• TABLE OF CONTENTS
HIDE
 Front Cover
 Title Page
 List of annexes
 Director-general's introductio...
 Programme framework
 Draft resolution for adoption by...
 Programme budget
 Introduction
 Programme structure
 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
 Chapter 8: Transfer to tax equalization...
 Annex 1: Programmes by region
 Annex 2: Budget by organizational...
 Annex 3: Appendices
 List of abbreviations
 Back Cover






Group Title: Director-General's program of work and budget for ...
Title: The Director-General's program of work and budget for 1990-91
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 Material Information
Title: The Director-General's program of work and budget for 1990-91
Series Title: Director-General's program of work and budget for ...
Alternate Title: Director-General's programme of work and budget for ..
Program of work and budget
Programme of work and budget
Physical Description: v. : ; 28 cm.
Language: English
Creator: Food and Agriculture Organization of the United Nations
Publisher: Food and Agriculture Organization of the United Nations
Place of Publication: Rome
Publication Date: 1990
Frequency: biennial
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Subject: Agriculture -- Periodicals   ( lcsh )
Food supply -- Periodicals   ( lcsh )
Genre: international intergovernmental publication   ( marcgt )
statistics   ( marcgt )
Periodicals   ( lcsh )
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General Note: Description based on: 1962/63.
General Note: Latest issue consulted: 1982-83.
General Note: Supplemented by annex vols. containing tables and charts <1972-1977>
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issn - 0426-7664

Table of Contents
    Front Cover
        Page i
    Title Page
        Page ii
        Page iii
    List of annexes
        Page iv
    Director-general's introduction
        Page v
        Page vi
        Page vii
        Page viii
    Programme framework
        Page ix
        Page x
        Page xi
        Page xii
        Page xiii
        Page xiv
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        Page liv
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    Draft resolution for adoption by the conference
        Page lvi
    Programme budget
        Page 1
        Page 2
    Introduction
        Page 3
        Page 4
        Page 5
        Page 6
    Programme structure
        Page 7
        Page 8
        Page 9
        Page 10
        Page 11
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    Chapter 1: General policy and direction
        Page 13
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    Chapter 2: Technical and economic programmes
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    Chapter 3: Development support programmes
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    Chapter 4: Technical cooperation programme
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    Chapter 5: Support services
        Page 239
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    Chapter 6: Common services
        Page 259
        Page 260
    Chapter 7: Contingencies
        Page 261
        Page 262
    Chapter 8: Transfer to tax equalization fund
        Page 263
        Page 264
    Annex 1: Programmes by region
        Page 265
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    Annex 2: Budget by organizational unit
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    Annex 3: Appendices
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    List of abbreviations
        Page 410
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    Back Cover
        Page 412
Full Text








PROGRAMME of KWOK

and BUDGET











FOOD AND AGRICULTURE
(F (ORGANIZATION
S OF THE UNITED NATIONS






C 89/3
July 1989
Twenty-fifth session
11-30 November 1989


The Director-General's
PROGRAMME OF WORK
and
BUDGET
for
1990-91


FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS
Rome, 1989










- iv -


Page

ANNEX I PROGRAMMES BY REGION 265

Introduction 266
Africa 269
Asia and the Pacific 281
Europe 302
Latin America and the Caribbean 315
Near East 332

ANNEX II BUDGET BY ORGANIZATIONAL UNIT 345

Summary Tables by Department 346
Office of the Director-General 348
Agriculture Department 351
Economic and Social Policy Department 360
Fisheries Department 368
Forestry Department 372
Development Department 376
FAO Representatives and Technical Cooperation Programme 378, 379
Regional and Liaison Offices and Joint Divisions 382
General Affairs and Information Department 386
Administration and Finance Department 392

ANNEX III APPENDICES 397

A. FAO Salary and Post Adjustment Schedules 398
B. Establishment, Grading and Codification of Posts 402
C. United Nations System Standard Budget Tables 408

ABBREVIATIONS 410


ORGANIZATION CHART 1990-91













DIRECTOR-GENERAL'S INTRODUCTION


I have the honour to submit to the Conference, for
its consideration and eventual approval, my proposals
for the Programme of Work and Budget for 1990-91.
As recommended by the Council at its Ninety-fifth
Session, these proposals are based on the Summary
examined by the Council and take into consideration
the reaction of the Council to it.
The consideration of these proposals will be facili-
tated, as in the past, by other major documents which
I am also submitting to the Conference, in particular
the Reviews of the Regular and Field Programmes.

Programme budget process

The review of certain aspects of FAO's goals and
operations, set in motion by Conference Resolution
6/87, provided scope inter alia for considering possible
improvements in the programme budget process.
The process of preparing this Programme of Work
and Budget for 1990-91 included the additional prelimi-
nary step, approved on an experimental basis by the
Council at its Ninety-fourth Session, of submitting to
the Programme and Finance Committees meeting in a
Joint Session in January 1989 a brief document in the
form of an Outline, indicating the budget level I in-
tended to use in the preparation of the Programme of
Work and Budget 1990-91, together with the main ac-
tivities to be undertaken.
In accordance with the Basic Texts, the Summary
Programme of Work and Budget was as usual submit-
ted to the Council at its Ninety-fifth Session. At that
time the Council also considered the merits of the pro-
cedure involving the additional step of an Outline.
A number of countries expressed support for the
eventual continuation of this new procedure of an Out-
line into the next biennium in as much as the Outline
appeared to have permitted early consideration of the
proposals and a fruitful dialogue between member
countries and the Secretariat and thus paved the way
for consensus on the proposed Programme of Work
and Budget. Other countries, however, expressed
doubts on the value of the procedure in that no consen-
sus was yet evident, there were additional costs in-
volved and that the objective might be reached in other
ways. It was suggested that the crucial test of the


value of this additional consultative step would take
place when the Conference considered and decided
on the full Programme of Work and Budget proposals.
The Council concluded that a final decision on the is-
sue of continuing the Outline should therefore be taken
at the Conference.
Irrespective of the decision that the Conference
may take on the eventual continuation of this new pro-
cedure, the Programme and Finance Committees ex-
pressed appreciation for the Outline as a policy docu-
ment, endorsed the policy approach regarding priori-
ties and the priority areas intended to benefit from ad-
ditional resources, and had an opportunity to receive
a first indication of the cost increases which would
have to be provided for.

The external challenges

The challenges facing world food, agriculture,
forestry and fisheries are all the more urgent to resolve
because of the ceaseless growth in world population,
increasing by some 80 million per year; the scant suc-
cess in the fight against poverty; the increasing prob-
lems of ensuring development on a sustainable basis;
heightened tension in world trade; the intolerable
burden of external debt on developing countries; and
the increased complexity and difficulty of resolving
problems in the present world situation. This assess-
ment was shared by the Council, at its Ninety-fifth
Session in June 1989, when it reviewed the global and
regional food situation.
Production of staple foods has fallen below aggre-
gate consumption levels for the second consecutive
year and in per caput terms was only 1 percent more
in 1988 than it had been at the beginning of the de-
cade. World carry-over stocks of cereals are expected
to be drawn down by the largest recorded amount in
any one year, in 1988/89. They are expected then to be
at the minimum level that FAO considers necessary to
safeguard world food security. Prices of cereals have
risen significantly on international markets, creating
problems for low-income, food-deficit countries of
financing imports, particularly for those countries with
severe debt-servicing difficulties, and jeopardizing the
access to food of vulnerable groups of their popula-






- vi -


tions. These problems are exacerbated by the decline
in the volume of food aid, which has fallen to its lowest
level in the past six years.
Problems are challenges. For FAO, these problems
mean a full agenda of action. The magnitude of the
demands made on FAO attest to the confidence of
Member Nations in the relevance and efficacy of the
Organization.

The internal challenges

In recent years, the Organization has been severely
put to the test by problems of liquidity. Programmes
have been cut back. The large majority of Member
Nations have thus been deprived of support and ser-
vices which were approved and which they were en-
titled to expect from FAO. The damage to the pro-
grammes since 1986 has resulted not only in curtailed
service offered to Member Nations, but also in damage
to FAO's stock of accumulated expertise and its ability
to take account of developments in a rapidly changing
world.
When examining the Summary Programme of Work
and Budget, the Council recalled that the proposals for
the 1990-91 biennium needed to be seen in the context
of the heavy programme cuts effected in the 1987-88
period, amounting to US$45 million. The negative ef-
fects of these cuts are also being felt in the current
biennium and will still be felt in future biennia.
Maintaining the liquidity of the Organization remains
a challenge. The management of our finances has
meant a constant battle to ensure the required cash
flow and to avoid recourse to borrowing. We have man-
aged to do this and, with the necessary support of
Member Nations, we intend to continue to do so.
The large majority of Member Nations have given
proof of their willingness and readiness to meet their
financial obligations. Those Member Nations who en-
counter serious difficulties in meeting these obliga-
tions, because of external debt and economic prob-
lems, are striving to overcome them. And the special
situation of the largest contributor is on the verge of a
considerable change for the better through a full ap-
propriation to meet obligations to UN organizations for
the next year, and a projected plan for the graduated
settlement of arrears.
The Council noted that the financial situation is still
fragile, though there was guarded optimism that fur-
ther programme disruptions would be avoided. The
Council emphasized that the prime basis of the
Organization's financial recovery was the prompt pay-
ment of contributions for current assessments and
settlement of arrears. In the same spirit, it underlined
that assured and adequate resources are essential for
FAO's long-term evolution and effectiveness.


Overall approach

The technical and economic programmes are the
life-blood of the Organization. It is these that Member
Nations look to and rely on for support and assistance
in their own efforts to resolve the problems of food and
agriculture. For the past several biennia, I have pur-
sued a double approach of reducing the resources to
be provided for administrative and support services
and directing these resources, together with the addi-
tional resources approved, to the technical and eco-
nomic programmes.
This time, it is not possible to further reduce the re-
sources for the support and servicing areas. However,
in this Programme of Work and Budget, I propose to
continue the policy, endorsed by the Conference, of
channelling additional resources only to the technical
and economic programmes, including the Technical
Cooperation Programme. The Council has again wel-
comed this approach.
The proposals are the result of an active search for
compromise. On the one hand, there are extensive re-
quirements and genuine expectations for FAO action
on a broad front of well-recognized problems, espe-
cially in the developing world, and on internationally
agreed issues. On the other hand, I have sought to limit
the request for additional resources to a minimum. My
aim, in attempting to balance these conflicting factors,
is a quest for consensus of all Member Nations.
Once again, a determined review of all proposals
regarding posts leads me to propose a net reduction of
25 posts.

The priorities

The programme priorities that I am advocating
should receive net additional resources are carefully
chosen on the basis of the guidance of our intergovern-
mental bodies and represent a concentration on ac-
tivities which FAO can do best and for which it has a
clear comparative advantage. They comprise: sustain-
able development, crop/weather monitoring, biotech-
nology, crop protection, agricultural data develop-
ment, policy advice, women in development, aquacul-
ture and the Tropical Forestry Action Plan. These are
also areas of work where FAO has a clear programme
base of activities which require additional resources.
The Council was satisfied that the proposals are in
broad accordance with the guidance received from
FAO governing and advisory bodies, including
Regional Conferences.
The proposals were examined in the form of the
Summay Programme of Work and Budget, and within
the scope of their mandates, by the Committee on Ag-
riculture, the Committee on Fisheries, the Programme





- vii -


and Finance Committees, and the Council. The needs
and recommendations of all these bodies have been
carefully examined and taken into consideration in the
formulation of the full Programme of Work and Budget.
There is no programme or activity which has been rec-
ommended by any of these bodies for total elimination.
This is not surprising, since FAO's programmes con-
tinue to address unresolved problems, albeit dealing
with different aspects, in each biennium.
The changes in priorities are amply evident from the
proposed changes in resource allocation, as well as in
the specific activities to be undertaken. The informa-
tion provided in the Programme Budget down to the
programme element level enhances transparency and
facilitates consideration of the proposals. This was an
aspect on which all the bodies which examined the
Summary expressed satisfaction.
Individual Member Nations have naturally made
suggestions for increased activities and resources in a
number of programmes. Conversely, some have also
provided suggestions on areas where they felt reduc-
tions and savings could be considered. These sugges-
tions have been carefully considered. However, it must
be recognized that where there is a diversity of opin-
ion, the proposals must seek to preserve a balance
which may be accepted by all Member Nations.
The proposals also reflect the close integration be-
tween the Regular and Field Programmes and the con-
tribution of Special Action Programmes which give full
expression to the catalytic effect of Regular Pro-
gramme funds in mobilizing extra-budgetary re-
sources.


Programme budget impact

Programme

All these considerations lead me to submit proposals
for a Programme of Work and Budget for 1990-91 in-
volving a nominal programme increase of US$5.5 mil-
lion, or 1 percent over the recosted budget base. Tak-
ing into account the proposed absorption of cost in-
creases of US$3 million (see below), the programme
increase amounts to only 0.45 percent. It is however
proposed that the major programmes of Agriculture,
Fisheries and Forestry should receive a programme
increase of 1.5 percent and the Technical Cooperation
Programme a programme increase of 2.8 percent.
The proposed increase for the TCP has received
particular attention in the discussions on the Sum-
mary. It will be recalled that the TCP received no pro-
gramme increase for the present biennium. At the last
Conference, regret was expressed that it had not
proved feasible to increase in real terms the level of


the TCP appropriation and it was hoped that this would
be done in future biennia.
Accordingly the share of the TCP in the total budget
declined from 14.1 percent in 1986-87 to 12.8 percent
in 1988-89. Even with the increase now proposed of
US$1 750 000, the share of the TCP in the total budget
for 1990-91 will further decline to 11.8 percent.

Cost increases

The estimate of cost increases, given in the Sum-
mary, amounted to US60 million. As noted by the
Finance Committee and the Council, that estimate had
been made on the basis of the established methodol-
ogy and been subjected to a detailed review by the
Finance Committee. As also recognized by the
Finance Committee, the estimate had been calculated
on a conservative basis and was the best that could be
made at that time.
The estimate excluded an amount of US$3 million of
the cost increases which we shall have to face in con-
nection with expenditures on consultants, duty travel
and the cost of staff upgradings effected in the present
biennium. I have deliberately excluded this amount in
order to contain the overall level of the cost increases,
and I have not reinserted it in the revised estimate.
However, further review and updating of the cost
increase estimates requires me to propose an in-
crease of US$16 million. Of this amount, US$2 million
is due to the impact of the General Assembly lifting the
transitional measures on the post adjustment system
and a further increase in the scale of pensionable re-
muneration. The requirements for both these factors
had been indicated in the Summary, but could not then
be costed.
The remaining US$14 million covers the eventual re-
sults of the General Service salary survey, to be con-
ducted by the International Civil Service Commission
(ICSC), the results of which will be submitted to the
Council in 1990 for approval, as well as additional
costs resulting from eventual decisions of the United
Nations General Assembly following the ICSC's com-
prehensive review of conditions of service of staff in
the Professional and higher categories. These are
costs which will have to be met and for which it is only
normal and prudent that provision be made. (Details
are provided in the Chapter which follows on the Pro-
gramme Framework.)

Impact on assessments

The total budget level proposed for 1990-91 comes
to US574 million. This proposal is as usual presented
at the budget rate set by the last Conference for the
current biennium, i.e. Lit.1 235 = US$1.






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The Conference will set a new budget rate in con-
nection with the Programme of Work and Budget for
1990-91. Market exchange rates this year have fluctu-
ated between near Lit. 1 300 to near Lit. 1 400. At a
rate of Lit. 1 350 = US$1, the effective working budget
would amount to US$557 million.
The assessments for Member Nations, however,
would be calculated after taking into account esti-
mated Miscellaneous Income of US12 million. The part
of the effective working budget to be funded from
Member Nations' contributions would thus amount to
US545 million.

Conclusions

All the factors examined in the formulation of this
Programme of Work and Budget point to the Organi-
zation experiencing renewed vigour, revived commit-
ment and an enhanced promise of fulfilment.
I submit these proposals with the assurance that


they are responsive to the demands of Member
Nations as a whole and that they represent a basis for
effective action by your Secretariat in the coming bien-
nium. I am encouraged by the Council and its subsid-
iary bodies which have recognized the validity of the
priorities and the activities proposed.
I venture to remain confident that Member Nations
will find in these proposals a basis for their renewed
commitment and expression of confidence in their Or-
ganization. A consensus approval is desired by all. This
consensus can, with goodwill and mutual understand-
ing between Member Nations, be a reality. These pro-
posals are aimed at helping Member Nations to unite
in a consensus for the approval of their Programme of
Work and Budget.









Edouard Saouma
Director-General






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PROGRAMME FRAMEWORK



I. STRUCTURE OF THE DOCUMENT

1.1 The Programme of Work and Budget for 1990-91 is presented in a single
volume. Budgetary estimates are indicated in the "Programme Budget"
section, and are presented together with programme narratives. As
directed by the Conference and Council, the Programme Budget also
includes Medium-term Objectives.

1.2 The figures in the draft Appropriations Resolution and other budgetary
estimates in this document are not strictly comparable with those in
the Summary Programme of Work and Budget 1990-91 as they include cost
increases. However, the same exchange rate is used, i.e. Lit. 1 235 =
US$ 1, which is the budgetary rate of exchange adopted by the Twenty-
fourth FAO Conference in November 1987, for the 1988-89 Programme of
Work and Budget.

1.3 The Programme Budget is supplemented by three Annexes:

Annex I, showing all programmes and budget estimates on a regional
basis;

Annex II, showing summary estimates for 1990-91 compared with
1988-89, by major organizational unit and by object of expenditure,
including cost increases, posts and organization charts; and

Annex III, containing summary tables covering: (i) salary and post
adjustment schedules; (ii) establishment and grading of posts funded
by the Regular Programme or other funds; and (iii) UN standard
presentation by CCAQ, object of expenditure categories and by main
source of funds.

1.4 This introductory section provides:

an overview of the main programme priorities which have influenced
the biennial proposals;

a brief update of prospects for the field programmes;

an analysis of the 1990-91 budget, in particular of the financial
aspects.

II. OVERVIEW OF MAIN PROGRAMME PRIORITIES FOR THE 1990-91 BIENNIUM

2.1 The Review of FAO, which will be considered by the Council and
Conference in November 1989, will provide a renewed opportunity for
FAO's Member Nations to assess the relevance of the objectives, roles,
priorities and strategies of the Organization. The present document,
accordingly, does not anticipate the conclusions of this assessment.
The guiding principles for this Programme of Work and Budget have been
to ensure the continuation of essential activities, coupled with the
selective strengthening of specific priorities and, in the light of an
evolving food and agricultural situation, programme activities to
address new concerns.










Context of Programe Formulation


2.2 The formulation of a new biennial Programme of Work always requires
numerous factors, both external and internal, to be taken into account.
The breadth of FAO's mandate and its special position within the family
of organizations directly or indirectly concerned with world food and
agriculture issues, make this task complex. This is part of the
management responsibility. Unavoidably, the detailed results of this
analysis, in terms of the rationale and scope of each planned activity,
cannot be presented within the confines of the Programme of Work and
Budget document. Moreover, they cannot be appreciated uniquely in
terms of monetary allocations and shifts of resources.

2.3 For instance, the forward and backward linkages of the food and agricul-
ture sector with other sectors requires FAO to be attentive to develop-
ments in other international fora, especially those of the UN system.
The structural adjustment programmes undertaken by Member Nations under
the aegis of the International Monetary Fund and the World Bank and the
current Multilateral Trade Negotiations (MTNs) under GATT, are promi-
nent examples.

2.4 As an intergovernmental organization, FAO necessarily interacts with
national policies and actions in member countries. The diverse require-
ments, priorities and expectations for FAO action stemming from Member
Nations, have to find their way in its programme of work. These
requirements, priorities and expectations are articulated during
sessions of its Governing Bodies, at regional conferences and in
specialized fora. Moreover, within the limits of its mandate and its
intergovernmental status, FAO needs to remain sensitive to the aspira-
tions and the economic and social problems of rural communities world-
wide. It is the essence of food and agriculture issues that this
guidance is far from being harmonious or unambiguous.

2.5 In addition, the Organization is expected to remain at the cutting edge
of evolving technologies and to reflect widely recognized cross-
sectoral concerns (sustainability, environmental protection, social
equity, etc.) in its activities. The advice of specialist bodies is
regularly sought in this regard, and is generally reflected in shifts
of emphasis in relevant areas.

2.6 As importantly, it is incumbent upon programme managers to select and
design future activities with due account of past and current achieve-
ments, the comparative advantages of FAO, a realistic assessment of
expected impact, and the lessons from evaluation. This condition is
not specific to FAO programme managers. Among the more evident mecha-
nisms are the interdepartmental working groups to address problems
cutting across sectoral boundaries; the management review meetings at
various levels to assess the value and internal consistency of proposed
activities; and the consultative procedures aiming at the distillation
and reconciliation of recommendations from FAO governing and advisory
bodies, through their wide circulation to and comments by concerned
staff. The less visible mechanisms include the constant interactions
of FAO staff with government officials, the formal and informal con-
tacts with outside experts and institutions, the experience gained
through the Field Programme and the synergy which is the hallmark of a
multidisciplinary secretariat.






- xi -


2.7 This process is increasingly facilitated by further progress in compu-
terization, which permits better quantification of resources in rela-
tion to outputs and more accurate monitoring of programme shifts and
changes.

Management Guidance and Intergovernmental Reviews

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

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

2.10 Detailed and fully costed proposals were submitted and reviewed at
departmental meetings chaired by the Director-General. A preliminary
indication of the main programme priorities for 1990-91 was given in
the Outline submitted to the Joint Session of the Programme and Finance
Committees, held on 30 January 1 February 1989.

2.11 The Director-General's proposals were further elaborated in the Summary
Programme of Work and Budget, which was extensively discussed in its
entirety or parts thereof, by the Committee on Fisheries, the Committee
on Agriculture, the Programme and Finance Committees and by the Council
in June 1989. The present Programme of Work and Budget document
reflects, to the maximum extent possible, the views and recommendations
of these Bodies.

Programme Priorities

2.12 Within the framework of FAO's medium-term objectives, the selection of
priorities for 1990-91 necessarily reflects the potential availability
of resources and the restraint placed on net increases under the
Regular Budget. The programme of work also aims at ensuring complemen-
tarity with the work of other organizations, while respecting FAO's
roles and mandate. The eventual extra-budgetary resources foreseen in
this biennium to support specific activities have constituted an impor-
tant factor of programming and, in several instances, have permitted
easing pressure on Regular Programme demands.

2.13 The results of this intensive review have led the Director-General to
propose that the entire programme increase be directed to Chapter 2:
Technical and Economic Programmes, and Chapter 4: Technical
Cooperation Programme. The small apparent increase under Chapter 5:






- xii -


Support Services is only due to internal shifts based on a more
accurate method of distributing staff costs over programme activities.

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

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

2.15 The last four areas in the above list which does not imply any order
of preference are well covered in the programme narratives under
Programmes 2.1.2 and 2.1.4, Programme 2.1.2, Programme 2.2.2 and
Programme 2.3.1 respectively. There is, therefore, no need to dupli-
cate the information on their rationale and scope in this introductory
section of the Programme and Work and Budget document. The first five
are, however, cross-sectoral priorities which merit a general presenta-
tion transcending the sectoral programme narratives.

2.16 The following general presentations cover inter alia the programme
areas of relevance as well as in-house coordination arrangements.

Biotechnology

2.17 Over the last few years, the potential of biotechnology to influence
and benefit agricultural development has been widely recognized. Bio-
technology is expected to lead to novel developments in animal and
plant production and to provide a variety of new opportunities in food
technology.

2.18 A number of new products are already the result of the application of
biotechnology. These include enzymes, food additives, disease-free
plant material, biocontrol agents, animal growth hormones and vaccines,
diagnostic reagents for plant and animal diseases and new plant
varieties and methods of animal reproduction.

2.19 As usual with new developments, biotechnology is progressing at a
faster pace in the industrialized world. Consequently, its application
is currently strongly directed towards intensive agricultural produc-
tion systems and transformation processes. In addition, research on
biotechnology is increasingly dominated by private industry.

2.20 In the light of the above, the requirements for FAO's assistance are
greatest in the developing world. FAO needs to assess realistically
the potentials and limitations of this new technology for agricultural
production in developing countries (including forestry and fisheries).
However, the short-term benefits of biotechnology must not be over-
stated. The objectives are to contribute to increased yields, stabi-
lized production, improved ecological sustainability, food quality, as
well as reduced losses. Member countries are to be assisted in initia-
ting activities in those areas that hold the greatest promise for sus-
tained progress under specific socio-economic conditions.






- xiii -


2.21 As biotechnology can be expected to provide new opportunities to solve
the problems of marginal areas to achieve sustainable development,
another focus of FAO's activities is to promote biotechnology to meet
the small farmer's needs.

2.22 In the longer term, it will also be incumbent upon FAO to assess and
report the global implications of widespread uses of biotechnologies,
as these may distort established patterns of comparative advantage in
food and agricultural production and could displace traditional commodi-
ties.

2.23 The main components of FAO's involvement with biotechnology are
envisaged as follows. In the first instance, FAO will assist member
countries to assess their requirements and to mobilize resources for
institutional and manpower development. It will support cooperation
networks to make optimal use of scarce manpower resources. In
addition, FAO will encourage the more advanced biotechnology programmes
in the developed countries to share their expertise and capabilities
with the developing countries. This poses a particular problem with
regard to the sharing of results obtained in the private sector. FAO,
in close cooperation with other concerned institutions, will provide a
forum to review and discuss various biotechnology issues as they relate
to food and agriculture. It will monitor developments, including those
related to the privatization of biotechnology and genetic information,
such as patenting of genes and living plants and animals and the
release and licensing of the products of biotechnology. FAO will
develop a code of conduct for biotechnology and plant genetic resources.

2.24 FAO's biotechnology activities are carried out under various programmes
and sub-progrmames. Overall coordination is achieved through the
Interdepartmental Working Group on Science and Technology. Supplemen-
tary informal working arrangements are established to ensure effective
cooperation between the various units concerned. The detailed activi-
ties are described under the various programmes and sub-programmes.
These are, in particular:

Programme 2.1.2: Crops
Sub-programmes 2.1.2.1, 2.1.2.2, 2.1.2.3, 2.1.2.4 and
2.1.2.6;

Programme 2.1.3: Livestock
Sub-programmes 2.1.3.1, 2.1.3.2, 2.1.3.3 and 2.1.3.6;

Programme 2.1.4: Research and Technology Development
Sub-programmes 2.1.4.1, 2.1.4.2 and 2.1.4.3;

Programme 2.3.1: Forest Resources and Environment
Sub-programmes 2.3.1.2.

Agricultural Data Development

2.25 The collection, analysis, interpretation and dissemination of informa-
tion relating to nutrition, food and agriculture, including forestry
and fisheries, have been actively pursued since FAO's inception. The
priority on agricultural data development is therefore of long standing.






- xiv -


2.26 In the next biennium, however, this priority takes added significance
through the planned improved management of the existing FAO data banks
through the establishment of a corporate database and systems, i.e. the
World Agricultural Information Centre (WAICENT) project.

a) Rationale

2.27 Over the years, FAO has accumulated a unique wealth of information
related to food, agriculture, fisheries and forestry in more than 40
data banks, established by several divisions according to respective
sectoral concerns and priorities.

2.28 Although this accumulated information is highly valued by a wide range
of users, some problems are experienced:

part of this information, for which there is high potential
interest, is not accessible to external users; internal users
themselves may not always be fully aware of their coverage;

difficulties in accessing existing databases are due to the not
fully compatible hardware and software environments under which they
operate;

some redundancy and/or inconsistency subsists regarding data
structures, codes, classifications, processing methods and quality
standards, etc.;

some of the data banks are not regularly updated.

2.29 After careful study of these and other issues, it was decided to
develop a consistent corporate data system the World Agricultural
Information Centre (WAICENT). This corporate data system will entail
common data management standards covering classifications and coding,
data quality, statistical models, documentation methods, uniform
policies for security and access, data referral rules, and timeliness
and currency of data.

2.30 These standards are to be upheld by the "working systems" (i.e. the
component data systems) to ensure overall quality standards for WAICENT
and an efficient technology environment. In this context, the
applications generating data of potential corporate interest are being
constantly reviewed.

2.31 For the purposes of WAICENT, corporate information is defined as
"information collected, analyzed, interpreted or disseminated by the
Organization that is of general interest to either internal or external
users". WAICENT will thus include both statistical data and textual
information.

b) Strategy

2.32 The development of a truly corporate data system is a complex
undertaking of a long-term nature. It involves most FAO technical
units, either as providers or as users of information. Conceptual
developments will need to take account of resource limitations.
Moreover, the enhancement of existing data will need to go hand-in-hand
with the reflection of emerging requirements for additional information
(e.g. women in development, environment).






- xv -


2.33 The Organization has selected a "Decentralized Process Model"
(working/feeder systems) to support the Centralized Corporate Database.
This implies decentralized but coordinated data collection, input,
editing and validation in the "working systems" which would "pass" data
of corporate value to WAICENT for central storage and dissemination.

2.34 Analytical applications would be carried out either centrally or
locally on "downloaded" corporate information and could themselves
generate derived information (e.g. socio-economic and other indicators)
of corporate relevance.

2.35 Some specialized applications (e.g. the FAO Geographic Information
System) could be considered to have corporate characteristics but,
because of their particular nature, which makes them difficult to
integrate, will remain outside WAICENT. In such cases, appropriate
coordination will be ensured.

c) Organizational arrangements

2.36 The corporate data system requires close coordination within the
Organization, as well as adequate working relationships with other
information sources within and outside the UN system, in order to
reduce, to the minimum, redundancy and inconsistency of information
obtained from various sources.

2.37 The main coordinating responsibility rests with the recently-
established Interdepartmental Working Group (IDWG) on the World
Agricultural Information Centre. This Group is responsible for
establishing standards and policies relating to data content, data
collection, coding and classification, dissemination, application of
statistical models and methods, and quality. The IDWG has created a
number of sub-groups to deal with specific aspects of data management.
In addition, the Information Systems and Resources Committee (ISRC),
which is responsible for advising top management on policy issues in
relation to all FAO information systems and resources, will supervise
the development of the corporate data system.

2.38 The "day-to-day" implementation of WAICENT is the responsibility of the
Statistics Division (ESS) in cooperation with concerned divisions,
particularly those which generate information to the corporate system.
Divisional Data Coordinators have been appointed for this purpose.
Coordination with other UN organizations is ensured through
participation in the work of several inter-agency bodies such as the
Advisory Committee for the Coordination of Information Systems (ACCIS)
and the ACC Sub-committee on Statistical Activities.

d) Implementation

2.39 The Statistics Division has gained significant experience in the
development of the AGROSTAT Information System. AGROSTAT's purpose was
to facilitate access of internal as well as external users to FAO data,
including those where practical problems could be experienced in giving
direct access to the specific working systems (e.g. ICS, FISHDAB,
etc.). AGROSTAT contains a copy of FAO data which are created by other
computerized applications of the four technical departments. In
addition, it is also the repository of data from external sources such
as the ILO, the World Bank and the United Nations.







- xvi -


2.40 AGROSTAT, in many ways, meets the criteria of a corporate database.
However, AGROSTAT is not backed by a formal institutional infrastruc-
ture which, in turn, means that it cannot make demands on data pro-
ducers. Once data is on AGROSTAT, the original data producers are no
longer concerned with meeting external or internal demands for copies
of files, etc.. AGROSTAT is presently available to internal and
external users either on-line or in suitable computer-readable form.

2.41 AGROSTAT, moreover, does not benefit from modern relational data
management techniques (database management systems DBMS). Data is
therefore not independent of the programmes which process it; there is
no active data dictionary; all programmes are written in COBOL, PL1
and other third generation languages instead of the much more
productive application generators which accompany a DBMS.

2.42 Building on this experience, the implementation of WAICENT will be
based on a phased functional approach. The development of codes,
classifications, definitions, processing and quality standards,
statistical methods, the selection and customization of an efficient
software and, to a lesser degree, hardware environment for the
corporate data system and even more for working systems, will require
mobilization of available expertise in the Organization, as well as
considerable external consultancy assistance. Work is already under
way mainly through the above sub-groups of the IDWG/WAICENT. It is
expected that the standard setting work will be completed by mid-1990.

2.43 The operation of the corporate (central) database and the working
systems, based on efficient software and hardware technology, is
tentatively planned to be completed by the end of the biennium. Some
activities have already started in this regard and achievements so far
are as follows:

a version of AGROSTAT for external communication called AGROTEL has
been designed, developed and tested successfully;

tests have shown that the AGROSTAT software is also suitable for the
dissemination of non-statistical information.

2.44 This phase will require flexibility in terms of timing, depending upon
the availability of a suitable DBMS, as well as the necessary resources.

e) Other actions

2.45 Beyond the WAICENT project, the priority on agricultural data
development will cover other actions in 1990-91, e.g. strengthening of
AGRIS/CARIS (cf Sub-programme 2.1.4.3), ASFIS (cf Sub-programme
2.2.1.1), remote sensing data (cf Sub-programme 2.1.4.4), etc..

2.46 Also, the development of FAO's Geographic Information System (GIS),
started in the 1986-87 biennium, will continue in 1990-91. During
1988-89, emphasis was, to a large extent, on developing and opera-
tionalizing the GIS hardware-software environment. In 1990-91, this
system will be used to consolidate and update FAO's computerized
geographic databases and will be applied to multidisciplinary studies
at various levels on such aspects as land degradation hazards, forest
productivity zoning and potentials for aquaculture development. The






- xvii -


capability and expertise which have been developed gradually over the
last five years will permit increased assistance to national
institutions and support of the GIS components of FAO's field projects.
These activities will continue to be guided by the Interdepartmental
Working Group on Land Use Planning.

Sustainable Development

a) General remarks

2.47 A report on FAO's policies, programmes and activities related to
sustainable development was considered by the Ninety-fourth Session of
the FAO Council in November 1988 (CL 94/6).

2.48 The following operational definition of sustainable development was
used:

"Sustainable development is the management and conservation of the
natural resource base, and the orientation of technological and
institutional change in such a manner as to ensure the attainment and
continued satisfaction of human needs for present and future
generations. Such sustainable development (in the agriculture,
forestry and fisheries sectors) conserves land, water, plant and animal
genetic resources, is environmentally non-degrading, technically
appropriate, economically viable and socially acceptable."

2.49 The above report underlined that FAO had long been concerned with many
individual and connected components of "sustainable development".
Article I of FAO's Basic Texts includes among the functions of the
Organization "the conservation of natural resources and the adoption of
improved methods of agricultural production". Moreover, the objectives
set out in the Preamble to FAO's Constitution: "raising levels of
nutrition and standards of living", "securing improvements in the
efficiency of the production and distribution of all food and
agricultural products", and "bettering the condition of rural
populations", all contribute to sustainable development. Also, most of
the long-term goals identified under Major Programme 2.1: Agriculture,
in the present Programme of Work and Budget, accord more or less
directly with the concept of sustainable development.

2.50 FAO's action takes place under both the Regular and Field Programmes in
a continuum. It involves all technical departments in a more or less
direct manner.

2.51 The "building blocks" of FAO's contribution to sustainable development
may be appreciated by way of representative examples. For enhanced
clarity, the following components are grouped under the same functional
headings as those used in document CL 94/6.

b) The main components of FAO's action

2.52 Policy and planning: Appropriate policies are the prime basis of
sustainable development. In this regard, FAO has established a number
of policy instruments, including the World Soil Charter, the
International Undertaking on Plant Genetic Resources, the International






- xviii -


Code of Conduct on the Distribution and Use of Pesticides, the Plan of
Action of the World Conference on Agrarian Reform and Rural
Development, the World Food Security Compact, the Strategy and
Programmes of Action for Fisheries Management and Development, and the
Tropical Forestry Action Plan, which largely guide its policy advice to
member countries.

2.53 Natural resource conservation and management: The conservation and
management of renewable natural resources is supported through the
following activities: International Scheme for the Conservation and
Rehabilitation of Africa's lands; assistance to member countries in
the development of national soil conservation policies; guidelines and
technical manuals for evaluating sustainable land potentials and on the
management of salt-affected soils; environmental management for
controlling vector-borne diseases; safe use of wastewater for
irrigation; assessment and management of inland and marine fishery
resources; forest management in arid zones and control of desertifi-
cation; watershed management; prevention and control of bush fires;
game farming and wildlife management and utilization; introduction of
environmental impact assessment procedures for field projects; and
development of a comprehensive approach for energy assessment and
planning for agricultural and rural development.

2.54 Genetic resources conservation: The loss of biological diversity,
especially in the humid tropical regions, is being actively combatted.
Based on the International Undertaking on Plant Genetic Resources,
national, regional and international genetic resources conservation
programmes are being developed in collaboration with the IBPGR. The
conservation of animal genetic resources is being assisted through the
establishment of gene banks. Other activities include: the promotion
of traditional food crops and under-exploited food crop varieties which
would also help to conserve genetic resources; the protection of fish
genetic resources through a Code of Practice for the Introduction of
Aquatic Species currently being negotiated by the FAO Regional
Fisheries Commissions; forest genetic resources in situ conservation
under the umbrella of the FAO Panel of Experts on Forest Gene
Resources; assistance in protected area management and the sustained
utilization of wildlife.

2.55 Production systems management: Encouragement to production systems
which balance use and conservation under different agro-ecological
conditions; an interdepartmental working group is dealing with issues
related to agroforestry; under Sub-programme 2.1.1.2, a new activity
on analysis and development of sustainable farming systems, will be
initiated; crop diversification is supported based on indigenous
mixed-cropping systems; studies are being conducted on the management
of agricultural residues including their potential as energy sources;
integration of aquaculture in selected farming systems; promotion of
energy-efficient fishing boats and fish processing methods; support to
agroforestry systems in mountain and peri-urban areas; silvo-pasture
management; development of appropriate forest industries; enhanced
role of women in small-scale forest-based enterprises through the
community forestry programme, contributing to improved resource
management.

2.56 Technology development and application: Support to biological nitrogen
fixation; monitoring of pesticide levels and integrated pest
management for crops such as rice, cotton and vegetables; promotion of






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technologies on new and renewable sources of energy such as
gasification, biogas, solar energy, draught animal power, improved
stoves, agricultural residues and wind energy.

2.57 Pollution control: Implementation of the International Code of Conduct
on the Distribution and Use of Pesticides as the accepted framework for
the safe use of pesticides, through training, technical assistance and
guidelines; introduction of non-polluting tsetse fly control
techniques; collaboration with IAEA in regard to radionuclide
contamination and with WHO and UNEP in the International Food
Contaminants Monitoring Programme; analysis and mitigation of
pollution impacts on marine fisheries and aquatic organisms also
requiring continuing collaboration between FAO, UNEP and other UN
agencies.

2.58 Socio-economic aspects: Monitoring of rural poverty and formulation of
policies and programmes for poverty alleviation, through land reform,
income generation and specific attention to rural youth and rural
women; monitoring of nutrition levels and welfare standards, including
access by the poor to food; the People's Participation Programme,
including participatory upland conservation and small-scale forest
enterprises for local employment and income generation and community
forestry development.

2.59 Information transfer and exchange: Extensive training and information
dissemination is carried out on the technical issues related to
sustainable development, including numerous technical publications and
audiovisual aids. The Geographic Information System (GIS) contributes
to improved land-use planning and decision-making. The Environment and
Energy Bulletin draws on information produced by the various FAO
technical divisions and is oriented toward environmental management and
sustainable development. The transfer of conservation technologies is
assisted through the Forest and Wildlands Conservation Information
System.

2.60 New sub-programme: In addition to these diverse components, a new
sub-programme will cover some aspects of sustainable development under
the title "Sustaining Resource Potentials" and will include policy
advice, demonstration of sustainable practices, and studies on the
impact of climate change. The rationale is described in the narrative
under Programme 2.1.1: Natural Resources.

c) In-house and external coordination

2.61 As sustainable development requires multisectoral and multidisciplinary
interventions, it is approached in an integrated manner. FAO's work on
environment in relation to sustainable development is coordinated
through an Interdepartmental Working Group (IDWG) on Environment and
Energy, in which the relevant departments are represented. Other
mechanisms include the IDWG on Land-use Planning, the Interdepartmental
Committee and Interdivisional Working Group on Rural Development, the
IDWG on Women in Development and the IDWG on Training. These inter-
divisional and interdepartmental groups will continue to operate as
multidisciplinary mechanisms through which the concept of sustainable
development can be further developed and translated into operational
activities for Regular Programme and extra-budgetary financed pro-
grammes and projects.






- XX -


2.62 FAO collaborates closely with UNEP on environmental issues, mainly
through joint programmes and project activities, within the framework
of the second System-wide Medium-term Environment Programme. It also
collaborates with Unesco in the Man and the Biosphere Programme and
works closely with NGOs in the field of environment, particularly with
the International Union for the Conservation of Nature and Natural
Resources (IUCN). FAO also cooperates with other agencies of the UN
system (WHO, WMO, ILO and UNDP) in the many individual subject-matter
areas relevant to sustainable development.

Policy Advice

a) Definition

2.63 Consistent calls have been made for FAO to strengthen its policy advice
activities. Policy advice, however, is an extremely broad term which,
if stretched to the extreme could encompass, directly or indirectly,
most FAO activities, both under its Regular and Field Programmes.
Therefore, there is a good case for observing a working definition of
policy advice in the FAO context.

2.64 Chapter 11 of the Review of the Regular Programme 1988-89 covers FAO's
policy and planning support to member countries, based on the following
"narrow" definition: "policy advice and planning support" includes
only those activities, including FAO's own choice of intervention,
which have a direct bearing on the decision-making process of member
countries in arriving at alternative development options and strategies.

2.65 Two additional concepts are often associated with "policy advice". The
first is "analysis" which is the process of examining minutely the
constituents of a policy issue; and the second is "planning" which is
the organized set of actions towards given objectives. Clearly, policy
analysis is an important requisite for policy advice. Planning, on the
other hand, may proceed within a given policy framework but is not
necessarily part of policy-making or of policy advice. In practice,
however, the policy-maker is often concerned with a continuum of
activities from the analysis of policies and the gathering of
information for this purpose, to policy implementation and the planning
process that follows.

2.66 For operational purposes, it may be useful to distinguish a broad FAO
advisory "function". In effect, it is abundantly clear that to provide
meaningful policy advice, FAO must possess sufficient and up-to-date
knowledge. It takes time and resources far in excess of those needed
to render the advice itself to acquire and maintain the necessary
knowledge. Such upstream activities make the policy advisory function
much broader than the specific act of providing policy advice.
Similarly, downstream activities such as the analysis of existing
policies and issues with a view to redesigning development policies and
translating them into plans, also contribute to the policy advisory
function.

2.67 Thus, the policy advisory function would include:

gathering basic data and information (the acquisition of knowledge)
that may underlie policy advice but which has not been gathered with
the specific objective of addressing policy issues. This covers a






- xxi -


very wide range of FAO activities not only in the area of
"statistics", but also resource assessments, soil and hydrological
surveys, nutrition or food consumption surveys, etc.;

the provision of technical information and advice within a given or
existing policy framework. This covers another broad range of FAO's
largely technical activities such as in pest control, animal
husbandry, fish catch techniques, forest industries, etc.;

the similarly wide range of activities "downstream" from policy-
making itself which may be considered under the rubric of "imple-
mentation" of the policies, plans and programmes that have been
designed. Thus, much of FAO's operational activities associated
with rural development, food security and agricultural and natural
resource development, form part of the broad FAO advisory function.

2.68 Policy advice is, however, taken as a more restricted core of
activities, as follows:

b) Categories of policy advice

2.69 This core of activities may be conveniently divided into three
categories: (i) global or regional sector studies, plans of action or
policy issue studies;. (ii) direct policy advice to country or region
or sub-region; and (iii) assistance to enhance the policy analysis and
planning capability of a country, region or sub-region.

2.70 In respect of the first category, the procedures used by FAO to develop
policy positions or overviews of global or regional issues, are well
known. A careful assessment of the policy issue is provided in the
form of a document or set of documents, followed by a thorough review
and discussion at meetings of experts or representatives of Member
Nations. There are many examples of such studies and the plans of
action they may give rise to, such as most recently: "the potentials
for agricultural and rural development in Latin America and the
Caribbean", which was discussed at the Twentieth FAO Regional
Conference in October 1988.

2.71 Activities of direct policy advice are to meet requests for assistance
in formulating or reformulating food, agriculture or rural development
policies, prior to the approval of a multi-year development plan, or
because sector performance has deviated significantly from
expectations, or because government administration has changed. In
recent times, there has been an increase in requests from member
countries to help prepare food security strategies, to prepare for or
to participate in policy review meetings with donors, to monitor and
assess the impact on agricultural performance and rural welfare of
stabilization or structural adjustment programmes, or to help prepare
for negotiating the terms and conditions of such programmes with
financing agencies.

2.72 The provisions of direct policy advice at the national or sub-regional
level is a delicate task. FAO must be prepared to provide such advice
on matters that come within its mandate and within the limits set in
the approved Programme of Work. This is discharged through short-term






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policy review missions, seminars and workshops, or longer-term field
projects. The latter include the traditional planning assistance
projects, which inevitably in practice include policy analysis and may
move into the formulation of agricultural policies and the advice
associated with it.

2.73 The following list provides an illustration of FAO's direct policy
advisory activities, sometimes undertaken in association with other
agencies such as the World Bank:

agricultural sector strategies, policies and plans for individual
countries or sub-regional groups;

food security strategies and policies, generally under the umbrella
of the Food Security Assistance Scheme (FSAS);

nutrition planning and policy advice;

commodity policy advice and planning;

rural development and agrarian reform, through WCARRD follow-up
inter-agency missions to countries;

agricultural products and inputs price and marketing policies,
including agro-industrial policies and development plans, and the
provision of credit and financing services;

policy aspects of the integration of women in development.

2.74 The third category includes training for policy analysts and category
(ii) field projects that provide direct support to policy analysis
units and which include a more or less formal training component. In
practice, the activities mentioned under category (ii), such as
short-term missions or workshops/seminars, may include a training
component, and contribute to an enhanced capacity for policy analysis
and formulation.

2.75 It is hoped that the above categorization will facilitate understanding
of the policy advisory role of FAO. In this connection, it is
important to recall that the activities in one category are linked to
those of another. For example, the policy documents prepared for
meetings of FAO Governing Bodies, seminars or workshops provide a
tested foundation for the policy advisory work at national and
sub-regional levels. They also provide the framework for advice given
by FAO staff and make an important contribution to the training
programmes for national policy analysts and advisers. The policy
studies and issues papers also stimulate requests for FAO's assistance
from member countries or their sub-regional groups, which may lead to
short-term policy review and advice missions, seminars or workshops, or
to longer-term field projects. In turn, the policy review and advice
missions frequently lead to longer-term policy advisory projects in the
field. In addition, the global or regional sector or sub-sector policy
studies also provide a basis for the provision of advice and assistance
to member countries in the context of negotiation of stabilization and
structural adjustment programmes, or to prepare for policy review
meetings with donor agencies.






- xxiii -


c) Activities in 1990-91

2.76 The policy advisory action of FAO is essentially demand-driven. Ex
post facto reporting on specific activities is more meaningful than
attempting to forecast them except in the aggregate. FAO sub-
programmes most concerned are: Sub-programme 2.1.1.1: Assessment and
Planning, Sub-programme 2.1.1.2: Farming Systems Development,
Sub-programme 2.1.1.3: Soil Management and Fertilizers, Sub-programme
2.1.1.6: Sustaining Resource Potentials, Sub-programme 2.1.2.6: Food
and Agriculture Industries, Sub-programme 2.1.4.5: Environment and
Energy, Sub-programme 2.1.5.2: Agrarian Reform and Land Settlement,
Sub-programme 2.1.5.3: Rural Institutions and Employment,
Sub-programme 2.1.5.4: Women in Agriculture and Rural Development,
Sub-programme 2.1.5.5: Marketing, Sub-programme 2.1.5.6: Credit,
Sub-programme 2.1.6.4: Nutrition Policy at Country Level,
Sub-programme 2.1.7.2: Situation and Outlook, Sub-programme 2.1.8.1:
Global Perspective Studies, Sub-programme 2.1.8.2: Agricultural Policy
Analysis, Sub-programme 2.1.8.3: Commodities Policies and Trade,
Sub-programme 2.1.8.4: World Food Security, Sub-programme 2.1.8.5:
Agricultural Planning Assistance, Sub-programme 2.2.3.1: Fisheries
Policy and Planning, Sub-programme 2.3.1.5: Tropical Forestry Action
Plan, Sub-programme 2.3.3.1: Forestry Training and Institutions, and
Sub-programme 2.3.3.2: Investment Planning and Statistics.

2.77 The descriptions of planned contributions to FAO's policy advisory role
in terms of the three categories mentioned above are provided under the
appropriate programme elements. In addition, it may be useful to note
some trends regarding the third category which will have implications
in the coming biennia. These trends are as follows:

incorporation of more formal training components into planning
assistance projects;

greater emphasis on practical tools of policy analysis, away from
conventional techniques of project appraisal;

development of computerized planning and modelling software to
explore the impacts or results of various policy options as policy
analysts in developing countries become increasingly familiar with
computers and personal computers more widely available.

greater attention to institution-building in member countries.

Women in Development (WID)

a) Background

2.78 FAO's attention to the role of women in development dates back to its
foundation. Over the years, the FAO Conference and Council have
adopted a series of resolutions which provide a set of mandates con-
cerning the integration of women in agricultural and rural development.
In addition, the Declaration of Principles and Programme of Action
adopted in 1979 by the World Conference on Agrarian Reform and Rural
Development (WCARRD), stressed that the integration of women in
development was a prerequisite for the success of rural development
plans and programmes.






- xxiv -


2.79 Since 1979, there has been a continuing effort to translate WCARRD
principles into concrete programmes at country and regional levels.
The Second Progress Report on the WCARRD Programme of Action, presented
to the Twenty-fourth Session of the FAO Conference in November 1987,
indicated that although there was an increasing recognition of the
vital importance of rural women's contributions to food security, the
implementation of significant nationwide policies and programmes to
ensure rural women's full participation in development was not yet
widespread.

2.80 In response to this assessment, the Conference called for a plan of
action for the integration of women in development. This Plan of
Action was submitted to and unanimously approved by the FAO Council in
November 1988.

b) Thrust of the Plan of Action

2.81 The Plan's declared objective is to bring about change in order to
ensure that, in FAO's sphere of responsibility, women are accorded
equal rights and opportunities and that their potential contributions
are put to full use by national societies. The strategy is to work for
this at three levels: (i) the body of knowledge on women in
agricultural development; (ii) policies; and (iii) concrete
programmes.

2.82 Substantively, the focus of FAO activities should be to support women
in their multiple roles, particularly as agricultural producers and
entrepreneurs. With this aim, future activities need to give greater
recognition to women's special requirements for income-producing
activities and control of income; for extension services and training
opportunities; and for the introduction and development of
technologies and other means to ease their burden and to increase their
productivity and access to markets.

2.83 The Plan is basically a comprehensive and broad sweeping charter. It
identifies measures in four spheres: the civil, the economic, the
social and the decision-making. For each of these spheres, it proposes
a wide range of activities.

2.84 In the civil sphere, efforts should be directed toward improving
women's access to land, credit and membership in development
organizations and cooperatives. As a means to this end, the Plan
foresees FAO advisory and training services to countries that desire to
bring national legislation into conformity with international standards.

2.85 In the economic sphere, the measures foreseen aim at enhancing women's
role in the agricultural and rural economy and at maximizing the
benefits that economic activities provide to women. FAO is to
contribute to raising the capacity and productivity of rural women and
expanding their economic opportunities.

2.86 In the social sphere, activities are to be geared, in the first place,
to improvement of rural women's access to education and to
modernization of national and local agricultural and home economics
training. The integration of population considerations and of
nutritional components in field projects is also to be given emphasis.






- xxV -


2.87 In the decision-making sphere, efforts are to concentrate on improve-
ment of women's participation in rural institutions and people's
organizations. In this respect, the Plan envisages providing leader-
ship and management training to women in order to give them the skills
to identify and to ask for tailored technical advice, extension
services and land reform measures.

2.88 To carry out these actions, the Plan of Action also reviews the
instruments and tools needed and provides guidelines on: (i) the
collection and utilization of statistics and indicators; (ii) the
types of training and public information; (iii) the interaction with
other UN agencies and Member Governments; and (iv) the delivery of
technical assistance to the benefit of farmers.

c) Implementation in the 1990-91 biennium

2.89 The Plan of Action is meant to cover the medium term, i.e. at least
three biennia. The main priorities identified in the short term are:
(i) FAO staff training; (ii) policy advice to member governments;
(iii) preparation and promotion of WID guidelines; (iv) strengthening
of project development and monitoring; (v) reorientation of home
economics and agricultural curricula; and (vi) collection and analysis
of gender-specific data. These priorities cut across technical sectors
and require that all technical units concerned participate in the
conception, preparation and implementation of selected activities. An
overview of these activities is provided below.

2.90 FAO staff training: The aim of training activities is to permit fuller
understanding by FAO staff of the concerns of women in agriculture and
integrating gender issues in planning. The training programme will use
a mix of methods including case studies based on project documents from
various FAO technical units. WID trainers will be assisted by a core
group of resource persons to be drawn from representatives of technical
divisions. Additional WID specialists from outside will provide
expertise on selected issues. Divisional representatives will also
assist in needs assessment and the provision of material in specific
technical fields.

2.91 Policy advice to member governments: Policy advice is to be conveyed
either on a sub-sectoral basis i.e. addressed to a technical government
agency, in which case this is usually part of the concerned FAO unit's
overall programme (e.g. women's access to agricultural credit or to
higher agricultural education), or in a multidisciplinary context, in
which case various technical units are to develop a policy or
programming package jointly. Examples of the latter are advice
regarding food security, price policies, rural development,
agricultural sector planning etc..

2.92 It is also essential to develop the WID capability in key ministries.
FAO will, in particular, assist Member Governments in building and
strengthening the technical capacities of women's programmes in
ministries of planning, agriculture and rural development.

2.93 Preparation and promotion of guidelines and manuals: Guidelines and
manuals are necessary to help decision-makers, advisers and technical
assistance staff at the national and international level, to better
integrate WID concerns in policy and programme development,
implementation and evaluation. The development of such tools will be
given special emphasis, for instance in fisheries, forestry, plant






- xxvi -


production and protection, in particular in regard to horticulture,
seed selection and integrated pest management, and water development
and management. A manual on the collection of statistics on women is
also planned in Sub-programme 2.1.7.1: Statistical Processing and
Analysis and Sub-programme 2.1.7.4: Statistical Development.
Assistance in the application of guidelines is given by Sub-programme
2.1.5.4: Women in Agriculture and Rural Development.

2.94 Strengthening project development and monitoring: The inclusion of
gender considerations and WID concerns in the planning, implementation,
monitoring and evaluation of projects merits particular attention.
Improvements can be achieved by such means as clearer identification of
beneficiaries, the disaggregation of data by sex, the inclusion of WID
specialists in formulation missions, the anticipation of obstacles to
women's participation, the systematic review of gender-specific
pipeline projects, etc. Checklists will be developed for this purpose.
While the two-pronged approach of (1) specific projects or components
for women, and (2) integrating women into the mainstream of projects
will be maintained, more emphasis will given to the latter, i.e. the
inclusion of WID concerns in mainstream project activities related to
the economic and technical aspects of agricultural production, forestry
and fisheries. The Interdepartmental Working Group on Women in Develop-
ment, the various divisional focal points, and the WID core groups
established in the Fisheries and Forestry Departments, the Land and
Water Development Division (AGL), the Plant Production and Protection
Division (AGP), the Commodities and Trade Division (ESC), the
Investment Centre (DDC) and the Field Programme Development Division
(DDF) will play their respective parts to include WID concerns from the
initial project formulation stages to evaluation. The sub-programme on
dairy development will follow up on identified successful pilot
projects for women that may be replicated.

2.95 Reorientation of home economics and agricultural curricula: Home
economics and agricultural extension workers are the main change agents
for agricultural and rural development at grassroots and project
levels. The redesign of home economics and agricultural curricula in
training institutions is therefore an important activity.
Sub-programme 2.1.5.4 and Sub-programme 2.1.5.1.1: Agricultural
Education, Extension and Training will be coordinating this task with
contributions from concerned technical units. This will enable
extension workers of both sexes to extend appropriate advice and
training to rural farmers, especially women, based on their real needs.

2.96 Collection and analysis of gender-specific data: In order to improve
the basis for policy-making and the design and implementation of
agricultural and rural development programmes and projects, it is
necessary to improve knowledge on gender issues and women in
development. Efforts will be intensified throughout FAO to improve
information on women in agriculture and to carry out studies on women's
participation in agriculture and access to rural services and
technology. Some specific activities are: the development of
statistical indicators to analyze data by gender in the ESS and ESP
Divisions; the analysis by gender in the 1990 World Census of
Agriculture and in the Sixth World Food Survey; publications on women
and structural adjustment; research on legal situations of women in
selected Latin American and African countries; case studies on
irrigation schemes; training materials on women in horticulture;
research on women and fertilizers; studies on women and forestry;
training materials for extension that include WID concerns; and a
study on technological change in agroprocessing and its impact on women.






- xxvii -


d) Operational arrangements

2.97 An increased budgetary allocation is being proposed for 1990-91 in
favour of Sub-programme 2.1.5.4, in addition to inputs from other
technical units, although these additional inputs are not always
visible at the programme element level. Evidently, the need for extra-
budgetary support is great and specific proposals will be elaborated
for this purpose.

2.98 The Women in Agricultural Production and Rural Development Service
(ESHW) will ensure overall coordination of the implementation of the
Plan of Action under the aegis of the Interdepartmental Working Group
on Women in Development. As mentioned above, focal points and core
groups have been or are being formed in a number of units. These will
ensure a common focus and will be called on to contribute to multidisci-
plinary efforts.

2.99- Coordination with other UN agencies dealing with other aspects of rural
development, such as health, labour, population, education, etc. will
be ensured. For this, a number of mechanisms exist within the United
Nations system. These are: (1) the System-wide Medium-term Plan for
Women in Development (SWMTP/WID), in which FAO has been entrusted major
responsibility for several sub-programmes; (2) the Inter-agency
Meetings on Women in Development which are held annually in connection
with the sessions of the Commission on the Status of Women (CSW); and
(3) the Administrative Committee on Coordination (ACC) Task Force on
Rural Development, of which FAO is the lead agency.

Other Aspects of the Proposals

2.100 The expanded presentation of some cross-sectoral priorities in this
introductory part of the Programme of Work and Budget is in response to
expressed wishes from FAO Governing Bodies. The above list of selec-
tive priorities should in no way be construed as exclusive in terms of
other programme areas or means of action to which member countries
expect FAO to pay attention.

2.101 Accordingly, Member Governments will be able to assess, on careful
examination of proposed activities, that other priority concerns have
not been overlooked. Many well-supported areas are subsumed under the
above cross-sectoral priorities, for example work on genetic resources
or pesticides as part of sustainable development efforts, the GIEWS as
part of agricultural data development, etc. The proposed preliminary
work on the Asia and Pacific Study and continuation of cooperation with
the private sector are self-evident components of the overall priority
on policy advice. Other traditional activities such as on animal
health (with the need to respond to new threats such as the American
screwworm fly), food standards, implementation of the plant protection
convention or investment support, are being continued and refined
according to evolving circumstances.

2.102 Likewise, the hitherto regional emphasis on Africa and the pursuance of
other well-established cross-sectoral priorities such as training, assi-
stance to small farmers and support to E and TCDC remain firm features
of the Programme of Work and Budget. A large number of planned activi-
ties are in one way or another responsive to the latter priorities.






- xxviii -


III. FIELD PROGRAMME

3.1 Comprehensive information on FAO's extra-budgetary programmes is given
in the Review of Field Programmes 1988-89. General developments and
financial prospects relating to the Field Programme are summarized
below.

Technical and Material Assistance

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





YEARLY EPENDITURES ON FAD FIELD PROGRAMS
FUNDED FRli ETby p -BrDGE prY SOURCES

(US$ million, by programme and programme category)


FIELD PROGRAMMES

1. FAO/UNDP Programme


2. Trust Fund Technical
Assistance

FAO/Government
Cooperative Programme
Associate Professional
Officer Scheme
Near East Cooperative
Programme
Unilateral Trust Funds
PFL Special Account
Freedom from Hunger
Campaign/AD
UN Fund for Population
Activities
UN Environment Programme
Other UN Organizations
Special Relief Operations
(OSRO)
International Fertilizer
Supply Scheme (IFS)
Emergency Centre Locust
Operations (ECLO)
Miscellaneous Trust Funds


Sub-total


TOTAL


1980 1981 1982 1983 1984 1985 1986 1987 1988

167.1 182.5 141.1 116.5 109.2 115.9 128.8 128.4 155.0






32.6 38.9 44.4 43.8 56.8 65.4 73.0 72.5 74.6

14.5 14.6 13.0 12.6 13.7 13.2 12.9 13.2 16.5

4.8 3.3 3.0 1.3 0.7 0.9 0.8 0.9 0.6
10.9 13.8 24.5 33.5 38.2 42.1 34.7 29.6 31.2
3.6 4.0 2.7 1.5 0.5 0.6 0.6 0.6 0.8

1.6 1.7 1.0 1.1 1.0 1.1 0.9 1.3 1.2

3.5 2.3 1.9 0.9 1.7 2.1 1.3 2.0 2.5
1.3 0.8 0.9 1.9 0.8 0.9 0.6 0.8 0.9
1.7 2.9 3.1 4.7 10.5 9.4 7.1 6.7 7.8

14.7 30.4 15.5 12.2 5.3 4.0 4.1 4.7 4.4

3.3 2.2 3.8 0.1 3.2 1.5 1.6 0.8 1.3

7.0 7.4 9.2
6.4 5.2 5.9 6.7 7.2 6.4 6.6 7.4 8.6


98.9 120.1 119.7 120.3 139.6 147.6 151.2 147.9 159.6


266.0 302.6 260.8 236.8 248.8 263.5 280.8 276.3 314.6






- xxix -


UNDP

3.3 1988 witnessed a vigorous surge in FAO/UNDP delivery. This welcome
development portends a reversal of the negative trend initiated at the
start of the decade. In fact, total project expenditure experienced a
continuous decline between 1981 and 1984 when it reached a low of under
US$ 110 million. In 1983, the percentage share of UNDP in FAO's extra-
budgetary field programmes went for the first time below 50 percent,
but is now almost back to this level. Total UNDP project expenditure
is, however, still considerably lower in nominal and especially real
terms than it had been in the "peak" years of 1980 and 1981.

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

Trust Funds

3.5 Throughout the eighties, there has been a steady increase in Trust Fund
delivery, which reached US$ 160 million in 1988 or slightly above
50 percent of total extra-budgetary field programmes. Taking into
account the level of recent approvals and expected contributions from
various funding sources, the delivery is expected to remain at this
level in the near future.

3.6 The FAO/Government Cooperative Programme (GCP) remains the major com-
ponent of the Trust Fund Programme. Delivery in 1988 was about
US$ 75 million, more than double the level achieved in 1980. Part of
the steady growth is attributable to projects funded by the Governments
of Italy and the Netherlands. The Associate Professional Officer
Scheme has also attracted continuing support, with 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 the threats of locust invasions over
most of Africa.

3.7 Unilateral Trust Fund expenditure rose from US$ 10.9 million in 1980 to
US$ 31 million in 1988. This is still due to some large projects
funded by the group of countries traditionally using the Unilateral
Trust Fund mechanism, and also to technical assistance projects in
connection with development bank loans. There is a good potential for
FAO's further involvement with this type of project and a dialogue is
maintained with financial institutions in this regard. Further
expansion is naturally dependent on the willingness of beneficiary
governments to request FAO's involvement, going beyond the institution-
building and training aspects to which FAO's intervention has been
mostly confined so far.






- XXX -


3.8 Expenditure through the Office for Special Relief Operations (OSRO)
varies from year to year depending on the number of emergencies and the
amount of donor assistance channelled through it. In the last few
years, expenditure has oscillated within the relatively low range of
US$ 4-5 million. Assistance to the rehabilitation of agriculture in
Afghanistan may lead to increased delivery in future years.

3.9 FAO's Special Action Programmes have continued to play an important
role in attracting financial support for well-defined technical sec-
tors. Under the Government Cooperative Programme, donors have con-
tinued to favour funding a long-term programme approach to individual,
separate projects. These programmes follow a strategy based on FAO's
Regular Programme priorities and include field activities at regional
and national levels. Among the priority Special Action Programmes that
received strong support recently are the Tropical Forestry Action Plan;
Food Security in its expanded concept; Fertilizer, Seeds, Pest Control
and Marketing for the benefit of small farmers; 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.

Food Aid

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

Support Costs

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

3.12 Coupled with this reduced percentage, the steep depreciation of the US
dollar experienced in 1986-87 has greatly compromised the capacity of
the support costs (SC) income of the Organization to continue to
finance the same levels of staff complements, principally at head-
quarters. In the absence of protective mechanisms regarding currency
fluctuations, a rundown of SC reserves proved necessary, accompanied by
a contraction of the number of SC-financed staff. However, FAO's field
programme delivery, as reported above, has maintained its momentum. In
effect, the difficulties experienced by the European-based agencies
which implement UNDP projects have been fully recognized by the UNDP
Governing Council itself in June 1988. An additional, one-time amount
covering some of the support costs incurred in 1987 was approved by the
Council. This has afforded welcome breathing space but has in no way
addressed the structural problems towards a mutually-acceptable solu-
tion. Any satisfactory long-term solution should aim at preserving
timeliness and quality during the implementation of projects through
adequate reimbursement arrangements.






- xxxi -


3.13 As instructed by the General Assembly of the United Nations, the UNDP
Governing Council is to develop successor arrangements for support costs
which it would consider in 1990 for adoption beyond 1991. A group of
experts has been appointed to formulate recommendations in this regard.
FAO is actively involved in providing inputs to this study. At the
inter-secretariat level, a special task force has been established under
the umbrella of the Consultative Committee on Substantive Questions
(Operational Activities), with the participation of the Consultative
Committee on Administrative Questions (CCAQ) and the Office of the UN
Director-General for International Economic Cooperation (DIEC) to pro-
vide coordinated inputs to this important exercise, from the vantage
point of the agencies of the UN system most concerned. Further develop-
ments will be duly reported to FAO Governing Bodies.

Investment

3.14 The Organization, through its Investment Centre, has continued to mobi-
lize external and domestic investments for agricultural and rural
development in developing countries. Up to end-1988, FAO has been
instrumental in generating, through 752 projects, more than
US$ 34 377 million of investment, including US$ 17 572 million from
external financing institutions. Eighty-six percent of the total
(74 percent of the projects) has been committed since 1976, when the
Investment Centre was substantially strengthened. In 1988, 44 projects,
which involved the Investment Centre's technical assistance, were
approved. Corresponding investment amounted to US$ 1 669 million of
which US$ 1 025 million came from financing institutions, two-thirds of
which on concessional terms. The balance was provided by the recipient
countries themselves.

3.15 During 1988, the Investment Centre carried out 196 missions under its
own responsibility, 106 under the FAO/World Bank Cooperative Programme
(CP) and 90 under the Investment Support Programme (ISP); in addition
the Centre participated in 76 missions led by financing agencies. Nine-
teen (34 percent) of the World Bank's agricultural projects approved for
financing during the Bank's fiscal year 1988 (ending June 1988) were
prepared by the CP. The ISP continued to work at a high level with IFAD
and the African Development Bank during 1987-88. Cooperation was main-
tained with the Asian Development Bank and re-initiated with the Inter-
American Development Bank. 1988 saw a strong increase in joint
activities with the United Nations Capital Development Fund (UNCDF).

3.16 Sub-Saharan Africa continued to receive emphasis in Investment Centre
activities. During 1988, 57 percent of the projects approved and
56 percent of the projects on which the IC worked, concerned this
region. This emphasis is even more pronounced in the case of the
Investment Support Programme, where 72 percent of projects worked on
were in Sub-Saharan countries.

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






- xxxii -


IV. ANALYSIS OF THE PROPOSED BUDGET


Programme Changes

4.1 The general approach to the programme proposals for 1990-91 is de-
scribed in the Director-General's Introduction to this document, and
full details on the substantive aspects of the programme changes are
contained in the Programme Budget.

4.2 The percentage distribution by chapter of the total budget for 1988-89
and that proposed for 1990-91 is shown in Figures 1 and 2. The
percentages differ somewhat from those shown in the Summary Programme
of Work and Budget, because of the application of cost increases by
chapter, and because of the changes in proposals between the Summary
and this document. The percentages would also vary with a change in
the Lire/US Dollar exchange rate.

4.3 Table A summarizes the net programme changes by Major Programme and
Chapter for Organizational Groups at 1988-89 costs and at Lit. 1 235 to
the US Dollar. (The cost of the programmes at 1990-91 costs are given
further below in the Summary Table at the beginning of the Programme
Budget, and in the tables in the Narratives and Annexes.)

Organizational Changes

4.4 Some relatively minor organizational changes are under consideration at
the time of finalization of the budget document. So as not to delay
issuance of this document, information on these, if pursued, will be
provided in a supplement.

Objects of Expenditure

Established posts

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

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






- xxxiii -


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


1988 89

Technical & Economic (47.4)


TCP (12.8)






Development


Contingencies (0.1)

Policy & Direction (7.0)


Common Services (3.3)


Figure 2


Figure 1






- xxxiv -


TABLE A PROGRAMME CHANGE BY MAJOR PROGRAMME AND CHAPTER
FOR ORGANIZATIONAL GROUPS
(At Lit 1 235 = US$ 1 at 1988-89 Costs)


CH 1 MP 2.1


MP 2.2 MP 2.3


CH 3


CH 4 Cl 5 CH 6 CH 7 TOTAL


1 698

1 001


1 698

1 001


450


GI (144)


RAFR
JAFR

RAPA

REUR
JEUR

RLAC
JLAC

RNEA
JNEA

CONT


(14)



(184)


96 92


(7) (17)

(37)


(44)


(117)


(17)


58 59


TCP


1 750


TOTAL 0 2 296 592 648 0 1 750 214 0 0 5 500


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


Legend to column


headings:


1 750







- XXXV -


TABLE B PROPOSED NEW AND ABOLISHED POSTS 1990-91


New Posts


Unit Professional


General Service


G-5 Clerk
G-3 Bilingual Typist


LEG

PBE

AFC


AFS

AGL






AGP


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


P-5 Senior Legal Officer

P-5 Senior Evaluation Officer

P-5 Corporate Systems Coordinator
(Computer Pool)

P-4 Contracts Officer

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

P-5 Senior Agricultural Officer
(Plant Biotechnology)
P-5 Coordinator (Cooperative Action
for Plant Health)
P-4 Agricultural Officer
(Locust Forecasting)

P-5 Senior Remote Sensing Officer
(Environmental Monitoring)
P-5 Senior Officer (Agrometeorology)
P-5 Agrometeorology Officer
(transfer from AGP)

P-4 Agricultural Industries Officer

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

P-4 Training and Project Development
Officer
P-4 Secretary, World Food Day Committee

P-4 Economist

P-5 Senior Aquaculture Development Adviser
P-4 Fishery Resources Officer
(Fish Utilization)
P-3 Fishery Information Officer


G-6 Administrative
Assistant (WFD)


Coordinator TFAP
Senior Forestry Officer (Forestry Research)
Forestry Officer (Forest Protection)
Forestry Officer (Non-Wood Forest Products)
Forestry Officer (Forest Genetic Resources)


G-4 Clerk-Stenographer
(transfer from AGP)
G-3 Statistical Clerk
(transfer from AGP)


G-4 Reference Clerk


AGR






AGS

ESD


ESH



ESP

FI




FO






- xxxvi -


Unit Professional General Service

DDF P-5 Senior Officer
(Field Office Inspection)

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

RNEA Immediate Office of
Regional Representative

G-4 Steno/Secretary

Administration

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

Library

G-7A Library Assistant

Internal Services

G-7B Internal Services
Supervisor
G-5 Administrative Clerk
G-5 Secretary/Typing Pool
Supervisor
G-4 Registry Clerk
G-4 Clerk-Telex/Telefax
Operator
G-4 Steno/Secretary
G-3 Receptionist
G-3 Telephone Operator
G-3 Driver
G-3 Clerk-Typist
G-3 Clerk-Typist
G-3 Clerk-Typist
G-2 Driver
G-2 Driver
G-2 Driver
G-2 Typist (E)
G-2 Typist (A)
G-1 Messenger
G-1 Messenger
G-1 Lift Operator



TOTAL 30 33






- xxxvii -


Abolished Posts


General Service


P-5 Chief, Inter-Agency Matters Unit


LEG


AGA



AGL


P-5 Senior Officer (Dairy Development)


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

P-4 Agricultural Officer
(Agrometeorology) (transfer to AGR)


G-6 Research Assistant
G-3 Records and Documen-
tation Clerk

G-5 Clerk
G-3 Bilingual Typist

G-3 Registry Clerk
G-3 Clerk-Typist

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


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


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


G-3 Clerk-Typist


G-4 Clerk-Stenographer


Unit Professional






- xxxviii -


Unit Professional General Service

ESC G-4 Research Clerk
G-4 Clerk-Stenographer

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

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

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

ESS G-6 Scheduling Assistant
G-4 Statistical Clerk
G-2 Typist

FI P-4 Fishery Industry Officer G-6 Administrative
P-4 Fishery Industry Officer Assistant
G-4 Budget Clerk
G-4 Library Clerk
G-4 Clerk-Stenographer
G-4 Clerk-Stenographer
G-3 Bilingual Typist

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

DDC D-1 Senior Adviser
D-1 Agricultural Economist
D-1 Agricultural Economist
D-1 Agricultural Economist
D-1 Fishery Officer
P-4 Project Analyst
P-4 Project Analyst
P-4 Agricultural Economist

DDF P-4 Programme Officer
P-2 Programme Officer

GIC P-4 Protocol Officer

GIL G-7 Documentation
Assistant
G-4 Library Clerk

GIP G-5 Proofreader (Spanish)
G-3 Binding and Finishing
Operator
G-3 Correspondence Clerk
(Arabic)






- xxxix -


Professional


General Service


JNEA

RAFR


RLAC


P-3 Agricultural Economist


G-5 Bilingual Clerk-
Stenographer

G-4 Cable Clerk
G-4 Bilingual Stenographer


TOTAL 19 69


NET 11 -36



4.7 The net changes in the proposed establishment are as follows:


Net Changes in Regular Programme Established Posts


1990-91


Professional


General Service


Headquarters

Regional Offices/
Joint Divisions


-60


+24


-36


-48


+23


4.8 Despite the further net reduction in posts, the high cost increases
related to Personal Services mean that expenditures on established
posts, as a proportion of total expenditure, will increase.

4.9 Expenditures on established posts, as a proportion of total
expenditure, will constitute 60.1 percent of the total budget.


Total






- XL -


Figure 3


PERCENTAGE OF APPROVED BUDGET
FOR ESTABLISHED POSTS


4.10 The figures above include the cost of salaries of staff in Regional,
Liaison and FAO Representative Offices. If these are excluded, the
proportion of expenditure on established posts to total expenditure in
1988-89 is 43.5 percent and in 1990-91 will be 46.6 percent.

Other objects of expenditure

4.11 The tables in Annex II Budget by Organizational Unit, give further
information on the proposed distribution by object of expenditure,
including cost increases. For purpose of programme comparison, the
following comments refer to changes in budgetary provisions, excluding
cost increases.

4.12 The programme provision for consultants shows a slight increase of
2.7 percent. The modesty of the increase reflects the fact that
consultants must be recruited, guided and managed by established
Regular Programme staff, and when staff resources are limited, the
capacity to use consultants is also limited. The provision for contrac-
tual services will increase by 3.5 percent. In part this is due to the
fact that contracting work to established institutions diminishes the
need for close administrative and technical backstopping, such as that
required for individual consultants. Furthermore, provision is made
under this heading for regular maintenance of word processing and
office automation equipment.


Percentage
80


75


70


65


60


55


50

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

Biennium






- xLi -


4.13 The provision for official travel will increase by 2.8 percent, to
permit continued emphasis on training and on providing advisory
services and direct support to member countries as well as attendance
by government-designated and approved experts at meetings, workshops
and consultations for which FAO bears the cost of participants' travel.
General Operating Expenses will decrease by 1.7 percent, in line with
the continued attention to economies and efficiency.

4.14 The programme provision for meetings shows a decrease of almost
5 percent. The direct costs of these meetings are shown as a separate
object of expenditure in the Tables in Annex II. In addition, Sup. 2
to the Programme of Work and Budget contains a list of the meetings
proposed to be held.

4.15 Computer Services will decrease by 8 percent following the installation
of microcomputers resulting in a slightly lower demand for central com-
puting facilities. A reduction of 1 percent is made under Publications
and Documents. The distribution of the costs of publications and
documents, and of computer services, is given in Annex II. The list of
proposed publications is given in Sup. 1 to the Programme of Work and
Budget.

Publications Revolving Fund

4.16 The provision for publications and documents in the Regular Budget is
supplemented by the Publications Revolving Fund, which uses income from
sales of official FAO publications to finance sales promotion, re-
prints, and some personnel costs connected with these activities.
Further details are given in Annex II.

Cost Increases

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

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

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






- xLii -


POST ADJUSTMENT MULTIPLIER 1988-89
(at Lire 1235/US$)
Figure 4


80


FORECAST

70
Act. 88-89



60
PWB 88-89



50




40

J FMAMJ JASON D J FMAMJ JASOND

1988 1989


GENERAL SERVICE SALARY INCREASES
1988-89 ( at Lire 1235/US$)


Figure 5


20
FORECAST


15


Act. 88-89
10


PWB 88-89
5





J FMAM J JASON D J FMAM J J ASON D


1988


1989






- xtiii -


Biennialization

4.20 The cost increases are, as previously, divided between biennialization
of additional costs or savings actually occurring during 1988-89 and
expected inflation arising during 1990-91.


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

4.22 The process can be readily appreciated from the graphs in the Figures 4
and 5 showing the post adjustments for Professional staff and the
increases in salaries of Rome-based General Service staff which were
budgeted for 1988-89. In both cases, increases were foreseen as occur-
ring during certain months of 1988-89 and as such budgeted for the
amounts involved in their expected "lifetime", e.g. at the constant
lire/dollar rate of Lit. 1 235 to US$ 1, a post adjustment in July 1988
for 18 months, and one in July 1989 for six months.

4.23 The graph of increases in the salaries of Rome General Service staff in
Figure 5 illustrates the same process as applied to a different situa-
tion. Salary increases were foreseen and budgeted for as occurring in
February 1988 and February 1989. In line with the methodology for
between-survey adjustments as approved by the Council at its Eighty-
sixth Session, an increase of 4.28 percent in net base salaries was
approved with effect from 1 June 1988. A further increase of
7.16 percent became effective 1 June 1989.

Cost increases occurring during the biennium 1990-91

4.24 Leaving aside biennialization, the second basic aspect of the cost
estimates is constituted by the cost increases related to the base
which are expected to occur at different times and thus for varying
periods of months in the biennium ahead, i.e. after 1 January 1990 but
before 31 December 1991. In addition, cost increases, which are re-
lated to the programme increases proposed in this Programme of Work and
Budget, will also occur at varying times on a partial basis during the
next biennium and must be included.

4.25 In order to calculate the total amounts, some assumptions have to be
made. They cannot be and are not based solely on expected conditions
in the host country. They take account of costs in the Regional and
FAO Representatives' Offices, in the Liaison Offices in Washington, New
York and Geneva, of worldwide trends affecting post adjustments and
salary index adjustments, and of information from other organizations
and sources.

Personal Services

4.26 As already indicated, an item-by-item review is made of known facts and
different controlled assumptions concerning different categories of
costs. Among these, the proportion of the cost of established posts to
total expenditure has been progressively reduced, but the total of






- XLiV -


Personal Services still constitutes the greater part of total expendi-
ture, albeit made up of diverse elements.

4.27 As previously indicated, in order to maintain parity of earnings in the
whole UN system, differential post adjustments are effected to compen-
sate for differences in cost of living, including those arising from
currency fluctuations, at different duty stations. The methodology and
operation for post adjustments is the responsibility of the ICSC which
has the authority to determine the post adjustment classification for
each duty station. Their decisions are applied by all agencies which
are part of the UN common system. Changes in the rate of exchange,
unlike cost of living increases, may result in immediate partial adjust-
ments.

4.28 General Service staff salaries are not uniform throughout the whole
system. They are based on periodic salary surveys of local conditions
and adjusted for movements in cost of living according to official wage
indices. For Headquarters, salary index increases are based on the
official ISTAT index. Wage indices are implemented with immediate
effect. Except to a limited extent, the payments to General Service
staff are not affected by currency fluctuations.

Incremental steps and upgradings

4.29 In both staff categories, estimates have also to be made for
"automatic" effects of within-grade steps, as well as any offsetting
factors, such as the separation of staff and new staff entering with
less seniority at a lower step. In the past, these offsetting factors
did permit compensation of the costs of the within-grade steps in full.
This is no longer the case folLowing the slowing down in external
recruitment and the increasing redeployment of internal staff. A cor-
responding increase in the budgetary provision is therefore required.

4.30 The cost of the 1988-89 upgradings, which have been absorbed during the
biennium they become effective, need to be covered under the cost
increases in line with the prevailing practice. No provision has been
made to cover the related costs which are in the order of US$ 600 000.

4.31 Common Staff Costs consist of pension fund contributions, education
grants, family allowances, home leave and family visit travel, appoint-
ment, transfer and repatriation travel, household goods and repatria-
tion grants, the General Service separation payments scheme, and
various other minor allowances. These items are treated essentially in
three different ways:

(i) certain items, e.g. pension fund contributions normally vary
directly in proportion to salaries and are treated accordingly.
Revised scales of pensionable remuneration for the Professional
and higher categories, became effective in January and May 1989.
The budgetary provision is based on the new scales while it has
been assumed that based on index movements, increases in the
pensionable remuneration levels would be approved in 1990-91 with
a resulting increase in the contribution payments;

(ii) family allowances and maximum education grant allowances are
recommended by the ICSC. The maximum education grant was raised






- XLV -


from US$ 4 500 to US$ 6 750 applicable as from the school year in
course on 1 January 1989. Within the maximum education allow-
ances, the actual amounts are affected by inflation, so that pay-
ments can be expected to vary in the future;

(iii) other items are mainly related to the cost of travel and are
treated in the same way as cost increases for travel in general.

Lapse Factor

4.32 It should be mentioned that as in previous budgets and in line with the
decision of the Finance Committee, subsequently endorsed by the Council
at its Sixty-first Session, a vacancy rate factor of 5.5 percent, the
so-called "lapse factor", is applied to costs of all established posts.
This practice is followed to allow for turnover, delayed recruitment,
separations and newly established posts; it has the effect of reducing
the budget by an amount of some US$ 20 million.

Goods and Services

4.33 These normally comprise the increase in costs of consultants, duty
travel, contractual services, supplies and equipment. In order to keep
the budget increase to a minimum, no provision is made for cost
increases which inevitably will arise in the services of consultants
and provision for duty travel in 1990-91. Such costs, whenever they
arise, will have to be absorbed within resources available. An
allowance is made for cost increases for contractual services, supplies
and equipment.

Cost Increases Tables

4.34 The following tables present details of the cost increases which have
been calculated in accordance with the methodology explained above.

4.35 In Table C a breakdown is provided of the staff costs for the
Professional and General Service staff categories. The same
information is subsequently shown in Table D as part of the overall
situation on cost increases.







- Xvi -


TABLE C

1990-91 1990-91
(programme (including
base) cost increases)

(US$ 000)

Professional Category -
Cost Increases 1990-91

Basic salaries 82 746 87 849
Post adjustments 28 511 53 064
Pension Fund contributions 21 350 26 428
Social security 3 177 5 468
Dependency allowances 1 901 2 656
Education grant 7 551 8 723
Travel on appointment, repatriation, etc. 8 540 8 540
Recruitment and separation costs 14 434 15 645


168 210 208 373



General Service Category -
Cost Increases 1990-91

Basic salaries 85 157 101 911
Pension Fund contributions 11 915 15 850
Social security 2 515 4 319
Dependency allowances 2 077 2 651
Education grant 1 093 1 366
Travel entitlements 492 492
Recruitment and separation costs 1 273 1 567
Separation payments scheme 6 204 8 472


136 628


110 726







- XLvii -


TABLE D

COST INCREASES 1990-91
(All Categories)
(US$ '000 at Lit 1 235 = US$ 1)

A B C
Biennialization Inflation
1990-91 of costs origi- arising Total Cost
Programme nally arising during Increases
Base during 1988-89 1990-91 in 1990-91

PERSONAL SERVICES

(i) Basic Professional
Salaries 82 746 911 4 192 5 103

(ii) Post Adjustments 28 511 16 403 8 150 24 553

(iii) General Service Salaries 85 157 2 651 14 103 16 754

(iv) Pension Fund Contributions 33 265 4 599 4 414 9 013

(v) Social Security 5 692 2 567 1 528 4 095

(vi) Dependency Allowances 3 978 1 001 328 1 329

(vii) Education Grant 8 644 1 445 0 1 445

(viii) Travel on Appointment
Repatriation etc. 9 032 0 0 0

(ix) Recruitment and
Separation Costs 15 707 863 642 1 505

(x) General Service Separa-
tion Payments Scheme 6 204 1 066 1 202 2 268
------------------------------------------------------------

TOTAL PERSONAL SERVICES 278 936 31 506 34 559 66 065
---------------------------------- :-------------------------------------------------------------------


SGOODS AND SERVICES

(xi) Consultants 24 980 0 0 0

(xii) Duty Travel 24 879 0 0 0

(xiii) Contractual Services 82 503 0 2 735 2 735

(xiv) Supplies and Equipment 37 029 0 3 685 3 685

(xv) General Operating
Expenses 49 533 0 4 115 4 115
-------------------------------------------------------------------------------------------------------

TOTAL GOODS AND SERVICES 218 924 0 10 535 10 535
------------------------------------------------------------------------------

GRAND TOTAL 497 860 31 506 45 094 76 600
BBBBBBBBBBBBBBBBB= = BBBB== eBBBBB== BSBBBBSSKBBBBBBBBBBa= BBBBBBBBBBB=B=BSSBBBBBBB






- XLViii -


4.36 An explanation of Table D follows:

PERSONAL SERVICES

(i) Basic Professional Salaries The new rates of staff assessment
implemented with effect from 1 April 1988 resulted in an increase in
gross salaries but did not affect net base salaries, which remained
unchanged at the level they reached in January 1985, when 20 points of
post adjustment were consolidated into base salaries. Although there
is no change in the basic salaries, additional resources are required
to cover a shortfall in the present budgetary provision as part of the
biennialization cost. This is due to the annual step increases, the
cost of which in the past was being offset by the vacancies being
filled with new staff having less years of service. This is no longer
the case following the slowing down of external recruitment and the
increasing redeployment of internal staff.

The UN General Assembly, at its 1987 session, requested the Inter-
national Civil Service Commission (ICSC) to undertake a comprehensive
review of the conditions of service of staff in the Professional and
higher categories to provide a sound and stable methodological basis
for their remuneration. The General Assembly also requested that this
study be completed and the recommendations presented to it at its
Forty-fourth Session in 1989. Pending the completion of the..above
review by the ICSC and the decision the General Assembly may take at
its 1989 session, provision has been made for an assumed 5 percent
increase in salaries and related allowances identified below.

(ii) Post Adjustment The PWB 1988-89 included provision to cover post
adjustment class 8 as from 1 January 1988 with an increase to class 9
effective 1 July. As shown in Figure 4, post adjustment class 9 became
effective in 1987 so that the entry level on 1 January 1988 was more
than a class higher than budgeted for. As a result, the 1988-89
biennium started with a budgetary shortfall of US$ 9 million which is
now part of the biennial costs. The International Civil Service
Commission, at its Twenty-seventh Session in March 1988, decided to
introduce some technical modifications to the method for the calcula-
tion of the post adjustment and, based on its review of the margin, to
lift. the freeze of the New York Index, effective 1 June 1988. On the
basis of the above decisions, the fifth scaling back of the post
adjustment index for Rome and other duty stations effective February
1988 was not implemented and the prevailing post adjustment class 9
reconfirmed with a further increase to class 10 as from August 1988.

At its Twenty-eighth Session in July 1988, the ICSC approved the
findings of the November 1987 place-to-place survey conducted in Rome,
and decided that the survey results should be implemented with effect
from 1 August 1988. As the post adjustment multiplier resulting from
the survey was found to be slightly lower (about 2 percent) than the
multiplier actually paid in November 1987, transitional measures for
Rome were applied by the ICSC producing a de facto freezing of the post
adjustment situation until May 1989, at which time post adjustment
points could be accumulated again.

As a result of the lifting of the freeze of the New York index on
1 June 1988, post adjustment class 9 was granted to New York effective
1 January 1989 and class 10 effective 1 May. The first increase in the
New York post adjustment classification was a result of the movement of






- xLix -


the local cost-of-living index. The second increase was based on the
recalculation of the margin following an increase in the UN Civil
Service salaries (the comparator) which resulted in a rebasing and
"scaling forward" of the level of indices at all other duty stations.

The impact of the above measure on the Rome post adjustment classifi-
cation was the lifting of the transitional measures earlier than antici-
pated with the concurrent resumption of the normal operation of the
system. At the prevailing rate of exchange, this resumption led to an
increase of six multiplier points (reaching class 11) effective 1 June
1989 which required a budgetary provision of US$ 1.2 million and added
a further US$ 3.6 million to the biennialization cost for 1990-91.

The combined effect of these measures led to the post adjustment
situation which, calculated at the constant rate of exchange at which
the budget had been approved, was higher than forecast in the 1988-89
Programme of Work and Budget. These changes were reported to the
Finance Committee at its Sixty-second and Sixty-third Sessions.

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

Taking this assessment as a base and according to the current rate of
inflation in the host country, provision is made to cover in 1990-91
the cost equivalent of class 12 (multiplier 80) applicable at June 1990
and class 13 (multiplier 89) at May 1991.

Additional modifications to the post adjustment system can be anticipa-
ted as a consequence of the comprehensive review. These modifications
will have to be implemented during the forthcoming biennium. It is not
feasible, however, at this stage, to forecast in detail their impact on
the FAO budget.

(iii) General Service Salaries The PWB 1988-89 was prepared assuming salary
increases of between 4 and 5 percent occurring respectively in February
1987, February 1988 and February 1989. In line with the methodology
for between-survey adjustments, as approved by the Council at its
Eighty-sixth Session, two increases become due in 1987, in February
(3.64 percent) and August (4.36 percent) respectively. The latter was
announced in November, i.e. too late to be included as a
biennialization cost in the PWB 1988-89.

A 4.28 percent increase in net salaries became effective 1 June 1988,
and a further net increase of 5.23 percent in June 1989. This latter
increase was coupled with an additional 1.93 percent increase due to
tax rebates in line with the recent changes in the Italian fiscal legis-
lation. The compounded effect on the salary and related allowances
(language and non-resident allowances) which are paid as part of the
salary package is covered under the biennialization cost.

Considering both the current rate of inflation in the host country and
the automatic adjustment in the local tax rates to eliminate any fiscal
drag, 7 percent increases can be forecast to occur in June 1990 and
February 1991. A possible further 5 percent increase (i.e. without any
revision of the applicable tax rates) might occur at the end of the
forthcoming biennium (December 1991). Budgetary provision is calcu-
lated to cover such increases.










Unbudgeted additional staff costs will arise from the implementation of
the results of the forthcoming salary survey in Rome, which has been
rescheduled by the ICSC for March/April 1990. However, any increase
resulting from the survey will offset the cost-of-living increase
accumulated during the period between the last interim adjustment to
salaries (June 1989) and the effective date of the survey. On a
provisional basis, a net 6 percent increase has been provided for in
the basic salaries and related allowances.

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

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

The granting of post adjustment classes 9 and 10 to New York resulted
in a further increase in pensionable remuneration of 5.2 percent effec-
tive 1 January 1989 and 5.7 percent effective 1 May 1989. The implemen-
tation of the last adjustment which was not budgeted does require
additional budgetary resources of US$ 800 000 in 1990-91.

In addition, the FAO contribution to the Pension Fund was increased
from 14.5 percent to 14.8 percent in July 1988 and to 15 percent effec-
tive July 1989.

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

The Pensional Remuneration Scales for General Service staff are adjust-
ed in line with the changes in the basic salary scales. Provision is
therefore made to even the impact of the changes mentioned under the
General Services Salaries above.

(v) Social Security The premium for the Basic Medical Insurance Plan
(BMIP), which is shared between the staff and the Organization,
increased by 54 percent in 1988, and on an average provisional basis,
by a further 23 percent effective 1 January 1989, pending the finaliza-
tion of arrangements for the introduction of a cost sharing system for
the After Service Medical Scheme.

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

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






- Li -


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

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

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

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

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

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

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

(viii) Travel No provision has been made for cost increases arising in
1990-91 on the premise that the additional costs will be absorbed
through economy measures.

(ix) Recruitment and Separation Costs The present provision is considered
to be almost sufficient to cover the expected costs taking into account
the many posts hitherto frozen for which recruitment action is
gradually taking place. A relatively small increase is, however, re-
quired to cover increasing payments for rental supplements and assign-
ment allowances following the introduction of some modifications of the
latter in late 1987.

(x) General Service Separation Payments Scheme The funding and payment
requirements under the Separation Scheme are increasing in line with
the salary adjustment. The increases in 1988-89 mentioned under the
section on General Service Salaries above, call for an increase in the
funding base, which has been calculated at US$ 1 118 000. Provision is
made for the funding requirement which is expected to arise in 1990-91.
In accordance with the recommendation of the Finance Committee, the
share of the separation payments chargeable to the annual budget
remains at 50 percent.






- Lii -


GOODS AND SERVICES

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

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

(xiii) Contractual Services This category covers a wide variety of programme
services provided under contractual arrangements such as interpreta-
tion, translation, contractual printing and binding, contributions to
jointly-financed administrative activities, external auditors, etc.
The overall expected increases in 1990-91 are estimated to reach some
3 percent for the biennium.

(xiv) Supplies and Equipment and General Operating Expenses These cover all
supplies and equipment and items such as postal charges, cable, tele-
phones, rent, utilities, cleaning and maintenance services, etc. The
increases have been calculated taking account of the actual increase of
rent as well as trends in prices separately for each item, in accord-
ance with the methodology used for the other categories. The increase
for Supplies and Equipment is 10 percent while the increase for General
Operating Expenses is 8 percent.

Summary

4.37 An amount of US$ 76 600 000 is required as the total of cost increases,
i.e. biennialization plus inflation. This includes a cost increase of
US$ 76 350 000 required to maintain the same level of programme plus an
amount of US$ 250 000 to bring the programme increases up to full costs
in real 1990-91 terms. The cost increase on the 1990-91 programme base
amounts to 15.39 percent.

4.38 It is also worth noting that 86 percent of the cost increases are for
staff costs. They are of a mandatory nature, since they reflect
entitlements and indexed increases foreseen under the prevailing con-
tractual agreements governing staff payments, including the reductions
applied to some of them.

4.39 It must be recognized that the present economic and currency situation
adds considerably to the uncertainty regarding a forecast which has to
cover cost developments over a period of almost three years from the
time of preparation. Development of indices and price trends have
therefore been watched very carefully and taken into account. The
envisaged cost increases of US$ 76 600 000 represent the best estimate
of cost increases which can be projected on the basis of the
information available.

Currency Factor

4.40 In recent biennia, all figures in the Summary Programme of Work and
Budget and in the final document have been calculated at the rate
adopted by the previous session of the Conference, pending a decision







- Liii -


by the next Conference at the time it adopts the Appropriations
Resolution on the rate to be applied for the next biennium. Subsequent
fluctuations are reflected in the Special Reserve Account to the extent
that the maximum provision therein permits.

4.41 The figures in this document are, as usual, all included at the rate of
Lit. 1 235 = US$ 1, the rate adopted by the Conference at its Twenty-
fourth Session, when approving the Programme of Work and Budget 1988-89.

4.42 Since the rate is likely to fluctuate in the coming months, the budget
level could change considerably as shown in the following hypothetical
examples:

Hypothetical 1990-91 Budget Level at different
Lire/US Dollar Rates


Rate Lire/US Dollar Total


1 235 574 460 000
1 300 564 660 000
1 325 560 820 000
1 350 557 140 000
1 375 555 260 000
1 400 552 160 000
1 425 549 260 000
1 450 546 300 000

4.43 The Conference will be provided with the necessary updated information
on rates as a basis for its decision. In the light of the Conference
decision and the necessary adjustment of the budget level, the Director-
General will subsequently make the necessary detailed adjustments in
the budget appropriations.

Comparison with 1988-89

4.44 The following comparison is in accordance with the methodology recom-
mended by the Finance Committee, and approved by the Conference at its
Twentieth Session.






- Liv -


Comparison
(US$ '000)


1988-89
(at Lit.l 235
= US$ 1


437 000


(1) Base


1990-91
(at Lit.1 235
= US$ 1


492 360


1990-91
(at Lit.l 350
= US$ 1


492 360


(2) Cost Increase


54 165 12.39%


491 165


(3) Programme Increase

(4) Cost Increase on (3)


1 135 0.23%

60 0.01%


492 360


76 350 15.51%

568 710

5 500 0.97%

250 0.04%


574 460


59 030 11.99%

551 390


5 500

250


1.00%

0.05%


557 140


Financing

4.45 In 1990-91, Miscellaneous Income will again be available as a deduction
to be made from the expenditure budget before reaching the assessment
budget.

4.46 Miscellaneous Income is estimated at US$ 12 000 000 for 1990-91. The
estimate is deliberately conservative. The estimated breakdown of the
total, compared with the breakdown of the Miscellaneous Income foreseen
in the Programme of Work and Budget 1988-89, and the latest forecast for
the actual income in 1988-89, is indicated below:

Miscellaneous Income 1990-91
(US$ '000)


Item


Interest on Bank Accounts
and Deposits

Refund of Prior Periods'
Expenditure and Lapse of
Prior Periods' Unliqui-
dated Obligations

Income from Commissary

Balance of Publications
Revolving Fund

Other


TOTAL


1988-89
PWB


5 020




4 500

50


50

2 100

11 720


Latest 1988-89
Forecast


6 100


5 300


4 300

16 050


1990-91
Estimate


5 090




4 500


2 300

12 000






- LV-


The Miscellaneous Income foreseen for 1990-91 is somewhat below the
actual income forecast for 1988-89, but in line with the amount
budgeted for 1988-89. The major part of the 1990-91 income expected
consists of interest earned on funds available for investment. The
estimate for 1990-91 assumes an interest rate of 5.5 percent. Income
derived from prior years' refunds is expected to be at the same level as
budgeted in 1988-89.

4.47 The expected share of Member Nations in the financing of the total
effective working budget for 1990-91 is indicated below:

1988-89 1990-91 1990-91
US$ 000 US$ 000 US$ 000
(at Lit.l 235) (at Lit.l 235) (at Lit.1 350)


Total effective
working budget 492 360 574 460 557 140

Less Miscellaneous
Income 11 720 12 000 12 000


Member Nations'
Contributions 480 640 562 460 545 140



4.48 At its Ninety-fifth Session, the Council considered the Scale of
Contributions for 1990-91. The Council agreed with the view of the
Sixty-fifth Session of the Finance Committee, and recommended that the
Conference adopt for 1990-91 the Scale of Contributions derived directly
from the United Nations Scale of Assessment in force in 1989.






- LVi


DRAFT RESOLUTION FOR ADOPTION
BY THE CONFERENCE


BUDGETARY APPROPRIATIONS 1990-91

THE CONFERENCE

Having considered the Director-General's Programme of Work and Budget and the
conclusions of its Commissions;

1. Approves the Programme of Work proposed by the Director-General for
1990-91;

2. Resolves that for the financial period 1990-91:

(a) Appropriations 1/ are voted for the following purposes:

US$
Chapter 1 General Policy and Direction 41 108 000
Chapter 2 Technical and Economic Programmes 276 753 000
Chapter 3 Development Support Programmes 88 861 000
Chapter 4 Technical Cooperation Programme 67 767 000
Chapter 5 Support Services 81 535 000
Chapter 6 Common Services 17 836 000
Chapter 7 Contingencies 600 000

Total effective working budget 574 460 000
Chapter 8 Transfer to Tax Equalization Fund 69 300 000

Total Appropriations (Gross) 643 760 000


(b) The appropriations (gross) voted in paragraph (a) above, shall be
financed by assessments on Member Nations, after deduction of
Miscellaneous Income in the amount of US$ 12 000 000, thus
resulting in assessments against Member Nations of
US$ 631 760 000.

(c) In establishing the actual amounts of contributions to be paid by
individual Member Nations, the assessment of each Member Nation
shall be reduced by any amount standing to its credit in the Tax
Equalization Fund provided that the credit of a Member Nation
that levies taxes on the salaries, emoluments and indemnities
received from FAO by staff members shall be reduced by the
estimated amounts of such taxes to be reimbursed to the staff
member by FAO.

(d) The contributions due from Member Nations in 1990 and 1991 shall
be paid in accordance with the scale adopted by the Conference at
its Twenty-fifth Session, which contributions, after the deduc-
tion of amounts standing to the credit of Member Nations in the
Tax Equalization Fund, result in net amounts payable totalling
US$ ........... as set out in Appendix ..... to this Report.


I/ Calculated at Lit. 1 235 = US$ 1; final rate to be determined by
Conference and figures to be changed accordingly.






















PROGRAMME BUDGET







SUMMARY OF ESTIMATES BY CHAPTER AND MAJOR PROGRAMME ($000, All Funds)
..........---------------------------------------------------------------------------------------------------------


Chapter and Major Programme


Regular Programme
............................................................
1988-89 1990-91
Approved Budget Budget
-------------- Programme 1990-91 Cost -------------
$000 % Change Base Increase $000 %


Extra-
Budgetary
Funds


Total Funds
1990-91
$000 %
$000 %


S General Policy and Direction

1.1 Governing Bodies
1.2 Policy, Direction and Planning
1.3 Legal
1.4 Liaison


.Total Chapter 1


34 205 7.0


0 34 205 6 903 41 108 7.2 4 932 46 040 3.4


2 Technical and Economic Programmes

2.1 Agriculture
2.2 Fisheries
:.3 Forestry

Total Chapter 2

3 Development Support Programmes

3.1 Field Programme Liaison and Development
3.2 Investment
-.3 Special Programmes
3.4 FAO Representatives
3.9 Programme Management

"tal 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


36.9
6.2
4.3


2 296
592
648


184 042
31 317
21 643


214 346
36 871
25 536


37.3
6.4
4.4


524 112
66 139
115 962


54.7
7.6
10.5


233 466 47.4 3 536 237 002 39 751 276 753 48.2 706 213 982 966 72.9


0
(428)
0
428
0


77 077 15.7


0 77 077 11 784 88 861 15.5 32 462 121 323 9.0


63 148 12.8 1 750 64 898 2 869 67 767 11.8


18 796
46 950
2 027


67 559 13.7

16 305 3.3


600 0.1


3 718 22
9 563 56
481 2


214 67 773 13 762 81 535 14.1


0 67 767 5.0


4 207 26 721 "2:0
21 410 77 923 5.8
695 3 203 0.2

26 312 107 847 8.0


0 16 305 1 531 17 836 3.1 4 843 22 679 1.7


0 600


0 600 0.1


0 600 0.0


GRAND TOTAL 492 360 100.0 5 500 497 860 76 600 574 460 100.0 774 762 1 349 222 100.0

* Increase (Decrease)
* Increase (Decrease)


0
306
0
(306)


2 487
2 122
837
1 457


0
4 454
62
416






-3 -


INTRODUCTION






1. The structure of the programme budget, as first applied in the
Programme of Work and Budget 1978-79, has seen some changes effected at
the level of sub-programmes, as approved by the Programme Committee and
the Council. The present programme structure is given in the table
following this Introduction.

Structure of Narratives for Chapter 2

2. The Organization's programme is a unified one, executed jointly by
Headquarters and Regional Offices. Provisions for the latter appear as
separate sub-programmes within each programme. Information on Regional
Office activities is given in the Regional Annex. The sub-programme
narratives in the programme budget therefore cover the work of the
Headquarters' divisions.

3. The sections on Medium-term Objectives and Focus of the Programme apply
to the unified programme. In these sections, clear definition of
objectives has been sought, which of necessity depend primarily on
action by Member Governments themselves, and explicit descriptions of
how the Organization's work is linked to that of other organizations
and how it relates to that of the member countries to which it provides
assistance.

4. FAO's computerized Programme Planning and Monitoring System (PLANSYS)
is now well established and permits inter alia to translate the
biennial budget into detailed plans for annual implementation,
monitoring and reporting. At present, the system applies to Chapter 2:
Technical and Economic Programmes, and is used by the Headquarters'
technical divisions, and by the Regional Offices for their work under
these programmes.

5. The preparation of annual workplans involves the breakdown of Chapter 2
sub-programmes into components or programme elements. One of the
PLANSYS features is to capture information down to programme element
level. This capability is used in the narratives and tables under the
section "Plan of Action" to facilitate the consideration of proposals
by FAO Governing Bodies. Each of these elements has a defined
objective, which contributes to the broader objectives of the sub-
programme. Elements tend to continue from one biennium to the next, as
their objectives cannot generally be achieved in a short time period.
However, each element is further broken down into activities, with
clearly-specified outputs to be produced within the year or the
biennium. Once activities have been defined, PLANSYS records the
resources, or inputs, required to support the activities in a given
year; the inputs generally correspond to the Organization's traditional
objects of expenditure, i.e. staff resources, travel, meetings,
publications, computer services, etc. The narratives under each
substantive sub-programme explain the proposed application of resources
and include mention of the main outputs expected to be delivered in the
next biennium.






-4 -


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

Field Programme Support and Programme Management

7. In accordance with past practice, resources allocated to individual
programmes for support to the Field Programme, and for management of
the programme, are shown under sub-programmes coded 2XX8 and 2XX9
respectively.

8. Field Programme activities are closely linked to the activities of the
Regular Programme, both conceptually and operationally. "Field
Programme Support" constitutes the Regular Programme contribution for
technical backstopping of the Field Programme since support cost reim-
bursement from funding sources is essentially limited to coverage of
non-technical backstopping. The provisions made for Field Programme
Support apply to all external material and technical assistance
activities, whether funded by UNDP, other programmes and institutions
or Trust Funds, and involve technical backstopping of experts and
consultants, and assistance in formulation and monitoring of projects.
The relevant sub-programmes indicate the resources estimated to be
required under each programme; these are primarily for staff costs,
with some small provision made for related operational costs, such as
travel.

9. Resources allocated for programme management generally cover the staff
costs and related operational funds for divisional direction and pro-
gramming, as well as provisions for those expenses (cables, photo-
copying, general office supplies) which cannot, for practical reasons,
be assigned to substantive sub-programmes. The following tables show
the provisions for these sub-programmes within Chapter 2:






-5 -


Field Programme Support

(US$ '000)


1988-89
Sub-programme Approved Programme Cost 1990-91
Budget Change Increase Budget


2.1.1.8 Natural Resources

2.1.2.8 Crops

2.1.3.8 Livestock

2.1.4.8 Research & Technology
Development

2.1.5.8 Rural Development

2.1.6.8 Nutrition

2.1.7.8 Food and Agricultural
Information and Analysis

2.1.8.8 Food & Agricultural Policy

2.2.1.8 Fisheries Information

2.2.2.8 Fisheries Exploitation
and Utilization

2.2.3.8 Fisheries Policy

2.3.1.8 Forest Resources and
Environment

2.3.2.8 Forest Industries and
Trade

2.3.3.8 Forest Investment and
Institutions


532

1 105

403


2 373

409


894


611


658


102

0

(118)


162

13

(421)


313

62

0


27

0


161


(99)


(56)


636

746

475


149

693

250


174

278

82


579

64


251


122


138


* Increase (Decrease)


566

813

431


747

739

823


019

445

485


2 979

473


1 306


634


740


Total 20 417 146 4 637 25 200






-6 -


Programme Management

(US$ '000)


1988-89
Sub-programme Approved Programme Cost 1990-91
Budget Change Increase Budget



2.1.1.9 Natural Resources 1 213 (52) 257 1 418

2.1.2.9 Crops 1 919 0 379 2 298

2.1.3.9 Livestock 974 (36) 174 1 112

2.1.4.9 Research & Technology
Development 1 086 0 240 1 326

2.1.5.9 Rural Development 1 972 36 357 2 365

2.1.6.9 Nutrition 1 006 0 235 1 241

2.1.7.9 Food and Agricultural
Information and Analysis 1 920 (125) 401 2 196

2.1.8.9 Food & Agricultural Policy 1 880 20 428 2 328

2.1.9 Programme Management 7 268 113 1 185 8 566

2.2.9 Fisheries 5 039 173 1 117 6 329

2.3.9 Forestry 4 246 580 1 071 5 897

Total 28 523 709 5 844 35 076


* Increase (Decrease)






-7 -


PROGRAMME STRUCTURE






CHAPTER 1 GENERAL POLICY AND DIRECTION


1.1 Governing Bodies

1.1.1 Conference and Council

1.1.1.1 Conference
1.1.1.2 Council
1.1.1.3 Finance Committee
1.1.1.4 Programme Committee
1.1.1.5 Committee on Constitutional and Legal Matters
1.1.1.6 Other Council Committees
1.1.1.7 Regional Conferences
1.1.1.8 Meetings of Permanent Representatives
1.1.1.9 McDougall Memorial Lecture, B.R. Sen and
A.H. Boerma Awards

1.1.2 Conference Services

1.2 Policy, Direction and Planning

1.2.1 Director-General's Office

1.2.2 Programme Planning, Budgeting and Evaluation

1.2.2.1 Programme Planning and Budgeting
1.2.2.2 Evaluation

1.2.3 Audit

1.2.3.1 Internal Audit
1.2.3.2 External Audit

1.3 Legal

1.4 Liaison

1.4.1 Inter-Agency Affairs

1.4.2 Liaison and Protocol

1.4.2.1 Headquarters
1.4.2.2 North America
1.4.2.3 United Nations






- 8 -


CHAPTER 2 TECHNICAL AND ECONOMIC PROGRANMES


2.1 Agriculture

2.1.1 Natural Resources

2.1.1.1 Assessment and Planning
2.1.1.2 Farming Systems Development
2.1.1.3 Soil Management and Fertilizers
2.1.1.4 Water Development and Management
2.1.1.5 Conservation and Reclamation
2.1.1.6 Sustaining Resource Potentials
2.1.1.7 Regional Offices
2.1.1.8 Field Programme Support
2.1.1.9 Programme Management

2.1.2 Crops

2.1.2.1 Genetic Resources
2.1.2.2 Crop Improvement and Management
2.1.2.3 Seeds
2.1.2.4 Crop Protection
2.1.2.5 Agricultural Engineering and Prevention of Food Losses
2.1.2.6 Food and Agricultural Industries
2.1.2.7 Regional Offices
2.1.2.8 Field Programme Support
2.1.2.9 Programme Management

2.1.3 Livestock

2.1.3.1 Grassland, Forage and Feed Resources
2.1.3.2 Animal Health
2.1.3.3 Genetic Resources
2.1.3.4 Dairy Development
2.1.3.5 Meat Development
2.1.3.6 Livestock Production
2.1.3.7 Regional Offices
2.1.3.8 Field Programme Support
2.1.3.9 Programme Management

2.1.4 Research and Technology Development

2.1.4.1 Research Development
2.1.4.2 Agricultural Applications of Isotopes and Biotechnology
2.1.4.3 AGRIS and CARIS
2.1.4.4 Remote Sensing and Agrometeorology
2.1.4.5 Environment and Energy
2.1.4.7 Regional Offices
2.1.4.8 Field Programme Support
2.1.4.9 Programme Management









CHAPTER 2 TECHNICAL AND ECONOMIC PROGRAMMES (Cont'd)


2.1 Agriculture (Cont'd)

2.1.5 Rural Development


2.1.5.1.1
2.1.5.1.2
2.1.5.2
2.1.5.3
2.1.5.4
2.1.5.5
2.1.5.6
2.1.5.7
2.1.5.8
2.1.5.9


2.1.6 Nutrition


2.1.6.1
2.1.6.2
2.1.6.3
2.1.6.4
2.1.6.5

2.1.6.7
2.1.6.8
2.1.6.9


Agricultural Education, Extension and Training
Development Support Communications
Agrarian Reform and Land Settlement
Rural Institutions and Employment
Women in Agriculture and Rural Development
Marketing
Credit
Regional Offices
Field Programme Support
Programme Management



Food and Nutrition Assessment
Nutrition Programmes
Food Control and Consumer Protection
Nutrition Policy at Country Level
Joint FAO/WHO Food Standards Programme (Codex
Alimentarius)
Regional Offices
Field Programme Support
Programme Management


2.1.7 Food and Agricultural Information and Analysis


Statistical Processing and Analysis
Situation and Outlook
Food Information and Early Warning System
Statistical Development
Regional Offices
Field Programme Support
Programme Management


2.1.8 Food and Agricultural Policy


Global Perspective Studies
Agricultural Policy Analysis
Commodity Policies and Trade
World Food Security
Agricultural Planning Assistance
Regional Offices
Field Programme Support
Programme Management


2.1.9 Programme Management


Agriculture Department
Economic and Social Policy Department
Regional Offices


2.1.7.1
2.1.7.2
2.1.7.3
2.1.7.4
2.1.7.7
2.1.7.8
2.1.7.9


2.1.8.1
2.1.8.2
2.1.8.3
2.1.8.4
2.1.8.5
2.1.8.7
2.1.8.8
2.1.8.9


2.1.9.1
2.1.9.2
2.1.9.7






- 10


CHAPTER 2 TECHNICAL AND ECONOMIC PROGRAMMES (Cont'd)


2.2 Fisheries

2.2.1 Fisheries Information


2.2.1.1
2.2.1.2
2.2.1.7
2.2.1.8


Aquatic Sciences and Fisheries Information
Fishery Data and Statistics
Regional Offices
Field Programme Support


2.2.2 Fisheries Exploitation and Utilization


2.2.2.1
2.2.2.2
2.2.2.3
2.2.2.4
2.2.2.7
2.2.2.8


Marine Resources and En
Inland Fisheries and Aq
Fish Production
Fish Utilization and Ma
Regional Offices
Field Programme Support


vironment
uaculture


rketing


2.2.3 Fisheries Policy


2.2.3.1 Fisheries Policy and Planning
2.2.3.2 International Coordination and Liaison
2.2.3.7 Regional Offices
2.2.3.8 Field Programme Support

2.2.9 Programme Management

2.2.9.1 Departmental Direction
2.2.9.2 Divisional Direction
2.2.9.7 Regional Offices

2.3 Forestry

2.3.1 Forest Resources and Environment

2.3.1.1 Development and Management of Forests
2.3.1.2 Tree Improvement and Plantations
2.3.1.3 Conservation and Wildlife
2.3.1.4 Forest Food, Fodder and Fuelwood Systems
2.3.1.5 Tropical Forestry Action Plan
2.3.1.7 Regional Offices
2.3.1.8 Field Programme Support

2.3.2 Forest Industries and Trade

2.3.2.1 Development of Forest Industries
2.3.2.2 Trade and Marketing
2.3.2.3 Forest Harvesting and Transport
2.3.2.7 Regional Offices
2.3.2.8 Field Programme Support






- 11 -


CHAPTER 2 TECHNICAL AND ECONOMIC PROGRAMMES (Cont'd)


2.3 Forestry (Cont'd)

2.3.3 Forest Investment and Institutions

2.3.3.1 Training and Institutions
2.3.3.2 Investment Planning and Statistics
2.3.3.3 Forest Policies and Information
2.3.3.4 Community Forestry Development
2.3.3.7 Regional Offices
2.3.3.8 Field Programme Support

2.3.9 Programme Management

2.3.9.1 Departmental Direction
2.3.9.2 Divisional Direction
2.3.9.7 Regional Offices


CHAPTER 3 DEVELOPMENT SUPPORT PROGRAMMES


3.1 Field Programme Liaison and Development

3.2 Investment

3.2.1 FAO/World Bank Cooperative Programme
3.2.2 Investment Support Programme
3.2.9 Programme Management

3.3 Special Programmes

3.3.1 Freedom-from-Hunger Campaign/Action for Development
3.3.2 Andre Mayer Fellowships

3.4 FAO Representatives

3.9 Programme Management


CHAPTER 4 TECHNICAL COOPERATION PROGRAMME


CHAPTER 5 SUPPORT SERVICES


5.1 Information and Documentation

5.1.1 Public Information
5.1.2 Library
5.1.3 Publications






- 12 -


CHAPTER 5 SUPPORT SERVICES (Cont'd)


5.2 Administration

5.2.1 Administrative Services
5.2.2 Financial Services
5.2.3 Computer Services
5.2.4 Personnel Services


5.9 Programme Management

5.9.1 General Affairs and Information
5.9.2 Administration and Finance


CHAPTER 6 COMMON SERVICES


CHAPTER 7 CONTINGENCIES


CHAPTER 8 TRANSFER TO TAX EQUALIZATION FUND








- 13 -


Chapter 1-GENERAL POLICY AND

DIRECTION














SUMMARY OF ESTIMATES BY PROGRAMME ($000, All Funds)


Regular Programme


1988-89 Extra Total
Major Programme/Programme Approved Programme 1990-91 Cost 1990-91 Budgetary Funds
Budget Change* Base Increase Budget Funds 1990-91



1.1 Governing Bodies


1.1.1 Conference and Council 9 197 0 9 197 1 628 10 825 0 10 825
1.1.2 Conference Services 3 960 0 3 960 859 4 819 0 4 819


Major Programme 1.1 Total 13 157 0 13 157 2 487 15 644 0 15 644


1.2 Policy, Direction and Planning


1.2.1 Director-General's Office 3 782 0 3 782 815 4 597 874 5 471
1.2.2 Programme Planning, Budgeting 3 943 162 4 105 918 5 023 1 258 6 281
and Evaluation
1.2.3 Audit 1 914 144 2 058 389 2 447 2 322 4 769


Major Programme 1.2 Total 9 639 306 9 945 2 122 12 067 4 454 16 521


1.3 Legal 3 687 0 3 687 837 4 524 62 4 586


1.4 Liaison


1.4.1 Inter-Agency Affairs 2 635 (162) 2 473 529 3 002 120 3 122
1.4.2 Liaison and Protocol 5 087 (144) 4 943 928 5 871 296 6 167

Major Programme 1.4 Total 7 722 (306) 7 416 1 457 8 873 416 9 289



CHAPTER 1 TOTAL 34 205 0 34 205 6 903 41 108 4 932 46 040


* Increase (Decrease)







- 14 -


Major Prograre 1.1 GOVERNING BODIES




Progranne 1.1.1 (onferece and Gincil



..........................................-------------------------------------------------------..
1988-89 Programme Cost, 1990-91 Work Extra-
Sub-Programme Approved Change Increase Budget Years Budgetary
Budget Funds
-----------------------------------------------------------------------------
1.1.1.1 Conference 3 224 0 1 023 4 247 0.0 0
1.1.1.2 Council 2 739 0 369 3 108 0.0 0
1.1.1.3 Finance Committee 727 0 64 791 0.0 0
1.1.1.4 Programme Committee 458 0 11 469 0.0 0
1.1.1.5 Committee on Constitutional and 214 0 17 231 0.0 0
Legal Matters
1.1.1.6 Other Council Committees 130 0 0 130 0.0 0
1.1.1.7 Regional Conferences 1 303 0 122 1 425 0.0 0
1.1.1.8 Meetings of Permanent 365 0 19 384 0.0 0
Representatives
1.1.1.9 McDougall Memorial Lecture, B.R. 37 0 3 40 0.0 0
Sen and A.H. Boerma Awards
-----------------------------------------------------------------------------
Programme 1.1.1 Total 9 197 0 1 628 10 825 0.0 0
..........................................--------------------------------------------------------..
* Increase (Decrease)


Nature of the Programme

1. This programme covers the direct costs in relation to sessions of FAO
Governing Bodies, Regional Conferences and meetings of Permanent
Representatives in Rome, including documentation, interpretation and
other short-term staff, and travel of Government Representatives in
accordance with the Financial Regulations. Expenditures related to the
B.R. Sen and A.H. Boerma Awards as well as the McDougall Memorial
Lecture are also covered by this programme.

Change in Resources

2. After reductions in the last three biennia, no change is proposed. The
range of services to be provided to FAO Governing Bodies is expected to
be similar to that in the current biennium.




1990-91 ESTIMATES BY REGION, FUND AND UNIT ($000, All Funds)

-------------------------------------------------------------------
Region Fund Unit
-------------------------------------------------------------------
Global 9 400 RP 10 825 GIC 10 825
Africa 314
Asia and Pacific 356
Near East 200
Europe 200
Latin America 355

TOTAL 10 825 10 825 10 825
-------------------------------------------------------------------







- 15 -


Prograd l 1.1.2 Cnferene Services










...................................................................................................
1988-89 Programme Cost 1990-91 Work Extra-
Sub-Programme Approved Change Increase Budget Years Budgetary
Budget Funds
.--------------------------------------------------------------------------------------------------
1.1.2.0 Conference Services 3 960 0 859 4 819 49.9 0
.-------------------------------------------------------------------------------------------------..
Programme 1.1.2 Total 3 960 0 859 4 819 49.9 0
-----------------------------------------------------------------------------------------------------
SIncrease (Decrease)





Nature of the Programme

1. This programme, which is of a continuing nature, provides secretariat
services to the Conference and Council and supervision of in-house
interpretation staff. In addition, ongoing functions are to schedule,
coordinate and support other FAO sessions and training activities at
Headquarters and abroad, and to process circular letters and other
formal correspondence from the Director-General to Member Governments.

Change in Resources

2. No change is proposed.







1990-91 ESTIMATES BY REGION, FUND AND UNIT ($000, All Funds)


Region


Fund


Unit


Global
Africa
Asia and Pacific
Near East
Europe
Latin America


4 819 RP


4 819 GIC


TOTAL 4 819 4 819 4 819
---------------------------------------------------------------------------------


4 819







- 16 -


MajorProgramn 1.2 POLICY, DIRECTION AND

PLANNING




Proglrae 1.2.1 Director-Gneral's Offire


Sub-Programme


1988-89 Programme Cost 1990-91 Work
Approved Change Increase Budget Years
Budget


1.2.1.0 Director-General's Office 3 782 0

Programme 1.2.1 Total 3 782 0

* Increase (Decrease)





Nature of the Programme


4 597 48.0 874

4 597 48.0 874


This programme covers the immediate Offices of the Director-General and
the Deputy Director-General. No change is made for 1990-91.







1990-91 ESTIMATES BY REGION, FUND AND UNIT ($000, All Funds)


Region


Fund


Unit


Global 5 471 RP 4 597 ODG 5 471


Africa
Asia and Pacific
Near East
Europe
Latin America


0 Govt.Programmes
0 UNDP


TOTAL 5 471 5 471 5 471


Extra-
Budgetary
Funds


- - - - - - - - - - - - - - - - - - -






- 17 -


Progranme 1.2.2 Programne Plarming, Budgeting and Evaluation












...................................................................................................
1988-89 Programme Cost 1990-91 Work Extra-
Sub-Programme Approved Change Increase Budget Years Budgetary
Budget Funds
--------------------------------------------------------------------------------------------------
1.2.2.1 Programme Planning and Budgeting 2 765 0 639 3 404 40.0 480
1.2.2.2 Evaluation 1 178 162 279 1 619 16.0 778
---------------------------------------------------------------------------------------------------
Programme 1.2.2 Total 3 943 162 918 5 023 56.0 1 258
..--------------------------------------------------------------------------------------------------
SIncrease (Decrease)





Nature of the Programme

1. This programme covers a range of activities in connection with the
formulation and monitoring of implementation of the biennial Programme
of Work and Budget, including related advisory services to FAO's
Governing Bodies and top management. It also serves as focal point for
all evaluation activities. For instance, periodic analysis of progress
and results are required to assist the Director-General in making
timely adjustments to current programmes. Evaluation of past and
current activities, including field projects, is required to provide
feedback and essential information for preparation of future programmes
and budgets. Programme management information systems enable budgetary
control and programme implementation monitoring at both central and
decentralized levels. Developments in other agencies of the UN system
are taken into account and demands for inter-agency coordination and
for contributions to inter-agency reports emanating from various
external units and bodies are met as required.

Objectives and Plan of Action

2. Under instructions from the Director-General, the Office will lead the
Organization-wide formulation, implementation and evaluation of long-,
medium- and short-term objectives, programmes and budgets and detailed
workplans, reporting thereon to the Director-General and to Conference
and Council Committees, including in particular the Programme and
Finance Committees. As required by the evolving resource situation and
external factors, programme and budgetary adjustments will be
formalized. External demands for coordination activities and reports
will be dealt with. The Office will continue to act as focal point for
contacts with the Joint Inspection Unit (JIU) and to ensure coordinated
inputs to JIU reports and their handling. Developments concerning
extra-budgetary resources and support costs reimbursements from extra-
budgetary programmes will continue to be closely monitored. The Office






- 18 -


will continue its function of clearing-house for correct budget formu-
lation of field projects. Computerized programme planning and moni-
toring and budgetary control systems for the Office's own use and/or
Organization-wide use will continue to be developed. Interface with
other major administrative information systems will be ensured.

3. All elements of FAO's comprehensive evaluation procedures will be
actively pursued.. Auto-evaluation reports submitted by FAO programme
managers will be analysed. The Office will prepare the Review of the
Regular Programme; will contribute to preparation of the Review of
Field Programmes; will continue to organize selective external
evaluations of specific programmes; and will also conduct ad hoc
reviews of specific programmes or programme elements. Field project
and programme evaluation missions will aim at improving the overall
approach to technical assistance as well as the effectiveness of
individual projects.

Change in Resources

4. In response to repeated calls for the strengthening of FAO evaluation
activities, a new P-5 post of Senior Evaluation Officer is proposed.






1990-91 ESTIMATES BY REGION, FUND AND UNIT ($000, All Funds)


Region Fund Unit

Global 6 281 RP 5 023 PBE 6 281
Africa 0 Govt.Programmes 577
Asia and Pacific 0 UNDP 606
Near East 0 WFP 75
Europe 0
Latin America 0


TOTAL 6 281


6 281


6 281






- 19 -


Program 1.2.3 Audit











...................................................................................................
1988-89 Programme Cost 1990-91 Work Extra-
Sub-Programme Approved Change Increase Budget Years Budgetary
Budget Funds
------------------------------------------------------------ ---------------------------------------
1.2.3.1 Internal Audit 1 506 144 389 2 039 26.0 1 404
1.2.3.2 External Audit 408 0 0 408 0.0 918
----------------------------------------------------------------------------------------------------
Programme 1.2.3 Total 1 914 144 389 2 447 26.0 2 322
----------------------------------------------------------------------------------------------------
SIncrease (Decrease)




Nature of the Programme

1. Internal Audit is the mechanism by which management can ensure that
internal controls over programme delivery are subject to independent
and continuous review. By examining the evidence of internal controls
over delivery, audit review provides an assessment of the continuing
adequacy and proper functioning of such internal controls and the
orderliness of operations. In so doing, the audit process provides a
basis for assisting management in further improving the effectiveness
and efficiency of the Organization, particularly through the introduc-
tion and development of advanced management systems and methods.

2. The scope of internal audit work covers not only the financial records,
but all underlying processes which include the methods of budgetary and
management information control as well as procurement, recruitment,
custody and safeguarding of assets, and the implementation of the field
projects. The extent of this task is exemplified by the scale, diver-
sity and nature of FAO's operations which are performed in many devel-
oping countries and embrace several thousand activities and projects.

Objectives and Plan of Action

3. The objectives are to ensure the propriety of the Organization's opera-
tions from the viewpoint of financial regularity; conformity with
appropriations or provisions voted by the Conference and the purposes,
rules and provisions relating to the funds concerned; and to assist
management in the continuing improvement of economy, effectiveness and
efficiency.

4. The audit strategy will continue to comprise a combination of financial
and management audits involving systems-based review and evaluation of
the Organization's financial and administrative arrangements. This
work will be performed at Headquarters, Regional and Country Offices
and field projects.







- 20 -


Change in Resources

5. The proposed change in resources is to cover increased requirements for
clerical and secretarial assistance.







1990-91 ESTIMATES BY REGION, FUND AND UNIT ($000, All Funds)


Region Fund Unit

Global 4 769 RP 2 447 AUD (Int.) 3 443
Africa 0 Govt.Programmes 862 AUD (Ext.) 1 326
Asia and Pacific 0 UNDP 705
Near East 0 WFP 755
Europe 0
Latin America 0

TOTAL 4 769 4 769 4 769






- 21 -


Major Pograme 1.3 LEGAL








...................................................................................................
1988-89 Programme Cost 1990-91 Work Extra-
Programme Approved Change* Increase Approved Years Budgetary
Budget Budget Funds
.--------------------------------------------------------------------------------------------------
1.3.0 Legal 3 687 0 837 4 524 50.0 62
.---------------------------------------------------------------------------------------------------
Major Programme 1.3 Total 3 687 0 837 4 524 50.0 62
-----------------------------------------------------------------------------------------------
SIncrease (Decrease)




Nature of the Programme

1. The programme provides legal services both for the internal management
of the Organization and as technical assistance to Member Nations. The
main thrusts of the programme continue to be twofold. On the one hand,
the provision of legal services on constitutional and treaty affairs is
aimed at ensuring that FAO's activities are carried out on a sound
legal and constitutional basis which is consistent with the Basic Texts
and the status of FAO as an intergovernmental organization in the UN
system. On the other hand, legal services delivered under the pro-
gramme in the area of development law are aimed at providing Member
Nations with advice and assistance on such matters as the formulation
of legislation, restructuring of institutions and the negotiation of
agreements. These services will assist them in establishing a frame-
work for policy formulation and giving concrete effect to their adopted
policies in the food and agriculture sector.

Objectives and Plan of Action

2. The programme is in general of a continuing nature. A limited reorgani-
zation of the Legal Office has been undertaken to ensure that the
programme is responsive to changing needs and is delivered in an inte-
grated manner.

3. In the area of constitutional and treaty law, the Legal Office will
continue to:

(a) advise the Director-General and the Organization's Governing and
other Statutory Bodies, as well as departments, divisions,
Regional Offices and the World Food Programme, on the legal and
constitutional questions arising out of their activities;

(b) represent FAO in judicial proceedings before international
tribunals and in negotiations to settle disputes;

(c) draft international conventions, agreements and other instruments
relevant to the Organization's mandate and carry out the Director-
General's depositary functions;






- 22 -


(d) deal with the legal aspects of relations with the Host Govern-
ment, with other governments and with international organizations;

(e) service the Committee on Constitutional and Legal Matters (CCLM).

4. The focal point for these services is the Office of the Legal Counsel.

5. The Legislation Branch is the focal point for research and assistance
in development law and, in cooperation with other units in FAO, for
related institutional questions. The Legislation Branch will continue
to provide the following services:

(a) provision of assistance to FAO Member Nations and advice to FAO
technical divisions, projects and programmes on legal aspects of
the management and development of food and agriculture resources;

(b) preparation of studies on issues of development law within the
mandate of FAO;

(c) training in legal disciplines related to food and agriculture,
particularly in regard to developing countries, and
participation in related seminars, workshops and similar
activities.

6. Legal assistance will continue to be provided in all fields of FAO's
competence, with particular emphasis on fisheries, pesticides and land
resources. Significant increases in activity over 1988-89 levels are
also expected in legal aspects of environment protection, bio-diversity
watershed management and women's participation in agriculture. Other
fields of activity (national and international legal aspects of water,
food, plant protection, forestry and wildlife) will continue at present
levels.

7. The Documentation and Research Unit will provide computerized documen-
tation and research services in support of all aspects of the Legal
Programme, and in particular on:

(a) collection and dissemination of legislative information; and

(b) collection and research of information on constitutional and
treaty affairs, including access to data banks on administrative
tribunal law.

8. In addition, a new P-5 Senior Legal Officer post under the direct super-
vision of the Legal Counsel will focus on bio-diversity and environment
law coordination, drawing together existing activities in both Services
of the Legal Office.

Change in resources

9. No change is proposed in the overall provision. The cost of the new
post on bio-diversity will be offset by reduction of secretarial staff.







23 -




1990-91 ESTIMATES BY REGION, FUND AND UNIT ($000, All Funds)

------------------------------------------------------------------------------------
Region Fund Unit


Global 4 586 RP 4 524 LEG 4 586
Africa 0 WFP 62
Asia and Pacific 0
Near East 0
Europe 0
Latin America 0

TOTAL 4 586 4 586 4 586






- 24 -


Major Prograu e 1.4 LIAISON




Programnn 1.4.1 Inter-Agecy Affairs









1988-89 Programme Cost 1990-91 Work Extra-
Sub-Programme Approved Change Increase Budget Years Budgetary
Budget Funds
...................................................................................................
1.4.1.0 Inter-Agency Affairs 2 635 (162) 529 3 002 26.0 120
....................................................................................................
Programme 1.4.1 Total 2 635 (162) 529 3 002 26.0 120
....................................................................................................

* Increase (Decrease)




Nature of the Programme

1. In discharging its constitutional functions, the Organization must
cooperate closely with a wide range of agencies within the UN system
and other organizations, the activities of which have a bearing on the
food and agriculture sectors. The UN system includes a large number of
organizations and bodies having responsibilities for economic and
social matters relating to the food and agriculture sectors for which
FAO has a direct responsibility. In the same manner that organizations
of the UN system participate closely with FAO in the area of food and
agriculture, FAO in turn is called upon to contribute to a wide variety
of programmes and activities of other organizations. Accordingly, FAO
participates in and contributes to the work of the governing bodies of
other organizations, notably the General Assembly and ECOSOC, in addi-
tion to briefing its own Governing Bodies on developments elsewhere in
the UN system. FAO is regularly requested to contribute substantively
to the preparation of global conferences, system-wide programmes and
reports. At the same time, FAO needs to maintain, on a day-to-day
basis, close cooperation and working relations with the organizations
of the UN system, including GATT, World Bank and IMF. In a wider con-
text, it is essential for FAO to keep abreast of developments and
trends with regard to the broader aspects of multilateral cooperation.

2. At the inter-secretariat level, FAO needs to respond to a substantial
number of requests which have system-wide implications, stemming from
intergovernmental bodies in the UN system, provide information and
engage in joint activities, consultations and other contacts. FAO
participates in the Administrative Committee on Coordination (ACC) and
its subsidiary machinery. Most of this work is related to coordination
issues in programme matters, operational activities, personnel matters
and financial and budgetary questions. At the same time, FAO needs to
maintain direct bilateral cooperation with sister agencies and pro-
grammes.






- 25 -


3. FAO responds to requests from governments for emergency assistance in
the agriculture, livestock and fisheries sectors, in countries affected
by exceptional natural or man-made calamities. For that purpose the
Office for Special Relief Operations (OSRO), which is placed under this
programme, is responsible for assessing relief and short-term rehabili-
tation needs, mobilizing and coordinating donor and other support and
implementing relief operations. OSRO works closely with WFP, UNDRO,
UNHCR, UNICEF, as well as non-governmental organizations (NGOs) and
other private aid organizations.

4. Lastly, FAO maintains relations with an increasing number of inter-
governmental organizations outside the UN system and with international
non-governmental organizations working in food and agriculture and
related fields.

Objectives

5. The activities under this programme are of continuing nature. They are
designed to ensure that inter-agency initiatives and activities are in
conformity with the policies and programmes of the Organization and the
directives of FAO Governing Bodies. The Office for Inter-Agency
Affairs (IAA) will therefore continue to:

(a) promote FAO's cooperation with the organizations of the UN system
and with other intergovernmental and international non-
governmental organizations;

(b) ensure the Organization's response to decisions of the UN General
Assembly, ECOSOC and other intergovernmental bodies of the UN
system which concern the food and agriculture sector, or which
are otherwise related to the Organization's work;

(c) maintain inter-secretariat cooperation and working contacts with
organizations of the UN system, where appropriate, through the
Liaison Offices in New York and Geneva;

(d) ensure FAO participation in the work of ACC and its subsidiary
machinery, including preparations for the Director-General's
participation in the Committee;

(e) act as focal point within FAO for information related to the UN
system and other intergovernmental organizations and distribute
information;

(f) provide the Director-General with policy advice on WFP matters
and assist in the handling of requests for emergency food aid;

(g) ensure the coordination of OSRO's emergency relief action with
other FAO activities and with related operations carried out by
other organizations;

(h) coordinate FAO representation at meetings of other organizations,
both within and outside the UN system.






- 26 -


Plan of Action

6. Recent developments in other organizations of the UN system will be
reported regularly to the Conference and Council. Many subjects dealt
with by FAO have inter-agency implications. It is essential to monitor
the consistency of decisions in other fora with FAO's own actions. The
Office for Inter-Agency Affairs, in close cooperation with the approp-
riate technical departments and divisions, will continue to serve as
focal point for the exchange of information in this regard. Accord-
ingly, IAA will continue to ensure that FAO departments and divisions
are made fully aware of decisions taken in other intergovernmental fora
which might have implications for their work, as well as ensuring that
the work of FAO is made fully known to those bodies.

7. Several matters in particular will need to be monitored during the
biennium. Among these are: preparation of a new International
Development Strategy (IDS) for the Fourth United Nations Development
Decade, Special Session of the General Assembly in 1990 devoted to
international economic cooperation, implementation of the United
Nations Programme of Action for African Economic Recovery and
Development (UN-PAAERD 1986-90), implementation of ECOSOC resolution on
the revitalization of the Economic and Social Council, Uruguay Round of
Multilateral Trade Negotiations, Second United Nations Conference on
the Least Developed Countries (1990), and system-wide cooperation on
issues related to environment, including preparations for the proposed
World Conference on Environmental Development. Relations with other
intergovernmental bodies outside the UN system will continue to be
followed up systematically. Flexibility will be used in ensuring the
Organization's response in an appropriate and cost-effective way to the
external calls made upon it, in accordance with FAO's own programme of
work.

8. FAO will continue at the intergovernmental level to contribute, within
its own specialized fields, to the formulation and implementation of
system-wide programmes and activities. At the inter-secretariat level,
FAO will participate in the work of ACC and its subsidiary machinery.

9. Cooperation will continue with organizations dealing with emergency
situations and FAO will respond, as necessary and feasible, to
resolutions of the General Assembly on the subject. A major concern is
to provide the most efficient and economical modalities for coordinated
emergency relief. OSRO will continue to provide emergency and rehabi-
litation assistance, with support from the Technical Cooperation
Programme (TCP) and special contributions from donor countries and
agencies. This requires close collaboration between OSRO, the TCP
Unit, the FAO Global Information and Early Warning System and the
Disaster Relief Service of WFP.






- 27 -


10. Other ongoing responsibilities include: coordinating FAO's contribu-
tions to system-wide reports; monitoring developments in other inter-
governmental fora and promoting inter-agency agreements and arrange-
ments; acting as the focal point for FAO's dealings with other inter-
governmental bodies; advising the Director-General on WFP matters,
particularly relating to requests for emergency food aid; regular con-
tacts with the organizations and bodies of the UN system including the
regional economic commissions, as well as with other bodies outside the
UN system; screening of invitations to FAO to attend meetings of other
organizations; arranging for FAO representation and briefing of staff
attending meetings.

11. The programme will draw, as far as possible, on the services of the
Liaison Offices in New York (LUNO) and Geneva (LGEN) in particular for
inputs to, attendance at and reporting on meetings of the UN system in
New York and Geneva.

Change in Resources

12. The abolition of one P-5 post and reduction in secretarial support
staff are proposed as a deliberate cost-cutting measure, despite the
considerable workload linked to coordination activities with the UN
system.





1990-91 ESTIMATES BY REGION, FUND AND UNIT ($000, All Funds)

------------------------------------------------------------------------------------
Region Fund Unit
------------------------------------------------------------------------------------
Global 3 122 RP 3 002 IAA 3 122
Africa 0 Govt.Programmes 120
Asia and Pacific 0
Near East 0
Europe 0
Latin America 0

TOTAL 3 122 3 122 3 122
TOTAL 3 122 3 122 3 122







- 28 -


Prograrme 1.4.2 Liaisn and Protocol














1988-89 Programme Cost 1990-91 Work Extra-
Sub-Programme Approved Change Increase Budget Years Budgetary
Budget Funds

1.4.2.1 Headquarters 1 118 (144) 249 1 223 20.1 296
1.4.2.2 North America 1 871 0 327 2 198 30.0 0
1.4.2.3 United Nations 2 098 0 352 2 450 26.0 0

Programme 1.4.2 Total 5 087 (144) 928 5 871 76.1 296

* Increase (Decrease)




Liaison and Protocol at Headquarters

1. The ongoing activities relate to providing advice on all protocol
aspects of relations with Member and non-Member Nations. These
activities include liaison with Permanent Representatives and missions
accredited to FAO. Liaison with the Host Government also relates to
the implementation of the Headquarters' Agreement and the status and
privileges of the Organization, the Permanent Representatives, visiting
government officials and staff. Visits to FAO of Heads of State and
other high-ranking personalities of Member Nations are organized. The
Liaison and Protocol Branch also handles formal correspondence with
Member Nations, and ensures the issuance of travel documents, visas and
identity cards for FAO staff.

Liaison for North America

2. The functions are to assist FAO Headquarters in formulating and
implementing policy and maintaining communications and cooperation
between FAO and the North American governments and public and with
Washington-based international organizations, specifically:

(a) to represent the Director-General before the Governments of
Canada and of the United States of America and Washington-based
international organizations;

(b) to provide general information, also in support of World Food
Day, about worldwide food problems, rural development and FAO
activities to the North American governments and non-governmental
organizations;






- 29 -


(c) to identify, analyse and report to Headquarters, developments
regarding governmental policies, legislation, programmes, events
and public opinion developments in the region, relevant to the
objectives and programmes of FAO;

(d) to provide the secretariat and servicing for the Consultative Sub-
Committee on Surplus Disposal in support of the Organization's
worldwide activities in monitoring food aid programmes, including
the World Food Programme;

(e) to carry out a wide range of administrative support functions in
North America, including recruitment and appointment activities,
fellowship administration, purchasing and contracts, income tax
administration, communications, mail distribution, pouch, travel
and financial services;

(f) to participate, on behalf of FAO, in governmental and non-
governmental groups and meetings, and in particular, to work with
private voluntary groups involved in fighting hunger;

(g) to maintain liaison, particularly on behalf of the Regional
Representative for Latin America, with the Organization of
American States and other inter-American organizations based in
Washington;

(h) to arrange official visits and consultations in North America for
FAO Headquarters, regional and country staff.

Liaison at United Nations Headquarters and Geneva

3. The main function is to assist in policy and decision-making at FAO
Headquarters in relation to developments in the UN system, mainly
through representation at meetings at UN Headquarters, in Geneva and
elsewhere, through liaison with representatives of Member Nations of
the UN and Specialized Agencies, and through liaison with the
secretariats of these organizations.

4. Specific activities are to:

(a) represent FAO at intergovernmental meetings, notably meetings of
the UN General Assembly and the Economic and Social Council,
(ECOSOC) as well as related Committees, functional Commissions
and subsidiary bodies such as the Committee for Programme and
Coordination; keep in touch with delegations on programme and
policy issues; report on such meetings to FAO Headquarters for
information and use in policy and decision-making;

(b) represent FAO at inter-agency meetings as needed; maintain
working relations with all organizations and entities of the UN
system in New York and Geneva and their secretariats, and with
the representatives of the Specialized Agencies stationed there;
keep Headquarters informed about developments and, in turn, keep
these organizations and bodies up to date with FAO programmes and
action;

(c) maintain liaison with intergovernmental, non-governmental and
private institutions, including foundations, associated with UN
system activities and development generally;






- 30 -


(d) contribute to public information and public relations at UN
Headquarters, work with delegations and committees on information
questions, and deal with local public information requests.

(e) provide services to visiting FAO officers including briefing them
on developments related to the purpose of their mission, e.g.,
for attendance at UN system meetings, or contacts on matters
related to technical assistance with various programmes and
entities of the UN, such as UNDP, UNICEF, UNFPA, UNCTAD, etc.

Change in Resources

5. The elimination of one P-4 Professional post in the Liaison and
Protocol Branch is proposed.




1990-91 ESTIMATES BY REGION, FUND AND UNIT ($000, All Funds)


Region Fund Unit

Global 6 167 RP 5 871 GIC 1 437
Africa 0 Govt.Programmes 296 LGEN 759
Asia and Pacific 0 LNOR 2 280
Near East 0 LUNO 1 691
Europe 0
Latin America 0

TOTAL 6 167 6 167 6 167







- 31 -


Chapter 2-TECHNICAL AND ECONOMIC

PROGRAMMES






SUMMARY OF ESTIMATES BY PROGRAMME ($000, All Funds)


Regular Programme


1988-89 Extra Total

Major Programme/Programme Approved Programme 1990-91 Cost 1990-91 Budgetary Funds
Budget Change* Base Increase Budget Funds 1990-91


2.1 Agriculture


2.1.1
2.1.2
2.1.3
2.1.4


Natural Resources
Crops
Livestock
Research and Technology
Development


2.1.5 Rural Development
2.1.6 Nutrition
2.1.7 Food and Agricultural
Information and Analysis
2.1.8 Food and Agricultural Policy
2.1.9 Programme Management


141 28
151 15
561 26


29 381
7 268


(324) 29 057 4 963 34 020 40 851 74 871
113 7 381 1 185 8 566 417 8 983


Major Programme 2.1 Total


181 746 2 296 184 042


30 304 214 346 524 112


2.2 Fisheries


2.2.1 Fisheries Information
2.2.2 Fisheries Exploitation and
Utilization
2.2.3 Fisheries Policy
2.2.9 Programme Management


Major Programme 2.2 Total


4 506
14 347


6 833
5 039


30 725


153 4 659
106 14 453


944 5 603 1 857 7 460
2 483 16 936 62 885 79 821


160 6 993 1 010 8 003 1 397 9 400
173 5 212 1 117 6 329 0 6 329


592 31 317 5 554 36 871 66 139 103 010


2.3 Forestry


2.3.1 Forest Resources and
Environment
2.3.2 Forest Industries and Trade
2.3.3 Forest Investment and
Institutions
2.3.9 Programme Management


Major Programme 2.3 Total


5 382 468 5 850 899 6 749 79 498 86 247


3 808 (197) 3 611
7 559 (203) 7 356


670 4 281 19 834 24 115
1 253 8 609 16 630 25 239


4 246 580 4 826 1 071 5 897


20 995 648 21 643 3 893 25 536


115 9


0 5 897


62 141 498


* Increase (Decrease)


738 458


CHAPTER 2 TOTAL 233 466 3 536 237 002 39 751 276 753 706 213 982 966






- 32 -


Major Prgramne 2.1 AGRICULTURE










Long-term Trends

1. World agriculture is confronted by six major and often interrelated
challenges:

imbalances in the world food and agricultural system;

rapid growth in population in relation to natural resource
availability;

slow growth in agricultural productivity;

inadequate growth in purchasing power;

limits to sustainable exploitation, arising from direct pressures on
natural resources or indirect ones resulting from climate change;

increasing complexity of agricultural policy planning.

These call for a concerted response by the international community and
action by national governments and will consequently shape FAO's work
for some time.

2. The future increases in world food production appear set to continue to
exceed population growth for the next decade or so, unless setbacks
resulting from widespread droughts or other large-scale natural or man-
made calamities were to be more than temporary. These trends at the
global level will, however, continue to be accompanied by localized
shortages at regional, national and sub-national levels. Food consump-
tion in many areas can be expected to continue to fall short of accept-
able standards of nutrition.

3. Thus, long-term trends point to continued imbalance in the world food
system. On the one side, and notwithstanding the present overall
balance between supplies and demand, some regions and commodities will
continue to be troubled by surpluses that cannot find commercial out-
lets, unless subsidized. On the other, some of the poorer countries
and regions will still be faced with the combined problems of low
nutritional levels, rapidly rising populations, inadequate growth in
both food production and incomes, and the impossibility of meeting food
requirements through commercial imports. For such countries, there is
little alternative to giving top priority to increasing agricultural
production, as a means both of raising food consumption levels and of






- 33 -


reviving their economies. However, the likelihood of overall slow
economic growth in some major developing regions and stagnation in per
caput incomes may constitute a major obstacle.

4. The total demand for food and agricultural products in the developing
countries (including China) is estimated, according to the revised
AT 2000 projections, to rise by about 3 percent a year between 1985 and
2000. If this increase is to be met mainly from domestic production,
output in many countries, especially in Africa, will have to expand at
rates exceeding 3 percent a year. During the 15 years up to 1988, less
than a third of the developing countries, and very few of them in
Africa, achieved such rates of growth.

5. This likely increase in total demand will be accompanied by continued
changes in its structure, in response to higher incomes where and when
they occur and the almost universal rapid urbanization. Some further
shift in preferences is therefore likely from traditional locally-
produced cereals and root crops to such foods as wheat, rice, sugar,
vegetable oils and livestock products. However, it will almost
certainly be slower than in the past. Food policies biased in favour
of urban consumers and imports are largely being modified. The insti-
tutional and infrastructural weaknesses that have limited the ability
of rural producers to feed the urban areas are also gradually being
remedied. Slower economic growth and foreign exchange constraints will
prevent a resumption of the rapid expansion in food imports experienced
in the seventies.

6. FAO's Fifth World Food Survey, completed in 1985, estimated that the
number of seriously undernourished people in the developing market
economies rose slightly during the seventies. They had, however,
decreased as a proportion of the population in each of the developing
regions. According to the more recent estimates of AT 2000, this trend
was arrested in the first half of the eighties in the wake of economic
difficulties. The projections to the year 2000 indicate that the
proportion of the affected population may still decline somewhat,
though there would be no decline in the absolute number of under-
nourished people. It is now widely recognized that, if their numbers
are to be substantially reduced, increased food production in the
developing countries will not, by itself, be enough. Access to
adequate food by the poor can only be assured by increases in their
incomes. If their food needs are not translated into effective demand,
production growth, however fast, is unlikely to effectively counter
malnutrition, though faster-growing agricultural production and
productivity are themselves important factors in raising incomes.

7. There is also greater recognition of the need to resolve the tra-
ditional conflict between the interests of consumers, who want food at
prices they can afford, and producers, who require remunerative prices
to induce more production. When economic incentives to producers are
substantially increased, it will be necessary at the same time to adopt
selective measures to safeguard the food consumption of the poorest and
most vulnerable population groups.

8. For certain countries, the achievement of increased output would
require agricultural productivity, particularly in terms of yields of
many crop and livestock commodities, to rise more rapidly than in the
past. A number of countries in Sub-Saharan Africa, for example, would






- 34 -


find such an increase difficult to achieve, since merely to keep up
with population growth, yields of some crops would have to rise at
twice the historic rate. Greater emphasis will therefore be required
on research and development and on those price and non-price incentives
which encourage the adoption of improved technology.

9. The environmental consequences of high population growth and slow pro-
ductivity growth, together with trends of energy use, etc., lead to
unsustainable agricultural, forestry and fisheries development. In
many countries, unless this trend is reversed, there can be no sus-
tainable economic development. The present situation is already
serious, but the future could become alarming. Firstly, of an increase
of 83 million hectares in arable land, projected in AT 2000 by the end
of the century, much will be relatively marginal in quality and there-
fore in need of careful management. Secondly, net deforestation rates
for tropical forests could be some 10 million hectares per year, with
increased risks of erosion and flooding. Finally, climatic change
arising from carbon dioxide and other man-made emissions are likely to
affect agricultural production in a number of ways, but may leave few,
if any, countries unaffected in the course of the next century.

10. One of the dominant trends since the forties, and particularly since
the sixties, has been the growing interdependence of the world economy
overall, and of world agriculture and agro-industries. This trend will
continue, and bring increasing complexity in agricultural policy plan-
ning in a number of ways. First, the progressive transition from exten-
sive subsistence-oriented production systems to intensive farming sys-
tems will require more off-farm inputs. Secondly, there are growing
inter-sectoral linkages at the national level, due to changes in macro-
economic policy in the context of structural adjustment, etc.. Third-
ly, additional policy concerns need to be integrated into agricultural
policy, particularly those relating to food and nutrition, environment
protection and sustainable development.

Long-term Goals and Strategies

11. Seven major long-term goals and strategies are described in the
following paragraphs. They apply to all regions, both developing and
developed, with the obvious differences in perceptions and impact of
problems in relation to each. Their achievement will require con-
tinuous efforts in the policy area. In this context, the upgrading of
FAO's capability to assist member countries in the analysis of options
and in the formulation and implementation of national policies will be
essential.

12. The principal goal in food and agriculture is, of course, the
elimination of hunger and malnutrition. However, progress towards a
substantial reduction in their incidence would already be an important
step forward. The achievement of this goal requires progress toward
each of the other goals set out below. It also depends heavily on
developments outside the agricultural sector, including improvements in
the international economic situation. Although not a permanent solu-
tion, nutrition intervention programmes will have to play an important
part for many years to come. In many countries, effective policies to
slow down population growth could greatly assist. Even in those coun-
tries which have the natural resource base to support much bigger popu-
lations, current high population growth rates impose unattainable tar-
gets in such crucial areas as food supply, health care, housing and
education, leaving scarce resources for production and income growth.






- 35 -


13. Promoting food production in the developing countries and improving
resource management Further extension of cultivated areas but, even
more, big increases in yields are required in the developing countries.
In many countries the opportunities for bringing new land into cultiva-
tion are very limited or virtually exhausted, leaving them only the
option of using their land more intensively. Improving resource produc-
tivity and management is, therefore, a primary goal of FAO. The appli-
cation of modern technology, including not only manufactured inputs but
also the greater use of natural inputs (such as organic fertilizers)
from within agriculture itself, will steadily become an even more impor-
tant factor in agricultural growth. However, many of the technological
requirements of small farmers in low-income countries have not yet been
satisfactorily met. The development of appropriate technologies will
require a better understanding of their needs by strengthened national
agricultural research systems. The uptake of improved technology will
also be greatly dependent on appropriate economic and institutional
policies in such fields as producer incentives, the removal of disincen-
tives, the availability and effective delivery of inputs, services and
consumer goods, and marketing infrastructure. While the spotlight
inevitably falls on crop production, improved resource productivity and
management is equally important for forestry, fisheries and the live-
stock sector. In the developed countries, the objective of improved
resource management is made easier by the needed slower growth of
production with the consequent lesser pressure for further intensifi-
cation.

14. Conservation of natural resources and environmental protection -
Increased production must no longer be at the cost of irreversible
damage to the land and water resource base on which it depends. Inter-
national and national actions must, therefore, be oriented towards sus-
tainable development. This is especially important in particularly
fragile environments, such as arid and semi-arid areas subject to deser-
tification, and mountainous and other areas of high rainfall in the
tropics. In such areas, more stable production systems are required
for the modification of shifting cultivation and bush fallow practices,
and nomadic pastoralism that are no longer viable as a result of popula-
tion pressure. The most suitable farming systems will often include
agroforestry elements. The conservation of the world's limited
remaining forest resources is essential to protect the environment for
future agricultural production. The conservation of fishery stocks is
also rapidly becoming an urgent matter. The conservation of plant and
animal genetic resources will remain essential for future food and
agricultural production. The particular concerns of developed regions
include the ecological and health effects of the use of pesticides, and
the build-up of nutrients in groundwater due to the intensive use of
mineral fertilizers. There is hardly any field in which solutions
depend so heavily on regional and international cooperation. The con-
ceptual and political framework for international action has been
greatly strengthened by the World Commission on Environment and Develop-
ment, and is to be followed up by individual Member Nations, by FAO and
the other organizations concerned, in the years ahead. A close working
relationship with UNEP will be maintained.

15. Reduction of rural poverty, promotion of equity and development of
human resources The programme of action adopted by WCARRD in 1979
provides governments with guidelines on measures to achieve these inter-
related goals and ensure that rural people, women as well as men,
participate in development and share equitably in its benefits,






- 36 -


including the economic, social, cultural, institutional, environmental
and human aspects. The increasing role of international and national
NGOs in the development effort must be given due recognition in all
such actions. The critical importance of the human factor in develop-
ment is now universally acknowledged. While progress has been made in
the last two or three decades, the persistent weakness of institutions
for agriculture, forestry and fisheries is still the main constraint to
development in many areas, most particularly in Africa. Training at
all levels, combined with extension programmes, and the strengthening
of delivery systems, together constitute a high-priority goal for many
developing countries, and thus for FAO. The reduction of rural poverty
through equitable access to production resources must be a central
concern of governments, if they are to limit the social and political
imbalances that result from large-scale unemployment, landlessness, and
the widening of inequalities between rich and poor and urban and rural
people. This will involve adjustment of the frequent policy bias
against rural areas, and the adoption of structural reforms concerning
access to land, water, technologies and production resources aimed at
the provision of remunerative employment opportunities on as wide a
scale as possible. Fuller integration of rural areas into national
development efforts will help to ensure that private as well as public
investment and services are attracted to these areas.

16. Policy harmonization and improvement of the international trading
system for agricultural commodities This is a prominent objective on
the international policy agenda. In most low-income countries,
agricultural exports are vital for foreign exchange earnings, incomes
and employment, and to pay for imports of food and agricultural raw
materials and other goods that cannot be produced domestically. In
parallel, agricultural policies in many developed countries must find
the right balance between policies to maintain farm incomes and pre-
serve rural communities, and those to prevent the re-emergence of struc-
tural surpluses of several major agricultural products as well as to
control budget expenditures and achieve more efficient overall use of
resources. It is thus essential that the complex, interlinked issues
of international trade, food security and market fluctuations should be
dealt with effectively. The heavy protection of agriculture, by means
of measures which distort trade, should be progressively reduced so as
to establish a fair and market-oriented agricultural trading system.
At the same time, strengthened and more operationally-effective rules
and disciplines should be established for agriculture, and the fullest
liberalization of trade in tropical products, including in their pro-
cessed and semi-processed forms, should be pursued. The Uruguay Round
of multilateral trade negotiations, under the auspices of the General
Agreement on Tariffs and Trade (GATT), provides the opportunity for
these objectives to be vigorously pursued. These negotiations also
provide the opportunity to eliminate non-tariff barriers to agricul-
tural trade by harmonizing national sanitary and phytosanitary regula-
tions on the basis of the international recommendations of bodies and
instruments such as the FAO/WHO Codex Alimentarius Commission, the
International Office of Epizootics, and the International Plant Protec-
tion Convention. Developing countries must also be enabled to increase
their exports of both agricultural and non-agricultural products,
especially to the many markets that are now heavily protected or which
they have "lost" because of the export subsidies of others. At the
same time, they must take greater advantage of the opportunities for
increased trade between themselves. These are likely to remain, for
many years, key policy concerns for world agriculture and thus for FAO.
Close cooperation is to be observed with UNCTAD and GATT.






- 37 -


17. World food security This goal the achievement of adequate supplies
of basic foods, stability of supplies and access to them by all people
requires the achievement of all the other goals, and has external as
well as internal dimensions. It also requires improvements in early
warning systems and preparedness to meet emergencies. Internally, it
requires much greater emphasis on the four "i"s of agricultural
development, namely incentives, inputs, institutions and infra-
structure, as identified in the FAO study, African agriculture: the
next 25 years. It is also crucial to raise the overall rate of econ-
omic growth and improve the incomes of the poor. Externally, it re-
quires progress towards the previous goal, because some developing coun-
tries will be dependent on agricultural export earnings to pay for food
imports. It also depends on progress on international agreements con-
cerning market stability, financial flows, buffer stocks, emergency
reserves and food aid. Policies for macro-economic adjustment and for
the management of foreign debt should not penalize the prospects for
renewed economic growth nor entail great sacrifices by the poor.

18. Nutritional improvements, food safety and standards together constitute
an area that has been of basic importance for FAO since its creation
and remains equally vital today. It was recognized by the 1943 Hot
Springs Conference that the root cause of malnutrition is poverty, but
the reduction of poverty is proceeding 'slowly in most developing
regions and in some areas poverty appears to be on the rise. Increased
attention needs to be devoted to special measures which will reduce
malnutrition in vulnerable groups, even in the absence of a general
improvement in living standards. At the same time, much remains to be
learned about the relationship between diet and health, and there are
increasing concerns about the impact of diets common to many industrial-
ized countries. Food safety and standards is of considerable impor-
tance for both national food industries and international trade. This
is FAO's "consumer-oriented" goal. Work in these areas is to be
pursued in close cooperation with WHO and UNICEF.

19. In the pursuit of all these goals, comprehensive and reliable infor-
mation on agriculture, forestry, fisheries and nutrition will remain an
essential corner-stone of FAO's strength. This is one of the best
examples of an area where the work of FAO is closely bound with the
efforts of Member Nations. Generally speaking, the Organization does
not directly collect information at field level but relies on national
sources. Consequently, improvement in the quality of the information
disseminated by FAO depends, to a large extent, on the strengthening of
the national institutions concerned and this in turn can be greatly
assisted by FAO, particularly in the case of the least developed
countries, or those which continue to suffer from major institutional
weaknesses. The Organization itself also has a great deal to do in
strengthening its internal capacity to handle, analyze and disseminate
information of constantly-increasing complexity and sophistication.

20. All of the above goals are obviously closely interdependent. Their
achievement also depends on another kind of interdependence: that
between the developed and developing worlds. The support of the
international community is required, not only in trade matters but also
for considerable resource transfers between developed and developing
countries.

21. By the year 2000, total annual gross investment requirements in the
agriculture of the developing countries excluding China are estimated,






- 38 -


according to the 1987 revision of AT 2000, in the range of US$ 150 to
200 billion (at 1985 prices). These investment needs will be met
mainly from domestic sources, but will need to be complemented by
financial aid from developed countries and the richer of the developing
countries. The current difficult worldwide financial and economic
situation must not be allowed to deflect the international community
from its commitment to the pursuit of development.

22. The difficult economic situation of many developing countries, stemming
particularly from heavy external debt burdens, protectionism in their
export markets, limited growth of demand and low prices for their tra-
ditional export commodities, and inappropriate policies, has seriously
affected their agricultural and rural development performance. The
domestic adjustment programmes designed to improve this situation need
to place greater focus on growth-generating aspects; give more atten-
tion to removing the constraints in implementation, especially with
regard to institutional reforms; adopt a more balanced approach to the
role of prices, giving also sufficient attention to the importance of
inputs and infrastructure development; and ensure the active partici-
pation of the poor in the development process. Such programmes also
need to be complemented by improvements in the international economic
environment, and by more adequate external resources, channelled
specifically to productive investments in research and extension, input
delivery systems and infrastructure development which would benefit a
wider spectrum of the farming population.

23. Agriculture must retain its basic role of sustaining balanced economic
development and helping to mitigate the negative impact on welfare of
slower growth or stagnation in other sectors of the economy. To this
end, developing countries should continue to strengthen the formulation
and implementation of food and agricultural development plans within
the framework of their overall national development objectives. In
this context, FAO's role is essentially that of supporting national
capabilities, helping countries implement plans and policies, monitor
changes, collecting and disseminating information and identifying
emerging issues. This is a multidisciplinary effort requiring coopera-
tive action between FAO and its member countries, other organizations
and a wide range of NGOs/INGOs.

24. The efforts of the developing countries should be supported not only by
additional, stable transfers of external resources, but also by an
improved international institutional framework. The latter should
include greater market stability, security of agricultural supplies,
national and international action on food security, and improved access
to world markets for the agricultural exports of developing countries.
Such changes will be difficult to achieve and also will take time, but
they have already been urgent for many years.

25. The relative importance of the long-term goals varies both nationally
and regionally. However, they have sufficient universality to provide
a basic framework for FAO's programme of work and its medium-term
objectives.

26. FAO's medium-term objectives indicate how and by what means it is pro-
posed to support the efforts of Member Governments to move towards such
long-term goals during the medium-term period of about six years.
These objectives take account of previous decisions by Member Govern-
ments, as well as of the fact that FAO does not work in isolation but






39 -


in close cooperation (sometimes with a leadership role) with many other
organizations. They are much broader and of longer duration than the
priorities set for each biennium in the Programme of Work and Budget.

27. The medium-term objectives are presented according to the programme
structure of Major Programme 2.1: Agriculture. They include reference
to the many different modalities appropriate for carrying out the work.






- 40 -


Plograime 2.1.1 Natural resources










1988-89 Programme Cost 1990-91 Work Extra-
Sub-Programme Approved Change Increase Budget Years Budgetary
Budget Funds

2.1.1.1 Assessment and Planning 2 216 (23) 289 2 482 15.3 27 321
2.1.1.2 Farming Systems Development 1 809 0 227 2 036 11.6 3 476
2.1.1.3 Soil Management and Fertilizers 2 433 (9) 368 2 792 19.5 29 531
2.1.1.4 Water Development and Management 1 995 (35) 327 2 287 17.8 19 655
2.1.1.5 Conservation and Reclamation 1 518 5 214 1 737 11.8 8 216
2.1.1.6 Sustaining Resource Potentials 0 560 51 611 2.0 761
2.1.1.7 Regional Offices 2 718 141 364 3 223 32.1 0
2.1.1.8 Field Programme Support 2 828 102 636 3 566 40.2 6 618
2.1.1.9 Programme Management 1 213 (52) 257 1 418 18.0 0

Programme 2.1.1 Total 16 730 689 2 733 20 152 168.3 95 578

* Increase (Decrease)










Medium-term Objectives

1. The growing concerns for the sustainability of agricultural production,
combined with persistent food deficits in some countries and over-
production in others, set the scene for the Natural Resources Pro-
gramme. Rational and sustainable resource utilization is the ultimate
goal. While global land and water resources are adequate to meet
future demands, serious problems arise from their uneven distribution
and varying potentials, compared with food and other agricultural pro-
duction requirements. Many countries in the developing world are
already cultivating all lands which can be safely used for annual
crops. Not only are opportunities for bringing new lands under
cultivation limited, but much of the remaining land reserve is required
for other uses, i.e. grazing or forestry and has special management,
infrastructure and conservation problems. Moreover, in many areas,
existing systems of production can no longer meet demands on a sustain-
able basis. Large areas are subject to misuse and over-exploitation,
and the full consequences of nutrient depletion are yet to be felt. In
rainfed areas, fallow periods have been shortened below safe limits and






- 41 -


marginal lands are being put under cultivation under pressure to meet
food demands. On irrigated lands, improper water use and management
lead to waterlogging, salinity and/or sodicity. The net result is that
production falls short of the potential and there is widespread degra-
dation of land. Rationalization of resource use, matching potentials
and demands within the dictates of sustainability, is the prerequisite
for future growth of agriculture.

2. As a consequence of the foregoing, the overall objective of the Natural
Resources Programme continues to be the more productive and efficient
use of land, water and farm inputs, to meet present and future food and
agriculture demands, on a sustainable basis. Major aspects are:
quantification of land and water resource potentials; farming systems
development; balanced soil and plant nutrition systems; optimum
efficiency of water use for irrigation; halting and reversing of land
degradation; and promotion of sustainable land-use practices. All
sub-programmes' objectives correspond to the overall goal of sustain-
able development.

3. Specific objectives include the systematic assembly and analysis of
information on land and water resources and crop requirements, and
incorporation into databases and geographical information systems for
the determination of alternative land-use policy options. Emphasis
will be given to: the needs for improved use of scarce water resources
in both irrigated and rainfed areas; integrated land and water plan-
ning; and optimum resource use and management, taking into full
account comparative advantages. Detailed water resources assessments,
also at national and sub-regional levels, will be undertaken and
contribute to water development and management policies and strategies.

4. In order to motivate and assist small-scale farmers to raise their
productivity on a sustainable basis, the socio-economic and technical
constraints on their existing farming systems will continue to be
examined. Improved systems should seek inspiration from the technolo-
gies and practices of the better farmers, and will incorporate new
technologies adapted to local conditions through on-farm research.
These technologies will often include elements of agroforestry.
Multidisciplinary teams working at the local and national levels should
collaborate closely with the rural population concerned, in order to
facilitate the introduction of such systems and develop better support
services. Basic farm level analysis will also be applied to study the
micro-effects of national fiscal, financial and agricultural sector
policies.

5. Progress towards balanced plant nutrient systems is dependent on a
number of factors, four of which are given particular emphasis in this
programme. Firstly, the increased awareness of the degradation of many
agricultural areas by continuous removal of plant nutrients without
adequate replenishment. Secondly, the promotion of integrated plant
nutrition approaches, including mineral fertilizers, biological
nitrogen fixation and recycled organic materials, designed for entire
cropping systems. Thirdly, the more efficient and economic use of
mineral fertilizers, based on sound plant nutrition strategies and
national fertilizer policies. Fourthly, the maintenance and improve-
ment of physical and biological soil conditions through improved
tillage practices and crop residue management. These actions consti-
tute major contributions to the achievement of sustainable production.






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6. Especially in arid and semi-arid areas, agricultural production, food
security and, indeed the quality of life itself, are dependent on the
availability and reliability of water resources, e.g. rainwater,
surface water, groundwater and/or stored water supplies. While the
consequences of drought and decertification have attracted widespread
attention, endemic water shortages have not been addressed sufficiently
in international and national strategies and action plans for environ-
mental improvement and sustainable development. There are growing
limitations on the quantity of water available at reasonable cost to
support both food production and other water-dependent activities.
Consequently, medium-term objectives include not only the most
efficient use of presently-available supplies, but also the development
of new supplies in light of future demands, potential resources and
economic factors. Specific components are: advice on irrigation
development and improvement; increased efficiency and improved water
management techniques; use of waste water and rehabilitation measures,
both for increasing production and meeting environmental standards,
including disease vector control.

7. A further main objective is to halt and reverse current degradation of
soil and water resources and improve health aspects of land and water
development projects. Essential prerequisites for reversing land degra-
dation include planning and implementation of soil and water conser-
vation policies and programmes to demonstrate and ensure widespread
application of sound conservation practices which are compatible with
local socio-economic conditions. The increased and safe use of mar-
ginal quality water and the reduction of health hazards are integral
parts of the programme.

8. In addition to specific discipline-based objectives, an overall objec-
tive is being introduced, namely sustaining natural resource poten-
tials. Although it would only begin by covering some of the complex
issues involved, a new sub-programme is established to provide an
interdisciplinary nucleus and a recognizable FAO contribution to sus-
tainable development. New activities on collection, analysis, design
and dissemination of information on sustainable farming practices will
assist Member Nations in introducing corrective actions and responding
to the possible adverse effects of climate change on agriculture,
forestry and fisheries.

Focus of the Programme

9. Agricultural production depends on climate, available soil and water
resources and the knowledge of how to combine these natural attributes
with local conditions of input availability and markets. The activi-
ties of the Natural Resources Programme aim at providing improved
knowledge and methods to member countries for more efficient and
sustainable use of available land, water and other production inputs.
These activities include the development of computer-aided resource
data management systems, together with the analysis and dissemination
of such data for agricultural policy formulation. There is a strong
field orientation throughout the programme. Major areas of work are
natural resources assessment and planning, farming systems development,
soil management and fertilizers, water development and management,
conservation and reclamation, and sustaining resource potentials.

10. Responsibility for the implementation of Sub-programmes 2.1.1.1,
2.1.1.3, 2.1.1.4, 2.1.1.5 and 2.1.1.6 rests with the Land and Water






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Development Division (AGL). The Agricultural Services Division (AGS)
is responsible for Sub-programme 2.1.1.2 and the provisions for 2.1.1.8
and 2.1.1.9 are shared between the two divisions. Sub-programme
2.1.1.7 covers the activities of the Regional Offices and Joint
Divisions under the programme.

11. The well-established work of FAO on soil mapping, land evaluation,
assessment of crop and population potentials by agro-ecological zones
(AEZ), will continue especially at the country level. Future emphasis
will be on methods for integrating ecological and economic attributes
into natural resource assessments. This will be complemented by the
wide application of recent work on land-use planning methodology under
the aegis of the Interdepartmental Working Group on Land-use Planning.
The FAO Geographic Information System (GIS) will continue to be
utilized in cooperation with the World Bank, UNEP, ISRIC and concerned
member countries. Although still to be fully developed, it is being
increasingly used to assess land and water resource potentials, and for
training in AEZ applications.

12. To date, information on water resource potentials, necessary for
development of irrigated agriculture in arid and semi-arid areas, has
centered on the availability of sub-surface water and rainfall. Modern
techniques, such as the GIS and satellite imagery interpretation,
however, now permit more sophisticated evaluation of small basin
surface water potential, which has so far been under-utilized in many
countries.

13. The application of a farming systems approach to a range of development
efforts is relatively new. Most work to date has concentrated upon
identifying promising medium-term research programmes designed to
increase the productivity of a given farming system. FAO's Farming
Systems Development (FSD) concept extends this approach to encompass a
range of improvements including more relevant extension messages, more
effective support services and appropriate agricultural policies.
Emphasis is placed on institution building, the development of training
materials and refining analytical and planning techniques, since these
have been identified as the major constraints to the wider application
of FSD and to sustainable improvements in the productivity of agricul-
tural resources.

14. Work on soil management and fertilizers is intended to assist national
programmes, within an overall approach of more productive use of land
and plant nutrient resources on a sustainable basis. Increased tech-
nical support will be accorded to the development, promotion and appli-
cation of Integrated Plant Nutrition Systems (IPNS) and to the more
efficient and balanced use of mineral fertilizers. Fertilizer aid will
continue to be provided to needy countries under the International
Fertilizer Supply Scheme, as resources permit, with the present low
level of pledges. Physical and chemical soil-related constraints,
including acidity and micro-nutrient deficiencies will be addressed
primarily through network arrangements in coordination with the
International Board for Soil Research and Management (IBSRAM) and the
Centro Internacional de Agricultura Tropical (CIAT). Work on ferti-
lizer economics and supply and demand will continue to be coordinated
with other organizations, particularly through the FAO/UNIDO/World Bank
Working Group on Fertilizers, and through contacts with professional
organizations of the international fertilizer industry and specialized
national and international research and other institutions. The annual
consultations on the FAO Fertilizer Programme, the biennial session of






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the FAO/Fertilizer Industry Advisory Committee and its Technical Sub-
Committee and working parties, generate feedback and advice on
approaches and solutions to technical problems.

15. Irrigation development and management is necessary to increase and
stabilize agricultural production in many areas. Indeed, in a number
of developing countries, some form of irrigation is a prerequisite for
increased production. Moreover, given the likelihood of shifts in
cropping patterns because of climate change, this may be the case for
more countries in the future. However, the increasingly high costs of
irrigation development and maintenance, together with other factors,
have led to a markedly slower rate of irrigation expansion in recent
years. There is a need to fully utilize the potential of existing
schemes, improve water use efficiency and pay attention to local small-
scale irrigation systems.

16. Work on irrigation management will be related more to existing schemes,
in evaluating needs for improvement and rehabilitation. All activities
have a strong training orientation. Cooperation is ensured among
several units in FAO particularly for those activities associated
with training, involvement of women in irrigated agriculture, mobiliza-
tibn and participation of farmers and with a large number of national
and international institutions and agencies including: the US Agency
for International Development (USAID, Washington); the Overseas
Development Administration (ODA, London); the International Institute
of Land Reclamation and Improvement (ILRI, Wageningen); the Inter-
national Irrigation Management Institute (IIMI, Sri Lanka); le Comit6
Interafricain d'Etudes Hydrauliques (CIEH, Burkina Faso); and the
International Commission for Irrigation and Drainage (ICID, New Delhi).
Within the UN system, FAO has important responsibilities in the follow-
up to the Mar del Plata Action Plan, as reported under Sub-programme
2.1.1.6.

17. The need to respond to the increasing problems of land degradation has
been widely recognized among the international soil conservation
community in recent years. The main agents of change have been: the
environmental lobbies; the aid agencies; and the soil conservation
specialists who are developing new approaches and techniques more
appropriate to the needs of land users in developing countries. In
this new approach, the emphasis is on prevention rather than cure, on
limiting loss of productivity rather than loss of soil, and on joint
soil and water management with community participation as a key
element. FAO has played an important role in developing this approach
and will continue to support it, in collaboration with other organiza-
tions and institutes. Conservation practices lead to increased produc-
tion when farmers are considered as part of the solution and not as
part of the problem. The development activities will be undertaken
under the aegis of the Interdepartmental Working Group on Energy and
the Environment.

18. The increased use of marginal quality water and over-irrigation have
accentuated problems of salinization. The reclamation of salt-affected
soils and the use of marginal quality and waste water will accordingly
receive major attention. Health and environmental aspects of land
development will be based on the work of the FAO/WHO/UNEP Panel of
Experts on Environmental Management.




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