Summary programme of work and budget

council

FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS ROME

E

Ninety-ninth Session
Rome, 10-21 June 1991

SUMMARY PROGRAMME
OF WORK AND BUDGET
1992-93

CL
CL 99/3
March 1991

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.

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SUMMARY PROGRAMME

OF WORK AND BUDGET

1992-93

MAIN FEATURES OF THE DIRECTOR-GENERAL'S PROPOSED
SUMMARY PROGRAMME OF WORK AND BUDGET 1992-93

Objective

Consensus approval of the Programme of Work and Budget 1992-93 at the Twenty-sixth
Session of the Conference in November 1991.

Approach

* Application of the Conference guidelines on priority setting, namely:

articulation and justification of the problem to be addressed by FAO;

evidence of FAO's comparative advantage in the problem/sector to which
priority is given;

benefit of the priority activity to a broad segment of FAO's membership;

compatibility of the priority activity with the recognized roles of FAO; and

complementarity with other priorities.

* programme proposals based on recommendations of the Conference, the Council, the
Regional Conferences, the Programme and Finance Committees, and all technical
intergovernmental bodies concerned.

Programme priorities and areas of increased resources

o environment and sustainable
development

o Technical Cooperation Programme

o agricultural data development

o International Conference on Nutrition

o women-in-development

o forestry

o policy advice

o decentralization

1992-93 Programme of Work and Budget
Distribution by Chapter before Cost increases
(Percentages will vary after application of cost Increases. Thus the
TCP percentage is expected to decline to approximately 11.7%)

Technical & Economic

Contingencies (0.1%)
Policy and Direction
common Services (2.7%)
Ipport Services (13.%)

Figure 1 Proposed Distribution by Chapter

TCP
(I2.e61%A1
(16.BS)
Development Support

Areas of reduced resources

o Regional Offices

o administrative and support services

o selected technical and economic programmes

Strengthening technical staff infrastructure

37 new Professional posts 21 abolished Professional posts.
Net decrease of 18 General Service posts.

Cost increases

Mandatory decisions regarding conditions of service of the staff and expected inflationary
developments require a provision of cost increases of US$ 87 million (15.3 percent of the
budget base). The estimates will be reviewed again during the formulation of the full
Programme of Work and Budget.

Conclusion

To permit Member Nations to arrive at consensus approval of the Programme of Work
and Budget 1992-93, there is no programme increase proposed. Despite this limitation,
FAO programmes are reviewed and revamped to respond to the highest priorities
determined by FAO Governing Bodies. This leads to a leaner Organization strengthened
for maximum programme impact. The provision for cost increases is presently the best
estimate, again to be reviewed.

(Real Costs at 1976-77 levels)
750
700- Cost Increases and
currency adjustments
so-- Programmelevel
500

450- 78-79 801 823 844 8-87 889 90-91 92-93
2 400-
350o
300
250 -
200-- -
150- -
100-
76-77 78-79 80-81 '82483 84-85 88-87 88-89 0-91 92-93
Binnkm (Proposed)

Figure 2 Evolution of FAO's Approved Budget in Programme and
Financial Terms

TABLE OF CONTENTS

DIRECTOR-GENERAL'S INTRODUCTION ............................ i

I. BACKGROUND ........................................... 1
Economic and Social Aspects 1
Agricultural Production, Forestry and Fisheries 1
Nutrition, Rural Development and Environmental
Aspects 2
Agricultural Trade 3

II. FIELD PROGRAMME ..................................... 5
Investment 5
Technical and Material Assistance 6
UNDP 7
Trust Funds 7
Support Costs 8
Food Aid 9

III. FINANCIAL FRAMEWORK ..................... .......... 11
Payment of Current Assessments 11
Payment of Arrears 11
Contributions Outlook 12
Miscellaneous Income 12
Working Capital Fund 12
Special Reserve Account 12

IV. PROGRAMME FRAMEWORK .................................. 15
Approach 15
Global Priorities and Areas of Increased Resources 15
Areas of Reduced Resources 19
Adjustments to the Outline Proposals 20
Changes in Resources 20

V. PROGRAMME BUDGET IMPACT ............................ 23

VI. COST INCREASES ........................................ 25
Introduction 25
Methodology 25
Biennialization and Inflation 25
Lapse Factor 26
Impact of Exchange Rates 27
Analysis of Cost Increases 28
Comparison 36

VII. POSTS AND OTHER MEANS OF ACTION ..................... 37

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

MAJOR PROGRAMME 1.1: GOVERNING BODIES
Programme 1.1.1: Conference and Council
Programme 1.1.2: Conference Services

MAJOR PROGRAMME 1.2: POLICY, DIRECTION AND
PLANNING

MAJOR PROGRAMME 1.3: LEGAL

MAJOR PROGRAMME 1.4: LIAISON

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

MAJOR PROGRAMME 2.1: AGRICULTURE

Programme 2.1.1:
Programme 2.1.2:
Programme 2.1.3:
Programme 2.1.4:
Programme 2.1.5:
Programme 2.1.6:
Programme 2.1.7:

Programme 2.1.8:
Programme 2.1.9:

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 Products
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

ANNEX ................................ a .a............

MAJOR PROGRAMME 3.2: INVESTMENT 109
Programme 3.2.1: FAO/World Bank Cooperative
Programme (CP) 110
Programme 3.2.2: Investment Support Programme (ISP) 110
Programme 3.2.9: Programme Management 110

MAJOR PROGRAMME 3.4: FAO REPRESENTATIVES 110

MAJOR PROGRAMME 3.9: PROGRAMME MANAGEMENT 111

CHAPTER 4: TECHNICAL COOPERATION PROGRAMME ............. 113
Main Features 113
Categories 114
Type of Assistance 114
Criteria 114
Appraisal and Monitoring 115
Use of the Biennial Appropriation 115
Proposals for 1992-93 116

CHAPTER 5: SUPPORT SERVICES ................................ 117

MAJOR PROGRAMME 5.1: INFORMATION AND
DOCUMENTATION 117
Programme 5.1.1: Public Information 117
Programme 5.1.2: Library 118
Programme 5.1.3: Publications 118

MAJOR PROGRAMME 5.2: ADMINISTRATION 119
Programme 5.2.1: Administrative Services 119
Programme 5.2.2: Financial Services 120
Programme 5.2.3: Computer Services 120
Programme 5.2.4: Personnel Services 121

MAJOR PROGRAMME 5.9: PROGRAMME MANAGEMENT 122

CHAPTER 6: COMMON SERVICES ............................... 123

CHAPTER 7: CONTINGENCIES ................. ............... 125

Provision for Regional Offices 1992-93 ................................ 126

DIRECTOR-GENERAL'S INTRODUCTION

I have the honour to submit to the Council for its consideration and recommendations
to the Conference, and for such guidance as it may wish to give me, the Summary
Programme of Work and Budget for 1992-93.

A context of international instability

My proposals are prepared in the sobriety which comes from a deep-rooted awareness
of the problems which are shaking the international community at the present time.
Large areas of the world are wracked by military, civil and human strife and destruction.
For a number of countries and peoples, development has become subordinated to mere
survival.

Even for those countries and peoples who are not directly involved in war and political
restructuring, economic conditions portend more serious difficulties. The problems of
external debt will be forcibly more acute as international resources for development are
sidetracked for military might. And the difficulties in successfully concluding the
Uruguay Round of the GATT trade negotiations presages a time of grave difficulties in
the economic sectors which are the concern of our Organization.

The calls on FAO

Adversity is the mother of courage and the will to overcome. It is therefore with a
revived sense of courageous determination for FAO action that I present this Summary
Programme of Work and Budget.

The political will to end the Cold War is a promise that the international community is
capable, when it so wishes, to act in concert on problems of international significance.
There is undeniable evidence of renewed hopes on the role of the United Nations family
and its capacity to address world problems. In this context, it is imperative that in the
face of continuing population growth and massive poverty, FAO not relent its efforts to
assist Member Nations in increasing food production, leading to improved nutrition and
lasting food security. The world also continues to look to FAO to quell agricultural
emergencies. This means a relentless fight as one emergency the screwworm fly -
appears to follow another the locust. FAO's basic mission has not changed. It is
called, however, to address an ever broader range of issues in an integrated manner.

The Council is aware from the debates of its last session in November 1990, of the
increasing demands placed on the Organization. The Council's own recommendations
and the requests from other important intergovernmental meetings, such as the FAO
Regional Conferences held last year, indicate a distinctive common thread: a unanimous
call for FAO to be a major protagonist inter alia in the sustainable development effort;
in the protection, management and productive utilization of animal and plant genetic
resources and, more generally, in the field of biodiversity; in policy analysis and advice
to Member Nations; and in the facilitation of a fair trading regime for food and
agricultural products all of which require a fitting response.

- ii -

The constructive directives of the Conference

While the preparation of any Programme of Work and Budget is a sensitive and difficult
process at any time, given limitless demands and limited resources, this Summary has
been prepared from the vantage point of several important and positive factors.

The outcome of the Review of Certain Aspects of FAO's Goals and Operations by the
last FAO Conference supported "the conclusion of the experts that the Organization
remains a solid and dynamic institution and their views on the continuing validity,
relevance and importance of the objectives, strategies, roles and activities of the
Organization in dealing with the problems of food and agriculture in the world as a
whole and in individual member countries." (Conference Resolution 10/89, preambular
paragraph 6.)

Never before have I been as constructively guided in the formulation of a Programme
of Work and Budget as I have been by the Conference outcome of the FAO Review.
The Conference not only endorsed but re-assessed the roles of FAO, the areas of FAO's
comparative advantage, the factors which should guide its relationship with other
organizations, and the manner in which the links between the Regular and Field
Programmes should be strengthened further.

The Conference identified clear priorities, namely FAO's increased involvement in
resources and the transfer of technology, biotechnology for the benefit of developing
countries, sustainable development and the protection of the environment, policy analysis
and advice, support for the promotion of international trade, enhancement of the role
of women in agricultural and rural development and economic and technical cooperation
among developing countries. This guidance, as well as the rich debate of the Council at
its Ninety-eighth Session in November, has served to formulate my proposals.

In the process of formulating these proposals, we have also applied the guidelines on
priority-setting endorsed by the Conference, namely:

articulation and justification of the problem to be addressed by FAO;

evidence of FAO's comparative advantage in the problem/sector to which
priority is given;

benefit of the priority activity to a broad segment of FAO's membership;

compatibility of the priority activity with the recognized roles of FAO; and

complementarity with other priorities.

Priorities higher and lower

The programme priorities and areas of increased resources which are proposed in the
Summary comprise environment and sustainable development, agricultural data
development, women in development, policy advice, the Technical Cooperation

- iii -

Programme, the International Conference on Nutrition, Forestry and Decentralization.
These priorities emerge clearly from all the recommendations of the Conference, the
Council, the Regional Conferences, the Programme and Finance Committees and all the
technical intergovernmental bodies whose views and recommendations are drawn upon
in formulating my proposals.

At the same time, in order to contain the request for resources, I am proposing areas of
substantially reduced resources, notably for the Regional Offices, for administrative and
support programmes and a range of technical and economic programmes to which, as a
deliberate sacrifice, a relatively lower priority has to be accorded.

Financial framework

The financial framework affecting the Summary Programme of Work and Budget relates
to three main areas.

Firstly, the financial management of FAO continues under the threat of the magnitude
of the arrears of some Member Nations and delays in payment of the current
assessments due. This financial uncertainty, over several biennia, has sapped the energy
and morale of the Secretariat at all levels and is still with us. However, this financial
uncertainty does not contradict the basic financial soundness of the Organization.
Expenditures are kept within authorized budget levels and liabilities are backed by the
legal obligations of our Member Nations.

A second area of concern is the prospect of a radically altered regime from the tripartite
system which has so far governed FAO's technical assistance activities, together with the
prospect of lower reimbursement for support costs from UNDP. I remain confident that
wisdom will prevail in preserving the interests of both recipients and donor countries in
shaping new arrangements. There are emerging and converging calls for preserving the
benefits of this tripartite relationship and avoiding a traumatic change-over period which,
I trust, will not go unheeded.

Nevertheless, the Council undoubtedly realizes that the issue is far from marginal to the
decision-making process of the Regular Budget, in view of the close inter-action between
the Regular and Field Programmes. For the time being, I see no alternative to assuming
a level of support costs income to be made available to FAO during 1992-93 roughly
comparable to that of the present biennium. I need to draw attention to the potentially
devastating consequences on the Regular Programme of any eventual drastic drop in
such income should the decisions of the UNDP Governing Council in June point to such
an outcome. I trust FAO Governing Bodies will see to it to protect FAO's capacity to
deliver its field programmes effectively through appropriate measures. For my part, I
have already taken steps to reduce established posts under support costs funding
whenever feasible.

Thirdly, the proposals in the'Summary include a provision for cost increases estimated
at US$ 87 million. In percentage terms this provision is comparable to the provision for
cost increases approved by the Conference for the Programme of Work and Budget
1990-91.

- iv -

As always, we emphasize that these estimates are prepared far ahead of the period to
which they apply, i.e. from one to three years. Cost increases are not of FAO's making.
We pursue a tradition of estimates for cost increases in past Programmes of Work and
Budget erring on the conservative side. These estimates are the result of intensive
analysis, item-by-item, of all the determining factors such as probable changes in salaries
in both Professional and General Service staff; likely increases in the cost of supplies
and services; and all other factors pertaining to the work of an organization like FAO
which operates on all continents with a broad variety of currencies and makes use of a
broad mix of means of action.

The estimates are explained, in more detail than ever before provided at the stage of the
Summary. They have been developed with the same methodology for calculation as used
in the past and approved by the Finance Committee, Council and Conference. Even at
this stage, however, the estimates are not final.

They will again be reviewed during the formulation of the full draft Programme of Work
and Budget and again be submitted for detailed examination by the Finance Committee
at its Seventy-second Session in September 1991.

A brake on programme growth

At the stage of the Outline Programme of Work and Budget 1992-93 which I submitted
to the Joint Meeting of the Programme and Finance Committees in January 1991, I had
proposed a real programme increase of US$ 2 250 000 0.34 percent of the recosted
budget base.

A few members of the Committees reiterated their government's support of a policy of
zero growth for organizations of the UN system. They underlined that present
circumstances of great restraint affecting national public budgets in most, if not all
Member Nations, called for similar restraint in international organizations. They stressed
that the pursuit of this policy should not be perceived as an intent to denigrate the value
of FAO's action, but would be consistent with budget decisions reached in other
governing bodies of the UN system.

A great majority of the members of the Committees emphasized the magnitude of
demands for FAO's assistance and services in all regions. FAO's programmes had to be
seen against a context of continuing demographic pressures in developing countries and
complex challenges affecting world food and agriculture development. They considered
that FAO should be given the necessary means to respond adequately and effectively to
these challenges. In their view, the application of a zero growth policy to FAO would,
in fact, mean regression and reduced capacity for the Organization to meet expressed
requirements in Member Nations. However, they were not insensitive to the need for
budgetary restraint, especially in view of the continuing difficulties experienced by many
Member Nations in meeting external obligations.

In the light of these views, and in order to permit the Committees to reach a consensus,
I indicated my readiness to formulate the Summary Programme of Work and Budget for
1992-93 on the basis of no real programme increase, while respecting the programme

priorities endorsed by the Committees. I have done so in the proposals submitted in this
document. Proposed allocations for key activities had to be cut and the extent of
sacrifice spread further.

The Committees agreed that this offer represented a genuine effort at compromise
between conflicting objectives of, on the one hand, the need for restraint in the request
for additional resources and, on the other, the need to meet urgent priorities for FAO's
action. They underlined the desirability of Member Nations joining in a consensus
leading to the approval of the Programme of Work and Budget for 1992-93 in order to
inject new vigour into the Organization and a new and constructive atmosphere from
which the Organization and its membership could only benefit. The hope was also
expressed that this renewed consensus on the budget would lead, through the timely
payment of contributions, to an end to the protracted financial difficulties experienced
by FAO in the recent past.

Accordingly, the Committees reached a consensus in recommending that I prepare the
Summary Programme of Work and Budget for 1992-93 on the basis of no real
programme increase, maintaining the current level of the budget in real terms and
containing cost increases to the maximum extent possible while providing for the
requirements for the implementation of the Programme of Work approved by the
Conference.

Conclusions

The search for a consensus approval of the Programme of Work and Budget 1992-93 is
the repeated declared aim of Member Nations. At the Ninety-eighth Session of the
Council, I had announced that my proposals for the Programme of Work and Budget
1992-93 would be "contained". I have observed this promised restraint in my proposals
and have further reduced the initial proposals that I submitted in the Outline to the
Programme and Finance Committees. The Council will have before it the views of the
Programme and Finance Committees from their sessions in January and in May 1991.
It will also have 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. I sincerely believe that the Council has every possibility to
unite in a consensus, as was achieved in the Programme and Finance Committees.

As always, I am open to the guidance of the Council for the preparation of my proposals
for the full Programme of Work and Budget. I venture to hope that Member Nations
will unite in a renewed commitment to their Organization and pursue the approval of
the Programme of Work and Budget 1992-93, by consensus, with the overriding aim of
sustaining and enhancing the Organization's capacity to serve its Member Nations.

EIdouard Saouma
Director-General

I. BACKGROUND

1. The Council reviewed the most recent developments affecting world food and
agriculture at its Ninety-eighth Session, in November 1990, particularly when discussing
the State of Food and Agriculture (SOFA). The main elements of the Council's
assessment are briefly recalled below, together with other aspects of the world situation
which have influenced the formulation of the Director-General's proposals.

Economic and Social Aspects

2. The Council noted with concern some features of the global economic
environment affecting agriculture and the rural sector, which recent events had made yet
more uncertain. On the one hand, the positive long-term process of increasing
interdependence and integration of nations has continued. On the other hand, the recent
speed of change involving radical political and economic transformations has ushered in
a period of potential instability in economic relations between countries. Furthermore,
recent events in the Near East Region have affected the prospects of oil-importing
countries and exacer^Iated economic difficulties in those countries dependent on
remittance transfers. Some of these developments undermine major efforts underway
in many countries to undertake policy reforms in agriculture and other sectors, often as
part of structural adjustment programmes.

3. The Council also expressed concern that the burden of external debt still
continues to constrain severely development prospects for many countries. It welcomed
initiatives aimed at reducing or managing debt for low-income countries, and the
rescheduling of debt benefiting lower- to middle-income debtor countries.

Agricultural Production, Forestry and Fisheries

4. World agricultural production increased by 2.4 percent in 1990. While less than
the large recovery of the previous year, this is significantly above the depressed growth
rates of the 1986-88 period. Such an increase, being based particularly on a record
harvest of cereals, permits cereal stocks to be rebuilt from their low levels of the
immediately preceding years. Nevertheless, the Council cautioned that the current food
security situation remains fragile, with several countries facing food supply emergencies,
especially in Africa. In this connection, an appeal was made to avoid the type of
problems encountered in previous crisis situations, by early recognition of the seriousness
of impending shortages by both donors and recipient countries so that action could be
taken as early as possible. The world food security situation, therefore, requires
continued vigilance. Any abrupt changes in international market prices could render the
situation yet more difficult for the already hard pressed oil-importing, food-deficit
countries. The food-importing industrialized countries also have an interest in
maintaining open and stable world markets for major food commodities.

Page 1

5. The Council underlined the regional disparities in food and agricultural situations
and overall development prospects, in the East and West, as well as the North and
South. In Africa and Latin America in particular, food production increases are expected
to fall below population growth rates in 1990, a disquieting feature in view of the
disappointing agricultural performances in these two regions in previous years and the
grave economic problems they face, which demand far-reaching structural adjustment
efforts. Food production increases are expected to exceed population growth in a
number of populous countries of Asia, a feature which has been matched, in some
countries of the region, by relatively rapid rates of economic growth, industrialization and
trade. In the Near East Region, a significant recovery is expected in 1990 in food and
agricultural production, which would largely offset the large shortfall of the previous
year. However, rates of overall economic growth are now in jeopardy, in view of events
in the region.

6. The Council underlined forestry's key role in environmental protection and in
providing sustainable livelihoods for rural people. The current rapid rate of loss of
tropical forests is particularly alarming. The destruction of tropical forests arises in part
from the need by land-deprived people to gain access to this resource for their survival,
but also from a lack of sufficient awareness on the part of policy makers of the value of
traditional forest products. Loss of forest resources is not limited to tropical ecosystems,
e.g. the significant losses sustained through forest fires, particularly in southern Europe.
The Council reiterated the importance of the Tropical Forestry Action Programme
(TFAP) as a unique framework for the conservation and sustainable use of tropical forest
resources and underlined the need for determined international action to reverse current
threats to world forests.

7. With regard to fisheries, the Council welcomed the increase in the global fish
catch in which developing countries have shared and which has been accompanied by a
continued rapid growth in fishery trade. However, most of the increase in the global
catch is in areas subject to considerable stock fluctuations and therefore could possibly
not be sustainable. Also per caput fish consumption in some developing countries is
declining at a time when their exports to developed country markets are expanding. The
possible conflicts between economic, ecological and social policies and objectives in the
fisheries sector need to be addressed by FAO.

Nutrition. Rural Development and Environmental Aspects

8. Despite the modest overall progress in world agricultural production, the Council
deplored the prevailing widespread incidence of chronic hunger and undernutrition which
affect an estimated 20 percent of the population of developing countries. The complexity
of the links between agricultural production, food supplies and human health, and the
intractability of the poverty-hunger problem, underline the importance of the forthcoming
International Conference on Nutrition jointly sponsored by FAO and the World Health
Organization (WHO).

9. The Council agreed that, as a general rule, increased domestic food production
is a critical element in improving the food security situation of low-income food-deficit

Page 2

countries, including facilitating access by the individual household to food supplies.
Means of promoting domestic food production are specific to the particular situations
of individual countries, but they generally centre on such key areas as liberalization of
trade, agrarian reform, producer incentives, input supply and marketing institutions.
Above all, government policy has to focus on the farming community. In some countries,
success has been achieved in focusing policies and incentive measures on selected basic
foods. Therefore, the Council emphasized again FAO's key role in promoting food and
agricultural production and rural development, as the main source for agricultural
information and documentation, a forum for discussions on global issues and problems
and negotiations of instruments for their resolution, and an important source of technical
and policy assistance and advice.

10. In view of the links between high rates of population growth, inadequate
economic growth, the incidence of poverty and environmental degradation, it is of
paramount importance to address environmental concerns at national level. The Council
noted that, while the more intensive use of yield-raising inputs such as fertilizers and
pesticides could raise food production to meet the rising demand for food from
expanding populations, the over-use of such inputs could lead to serious environmental
problems, a lesson which was also being learnt by some industrialized countries with
highly intensive agriculture. FAO's priority to aspects of environmental protection and
sustainability of production systems is, therefore, undisputed.

Agricultural Trade

11. The Council addressed the complex issues currently affecting agricultural trade.
There are instances of very high levels of support and protection provided to agriculture
in major industrialized countries, such as domestic support, border protection and export
subsidies. These have adverse effects on access by many countries to world commodity
markets and on the development of their agricultural sectors. Appeals have been made
to these industrialized countries to demonstrate the necessary flexibility in negotiations
on agriculture in order to achieve an outcome for the Uruguay Round of Multilateral
Trade Negotiations which would be fully consistent with the agreed objectives. A
number of developing countries continue to be dependent on exports of agricultural and
tropical products for their foreign exchange earnings, which are needed more than ever
before to service their external debt and augment their import financing capacity.
Account has also to be taken of the possible adverse effects of the process of agricultural
reform on the costs of food imports by net food-importing developing countries and of
the possible consequences of a too hasty liberalization of agricultural trade on the food
security of the most vulnerable countries.

12. The Council, therefore, stressed the need for the Uruguay Round of Multilateral
Trade Negotiations to be brought to a successful conclusion. This should embrace a full
package of measures to liberalize world markets and to achieve a more open and
balanced international trading system, in line with the objectives of the Punta del Este
Declaration and the Mid-term Review Agreement. It was recalled that these objectives
include the achievement of substantial and progressive reductions in agricultural support
and protection, sustained over an agreed period of time; these would result in correcting

Page 3

and preventing restrictions and distortions in world agricultural markets. The objectives
also include the fullest liberalization of trade in tropical products, including in their
processed and semi-processed forms.

13. The continued negotiations of the Uruguay Round only serve to underline the
need for further efforts to attain these objectives.

Page 4

H. FIELD PROGRAMME

14. The close interaction between the Regular and Field Programmes represents one
of the Organization's major strengths as re-emphasized during the Review of FAO's
goals and operations. 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

15. The Organization, through its Investment Centre, has continued to mobilize
external and domestic investment for agricultural and rural development in developing
countries. Up to the end of 1990, 835 projects prepared with FAO's assistance have
been approved for financing. Total investments involved in these projects amount to
more than US$ 40 900 million, of which US$ 20 835 million have been committed by
multilateral financing institutions, much of it on concessional terms.

16. During 1990, the Investment Centre carried out 191 missions, 120 under the
FAO/World Bank Cooperative Programme (CP) and 71 under the Investment Support
Programme (ISP). Twenty one (43 percent) of the World Bank's agricultural projects
approved for financing during the Bank's fiscal year 1990 (ended June 1990) were
prepared by the CP. During 1989 and 1990, the ISP continued to work at a high level
with IFAD, the African Development Bank and the UN Capital Development Fund.
Cooperation is gradually resuming with the Asian Development Bank and negotiations
were initiated with the Inter-American Development Bank for a renewal of cooperation.

17. In 1990, 38 projects prepared with Investment Centre assistance were approved
for financing, for total investments of US$ 2 681 million. This amount includes
US$ 1 480 million in external commitments, 44 percent of which was on concessional
terms. Sub-Saharan Africa continued to receive major emphasis in Investment Centre
activities. During the year, 40 percent of Investment Centre work was in this region.

18. The level of work for the next two years is expected to remain the same as at
present. The World Bank has reiterated its commitment in support of the FAO/World
Bank Cooperative Programme, which is expected to continue to formulate a substantial
proportion of the Bank's agricultural projects. No significant change is foreseen in the
geographical balance of CP activities, except for a small increase in operations in Eastern
Europe. Demand from the various financing institutions for the services of the
Investment Support Programme continues to be strong. While the overall volume of
activities is expected to remain unchanged, slight shifts may occur in the respective levels
of cooperation with individual financing agencies. Joint activities with IFAD and
UNCDF are likely to continue at a high level, and cooperation with the AsDB is
expected to expand somewhat. Work with the AfDB is unlikely to expand beyond its
present level due to the limited absorptive capacity of many African countries. Once

Page 5

negotiations with the IDB for a new cooperative agreement are successfully concluded,
there should be an increase in activity in Latin America and the Caribbean.

Technical and Material Assistance

19. FAO's pre-investment, technical assistance and material support programmes
have been relying on a steady mix of funding sources, as shown in the following table:

EXPENDITURES ON FAO FIELD PROGRAMMES FUNDED FROM EXTRA-BUDGETARY SOURCES

(US$ million, by programme and programme category)

FIELD PROGRAMMES 1982 1983 1984 1985 1986 1987 1988 1989 19901

1. FAO/UNDP Programme 141.1 1165 109.2 1159 128 128.4 155.0 1643 183.0

2. Trust Fund Technical Assistance

FAO/Government Cooperative 44.4 43.8 56.8 65.4 73.0 72.5 74.6 75.8 96.1
Programme

Associate Professional Officer Scheme 13.0 12.6 13.7 13.2 12.9 13.2 16.5 183 22.9

Near East Cooperative Programme 3.0 1.3 0.7 0.9 0.8 0.9 0.6 03 0.6

Unilateral Trust Funds 245 33.5 38.2 42.1 34.7 29.6 31.2 305 33.2

PFL Special Account 2.7 1.5 0.5 0.6 0.6 0.6 0.8 0.6 0.5

Freedom from Hunger Campaign/AD 1.0 1.1 1.0 1.1 0.9 1.3 1.2 1.6 2.6

UN Fund for Population Activities 1.9 0.9 1.7 2.1 1.3 2.0 2.5 4.0 5.6

UN Environment Programme 0.9 1.9 0.8 0.9 0.6 0.8 0.9 0.6 0.9

Other UN Organizations 3.1 4.7 10.5 9.4 7.1 6.7 7.8 7.7 7.4

Special Relief Operations (OSRO) 15.5 12.2 5.3 4.0 4.1 4.7 4.4 2.7 4.6

International Fertilizer Supply Scheme 3.8 0.1 3.2 15 1.6 0.8 13 0.2 03
(IFS)

Emergency Centre Locust Operations 7.0 7.4 92 113 4.7
(ECLO)

Screwworm Emergency Centre for North 4.9
Africa (SECNA)

Miscellaneous Trust Funds 5.9 6.7 7.2 6.4 6.6 7.4 8.6 10.2 10.8

SUB-TOTAL 119.7 120.3 139.6 147.6 151.2 147.9 159.6 163.8 195.1

TOTAL 260.8 236.8 248.8 263.5 280.0 276.3 314.6 328.1 378.1

1 Estimate; 1990 figures for Trust Funds include commitments so as to harmonize data with UNDP delivery.

Page 6

20. The trend of growing FAO/UNDP project expenditures, which resumed in 1985,
continued through 1990. Over the last five years, project delivery increased by some
58 percent and is now back to its previous peak level of around US$ 182 million (in
1981). However, in real terms, this is considerably lower than the effective volume of
technical assistance delivered in the early part of the eighties. The share of UNDP in
FAO's extra-budgetary field programmes in 1990 was 48.4 percent.

21. The pledging conference held in November 1990 has resulted in an estimated
US$ 1 300 million being available for UNDP programmes in 1991. Compared to the
previous year, there is an estimated increase in available resources of about 7 percent.
The net result of the pledging conference should, however, be seen in the light of the
recent fluctuations of the US dollar which could have a significant impact, as pledges are
usually made in national currencies.

Trust Funds

22. Throughout the eighties, there has been a steady increase in Trust Fund delivery,
which reached an estimated level of over US$ 195 million in 1990 or 51.6 percent of
total extra-budgetary field programmes. Taking into account the level of recent
approvals and expected contributions from various funding sources, the present level of
project delivery is expected to be maintained in the near future.

23. The FAO/Government Cooperative Programme (GCP) remains the major
component of the Trust Fund Programme. Estimated delivery in 1990 (expenditures and
commitments) was around US$ 96 million. Part of this steady growth is due to
substantially increased support from major donors such as the Government of the
Netherlands. The Associate Professional Officer Scheme has also attracted continuing
support, with a 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 and effective control of locust invasions over most of
Africa. Assistance through the Screwworm Emergency Centre for North Africa
(SECNA) was initiated in 1990 and has led to active FAO leadership in control and
eradication activities.

24. Unilateral Trust Fund expenditure in 1990 amounted to some US$ 33 million.
Within this category, the technical assistance projects funded from development bank
loans continued to gain importance. Further expansion is naturally dependent on the
beneficiary governments requesting FAO's involvement in technical assistance
components of bank loans. FAO's intervention has been mostly confined so far to
institution-building aspects and training activities.

25. There appear to be good prospects for further expansion of FAO population
activities, due to increased support from the UN Fund for Population Activities
(UNFPA).

Page 7

26. FAO's Special Action Programmes continue to play an important role in
attracting financial support for well-defined technical sectors. Under the Government
Cooperative Programme, donors stress their preference to funding a long-term
programme over individual, separate projects. These programmes are based on FAO's
Regular Programme priorities and include field activities at both regional and national
levels. Among the priority programmes that received strong support recently are: the
Tropical Forestry Action Programme; the Food Security Assistance Scheme in its
expanded concept; Fertilizers, Seeds, Pest Control and Marketing for the benefit of
small farmers; and Aquaculture and Small-scale Fisheries. Most of these programmes
have a strong focus on the role of women in rural development and on environmental
impact.

Support Costs

27. The Council has been regularly apprised, including at its last session in
November 1990, of developments regarding support costs successor arrangements for
UNDP-funded technical assistance, to be applied from 1992 onwards. The Council is,
therefore, well aware of the critical importance of any new arrangements and of other
proposals which could have far-reaching consequences on the present system of tripartite
cooperation involving governments, the UNDP and the specialized agencies of the UN
system.

28. It is recalled that the so-called "framework" decision adopted by the UNDP
Governing Council in 1990 envisages three main elements of UNDP programme and
project support:

TSS1: technical support at the programme level (i.e. for programming,
sectoral and sub-sectoral analytical work, policy studies, etc.) to be funded
from a new facility to which 2 percent of programmable resources would
be allocated by UNDP;

TSS2: technical support at the project level (i.e. project identification,
design, evaluation, monitoring, etc.). As a working hypothesis, 2 percent
of programmable resources would be set aside for this purpose;

AOS: administrative and operational support for projects (i.e. recruiting
and administering experts and consultants, sub-contracting, procurement of
equipment, fellowships, etc.) to be charged to the individual country IPF.
In principle, 10 percent of the country IPFs would be allocated for this
purpose.

29. Intensive discussions at both intergovernmental and inter-agency levels are
underway in order to usher in a system which would safeguard the interests of both
recipient and donor countries, as well as preserve the benefits from the current tripartite
relationship. After considering a progress report at a special session in February 1991,
the UNDP Governing Council is expected to reach a decision in June 1991. However,
at the time of writing, it appears that much remains to be done to clarify interpretation

Page 8

of the "framework" decision, in agreeing on practical modalities and in ensuring adequate
transitional measures.

Food Aid

30. 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. FAO technical inputs contribute to the formulation of
these projects, while the range of project activities each year depends on the nature of
requests from recipient governments. Cooperation between FAO and WFP will continue
to cover the above aspects.

Page 9

mI. FINANCIAL FRAMEWORK

31. The liquidity problems which have affected the financial management of the
Organization for the last two years are not yet over. The prospects for the coming
biennium are difficult to forecast but are analyzed below.

Payment of Current Assessments

32. The Council, at its Ninety-eighth Session in November 1990, noted the status of
contributions at the time of its session.

33. As seen from the following table, the percentage of assessments received by the
end of 1990 shows a distinct improvement over the preceding two years.

Current Received Outstanding Received as
assessments % of
assessments

1990 278 750 245 568 33 182 88.10
1989 240 920 181 028 59 892 75.14
1988 240 920 184 667 56 253 76.65

34. The position of Member Nations with regard to meeting their obligations has
deteriorated in 1990. The comparison shows a decrease in the number of Member
Nations who paid in full and an increase in Member Nations who made no payments.

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

1990 157 65 28 64
1989 158 79 25 54
1988 158 79 27 52

Payment of Arrears

35. At the beginning of 1990, the amount of arrears relating to 1989 and prior years
stood at US$ 150.3 million. By the end of 1990, the amount of arrears stood at
US$ 129.3 million.

Page 11

Contributions Outlook

36. Both with regard to 1990 assessments and as regards arrears, the largest
contributor needs special mention, the total outstanding from it amounting to
US$ 199.7 million.

Miscellaneous Income

37. The current Programme of Work and Budget included an estimate of
US$ 12.0 million of Miscellaneous Income. By the end of 1990, Miscellaneous Income
amounted to US$ 13.7 million.

38. This amount is, of course, exclusive of the special voluntary contribution of Italy
of US$ 15 million received in 1990, for the Technical Cooperation Programme, which
is credited to Miscellaneous Income and provides corresponding relief to the Regular
Budget.

39. 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 1992-93 at the stage of the Summary.

Working Capital Fund

40. 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.

41. At 31 December 1989, the amount owed by Member Nations was
US$ 151 036 967. In accordance with Financial Regulation 6.2(a)(i), US$ 17 977 238,
which was the balance on the Fund at that date, was transferred to the General Fund.
Thus, the balance on Working Capital Fund to be carried forward to 1990 was zero.

42. As of end 1990, a further US$ 156 000 had been received from Member Nations
towards the increases for 1988 and 1989.

Special Reserve Account

43. The effective working budget for the biennium 1990-91 is US$ 568.8 million.
Thus, the authorized level of the Special Reserve Account is US$ 28 440 000. In view
of the accumulated deficit on the General Fund at 31 December 1989 of
US$ 52.7 million, no funds were available to increase the balance on the Account to its
authorized level.

44. Conference Resolution 13/81 authorizes the Director-General to use the funds
in the Special Reserve Account to finance budgetary expenditures pending receipt of
contributions, whenever the Working Capital Fund is insufficient. However, in view of

Page 12

the uncertainties as to the Lira/Dollar exchange rates in 1990-91, the Director-General
decided to carry forward the full balance of the Account, of US$ 19.5 million at
31 December 1989, into the next biennium. In August 1990, the Director-General
decided to authorize the use of US$ 16 million of the Special Reserve Account as
internal borrowing pending receipt of arrears.

45. During 1990, the unfavourable exchange rate of the US Dollar to the Italian Lira
generated a negative variance on staff costs of US$ 10.2 million. Net profits on exchange
of US$ 136 000 were realized on other transactions.

46. Member Nations contributed a further US$ 0.2 million during 1990 against the
Special Assessment of US$ 12.3 million in 1988.

Page 13

IV. PROGRAMME FRAMEWORK

47. As mentioned in the Director-General's Introduction, the proposals in this
Summary do not involve any overall real growth. They are the result of hard choices
and rigorous selection among a number of priority actions, as determined or
recommended by FAO Governing Bodies. Overall budgetary constraints do not permit
well-supported FAO programme priorities to be funded at optimal levels and entail the
curtailment of several activities. The programme framework is briefly described below.

Approach

48. As for every biennial programme budget formulation exercise, the point of
departure has been the cumulative guidance provided by FAO's governing and advisory
bodies. These guiding principles are amply recalled in the Introduction to this document.
Accordingly, the proposals formulated by all FAO units have been sifted through an
intensive process of internal review and appraisal, from the level of respective units to
organization-wide senior management meetings convened by the Director-General.

49. The substantive thrust of the Director-General's proposals was indicated in the
Outline submitted to the Joint Meeting of the Programme and Finance Committees held
on 28-30 January 1991. The report of this Joint Meeting is submitted to the Council
(document CL 99/4). The views expressed by these Committees have been summarized
in the Director-General's Introduction above. The modifications to the original
proposals of the Director-General, as a result of the consensus recommendation of the
Joint Meeting, are indicated below. More details on the scope of planned activities
under each programme are given in the Annex. In order to facilitate their consideration
by the Council, the main policy issues embodied in the proposals are recalled as follows.

Global Priorities and Areas of Increased Resources

Environment and Sustainable Development:

50. The priority on environment and sustainable development has been the object
of particular scrutiny. It was specifically highlighted in the instructions issued by the
Director-General to FAO programme managers for the preparation of their submissions
to the Outline Programme of Work and Budget. Meetings of the Interdepartmental
Working Group and the Steering Committee were specially held to examine Programme
of Work and Budget proposals. The need for FAO not only to participate fully in the
preparatory process to the United Nations Conference on Environment and
Development (UNCED) but to ensure adequate follow-up to this crucial event will be
of paramount importance during the 1992-93 biennium. It is, therefore, proposed to
strengthen FAO's coordinating unit dealing with these subjects under the authority of the
Special Adviser to the Director-General and to enable it to support pertinent cross-
sectoral activities throughout FAO. These actions require a net increase of

Page 15

US$ 1.5 million. This includes support to cross-sectoral actions particularly in the
following areas:

integration of environment and sustainability in FAO's policy advice and
planning assistance;

biological diversity;

climate change;

agroforestry;

combatting desertification;

integrated coastal zone management; and

energy.

51. In addition, a number of units are planning to strengthen their activities related
to sustainable development: e.g. Land and Water Development Division (Action
Programme on Water and Sustainable Agricultural Development); Human Resources,
Institutions and Agrarian Reform Division (environmental education and training);
Policy Analysis Division (policy advice and environmental accounting); Statistics Division
(environmental data and statistics); etc..

Agricultural Data Development:

52. Action in 1992-93 will build primarily on the WAICENT (World Agricultural
Information Centre) project after the considerable investment in conceptual and
technical design work which has already taken place in the past and present biennia.
WAICENT is an organization-wide undertaking which involves virtually all the FAO
units which assemble, process or generate data but the bulk of the needed additional
resources, US$ 1.4 million, is proposed to be provided through the Statistics Division
(ESS). Moreover, there are other actions planned in 1992-93 to enhance FAO's role of
world assembler and disseminator of information, e.g. by strengthening work on
aquaculture statistics, environmental data (as mentioned above), and crop assessment in
the Global Information and Early Warning System (GIEWS), as well as expanding
applications of Geographic Information Systems (GIS).

Women-in-Development:

53. Continued attention needs to be paid to the implementation of FAO's Plan of
Action for the Integration of Women in Agricultural and Rural Development through
further activities on training, policy and planning advice, project development, etc.. A
limited increase is therefore proposed for the relevant unit in the Economic and Social
Policy Department, which will be matched by higher allocations, where required, in all
concerned "sectoral" units.

Page 16

- Policy Advice:

54. The policy advisory role of FAO involves a number of units, with the Policy
Analysis Division (ESP) at its hub. A number of actions are being implemented in the
present biennium to strengthen FAO's capacity to provide policy advice to Member
Nations (coordinating committees, supportive information systems, etc.). It is proposed
to go further in 1992-93 by providing additional resources and staff to the ESP Division,
with due attention to its geographical focus.

Technical Cooperation Programme (TCP):

55. The Director-General has been duly guided by Conference Resolution 9/89 on
Increase in Allocation for the Technical Cooperation Programme in forthcoming biennia.

56. Beneficiary countries are deeply attached to the prompt and effective assistance
TCP projects provide them. All Member Nations recognize TCP's value and special role
in FAO's developmental action. However, differing perceptions exist on the desirable
level of the TCP appropriation in relation to the overall budget.

57. It is thus proposed to meet, in a limited way, the expectations embodied in
Conference Resolution 9/89, through a net programme increase for the TCP of
US$ 4 million. The percentage of the TCP appropriation to the total budget is presently
11.9 percent. It appears that this percentage may fall further, when the budget level is
adjusted for cost increases and the exchange rate of the next Programme of Work and
Budget.

58. This is entirely due to the fact that, over several biennia, the pace of cost
increases at headquarters has consistently outstepped the cost increases needed to
maintain the "purchasing power" of the TCP, the expenditures for which occur essentially
in the "South". It is, therefore, emphasized that TCP has not suffered any loss in terms
of the volume of outputs and services provided to beneficiary countries. The decrease
in percentage to the total budget observed in recent biennia is the result of purely
financial factors. It must also be stressed that these figures correspond to the rate of
exchange voted by the last Conference of Lire 1 335 to US$ 1. Should the US dollar
continue on its current weak course, the percentage share of the TCP in the total budget
is likely to end up slightly lower.

59. Leaving aside the issue of "percentage", the proposals mean that the greatest net
increase is assigned to the TCP.

International Conference on Nutrition:

60. This major milestone in the rich history of FAO, in collaboration with WHO, is
due to be held at the end of 1992. Substantial costs will need to be borne by the two co-
sponsoring organizations for the preparations, organization and follow-up to the
Conference. It is hoped that donor governments will see their way to providing
significant extra-budgetary contributions, particularly for country-level activities. To the

Page 17

maximum extent possible, some of the costs will be absorbed within existing allocations,
especially of the Nutrition Division. However, this division needs to cater for other well-
established priorities such as work on food standards, food control infrastructures, etc.,
which cannot be compressed and in some cases even deserve further strengthening. It
is, therefore, necessary to provide it with a net increase of US$ 1 million.

- Forestry:

61. In view of the consistent and pressing calls on the Organization to give "positive"
discrimination to its forestry activities, a net programme increase of some US$ 435 000
is proposed for the Forestry Department. This is, inter alia, to meet increased
backstopping requirements for the implementation of the Tropical Forestry Action
Programme and other priority areas of the Forestry Department, such as work on forest
protection, forest sector analysis and the coverage of forestry aspects in the appropriate
legal instrument. Some reduced provisions in the Regional Offices result in a net
increase of US$ 110 000 under Major Programme 2.3, Forestry.

Decentralization:

62. The further consolidation of FAO's country representations (FAORs) is a
Conference directive. On the one hand, they provide the most direct and reliable link
between FAO and its developing Member Nations and ensure that FAO's developmental
action achieve maximum impact. On the other hand, FAO's presence in Member
Nations becomes even more relevant in a context of growing national execution and
more versatile and sophisticated assistance and advisory services from the United Nations
system. This drive for consolidation and modernization of the FAORs was one of the
key recommendations stemming from the FAO Review. In order to build on past and
ongoing progress, a net increase of US$ 2.7 million is proposed for 1992-93, without
adding to the number of offices so far authorized by the FAO Conference.

Enhanced Coordination with Other International Organizations and
Stepped-up Cooperation with NGOs:

63. Member Nations are calling increasingly for enhancement of coordination within
the UN system. The problems the UN system has to address are increasingly of a global
and intersectoral nature (environment and sustainable development is the most obvious
example), and thus require sustained coordination efforts. Coordination with other
organizations is also assuming greater importance as a number of key regional
intergovernmental organizations develop their programmes. International non-
governmental organizations are in many instances becoming active protagonists on the
development scene. The Office for Inter-Agency Affairs (IAA) is the focal point for
relations and policy coordination with such external bodies and needs to build up its
capacity to maintain close contacts with a vast array of institutions and follow their
activities.

64. Hitherto, responsibility for liaison and collaboration with the non-governmental
sector has been spread among several units, including IAA and the Freedom from

Page 18

Hunger Campaign/Action for Development unit (DDA). There is a need to establish
a consolidated focal point within the Organization with responsibility for strengthening
FAO's links with this sector, particularly at the policy level. FAO was a pioneer in the
UN system in recognizing the importance of NGOs from the early sixties, when the
Freedom from Hunger Campaign was established, and it has a wealth of experience on
which to expand cooperative links with NGOs, both national and international, from the
North and the South.

65. It is, therefore, proposed to merge the former IAA and DDA units into a
consolidated Office for External Relations, and increase its staff strength to cope with
an expanding volume of representational, substantive and information-gathering activities.

Areas of Reduced Resources

Regional Offices:

66. FAO Country and Regional Offices represent the two sides of the same coin in
a coherent policy of decentralization. Member Nations strongly appreciate the essential
contribution of FAO's Regional Offices to facilitate inter-country cooperation in FAO's
fields of competence, particularly at a time when regional and sub-regional integration
and collaboration are the order of the day. It is, therefore, with great reluctance that net
reductions are proposed in the provisions for Regional Offices in order to counterbalance
the above necessary expansion of FAORs. This will regrettably involve a reduced
capacity from these offices to carry-out traditional activities of support to technical
cooperation networks, servicing of regional meetings, assistance to regional projects and
initiatives and other substantive outputs of regional or sub-regional interest.

Administrative and Support Areas:

67. FAO is able to benefit from the generous offer of the Host Government to cover
the rent of those premises which the Organization is still forced to obtain from the
commercial market; hence a proposed reduction under Chapter 6, Common Services.
However, it is not possible to reduce the provision by the total amount of the rent, in
view of the need to meet the cost of some necessary maintenance and renovation work,
which has been delayed over several biennia in view of FAO's financial situation but
which cannot be postponed any longer. The headquarters premises and some key
installations thereof, have indeed reached the stage of potential breakdown or
unacceptable standards, as well as the need to incur excessive maintenance costs if not
renovated.

68. In addition, it has proved possible to eliminate a number of posts in the
Administrative Services Division and the Publications Division, the latter related to
measures resulting in a lower cost for publications.

Page 19

Selected Technical and Economic Programmes:

69. For the sake of freeing resources to other areas, the proposals also include
several deliberate actions to reduce existing resource levels. Prominent examples are:
reduction in the provision for the Andr6 Mayer Fellowships; suspension of the
Professional Training for Agricultural Development Programme, hitherto used to train
at FAO headquarters a small number of officials from Member Nations on short
secondment periods in agricultural development; reduction in the provision for FAO's
Investment Centre, stemming inter alia from the merger of the present three services of
the Investment Support Programme (ISP) into two; reduction of the Regular Programme
support to the FIAC (Fertilizer Industry Advisory Committee) which is proposed to be
met from extra-budgetary contributions; etc..

70. Many technical and economic programmes are, therefore, subject to reduced
resources. The full extent of shifts of resources and net changes at the levels of
individual programmes, sub-programmes and programme elements, is apparent in the
Annex. A few proposed adjustments to the programme structure, including modified
titles, are also explained in the Annex in the respective narratives.

Adjustments to the Outline Proposals

71. In order to keep his proposals to the current level of the budget in real terms,
the Director-General has revised his original proposals through a combination of two
types of action. On the one hand, further reductions have been made for selected
substantive programmes beyond those contemplated at the Outline stage. On the other
hand, the requests for additional resources for targeted areas deserving strengthening
have been scaled down by stretching implementation plans to the maximum extent
possible.

72. In the former category, provisions for Regional Offices and some headquarters
technical divisions had to be reduced further, directly affecting substantive output under
several sub-programmes (e.g. less agricultural research review missions than initially
contemplated, reduced assistance for plant protection infrastructures, fewer advisory
missions on rural marketing, etc.).

73. In the latter category, the amount of net increase originally proposed for
WAICENT has been reduced by US$ 650 000. The quality of WAICENT is not
intended to suffer as a result; however, the implementation will be delayed somewhat.
The strengthening of FAORs has also been reduced by US$ 200 000.

Changes in Resources

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

Page 20

USS 000
Programme 1990-91 Resource Shifts at 1992-93 Gross
Approved Programme Element Level Proposed Pcrcen-
Budget Budget stage
Increases Decreases Change

2.1.1 Natural Resources 19 992 1156 (1 731) 19 417 14.4
2.1.2 Crops 32 135 3 542 (4 233) 31444 24.2
2.1.3 Livestock 18 808 1547 (2 162) 18193 19.7
2.1.4 Research and Technology 18 650 5 154 (2 482) 21 322 40.9
Development
2.1.5 Rural Development 32 450 1164 (3 397) 30 217 14.1
2.1.6 Nutrition 17 633 1591 (612) 18 612 12.5
2.1.7 Food & Agricultural Information 30 827 4 186 (3 437) 31 576 24.7
and Analysis
2.1.8 Food and Agricultural Policy 33 662 2255 (3179) 32738 16.1
2.1.9 Programme Management 8 486 146 (574) 8 058 85
TOTAL AGRICULTURE 212643 20741 (21 807) 211 577 20.0
2.2.1 Fisheries Information 5487 195 (239) 5443 7.9
2.2.2 Fisheries Exploitation and 16 784 855 (917) 16 722 10.6
Utilization
2.2.3 Fisheries Policy 7 946 712 (840) 7 818 19.5
2.2.9 Programme Management 6182 23 (67) 6138 1.5
TOTAL FISIERIES 36399 1785 (2063) 36121 10.6
2.3.1 Forest Resources and Environment 6 720 1 717 (1 248) 7189 44.1
2.3.2 Forest Products 4 245 1946 (2 359) 3 832 101.4
2.3.3 Forest Investment and Institutions 8 529 1 572 (1399) 8 702 34.8
2.3.9 Programme Management 5 766 35 (154) 5 647 3.3
TOTAL FORESTRY 25 260 5 270 (5160) 25370 413

GRAND TOTAL 274 302 27796 (29 030) 273 068 20.7

75. 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. With these caveats, the percentages give an indication of
change and where it is occurring. The narratives in the Annex clearly indicate the nature
of the programme changes.

76. The relatively "low" percentage change for programme management is the
normal reflection of inherent stability of supervisory functions. The abnormally high

Page 21

percentage under Programme 2.3.2, Forest Products, reflects the complete reorganization
of sub-programmes and programme elements proposed under this programme. The
relatively high percentage under Programme 2.1.4 mostly reflects a shift of resources
from Chapter 5. The substantial reductions in the Regional Offices also affect these
percentages throughout.

Page 22

V. PROGRAMME BUDGET IMPACT

77. The budgetary provisions at constant 1990-91 cost levels are as follows:

1990-91 Approved Programme 1992-93 Proposed Programme
Chapter and Major Programme Budget Change 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

3.4 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

7 CONTINGENCIES

15 427 2.7

11 876 2.1

4464 0.8

10 327 1.8

42094 7.4

212 643 37.4

36 399 6.4

25 260 4.4

274302 482

6783 1.2

23 640 4.2

55 174 9.7

950 0.2

86547 15.3

67767 11.9

22 122 3.9

55 080 9.7

2 452 0.4

79 654 14.0

17836 3.1

600 0.1

(408) 15,019 2.6

(456) 11 420 2.0

(10) 4 454 0.8

552 10 879 1.9

(322) 41 772 73

(1 066) 211 577 37.2

(278) 36 121 6.4

110 25 370 4.5

(1 234) 273 068 48.1

(9) 6 774 1.2

(735) 22 905 4.0

2 700 57 874 10.2

198 1 148 0.2

2154 88701 15.6

4000 71767 12.6

(2 239) 19 883

(101) 54979

(22) 2 430

(2362) 77292

(2236) 15600

0 600

GRAND TOTAL 568 800 100.0 0 568 800 100.0 0.0

Adjusted for programme shifts proposed

Page 23

(10.1)

(0.2)

(0.9)

(3.0)

(125)

0.0

78. 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 above table.

79. 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 1990-91, the change proposed
and the proposed 1992-93 level.

80.
page,

The column headed "Programme Change" in the table
can be analysed by organizational unit as follows:

Legend to column headings:

CH 1 Chapter 1 General Policy and Direction
MP 2.1 Major Programme Agriculture
MP 2.2 Major Programme Fisheries
MP 2.3 Major Programme Forestry
CH 3 Chapter 3 Development Support Programmes
CH 4 Chapter 4 Technical Cooperation Programme
CH 5 Chapter 5 Support Services
CH 6 Chapter 6 Common Services
CH 7 Chapter 7 Contingencies

shown on the previous

Annex Page References

AS
A9
A75
A89
A107
A113
A117
A123
A125

Page 24

CH 1 MP 2.1 MP 2.2 MP 2.3 CH 3 CH 4 CH 5 CH 6 CH 7 TOTAL

AF (474) (2 650) (3 124)

AG (703) (703)
DD 2154 2154

ES 1575 1575

FI (198) (198)
FO 435 435

GI (409) 1 102 (2 245) (1552)
LO 18 18
ODG 69 542 611

RAFR (772) (772)
JAFR

RAPA (891) (3) (12) 50 (20) (876)
REUR 154 (237) (72) (155)
JEUR

RLAC (1 077) (12) (33) 246 (876)
JLAC

RNEA (996) (65) (43) 133 434 (537)
JNEA

TCP 4 000 4000

TOTAL (322) (1 066) (278) 110 2 154 4000 (2362) (2236) 0 0

VI. COST INCREASES

Introduction

81. The methodology for the calculation of cost increases to be provided for within
the 1992-93 Programme of Work and Budget is the same as used for previous biennia
and approved by the Finance Committee, Council and Conference.

82. In view of the concern expressed by some Members of the Joint Meeting of the
Programme and Finance Committees in January 1991, the presentation of these cost
increases is amplified in two ways:

the extent of detail provided in this Summary Programme of Work and
Budget document has been expanded; and

the format has been improved in order to present this subject in a clearer
and more easily understood manner.

Methodology

83. The cost increase estimates are not built up on arbitrary speculations about
possible inflation rates in Italy alone during the next biennium. Rather they take
account, to the greatest extent possible, of known facts such as the actual payments for
staff salaries and allowances; probable increases in General Service staff salaries after
allowing for host country inflation rates and the position in the periodic cycle of ICSC
salary surveys; 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; known specific increases in items such as utilities and
printing contracts; and assessment of the trends in factors affecting FAO's patterns of
expenditure on a worldwide basis.

84. Accordingly, the changes in costs estimated in this document do not result from
simplistic assumptions, nor in generalised approaches; rather they are the sum of the
detailed calculations for each item of expenditure developed using a known methodology
and under stated assumptions.

85. A description of the main concepts involved in the methodology precedes the
details of the methodology and assumptions applied for each item of expenditure in the
Analysis of Cost Increases.

Biennialization and Inflation

86. Cost increases, as in previous biennia, are analysed under the headings of
Biennialization and Inflation.

Page 25

87. Biennialization is simply the full biennial effect of cost increases which have
occurred at some stage
during the current Biennialization
biennium (and therefore
nly for part of theft 24 130 Current Biennium Next Biennium
only for part of the 24
month period) but which 1a INFLATION
will be incurred for the 120 BIENNIAUZATION
full 24 months in 1992-
93. The following graph 1
illustrates the point. 110

88. The graph shows
the line of cost per loo
month as it increases as
firstly in the current so
biennium and then again
in the next biennium. "n
Inflation is shown in
1992-93 as the area filled with vertical lines. If there was no forecast inflation, then the
cost level would be represented by a horizontal line. However, even without inflation
in 1992-93, there would still be cost increases arising simply from the fact that the cost
increases which were incurred during 1990-91 were in effect for less than twenty four
months. This is represented in the above graph by comparison between the area of cost
in 1990-91 to 1992-93. The dotted area in 1990-91 represents the value of the additional
cost to be incurred in 1992-93 and is what is to be covered under Biennialization.

89. It is important to note that cost increases arising from biennialization are a
reflection of what has actually happened in the current biennium and are not based on
forecasts which are a matter of conjecture. The only element of forecast in the
biennialization figure is the estimate of what will occur between now and the end of the
current biennium.

90. Inflation, on the other hand, represents the cost impact of those increases which
are expected to occur at different times and at various points in the next biennium (i.e.
on or after 1 January 1992 and before 31 December 1993).

91. The inflation forecast is based upon assumptions about what changes in cost
levels are likely to occur in the forthcoming biennium, not only in the host country but
wherever FAO incurs expenditures against its Regular Programme resources. This
includes the Regional Offices in Accra, Bangkok, Santiago and Cairo, Liaison Offices in
Washington, New York and Geneva and FAO Representatives Offices all over the
developing world.

Lapse Factor

92. The lapse factor which is a theoretical allowance for savings arising from delays
in posts which are vacant and uncovered by other means, remains unchanged at
3 percent, as approved by the Twenty-fifth Session of the Conference.

Page 26

Impact of Exchange Rates

93. The budget is prepared in US dollars and therefore the relationship of the
US dollar to the currencies in which expenditures are incurred can have an important
impact upon the costs incurred in other currencies. Two quite different mechanisms
exist; one for personnel services and another for non-staff costs.

Personnel Services

94. The basic Professional salaries are unaffected by exchange rates as they are
dollar-denominated. The currency impact on HQ-based personnel services occurs in two
ways; firstly in its effect upon Professional staff post adjustment multipliers and secondly
on the US dollar cost of General Service salary costs incurred in Lire. In both cases, the
methodology is that the budget is developed and presented at the budget rate for the
previous biennium (and therefore the currency effect is excluded). With the adoption
of the budget rate at the Conference, the personnel services line of the budget is
increased or decreased accordingly. An indication of the impact of varying rates of
exchange upon the finally adopted 1992-93 budget is estimated as follows:

Additional Amount
in US$ Millions

Lire 1 335 0
Lire 1 225 20.7
Lire 1 150 37.3
Lire 1 000 49.6

Non-staff Costs

95. The impact of the exchange rates on other categories of cost is less apparent.
In practice, shifts in exchange rate relationships tend to be gradually absorbed by their
relative impact upon international prices and the Organization's continuing efforts to find
the best price for goods and services. In other words, the international tendering process
deals, to some extent, with the impact of such changes.

96. The impact upon expenditures in developing countries also tends to be self
balancing. The benefits of a generally strong dollar (versus the local currency) offset the
usually higher inflation rates such that international average rates tend to come into play.

97. The one area where the currency impact on non-staff cost cannot be ignored is
for those categories of expenditure where the Organization has no practical alternative
to procuring the required good and services in a single country, usually the host country.
The most significant example of this is under Chapter 6, Common Services, which
consists entirely of non-staff costs, the vast majority of which relates to goods and
services which must be sourced locally (e.g. utilities, communications, premises, etc.).
In these cases, the impact of a change in exchange rate results in cost increases when
translated into terms of US dollars. For 1992-93, the significant fall in the US dollar in
relation to the Italian Lira, has been an influencing factor in biennialization costs.

Page 27

Analysis of Cost Increases

98. The table below shows cost increases summarized by major component and
analyzed between those amounts attributable to the biennialization of cost increases
incurred in 1990-91 and those due to inflation in 1992-93. The commentary below
describes the cause of each increase and the assumptions made in forecasting the
inflationary increase in 1992-93.

1990-91 Bienniali- Inflation Total Cost
Programme zation of arising Increases in
Base costs arising during 1992-93
in 1990-91 1992-93

Personnel Services
a) Basic Professional Salaries 90 173 15 068 0 15 068
b) Post Adjustment 47 899 (4 335) 9802 5467
c) General Service Salaries 98 435 10 714 11072 21786
d) Pension Fund Contributions 42 177 5 687 2 104 7 791
e) Social Security 10 046 1 161 1038 2199
f) Dependency Allowances 5 243 (69) 277 208
g) Education Grant 10 356 3 942 1 102 5044
h) Travel on Appointment,
Repatriation, etc. 12 777 0 1660 1660
i) Recruitment and Separation
Costs 14 163 2010 1796 3806
j) General Service Separation
Payments Scheme 8 045 1 521 437 1 958
TOTAL PERSONNEL
SERVICES 339 314 35 699 29288 64 987

Goods and Services
k) Other Human Resources 128 626 2270 9280 11550
1) Travel on Official Business 27 588 0 2 533 2 533
m) General Operating Expenses 50 470 1354 4 575 5929
n) Furniture, Equipment and
Vehicles 22802 0 2280 2280
TOTAL GOODS AND 229 486 3624 18 668 22292
SERVICES

GRAND TOTAL 568 800 39 323 47 956 87 279

Page 28

(a) Basic Professional Salaries

Biennialization: US$ 15 068 000 increase

This increase is the result of two factors:

incorporation of 17 multiplier points in the base scale:

12 points July 1990
5 points March 1991

estimated to have increased salaries by approximately US$ 14 million but
offset by an equal reduction under post adjustment below; and

an additional US$ 796 000 for the net effect of changes in grades approved
as part of the Programme of Work and Budget 1990-91.

Inflation: No provision

No change in base salary is allowed for in the cost increase estimate. It is
expected that several multiplier points will be consolidated into the base on a
"no loss/no gain" basis.

(b) Post Adjustment

Biennialization: US$ 4 335 000 decrease

The major favourable item is the consolidation of 17 multiplier points in base
salary on a "no loss/no gain" basis a net effect of US$ 14 million as described
above.

This is offset by the impact of the biennialization of the post adjustment increase
through to the end of 1991 estimated at a US$ 10 million increase in costs for
1992-93. It is noted that a combination of high inflation rates and a relatively
weak dollar for non-Rome based locations has contributed to this figure.

The data upon which the estimate is based consist of actual costs through to
31 December 1990 plus one increase in class (i.e. 5 percent of base salary)
effective 1 May 1991.

Inflation: US$ 9 802 000 increase

The movements in the post adjustment scale are forecast as:

5.0 points March 1992
5.0 points January 1993
5.0 points November 1993

Page 29

(c) General Service Salaries

Biennialization: US$ 10 714 000 increase

The 1990-91 budget allowed for a net 6 percent increase as a result of the ICSC
General Service Salary Survey whereas the award was for a net 10.04 percent.
The biennialized effect of the 4.04 percent difference is US$ 3.1 million.

The cost of living increases granted and expected to be granted to Rome-based
staff through to the end of 1991 are as follows:

5.94% July 1990
6.5% January 1991
5.5% December 1991 (forecast)

The biennialized effect of both the Rome and the non-Rome based increases are
calculated at US$ 7.5 million.

The impact of changes in grade account for a further US$ 111 000.

Inflation: US$ 11 072 000 increase

The implementation of the biennial scale for within-grade step increases
(WIGSIs) results in estimated cost increases of 0.75 percent in July 1992 and in
July 1993.

Inflation is provided for through a 6.5 percent increase in December 1992 and
in December 1993.

The overall provision for inflation reflects the significant increase in General
Service costs in the field where the fall in the value of the US dollar has meant
that the usual protection from local inflation afforded by accounting in dollars
has not been as effective. Individual calculations have been made for each
Regional Office, taking into account local inflation rates offset by the trend in
the value of the relevant local currency. A weighted average of these results has
been used to identify the inflation for FAO Representations.

(d) Pension Fund Contributions

Biennialization: US$ 5 687 000 increase

This is caused principally by the increase in Pension Fund contributions from
15.0 percent to 15.8 percent effective 1 January 1990 but not included in the
1990-91 budget. In addition, pensionable remuneration increases for
Professionals reflect the increases in base salary plus post adjustment in
New York at P-4 step VI.

Page 30

For General Service, the contribution is calculated on gross salary and therefore
also reflects the biennialization increases mentioned above.

Inflation: US$ 2 104 000 increase

The impact on the Organization's contribution towards pension for Professional
staff is based on the assumption of the following increases:

5% September 1992; and
5% September 1993.

For General Service staff, the increase directly reflects the inflationary increases
in salaries.

(e) Social Security

Biennialization: US$ 1 161 000 increase

The amount consists of higher than expected costs associated with the After
Service Medical Coverage Scheme along with associated administrative costs
charged by the insurer.

Inflation: US$ 1 038 000 increase

A provision for a 10 percent increase in Medical costs has been provided.

(f) Dependency Allowances

Biennialization: US$ 69 000 decrease

While no decrease is evident from changes in the rules of entitlement, a
decrease is apparent in actual costs at the end of 1990 and has been forecast
through to the end of 1991, thus resulting in a reduction in costs under the
biennialization heading. This is attributable to a change in the mix of
dependants.

Inflation: US$ 277 000 increase

This reflects the fact that the General Service content of dependency allowances
is calculated as 3 percent of the mid-point of the salary scale and therefore
reflects the increases forecast for General Service staff.

(g) Education Grant

Biennialization: US$ 3 942 000 increase

This item was seriously under-budgeted for in the current biennium such that the
average cost per man month in December 1989 was greater than the average

Page 31

amount per man month budgeted for 1990-91. This is attributed to a delay in
recording the impact of the 50 percent increase in the maximum reimbursable
amount which was awarded by the General Assembly in 1988 but did not flow
into the accounts until late 1989; well after the 1990-91 cost increase calculation
had been completed.

The amount also allows for the decision by the General Assembly in December
1990 that the ceiling for reimbursement be raised for certain currency areas
including Italy and the UK. Taking into account the mix of education grant
claims, this results in an increase of 15.5 percent.

Inflation: US$ 1 102 000 increase

An inflationary allowance of 5 percent annually for 1992 and 1993.

(h) Travel on Appointment, Repatriation, etc.

Biennialization: US$ no change

No biennialization of these costs has been provided, as the current indications
are that the provision is sufficient.

Inflation: US$ 1 660 000 increase

A 6 percent increase per annum has been provided for in 1992-93 in line with
CCAQ (FB) recommendations for travel costs.

(i) Recruitment and Separation Costs

Biennialization: US$ 2 010 000 increase

The increase is attributable to the impact of the outcome of the ICSC
Comprehensive Review of the Conditions of Service for Professional and Higher
Categories where Installation Grant and Assignment Allowance were replaced
by Hardship and Mobility Allowances and Assignment Grant. Because of the
high number of FAO staff members with a career spanning various duty stations,
this has resulted in a greater cost increase than had been envisaged.

Inflation: US$ 1 796 000 increase

In 1992-93, provisions for increases in Appointment and Separation Costs
(6 percent), Hardship and Mobility Allowances (8 percent) and for rental
Subsidy and other entitlements (10 percent) have been.allowed.

Page 32

(j) General Service Separation Payments

Biennialization: US$ 1 521 000 increase

This amount consists of a combination of contributions to the Separation
Payments Fund (which are 8 percent salaries) and 33 percent of actual claims.
Biennialization reflects the impact of salary increases on the overall cost of the
scheme.

Inflation: US$ 437 000 increase

The inflationary increase matches the Rome content of the General Service
salary increases shown above.

It should be noted that the "Good and Services" categories have been reclassified to align
with the grouping implemented with FINSYS. As this is the first time the new categories
have been used, a brief description is provided with each one.

(k) Other Human Resources

This consists of temporary assistance, consultants, special service agreements,
reimbursable loan agreements and contractual services under both the divisional
allocations in the Regular Programme and under TCP.

Biennialization: US$ 2 270 000 increase

Biennialization costs have been identified in two areas; temporary assistance
which attracts the same increases in cost as net base General Service salary costs
and staff interpreters costs which attract Professional staff cost increases. It also
applies to the remaining items but as the Director-General undertook in the
1990-91 Programme of Work and Budget to absorb the cost increases on
consultants and contractual services, the related biennialization has not been
claimed.

Inflation: US$ 9 280 000 increase

The average rate of inflationary cost increases is just over 7 percent for the
entire biennium. This is an average derived from differing rates for the various
elements as follows:

temporary assistance: 4.6 percent on the revised base in line with HQ
average General Service salary inflation over
the biennium;

consultants: FAO consultancy rates have increased by an
average of 7 percent and are forecast to do the
same as at 1 January 1992;

Page 33

* contractual services:

* printing, translation, etc:

0 interpreters:

* inter-agency shared costs:

* experts for TCP:

An average inflation rate of 6 percent for the
biennium has been allowed on the rationale
that the competitive bidding process will keep
the overall level of increases slightly lower than
the consultant rate;

Based on recent experience, the cost increases
on these types of services are higher (in
particularly for translation work) and
10 percent has been allowed for over the
biennium;

Being substantially staff based, the best
measure of inflation is the average of
7.09 percent on the revised base forecast for
Professional staff.

As these costs are based upon the cost incurred
by the agencies themselves, a biennial average
of 15 percent has been calculated but this may
be adjusted once the actual figures are
available;

As TCP experts come from all over the globe
(including national experts), a precise forecast
is difficult, but based on the fact that the
majority of the expenditure is US dollar based
and that the scale for consultants is the most
common method of determining remuneration,
the average 7 percent increase for the
biennium has been allowed.

Travel on Official Business

This is very similar to the previous classification of the same name. The only
difference is that the travel associated with TCP has been included for greater
accuracy.

Biennialization: US$ no change

Given that the Director-General undertook to absorb travel cost increases in
1990-91, coverage for the effect on 1992-93 is not sought.

Inflation: US$ 2 533 000

Inflation has been provided for in line with the CCAQ recommendation of an
average increase of 6 percent.

Page 34

(m) General Operating Expenses

From a definitional point of view, this item covers the same items as the previous
heading of the same name. It has been refined by identifying those items within the
Publications Pool, the Computer Services Pool, etc. that belong to this classification.

Biennialization: US$ 1 354 000

The budget has been analyzed in terms of costs which must be incurred in Lire
and what may be incurred in US dollars or, where economics dictate, in other
currencies. The Lire portion is important firstly because the rate of inflation has
tended to be higher and secondly because of the serious decline in the number
of lire that can be purchased for the dollar.

The Lire content totals close to US$ 20 million for the biennium and assuming
a very optimistic average exchange rate of Lire 1 250 throughout 1992-93, results
in a biennialization figure of US$ 1 354 000.

Inflation: US$ 4 575 000

The level of inflation for the Italian content has been determined from the
ISTAT index which shows an average increase of 6.97 percent per annum.

For the balance of the expenditure, it has been assumed that the benefits of
international tendering will ameliorate cost increases and therefore an average
figure of 8 percent on the biennium has been provided for.

(n) Furniture, Equipment and Vehicles

The category is now more limited in that supplies have been more appropriately
included under General Operating Expenses above.

Inflation: US$ 2 208 000

Inflationary levels on this item have historically been higher because of the
tendency of manufacturers to extend the specification of basic products. As in
1990-91 an average figure of 10 percent has been allowed for 1992-93.

99. 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 Summary
Programme of Work and Budget need to be worked out in greater detail identifying the
precise input by cost category. Pending the finalization of this information, cost increases
have been computed on the existing 1990-91 programme base.

100. As always, the economic situation considerably adds to the element of
uncertainty regarding a forecast which has to cover cost developments for the next three

Page 35

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.

Comparison

101. 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 are stated in US$ '000 at Lire 1 335 = US$ 1
Item Increase in Increase in
US$ '000 Percent
(1) Programme of Work and Budget 1990-91 568 800
(2) Cost Increases 87 207 15.3
(3) 1992-93 Cost of the 1990-91 Budget 656 007
(recosted base)
(4) Real Programme Increase 0
(5) Cost Increase consequent on (4) 0
(6) Proposed Programme of Work and Budget
for 1992-93 656 007

Page 36

VI. POSTS AND OTHER MEANS OF ACTION

102. The Director-General has followed a policy which is aimed at raising the
Professional level throughout the Organization by identifying the maximum number of
savings in General Service posts and replacing them with Professional posts. This has
proved possible in part because of the increasing use of computers to improve
productivity and reduce the labour-intensive tasks most often undertaken by General
Service staff, but also as a consequence of a thorough review of all vacant posts which
required re-justification before approving their continued inclusion within the Programme
of Work and Budget.

103. The serious degree of overlapping in costs between the upper levels of General
Service and the lower levels of Professional posts forces the Organization to consider
where better value for money could be obtained by hiring young qualified Professionals.
Therefore, where possible, vacant high-level General Service posts have been abolished
and replaced with re-defined positions that fall within the Professional category with the
requisite qualifications.

104. For 1992-93, the Director-General proposes a net reduction of two posts, but this
reflects a net decrease of 18 General Service posts offset by an net increase of 16
Professional posts.

105. The changes in posts are listed below:

Unit New Posts Abolished Posts
ODG D-2 Special Assistant to
Director-General
G-6 Secretary
G-4 Clerk

AUD P-4 Internal Auditor G-5 Audit Clerk
G-5 Audit Clerk
IAA P-5 Senior Liaison Officer
P-4 Liaison Officer
P-3 Liaison Officer

Page 37

PBE P-4 Programme and Budget G-6 Budget Assistant
Officer G-4 Clerk-Stenographer
ODG (Environment and Sustainable Development)

ADG

G-6

ADG/Special Adviser to
Director-General
Secretary

AGP P-5 Senior Officer (Secretary, P-5 Agricultural Officer
IPPC) P-4 Agricultural Officer
P-3 Agro-Forestry Officer G-3 Driver/Mechanic
P-3 Pesticide Information G-2 Guard/Receptionist
Officer
P-3 Agricultural Officer
(Biotechnology)
AGR P-5 Senior Officer
(Environment)
P-3 Environment Officer
G-4 Clerk-Stenographer
G-3 Registry Clerk
ESC P-4 Crop Assessment
Specialist (GIEWS)
ESN P-5 Senior Officer
(FAO/GATT Food
Control Coordinator)
ESP P-4 Economist
P-4 Economist
P-4 Economist
ESS P-3 Statistician G-5 Statistical Clerk
P-2 Statistician
FI P-4 Fishery Statistician
(Acquaculture)
FO P-4 Forestry Sector Analysis
P-4 Forestry Education and
Extension
P-4 Economist
P-4 Institutional Forestry
Development
P-4 Tropical Forest
Management Specialist_

Page 38

New Posts I

Abolished Posts

Unit New Posts Abolished Posts
DDC P-4 Rural Sociologist D-1 Service Chief
P-4 Agricultural Officer G-5 Secretary
G-3 Bilingual Typist
G-3 Bilingual Typist
G-3 Bilingual Typist
G-3 Bilingual Typist
G-3 Bilingual Typist
_G-3 Bilingual Typist
DDF P-3 Liaison Officer (APOs) G-6 Administrative Assistant
P-3 Programme Officer
AFC D-1 Assistant Director G-6 Computer Operator/Tape
P-3 Network Management Librarian
Officer G-5 Secretary
P-2 Network Management G-4 Control Clerk
Officer G-2 Data Entry Operator
P-2 Network Management
Officer
AFD P-3 Programme Assistant G-7 Secretary
AFS G-4 Accounting Clerk G-4 Assistant Security
G-3 Cable Clerk Supervisor
G-3 Stenographer G-4 Assistant Security
G-3 Transport Clerk Supervisor
G-4 Carpenter Foreman
G-3 Senior Guard
G-3 Senior Guard
G-2 Guard
G-2 Blacksmith
G-2 Blacksmith
G-1 Specialized Labourer
G-1 Laundry Worker
G-1 Lead Porter
GIL P-2 Librarian G-7 Library Assistant
GIP P-3 Translator
P-3 Translator
RAFR P-5 Special Advisor (Sahelian
Zone)
P-5 Agricultural Services
Officer
P-4 Agricultural Officer
_(Education and Extension)

Page 39

The above changes can be summarized as follows:

Abolished Posts

Net Change

Professional
General Service

51

(21)
(32)

(53)

16
(18)

(2)

106. Details of the proposed breakdown of total resources by budget component and
therefore of the means of action will be provided in the full Programme of Work and
Budget which also includes specific details of both publications and meetings.

107. Preliminary analysis shows reductions in non-staff human resources (i.e.
consultants and contracts) and in publications. The former is due to the Director-

Page 40

Unit New Posts Abolished Posts
RAPA D-1 Small Farmer
Development
Communication Officer
P-4 Animal Health Officer
P-4 Credit and Cooperatives
Officer
P-4 Development Planning
Officer
G-7 Technical Assistant
(Statistics)
G-7 Programme/Administrative
Assistant
REUR P-4 Agricultural Policy D-1 Economist
P-3 Environment and P-2 Administrative Officer
Sustainable Agriculture
G-4 Clerk-Stenographer
JEUR G-7 Research Assistant
RLAC P-5 Science & Technology
Officer
P-4 Economist
P-4 Information Officer
JLAC P-4 Economist
RNEA P-5 Statistician
P-4 Rural Development Officer
G-3 Clerk-Typist

New Posts

General's concern that the ratio of consultants to staff has become higher than is
desirable given the need for effective oversight, and the latter partly because of a
reduction in the utilization of this means of action but also because of the beneficial
impact of computerization and technology in the Publications Division. An increase in
personnel costs arising from a "richer" mix of Professional versus General Service will be
the major offsetting factor.

Page 41

ANNEX

FURTHER DETAILS OF PROGRAMME PROPOSALS

AND RESOURCE ALLOCATIONS BY MAJOR PROGRAMME

PROGRAMME AND SUB-PROGRAMME

(All estimates at Lit. 1 335 = US$ 1 and at 1990-91 costs in US$'000)

A/1

INTRODUCTION

1. This Annex provides summary information on proposed programme activities and
corresponding resource allocations. The full Programme of Work and Budget 1992-93
will, as in the past, include detailed presentations of these activities.

2. Based on FAO's computerized workplanning and monitoring system (PLANSYS),
in operation in the Headquarters' Technical Departments and Regional Offices, net
changes which have been effected down to programme element level are indicated in
tabular form. 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.

3. It is in the nature of an evolving programme that a number of changes need to
be introduced 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 reflect the changing scope of proposed activities. A strict comparison
between those elements which were "active" two years ago and those proposed for
implementation in 1992-93 is, therefore, not always possible. However, as necessary,
base allocations have been traced as accurately as possible to identify the magnitude of
resource changes.

4. The narratives in this Annex deliberately focus on programme changes and new
emphases. Activities of Regional Offices are also indicated in succinct fashion. The
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. The
medium-term outlook and objectives will be provided in the Medium-term Plan, to be
issued at the same time as the Programme of Work and Budget.

5. 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.

6. It should also be noted that the figures in the tables below are at 1990-91 costs,
exclusive of the cost increases expected in 1992-93, which in the Summary Budget are
presented only in total (under Section VI). The relevant cost provisions will be added
in the full Programme of Work and Budget 1992-93.

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CHAPTER 1: GENERAL POLICY AND DIRECTION

7. Proposed allocations and changes in (US$'
are as follows:

000) at the major programme level

Major Programmes 1990-91 Programme 1992-93
Budget Change Budget
1.1 Governing Bodies 15 427 (408) 15 019
1.2 Policy, Direction and Planning 11 876 (456) 11 420
1.3 Legal 4464 (10) 4454
1.4 Liaison 10 327 552 10 879
TOTAL 42 094 (322) 41 772

MAJOR PROGRAMME 1.1: GOVERNING BODIES

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

Programmes 1990-91 Programme 1992-93
Budget Change Budget
1.1.1 Conference and Council 10 721 (368) 10 353
1.1.2 Conference Services 4 706 (40) 4 666
TOTAL 15 427 (408) 15 019

Programme 1.1.1: Conference and Council

9. 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..

10. The continued search for economy measures makes it possible to effect a net
reduction of US$ 368 000.

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Programme 1.1.2: Conference Services

11. A small reduction is effected under this programme, which covers primarily the
responsibilities of the GIC Division in respect of the organization of FAO meetings.

MAJOR PROGRAMME 1.2: POLICY. DIRECTION AND PLANNING

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

Programmes 1990-91 Programme 1992-93
Budget Change Budget
1.2.1 Director-General's Office 4 509 (455) 4 054
1.2.2 Programme Planning, Budgeting and 4 944 (1) 4 943
Evaluation
1.2.3 Audit 2423 0 2423
TOTAL 11 876 (456) 11 420

13. The reduction in the direct Office of the Director-General reflects the proposed
abolition of a D-2 post of Special Assistant and of two General Service posts. This is a
deliberate sacrifice in order to counterbalance the needed strengthening of overall
coordination work of FAO's environment and sustainable development programmes
(cf. Sub-programme 2.1.4.5).

14. In the Office of Programme, Budget and Evaluation (PBE), it is necessary to
strengthen the Office's analytical capability for improved budgetary formulation and
performance monitoring through a proposed new P-4 post, to be offset by the abolition
of two General Service posts. The latter is made possible by progress in computerization
and office automation; hence no variation in the overall provision. There is no change
in the Evaluation Service, which has been strengthened in past biennia.

15. In the audit area, both financial and management audits will continue, with
increased emphasis on computerized techniques. No change is proposed in the
budgetary provision.

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MAJOR PROGRAMME 1.3: LEGAL

16. Proposed allocations and changes (in US$
are as follows:

'000) at the major programme level

Programmes 1990-91 Programme 1992-93
Budget Change Budget
1.3.0 Legal 4 464 (10) 4 454
TOTAL 4464 (10) 4454

17. The Legal Office consists of the immediate Office of the Legal Counsel, the
General Legal Affairs Service, the Development Law Service and a Documentation and
Research Unit.

18. No changes are proposed to the structure or staffing of the Legal Office. Within
available resources, further progress will be made to computerize documentation and
information dissemination activities.

19. The Development Law Service is expected to continue and, if possible, expand
its activities of direct assistance to member countries in development and natural
resources law. Priority will continue to 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.

MAJOR PROGRAMME 1.4: LIAISON

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

Programmes 1990-91 Programme 1992-93
Budget Change Budget
1.4.1 External Relations and Coordination 4 448 535 4 983
1.4.2 Liaison and Protocol 5 879 17 5 896
TOTAL 10 327 552 10 879

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21. This major programme covers offices at Headquarters and Liaison Offices in
Washington DC (US$ 2 201 000), New York (US$ 1701 000) and Geneva
(US$ 771 000), responsible for a broad range of external relations activities.

22. The former Programme 1.4.1, Inter-agency Affairs, is proposed to be retitled
"External Relations and Coordination", with two components. Sub-programme 1.4.1.1
will cover FAO's relations with the organizations and programmes in the United Nations
system and with other intergovernmental organizations, while Sub-programme 1.4.1.2,
Non-governmental Organizations, will incorporate resources already in Programme 1.4.1
devoted to relations with international non-governmental organizations, and resources
transferred from Programme 3.3.1, formerly entitled "Freedom-from-Hunger
Campaign/Action-for-Development".

23. The net programme increase under Sub-programme 1.4.1.1 is necessary to permit
further enhancement of coordination and joint work with other organizations of the UN
system and with major intergovernmental organizations outside the system. Similarly, the
provision under Sub-programme 1.4.1.2 will allow development of closer relations with
a range of non-governmental organizations and promotion of collaboration with them in
priority areas of FAO's programmes. The overall net increase reflects the strengthening
of staff in the consolidated office.

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

Sub-Programmes 1990-91 Programme 1992-93
Budget Change Budget
1.4.1.1 United Nations and 2 959 200 3 159
Inter-governmental Organizations
1.4.1.2 Non-governmental Organizations 1 489 335 1 824
TOTAL 4 448 535 4 983

25. In the protocol area, the established range of activities will be continued.

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CHAPTER 2: TECHNICAL AND ECONOMIC PROGRAMMES

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

Major Programmes 1990-91 Programme 1992-93
Budget Change Budget
2.1 Agriculture 212 643 (1066) 211577
2.2 Fisheries 36 399 (278) 36 121
2.3 Forestry 25 260 110 25 370
TOTAL 274 302 (1 234) 273 068

MAJOR PROGRAMME 2.1: AGRICULTURE

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

Programmes 1990-91 Programme 1992-93
Budget Change Budget
2.1.1 Natural Resources 19 992 (575) 19 417
2.1.2 Crops 32 135 (691) 31 444
2.1.3 Livestock 18 808 (615) 18 193
2.1.4 Research and Technology 18 650 2 672 21 322
Development
2.1.5 Rural Development 32 450 (2 233) 30 217
2.1.6 Nutrition 17 633 979 18 612
2.1.7 Food and Agricultural Information and 30 827 749 31 576
Analysis
2.1.8 Food and Agricultural Policy 33 662 (924) 32 738
2.1.9 Programme Management 8 486 (428) 8 058
TOTAL 212 643 (1 066) 211 577

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Programme 2.1.1: Natural Resources

28. The continuing degradation of the resource base for agricultural development,
the high agricultural input costs and the persistent food deficits in some areas are three
major areas of concern for the Natural Resources Programme. Therefore, the
programme will continue to provide assistance to Member Nations towards rational and
more efficient use of land, water and other inputs to meet future demands on a
degradation-free and sustainable basis.

29. A major new initiative is the inclusion of a new element under Sub-programme
2.1.1.6 to provide for support to an FAO-led International Action Programme on Water
and Sustainable Agricultural Production. This Action Programme is one of the five
inter-agency components of the UN system-wide follow-up to the Mar del Plata Action
Plan. The cost of the FAO share of this initiative (US$ 400 000) is mainly met by
cancellation of and reduction in other activities under the same sub-programme. As a
consequence, the net increase to Sub-programme 2.1.1.6 is only US$ 38 000. The
allocations to other substantive sub-programmes have had to be reduced.

30. Provisions (in US$ '000) for individual
following table:

sub-programmes are shown in the

Sub-Programmes 1990-91 Programme 1992-93
Budget Change Budget
2.1.1.1 Assessment and Planning 2 459 (19) 2 440
2.1.1.2 Farming Systems Development 2 016 (139) 1877
2.1.1.3 Soil Management and Fertilizers 2 761 (139) 2 622
2.1.1.4 Water Development and 2 264 (120) 2 144
Management
2.1.1.5 Conservation and Reclamation 1725 (17) 1708
2.1.1.6 Sustaining Resource Potentials 610 38 648
2.1.1.7 Regional Offices 3230 (211) 3019
2.1.1.8 Field Programme Support 3 544 (61) 3 483
2.1.1.9 Programme Management 1 383 93 1 476
TOTAL 19 992 (575) 19 417

31. Other changes proposed under various sub-programmes are highlighted below:

increased emphasis on the prevention of sea-water intrusion, assessment of
small basin water resources for irrigation development in Africa and land

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use planning activities, as well as the incorporation of degradation
monitoring work into agro-ecological zonation assessments;

substantial reduction of element 03, Support to Statutory and Advisory
Bodies, of Sub-programme 2.1.1.3, Soil Management and Fertilizers. As a
consequence, the Twelfth Session of the FAO Commission on Fertilizers,
which should have been held in 1992, is to be postponed to the following
biennium (1994), and support to the FAO/FIAC meetings will be
terminated;

enhanced activities directed at reclamation of salt-affected soils, drainage
and salinity control;

promotion of sustainable soils policies as requested by the Preparatory
Committee (PREPCOM) of the United Nations Conference on
Environment and Development; (new programme element)

reductions in the areas of policy advice on sustainability issues and
demonstration programmes on sustainable farming practices. Work on the
impact of climate change will be carried out under other programmes
(2.1.4).

Sub-programme 2.1.1.1: Assessment and Planning

32. Changes at programme element level:

Programme Elements 1990-91 Programme 1992-93
Budget Change Budget
01 Land Resources Inventories and 335 (30) 305
Evaluation
02 Land Use Planning 231 160 391
03 Agro-Ecological Zones Studies and 727 (146) 581
Population Potentials
04 FAO Geographic Information System 570 (8) 562
(GIS)
05 Assessment of Water Resources for 596 5 601
Irrigation Planning
TOTAL 2459 (19) 2440

33. One central activity remains improved land use planning. The guidelines
produced in the 1990-91 biennium will be field tested, validated by case studies and
promoted by expert consultations and publications. National balance sheets matching
demands and land potentials will be prepared to support national planning efforts. A

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database on land use systems and crop requirements will be built up to assist in
providing information on land resources potentials and options, including sub-regional
assessments. Within element 03, the dynamic aspects of land resources degradation and
amelioration will be monitored by agro-ecological zones as requested by the Preparatory
Committee of UNCED.

34. Emphasis is gradually changing from global assessments towards effective
applications of land resources information to the formulation and implementation of
national land policies. This is consistent with the fact that more countries are now able
to carry out their own quantitative inventories and assessments, but need to apply
national databases to planning desirable changes in land use for sustainable agricultural
development. This should include use of geographic information systems, the provision
for which is being maintained.

35. Planning of small-basin water resources directed at increasing small-scale
irrigated areas, and sea-water intrusion problems will receive increased attention, in the
light of the negative impact of sea-water intrusion in coastal aquifers in the
Mediterranean basin and southwest Asia. Specific country situations will be evaluated
in preparation for an international workshop and for the preparation of action plans
susceptible to attract external assistance.

Sub-programme 2.1.1.2: Farming Systems Development

36. Changes at programme element level:

Programme Elements 1990-91 Programme 1992-93
Budget Change Budget
01 Analysis and Development of Sustainable 719 144 863
Farming Systems
02 Farm Management Inputs to Programme 912 (217) 695
and Policy Analysis
03 Management of Commercial and 143 0 143
Emergent Farms
04 Farm Data Systems 242 (66) 176
TOTAL 2 016 (139) 1 877

37. The contribution of micro-economic analysis to technical investigations is the
mainstay of farming systems development work, in order to cast light on the dynamic
relationship between the farm household and its environment. This supports a wide
range of specialized technical and socio-economic programmes. Resources devoted to
the analysis and development of sustainable farming systems have been substantially
increased. Farm management inputs to programme and policy analysis remain an

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important area. It is intended to focus on the use of micro-level data analysis for macro-
policy formulation and for the assessment of the impact of agricultural policies on
different social groups and farming systems.

Sub-programme 2.1.1.3: Soil Management and Fertilizers

38. Changes at programme element level:

Programme Elements 1990-91 Programme 1992-93
Budget Change Budget
01 Efficient Fertilizer Use and Integrated 1 250 (83) 1 167
Plant Nutrition Systems (IPNS)
02 Fertilizer Supply/Economics/Policies 551 1 552
03 Support to Statutory and Advisory Bodies 463 (119) 344
04 Soil Management and Improvement of 497 (83) 414
Shifting Cultivation
05 Sustainable Development of Soil 0 145 145
Productivity
TOTAL 2761 (139) 2622

39. The main thrust of the sub-programme is to counteract the loss of soil fertility
that is currently taking place in many developing countries. As highlighted by the
Commission on Fertilizers, such loss represents an immediate threat to food production
and could lead to catastrophic consequences in the longer term, as it is less "visible" than
other forms of environmental degradation.

40. In order to reverse current plant nutrient "mining", a new element is introduced
with an initial allocation of US$ 145 000 to support national action towards sustainable
soil productivity. Activities will cover keeping national accounts for gains and losses of
plant nutrients, identification of critical areas, drawing up national targets and strategies
and formulation of fertilizer options and policies. Principles will be developed for sound
use of mineral fertilizers leading to a "Covenant of Good Fertilizer Use Practices".

41. In parallel with this new initiative, the application of integrated plant nutrition
systems and soil fertility improvement methods will be promoted further at the national
level. Location-specific systems will be developed through national sub-contracts and
exchanges of experiences ensured through regional networks. Expert consultations will
be held on successful application of Integrated Plant Nutrition (IPN) systems.

42. The monitoring of the world fertilizer situation and the preparation of forecasts
for supply and demand balance remain ongoing activities. Fertilizer strategies will

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continue to be developed for alleviation of constraints to fertilizer use at farm level, with
emphasis on the economic factors that affect farmers' decisions.

43. Under programme element 03, Support to Statutory Bodies, two Fertilizer
Programme consultations are foreseen. However, the Twelfth Session of the FAO
Commission on Fertilizers, which should have taken place in April 1992, will be
postponed to 1994. Support to the FAO/Fertilizer Industry Advisory Committee (FIAC)
of Experts with its four subsidiary bodies, had to be reduced.

44. Under element 04, Soil Management and Improvement of Shifting Cultivation,
priority will be given to the deteriorating ecosystems of the semi-arid tropical region by
promoting low- or medium-input, cost-effective tillage methods and other cultural
practices. Despite the reduced level of resources, the network for tillage and organic
matter management in semi-arid parts of Latin America and Africa will be supported
and the validation, in pilot areas, of methods of prevention of surface sealing and
crusting will be pursued. Cooperation with national institutions on the enhancement of
soil productivity in the humid tropics will include the combined use of acid-tolerant
crops, maximum residue return, no-tillage and judicious use of fertilizers.

Sub-programme 2.1.1.4: Water Development and Management

45. Changes at programme element level:

Programme Elements 1990-91 Programme 1992-93
Budget Change Budget
01 Irrigation Development, Rehabilitation 607 (17) 590
and Improvement
02 Irrigation Management/Performance: 885 (6) 879
Technologies and Research
03 Training in and Inventory of Irrigation 772 (97) 675
Development Techniques and
Methodologies
TOTAL 2 264 (120) 2 144

46. The reduction of US$ 120 000 in this sub-programme reflects the resource shift
to Sub-programme 2.1.1.6 in respect of the inter-agency initiative mentioned above.
Overall, FAO activities in water development and management need to respond to a
slow-down of irrigation expansion and growing water scarcity in many arid and semi-arid
countries.

47. Assistance to Member Governments in irrigation will focus on three key aspects,
namely modernization, improved management and training with technology transfer.
Thus, new technologies will be investigated in cooperation with the ICID (International
Commission for Irrigation and Drainage) and disseminated through publications. The

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performance of irrigated crop production and use of water at farm level will require
corrective actions or investments for which diagnostic techniques, including socio-
economic aspects, will be developed and tested in field projects. Remote sensing
techniques will also be used for evaluation and monitoring purposes. Improved
management of irrigation schemes will be supported through guidelines and computer
programmes on irrigation scheduling, water distribution, operation and maintenance.
Policy and socio-economic issues, such as water rates, farmers' participation, institutional
factors and others, will continue to receive attention.

48. Under the third element, based on the now-established inventory of proven
operational techniques, methods and practices, activities will shift to effective
applications and technology transfer and training.

Sub-programme 2.1.1.5: Conservation and Reclamation

49. Changes at programme element level:

Programme Elements 1990-91 Programme 1992-93
Budget Change Budget
01 Soil Conservation and Watershed 968 (6) 962
Management
02 Reclamation of Salt Affected Soils: 336 73 409
Drainage and Salinity Control
03 Water Quality for Agriculture 197 (22) 175
04 Health Aspects of Water Development 162 0 162
05 Waterlogging and Salinity Control and 62 (62) 0
Drainage
TOTAL 1 725 (17) 1 708

50. Following endorsement of a proposed international scheme for the "Conservation
and Rehabilitation of African Lands" by the FAO Regional Conference for Africa in
June 1990, overall priority will be given to its implementation, in cooperation with
African countries and technical assistance organizations. Extra-budgetary funding will
be necessary for its full implementation. Work will be initiated on the formulation of
similar schemes, in collaboration with concerned regional experts and organizations, for
the Latin America and Caribbean and the Asia and Pacific Regions, for endorsement at
the respective regional conferences. Complementary activities will include the promotion
of research into such subjects as sustainable land use systems for sloping land and the
effects of erosion on soil productivity. Some 80 million hectares are currently affected
by waterlogging and salinity problems.

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51. In order to improve coherence of action, previous elements 05 and 02 are being
merged under the heading Reclamation of Salt-affected Soils: Drainage and Salinity
Control. Special actions will include the preparation of an inventory of losses of irrigated
land and soil productivity due to waterlogging and salinity, together with the development
of low-cost and effective drainage methods and related training. Additionally, guidelines
will be formulated and training undertaken in the use and management of gypsiferous
soils and in the use of marginal quality water on sandy soils.

52. Under programme element 03, major emphasis was placed in 1990-91 on the use
of marginal quality water for crop production resulting in direct technical assistance to
member countries and the production of guidelines. While country level activities in this
area, particularly through training and pilot studies, will continue during the 1992-93
biennium, a new thrust will be on the prevention of pollution of agricultural water. Field
investigations will be undertaken of non-point source pollution and guidelines prepared.
Support will continue to the WHO/FAO/UNEP Panel of Experts on Environmental
Management (PEEM) (regular meetings, publications and training activities). PEEM,
under a revised mandate, will address a wider spectrum of situations, including rural and
urban water supplies, use of waste water including sewage effluents and drainage water
- and wetland ecosystems.

Sub-programme 2.1.1.6: Sustaining Resource Potentials

53. Changes at programme element level:

Programme Elements 1990-91 Programme 1992-93
Budget Change Budget
01 Policy Advice in Support of Sustainable 183 (108) 75
Agriculture
02 Demonstration Programme of Sustainable 134 (40) 94
Farming Practices in particular, Soil and
Water Conservation
03 Analysis of the Impact of Climatic 293 (293) 0
Change on Agriculture
04 Formulation of National Soil Policies 0 79 79
05 Action Programme on Water and 0 400 400
Sustainable Agricultural Development
TOTAL 610 38 648

54. This sub-programme was established in the 1990-91 biennium to provide a focus
on sustainability issues with which activities in other units could be linked. Two new
programme elements are introduced dealing with the formulation of national soil policies

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and to cover FAO's share of the International Action Programme on Water and
Sustainable Agricultural Development.

55. Ten years have elapsed since the World Soil Charter was endorsed by the
Twenty-first Session of the FAO Conference. Progress in its follow-up will be reviewed
and positive lessons will be incorporated into national policies. This work will be
undertaken in close collaboration with UNEP and national institutions. The
International Action Programme on Water and Sustainable Agricultural Development,
formulated in the present biennium as one of the key elements of the strategy for the
nineties in follow-up to the Mar del Plata Action Plan, will also provide an input to the
1992 UN Conference on Environment and Development. Activities will comprise
country programming missions, the development of project profiles and project
documents, a global consultation, and implementation and technical support to selected
projects at the country level.

56. Other elements are, of necessity, reduced or cancelled to provide funding for this
new initiative. Programme element 01, Policy Advice in Support of Sustainable Agriculture
is, however, retained albeit at a reduced level. The considerable work of analysis of
impact of climate change on agriculture, undertaken in 1990-91 in connection with the
World Climate Conference, will be phased out under this programme, but continued
under Programme 2.1.4.

Sub-programme 2.1.1.7: Regional Offices

57. Africa: The Regional Office for Africa (RAFR) will continue to compile and
assess data on land resources and provide information on related potentials by agro-
ecological zones to governments, planners and policy-makers. It will actively contribute
to the practical implementation of the International Scheme on the Conservation and
Rehabilitation of African Lands, endorsed by the African Regional Conference in 1990
and to the inter-agency Action Plan on Water and Sustainable Agricultural Development,
implemented under the aegis of the AGL Division. It will also participate in the
inventory and evaluation of irrigation development and management techniques and
methodologies. Technology transfer will be promoted through networks, training
activities and meetings. Other activities will concentrate on improving soil productivity
and the adoption of appropriate soil management techniques; the formulation of
practical actions for combatting land degradation; and the promotion of environmentally
sound wetland development.

58. Asia and the Pacific: RAPA will emphasize environmental protection and
sustainable production issues concerning land and water use in agricultural development.
It is planned to hold meetings of the regional TCDC networks on bio and organic
fertilizer use, problem soil management, water lifting devices, and irrigation management.
The activities of these networks will focus on integrated plant nutrition, amelioration of
soil degradation processes, problems of ground water exploitation and drainage; and
efficient irrigation management with farmers' participation. The Twelfth Session of the
Regional Farm Management Commission is scheduled for 1993. Training on the use of

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FAO's farm analysis package (FARMAP) and the analysis and development of
conservation-oriented farming systems will continue.

59. Europe: REUR will continue to sponsor and monitor the activities of the
European Cooperative Research Networks on Trace Elements and Animal Waste
Utilization with special emphasis on the protection of the environment and the
standardization of analytical methods. The achievement of the networks will be
documented and disseminated to member countries. A technical meeting on the "Safe
and Efficient Utilization of Manure/Slurry in Agriculture" and a consultation of the
Network on Trace Elements covering Food, Soil and Plants, and Environment will be
organized.

60. Latin America and the Caribbean: A regional consultation of policy-makers and
financial institutions will be convened to discuss the subject of rehabilitation of existing
irrigation and drainage systems. Training materials at different levels will be prepared.
The use of agro-ecological zoning methodologies at the national and local level will be
further promoted. Another important line of activity will be the identification and
dissemination of appropriate and sustainable technologies for semi-arid zones and sloping
lands, to be coordinated with activities in watershed management and agro-forestry
systems. Use of sewage water for irrigation close to urban areas will also receive
attention. The Technical Cooperation Networks on Rehabilitation of Low and Flooded
Areas, and on the Utilization of Natural Resources in the Semi-arid Chaco Region will
be extended to include all countries with arid and semi-arid areas. Work on farming
systems development will concentrate on countries in Central America and the
Caribbean. The inclusion of gender aspects in the design of programmes and the access
of small farmers to export markets, will be emphasized.

61. Near East: The Regional Office for the Near East (RNEA) will give emphasis
to the improvement of surface irrigation efficiency by precision-levelling for field crops
and the large-scale adoption of micro-irrigation systems (fertigation/chemigation) for
open fields and greenhouse crops. Activities are also planned on the use of treated
sewage and low-quality water in localized irrigation systems for agriculture and
aquaculture. The Eleventh Session of the FAO Regional Commission for Land and
Water Use in the Near East will be convened in 1992. The joint ESCWA/FAO
Agriculture Division (JNEA) will provide further assistance to member countries in
preparing their national plans to combat desertification and in designing field projects.
Field studies will also be undertaken on farm management in different agro-ecological
situations within countries of the region.

Programme 2.1.2: Crops

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

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Sub-Programmes 1990-91 Programme 1992-93
Budget Change Budget
2.1.2.1 Conservation and Management of 1517 (4) 1513
Plant Genetic Resources
2.1.2.2 Crop Management and 4 905 (233) 4 672
Diversification
2.1.2.3 Seed Production and Plant 3 138 (384) 2 754
Improvement
2.1.2.4 Crop Protection 5 675 320 5 995
2.1.2.5 Agricultural Engineering and 3 147 (201) 2 946
Prevention of Food Losses
2.1.2.6 Food and Agricultural Industries 1 905 (51) 1854
2.1.2.7 Regional Offices 5 823 (689) 5 134
2.1.2.8 Field Programme Support 3 771 48 3 819
2.1.2.9 Programme Management 2 254 503 2 757
TOTAL 32 135 (691) 31 444

63. The Crops Programme remains strongly orientated towards technical support to
development projects. There is also due emphasis on the transfer of research results
through cooperation with relevant institutions. Major areas of work are: conservation
and management of plant genetic resources; crop management and diversification; seed
production and plant improvement; crop protection; agricultural engineering and food
and agro-industries.

64. The Plant Production and Protection Division (AGP) is responsible for the 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 Sub-programmes 2.1.2.5 and 2.1.2.6, whilst the allocation for Sub-programmes
2.1.2.8 and 2.1.2.9 are shared between AGP and AGS.

65. The provision for Programme Management related to the AGS Division was
hitherto split into two components shown under the Programmes 2.1.2, Crops, and 2.1.5,
Rural Development, under which the division implements most of its substantive
activities. For the sake of facilitating management of related expenditures, the whole
programme management provision of the AGS Division is now included under
Programme 2.1.2, hence the increase under Sub-programme 2.1.2.9 and corresponding
decrease under Sub-programme 2.1.5.9.

66. Sub-programmes 2.1.2.1, 2.1.2.2 and 2.1.2.3 have been reorganized in order to
bring them more in line with the work to be undertaken and sharpen attention to
sustainability issues linked to agricultural production. Sub-programmes 2.1.2.1, 2.1.2.2

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and 2.1.2.3, formerly respectively "Genetic Resources", "Crop Improvement and
Management" and "Seeds" are proposed to be retitled "Conservation and Management
of Genetic Resources", "Crop Management and Diversification" and "Seed Production
and Plant Improvement".

67. The proposed shifts between or within the various technical sub-programmes
concern in particular: regrouping of all activities on information exchange on seeds and
plant genetic resources in Sub-programme 2.1.2.3 under a single programme element;
regrouping of activities in Sub-programme 2.1.2.1 on in situ and ex situ conservation and
evaluation and monitoring of use of plant genetic resources; the redistribution of
resources on training and information on seed improvement to other programme
elements within the Seed Programme; an increase in resources in Sub-programme
2.1.2.4 (US$ 320 000) to provide for the Secretariat of the International Plant Protection
Convention (IPPC) and information exchange on the Prior Informed Consent (PIC)
clause; and a decrease in resources for migratory pest control activities to reflect
transfer of regional responsibilities for locust control from the field to headquarters (and
abolition of outposted staff positions).

68. The overall resource levels of the two sub-programmes implemented by the AGS
Division (2.1.2.5 and 2.1.2.6) are reduced. Whilst emphasis is given to the identification
of technology alternatives and human resources development, other activities have been
reduced and resources are shifted to Sub-programme 2.1.2.8 to permit greater support
to field activities in the area of food losses prevention. Demand for assistance in
apicultural development has decreased, but this is partly compensated by new activities
geared towards value-added applications of natural fibres and the development of small-
scale industrial facilities for processing of agricultural products.

Sub-programme 2.1.2.1: Conservation and Management of Plant Genetic Resources

69. The sub-programme aims at ensuring safe conservation, promoting rational
utilization and facilitating exchange of plant genetic resources and related information
and technologies. As approved by its Governing Bodies, FAO's global system on plant
genetic resources encompasses three major elements: (i) a formal framework, the
International Undertaking on Plant Genetic Resources; (ii) an intergovernmental
forum, the Commission on Plant Genetic Resources; and (iii) a financial mechanism,
the International Fund for Plant Genetic Resources. These elements cover both ex situ
and in situ conservation, management and use of agriculture and forestry plant genetic
diversity. In line with the principles outlined in the International Undertaking, the sub-
programme will pursue further development and implementation of the global system,
viz. the establishment of an Advisory Committee and the preparation of a Global Plan
of Action. In these actions, FAO will fully cooperate with other organizations involved
with plant genetic resources.

70. The former programme elements on Support to Member Countries on Plant
Genetic Resources and Training on Plant Genetic Resources are to be converted into three
new elements entitled Ex Situ Conservation and Networking, In Situ Protected Areas and
Networking and Evaluation and Monitoring of Use of Plant Genetic Resources for

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Sustainable Agricultural Development. The former programme element, Information on
Plant Genetic Resources will be merged with the Seed Information System. These
information activities (US$ 268 000) have therefore been transferred to one consolidated
programme element in Sub-programme 2.1.2.3.

71. Changes at programme element level:

Programme Elements 1990-91 Programme 1992-93
Budget Change Budget
01 Commission on Plant Genetic Resources 631 31 662
02 Support to Member Countries on Plant 414 (414) 0
Genetic Resources
03 Training on Plant Genetic Resources 204 (204) 0
04 Information on Plant Genetic Resources 268 (268) 0
05 'Ex Situ' Conservation and Networking 0 471 471
06 'In Situ' Protected Areas and Networking 0 31 31
07 Evaluation/Monitoring of Use of Plant 0 349 349
Genetic Resources for Sustainable
Agricultural Development
TOTAL 1 517 (4) 1 513

Sub-programme 2.1.2.2: Crop Management and Diversification

72. The overall resource level had to be slightly reduced. The focus is on the
provision of information, advice and technical assistance to member countries on the
production of staple food crops cereals, grain legumes, roots and tubers, bananas and
plantains, fruits and vegetables as well as on export-earning industrial crops. Aspects
of sustainability of production systems, diversification as well as training, will be
addressed throughout the corresponding elements. Attention will be given to improving
productivity of many presently under-utilized crops of importance to resource-poor
farmers.

73. It is proposed to establish two new posts at P-3 level, through internal shifts in
resources. One post will contribute to strengthening activities on sustainable agricultural
practices, especially for grain and oil legumes. This post will also cover biotechnology
developments for these crops. The second post is to promote activities on agro-forestry.
Agro-forestry will be particularly addressed in the programme element Major Industrial
Crops and Mixed Perennial Cropping Systems, which will absorb the earlier element on
Alternatives to Shifting Cultivation. A new programme element is established for plant
breeding work to provide the necessary link with other sub-programmes.

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74. Changes at programme element level:

Programme Elements 1990-91 Programme 1992-93
Budget Change Budget
01 Development of Grain and Oilseed 516 (116) 400
Legumes
02 Improvement of Cereal Crops 1 197 (69) 1 128
03 Improvement and Intensification of 417 (124) 293
Vegetable Production
04 Promotion of Root and Tuber Crop 393 (43) 350
Production and Improvement for Small
Farmer Holdings
05 Development of Fruit Production 636 23 659
06 Crop Diversification and Intensification of 383 (124) 259
Mixed Cropping Systems
07 Major Industrial Crops &,Mixed 511 296 807
Perennial Cropping Systems
08 Alternatives to Shifting Cultivation 183 (183) 0
09 Industrial Crop Diversification, Illicit 196 0 196
Drug Crops Substitution and
Development of Under-utilized Plants
10 Promotion of Plant Biotechnologies 440 3 443
11 Policies for Sustainable Production 33 (33) 0
Systems
12 Improvement of Plant Breeding Methods 0 137 137
and their Application
TOTAL 4 905 (233) 4 672

Sub-programme 2.1.2.3: Seed Production and Plant Improvement

75. The sub-programme will continue to support the Special Action Programme on
Seed Improvement and Development which is attracting steady extra-budgetary funding.
Programme element 02 now combines the Seed Information System and information on
plant genetic resources. The sub-programme will continue to assist member countries
in formulating national seed policies and programmes. On-farm seed production remains
an important activity which receives additional resources. The activities previously
included under the programme element Training and Information on Seed Improvement

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have been integrated with other programme elements. This
as lack of attention to training, which forms an integral part

should not be interpreted
of all crops programmes.

76. Changes at programme element level:

Programme Elements 1990-91 Programme 1992-93
Budget Change Budget
01 Seed and Planting Material Introduction 497 (188) 309
and Exchange
02 Information Systems on Seed & Plant 418 467 885
Genetic Resources
03 Strengthening of National Seed 1 153 (36) 1 117
Programmes
04 Training and Information on Seed 774 (774) 0
Improvement
05 Improved On-farm Seed Production 296 147 443
TOTAL 3 138 (384) 2 754

Sub-programme 2.1.2.4: Crop Protection

77. Changes at programme element level:

Programme Elements 1990-91 Programme 1992-93
Budget Change Budget
01 Implementation of the International Plant 976 407 1 383
Protection Convention
02 Integrated Pest Management 1 421 (6) 1415
03 Pesticide Management 1269 287 1556
04 Migratory Pest Control 1 298 (217) 1 081
05 Strengthening Plant Protection 711 (151) 560
Infrastructures
TOTAL 5 675 320 5 995

78. In line with the recommendations of the Twenty-fifth FAO Conference, it is
proposed to establish a Secretariat of the International Plant Protection Convention
(IPPC) and to strengthen activities on information exchange in relation to the Prior
Informed Consent (PIC) clause of the International Code of Conduct on the Distribution

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and Use of Pesticides. This will require two new posts, a P-5 Coordinator of the
International Plant Protection Convention, and a P-3 Pesticide Information Officer.

79. A number of hitherto small programme elements have been consolidated in one
element dealing with Integrated Pest Management. The substantial field activities
associated with this programme element will require backstopping and further project
and programme development.

80. The programme element on Migratory Pest Control will continue to support
intergovernmental coordination, provide assistance in emergency situations and keep a
watch on locust and grasshopper infestations. Improved international communications
have resulted in a decreased requirement for regional and decentralized locust
information centres. A P-5 post and two General Service posts can be abolished, leading
to the net reduction of US$ 217 000.

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

81. Changes at programme element level:

Programme Elements 1990-91 Programme 1992-93
Budget Change Budget
01 Action Programme for the Prevention of 949 (204) 745
Food Losses
02 Agricultural Engineering Information 788 80 868
Exchange
03 International Cooperation and Liaison for 404 (135) 269
Agricultural Engineering
04 Input Management Related to 418 (35) 383
Agricultural Engineering
05 Alternative Technologies in Agricultural 416 25 441
Engineering and Improved Project Design
06 Training on Agricultural Engineering 172 68 240
Applications
TOTAL 3 147 (201) 2 946

82. Work on agricultural engineering, which was reorganized during the present
biennium to reflect the need for integrating engineering inputs with other agricultural
support services, will give priority to information exchange and dissemination, to which
more resources are allocated. An information exchange system which should
complement existing international, regional and national systems will be further
developed. Planning for the management of inputs in agricultural mechanization
schemes, storage and farm buildings will remain important to ensure that increasingly

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sophisticated technology is used according to the development objectives and farming
systems of the country.

83. Activities for the prevention of food losses will aim at consolidating progress in
the promotion and development of sustainable national post-harvest programmes. A
multi-disciplinary post-harvest systems approach will be followed. Project development
related to staple food commodities such as foodgrains and root crops, will continue, while
coverage of fruits and vegetables will be further expanded. Special consideration will be
given to the role of women, to environmental issues related to the use of pesticides and
to the role of NGOs and the private sector.

Sub-programme 2.1.2.6: Food and Agricultural Industries

84. The development of viable rural agro-industries will be pursued to permit
farmers to expand income opportunities beyond subsistence farming. The sub-
programme will focus on the development of new technologies and the upgrading of
traditional processes. In the food sector, emphasis will be put on the development of
marketable convenience foods based on indigenous crops, such as wheatless bread, and
improved processing of roots, tubers, cereals, oil seeds and legumes. Particular attention
is also to be given to increasing value-added in the processing of fruits, vegetables and
spices. In the non-food sector, activities will concentrate on natural fibres and sericulture
as well as industrial applications such as starch from roots or cereals for use in paper
production. The use of emerging technologies such as fermentation and residue
treatment will continue to receive attention.

85. Changes at programme element level:

Programme Elements 1990-91 Programme 1992-93
Budget Change Budget
01 Food Processing and Handling including 557 (28) 529
Indigenous and Composite Flours
02 Processing of Medicinal Plants, Spices 141 (1) 140
and Aromatics
03 Apiculture 239 (95) 144
04 Hides and Skins and Animal By-products 134 (3) 131
05 Natural Fibres including Sericulture 278 33 311
06 Agricultural Processing for Industrial 144 51 195
Applications
07 Process Biotechnology 260 4 264
08 Private Sector Development 152 (12) 140
TOTAL 1 905 (51) 1 854

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Sub-programme 2.1.2.7: Regional Offices

86. Africa: RAFR will continue to cooperate with national research/extension
institutions on the design and implementation of on-farm trials/demonstrations, dealing
with important cereals, root and oil crops. The weaknesses of national plant protection
structures throughout the region and the insufficient response capability of the regional
pest monitoring and control organizations, will require the implementation of corrective
measures. There is also an increase in the use of chemical pesticides on both cash and
food crops, without the necessary control mechanisms to minimize their harmful effects
on humans and the environment. RAFR will, therefore, give priority to the promotion
and effective application of Integrated Pest Management and the application of the
International Code of Conduct on the Distribution and Use of Pesticides through country
surveys, especially in Eastern and Central Africa. The formulation and implementation
of realistic plans for phytosanitary control and plant quarantine in the context of external
trade, will be pursued.

87. Asia and the Pacific: Increased yields of major crops, especially under rainfed
conditions, will be sought through the active promotion of location-specific packages of
selected crop varieties and management practices. A regional expert consultation will
be held to assess the current situation and prospects of sustainable crop production under
different agro-ecological settings. Trends in crop diversification will be analyzed and
documented and experiences shared amongst countries of the region. A regional training
workshop on breeding and improvement of medicinal and aromatic plants will be
organized. The regional TCDC project on coarse grains and legumes will be further
backstopped. Activities on root and tuber and horticultural crops are planned for the
benefit of the Pacific Island states. Regional networks on vegetables, oilseed crops,
cotton with emphasis on hybrid cotton, and rainfed agriculture will be serviced through
information collation and exchange. Conservation, utilization and exchange of
germplasm will also be promoted. The status and prospect of production, distribution
and supply of quality seeds, including planting materials of vegetatively propagated crops,
will be analyzed through a regional expert consultation.

88. RAPA will continue to provide secretariat services to the Asia-Pacific Plant
Protection Commission (APPPC), and issue technical bulletins and the APPPC Quarterly
Newsletter. Activities on integrated pest management will be promoted through expert
consultations on biological control of plant diseases and on the role of biotechnology in
pest management. The development of harmonized plant quarantine
procedures/treatment will be pursued. A regional workshop will be held on the safe and
efficient use and distribution of pesticides. The needs in the South Pacific Islands for
appropriate mechanization will be explored through a regional Expert Consultation on
the Establishment of a Network for Agricultural Tools and Implements in the Pacific
Islands. A regional Expert Consultation on a Network for Education and Curriculum
Development in Agro-industries will also be convened while support to member
countries will continue in the areas of prevention of food losses and post-harvest
technology.

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89. Europe: REUR will support joint research programmes and exchange of
information and germplasm through the activities of the existing cooperative research
networks and/or working groups on olives, soybean, sunflower, maize, cotton, rice, nuts,
flax and mushrooms. Prospects for research cooperation on the industrial use and
development of potatoes and the potential of new small crops in European agriculture
will be studied at ad hoc meetings. Three technical consultations of the networks on
soybean, cotton and rice and several workshops will be organized in the 1992-93
biennium.

90. Latin America and the Caribbean: The Technical Cooperation Network on
Food Crops Production will be the main channel for TCDC activities concerning genetic
improvement and production of vegetable crops, including training of national experts
through sub-regional training courses, strengthening of ongoing projects on applied
breeding research, exchange of germplasm, national and regional varietal trials and seed
production. In 1990-91, RLAC also initiated support to regional cooperation on the
development and application of plant biotechnology, inter alia through a regional survey
and the launching of a Technical Cooperation Network among plant biotechnology
laboratories, jointly with AGP. In 1992-93, this will be pursued through assistance in the
formulation of national and regional biotechnology policies, comprising biosafety,
patenting and a code of conduct, together with training activities. A regional meeting
on plant biotechnology will be held in 1993 to discuss a draft Action Plan to be proposed
to governments of the region.

91. A Technical Cooperation Network on Citrus Fruits will cover aspects of
utilization and conservation of genetic resources, applied biotechnology, production of
propagation material, production technology, agro-industry and marketing. Assistance
to Central American countries will receive particular attention. Although of a lesser
priority, joint activities with AGP will be undertaken in support of research and
development of Mediterranean rice, of the global network on soybean, of the
FAO/Netherlands project on Andean crops and of the development of roots and tubers
in the Caribbean.

92. With regard to plant protection, the implementation of the International Plant
Protection Convention will be further supported with attention to sanitary and
phytosanitary regulations in trade of food and agricultural products. Support to the
Caribbean Plant Protection Commission and corresponding assistance in plant
quarantine, will also continue. Sound practices for application of pesticides at the level
of small producers will be the subject of promotional and technical material and training
courses. Support will be maintained to regional technical cooperation groups for
improved weed management, sugar cane sanitation, citrus protection, cotton pest
management, rodent control, as well as the control of fruitfly. The Technical
Cooperation Networks on Post-harvest Grain Technology, Tropical Fruits Processing and
African Oil Palm will enable RLAC to assist agro-industrial development in the region.

93. Near East: Cooperation will be pursued with regional and international research
centres such as ICARDA, ACSAD and CIMMYT. Aspects of sustainability of

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agriculture, women participation and protection of the environment will be given due
attention in the formulation and implementation of crop improvement activities.

94. Plant protection activities will be geared to reducing pre- and post-harvest crop
losses caused by pests through the provision of technical support and the coordination
of regional plant protection activities and information exchange. FAO's sponsored
instruments such as the International Plant Protection Convention and the International
Code of Conduct on the Distribution and Use of Pesticides, will be further promoted.
Contacts will be pursued towards establishing a Regional Cooperative Network of
National Institutions for Agro-industrial Development in the Near East Region.
Assistance is planned on apiculture, sericulture and small-scale agro-processing industries
in rural areas.

Programme 2.1.3: Livestock

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

Sub-Programmes 1990-91 Programme 1992-93
Budget Change Budget
2.1.3.1 Grassland, Forage and Feed 2 014 48 2 062
Resources
2.1.3.2 Animal Health 5348 (575) 4773
2.1.3.3 Genetic Resources 946 (102) 844
2.1.3.4 Dairy Development 1 007 182 1 189
2.1.3.5 Meat Development 1 247 54 1 301
2.1.3.6 Livestock Production 1 581 43 1 624
2.1.3.7 Regional Offices 3 177 (205) 2 972
2.1.3.8 Field Programme Support 2 397 (113) 2 284
2.1.3.9 Programme Management 1 091 53 1 144
TOTAL 18 808 (615) 18 193

96. Livestock accounts for a quarter of agricultural output in the developing
countries and half of the output in the developed world. The development process leads
to an increase in the proportion of animal products in food demand. There is therefore
scope for faster expansion of the livestock sector as against other agricultural activities.
Livestock, in addition, makes a key socio-economic contribution providing farmers with
an element of financial security, cash for inputs to stimulate crop production, essential
energy inputs for many crop systems, and enhanced economic opportunities for
disadvantaged groups in rural societies, particularly women. The programme is

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implemented in collaboration with the related International Agricultural Research
Centres.

97. 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 technical sub-
programmes.

98. The resources proposed to be allocated to the programme have to be reduced.
Nevertheless, priority is being given to sustainability in animal production in the
developing countries, under the various sub-programmes. 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, including the Screwworm
Eradication Campaign in North Africa (SECNA), 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, including the application of biotechnology (Sub-programme
2.1.3.3);

S further support to dairy and meat development through the establishment
of village processing facilities for smallholders (Sub-programmes 2.1.3.4 and
2.1.3.5); and

promotion of small and large ruminant production, as well as poultry and
rabbit and other small animal production, including the promotion of
strategies for sustainable livestock development (Sub-programme 2.1.3.6).

Sub-programme 2.1.3.1: Grassland. Forage and Feed Resources

99. New activities are included to expand the feed base for poultry, pigs and other
monogastric animals. Regional technical task forces are being supported for the
introduction of molasses blocks, treatment of low quality roughages and the use of sugar
cane juice for monogastric animal feeding. These technologies will be widely
disseminated, building on the competence acquired by these regional task force
members.

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100. Through shifts within the sub-programme, an existing programme element on
feeding systems and feed security has been expanded and renamed. It will focus on
developing and promoting economical feeding systems primarily based on local
feedstuffs. The element will include information activities including country-wide feed
inventories. Current work on strategic feed supplementation will be extended to cover
feeding of monogastric animals, especially pigs.

101. Results of biotechnology applied to animal nutrition will be evaluated and
technologies relevant to the developing countries' situations will be pursued, relying
mainly on extra-budgetary resources.

102. The AGP Division will continue activities on the improvement of grassland and
pasture crops in various agro-ecological conditions as an essential factor in animal
production systems, particularly in relation to their long-term sustainability.

103. Changes at programme element level:

Programme Elements 1990-91 Programme 1992-93
Budget Change Budget

01 Integrated Management of Arid and 455 (10) 445
Semi-arid Grazing Resources (EMASAR)
02 Development of Pastures in Humid Areas 414 (10) 404
03 Biological Nitrogen Fixation 140 0 140
04 Feed Resources Utilization 642 (194) 448
05 Feeding Systems and Feed Security 231 (231) 0
06 Sustainable Feeding Systems 0 493 493
07 Application of Biotechnology in Animal 132 0 132
Nutrition
TOTAL 2014 48 2062

Sub-programme 2.1.3.2: Animal Health

104. The overall budget provision has been reduced mainly with regard to work on
infectious diseases and biotechnology, but will still permit more resources to be
channelled to the control of parasitic diseases. Work on disease intelligence will
continue to include collecting and disseminating data on disease occurrence and control,
through FAO's animal health data bank, and the FAO/WHO/OIE Animal Health
Yearbook. Assistance to veterinary services in developing countries will focus on training
in management and economic aspects. Attention will also be given to nutritional,
reproduction and genetic diseases and animal production hygiene.

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105. Activities on infectious disease control will continue to give priority to diseases
of major economic and sanitary importance. Emergency diseases such as rinderpest and
foot-and-mouth disease and zoonosis diseases such as brucellosis and rabies will also be
addressed. In the field of parasitic diseases, action will concentrate on ticks and tick-
borne diseases, as well as selected helminthic diseases particularly those transmissible
to man.

106. A major activity will be the screwworm eradication campaign in North Africa
largely supported by extra-budgetary resources and screwworm monitoring in the world.
New improved methods will be applied in controlling tsetse and trypanosomiasis.

107. Biotechnology activities in animal health will be oriented to the transfer of new
methods in vaccine production and disease diagnosis to developing countries.

108. Changes at programme element level:

Programme Elements 1990-91 Programme 1992-93
Budget Change Budget
01 Disease Intelligence/Veterinary Services 1 427 (120) 1307
Development
02 Control of Infectious Diseases 1 546 (270) 1276
03 Control of Parasitic Diseases 597 121 718
04 Control of Insect Vector Diseases 1 246 (112) 1 134
05 Application of Biotechnology in Animal 532 (194) 338
Health
TOTAL 5 348 (575) 4 773

Sub-programme 2.1.3.3: Animal Genetic Resources

109. Changes at programme element level:

Programme Elements 1990-91 Programme 1992-93
Budget Change Budget
01 Application of Biotechnology in Animal 365 (140) 225
Breeding and Genetics
02 Utilization of Animal Genetic Resources 333 (1) 332
03 Preservation of Endangered Indigenous 248 39 287
Breeds
TOTAL 946 (102) 844

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110. This sub-programme includes activities on crossbreeding, selection and other
methods of genetic improvement. The FAO Semen Donation Scheme and work on
improved reproduction management will aim at increased output per animal and genetic
improvement for future generations.

111. The application of biotechnology to genetic improvement will be pursued,
particularly with respect to embryo manipulation. However, the allocation for the
corresponding element can be reduced in view of the availability of extra-budgetary
support to the livestock biotechnology networks.

112. The programme element on the preservation of endangered indigenous breeds
has been reformulated, taking account of the recommendations of the Committee on
Agriculture. In situ conservation of breeds is to be added to existing activities on data
banks and gene banks. Additional data from developing countries will be collected for
this purpose. Surveys will be carried out to evaluate specific country needs for the
preservation of animal genetic resources and projects prepared accordingly. Cooperation
will continue with regional and international organizations active on biodiversity matters.

Sub-programme 2.1.3,4: Dairy Development

113. Changes at programme element level:

Programme Elements 1990-91 Programme 1992-93
Budget Change Budget
01 Integrated Dairy Development 578 (7) 571
02 Promotion and Improvement of 203 65 268
Technology of Traditional Dairy Products
03 Code of Principles on Milk and Milk 39 (21) 18
Products
04 Dairy Training and Education 187 145 332
TOTAL 1 007 182 1 189

114. The promotion of integrated dairy development projects will continue, with
emphasis on the participation of small-scale milk producers. Model units for milk
processing at village level have been developed and will be refined and replicated. The
management and economic aspects of milk promotion, collection, processing and
distribution will also receive attention. A special technical information service to
member countries on milk/milk products technology and control will be initiated.
Publications are planned on specific aspects of the dairy industry.

115. A net increase is proposed for the promotion of improved technology at village
level focusing on traditional milk products, in particular from sheep, goat and camel
milk. Livestock/dairy training activities will continue to concentrate on institution

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building, training of teachers and encouraging the participation of women in
development.

Sub-programme 2,1.3.5: Meat Development

116. Changes at programme element level:

Programme Elements 1990-91 Programme 1992-93
Budget Change Budget
01 Meat Technology and Hygiene 786 (53) 733
02 Meat Training and Education 461 107 568
TOTAL 1 247 54 1 301

117. The two components on meat technology/hygiene and training and education are
kept at approximately the same levels. Work on meat hygiene and inspection will aim
at the establishment of small to medium-sized slaughter and meat processing facilities
for different kinds of animal species (including poultry). Model units for meat and by-
products processing and marketing, in particular at village level, will be further adapted
to the needs of particular communities. In this context, environmental problems and the
handling of animals prior to slaughter will be addressed. Appropriate methods and
suitable equipment for low-cost meat preservation methods are being tested and will be
further developed.

118. A technical information service to member countries on meat/meat products
development, technology and sanitary control will be introduced, to meet substantial
requirements for information in developing member countries. Meat training and
education activities will be continued, particularly through field activities.

Sub-programme 2.1.3.6: Livestock Production

119. Changes at programme element level:

Programme Elements 1990-91 Programme 1992-93
Budget Change Budget
01 Animal Production Systems 1335 (235) 1 100
02 Application of Biotechnology in Livestock 246 (246) 0
Production
03 Strategies for Sustainable Livestock 0 524 524
Development
TOTAL 1581 43 1624

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120. Work on animal production systems is centred on developing practical
technologies for sustained growth in animal production without affecting the natural
resource base, especially in prevailing smallholder farming systems. Multipurpose use
of animals will be promoted taking account of their bio-energetic efficiency and
opportunities for integration of animal and crop production. This will involve
development and demonstration of simple "one-step" technologies that can be integrated
into existing farming systems.

121. A new element has been introduced on strategies for sustainable livestock
development which will cover core activities of analysis of policy issues in the livestock
sector and project formulation, implementation, monitoring and evaluation, as a common
framework for planning and sustainable livestock production. Criteria, indicators and key
production parameters will be established in relation to sustainability of livestock
production systems. Activities will also include the formulation of breeding policies and
the rational evaluation of national objectives in direct reference to effective local feed
supply situations, infrastructural support and market demands. Biotechnology activities
have been transferred to Sub-programmes 2.1.3.1 and 2.1.3.3.

Sub-programme 2.1.3.7: Regional Offices

122. Africa: More refined data will be assembled on the tsetse/trypanosomiasis
problem, e.g. base line information in production parameters so that the benefits of
control activities are more accurately assessed and quantified. Further studies will be
undertaken to determine the comparative efficiency of various control devices against
different tsetse species. Control of trypanosomiasis requires more effective management
structures and national research systems in the region. Thus, RAFR will promote the
establishment of national research control systems and coordinating committees.

123. The threat to livestock from the New World Screwworm Fly will be closely
monitored in close cooperation with the Screwworm Emergency Centre for North Africa
(SECNA). Cooperation will also be strengthened with ILCA to promote alley farming
in sub-humid and humid zones of Africa. Other activities in the next biennium will
include the development of technical cooperation networks on small ruminants, camels,
veterinary laboratories, low-cost meat preservation technologies, poultry and pig;
sustainable agriculture through alley farming; intensive feed garden, fodder banks and
the utilization of agro-industrial by-products in animal feeding and the development of
indigenous breeds, such as Kuri cattle and guinea fowls.

124. Asia and the Pacific: RAPA will coordinate the South Asian Rinderpest
Eradication Campaign through close liaison with the Regional Coordination Unit and
ad hoc consultative meetings. A regional Expert Consultation on Animal Quarantine
Regulations will be convened. Assistance will continue to be provided for the upgrading
of native cattle and buffaloes, using germplasm of regional origin. Other methods,
particularly those involving biotechnology, will be further explored. Technical support,
through expert consultations and workshops, will be provided for increased meat and
dairy production with particular emphasis on price surveys and improvement of
indigenous products. Promotion of milk collection through cooperatives will continue.

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The Regional Animal Production and Health Commission for Asia and the Pacific
(APHCA) will continue to operate on TCDC principles. The monthly publication "Asian
Livestock" will remain an important source of information on livestock industry
development in the region.

125. Europe: The cooperative research networks on pastures and fodder crops, on
sheep and goat production and on animal production systems, will hold several
workshops in the biennium. Prospects for research cooperation in the field of applied
biotechnology in animal breeding and health protection will be further examined at
meetings of working groups of existing networks. All networks will publish their
achievements in a new series of technical bulletins. Participation of research institutions
from North America and the Mediterranean region will be further encouraged.

126. Latin America and the Caribbean: RLAC will make use of the methodology
developed through the Technical Cooperation Network among Veterinary Research and
Diagnostic Laboratories in the identification of institutions capable of providing
reference services in the area of animal health. Advanced technologies in all aspects
related to animal production and health will be transferred to these reference services
through the Network on Animal Biotechnology supported by AGA. Interregional
consultations will be held to define longer-term cooperation arrangements in all
livestock-related disciplines. A technical manual on "Milk Production in the Tropics" will
be produced and cover scientific knowledge and technology available in the region. A
Technical Cooperation Network on Livestock Production Systems for Small Farmers will
be set up. The Caribbean Network of Cooperation in Small Animal Development will
continue to foster joint activities in the Caribbean area. Work on the development of
South American Camelids, initiated during the 1990-91 biennium, will continue.

127. Near East: Member Governments of the region require assistance on range
rehabilitation and pasture development, particularly on management techniques and on
evaluation and propagation of native forage species. Sub-regional and regional projects
based on an integrated approach to rangeland management will be developed, as well
as disease control programmes, through inter-country cooperation within particular
epizootiological zones in the region. The present regional projects on animal health and
rinderpest eradication will be further supported. The Near East Regional Cooperative
Research and Development Network on Small Ruminants will retain high priority.

Programme 2.1.4: Research and Technology Development

128. The generation, adaptation and application of technologies which are suitable
to local conditions are an essential component for sustainable food and agricultural
production. Aspects of research and technology development permeate most activities
of the Organization. Programme 2.1.4 provides for in-house coordination and general
support for work in key areas, i.e. research development, remote sensing and
agrometeorology and environment, energy and sustainable development. The
programme is mainly of an interdisciplinary nature and complements related programmes
throughout the Organization.

A/35

129. Responsibility for the implementation of Sub-programmes 2.1.4.1, 2.1.4.4, 2.1.4.8
and 2.1.4.9 rests with the Research and Technology Development Division (AGR) while
the responsibility for Sub-programme 2.1.4.5 is shared between AGR and the Office of
the Special Adviser to the Director-General/Assistant Director-General for Environment
and Sustainable Development (ODG). 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 activities of Regional Offices and
Joint Divisions under the programme.

130. The Andr6 Mayer Fellowships Programme, implemented by the Agriculture
Operations Division (AGO), was previously shown under Chapter 3. In view of its direct
contribution to research development, it is proposed to transfer it to this programme as
a separate element of Sub-programme 2.1.4.1. The relevant interdepartmental working
group will continue to review proposals for research topics in the light of Regular
Programme priorities and the advice of the Technical Advisory Committee (TAC) will
also be sought.

131. Provision (in US$ '000) for individual
following table:

sub-programmes are shown in the

Sub-Programmes 1990-91 Programme 1992-93
Budget Change Budget
2.1.4.1 Research Development 3 586 (312) 3 274
2.1.4.2 Agricultural Applications of Isotopes 3 432 (4) 3 428
and Biotechnology
2.1.4.3 AGRIS, CARIS and Field 4 614 1419 6 033
Documentation Activities
2.1.4.4 Remote Sensing and 2 116 (11) 2 105
Agrometeorology
2.1.4.5 Environment, Energy and 1 773 1 535 3 308
Sustainable Development
2.1.4.7 Regional Offices 1 097 45 1 142
2.1.4.8 Field Programme Support 733 0 733
2.1.4.9 Programme Management 1 299 0 1 299
TOTAL 18 650 2 672 21 322

132. As directed by Resolution 3/89, adopted by the Twenty-fifth Session of the FAO
Conference, work on environment and sustainable development will be considerably
strengthened. In addition, continued attention will be given to technology transfer and
assessing the impact of climate change.

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133. In broad terms, the programme covers:

integration of environment and sustainability considerations into agriculture
and rural development, including intensifying and coordinating inter-
disciplinary activities, close cooperation with other organizations and
further incorporation of environmental impact assessments in FAO's work;

support to national agricultural research systems, particularly in research
policy, planning and management, and furthering technology transfer and
international research cooperation;

support to international research in agriculture, fisheries and forestry by
contributing to the determination of CGIAR priorities, strategies and
resource allocations and through assessment of the relevance and quality
of the international centres' programmes;

strengthening the capabilities of developing countries in the applications of
remote sensing for the assessment of natural resources and the monitoring
of environmental conditions;

agrometeorological crop monitoring and forecasting to support early
warning systems of food shortages and assessing the potential impact of
climate change; and

assisting countries in energy policy formulation and planning and energy
technology development for rural areas.

Sub-programme 2.1.4.1: Research Development

134. The same structure of programme elements will be maintained in 1992-93, except
for the addition of a new programme element to cover the Andr6 Mayer Fellowships
(previously Programme 3.3.2). However, the proposed shifts between elements respond
to evolving priorities, as many developing countries continue to encounter problems in
the effective adaptation and application of new and emerging technologies. The element
on Technology Assessment and Transfer, will step up assistance to member countries and
monitor relevant biotechnology development. The gender aspects in technology transfer
will be given due consideration.

135. This increase in resources is made possible by the completion of research
management training materials and the one-time cost of an expert consultation on the
role of universities in national agricultural research systems. Work related to advisory
support to national agricultural research systems and the FAO contribution to the
Technical Advisory Committee (TAC) of the CGIAR will be maintained at
approximately the same level.

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136. For the sake of economy, the provision for the Andr6 Mayer Fellowships is
proposed to be substantially reduced. The remaining provision should still permit the
awarding of three to four fellowships in the 1992-93 biennium.

137. Changes at programme element level:

Programme Elements 1990-91 Programme 1992-93
Budget Change Budget
01 Strengthening Research Management 393 (53) 340
Capabilities
02 Research Review Missions and Advisory 364 0 364
Services
03 Technology Assessment and Transfer 498 47 545
04 Research Policy, Planning and 560 (105) 455
Information
05 International Agricultural Research 1 257 0 1 257
Support
06 Science and Technology Coordination 81 0 81
07 Andre Mayer Fellowships 433 (201) 232
TOTAL 3 586 (312) 3 274

Sub-programme 2.1.4,2: A d

etoiB chnology

138. The Joint FAO/IAEA Division of Nuclear Techniques in Food and Agriculture,
located in Vienna, Austria, will continue to address a broad range of agricultural
problems in developing countries.

139. The major shifts introduced in the present biennium will be consolidated by
further strengthening various applications of molecular biology and other biotechnologies
where the use of isotopic tracers is essential. Only minor adjustments are made for the
1992-93 biennium. Programme element 07 will be concerned with global and
interdisciplinary matters.

140. A planned reduction in work on nitrogen fixation by annual crops will be
compensated by new programmes on nitrogen fixing trees and prevention of soil
salinization. A reduction is also foreseen on plant breeding on cereals in favour of
oilseeds and less work on the development of diagnostic tests for livestock diseases and
more work on livestock feeding strategies. Work on Medfly trapping technology will be
concluded, work on isotope-aided molecular biology and genetic engineering for the
improvement of insect control technologies will continue, as well as support to the
screwworm eradication programme. Monitoring of pesticide residues in food and the
environment will put emphasis on controlled-release formulations to reduce cost and

A/38

environmental contamination. Attention on radionuclide contamination of the
agricultural environment can be reduced. Guidelines for national food irradiation
regulations will be developed and demonstrations carried out of irradiation effectiveness
against the incidence of food-borne parasites and pathogens. There will be a shift
towards demonstrating techno-economic feasibility of food irradiation in developing
countries and irradiation of high quality refrigerated foods.

141. Changes at programme element level:

Programme Elements 1990-91 Programme 1992-93
Budget Change Budget
01 Soil Fertility, Irrigation and Crop 344 (1) 343
Production
02 Plant Breeding and Genetics 507 (1) 506
03 Animal Production and Health 498 (1) 497
04 Insect and Pest Control 744 0 744
05 Agrochemicals and Residues 639 0 639
06 Food Preservation 286 (1) 285
07 Agricultural Applications of Molecular 414 0 414
Biology
TOTAL 3 432 (4) 3 428

Sub-programme 2.1.4.3: AGRIS. CARIS and Field Documentation Activities

142. The AGRIS and CARIS networks are now composed of 165 and 125
participating centres respectively. FAO's own input to AGRIS will continue to cover
publications and documents generated at Headquarters and in field projects, as well as
relevant documents produced by other UN agencies. The production and distribution
of AGRIS data on compact disc will be pursued and further developed for the benefit
of all users, particularly in developing countries. Advanced technology, including
microcomputers and telecommunications networks, will be used to improve
communications with participating centres, speed processing, improve flexibility, reduce
unit costs and generate more user-friendly output. Training activities will make use of
computer-assisted courses and distance-learning. Extra-budgetary resources will be
sought to meet increased requirements for training missions and workshops. Advice and
technical assistance will continue to be provided on request to member countries to set
up or strengthen their agricultural documentation centres.

143. A substantial shift of resources is made from Programme 5.1.2 to Sub-
programme 2.1.4.3, both implemented by the GIL Division, to regroup all divisional
activities of a technical nature in one sub-programme, thereby also contributing to the
rationalization of the workflow in the division.

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144. Changes at programme element level:

Programme Elements 1990-91 Programme 1992-93
Budget Change Budget
01 Coordination of AGRIS and CARIS 808 (55) 753
Participating Centres
02 Strengthening of AGRIS and CARIS 638 (91) 547
Centres
03 Systems Development and Maintenance 655 350 1 005
04 AGRIS Data Base Maintenance, Outputs 1 865 1 199 3 064
and Services
05 CARIS Data Base Maintenance, Outputs 169 184 353
and Services
06 Support to Documentation Projects 249 62 311
07 Systems Management 230 (230) 0
TOTAL 4614 1419 6033

Sub-programme 2.1.4.4: Remote Sensing and Agrometeorology

145. The transfer of the Agrometeorology Group to the AGR Division, effected in
1990-91, has greatly facilitated FAO's assessments of crop conditions through integration
of agrometeorological and remote sensing data. To better reflect FAO's technical work
on agrometeorology, it is proposed to break down the hitherto single element on
agrometeorology into three elements on Agrometeorological Crop Monitoring and
Forecasting, Agrometeorological and Agronomical Information and Databases, and Impact
of Climate Change. Work on the impact of climate change will keep its importance in
the context of sustainable production of food and agricultural products. Shifts in
resources are made to strengthen remote sensing education and training to compensate
for a foreseen reduction in extra-budgetary support and to provide for FAO's
participation in the International Space Year since FAO is the recognized focal point
within the UN system for the application of remote sensing to renewable natural
resources.

146. In order to accommodate the above changes, reductions will be made in remote
sensing support services and pilot action studies, where Trust Fund support is expected
to complement Regular Programme activities. Advantage is also being taken of the
completion of the automation of agrometeorology data processing and cataloguing of
reference information, to maintain services to users at current levels with lower cost.

A/40

147. Changes at programme element level:

Programme Elements 1990-91 Programme 1992-93
Budget Change Budget
01 Coordination of FAO Space Activities 145 19 164
02 Advisory Services on Space Applications 295 (25) 270
and Pilot Action Studies
03 Remote Sensing Education and Training 230 50 280
04 Information and Support Services 306 (55) 251
05 Satellite Monitoring of Environmental 411 0 411
Conditions
06 Agrometeorology 729 (729) 0
07 Agrometeorological Crop Monitoring and 0 220 220
Forecasting
08 Agrometeorological and Agronomical 0 275 275
Information and Databases
09 Impact of Climate Change 0 234 234
TOTAL 2 116 (11) 2 105

Sub-programme 2.1.4.5: Environment, Energy and Sustainable Development

148. Resolution 3/89 of the FAO Conference called on FAO to strengthen its
programmes for the protection of the environment and for the promotion of sustainable
development of agriculture, forestry and fisheries. In response to this Conference
directive, the Director-General has appointed a Special Adviser for Environment and
Sustainable Development with the rank of Assistant Director-General and placed FAO's
coordinating unit for these subjects under his direct supervision. The major additional
tasks requested by the Conference include: (i) enhanced interdisciplinary work to
ensure integration of environmental considerations in relevant FAO activities; (ii)
higher priority to prevention of environmental degradation; (iii) strengthened
cooperation with other organizations of the UN system in pursuing sustainable
development; and (iv) FAO active participation in the UN Conference on Environment
and Development and organization of a Joint FAO/UNEP meeting on sustainable
agriculture as part of the preparation for this conference. In addition, the coordinating
unit was given the responsibility for the organization in the 1990-91 biennium of the
FAO/Netherlands Conference on Agriculture and Environment. In order to undertake
these and other important tasks, two Professional posts and supporting General Service
posts were established on a temporary basis during 1990-91 and are now proposed to be
continued.

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149. The above expanded responsibilities have led to thorough restructuring of Sub-
programme 2.1.4.5. Firstly, the title is changed from "Environment and Energy" to
"Environment, Energy and Sustainable Development". Secondly, several programme
elements have been renamed and some new ones introduced as follows: (i) Preparation
and Follow-up of the UN Conference on Environment and Development; (ii) Follow-up
of the FAO/Netherlands Conference on Environment and Agriculture; (iii) Support to
Cross-sectoral Action on Environment and Sustainable Development; (iv)
Interdepartmental Coordination on Environment and Sustainable Development; (v) Inter-
agency Cooperation on Environment and Sustainable Development; (vi) Sustainability
Assessment; and (vii) Policy Guidance and Direction of Environmental and Sustainable
Development Activities.

150. The following new posts are budgeted under the sub-programme: ADG/Special
Adviser to the Director-General for Environment and Sustainable Development; P-5,
Senior Officer (Environment and Sustainable Development); P-3, Environmental
Officer, together with needed secretarial staff.

151. Additional non-staff resources will be mainly used to support cross-sectoral
actions, as identified by the Steering Committee and Interdepartmental Working Group
on Environment and Sustainable Development, particularly in the following areas:
integration of environment and sustainability considerations in FAO's policy advisory
services and planning assistance; biological diversity; climate change; agroforestry;
desertification; integrated coastal area management; and energy.

152. Resources for work on energy policy and planning and energy technology
development which are also integral components of sustainable development will remain
at about the same level.

A/42

	Front Cover
	Title Page
	Summary
	Table of Contents
	Director-general's introductio...
	Background
	Field programme
	Financial framework
	Programme framework
	Programme budget impact
	Cost increases
	Posts and other means of actio...
	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

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