost-cutting measure.

The Legislation Branch is expected to continue its activities of direct assistance to member
countries in development and natural resources law. Priority will be placed on legal
assistance in the areas of fisheries, pesticides (follow up to the International Code of
Conduct on the Distribution and Use of Pesticides) and land.

In order to facilitate the work of the whole Legal Office, a Documentation and Research
Unit will be established without resources implications.

- 38 -

MAJOR PROGRAMME 1.4: LIAISON

Proposed allocations and changes (in US$ '000) at the programme level are as follows:

------------------- -------------------------------------------------------
1988-89 Programme 1990-91
Programme Budget Change Budget
--------------------------------------------------------------------------
1.4.1 Inter-Agency Affairs 2 635 (162) 2 473
1.4.2 Liaison and Protocol 5 087 0 5 087
--------------------------------------------------------------------------
TOTAL 7 722 (162) 7 560
--------------------------------------------------------------------------

This major programme covers offices at Headquarters and Liaison Offices in Washington
D.C. (US$ 1 871 000), New York (US$ 1 439 000) and Geneva (US$ 659 000),
responsible for a broad range of external relations activities.

Although pressures on these offices have in no way abated, as part of deliberate cost-
cutting, the Director-General is proposing reductions in the current staffing levels of the
Office of Inter-Agency Affairs and the Liaison and Protocol Branch in the GIC Division.
The elimination involves two Professional posts at P-5 and P-4 levels.

Difficulties will be experienced in ensuring full coverage of developments in the United
Nations system of interest to FAO, but every effort will be made to compensate these
expected difficulties by alternative arrangements.

In the protocol area, the resources so freed will permit increased office automation and
computerization so as to improve services to member countries and accredited missions.

- 39 -

CHAPTER 2: TECHNICAL AND ECONOMIC PROGRAMMES

Proposed allocations and changes (in US$ '000) at the major programme level are as
follows:

-------------------__-__^- t.k^d-Lj--.-.-t-----------------------.--------.--------
1988-89 Programme 1990-91
Major Programmes Budget Change Budget

2.1 Agriculture 181 750 2 283 184 033
2.2 Fisheries 30 723 596 31 319
2.3 Forestry 20 993 649 21 642

TOTAL 233 466 3 528 236 994

MAJOR PROGRAMME 2.1: AGRICULTURE

Proposed allocations and changes (in US$ '000) at the programme level are as follows:

1988-89 Programme 1990-91
Programme Budget Change Budget

2.1.1 Natural Resources 16 734 702 17 436
2.1.2 Crops 27 713 173 27 886
2.1.3 Livestock 16 283 60 16 343
2.1.4 Research and Technology Development 15 320 761 16 081
2.1.5 Rural Development 28 066 92 28 158
2.1.6 Nutrition 15 175 155 15 330
2.1.7 Food and Agricultural Information 25 810 562 26 372
and Analysis
2.1.8 Food and Agricultural P6licy 29 382 (313) 29 069
2.1.9 Programme Management 7 267 91 7 358
---------------- --- --- --- --- -- --- --- --- --- -- --- --- --- --- --
TOTAL 181 750 2 283 184 033
---,-------------------,~~,---- -- -- -- -- -- -- -- -

Programme 2.1.1: Natural Resources

Agricultural production depends on the sound use of land and water resources. The
activities of the Natural Resources programme are designed to meet the primary objective
of ensuring more productive and efficient use of available land and water resources and
inputs on a degradation-free and sustainable basis. Major areas of work are natural
resources assessment and planning, farming systems development, soil management and
fertilizers, water development and management, conservation and reclamation.

Responsibility for the implementation of Sub-programmes 2.1.1.1, 2.1.1.3, 2.1.1.4, 2.1.1.5
and 2.1.1.9 rests with the Land and Water Development Division (AGL). The Agricultural
Services Division (AGS) is responsible for Sub.programme 2.1.1.2 and the provision for
2.1.1.8 is shared between the two divisions. Sub-programme 2.1.1.7 covers the activities
of the Regional Offices and Joint Divisions under the programme.

40 -

Provisions (in US$ '000) for individual sub-programmes are shown in the following table:

1988-89 Programme 1990-91
Sub-Programmes Budget Change Budget

2.1.1.1 Assessment and Planning 2 216 (23) 2 193
2.1.1.2 Farming Systems Development 1 809 0 1 809
2.1.1.3 Soil Management and Fertilizers 2 433 (7) 2 426
2.1.1.4 Water Development and Management 1 995 (35) 1 960
2.1.1.5 Conservation and Reclamation 1 518 5 1 523
2.1.1.6 Sustaining Resource Potentials 0 560 560
2.1.1.7 Regional Offices 2 722 152 2 874
2.1.1.8 Field Programme Support 2 828 102 2 930
2.1.1.9 Programme Management 1 213 (52) 1 161

TOTAL 16 734 702 17 436

The range of problems addressed by this programme and the extent of requirements for
FAO's assistance imply that the balance of resources among the established technical
sub-programmes remains basically unchanged, to cover in particular:

quantification and assessment of available land and water resources, evaluation of
their potentials and development of methods to determine optimum resource use
(Sub-programme 2.1.1.1);

promotion of sustainable farming systems development and provision of farm
management inputs into programme and policy analysis (Sub-programme 2.1.1.2);

promotion of integrated plant nutrition systems and efficient use of mineral fertilizers
together with measures for improving soil fertility and management (Sub-programme
2.1.1.3);

irrigation development and application of improved water resources management and
irrigation methods (Sub-programme 2.1.1.4);

implementation of soil and water conservation measures and strategies, including
salinity control measures and use of marginal quality water (Sub-programme 2.1.1.5);

support to field programme (Sub-programme 2.1.1.8).

Three new technical posts are proposed to be established, partially offset by the elimination
of two existing posts.

It is also proposed to establish a new Sub-programme 2.1.1.6: "Sustaining Resource
Potentials" to provide for an organization-wide focus on "sustainability issues", to which
it is intended to allocate an initial provision of US$ 560 000. Responsibility for this
sub-programme will rest with the AGL Division. Activities in other units will, however,
be conceptually linked to the nucleus of activities originally foreseen under this
sub-programme.

- 41 -

Sub-programme 2.1.1.1: Assessment and Planning

A slight reduction is proposed in order to shift resources to the new Sub-programme
2.1.1.6. The reduction is possible for instance under the "land resources inventories"
element where significant progress in development of methodologies, techniques, legends and
guidelines has already been achieved. The land use planning guidelines produced in
1988-89 will lead in 1990-91 to case studies in five selected countries to identify land
management units and input factors necessary for successful land use planning mainly
in semi-arid areas. The allocation for the AGL Division's inputs to the Organization's GIS
activities remains unchanged. The transfer of AEZ (Agro-Ecological Zones) data to the
WAICENT corporate data base is planned.

Water resources assessment will be particularly directed to countries with serious limitations
in their water resources development potentials, in accordance with the recommendations
of the Lome Consultation. Activities are included aiming at improving national water
resource data collection and planning capacities.

Changes at programme element level:

--------------------------------------------------------------------------
1988-89 Programme 1990-91
Programme Elements Budget Change Budget
------------------------------------------------------------------------
01 Land Resources Inventories and 321 (20) 301
Evaluation
02 Land Use Planning 202 0 202
03 Agro-Ecological Zones Studies and 627 26 653
Population Potentials
04 FAO Geographical Information System (GIS) 520 0 520
05 Assessment of Water Resources for 546 (29) 517
Irrigation Planning
------------------------------------------------------------------------
TOTAL 2 216 (23) 2 193
------------------------------------------------------------------------

Sub-programme 2.1.1.2: Farming Systems Development

While the analysis and development of sustainable farming systems remains an important
component, the reduction of US$ 229 000 is due to the completion of much of the initial
work which was necessary to translate the concept of farming systems analysis into
training materials. Work will continue on constraints analysis and participative planning
methodologies.

More generally, emphasis will be gradually moved to the application of farming systems
analysis in various priority areas of agricultural development. It will be necessary to
meet the growing demand for information related to management techniques of large farms
and estates, as well as for methodologies suitable for emergent farmers on increasingly
commercialized holdings. The mix of activities under farm data systems reflects comple-
tion of work on the development of FARMAP (Farm Management Analysis Package) and
a shift to the development of techniques and training materials for integrated survey
design.

- 42 -

Changes at programme element level:

1988-89 Programme 1990-91
Programme Elements Budget Change Budget

01 Analysis and Development of 874 (229) 645
Sustainable Farming Systems
02 Farm Management Inputs to Programme 594 180 774
and Policy Analysis
03 Management of Commercial and Emergent 131 42 173
Farms
04 Farm Data Systems 210 7 217

TOTAL 1 809 0 1 809

Sub-Drogramme 2.1.1.3: Soil Management and Fertilizers

Changes at programme element level:

1988-89 Programme 1990-91
Programme Elements Budget Change Budget

01 Efficient Fertilizer Use and Integrated 782 317 1 099
Plant Nutrition Systems (IPNS)
02 Fertilizer Supply/Economics/Policies 453 33 486
03 International Fertilizer Supply 172 (172) 0
Scheme (IFS)
04 Support to Statutory and Advisory Bodies 406 0 406
05 Soil Management and Improvement of 435 0 435
Shifting Cultivation
06 Soil Fertility Improvement 185 (185) 0.

TOTAL 2 433 (7) 2 426

Shifts of resources are made within the sub-programme, merging organic recycling and
soil fertility activities with the work on integrated plant nutrition systems (IPNS).

Thus, overall priority is given to activities for promoting IPNS applications. Constraints
to increased mineral fertilizer use point to the need for integration of all available sources
of plant nutrients, to both increase crop production and prevent degradation of lands. A
specific "IPNS" group is therefore proposed to be established. The IPNS group will also
contribute to the new Sub-programme 2.1.1.6. In view of the markedly reduced level of
activities for the IFS, a separate element is no longer required. The proposed allocations
provide for complementing past work on nutrient deficiencies and liming, for continuation
of monitoring of fertilizer markets and economics and for servicing statutory and advisory
bodies. A separate study will be initiated on the fertilizer situations of land-locked
countries. The transfer of fertilizer response data to WAICENT will be effected.

- 43 -

Sub-programme 2.1.1.4: Water Development and Management

Changes at programme element level:

1988-89 Programme 1990-91
Programme Elements Budget Change Budget

01 Irrigation Development, Rehabilitation 294 229 523
and Improvement
02 International Support Programme for 359 (359) 0
Irrigation Management
03 Small Farmer Irrigation Development 148 (148) 0
in Africa
04 Coordination with other Agencies 84 (84) 0
05 Irrigation Management/Performance: 447 327 774
Training and Research
06 Inventory and Evaluation of Irrigation 663 0 663
Development and Management Techniques
and Methodologies

TOTAL 1 995 (35) 1 960

The focus of the sub-programme continues to be the more efficient and economic use of
water resources and irrigation facilities.

Rationalization of irrigation activities is undertaken within the sub-programme through a
merging of hitherto separate elements. Thus, work in 1990-91 will encompass three areas:
irrigation development including rehabilitation and improvement; irrigation management and
performance efficiency; and the inventory and evaluation of irrigation technologies. The
present element for "coordination" is no longer necessary as future coordination
requirements with outside institutions will be absorbed into ongoing technical activities.
Work on irrigation management will be related more to existing schemes. Several activities
are planned to assist governments in evaluating the need for improvement and
rehabilitation.

To assist irrigation development in general, an inventory of proven operational techniques
and methodologies is proposed. Many technologies are already available for a variety of
socio-economic and environmental conditions. The purpose of this element is to ensure
appreciation of viable alternatives.

Sub-programme 2.1.1.5: Conservation and Reclamation

The proposed allocations for this sub-programme are basically unchanged.

The 1990-91 biennium will see the main implementation phase of FAO's work related to
a Soil Conservation Strategy for Africa, comprising follow-up missions, planning advice
and project preparation and implementation. Complementary activities will include the
establishment of networks for exchange of information on the effects of soil erosion on
productivity, on other research activities and on successful techniques to control erosion on
steep lands, particularly in the humid and sub-humid tropics.

- 44 -

Regarding soil salinity, AGL in close cooperation with other divisions and RNEA will
address the component problems of drainage and waterlogging. It will be important to
ensure judicious use of water depending on its quality and on improved land and water
management practices, including appropriate drainage measures at the planning and
construction phases of irrigation projects.

All elements in the sub-programme are linked to the new Sub-programme 2.1.1.6.

Changes at programme element level:

-----------------------------------------------------------------
1988-89 Programme 1990-91
Programme Elements Budget Change Budget
--------------------------------------------------------------------------
01 Soil Conservation and Watershed 859 0 859
Management
02 Assistance on Control and 312 (18) 294
Reclamation of Salt Affected Soils
03 Water Quality for Agriculture 170 2 172
04 Health Aspects of Water Development 140 3 143
05 Waterlogging and Salinity Control 37 18 55
and Drainage
--------------------------------------------------------------------------
TOTAL 1 518 5 1 523
--------------------------------------------------------------------------

Sub-programme 2.1.1.6: Sustaining Resource Potentials

Aspects of sustainability of production are already integral components of many FAO
programmes. However, the importance of this subject points to the need for a specific
sub-programme.

The proposed new Sub-programme 2.1.1.6 is entitled 'Sustaining Resource Potentials' with
an allocation of US$ 560 000.

The anticipated benefits of the new sub-programme are, inter alia, to provide a special
focus on sustainability, to which activities in other units can be conceptually linked.
Initially, three elements are included in the new sub-programme, namely:

Policy advice: This element will cover policy analysis related to the development and
implementation of sustainable production systems. The multidisciplinary analysis will
include production and farm management issues, as well as resource-orientated ones.
The potential impact of climate-induced production changes on food security in
vulnerable countries will receive particular emphasis.

Demonstration of sustainable practices: The objective of this element is to promote
sustainability by demonstrating improved practices and to examine how they could be
encouraged through aid-in-kind/input-for-work schemes. All water (and soil) conservation
techniques, including water harvesting, will be examined in relation to specific
environmental zones. Proven practices will be disseminated through selected projects.

Impact of climatic change: This will deal initially with assessments of shifts in
cropping patterns and increases in occurrence of climatic extremes (drought and floods)
and their effects on water and agricultural resources and production. The possible
impact of sea level rise on agriculture in coastal areas will also be addressed.

- 45 -

Changes at programme element level:

-------------------------------------------------------------------------
1988-89 Programme 1990-91
Programme Elements Budget Change Budget
----------------------------------------------------------------------
01 Policy Advice in Support of Sustainable 0 151 151
Agriculture
02 Demonstration Programme of Sustainable 0 132 132
Farming Practices in particular, Soil
and Water Conservation
03 Analysis of the Impact of Climatic 0 277 277
Change on Agriculture
----------------------------------------------------------------------
TOTAL 0 560 560
--------------------------------------------------------------------------

Sub-programme 2.1.1.7: Regional Offices

Africa: The Regional Office for Africa (RAFR) will continue to disseminate information
and advice on improved land and water use techniques and fertilizer use. Regional and
national programmes in soil correlation, survey, conservation and testing will be further
supported. Particular attention will be given to the development of lowlands and small-
scale irrigation. Improved management of existing irrigation schemes will be sought
through seminars, training courses and field demonstrations of rational water management
techniques. Technical cooperation networks on wetland development and management, soil
correlation, biogas production and water lifting devices will facilitate exchanges of experience
across the region.

Asia and the Pacific: The activities of the Regional Office for Asia and the Pacific (RAPA)
will emphasize environmental issues concerning land and water use in agricultural
development. Regional expert consultations will be held on farming systems development
in highland areas, and environmental considerations in land and water development. It
is also planned to hold meetings of the newly-established regional institutional networks on
bio and organic fertilizer use, problem soil management, and water lifting devices. The
work programme also includes activities aimed at improved irrigation management stressing
farmers' participation, as well as the preparation of guidelines and training courses in farm
data collection and analysis.

Europe: The activities and structures of the European Cooperative Research Networks on
Trace Elements and on Animal Waste Utilization will be reoriented in accordance with
the recommendations made by the ECA (European Commission on Agriculture). Special
emphasis will be given to the protection of the environment and standardization of
analytical methodologies. In addition to a technical consultation of the Network on Animal
Waste Utilization, several workshops will be organized. Both networks will issue a new
series of technical bulletins. Internal shifts have been effected to increase the budgetary
provision under this programme.

Latin America: The development of national capacities in the preparation of irrigation
development projects and management of land and water resources, including watershed
management will be further supported through: a) the Techhical Cooperation Networks
on Development of Lowlands subject to Flooding and on Rational Use of Fuel in
Agriculture; b) preparation and distribution of technical manuals especially adapted to the
needs of small farmers; and c) the Regional Project on Prevention of Land Degradation

- 46 -

in Agricultural Development Involving Irrigation and Drainage Schemes in Latin America.
Under farming systems development, work will focus on labour-intensive farming practices
and marketing by small farmers.

Near East: The Regional Office for the Near East will continue to give priority to the
efficient and rational use of water resources, the improvement and rehabilitation of
irrigation schemes, and water-logging and drainage. The Eleventh Session of the FAO
Regional Commission for Land and Water Use in the Near East will be convened in 1991.
The Joint ESCWA/FAO Agriculture Division (JNEA) will provide assistance in planning and
formulating National Plans of Action to combat desertification. Training activities will
cover the economic aspects of resource conservation and desertification control.

Programme 2.1.2: Crops

The need for increased agricultural and food production, especially in developing countries,
is clear. The activities of the programme are geared to provide a wide range of support
for crop improvements as well as agro-industrial development. Major areas of work are
plant genetic resources, crop improvement and management, seed production, plant
protection, agricultural engineering and food and agro-industries.

The Plant Production and Protection Division (AGP) is responsible for the implementation
of Sub-programmes 2.1.2.1, 2.1.2.2, 2.1.2.3 and 2.1.2.4. The Agricultural Services Division
(AGS) covers 2.1.2.5 and 2.1.2.6, whilst both divisions make respective contributions to
2.1.2.8 and 2.1.2.9. Related activities of Regional Offices and Joint Divisions are under
2.1.2.7.

It is felt necessary to regroup the various agrometeorological activities which are now
carried out in the AGP and AGR (Research and Technology Development) Divisions. In
view of the wide spectrum of users of these activities, and in order to integrate more
effectively the different data and information requirements of these users, including ECLO
and GIEWS, it is proposed that these activities be combined in a new unit in AGR. This
entails a shift of US$ 580 000 from AGP to AGR. This shift masks the full extent of
the net increase proposed for this central crops programme, which is therefore higher than
that inferred from the table at first sight.

The Crops Programme is one of the largest under Major Programme 2.1: Agriculture.
By necessity, it covers a wide range of different crops, distinct crop protection techniques
and various groups of products in the expanding agro-processing sector. Its structure is,
therefore, fairly complex. Where necessary, rearrangement of existing programme elements
has been effected to better reflect component activities. The strengthening of professional
expertise in a few selected areas is one feature of the proposals.

Beyond the above inter-divisional shift, the proposed added resources and shifts among
and within the various technical sub-programmes cover, in particular:

activities on sustainable production for vulnerable areas, particularly dry lands, or
areas of considerable potential for which suitable systems are still lacking; and
plant biotechnologies (Sub-programme 2.1.2.2);

a new programme element for improved on-farm seed production which will assist
member countries "in developing seed production systems at the farm level (Sub-
-programme 2.1.2.3);

- 47 -

strengthening of plant protection activities, including desert locust control, plant
health infrastructures, etc..

Provisions (in US$ '000) for individual sub-programmes are shown in the following table:

1988-89 Programme 1990-91
Sub-Programmes Budget Change Budget

2.1.2.1 Genetic Resources 1 062 (148) 914
2.1.2.2 Crop Improvement and Management 4 356 99 4 455
2.1.2.3 Seeds 2 974 (44) 2 930
2.1.2.4 Crop Protection 4 656 323 4 979
2.1.2.5 Agricultural Engineering and 2 748 0 2 748
Prevention of Food Losses
2.1.2.6 Food and Agricultural Industries 1 733 (69) 1 664
2.1.2.7 Regional Offices 5 197 12 5 209
2.1.2.8 Field Programme Support 3 068 0 3 068
2.1.2.9 Programme Management 1 919 0 1 919

TOTAL 27 713 173 27 886

Sub-programme 2.1.2.1: Genetic Resources

The sub-programme includes the Secretariat of the Commission on Plant Genetic Resources.
It is necessary to provide for the increased activities under the aegis of the Commission
concerning the International Undertaking on Plant Genetic Resources. The increase in
resources of US$ 124 000 for this purpose is covered from reductions under other
programme elements, but the four elements are clearly interrelated.

The current staffing of the Plant Genetic Resources Group comprises five Professional staff
positions; for the next biennium, it is proposed to reduce this number from five to four,
hence the overall decrease.

Changes at programme element level:

1988-89 Programme 1990-91
Programme Elements Budget Change Budget

01 Commission on Plant Genetic Resources 278 124 402
02 Support to Member Countries on Plant 428 (145) 283
Genetic Resources
03 Training on Genetic Resources 199 (117) 82
04 Information on Plant Genetic Resources 157 (10) 147

TOTAL 1 062 (148) 914

Sub-programme 2.1.2.2: Crop Improvement and Management

As the table below shows, there is no intention to abandon any of the current areas of
work, which are all of considerable interest to Member Nations. However, depending on

- 48 -

the nature of planned activities and the expected intensity of requests for assistance, shifts
are effected.

An increase is proposed, for instance, for work on legumes, cereals and essential oil crops.
Generally, there will be emphasis on the integrated crop development approach where
production, processing and marketing constraints are addressed simultaneously. Another
increase is proposed for crop diversification, in order to provide alternatives for the small
farm sector to improve food supply and cash resources. Conversely, for fruit crop
production development, a decrease is effected following a net increase in the previous
biennium. Two new elements are proposed biotechnology in plant production which
presents considerable opportunities and challenges for improved crop production; and the
development of crop policies within the framework of sustainable systems.

Changes at programme element level:

1988-89 Programme 1990-91
Programme Elements Budget Change Budget

01 Development of Food Legumes 272 204 476
02 Improvement of Rice and Rice-based 670 (87) 583
Farming Systems
03 Improvement and Transfer of Cereal 269 136 405
Production Technology (Excluding Rice)
04 Improvement and Intensification of 450 0 450
Vegetable Production
05 Promotion of Root and Tuber Crop 426 (61) 365
Production and Improvement for Small
Holdings
06 Development of Fruit Production 658 (99) 559
07 Crop Diversification and Intensifi- 261 81 342
cation of Mixed Cropping Systems
08 Development of Oil Crops 275 44 319
09 Fibre Crop Development in Semi-arid, 182 (13) 169
Sub-humid and Humid Tropics
10 Alternatives to Shifting Cultivation 172 1 173
11 Industrial Crop Diversification, 141 56 197
Illicit Drug Crops Substitution and
Development of Under-utilized Plants
12 Agrometeorological Crop Monitoring 580 (580)* 0
and Support to the Food Security
Programme
13 Promotion of Plant Biotechnologies 0 266 266
14 Policies for Sustainable Production 0 151 151
Systems

TOTAL 4 356 99 4 455

* Transfer to Sub-programme 2.1.4.4.

Sub-programme 2.1.2.3: Seeds

The new programme element Improved On-Farm Seed Production will assist in
developing seed production, processing, quality control and distribution systems for farmers
who have limited or no access to quality seeds of improved varieties. The other planned

- 49 -

activities build on FAO's past achievements in the seeds sector. Close collaboration will
be maintained with national and international institutions working in this field and
particular attention will be given to germplasm introduction and exchange and plant
improvement of local ecotypes, land races and varieties, jointly with the Genetic Resources
Sub-programme (2.1.2.1).

Changes at programme element level:

1988-89 Programme 1990-91
Programme Elements Budget Change Budget

01 Seed and Planting Material 363 (25) 338
Introduction and Exchange
02 Seed Information System (SIS) 436 (27) 409
03 Strengthening of National Seed 1 248 (168) 1 080
Programmes
04 Training and Information on Seed 927 (119) 808
Improvement
05 Improved On-farm Seed Production 0 295 295

TOTAL 2 974 (44) 2 930

Sub-programme 2.1.2.4: Crop Protection

Changes at programme element level:

1988-89 Programme 1990-91
Programme Elements Budget Change Budget

01 Plant Quarantine 480 46 526
02 Improving Weed Management 356 (136) 220
03 Pesticides 1 030 0 1 030
04 Plant Pathology 392 (22) 370
05 Integrated Pest Management 421 142 563
06 Post-Harvest Pest Management 235 (127) 108
07 Vertebrate Pest Management 274 (165) 109
08 Migratory Pest Control 798 299 1 097
09 Plant Protection Information 319 (8) 311
10 Strengthening Plant Protection 351 294 645
Infrastructures

TOTAL 4 656 323 4 979

Activities in plant protection build on FAO's traditional supervisory role, as the universally-
recognized conduit for intergovernmental cooperation. Therefore, the implementation of the
International Plant Protection Convention retains due prominence, especially the information
exchange aspects which are part of FAO's mandate. In the area of pesticides, attention
will continue to be given to the implementation of the Code of Conduct on the Distribution
and Use of Pesticides: further extra-budgetary resources will be sought for assistance to
member countries. The inclusion of the clause on Prior Informed Consent (PIC) in the
Code is expected to result in substantial extra tasks for the Secretariat.

50 -

The elements dealing with integrated pest management, plant pathology and weed
management address known problems in developing countries, chiefly through long-term
programmes to develop and transfer knowledge on improved control techniques. Among
major problems are pest control in vegetable production, where occurrences of mis- and
over-use of pesticides are of concern, and the control of the parasitic Striga weed species
in Africa. The reduction in total resources for weed control is due to the subsuming of
the activities of the Panel of Experts on Weed Control by the Panel of Experts on
Integrated Pest Management. The coordination of control activities against locust
infestations is a clear candidate for increased Regular Programme funding to provide for
quick response to emergencies. The development of programmes for institutional support
to plant protection services, is particularly aimed at the considerable requirements for
assistance throughout Africa.

Sub-programme 2.1.2.5: Agricultural Engineering and Prevention of Food Losses

Changes at programme element level:

1988-89 Programme 1990-91
Programme Elements Budget Change Budget

01 Agricultural Engineering (General) 474 (474) 0
02 Agricultural Mechanization 661 (661) 0
03 Storage and Rural Structures 507 (507) 0
04 Technical Support to Member Countries 277 (277) 0
and Collaboration with UN Agencies and
other International Organizations
05 Action Programme for the Prevention 829 0 829
of Food Losses
06 Agricultural Engineering Information 0 688 688
Exchange
07 International Cooperation and Liaison 0 353 353
for Agricultural Engineering
08 Input Management Related to Agricultural 0 365 365
Engineering
09 Alternative Technologies in Agricultural 0 363 363
Engineering and Improved Project Design
10 Training on Agricultural Engineering 0 150 150
Applications

TOTAL 2 748 0 2 748

The programme elements constituting this sub-programme have been rearranged to reflect
a change from a disciplinary/sub-disciplinary approach to a functional approach. The total
allocation remains unchanged.

Therefore, the sub-programme's main tasks can be perceived as: 1) to develop and operate
a system of engineering information flow amongst institutions responsible for education,
research, extension, and other support services on a worldwide basis; 2) to enhance FAO's
position as the international focal point for agricultural engineering; 3) to support improved
procedures for selection and costing of inputs appropriate for all sizes of farms; 4) to
promote multi-farm use of machinery and management support services; 5) to gather
technical data and experience available and act as a catalyst for actions to be taken by

51 -

institutions, particularly in developing countries; and 6) to redress the lack of adequately
trained people to manage, operate and maintain engineering inputs on a sustained basis.

The Prevention of Food Losses programme will continue to involve primarily project
identification, formulation and advisory missions and preparing publications and training
programmes at the national and regional levels. More attention to loss reduction
programmes for fruit, vegetables and root crops will result in a more complete food crop
coverage.

Sub-programme 2.1.2.6: Food and Agricultural Industries

Changes at programme element level:

1988-89 Programme 1990-91
Programme Elements Budget Change Budget

01 Food Processing and Handling including 637 (151) 486
Indigenous and Composite Flours
02 Processing of Medicinal Plants, Spices 0 123 123
and Aromatics
03 Apiculture 284 (75) 209
04 Hides and Skins and Animal By-products 196 (79) 117
05 Natural Fibres including Sericulture 313 (70) 243
06 Agricultural Processing for Industrial 57 69 126
Applications
07 Process Biotechnology (previously 246 (19) 227
Emerging Technologies)
08 Private Sector Development 0 133 133

TOTAL 1 733 (69) 1 664

This sub-programme has also been restructured within the total allocation to make way
for new elements. Food Processing and Handling, representing 30 percent of the resource
allocation, will focus on new marketable and convenience food products from indigenous
crops. It is planned to test the introduction of the concept of modern, small-scale,
Community Processing Centres (CPC) designed to prevent post-harvest losses at village
level. One new element deals with medicinal plants, spices and aromatics, especially the
small-scale processing of these high-value products. Work on apiculture will focus on new
management techniques, and disease and pest control. Activities on natural fibres including
sericulture, will promote new value-added applications, such as geotextiles and natural fibre
blends for industrial use.

The element "Agricultural Processing for Industrial Applications" will address the very
large and increasing market for processed agricultural products for use in small-scale
industrial applications such as starches from roots, tubers and maize grains for use in
adhesives, paper and box production. "Process Biotechnology", formerly entitled "Emerging
Technologies", will include the promotion of improved fermentation technologies, small-scale
biochemical production, improved residue technologies. The growing importance of the
private sector will be taken into account through agro-industry sectoral studies, technology
transfer policies, joint venture studies, impact analysis and processing for export.

- 52 -

Sub-programme 2.1.2.7: Regional Offices

Africa: RAFR will further sponsor crop trials and on-farm demonstrations and assist in
the organization of in-service training courses at the country level for extensionists.
Assistance to member countries and collaboration with intergovernmental and other
organizations in monitoring and control of migratory pests, particularly locusts, grasshoppers
and armyworms, will remain a primary concern of the office. Sub-regional technical
cooperative networks in plant quarantine, pesticide management, and weed control will be
established and supported. Training of extension workers and farmers, especially women,
in improved postharvest and food processing technology will be carried out.

Asia and the Pacific: The role of biotechnology in crop production, protection and utilization
will be reviewed by a regional expert consultation. Other expert consultations will address
more specifically biological control of pests and fruitfly disinfestation. RAPA will continue
to assist member countries in increasing rice productivity through the hybrid rice
technology. In this connection, the current status and future prospects of this technology
will be assessed through a regional expert consultation. Regional networks on vegetables,
cotton, oilseed crops and coarse grains and legumes will be further promoted and serviced.
Another planned expert consultation will deal with the production of oilseed crops for which
successful experiences will be documented and disseminated. Work on horticultural crops
will focus on minor and underexploited fruits as well as roots and tubers in the Pacific
Islands. RAPA will continue to provide secretariat services to the Asia-Pacific Plant
Protection Commission (APPPC), and issue the quarterly APPPC Newsletter and Technical
Bulletins.

In the areas of agricultural mechanization, prevention of food losses and postharvest
technology, RAPA will organize a regional workshop on handling, processing, storage and
transport of tropical produce. In view of rapid agro-industrial growth in member countries,
a regional expert consultation will discuss policy and strategy formulation for agro-industries
development in the Nineties.

Europe: REUR will' continue to promote agricultural research cooperation through networks
and other initiatives. In addition to the existing cooperative research networks on olives,
sunflower, soybean and cotton, new research networks or ad hoc research groups will be
established on rice, potatoes, flax and nuts. Expert consultations on biological farming,
nonfood agriculture and on perspectives of biotechnologies in agricultural production will be
organized. Two technical consultations on olives and sunflower and several workshops will
be held in the 1990-91 biennium. Each network will publish its bulletin. An increased
provision has been made.

Latin America: Priority is assigned to improvement and intensification of vegetable
production. Work will continue on cowpea and pigeon pea in the Caribbean and peas and
lentils in the Andean countries. Concerning roots and tubers, work will concentrate on
yams, cassava, taro and tannia in Central America and the Caribbean and on under-
exploited Andean crops. Cultivar trials and in-vitro germplasm exchange will continue as
a mechanism for promoting introduction of new crops or new varieties. A programme on
transfer of technology for food crops seeds will be implemented. The Technical Cooperation
Network on Food Crops Production will be the main mechanism to foster the above
activities.

In respect of plant protection, implementation of the International Plant Protection
Convention, Code of Conduct on Pesticides and the work of the Caribbean Plant Protection
Commission will involve cooperation among regional and national plant protection
organizations on pest surveying, information and warnings, technical meetings, training
courses and publications. TCDC activities on weed management, vegetable protection, fruit-
flies, cotton sanitation and integrated and biological pest control will be carried out by

53 -

regional task forces and will be supported by workshops, newsletters and the exchange of
information on non-chemical control agents.

The Technical Cooperation Network on Postharvest Grain Technology will continue to be
instrumental in developing regional cooperation. Likewise, the Technical Cooperation
Network on Tropical Fruits Processing will continue supporting TCDC activities and
exchanges regarding technological developments, especially in connection with exports. Work
on African oil palm will be substantially reduced.

Near East: National programmes to overcome constraints in cereal production and to
train specialists in major rainfed crops are expected to require extensive assistance. Plant
protection activities will be geared to upgrading capabilities at the national and regional
levels to combat pre and postharvest pest problems; to promote plant quarantine; and
to implement the International Code of Conduct for Distribution and Use of Pesticides.
Efforts will continue towards establishing a Cooperative Regional Network of National
Institutions for Agro-industrial Development in the Near East Region.

Programme 2.1.3: Livestock

In addition to supplying meat, milk and other products to meet rapidly rising consumer
demands, the livestock sector makes multiple contributions to rural development. This
programme aims at supporting national actions in animal feeding, disease control and
breeding, processing of animal products and the development of pastoral and mixed farming
systems. The latter systems should contribute to improving the welfare of rural people
while limiting land degradation and conserving land and water resources. The promotion
of inter-country cooperation and training activities are of primary importance. The
programme is implemented in collaboration with the related International Agricultural
Research Centres.

Responsibility for implementation of the programme rests with the Animal Production and
Health Division (AGA) for Sub-programmes 2.1.3.2, 2.1.3.3, 2.1.3.4, 2.1.3.5, 2.1.3.6 and
2.1.3.9. Sub-programmes 2.1.3.1 and 2.1.3.8 are shared between AGA and the Plant
Production and Protection Division (AGP). Sub-programme 2.1.3.7 covers the activities of
the Regional Offices and Joint Divisions. Resources for the publication of the World
Animal Review are distributed among the substantive sub-programmes.

The resources proposed to be allocated to the technical sub-programmes remain at broadly
similar levels to those of the present biennium. However, high priority is being given to
biotechnology activities in animal production and health in the developing countries, under
Sub-programmes 2.1.3.2 and 2.1.3.3. The programme will cover, in particular:

improvement and better utilization of grassland, forage and feed resources without
environmental degradation (Sub-programme 2.1.3.1);

direct action to control diseases by strengthening veterinary services and disease
control/prevention programmes; transfer and adaptation of new biotechnological
methods in disease diagnosis and vaccine production (Sub-programme 2.1.3.2);

selection and upgrading of local genetic resources and the conservation of local breeds
(Sub-programme 2.1.3.3);

support to off-farm activities in dairy and meat development through the
establishment of village processing facilities to serve as marketing outlets for
smallholders (Sub-programmes 2.1.3.4 and 2.1.3.5);

54 -

active promotion of small and large ruminant production, as well as poultry and
rabbit and other small animal production (Sub-programme 2.1.3.6);

support to the field programme (Sub-programme 2.1.3.8).

Provisions (in US$ '000) for individual sub-programmes are shown in the following table:

1988-89 Programme 1990-91
Sub-Programmes Budget Change Budget

2.1.3.1 Grassland, Forage and Feed 1 575 214 1 789
Resources
2.1.3.2 Animal Health 4 407 194 4 601
2.1.3.3 Genetic Resources 729 132 861
2.1.3.4 Dairy Development 932 (64) 868
2.1.3.5 Meat Development 1 290 (197) 1 093
2.1.3.6 Livestock Production 1 420 (37) 1 383
2.1.3.7 Regional Offices 2 883 (40) 2 843
2.1.3.8 Field Programme Support 2 073 (118) 1 955
2.1.3.9 Programme Management 974 (24) 950
-------------------------c--------3---------------"--------
TOTAL 16 283 60 16 343
-c---------c------------~---'--'----------------------------

Sub-programme 2.1.3.1: Grassland. Forage and Feed Resources

The increase foreseen under this sub-programme is primarily for feed resources utilization.
For this, a small shift of staff resources is made from Sub-programme 2.1.3.6: Livestock
Production. Regional task forces were successfully activated for the introduction of molasses
blocks, treatment of low quality roughages and the use of sugarcane juice for monogastric
animals feeding. These technologies will now be developed on a larger scale. In addition,
an expert consultation will be held on alternative feeding systems based on roots, tubers,
bananas and plantains as main ingredients. Another expert consultation will study the role
of legume and other fodder trees as protein sources for livestock.

Biotechnology applications to animal nutrition will continue to be analyzed with regard to
rumen microflora manipulation, in-vitro feedstuff treatment by microflora and fungi, single
cell protein production, etc..

The AGP Division will address the major constraint to increased forage production
represented by the shortage of seeds, Additional training activities will be implemented,
especially for arid and semi-arid areas.

Changes at programme element level are on the following page:

55 -

1988-89 Programme 1990-91
Programme Elements Budget Change Budget
--------------------------------------------------------------------------
01 Integrated Management of Arid and 360 43 403
Semi-arid Grazing Resources (EMASAR)
02 Development of Pastures in Humid Areas 306 58 364
03 Biological Nitrogen Fixation 128 0 128
04 Feed Resources Utilization 315 273 588
05 Feeding Systems and Feed Security 365 (174) 191
06 Application of Biotechnology in 101 14 115
Animal Nutrition
-- ---------------------------------------- ------------------------------
TOTAL 1 575 214 1 789
-- ------------------------------------------------------------ ----------

Sub-programme 2.1.3.2: Animal Health

Changes at programme element level:

1988-89 Programme 1990-91
Programme Elements Budget Change Budget
-- ------------------------------------------- ----------------------------
01 Disease Intelligence/Veterinary 916 229 1 145
Services Development
02 Control of Infectious Diseases 1 537 (144) 1 393
03 Control of Parasitic Diseases 517 13 530
04 Control of Tsetse/Trypanosomiasis 1 068 (18) 1 050
05 Application of Biotechnology in 369 114 483
Animal Health
-------------------------------------------------------------------------
TOTAL 4 407 194 4 601
-- -- -- -- -- -- -- -- ------'----------------------"-'-"

No major changes are foreseen with regard to well-established animal disease control
activities, although new initiatives are proposed for the control of non-infectious chronic
diseases. The transfer of new biotechnological methods to developing countries, in particular
for the diagnosis of animal diseases and vaccine production, will be further promoted.
Training and applied research, through networks of collaborating laboratories and other
forms of inter-country cooperation, will continue. Action in emergencies, e.g. related to
rinderpest and foot-and-mouth disease remains of high priority. The control of ticks and
tick-borne diseases, including the eradication of the tropical bont tick from the Caribbean,
will be pursued. Activities under the Programme for the Control of Trypanosomiasis and
Related Development, carried out in collaboration with IAEA and international research
institutes, are expected at the same level. Continued support will be given to the
strengthening of veterinary services and education.

Sub-programme 2.1.3.3: Genetic Resources

In order to reflect a more practical grouping of the activities concerned, the elements of
this sub-programme have been rearranged. An important feature is the extended support
to the application of biotechnology in animal breeding and genetics including embryo transfer

- 56 -

and the establishment of Open Nucleus Breeding Systems. This involves support to
regional networks in Asia and Latin America and the Caribbean. Other activities concern
the establishment of regional animal gene banks, a global animal data bank, the
introduction of artificial insemination in breeding programmes and the FAO Bull Semen
Donation Scheme.

Changes at programme element level:

--------------------------------------------------------------------------
1988-89 Programme 1990-91
Programme Elements Budget Change Budget
--------------------------------------------------------------------------
01 Animal Breeding and Genetic Resources 351 (351) 0
02 Artificial Insemination and Embryo 226 (226) 0
Transfer
03 Application of Biotechnology in 152 189 341
Animal Breeding and Genetics
04 Genetic Improvement of Livestock 0 314 314
05 Preservation of Valuable Endangered 0 206 206
Indigenous Breeds
--------------------------------------------------------------------------
TOTAL 729 132 861
--------------------------------------------------------------------------

Sub-programine 2.1.3.4: Dairy Development

Changes at programme element level:

-----------------------------------------------------------------------
1988-89 Programme 1990-91
Programme Elements Budget Change Budget
--------------------------------------------------------------------------
01 Integrated Dairy Development 543 (39) 504
02 Promotion and Improvement of 326 (154) 172
Technology of Dairy Products
03 Code of Principles on Milk and Milk 63 (31) 32
Products
04 Dairy Training and Education 0 160 160
--------------------------------------------------------------------------
TOTAL 932 (64) 868
--------------------------------------------------------------------------

The promotion of dairy activities among smallholders and improved technology for the
production of indigenous milk products is the mainstay of this sub-programme. The dairy
training activities will be strengthened, with teachers as their primary target group. For
improved coherence, the dairy training and education component which was previously
included under "livestock education" in the Sub-programme 2.1.3.5: Meat Development has
been transferred to this sub-programme. The promotion of integrated dairy development
will build on the integrated model dairy projects already established. An appraisal will
be made of the availability of processing facilities and potential for dairy equipment
manufacture in selected developing countries.

- 57 -

Sub-programme 2.1.3.5: Meat Development

Support will continue to be provided to the establishment of village meat industries with
small-scale slaughter facilities for cattle, small ruminants and pigs. The introduction and
development of low cost meat preservation methods is another priority in view of the fact
that, in many developing countries, an uninterrupted cold chain for meat or meat products
is not available. Training and education aspects need to retain their prominence.

Changes at programme element level:

1988-89 Programme 1990-91
Programme Elements Budget Change Budget

01 Meat Technology and Hygiene 754 (81) 673
02 Meat Training and Education 536 (116) 420
(formerly Livestock Education)

TOTAL 1 290 (197) 1 093

Sub-programme 2.1.3.6: Livestock Production

Changes at programme element level:

1988-89 Programme 1990-91
Programme Elements Budget Change Budget

01 Animal Production Systems 1 182 (25) 1 157
02 Application of Biotechnology in 238 (12) 226
Livestock Production

TOTAL 1 420 (37) 1 383
-"---- - - - - -----------------------'-- ---

The main focus is on the formulation and demonstration of effective strategies and
integrated programmes for the advancement of livestock production systems. Special
attention will continue to be given to small animals (sheep, goats, pigs, poultry and
rabbits). Sustainable production systems can be developed through the improvement of
indigenous breeds. Attention will also be given to buffalo production, with emphasis on
practical herd management programmes. Similarly, assistance will be provided to identify
and promote realistic development strategies and production systems (multipurpose) for the
traditional smallholder cattle sector.

Sub-programme 2.1.3.7: Regional Offices

Africa: Planned RAFR activities include: the provision of assistance in the establishment
of fodder banks and use of agro-industrial by-products in animal feeding; and monitoring
of the implementation of the Pan-African Rinderpest Campaign (PARC). Technical
cooperation networks on veterinary laboratories and traditional and low-cost methods of
meat preservation, e.g. smoking, salting and drying technologies will be established. RAFR

58 -

will continue to cooperate with AGA Division in order to strengthen national capabilities
in tsetse and trypanosomiasis control and in supporting artificial insemination programmes.

Asia and the Pacific: Technical support will be provided to the coordination and
implementation of the South Asia Rinderpest Eradication Campaign. Selected countries
will also be assisted in coping with foot-and-mouth disease control and eradication. RAPA
will assist the Pacific Island countries in improving their animal quarantine management
services. The improvement of feeding practices and the better utilization of feed resources
will be sought by exploring systems based on agro-industrial wastes/by-products as well as
pasture and fodder crops/trees. RAPA will continue to service the Regional Animal
Production and Health Commission for Asia and the Pacific (APHCA) as a well-established
vehicle for TCDC. The monthly publication "Asian Livestock" will contribute to
disseminating information on regional livestock development activities.

Europe: The possibility of establishing a cooperative research network on animal production
systems will be explored by a consultation between representatives of concerned research
institutions in the region. Prospects for research cooperation in the field of applied
biotechnology to animal health protection will be examined by an ad hoc meeting.

Latin America: The Technical Cooperation Network among Veterinary Research and
Diagnostic Laboratories will continue work on neonatal diarrhoeas, hemoparasites and viral
diseases of swine. Reference services established by the network will be strengthened
through improved bibliographic and epizootiological information, standardization of technical
methodologies and production and distribution of standardized reagents. A bulletin dealing
with exotic diseases will be issued. The Regional Commission for Livestock Development
and Working Group on Biotechnology will require RLAC inputs. Training on icthiopathol-
ogy in veterinary schools and laboratories will be carried out.

With regard to livestock production, training and extension on range management will
retain priority. Self-teaching manuals for small farmers will continue to be produced.
Genetic improvement through exchange of breeding material will be supported. The
FAO/DANIDA Regional Dairy Development and Training Team for Latin America and the
Caribbean will continue its operations in support of milk production and processing.

Near East: Activities on range management will aim, inter alia, at developing forage
resources and including forage legumes in crop rotations. National programmes for the
production of improved seed of forage species will be supported. The regional Middle and
Near East Animal Production and Health Development Project (MINEADEP) will continue
to be backstopped and follow-up ensured on the proposed programme for the coordination
of rinderpest control in West Asia. The Near East Regional Cooperative Research and
Development Network on Small Ruminants will pursue its activities. A workshop on
research techniques in small ruminant production will be organized.

Programme 2.1.4: Research and Technology Development

Increases in food and agricultural production depend in large measure on the generation,
adoption and application of technology including techniques which are applicable to local
conditions. In this regard, research and technology development aspects relate to most
activities of the Organization. Programme 2.1.4 provides for in-house coordination and
general support, particularly through its sub-programmes on research development, remote
sensing, environment and energy. The programme ensures liaison and collaboration in
these matters with a wide range of institutions and organizations in and outside the UN
system.

- 59 -

Responsibility for the implementation of Sub-programmes 2.1.4.1, 2.1.4.4, 2.1.4.5, 2.1.4.8
and 2.1.4.9 rests with the Research and Technology Development Division (AGR). The
Joint FAO/IAEA Division of Nuclear Techniques in Food and Agriculture (AGE) is
responsible for Sub-programme 2.1.4.2 and the Library and Documentation Systems Division
(GIL) is responsible for Sub-programme 2.1.4.3. Sub-programme 2.1.4.7 covers the activ-
ities of Regional Offices and Joint Divisions under the programme.

Provisions (in US$ '000) for individual sub-programmes are shown in the following table:

1988-89 Programme 1990-91
Sub-Programmes Budget Change Budget

2.1.4.1 Research Development 2 815 100 2 915
2.1.4.2 Agricultural Applications of 2 996 59 3 055
Isotopes and Biotechnology
2.1.4.3 AGRIS and CARIS 3 784 286 4 070
2.1.4.4 Remote Sensing and Agrometeorology 1 294 520 1 814
2.1.4.5 Environment and Energy 1 551 9 1 560
2.1.4.7 Regional Offices 1 358 (375) 983
2.1.4.8 Field Programme Support 436 162 598
2.1.4.9 Programme Management 1 086 0 1 086

TOTAL 15 320 761 16 081

The problems addressed by this programme are mainly of an interdisciplinary nature.
The increasing requirements for FAO's assistance in the areas of the programme's respon-
sibilities militate for the strengthening of its established technical sub-programmes. Some
reorientation of priorities within the programme has been effected, as explained further
below. As mentioned under Programme 2.1.2: Crops, agrometeorological activities are
proposed to be consolidated in the AGR Division. Sub-programme 2.1.4.4, hitherto "Remote
Sensing Technology", has been renamed "Remote Sensing and Agrometeorology". In broad
terms, the programme concerns:

support to national research systems, particularly in research policy and planning,
and furthering international research cooperation (Sub-programme 2.1.4.1);

strengthening the capabilities of developing countries in the application of remote
sensing, satellite monitoring of environmental conditions and agrometeorology (Sub-
programme 2.1.4.4);

planning and management related to the environment including environmental impact
assessment, integration of environmental concerns in the development process and
energy assessment and planning for rural and agricultural development (Sub-
programme 2.1.4.5).

Sub-programme 2.1.4.1: Research Development

A new programme element is proposed for support to national research systems regarding
policy, planning and information aspects. This is in response to the increasing number of
requests for assistance on research policy and planning received from member countries.
It will incorporate work on research and technology orientations for sustainable agricultural
development. The existing element on technology assessment and transfer will be
strengthened to build developing countries' capacity for evaluation, adaptation and transfer

- 60 -

of traditional and new emerging technologies to farmers. The FAO contribution to the
Technical Advisory Committee (TAC) of the CGIAR, which is jointly sponsored by FAO,
the World Bank and UNDP, needs to be increased under the element on international
agricultural research support.

With the elimination of two programme elements, one on review and analysis of
agricultural research systems and the other on inter-country research cooperation, the
relevant activities previously covered by these elements and to be continued, will be
incorporated into the elements on "research policy and planning" and "technology
assessment and transfer". The reduction under research management training simply
reflects the facts that training material and methodologies have been largely elaborated
and that the sub-programme has been increasingly successful in attracting joint financing
for its training activities.

Changes at programme element level:

1988-89 Programme 1990-91
Programme Elements Budget Change Budget

01 Strengthening Research Management 453 (95) 358
Capabilities
02 Research Review Missions and Advisory 294 27 321
Services
03 Review and Analysis of Agricultural 367 (367) 0
Research Systems
04 Technology Assessment and Transfer 305 135 440
05 Research Policy, Planning and. 0 500 500
Information
06 International Agricultural Research 1 127 100 1 227
Support
07 Science and Technology Coordination 76 (7) 69
08 Inter-Country Research Cooperation 193 (193) 0

TOTAL 2 815 100 2 915

Sub-programme 2.1.4.2: Agricultural Applications of Isotopes
and Biotechnology

The Joint FAO/IAEA Division of Nuclear Techniques in Food and Agriculture, located in
Vienna, Austria, concentrates on applying technology based on nuclear techniques, often
combined with biotechnology, for the solution of agricultural problems in developing
countries. A new programme element "Agricultural Applications of Molecular Biology" is
being introduced. This new programme element will deal with the application of nuclear
techniques in molecular biology to derive new cultivars of plants as well as provide
molecular biology inputs into the other programme elements.

Changes at programme element level are on the following page:

- 61 -

1988-89 Programme 1990-91
Programme Elements Budget Change Budget

01 Soil Fertility, Irrigation and Crop 346 (29) 317
Production
02 Plant Breeding and Genetics 477 (29) 448
03 Animal Production and Health 532 (91) 441
04 Insect and Pest Control 777 (108) 669
05 Agrochemicals and Residues 601 (30) 571
06 Food Preservation 263 0 263
07 Agricultural Applications of Molecular 0 346 346
Biology

TOTAL 2 996 59 3 055

Selected examples of specific activities foreseen under the present six elements are given
below:

Efficient use of fertilizer and water in crop production: direct assessment of the
efficient use of biofertilizers, such as azolla and blue-green algae as a supplementary
source of nitrogen to rice; potential use of local rock phosphates as a source of
phosphorus fertilizers; selection of species and varieties of crop plants and trees
which have high efficiency in uptake and use of water and phosphate in order to
enhance plant productivity and foster low input sustained agriculture; review of
Rhizobium ecology factors critical to the establishment of inocula in the field; etc..

Plant breeding and genetics: selection of mutants possessing improved resistance or
tolerance to pathogens, pests and environmental stresses; attention to the
domestication of new crop plants for industrial uses.

Animal production and health: improvements in animal nutrition and reproductive
efficiency, and better diagnosis and control of diseases especially for African and
Latin American livestock.

Insect and pest control: application of the Sterile Insect Technique (SIT) in large-
scale integrated field projects to eradicate tsetse flies in Africa and the Mediter-
ranean fruit fly in North Africa and Latin America; increased efficiency of mass
rearing the tsetse fly; new methods of insect control, such as induced F-1 Sterility,
for controlling the major crop pest Lepidoptera in several developing countries.

Agrochemicals and residues: residue studies using labelled compounds in various
ecosystems and in agricultural produce; controlled release of pesticides; biological
conversion of agricultural residues to animal feed; follow-up studies on the effect
of radioactive fallout on agriculture.

Food preservation: transfer of technology from pilot/semi-commercial to commercial
scale for post-harvest loss reduction, disinfestation of dried fruit and fish, etc.;
training on food irradiation processing; acceptance of codex standards for irradiated
foods; regulatory process control, detection methods and supply of clear and
adequate information to the public on food irradiation for acceptance of this process
in trade and by consumers.

- 62 -

Sub-programme 2.1.4.3: AGRIS and CARIS

Changes at programme element level:

1988-89 Programme 1990-91
Programme Elements Budget Change Budget
-- -- -- -- -- -- -- -- ---------"------'--------"---
01 Coordination of AGRIS and CARIS 530 55 585
Participating Centres
02 Strengthening of AGRIS and CARIS Centres 470 104 574
03 Systems Development and Maintenance 562 0 562
04 AGRIS Data Base Maintenance, Outputs 1 539 143 1 682
and Services
05 CARIS Data Base Maintenance, Outputs 147 3 150
and Services
06 Support to Documentation Projects 198 22 220
07 Systems Management 338 (41) 297
------------------------------"-------------------------
TOTAL 3 784 286 4 070
--------------------------'------------------------------'

Increased resources are needed to match the rapid growth of the two worldwide AGRIS
and CARIS networks, composed of 158 and 112 centres respectively. Part of this increase
will be offset by a reduction (US$ 86 000) in Programme 5.1.2 implemented by the same
division.

Priority will continue to be given to the strengthening of participating centres and to
effective coordination. This will be accomplished through training and assistance missions,
the production and dissemination of training materials and manuals, the development of
computer-assisted training packages as well as manuals and technical notes for field
documentation projects. Follow-up, including regular feedback on the centres' performance,
will be stepped up. The divisional newsletter which provides for effective communication
with the participating centres and projects will be revived, while the AGRIS and CARIS
Technical Consultations will be combined in one biennial meeting. The growth of the
AGRIS data base by 250 000 records to nearly 1.9 million by the end of the biennium
will require additional computer resources for maintenance and for the production of
standard outputs. The dissemination of the systems' services and output products will be
improved by using modern technologies and will be encouraged by promotional efforts
including augmented user training. The systems management costs will be kept to the
minimum required.

Sub-programme 2.1.4.4: Remote Sensing and Agrometeorology

A new programme element on Agrometeorology has been introduced to reflect the transfer
of the Agrom'eteorology Group from AGP to AGR. In addition, resources from within the
sub-programme will be redeployed to strengthen work in this area. Another proposed
change is the strengthening of satellite monitoring of environmental conditions, for which
the establishment of a new P-5 Senior Officer post is proposed. Significant developments
have been achieved during 1988-89 through trust fund support for the development of a
satellite-based system for preparing precipitation and vegetation estimates, which has now
become fully operational. Together, these changes are expected to result in rationalization
of the services provided in these areas with the main beneficiaries being ECLO, GIEWS
and technical support activities to member countries.

- 63 -

To accommodate the above changes, a reduction is effected under the element "Coordination
of FAO Space Activities", through elimination of non-recurring meeting costs. A lower
level of Regular Programme resources for pilot action studies and training activities is
expected to be compensated by extra-budgetary funds. The sub-programme is the focal
point within the UN system for the application of remote sensing to renewable natural
resources. Finally, increased support to the Field Programme requires a transfer of staff
resources (US$ 162 000) to Sub-programme 2.1.4.8.

Changes at programme element level:

---------------------------------------------------------
1988-89 Programme 1990-91
Programme Elements Budget Change Budget

01 Coordination of FAO Space Activities 225 (100) 125
02 Advisory Services on Space 281 (30) 251
Applications and Pilot Action Studies
03 Remote Sensing Education and Training 260 (62) 198
04 Agrometeorology 0 612* 612
05 Satellite Monitoring of Environmental 261 100 361
Conditions
06 Information and Support Services 267 0 267

TOTAL 1 294 520 1 814

* Mostly transfer from Sub-programme 2.1.2.2.

Sub-programme 2.1.4.5: Environment and Energy

Changes at programme element level:

1988-89 Programme 1990-91
Programme Elements Budget Change Budget

01 Environmental Planning and Management 403 (28) 375
02 Integration of Environment into the 172 75 247
Development Process
03 Interagency Cooperation and Inter- 246 0 246
departmental Coordination on Environment
04 Energy Assessment and Planning for 157 0 157
Rural and Agricultural Development
05 Energy Technology Development 276 (38) 238
06 Interagency Cooperation and Inter- 110 0 110
departmental Coordination on Energy
07 Information Exchange on Environment 187 0 187
and Energy

TOTAL 1 551 9 1 560

The main change proposed for this sub-programme is for strengthening policy guidance
and assistance in the integration of environmental policies and concerns into the
development process. Work will include development of approaches and the provision of
advisory services in response to increasing requests from member countries. The element

- 64 -

will pay attention to environment and energy as essential components of sustainable
development.

Environment planning and management will continue to promote the concept of and
methodologies for environmental impact assessment. The small decrease reflects completion
of preparatory work for environmental impact assessment undertaken in previous biennia.
The other area in which a reduction is proposed is energy technology development, where
extra-budgetary funds are being sought to expand work.

Sub-programme 2.1.4.7: Regional Offices

Africa: The Regional Office will pursue, in cooperation with Headquarters' units, the
assessment of technologies developed at the international and national levels and determine
therefrom priority areas of research to bridge remaining technological gaps. It will work
towards the establishment of a network on agricultural research policy and management
in Africa.

Asia and the Pacific: The Asia-Pacific Association of Agricultural Research Institutions
(APAARI) will be supported through collection and dissemination of information. Several
countries in the South Pacific will require assistance to strengthen their national agricultural
research systems and an expert consultation on agricultural research will be organized for
the sub-region. Cooperative arrangements exist with CGIAR centres, especially IRRI,
ICRISAT and CIMMYT, as well as with other institutions in the region. Conservation of
biological diversity will be further promoted. With regard to renewable and new sources
of energy, appropriate forest species for fuelwood will be identified and successful
experiences in sustainable rural energy systems further documented. The six-monthly
bulletin on Rural Energy will be issued.

Europe: The substantial reduction in the allocation reflects gradual phasing out of the
activities of the Cooperative Networks on Rural Energy (CNRE). However, some energy
issues connected with production practices, mainly on biomass and solar energy, will be
dealt with under other programmes. In this way, five of the present seven networks will
terminate their activities. The other two will be integrated into one network and will
continue to function in the 1990-91 biennium, with a reduced number of formal meetings.

Latin America: A reference framework for agricultural research will be developed in
cooperation with the different institutions working in this field. Interdisciplinary agricultural
research will be promoted, as well as the application of remote sensing techniques to
agriculture, natural resources management and ecological impact. Training and TCDC
activities on the above subjects are planned.

The Technical Cooperation Network on Alternative Sources of Energy for Rural Development
will continue to be the main mechanism for promotion of an integrated approach based on
the utilization of such alternative sources as biogas, eolic and solar energy, especially by
small farmers and rural communities. This will also involve training, TCDC activities and
dissemination 'of experiences and appropriate technologies.

Near East: Support and technical advice will continue to be given to the Association of
Agricultural Research Institutions (AARINENA) in the region. The Third General
Conference of this Association will be organized in 1991. Regional and national AGRIS
and CARIS activities will be further promoted and training of regional centres' users will
be organized. The Third Technical Consultation of Arab AGRIS and CARIS Centres is
planned in 1990-91.

- 65 -

Programme 2.1.5: Rural Development

Rural development, as an essential component of balanced socio-economic development,
Pemaihs a primary concern for the majority of member countries. FAO's related
programme aims at supporting a wide spectrum of national actions: upgrading and
mobilization of human resources; institutional improvements; equitable access to natural
resources and other factors of production; provision of services indispensable to the develop-
ment of rural areas such as marketing and credit; etc..

Provisions (in US$ '000) for individual sub-programmes are shown in the following table:

1988-89 Programme 1990-91
Sub-Programmes Budget Change Budget

2.1.5.1.1 Agricultural Education, Extension 3 163 10 3 173
and Training
2.1.5.1.2 Development Support Communications 2 274 (309) 1 965
2.1.5.2 Agrarian Reform and Land 2 559 39 2 598
Settlement
2.1.5.3 Rural Institutions and Employment 3 858 52 3 910
2.1.5.4 Women in Agricultural Production 2 510 93 2 603
and Rural Development
211.5.5 Marketing 1 343 (100) 1 243
2.1.5.6 Credit 1 315 100 1 415
2.1.5.7 Regional Offices 6 039 32 6 071
2.1.5.8 Field Programme Support 3 033 139 3 172
2.1.5.9 Programme Management 1 972 36 2 008
-----------------------------------------'---------------
TOTAL 28 066 92 28 158
J _---,,,_ _ __------------ - - - - - - - -

Responsibility for its execution is shared between the Human Resources, Institutions and
Agrarian Reform Division (ESH) for technical Sub-programmes 2.1.5.1.1, 2.1.5.2, 2.1.5.3,
2,1.5.4, the Information Division (GII) for Sub-programme 2.1.5.1.2 and the Agricultural
Services Division (AGS) for Sub-programmes 2.1.5.5 and 2.1.5.6. Sub-programme 2.1.5i7
comprises the activities implemented by the Regional Offices. The provisions for Stb-
programmes 2.1.5.8 and 2.1.5.9 are shared by ESH and AGS.

The programme spearheads broad-based activities to support the implementation of the
WCARRD Programme of Action. In some areas agricultural education and extension,
integration of women in the development process, people's participation, etc. the
programme should be seen as a catalyst in providing conceptual guidance and ensuring
coordination of multiple actions taking place under other programmes.

The proposed allocations to individual sub-programmes remain in aggregate at approximately
iie same level as in the current biennium. The apparent reduction regarding development
support communications corresponds to a more accurate distribution of staff costs within
the GII Division, which also implements Programme 5.1.1: Public Information. It is
necessary to establish on a formal basis the two posts (one P-4 and one G-6) which
constitute the World Food Day Secretariat, to replace temporary arrangements since the
FAO Conference established World Food Day in 1981.

- 66 -

Sub-programme 2.1.5.1.1: Agricultural Education. Extension and Training

Changes at programme element level:

1988-89 Programme 1990-91
Programme Elements Budget Change Budget

01 Special Programme in Support of Africa 510 (510) 0
02 Strategies and Policies for 0 489 489
Agricultural Education and Training
03 Agricultural Extension and Training 1 235 30 1 265
04 Education for Agricultural and Rural 534 65 599
Development
05 Training-Orientation, Monitoring and 258 0 258
Evaluation
06 FAO/Unesco/ILO Joint Action Programme 268 (60) 208
07 General Support and Direct Assistance 358 (4) 354
to Countries

TOTAL 3 163 10 3 173

A new programme element has been created to examine strategies and policies for
agricultural education and training. The outcome is to design effective actions and provide
the basis for practical advice to those member countries which still lack suitably trained
manpower for planning, programming and implementing agricultural and rural development
programmes. The corresponding resources stem from the special programme element for
Africa which has completed its analytic and catalytic tasks.

Improvements in the quality of agricultural education and training will continue to depend
largely on assistance in upgrading the performance of teachers, the modernization of
teaching facilities and materials and the reinforcement of practical training. Planned
activities include the formulation of specific extension training programmes for women
farmers and the production of materials for extension field staff dealing with organized
groups of rural women. The costs of joint publications with Unesco/ILO have been reduced.

Sub-programme 2.1.5.1.2: Development Support Communications

There are two major areas:

i) Strengthening national capacity to plan and implement communication programmes
in support of agricultural and rural development activities. In particular, a series
of training manuals and packages on different communication techniques and media
will be produced for use by national personnel.

ii) Advisory, training and production services on low-cost audiovisual media, including
video, for use in field training activities. In this connection, case studies will be
made of different communication approaches and media, based on field testing of
their impact, comparative costs and effectiveness, with a view to providing guidelines
for future activities.

The Regular Programme resources constitute core funding for a large field-oriented
programme.

- 67 -

Changes at programme element level:

1988-89 Programme 1990-91
Programme Elements Budget Change Budget

01 Development of Rural Communication 1 346 (159) 1 187
Programmes
02 Development of Audio-Visual Training 928 (150) 778
Methodologies and Materials

TOTAL 2 274 (309)* 1 965

* Shift to Programme 5.1.1.

Sub-programme 2.1.5.2: Agrarian Reform and Land Settlement

Changes at programme element level:

1988-89 Programme 1990-91
Programme Elements Budget Change Budget

01 Assistance in Analysis and Formulation 760 (172) 588
of National Policies and Programmes
02 Assistance in Agrarian Reform and 794 (202) 592
Production Structures
03 Support to TCDC through Regional Centres 62 50 112
04 Support to Countries in Monitoring 398 357 755
and Evaluation
05 Analysis and Dissemination of 348 (69) 279
Information
06 General Support, including Direct 197 75 272
Assistance to Countries

TOTAL 2 559 39 2 598

The sub-programme will focus on the collection and use of indicators for assessing progress
in agrarian reform and rural development with a view to their integration in WAICENT.
The sub-programme will also analyze and disseminate information on prevailing tendencies
in land tenure, and undertake training activities on institution-building and monitoring and
evaluation. The involvement of NGOs in the implementation of agrarian reform and the
special requirements of indigenous populations will receive attention.

A major activity will be the preparation and submission to the 1991 FAO Conference of
the Third Progress Report on the WCARRD Programme of Action. This report will provide
quantitative/qualitative data and information regarding activities implemented by Member
Governments themselves and UN Agencies in agrarian reform and rural development. The
guidelines on socio-economic indicators finalized in 1988-89 will be used for the preparation
of this report; hence the strengthening of the programme element on monitoring and
evaluation. This will be made possible by non-recurring intergovernmental consultations,
the finalization of studies dealing with minifundia and landlessness and reductions in
publications costs.

68 -

The support to Regional Centres on Agrarian Reform and Rural Development takes account
of the expected start of the operation of the new centre for the Near East.

Sub-programme 2.1.5.3: Rural Institutions and Employment

The sub-programme covers work on: people's participation; the involvement of NGOs in
rural development; indicators for socio-economic policies; research and training related
to institution-building and to the provision of rural services and employment opportunities,

Changes at programme element level:

1988-89 Programme 1990-91
Programme Elements Budget Change Budget

01 Rural Development Strategies and 1 000 10 1 010
Rural Poverty
02 Rural Employment and Manpower Planning 482 14 496
03 People's Participation, Rural 1 330 (25) 1 305
Cooperatives and Non-Governmental
Organizations
04 Organization and Administration for 714 19 733
Rural Development
05 General Support and Direct 332 34 366
Assistance to Member Countries

TOTAL 3 858 52 3 910

The establishment and reinforcement of mechanisms for participation of different national
and community-based NGOs remains a major priority. This is based on the recognized
fact that NGOs encourage more equitable access to agricultural services by the ultimate
beneficiaries. The finalization of studies of management systems for agricultural
cooperatives in Asia, Africa and the Near East permits a small decrease in resources
under the related element.

Activities dealing with employment promotion, research on the impact of new technologies
on migration, employment and landlessness as well as with improved working and living
conditions of small farmers and rural workers, are being continued. The assessment of
the impact of macro-economic policies on the rural poor as well as the provision of direct
assistance to countries in designing rural development policies and programmes are also
included.

Sub-programme 2.1.5.4: Women in Agricultural Production and Rural
Development

Changes at programme element level are shown on the following page:

- 69 -

---------------------------------------------------------
1988-89 Programme 1990-91
Programme Elements Budget Change Budget
------------------------------------------------------------------------
01 Home Economics for Rural Development 528 (15) 513
02 Women in Food Production and Food 766 55 821
Security
03 Strengthening Policy, Planning and 569 0 569
National Machinery for Women in
Development
04 Population and Rural Development 24 31 55
05 Interdivisional Working Group on 168 11 179
Women in Development (IDWG/WID)
06 General Support and Direct 455 11 466
Assistance to Member Countries
------------------------------------------------------------------------
TOTAL 2 510 93 2 603
--------------------------------------------------------------------------

One of the main orientations of this sub-programme is to achieve greater recognition of
women's roles in agriculture. Therefore, special attention is given to training FAO staff
and government officials on how to integrate women's concerns into development
programmes. The sub-programme also promotes technology transfer for particular farming
situations and assists in the design of curricula in home economics. All these priorities
are in line with Resolutions 3 and 4 of the Twenty-fourth Session of the FAO Conferencei

In response to the resolution by the Ninety-fourth Session of the FAO Council in respect
of the implementation of the Plan of Action for Integration of Women in Development, the
sub-programme will reinforce ongoing activities for integrating gender issues into technical
aspects of agricultural and rural development as well as into farming systems, research
and extension approaches.

Coordination within FAO will be continued through the Inter-departmental Working Group
on Women in Development and core groups and focal points in the technical units.

The intensification of activities related to women in development and the particular
emphasis on training, require a new P-4 post to be established under this sub-programme,
This will be counterbalanced by the abolishment of a General Service post and other small
budgetary adjustments. Attention to population issues is also being reinforced.

Sub-programme 2.1.5.5: Marketing

A shift of US$ 100 000 has been made to Sub-programme 2.1.5.6: Credit. Some
reduction has been made under "Small Farmer Marketing Development", which will continue
to focus on the improvement of marketing services to small farmers through improved
extension services and the promotion of group marketing. Many countries, especially in
Africa, are reviewing their food marketing policies and plans, as a result of budget
problems occasioned by the subsidization of food marketing agencies and food subsidies.
Liberalization of agricultural marketing and the promotion of private trade are basic factors
in structural adjustment programmes being pursued by many countries. Those countries
look to FAO for advice.

Assistance to realign the operations of marketing agencies to changing policy and external
conditions is also extensively required.

- 70 -

Changes at programme element level:

--------------------------------------------------------------------------
1988-89 Programme 1990-91
Programme Elements Budget Change Budget
--------------------------------------------------------------------------
01 Small Farmer Marketing Development 350 (49) 301
02 Food Marketing Policies and Planning 384 25 409
03 Strengthening Management Efficiency 353 13 366
of Government Marketing Boards
04 Inputs Marketing Improvement Programme 256 (89) 167
--------------------------------------------------------------------------
TOTAL 1 343 (100) 1 243
--------------------------------------------------------------------------

Sub-programme 2.1.5.6: Credit

The former element "Monitoring and Evaluation" will be broadened and is renamed
"Agricultural Banking Role and Operations". The widened scope is to reorient traditional
agricultural lending institutions to function as banks, enabling them to provide their rural
customers with a wider range of services.

The programme element "Rural Finance Policies and Structures" covers the policy aspects
and structural arrangements in rural finance for improved services to rural people and the
mobilization of local financial resources.

Technical cooperation on TCDC principles is carried out through the Regional Agricultural
Credit Associations (RACAS), within the Scheme for Agricultural Credit Development
(SACRED), and in collaboration with other development agencies.

Under "Risk Management", various aspects of agricultural insurance will be covered through
direct assistance to member countries and provision of guidelines and advice. As a follow-
up to the related Expert Consultation, organized in 1989, it is proposed to mount a number
of missions to assist Member Governments on the opportunity and feasibility of introducing
agricultural insurance schemes.

Changes at programme element level:

---------------------------------------------------------
1988-89 Programme 1990-91
Programme Elements Budget Change Budget
---------------------------------------------------------
01 Rural Finance Policies and Structures 434 (58) 376
02 SACRED and Support to Agricultural 350 122 472
Credit Associations
03 Agricultural Banking Role and 321 13 334
Operations
04 Risk Management 210 23 233
TOTAL 1 315 100 1 415
TOTAL 1 315 100 1 415
--------------------------------------------------------------------------

- 71 -

Sub-programme 2.1.5.7: Regional Offices

Africa: The emerging Technical Cooperation Network on Agricultural Project Management
(AGPROMAN) is expected to enhance national capacities to deal with increasingly-complex
rural development issues and programmes. RAFR and JAFR will continue to analyze and
monitor the dynamics of rural poverty in Africa in relation to various economic, social,
institutional and technical factors. Significant results will be published for the benefit of
macro and sectoral policy-makers and rural programme managers. Governmental
agricultural institutions will receive a range of support services including training for
extensionists, dissemination of educational materials and visual aid packages. Upon request,
RAFR will undertake reviews of and suggest adjustments to food marketing systems,
especially for roots and tubers, plantains, maize and sorghum. National and sub-regional
training workshops will be organized on group marketing development for small farmers,
especially cereal banks. The allocation under this programme has been increased.

Asia and the Pacific: An Intergovernmental Consultation on WCARRD Follow-up in Asia
and the Pacific will consider recommendations included in the last progress report on the
implementation of the Programme of Action. Support to small farmer development
programmes, with special focus on access to critical inputs, will be continued. Case studies
on successful experiences in rural development and people's participation are to be'
published. Other activities include regional consultations and workshops on enhancing
women's role in agriculture and the rural economy; role of cooperatives in promoting
agricultural production; policies and programmes relating to agricultural credit and banking;
management and supervision of agricultural extension, as well as a review of progress
achieved by national agricultural universities in the design and operation of development
communication systems.

Europe: The present allocation is being increased to permit the establishment of regional
working groups on extension, training, rural institutions and employment with particular
emphasis on rural women and youth, which will explore new issues of regional significance
and ways to increase inter-country cooperation. JEUR's activities will continue to focus
on problems connected with agrarian structures and marketing.

Latin America: Work on agricultural education and extension will include exchange of
experiences on the subject as well as assistance in the reorientation of curricula. RLAC
will also consolidate its Distance Training and Orientation Programme.

Selective studies will address the dynamics of rural poverty, through the analysis of the
impact of technologies, cultural and social factors, the situation of landless peasants,
dependency and survival strategies among minifundia, etc.. The elaboration of effective
development strategies for small peasants will include methods to identify profitable
products, appropriate technologies, practical farm management techniques, and processing
and marketing for domestic and potential export markets.

The design and effective operation of income-generating projects and small enterprises for
peasant women will be promoted through training, publications and case studies. The role
of legislation and juridical systems in facilitating greater participation of women in
development will be analyzed through studies, TCDC activities and publications.

Under marketing and credit, the areas requiring most support are the Andean, Central
American and semi-arid areas of the region, especially for improving rural financial services
and small farmers' access to them. Training and technical exchange activities on price
formulation and marketing policies, on problems related to operation of food markets and
organization and operation of marketing associative structures, will be implemented. The
above range of activities will require a reduced allocation from the 1988-89 level.

- 72 -

Near East: In the area of agricultural education and training, a programme will be
launched in collaboration with the UN Agencies and other international organizations to
give more prominence to problems related to rural poverty in universities and schools.
Assistance to Member Governments in the region will continue to be provided in developing
cpmmunication/audio visual materials and methodologies through workshops and training of
local staff and extension workers.

Under agrarian reform, the changes in agricultural production structures, including the
fragmentation of rural holdings, will be analyzed. Assistance will be provided to the
Regional Centre for Agricultural Reform and Rural Development for the Near East
(CARDNE) when it starts operating. The problems due to the migration of rural
population to urban centres and to other countries will be further studied. Policies,
strategies, programmes and projects aiming at integrating rural women at all levels of
the agricultural development process are also of relevance.

In the areas of marketing and credit systems, activities will be conducted, emphasizing
TCDC, primarily through the recently-established Association of Agricultural Food Marketing
in the Near East and North Africa (AFMANEAR) and the Near East and North Africa
Regional Agricultural Credit Association (NENARACA). JNEA's programme has been
reformulated and emphasis has been shifted from evaluation and monitoring of rural
development projects and programmes to food and agricultural marketing, rural credit,
credit institutions and agricultural extension.

Programme 2.1.6: Nutrition

provisions (in US$ '000) for individual sub-programmes are shown in the following table:

1988-89 Programme 1990-91
Sub-Programmes Budget Change Budget

2.1.6.1 Food and Nutrition Assessment 2 073 (208) 1 865
2.1.6.2 Nutrition Programmes 2 543 148 2 691.
2.1.6.3 Food Control and Consumer 1 516 168 1 684
Protection
2.1.6.4 Nutrition Policy at Country 1 640 403 2 043
Level
2.1.6.5 Joint FAO/WHO Food Standards 3 059 10 3 069
Programme (Codex Alimentarius)
2.1.6.7 Regional Offices 1 345 54 1 399
?.1.6.8 Field Programme Support 1 994 (420) 1 574
2.1.6.9 Programme Management 1 005 0 1 005

TOTAL 15 175 155 15 330

Improving nutritional status and food consumption in terms of both quantity and quality
continues to be a major challenge for many member countries. The Nutrition Programme
is designed to assist member countries in assessing their food needs, formulating cost-
effective nutrition policies and programmes, and protecting consumers' nutrition and health.
Significant progress requires national action on a broad front: food and nutrition
assessment and surveillance, nutrition intervention programmes, consumer education, national
nutrition policy formulation and evaluation, and food quality control and consumer
protection.

- 73 -

Responsibility for the implementation of Programme 2.1.6 rests exclusively with the Food
Policy and Nutrition Division (ESN) and the Regional Offices/Joint Divisions. For the sake
of enhanced clarity, it is proposed to establish a new Sub-programme 2.1.6.5 relating to
the Joint FAO/WHO Food Standards Programme (Codex Alimentarius), which was
previously included under Sub-programme 2.1.6.3: Food Quality and Standards. The
newly entitled Sub-programme 2.1.6.3: Food Control and Consumer Protection will
encompass remaining activities with strong relations with the Field Programme.

The proposed distribution of resources among established sub-programmes shows a
significant increase under Sub-programme 2.1.6.4: Nutrition Policy at Country Level which
is partially compensated by a decrease under Sub-programme 2.1.6.1: Food and Nutrition
Assessment. It is a direct response to an anticipated large number of requests for
assistance.

Another notable shift of resources, mainly representing staff time, is made from Sub-
programme 2.1.6.8: Field Programme Support to the technical Sub-programmes 2.1.6.2,
2.1.6.3 and 2.1.6.4 to place adequate emphasis on the development of new concepts and
methodologies.

Thus, the programme covers in particular:

access to minimum food baskets through integrated nutrition interventions, food aid
and feeding programmes, and promotion of traditional food crops (Sub-programme
2.1.6.2);

strengthening of national food control and consumer protection systems to check food
contamination, and training of local staff in food control management, inspection and
analysis (Sub-programme 2.1.6.3);

design and implementation of national nutrition policies within the context of food
security strategies and structural adjustment policies (Sub-programme 2.1.6.4);

food standards as a means of resolving problems in technical barriers to trade (Sub,
programme 2.1.6.5).

Sub-programme 2.1.6.1: Food and Nutrition Assessment

The focus of this sub-programme is on quality of data at both country and global level,
a prerequisite for the activities under Sub-programme 2.1.6.4.

The reduction under the element "Assessment of Food and Nutrition Situation" is due to
the completion of several specific data-gathering activities and the partial substitution of
RP allocations in support to national surveys by extra-budgetary resources. Meetings and
manuals represent non-recurring activities under the element "Energy and Nutrient
Requirements", the completion of which permits new priority activities to be addressed,
such as a joint FAO/WHO/IAEA expert consultation on trace elements.

The emphasis is on supporting national and sub-national food and nutrition surveillance
systems. In Africa in particular, those systems are components of FAO-assisted early
warning and food information systems, and form part of FAO's contribution to the
Information on Nutrition and Food Surveillance (INFS) programme, jointly implemented
with other UN organizations. Nutrition Country Profiles will require regular updating,
and will be incorporated into the FAO Corporate Data Base, WAICENT. Preparatory

- 74 -

work for the Sixth World Food Survey will be made in collaboration with the other UN
agencies and institutions concerned.

Changes at programme element level:

1988-89

Programme

1990-91

Programme Elements Budget Change Budget

01 Assessment of Food and Nutrition 1 212 (467) 745
Situation
02 Energy and Nutrient Requirements 270 0 270
03 Food and Nutrition Surveillance 591 259 850

TOTAL 2 073 (208) 1 865

Sub-programme 2.1.6.2: Nutrition Programmes

Changes at programme element level:

1988-89 Programme 1990-91
Programme Elements Budget Change Budget

01 Integrated Nutrition Programmes in
Rural and Urban Areas
02 Promotion of Local Nutritious Foods and
Prevention of Specific Deficiencies
03 Nutrition Support to Food Aid and
Emergency Programmes
04 Formal Nutrition Training in
Universities and Agricultural Colleges
05 Consumer Orientation, Nutrition
Education and Training
06 Food and Nutrition Periodical
07 Contribution to the ACC Sub-Committee
on Nutrition

456 166 622

60

127

(385)

193

(4)
(9)

665

296
141

TOTAL 2 543 148 2 691

In order to permit better attention to priority areas, the former element dealing with
"formal nutrition training in universities and agricultural colleges" is proposed to be merged
with another element covering "nonformal nutrition education and communication". The
resulting new programme element is entitled "Consumer Orientation, Nutrition Education
and Training". In addition, a shift from Sub-programme 2.1.6.8 is made.

Participatory nutrition programmes at community level will be encouraged, i.e. involving
active people participation and resulting in intervention packages to improve the family
food basket.

Promotional activities will continue to increase consumption of locally produced foods,
including those rich in Vitamin A. The element "Consumer Orientation, Nutrition Education
and Training" will focus on practical aspects of balancing the diet. Mass media and other

- 75 -

channels of communication will be mobilized. The Food and Nutrition Review will be
resumed as a non-priced publication.

Technical advice to national personnel dealing with nutrition issues in disaster-prone areas
will be intensified, with emphasis on rehabilitation and the more efficient use of food aid.

Sub-programme 2.1.6.3: Food Control and Consumer Protection

Changes at programme element level:

------------------------------------------------------------------------
1988-89 Programme 1990-91
Programme Elements Budget Change Budget
---------------------------------nin-- National Food Control 443 47 490
0l Strenothenina National Food Control 443 47 490

and Consumer Protection Systems
02 Training in Food Control,
Management, Inspection and Analysis
03 Joint FAO/WHO Expert Committee on
Food Additives and Contaminants
04 Food Contamination Surveillance and
Control, including JointFAO/WHO
Monitoring Activities
05 Improving Food Protection at Rural
and Urban Levels

122

(10)

9

0

388

167

494

145

TOTAL 1 516 168 1 684
--------------------------------------------------------------------------

This sub-programme covers food quality and safety and related consumer protection.
Resources proposed for the sub-programme have been increased through a shift from Sub-
programme 2.1.6.8. A slight decrease for the Joint FAO/WHO Expert Committee on
Food Additives reflects a reduction in the number of meetings from three to two per
biennium.

The sub-programme will continue to address the vast requirements for assistance in
member countries in strengthening food control infrastructure and related training,
evaluation and control of food additives, veterinary drug and pesticide residues, radionuclides
and other contaminants in foods. Particular emphasis will be given to assisting member
countries in establishing food import/export quality control programmes, and to food quality
and safety problems related to "street" foods.

Sub-programme 2.1.6.4: Nutrition Policy at the Country Level

It is proposed to increase significantly FAO's support to the formulation and development
of national food and nutrition policies, for which requests for assistance are multiplying.
Special emphasis will be on African countries undergoing structural adjustment processes.
A simultaneous expansion of training activities is foreseen, including the establishment of
sub-regional centres for nutrition policy analysis and formulation in anglophone and
francophone Africa.

Other specific activities include the adaptation to different regional situations of the training
package developed earlier for agricultural planners: "Nutrition in development projects",

76 -

and the continuation of analytical studies on the policy implications of changes in urban
and rural food consumption patterns.

Changes at programme element level:

----------------------------------------------------------------------
1988-89 Programme 1990-91
Programme Elements Budget Change Budget
--------------------------------------------------------------------------
01 Development of National Food and 685 540 1 225
Nutrition Policies
02 Nutrition in Development Projects 427 (27) 400
03 Changes in Food Consumption in 528 (110) 418
Relation to Urban and Rural Development
------- -----------------------------------------------------------------
TOTAL 1 640 403 2 043
--------------------------------------------------------------------------

Sub-programme 2.1.6.5: Joint FAO/WHO Food Standards Programme
(Codex Alimentarius)

Changes at programme element level:

------ -------------------------------------------------------------------
1988-89 Programme 1990-91
Programme Elements Budget Change Budget
-----------------------------------------------------------------
01 Policies and Procedures for Adoption 506 0 506
and Acceptance of Codex Standards
02 Elaboration of Codex Standards for 540 0 540
Specific Commodities
03 Elaboration of Codex Standards and 963 (42) 921
Guidelines for General Application
04 Coordination of Standardization 523 26 549
Activities at Global and Regional Levels
05 Publication and Application of Codex 527 26 553
Standards and Recommendations
----------------------------------------------------------------------
TOTAL 3 059 10 3 069
--------------------------------------------------------------------------

Renewed support was expressed for the joint FAO/WHO food standards activities, through
the Codex Alimentarius Commission, by COAG, the Council and Conference as well as
WHO's own governing bodies. The well-established range of activities under this
programme will therefore need to continue. Internal shifts in resources are proposed to
be directed towards strengthening cooperation with GATT and other concerned agencies and
to the development of an improved information system on Codex recommendations and the
notification of their acceptance by governments. The incorporation of the latter into
WAICENT will be considered.

- 77 -

Sub-programme 2.1.6.7: Regional Offices

Africa: RAFR will organize several in-service training courses for food and nutrition
planners and promote improved nutrition and food science training in national institutions
and universities. Technical backstopping in the development of food standards and food
quality control infrastructures is an ongoing activity. Technical cooperation networks on
food standards and food quality control will be established. Effective collaboration will be
maintained with WHO and UNICEF under the Inter-agency Food and Nutrition Surveillance
Programme (IFNS) for the collection of food and nutrition data. The Joint FAO/WHO/OAU
Regional Food and Nutrition Commission for Africa will continue to provide a framework
for cooperation among the three agencies and other international organizations in the
dissemination of information on food and nutrition.

Asia and the Pacific: The Asian Network on Food and Nutrition will contribute to
assisting developing countries in the region in reorienting their food production plans and
policies towards nutritional adequacy. A package of nutrition indicators, developed by the
Regional Office will help in the identification of geographical areas and communities at risk
in selected countries. The work initiated in the present biennium in modernizing street
food distribution systems will be carried forward. RAPA will complete a study entitled
"Towards Nutritional Adequacy in the Asia-Pacific Region" with a view to assessing
comparative progress from the point of view of nutrition throughout the region and
sensitizing Member Nations about inadequacies.

Europe: JEUR's activities on commercial quality standards for international trade in
agricultural products are expected to continue.

Latin America: RLAC will continue to support the development of food and nutrition
surveillance systems through training and technical exchange. The office will pursue the
analysis of problems stemming from urbanization and their impact on food and nutrition
and related workshops and exchange activities are planned. Consumption of local crops
will be promoted considering different phytogenetic, production, processing and marketing
aspects. Food quality control and consumer protection will also require attention.

Near East: Assistance will continue to be given to national food and nutrition institutions
in the region for nutrition surveillance, food control, and in the formulation, execution and
evaluation of appropriate policies and programmes to address existing nutritional problems.
Inter-country training activities, seminars and technical consultations are planned based on
TCDC principles. Particular attention will be given to the development of export quality
control systems in countries with food export potentials, and to food science to improve the
nutritional quality and preservation techniques of traditional foods.

Programme 2.1.7: Food and Agricultural Information and Analysis

This programme is at the core of FAO's analytical work. It comprises: compilation,
processing, analysis and dissemination of a wide range of agricultural statistics; reviews
of the state of and changes in the world food and agricultural situation; analysis of the
international commodity trade situation, prospects and issues; the Global Food Information
and Early Warning System; and assistance to countries in strengthening national
statistical, food information and early warning systems.

Responsibility for implementation rests with the Statistics Division (ESS) for Sub-
programmes 2.1.7.1, 2.1.7.4 and 2.1.7.8. The Commodities and Trade Division (ESC)
manages 2.1.7.3 and shares the provision for 2.1.7.2 with the Policy Analysis Division

- 78 -

(ESP). Sub-programme 2.1.7.7 covers the activities of Regional Offices and Joint Divisions
under the programme. The provision for 2.1.7.9 is shared among ESS, ESC and ESP.

A major new thrust will be to harmonize data and other information bases, including data
components of other programmes, into a World Agricultural Information Centre (WAICENT).
This will involve advanced data base management systems and improved analytical and
communications systems. The ultimate objective is to enhance the usefulness to the
international community of the wide range of FAO information services on food and
agriculture. This is truly an in-house undertaking since all FAO technical units are
concerned to some extent. Overall supervision and coordination rests with the ESS
Division.

Other highlights are: the 1990 round of the World Census of Agriculture; analysis of
the impact of macro-economic and sectoral policy changes on the near-term outlook for
the food and agricultural sector, based on national indicators of economic and social
progress and drawing upon analyses performed by other institutions; the change in format
and style of the annual State of Food and Agriculture (SOFA) following the decision taken
during the 1988-89 biennium to merge the former World Food Report into SOFA.

The provisions (in US$ '000) for individual sub-programmes are shown in the following
table:

1988-89 Programme 1990-91
Sub-Programmes Budget Change Budget

2.1.7.1 Statistical Processing and 9 503 159 9 662
Analysis
2.1.7.2 Situation and Outlook 4 454 131 4 585
2.1.7.3 Food Information and Early 4 361 20 4 381
Warning System
2.1.7.4 Statistical Development 3 382 (273) 3 109
2.1.7.7 Regional Offices 1 658 337 1 995
2.1.7.8 Field Programme Support 532 313 845
2.1.7.9 Programme Management 1 920 (125) 1 795

TOTAL 25 810 562 26 372

Sub-programme 2.1.7.1: Statistical Processing and Analysis

The sub-programme comprises the continuous compilation, processing, storing and analyzing
of statistics on food and agriculture, as well as disseminating data to users both inside and
outside the Organization.

The two proposed new programme elements cover the rationalization of information systems
within the Organization (the WAICENT project) and the preparatory work on the Sixth
World Food Survey.

The initial allocation of US$ 596 000 for the development of the World Agricultural
Information Centre (WAICENT) comes partly from an additional provision of US$ 159 000
and partly from shifts of resources from other programme elements, notably through
redeployment of computer services and from non-recurring technical manuals.

- 79 -

Changes at programme element level:

--------------------------------------------------------------------------
1988-89 Programme 1990-91
Programme Elements Budget Change Budget
--------------------------------------------------------------------------
01 Production Statistics 811 (136) 675
02 Trade Statistics 607 149 756
03 Country Data Processing and Food 2 305 (53) 2 252
Balance Sheets
04 ICS and Other Working Systems 1 105 (61) 1 044
05 User Services (AGROSTAT) 816 (137) 679
06 Development of the World Agricultural 0 596 596
Information Centre (WAICENT)
07 Economic Statistics 818 (59) 759
08 Agricultural Land and Requisites 844 (151) 693
09 Prices and Index Numbers 950 (242) 708
10 Consumption and Demographic Statistics 1 247 (487) 760
11 Sixth World Food Survey 0 740 740
---------------------------------------------------------
TOTAL 9 503 159 9 662
------------------------------------------'--------'------

The preparations for the Sixth World Food Survey require a provision of US$ 740 000
which can be offset by reduced publication activities and completion of specific activities,
such as research on assessing costs of production surveys, surveys of marketing costs and
margins and international comparison of purchasing power parities.

Increased work on trade statistics includes the development of a computerized system of
trade matrices, i.e. data on exports by destination and imports by origin in order to
provide essential background information for trade negotiations and other analytical studies.

Sub-programme 2.1.7.2: Situation and Outlook

Annual reports on the state of food and agriculture will continue to be prepared for Council
and Conference, the World Food Council and the public, following the revised schedule,
format and style adopted in 1989, whereby the former World Food Report is being merged
into the State of Food and Agriculture (SOFA). SOFA will continue to contain a chapter
on a topic(s) of special interest, and specific information on the state of food and
agriculture will continue to be provided upon request. The annual publication of Country
Tables will also be continued. The increase under the related programme element reflects
a shift from Sub-programme 2.1.7.9: Programme Management and the assignment to the
SOFA Group of the responsibility for assessment of the situation and outlook at the
regional level.

It will be important to monitor food and agriculture developments within a macro-economic
framework at the regional and world levels. A major dimension is the impact of changes
in macro-economic, food and agricultural policies, including those associated with economic
(structural) adjustment measures, on the performance of the sector and the welfare of
those depending upon the sector for income o goods.

The ESP Division will continue to provide technical support to the Joint Agricultural
Divisions with the UN Regional Economic Commissions and to FAO Regional Offices in

- 80 -

relation to their work in economic analysis, planning assistance and related training. It
will also pursue the collection of information on changes in national plans, policies and
programmes, to facilitate preparation of country briefs and assessments of the economic
aspects of the agricultural development process in developing countries.

The annual Commodity Review and Outlook will continue to provide objective assessments
of agricultural commodity and trade developments, primarily for the benefit of countries
which do not possess national commodity intelligence services. The commodity monitoring
functions under this sub-programme include information collection, analysis and dissemination
services, for some 80 agricultural commodities.

The integration of the computerized commodity information systems of the ESC Division
into WAICENT will be effected Further analysis of non-traditional agricultural products
which are becoming increasingly important in international trade, will be carried out with
the aim of enhancing the export earnings of developing countries.

Changes at programme element level:

1988-89 Programme 1990-91
Programme Elements Budget Change Budget

01 State of Food and Agriculture Global 1 063 329 1 392
and Special Topics
02 Food and Agriculture National and 1 263 (201) 1 062
Regional Levels
03 FAO Commodity Review and Outlook 762 (61) 701
04 Monitoring World Commodity and Trade 1 366 64 1 430
Developments and Export Earnings

TOTAL 4 454 131 4 585
--------------------------------------------------------

Sub-programme 2.1.7.3: Food Information and Early Warning System

Changes at programme element level:

------------------------------------------------------------
1988-89 Programme 1990-91
Programme Elements Budget Change Budget
---------------------------------------------------------------------
01 Monitoring World Food Outlook 2 002 123 2 125
02 Early Warning of Food Shortages 2 359 (103) 2 256
--------------------------------------------------------------------
TOTAL 4 361 20 4 381
-------------------------------------------------------------------

The Global Information and Early Warning System (GIEWS) retains high priority. It will
continue to monitor crop and food supply prospects at national, regional and global levels
and to provide timely alerts to governments and the international community of impending
food supply difficulties. Further support will be provided for the establishment and
strengthening of national early warning and food information systems in vulnerable
developing countries.

81 -

The new thrust concerns the improvement of the flow of basic data from developing
countries and the use of modern technologies for their analysis and dissemination. The
monitoring of foods other than cereals, where they form an important part of the diet,
and of socio-economic indicators will be stepped up.

A realignment of Professional staff resources within the sub-programme needs to be effected
in order to strengthen global food outlook monitoring. Two workshops will be held one
in Asia and the other in Latin America to exchange experience in the functioning of
national early warning systems. An expert consultation is also planned to review the
progress made by the GIEWS and its possible future orientation. Provision has been made
for the incorporation of GIEWS computer applications in WAICENT.

Sub-programme 2.1.7.4: Statistical Development

Changes at programme element level;

--------------------------------------------------------------------------
1988-89 Programme 1990-91
Programme Elements Budget Change Budget
--------------------------------------------------------------------------
01 National Statistical Systems 1 399 (239) 1 160
02 Social Statistics and Socio-Economic 532 127 659
Indicators
03 Data Acquisitions 1 004 (120) 884
04 Statistical Statutory Bodies 447 (41) 406
----------------------------------------------------------------------
TOTAL 3 382 (273) 3 109
----------------------------------------------------------------------

The major activity relates to the improvement of national statistical systems and the
promotion of the 1990 World Census of Agriculture, through the preparation of
methodological publications on processing of census results and the training of national
staff in this respect. The overall reduction of US$ 273 000 reflects anticipated support
to the growing Field Programme. Assistance to member countries in developing their socio-
economic indicators for monitoring and evaluating progress in agrarian reform and rural
development will facilitate reporting to the FAO Conference in 1991.

Data acquisition on food and agricultural statistics will require less resources thanks to
increased computerization. FAO Statutory Bodies, such as the Statistical Advisory
Committee of Experts and the Regional and Study Groups on Food and Agricultural
Statistics are responsible for advising on statistical standards and methods and on priorities
to be followed in national and international programmes of food and agricultural statistics.

Sub-programme 2.1.7.7: Regional Offices

Africa: Promotion of the use of microcomputers for processing agricultural data will take
place, within the framework of overall support to the development of national capacities
for agricultural data collection and analysis, with emphasis on forecasting and early
warning systems. RAFR will also facilitate the participation of African countries in the
1990 World Census of Agriculture. Further work on the identification of socio-economic
indicators is planned.

Asia and the Pacific: RAPA will continue to provide technical support and secretariat
services to the Asia and Pacific Commission on Agricultural Statistics which will hold its

- 82 -

Thirteenth Session in 1990. This session will review progress achieved since its last
meeting in 1988 and consider, inter alia, documentation of country experience on costs of
production of agricultural commodities. Other activities will include: the development of
methodologies for assembling data in regard to small farmers' access to chemical fertilizers;
and the formulation of guidelines for improvement of crop forecasting techniques, as an
input to early warning systems. This will involve close consultation with national statistical
organizations.

Europe: JEUR's statistical activities are of a continuing nature, leading to reports on
market developments and agricultural prices in the region.

Latin America: The Joint ECLAC/FAO Agriculture Division will prepare reports on the
short- and medium-term perspectives of regional agriculture, taking account of changes in
national economic and social programmes and policies and their repercussions on the food
and agricultural sector. Inputs will continue to be provided to the preparation of the State
of Food and Agriculture in Latin America and the Caribbean. A substantial increase is
made through shifts from other programmes.

Near East: RNEA activities related to the collection, review and analysis of food and
agricultural information at country and regional levels will continue. Statistical programmes
of interest to the region will include trade matrices, livestock statistics, etc.. Under this
programme, JNEA contributes to SOFA and publishes the annual bulletin "Agriculture and
Development".

Programme 2.1.8: Food and Agricultural Policy

Provisions (in US$ '000) for individual sub-programmes are shown in the following table:

1988-89 Programme 1990-91
Sub-Programmes Budget Change Budget

2.1.8.1 Global Perspective Studies 1 241 102 1 343
2.1.8.2 Agricultural Policy Analysis 2 617 (368) 2 249
2.1.8.3 Commodity Policies and Trade 7 746 42 7 788
2.1.8.4 World Food Security 4 315 (84) 4 231
2.1.8.5 Agricultural Planning Assistance 4 851 305 5 156
2.1.8.7 Regional Offices 5 626 (362) 5 264
2.1.8.8 Field Programme Support 1 106 32 1 138
2.1.8.9 Programme Management 1 880 20 1 900
---------------------------------------------------
TOTAL 29 382 (313) 29 069
------------------------------------------------------

This programme contributes to essential priority aims of FAO in the area of food and
agriculture policy, at national, regional and global levels. The main aspects addressed
include the improvement of world food security, the development of international commodity
and trade policies, support to ECDC, agricultural policy analysis and formulation, and
related planning assistance and training.

Responsibility for implementation rests with the Commodities and Trade Division (ESC)
for Sub-programmes 2.1.8.3 and 2.1.8.4. The Policy Analysis Division (ESP) manages

- 83 -

Sub-programmes 2.1.8.5 and 2.1.8.8 and shares responsibility for Sub-programme 2.1.8.2
with the Global Perspective Studies Unit in the Office of the Assistant Director-General
of the Economic and Social Policy Department (ESD). Sub-programme 2.1.8.1 is shared
between ESD and the Office of the Assistant Director-General, Agriculture Department
(AGD). Sub-programme 2.1.8.7 covers the activities of the Regional Offices and Joint
Divisions under the programme. The provisions for 2.1.8.9 are shared between ESC and
ESP.

The focus of work under the established technical sub-programmes remains basically
unchanged, to cover in particular:

selected analyses, e.g. sustainable development and agriculture, the role of
government in agricultural and rural development, resource flows to and from
agriculture and economic cooperation among developing countries (ECDC);

producer/consumer consultations in the Committee on Commodity Problems and its
network of intergovernmental groups, on agricultural commodity problems and
remedial action; support to other international organizations, particularly UNCTAD
and GATT; ECDC in agricultural trade; and advice to developing countries on
national commodity policies;

contribution to world food security, particularly through the expanded mandate of
the Food Security Assistance Scheme (FSAS); international awareness of policy
options to ensure food security, especially for low-income food-deficit countries and
promotion of international action, particularly through the Committee on World Food
Security;

agricultural planning assistance, covering policy formulation, sector and sub-sector
strategies and planning, decentralized planning and project identification, formulation,
monitoring and evaluation.

Sub-programme 2.1.8.1: Global Perspective Studies

Changes at programme element level:

1988-89 Programme 1990-91
Programme Elements Budget Change Budget

01 Agriculture: Toward 2000, International 594 463 1 057
Development Strategy and Policy and
Programme Formulation
02 Follow-up to the In-Depth Study on 647 (361) 286
African Agricultural and Food
Problems

TOTAL 1 241 102 1 343

A new edition of "Agriculture: Toward 2000" (AT 2000) is to be prepared for 1993.
This requires that preparatory work, already underway in 1989, be intensified in 1990-
91. The main areas to be covered are: environmental aspects and sustainability of
agricultural development; integration of China into the AT 2000 data base and projections
model; re-evaluation of the technological parameters underlying the analysis of production

- 84 -

by agro-ecological land class, country and crop; and improvement in the data and method
of analysis concerning animal feed in the cereals-oilseeds-livestock complex.

The sub-programme also covers requirements for FAO's participation in UN system-wide
work and contributions to the preparation of the International Development Strategy for
the Nineties. Policy work will include assistance to countries on technological choices.

Follow-up to the In-depth Study on African Agricultural and Food Problems will be largely
concerned with production input requirements and sustainable production systems.

Sub-programme 2.1.8.2: Agricultural Policy Analysis

Changes at programme element level:

----------------------------------------------------------------------
1988-89 Programme 1990-91
Programme Elements Budget Change Budget
--------------------------------------------------------------------------
01 Economic Cooperation Among Developing 203 (87) 116
Countries
02 Policies and Performance of the 1 646 (264) 1 382
Agriculture Sector
03 External Assistance for Agricultural 181 (74) 107
Development
04 Domestic Resources for Agricultural 587 57 644
Development
-----------------------------------------------------------------------
TOTAL 2 617 .(368) 2 249
--------------------------------------------------------------------------

Support to economic cooperation among developing countries (ECDC) will continue to be a
priority concern. Provision is made for, inter alia, collection of information on ECDC
activities, preparation of a biennial report on FAO's support to ECDC and participation
in international meetings on the topic. The reduced resources level is due to the non-
recurring expert consultation held in the current biennium.

The review of policies and performance of the agricultural sector includes the issuance of
the seventh report to the Conference on progress in International Agricultural Adjustment
(IAA). This will be the first full report to be produced under the new arrangement of
four-year (rather than biennial) periodicity, following the submission on an exceptional basis
of a partial report to the Twenty-fifth Session of the Conference.

Planned activities also include studies on the changing roles of government and private
entities in agricultural and rural development and on economic (structural) adjustment.
There is a marked reduction of resources in view of the completion of important regional
studies in 1988-89, concerning the Latin America and the Caribbean and European regions.
However, resources are earmarked for continuation of policy analysis work on developed
countries' agriculture as a follow-up to the European Study.

Analysis and reporting of data on external assistance for agricultural development will
continue and the results included in SOFA. The data bank on official financial flows and
technical assistance to developing countries from external sources is being transferred to
the Statistics Division which will maintain it and incorporate it into WAICENT.

85 -

Work on domestic resources for agricultural development, so far concentrated on flows for
agricultural development, will be shifted to assessing resource flows from agriculture, with
attention to agricultural taxation. In collaboration with the IMF, further improvements in
the data will be sought to ensure compatibility with the IMF framework for reporting
government statistics. Two publications are planned, one on domestic resources for
agriculture in developing countries and the other, following a meeting on the subject, on
agricultural taxation in developing countries.

Work on these two areas, hitherto shown under a single element, has been disaggregated
into two elements for enhanced clarity.

Sub-programme 2.1.8.3: Commodity Policies and Trade

The mainstay of this sub-programme remains the analytical and policy-oriented activities
carried out within the framework of intergovernmental commodity consultations. The
changes proposed for 1990-91 are limited to needed slight adjustments both in total and
between the four component programme elements.

While the number of intergovernmental meetings proposed is unchanged, some savings will
be possible through further streamlining of their organization, documentation and other
servicing costs. As in the past, a flexible approach will be taken to the convening of
commodity meetings depending on action in other fora and Member Governments' priorities.
Cooperation may be expected with the Common Fund for Commodities as it could become
operational in 1990-91. Substantive preparation for a new assessment of agricultural
commodity trade prospects over the medium term will take place in the 1990-91 biennium.

In order to promote ECDC in agricultural commodity trade, three regional meetings are
planned: two workshops on specific commodities, which offer scope for enhanced trade
between developing countries; and a regional outlook conference on agricultural commodities
of interest to the region concerned. Collaboration with other organizations will be primarily
concerned with support to UNCTAD in the revitalization of the Integrated Programme for
Commodities and to the Uruguay Round of GATT Multilateral Trade Negotiations. National
commodity policy work will aim at providing assistance to interested developing countries
in strengthening their capacity in commodity policy formulation. A new annual publication
is planned which will analyze major changes in national policies regarding main basic foods.

Changes at programme element level:

---------------------------------------------------------
1988-89 Programme 1990-91
Programme Elements Budget Change Budget
---------------------------------------------------------
01 Producer/Consumer Consultations and 4 222 (40) 4 182
Action under FAO Auspices
02 ECDC in Agricultural Commodity Trade 953 0 953
03 Collaboration with UNCTAD, GATT and 1 183 47 1 230
Other Organizations
04 National Commodity Policies, 1 388 35 1 423
including Incentive Policies

TOTAL 7 746 42 7 788

- 86 -

Sub-programme 2.1.8.4: World Food Security

The implementation of the expanded mandate of the Food Security Assistance Scheme
(FSAS) will cover the two elements of the broadened concept of food security and involve
assistance in the preparation and execution of comprehensive national food security
programmes upon request. The Regular Programme resources provide core funding for a
field-oriented programme of numerous food security projects being operated under the FSAS.

In view of the precarious situation arising from declines in world production of staple
foods in 1987 and 1988 and drawdown of global cereal stocks, it will be necessary to
closely monitor the global food security situation and measures taken to rebuild stocks to
adequate levels. In line with the recommendations of the Committee on World Food
Security, further reviews of national experiences with the implementation of comprehensive
food security policies and programmes will be prepared. The allocation covers the regular
annual publication "Food Aid in Figures" and analytical work on food aid policy issues as
they relate to food security.

Changes at programme element level:

1988-89 Programme 1990-91
Programme Elements Budget Change Budget

01 Food Security Assistance Scheme (FSAS) 1 643 204 1 847
02 International Food Security and Food 2 672 (288) 2 384
Aid Policy

TOTAL 4 315 (84) 4 231
-------------------------------"----~-----'-----'---------'

Sub-programme 2.1.8.5: Agricultural Planning Assistance

The sub-programme is based on two distinct but closely related complementary approaches:
(a) planning assistance; and (b) training. Each programme element below relies on a
suitable mixture of these two approaches.

Sector and sub-sector planning analysis makes extensive use of FAO's Computerized System
for Agricultural and Population Planning Assistance and Training (CAPPA), which has
demonstrated considerable potential for both planning and training purposes. Factors which
will receive increased emphasis are the integration of environmental considerations into the
planning process, the impact of macro-economic and sectoral policy changes linked to
structural adjustment, the role of private agents in sectoral development and the links
between agri-business and production.

Requests for assistance in decentralized planning and analysis will also be met. A training
handbook will be prepared and existing training material will continue to be adapted to
specific country situations. Sub-regional "training of trainers" will be given attention, so
as to disseminate knowledge and experience in decentralized planning to a larger number
of countries. This element also includes the preparation of training materials for
integration of energy concerns in decentralized agricultural and rural development planning.

In line with the wish of FAO Governing Bodies to see greater FAO involvement with
policy analysis, an additional US$ 473 000 is provided to the related element implemented
by the ESP Division. The objective will be to assist developing countries in policy review,
reformulation and implementation, by providing advice and by strengthening their capacity

	Front Cover
	Summary
	Table of Contents
	Director-General's introductio...
	Background
	Field programme
	Financial framework
	Programme framework
	Programme budget impact
	Cost increases
	Objects of expenditure
	Comparison
	Annex
	Introduction
	Chapter 1: General policy...
	Chapter 2: Technical and economic...
	Chapter 3: Development support...
	Chapter 4: Technical cooperation...
	Chapter 5: Support services
	Chapter 6: Common services
	Chapter 7: Contingencies
	Back Cover

MILLISECOND	CLASS.METHOD	MESSAGE
0	sobekcm_page_globals.constructor
0	sobekcm_page_globals.constructor	Application State validated or built
0	sobekcm_database.verify_item_lookup_object
0	sobekcm_page_globals.constructor	Navigation Object created from URI query string
0	sobekcm_database.verify_item_lookup_object
0	sobekcm_page_globals.display_item	Retrieving item or group information
0	sobekcm_page_globals.get_entire_collection_hierarchy	Retrieving hierarchy information
0	sobekcm_assistant.get_entire_collection_hierarchy
0	cached_data_manager.retrieve_item_aggregation
0	cached_data_manager.retrieve_item_aggregation	Found item aggregation on local cache
0	item_aggregation_builder.get_item_aggregation	Found 'all' item aggregation in cache
0	system.web.ui.page.page_load (ufdc.page_load)
0	sobekcm_page_globals.constructor.on_page_load
0	html_echo_mainwriter.add_style_references	Adding style references to HTML
0	html_echo_mainwriter.add_text_to_page	Reading the text from the file and echoing back to the output stream
41	html_echo_mainwriter.add_text_to_page	Finished reading and writing the file