Citation
Summary programme of work and budget

Material Information

Title:
Summary programme of work and budget
Creator:
Food and Agriculture Organization of the United Nations -- Council
Place of Publication:
Rome
Publisher:
The Organization
Creation Date:
1990
Publication Date:
Frequency:
Biennial
regular
Language:
English
Physical Description:
v. : ; 28 cm.

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Subjects / Keywords:
Agricultural development projects -- Periodicals -- Developing countries ( lcsh )
Genre:
serial ( sobekcm )
international intergovernmental publication ( marcgt )

Notes

Dates or Sequential Designation:
1974-75-
General Note:
Title from cover.
General Note:
Submitted to the Programme Committee and the Finance Committee of the Council.

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33065928 ( OCLC )

Full Text




CL CL 95/3 March 1989


FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS ROME


E


Ninety-fifth Session Rome, 19-30 June 1989


SUMMARY PROGRAMME OF WORK AND BUDGET

1990-91


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


council

..


..







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




Objective

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

Approach

In formulating the proposais, the approach has been to:

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

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

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

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

Increased resources for technical and economic programmes

Chapter 2: Technical and Economic Programmes, the substantive output of which benefits ail Member Nations, and in particular developing countries, would increase by US$ 3.5 million, or 1.5% over the current base. The increase for Major Programme Agriculture would be US$ 2.28 million (1.3%), for Fisheries US$ 0.6 million (1.9%), and for Forestry US$ 0.65 million (3.1%). Chapter 4: Technical Cooperation Programme would increase by US$ 1.75 million (2.8%).

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

Conclusion

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

..


















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


(Real costs at 1976-77 levels)


Thousands
600 Z1


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



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

..







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


1990-91

(before cost increases) Technical & Economic (47.6)


Contingencies (0.1)

Policy & Direction (6.8) Commori Services (3.3)


Development Support (15.6)


TCP (13.0)


Support Services (13.6)

..























PERCENTAGE OF APPROVED BUDGET FOR
ESTABLISHED POSTS



Percentage
80 75 70 65 60 55 50
I I I I I IIII
74-75 76-77 78-79 80-81 82-83 84-85 86-87 88-89 90-91
Biennium

..



- v


Table of Contents




DIRECTOR-GENERAL'S INTRODUCTION viii

I. BACKGROUND 1

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

Il. FIELD PROGRAMME .4

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

III. FINANC1AL FRAMEWORK 9

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

IV. PROGRAMME FRAMEWORK 12

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

V. PROGRAMME BUDGET IMPACT 18

VI. COST INCREASES 20

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

VII. OBJECTS OF EXPENDITURE 27

VIII. COMPARISON 33

..







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

INTRODUCTION . CHAPTER 1: GENERAL POLICY AND DIRECTION CHAPTER 2: TECHNICAL AND ECONOMIC PROGRAMMES .


MAJOR PROGRAMME 2.1:


Programme Programme Programme Programme Programme Programme Programme Programme Programme


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


AGRICULTURE


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


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

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

CHAPTER 3: DEVELOPMENT SUPPORT PROGRAMMES .

MAJOR PROGRAMME 3.1: FIELD PROGRAMME LIAISON AND DEVELOPMENT

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

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


MAJOR PROGRAMME 3.4: FAO REPRESENTATIVES MAJOR PROGRAMME 3.9: PROGRAMME MANAGEMENT


CHAPTER 4: TECHNICAL COOPERATION PROGRAMME .


39 46 53 58 65 72 77 82 89

89 90 92 97 99

100 100 105 108 112

114


114

..








CHAPTER 5: SUPPORT SERVICES 122

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

MAJOR PROGRAMME 5.2: ADMINISTRATION 124
Programme 5.2. 1: Administrative Services 124
Programme 5.2.2: Financial Services 125
Programme 5.2.3: Computer Services 125
Programme 5.2.4: Personnel Services 125

MAJOR PROGRAMME 5.9: PROGRAMME MANAGEMENT 126

CHAPTER 6: COMMON SERVICES 127

CHAPTER 7: CONTINGENCIES . 128

Provision foi, Regional Offices 1990-91 . 129

..


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- ix -


DIRECTOR-GENERAL'S INTRODUCTION




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

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

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

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

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

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

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

..







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

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

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

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

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

..



xi



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

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

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

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

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

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

..



xii



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

..




- 1 -


I. BACKGROUND



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


Economic and Social Aspects

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

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


Food and Agriculture

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

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

..







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

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

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

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

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


Agricultural Trade

1.11 There was a welcome growth in agricultural trade in 1987, as part of a vigorous
growth in global merchandise trade. Trade in fishery and, to a lesser extent, forestry products, has been particularly dynamic. However, the benefits of this expansion would seem to have accrued mainly in developed countries. Among developing countries, growth was largely limited to some Asian countries.
Agricultural export earnings declined in a majority of developing countries primarily because of depressed prices. As a consequence, the terms of trade of developing countries' agricultural exports deteriorated in 19,7, particularly in Africa and in Latin America and the Caribbean. The increase in international prices recorded in 1988 bas been limited mainly to food commodities, predominantly exported by

..




-3 -


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

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

External Assistance for Development

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

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

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- 4 -


II. FIELD PROGRAMME



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

Investment

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

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

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

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

..





- 5-


Tehnical and Material Assistance


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


FIELD PROGRAY. 1. FAO/UNDP P


EXPENDITURHS ON FAO PFt) PROGRAMMIS FUNDED FROM EXTRA.BUDGETARY SOURCES
(US$ MiliOft, by programne And prgrmmm. catay)


MS 1980 1981 1982 1983 1984 1985 1986 1987 1988


rograme 167.1 182.5 141.1 116.5 109.2 115.9 128.8 128.4 160


2. Trust Fund Technical
Assistance

FAO/Government Cooperative Programme


32,6 38.9 44.4 43.8


56.8 65.4 73.0 72.5 77


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 Oper.(ECLO) Miscellaneous Trust Funds


Sub-total


14.5 4.8


10.9 3.6


1.6 3.5 1.3 1.7


14.7 3.3'





6.4 98.9


14.6 3.3 13.8

4.0 1.7 2.3 0.8 2.9


30.4 2.2





5.2


120.1


13.0 3.0


24.5 2.7 1.0 1.9


0.9


3.1


15.5


12.6 1.3 33.5 1.5 1.1 0.9 1.9


4.7


12.2


3.8 Q.1


5.9


119.7


6.7 120.3


13.7 0.7 38.2 0.5


1.0 1.7 0.8


10.5 5.3


13.2 0.9


42.1 0.6 1.1


2.1 0.9


9.4 4.0


12.9 0.8


34.7 0.6 0.9 1.3


0.6 7.1 4.1


3.2 1.5 1.6


- 7.0


7.2 6.4 6.6 39.6 147.6 151,.2


TOTAL 266.0 302.6 260.8 236.8 248.8 263.5 280.0 276.3 320


1 Estimate


1


13.2 0.9


29.6 0.6 1.3


2.0 0.8 6.7


4.7 0.8


7.4


7.4 147.9


13

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-6 -


UNDP

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

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

Trust Funds

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

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

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

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

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

..







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

Food Aid

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

Support Costs

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

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

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

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

..




-8



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

..




9 .


III. FINANCIAL FRAMEWORK



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

Payment of Current Assessments

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

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

(Amounts in US$ '000)


Received as %
Current assessments Received Outstandinq of assessments

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


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


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


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

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



Payment of Arrears

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

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- 10 -


Contributions Outlook

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

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

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

Miscellaneous Income

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

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

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

Working Capital Fund

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

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

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

Special Reserve Account

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

..









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

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

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- 12 -


IV. PROGRAMME FRAMEWORK





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

Management Guidance

4.2 In his instructions to FAO units inviting submission of proposais for the 1990-91
biennium, the Director-General requested programme managers "to take a fresh look at ail 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 air of the programme budget formulation exercise was to ensure the most effective and
economical utilization of the resources at FAO's eventual disposal.

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

4.4 The preparation of detailed and fully costed proposais has been greatly facilitated
by increased computerization of the budget preparation process. Proposais were 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.

Approach

4.5 The results of this intensive internal review have led the Director-General tO propose
that the entire programme increase be directed to Chapter 2: Technical and Economie Programmes, and Chapter 4: Technical Cooperation Programme. The small apparent increase under Chapter 5: Support Services is o1nly due to internai shifts based on a more accurate method of distributing staff costs over programme
activities.

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

Sustainable development
Crop/weather monitoring
Biotechnology
Crop protection

..




13-


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

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

Sustainable development

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

Crop/weather monitoring

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

Biotechnology

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

Crop protection

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

Agricultural data development

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

..




- 14 -


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

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

Policy advice

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

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

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

Women in Development

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

Aquaculture

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

Tropical Forestry Action Plan

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


Preliminary Reactions of the Programme and Finance Committees

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

..




- 15 -


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

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

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


Changes in Resources

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

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

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

..





- 16 -


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


Programme


1988-9
Approved Budget


US$ *000
Resource Shifts at Programme Element Level


Increases


1990-91 Pronosed


Decreases Budget


Gross Percentage Change


2.1.1
2.1.2
2.1.3
2.1.4
2.1.5
2.1.6
2.1.7
2.1.8
2.1.9


1 420) 4 419) 1 580)
* 651)
945)
* 487) 248)
* 874) (219)


Total Agriculture


181 750 19 069


2.2.1
2.2.2
2.2.3
2.2.9


Total Fisheries


30 723 1 738


2.3.1
2.3.2
2.3.3
2.3.9


I 170 650
761 495


Ttal Forestry


20 993 3 076


(16 843) 183 976


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


<1 141) 31 320


(563)
(677) (l 183)
(5)


(2 428) 21- 641


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




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

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


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


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


21.2 32.5 19.8 26.5
14.0 20.6 19.6 11.7 7.3

19.8

14.2 11.3 6.0
4.0

9.4

32.2
34.9 25.7 11.8

26.2

..




17


Cross-sectoral Priorities

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

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

..






18 -


V. PROGRAMME BUDGET IMPACT



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


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


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


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


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

Total Chapter 1

2 TECHNICAL AND ECONOMIC
PROGRAMMES
2.1 Agriculture
2.2 Fisheries 2.3 Forestry

Total Chapter 2

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

Total Chapter 3

4 TECHNICAL COOPERATION
PROGRAMME

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


Total Chapter 5

6 COMMON SERVICES


13 157 2.7 9 639 2.0 3 687 0.7 7 722 1.6 34 205 7.0


36.9 6.2 4.3


233 466 47.4 5 766 1.2


118 4.3 722 0.3 651 9.7 820 0.2


77 077 15.7 63 148 12.8 18 762 3.8 46 770 9.5 2 027 0.4 67 559 13.7 16 305 3.3


0 13 157 2.6 0.0 306 9 945 2.0 3.2

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

0 34 205 6.8 0.0


2 283 596
649


184 033 31 319
21 642


37.0 6.3
4.3


3 528 236 994 47.6 1.5



0 5 766 1.2 0.0


(428)
0
428
0


690 4.2 722 0.3 079 9.7 820 0.2


-2.0
0.0 0.9 0.0


0 77 077 15.6 0.0


1 750 64 898" 13.0


55 18 817 167 46 937 0 2 027


2.8


3.8 0.3

9.4 0.4 0.4 0.0


222 67 781 13.6


0 16 305 3.3 0.0


7 CONTINGENCIES 600 0.1 0 600 0.1 0.0

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

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- 19 -


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


Programme Change by Major Programme and Chapter for Organizational Groups

CH 1 MP 2.1


MP 2.2 MP 2.3


CH 3 CH 4 CH 5 CH 6 CH 7


1 698



1 002


400


450


RAFR
JAFR RAPA REUR JEUR

RLAC JLAC

RNEA JNEA TCP


(183) 96 91


(8) (16) 4


(123)


36


55 6


61 62


(17)


1 750


1750


TOTAL 2 283 596 649 1 750 222 5500



Legend to column headings: Annex
Page
Refs

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


TOTAL


1698



1002

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- 20 -


VI. COST INCREASES


Methodology

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

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

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

Biennialization

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

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

Inflation

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

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

..





- 21 -


Cost Increases Table

6.8 The following table presents the estimates accordingly.


Preliminary Calculation and Distribution of Cost Increases 1990-91 (US$ '000)


Biennial- Inflation
ization arising Total
1988-89 of 1988-89 during Cost
Base Increases 1990-91 Increase


(A) (B) (C)

PERSONAL SERVICES

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

TOTAL PERSONAL SERVICES 284 591 27 042 22 718 49 760


GOOD AND SERVICES

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

TOTAL GOODS AND SERVICES 207 769 0 10 386 10 386


GRAND TOTAL 492 360 27 042 33 104 60 146


Notes

PERSONAL SERVICES

Basic Professional Salaries The UN General Assembly, at ils 1987 session, requested the International Civil Service Commission (ICSC) to undertake a comprehensive review of the conditions of service of staff in the Professional and higher categories to provide a sound and stable methodological basis for their remuneration. The General Assembly also requested that this study be completed and the recommendations presented to il
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 ils 1989 session, no changes in the basic salary schedule for Professional and higher categories are foreseen in the near future. The new rates of staff assessment implemented with effect from I April 1988 resulted in an increase in gross salaries but did not affect net base salaries, which remained unchanged ai the level they reached in January 1985, when 20 points of post adjustmenl were consolidated into base salaries.

..




- 22 -


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

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

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

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

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

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

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

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

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

..




- 23 -


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

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

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

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

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

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

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

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

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

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

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

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

..




24 -


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

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

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

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

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

Dependency Allowances for General Service staff increased in June 1988 and are expected 1o increase in June 1989 as a result of salary adjustments to which the level Qf 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 1o the General Service Category in 1990-91 in line with basic salary adjustments.

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

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

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

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

Recruitment and Separation Costs The present provision is considered Io be almost sufficient to cover the expected costs taking into account the many posts currently frozen for uwhich recruitment action will only gradually take place. A relatively small increase is, howevcr, required 1o cover increasing payments for rental supplements and assignment allowances following the introduction of some modifications of the latter in laie 1987.

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

..




- 25 -


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


CO1S AND SERVICES

onsultants No provision bas been made for cost increases on the assumption tht it will be possible to absorb such increases under the economy measres introduced
in 1988-89.

Dtv Travel No provision has been made for cost increases on the ass tmption tht i will be possible to absorb such increases under the economy measures iutroduced
in 1988-89.

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

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




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

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

d.i1 Since the proposed real programme increases are for the time being presented for
ease of comparison at 1988-89 costs, provision must be separately made, to bring
these up to fil] costs in real 1990-91 terms. This amounts t US$ 250 000.

6A2 When this amount of US$ 250 000 is added to the other cost irhcreases, the total
cornes to US$ 60 396 000. This amount, however, does not provide for ail known
cost increases.

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

..





- 26 -


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

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

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

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

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

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

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

..




- 27 -


VII. OBJECTS OF EXPENDITURE


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

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


PROPOSED NEW AND ABOLISHED POSTS 1990-91

New Posts

Unit Professional General Service

AUD G-5 Clerk
G-3 Bilingual Typist

PBE P-5 Senior Evaluation Officer

AFC P-5 Corporate Systems Coordinator
(Computer Pool)

AFS P-4 Contracts Officer

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

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

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

..




- 28 -


Unit Professional

AGS P-4 Agro-Industries Officer

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

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

ESP P4 Economist


General Service G-4 Reference Clerk


G-6 Administrative
Assistant (WFD)


P-5 Senior Aquaculture
Development Adviser P-1 Aquaculture Specialist P-3 Fishery Information Officer


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


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


DDF P-5 Field Office Inspector

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


Immediate Office of Regional Representative
G-4 Steno/Secretary

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

Library
G-7A Library Assistant G-2 Clerk

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


RNEA

..







Unit Profesional


RNEA (cont,)


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


General Service

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


TOTAL 29 33


Abolished Posts


Unit


Professional


IAA P,5 Cl ipf, InterAgepsFy Mattrs
Unit LEG


AFF AFS


General Service



G-5 Clerk G-3 Bilingual Typist

G-3 Registry Clerk G-3 Clerk-Typist

G-6 Security Asst. G-5 Assistant Supervisor,
Transport Unit
G-5 Chief Tel. Operator G-3 Senior Guard G-3 Senior Guard G-2 Electrician G-2 Gardener G-1 Messenger G-1 Messenger G-1 Messenger G-1 Messenger G-1 Messenger G-1 Messenger G-1 Messenger G-I1 Messenger G-1 Messenger G-1 Messenger G-1 Sp. Labourer G-1 Sp. Labourer G-1 Sp. Labourer G-I Sp. Labourer

..




- 3q e


Unit


Prfespional


AGA P-5 Senior Officer (Dail'y
Development)


AGL P-5 Senior Officer (International
Fertilizer Supply Sheme)
P,2 Meetings Officer/Editor

AGP P4 Agricultural Officer
(Agrometeoroiogy) (transfer
to AGR)

P4 Training Oflicer (Pant
Genetic Resources)


AGR AGS ESC ESH


ESN


ESS


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


General Service

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


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

G-2 Typist

G-4 Clerk-Stenographer

G-4 Research Clerk G-4 Clerk-Stenographer

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

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

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

G-6 Scheduling Assistant G-5 Statistical Clerk G-2 Typi'st

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

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

..




1 31 .


Unit


Professional


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


General Service


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


DDF P-4 Programme Officer
P-2 Programme Officer GIC P-4 Protocol Officer


GIL GIP


G-7 Documentation
Assistant
G-4 Library Clerk

-5 Proofreader (Spanish) G-3 Binding nd Finishing
Operations
G3 Correspondence Clerk
(Arabic)


JNEA P-3 Agricultural Economist


RAFR RLAC


G-4 Clerk-Typist G-4 Registry Clerk G-4 Bilingual Stenographer


TOTAL 20 68

NET +9 -35


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

Net Changes in Regular, Programme Established Posts 1990-9.


ProeSsional eeneral Service


TOtal


Headquarters i0

Regional Offices/
Joint Divisions -1


"-49


+24 +23

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- 32 -


Despite the further net reduction iii lbsts the high cot ihicreases -lafed to Personal Services mean that expenditures on established posts, as a proportioh of total experiditure, will thuS change as follows:


Percentage of Expenditure on Establisbid Posts to Total Budget

1976.-77 1978-79 1980-81 1982-83 1984-85 1986-87 1988-89 1990-91 -


63.8


62.5


61.4


59,8


56,0


55.9


59.4 a


The figures above include the cost of salaPiHs of staff ir Regional, Liaison and FAO Representative Offices. If these are excluded the probrtioi of expenditre on established posts to total expenditure in 1988-89 is 43.5 percent and in 199-91 would be
45.5 percent.

The proposed breakdown of total resources by object of expenditure Will, as usual, be given in the full Programme of Work and Budget. On the basis of the very preliminary information available, it can be expected that the provisions for bonsultants, Contracts and Travel will show a small increase, with no increae for Publications and Documents, but a small reduction in the resou-ces allocated to Meetings, Art increase is likly under the provision for Computer Services in support of the expanded autoination and the scheduled introduction of the new finance and personnel s5steffis.






























2 at Lire 1 235 = US$ 1


3 Provisional figure

..




. 33 -


VIII. COMPAlISON



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


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


% increase


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


492 360 60 146


12.2


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


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


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

As in the past, the figures are given at the rate of exchange adopted by the Conference for the current Programme of Work and Budget, i.e. Lit. 1235 = US$ 1. This is to
facilitate comparison on a constant currency basis, and so as hot to prejudge the eventual decision of the Conference, at its Twenty-fifth Session, on the rate of exchange it will adopt for the Programme of Work and Budget 1990-91.

..



- 34 -


ANNEX





FURTHER DETAILS OF PROGRAMME PROPOSALS

AND RESOURCE ALLOCATIONS BY MAJOR PROGRAMME,

PROGRAMME AND SUB-PROGRAMME


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

..




. 35 -


INTRODUCTION


This Annex provides summary information on programme activities, and corresponding proposed resource allocations. The full Programme of Work and Budget 1990.91 will, as in the past, include detailed presentations of these activities.

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

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

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

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

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

..





- 36 -


CHAPTER 1: GENERAL POLICY AND DIRECTION




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


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

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

TOTAL 34 205 0 34 205


MAJOR PROGRAMME 1.1, GOVERNING BODIES


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


1988-89 Programme 1990-91
Programme Budget Change Budget

1.1.1 Conference and Council 9 197 0 9 197
1.1.2 Conference Services 3 960 0 3 960

TOTAL 13 157 0 13 157



Programme 1.1.1: Conference and Council

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

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


Programme 1.1.2: onference Services

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

..




37 -


MAJOR PROGRAMME 1.2: POLICY, DIRECTION AND PLANNING


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


1988-89 Programme 1990-91
Programme Budget Change Budget

1.2.1 Director-General's Office 3 782 0 3 782
1.2.2 Programme Planning, Budgeting and 3 943 162 4 105
Evaluat ion
1.2.3 Audit i 914 144 2 058

TOTAL 9 639 306 9 945


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

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


MAJOR PROGRAMME 1.3: LEGAL


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


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

1.3 Legal 3 687 (144) 3 543

TOTAL 3 687 (144) 3 543


The reduction reflects the proposed abolition of two General Service posts in the Office of the Legal Counsel, as a cost-cutting measure. The Legislation Branch is expected to continue its activities of direct assistance to member countries in development and natural resources law. Priority will be placed on legal assistance in the areas of fisheries, pesticides (follow up to the International Code of Conduct on the Distribution and Use of Pesticides) and ]and. In order to facilitate the work of the whole Legal Office, a Documentation and Research Unit will be established without resources implications.

..




- 38 -


MAJOR PROGRAMME 1.4: LIAISON


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


1988-89 Programme 1990-91
Programme Budget Change Budget

1.4.1 Inter-Agency Affairs 2 635 (162) 2 473
1.4.2 Liaison and Protocol 5 087 0 5 087

TOTAL 7 722 (162) 7 560


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

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

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

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

..




- 39 -


CHAPTER 2: TECHNICAL AND ECONOMIC PROGRAMMES


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


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

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

TOTAL 233 466 3 528 236 994


MAJOR PROGRfAMME 2.1: AGRICULTURE


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


1988-89 Programme 1990-91
Programme Budget Change Budget

2.1.1 Natural Resoures 16 734 702 17 436
2.1.2 Crops 27 713 173 27 886
2.1.3 Livestock 16 283 60 16 343
2.1.4 Research and Techiology Deveiopment 15 320 761 16 081
2.1.5 Rural Development 28 066 92 28 158
2.1.6 Nutrition 15 175 155 15 330
2.1.7 Food and Agricultural Information 25 810 562 26 372
and Analysis
2.1.8 Food and Agricultural Plicy 29 382 (313) 29 069
2.1.9 Programme Management 7 267 91 7 358

TOTAL 181 750 2 283 184 033



Programme 2.1.1: Natural Resources

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

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

..




40 -


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


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

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

TOTAL 16 734 702 17 436


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

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

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

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

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

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

support to field programme (Sub-programme 2.1.1.8).

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

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

..




- 41 -


Sub-programme 2.1.1.1: Assessment and Planning

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

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

Changes at programme element level:


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

01 Land Resources Inventories and 321 (20) 301
Evaluat ion
02 Land Use Planning 202 0 202
03 Agro-Ecological Zones Studies and 627 26 653
Population Potentials
04 FAO Geographical Information System (GIS) 520 0 520
05 Assessment of Water Resources for 546 (29) 517
Irrigation Planning

TOTAL 2 216 (23) 2 193



Sub-programme 2.1.1.2: Farming Systems Development

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

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

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Changes at programme element level:


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

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

TOTAL 1 809 0 1 809




Sub-programme 2.1.1.3: Soui Management and Fertilizers

Changes at programme element level:


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

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

TOTAL 2 433 (7) 2 426


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

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

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Sub-programme 2.1.1.4: Water Development and Management

Changes at programme element level:


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

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

TOTAL 1 995 (35) 1 960


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

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

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


Sub-programme 2.1.1.5: Conservation and Reclamation

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

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

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- 44 -


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

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

Changes at programme element level:


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

01 Soil Conservation and Watershed 859 0 859
Management
02 Assistance on Control and 312 (18) 294
Reclamation of Salt Affected Soils
03 Water Quality for Agriculture 170 2 172
04 Health Aspects of Water Development 140 3 143
05 Waterlogging and Salinity Control 37 18 55
and Drainage

TOTAL 1 518 5 1 523



Sub-programme 2.1.1.6: Sustaining Resource Potentials

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

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

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

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

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

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

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45 -


Changes at programme element levelh


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

01 Policy Advice in Support of Sustainable 0 151 151
Agriculture
02 Demonstration Programme of Sustainable 0 132 132
Farming Practices in particular, Soil
and Water Conservation
03 Analysis of the Impact of Climatic O 277 277
Change on Agriculture

TOTAL 0 560 560



Sub-programme 2.1.1.7: Regional Offices

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

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

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

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

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

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



Programme 2.1.2: Crops

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

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

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

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

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

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

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

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

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


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

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

TOTAL 27 713 173 27 886



Sub-programme 2.1.2.1: Genetic Resources

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

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

Changes at programme element level:


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

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

TOTAL 1 062 (148) 914



Sub-programme 2.1.2.2: Crop Improvement and Management

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

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

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

Changes at programme element level:


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

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

TOTAL 4 356 99 4 455

* Transfer to Sub-programme 2.1.4.4.



Sub-programme 2.1.2.3: Seeds

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

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

Changes at programme element level:


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

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

TOTAL 2 974 (44) 2 930



Sub-programme 2.1.2.4; Crop Protection

Changes at programme element level:


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

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

TOTAL 4 656 323 4 979


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

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50 -


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


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

Changes at programme element level:


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

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

TOTAL 2 748 0 2 748


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

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

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51 -


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

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


Sub-programme 2.1.2.6: Food and Agricultural Industries

Changes at programme element level:

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

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

TOTAL 1 733 (69) 1 664


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

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

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Sub-programme 2.1.2.7: Regional Offices

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

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

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

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

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

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

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53 -


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

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

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



Programme 2.1.3: Livestock

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

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

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

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

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

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

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

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54 -


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

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


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


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

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

TOTAL 16 283 60 16 343



Sub-programme 2.1.3.1: Grassland, Forage and Feed Resources

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

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

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


Changes at programme element level are on the following page:

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55 -


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

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

TOTAL 1 575 214 1 789



Sub-programme 2.1.3.2: Animal Health

Changes at programme element level:


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

01 Disease Intelligence/Veterinary 916 229 1 145
Services Development
02 Control of Infectious Diseases 1 537 (144) 1 393
03 Control of Parasitic Diseases 517 13 530
04 Control of Tsetse/Trypanosomiasis 1 068 (18) 1 050
05 Application of Biotechnology in 369 114 483
Animal Health

TOTAL 4 407 194 4 601



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


Sub-programme 2.1.3.3: Genetic Resources

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

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

Changes at programme element level:


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

01 Animal Breeding and Genetic Resources 351 (351) 0
02 Artificial Insemination and Embryo 226 (226) 0
Transfer
03 Application of Biotechnology in 152 189 341
Animal Breeding and Genetics
04 Genetic Improvement of Livestock 0 314 314
05 Preservation of Valuable Endangered 0 206 206
Indigenous Breeds

TOTAL 729 132 861



Sub-programrne 2.1.3.4: Dairy Development

Changes at programme element level:


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

01 Integrated Dairy Development 543 (39) 504
02 Promotion and Improvement of 326 (154) 172
Technology of Dairy Products
03 Code of Principles on Milk and Milk 63 (31) 32
Products
04 Dairy Training and Education 0 160 160

TOTAL 932 (64) 868


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

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Sub-programme 2.1.3.5: Meat Development

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

Changes at programme element level:


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

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

TOTAL 1 290 (197) 1 093



Sub-programme 2.1,3.6: Livestock Production

Changes at programme element level:


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

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

TOTAL 1 420 (37) 1 383


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


Sub-programme 2.1.3.7: Regional Offices

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

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58 -


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

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

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

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

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

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


Programme 2.1.4: Research and Technology Development

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

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

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


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

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

TOTAL 15 320 761 16 081


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

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

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

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


Sub-programme 2.1.4.1: Research Development

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

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

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

Changes at programme element level:


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

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

TOTAL 2 815 100 2 915



Sub-programme 2.1.4.2: Agricultural Applications of Isotopes and Biotechnology

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


Changes at programme element level are on the following page:

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

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

TOTAL 2 996 59 3 055


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

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

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

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

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

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

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

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Sub-programme 2.1.4.3: AGRIS and CARIS Changes at programme element level:


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

01 Coordination of AGRIS and CARIS 530 55 585
Participating Centres
02 Strengthening of AGRIS and CARIS Centres 470 104 574
03 Systems Development and Maintenance 562 0 562
04 AGRIS Data Base Maintenance, Outputs 1 539 143 1 682
and Services
05 CARIS Data Base Maintenance, Outputs 147 3 150
and Services
06 Support to Documentation Projects 198 22 220
07 Systems Management 338 (41) 297

TOTAL 3 784 286 4 070


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

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


Sub-programme 2.1.4.4: Remote Sensing and Agrometeorology

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

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

Changes at programme element level:


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

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

TOTAL 1 294 520 1 814

* Mostly transfer from Sub-programme 2.1.2.2.



Sub-programme 2.1.4.5: Environment and Energy

Changes at programme element level:


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

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

TOTAL 1 551 9 1 560


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

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

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


Sub-programme 2.1.4.7: Regional Offices

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

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

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

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

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

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

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IPyogramme 2.1.5: Rural Development

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

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


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

2.1.5.1.1 Agricultural Education, Extension 3 163 10 3 173
and Training
2.1.5.1.2 Development Support Communications 2 274 (309) 1 965
2.1.5.2 Agrarian Reform and Land 2 559 39 2 598
Settlement
2.1.5.3 Rural Institutions and Employment 3 858 52 3 910
2.1.5.4 Women in Agricultural Production 2 510 93 2 603
and Rural Development
2L1.5.5 Marketing 1 343 (100) 1 243
2.1.5.6 Credit 1 315 100 1 415
2.1.5.7 Regional Offices 6 039 32 6 071
2.1.5.8 Field Programme Support 3 033 139 3 172
2.1.5.9 Programme Management 1 972 36 2 008

TOTAL 28 066 92 28 158
1

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

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

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

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Sub-programme 2.1.5.1.1: Agricultural Education, Extension and Training

Changes at programme element level:


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

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

TOTAL 3 163 10 3 173


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

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


Sub-programme 2.1.5.1.2: Development Support Communications

There are two major areas

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

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

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

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Changes at programme element level:


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

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

TOTAL 2 274 (309)* 1 965

* Shift to Programme 5.1.1.



Sub-programme 2.1.5.2: Agrarian Reform and Land Settlement

Changes at programme element level:


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

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

TOTAL 2 559 39 2 598

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

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

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


5ub-programme 2.1.5.3: Rural Institutions and Employment

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

Changes at programme element level:


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

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

TOTAL 3 858 52 3 910



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

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


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


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

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

01 Home Economics for Rural Development 528 (15) 513
02 Women in Food Production and Food 766 55 821
Security
03 Strengthening Policy, Planning and 569 0 569
National Machinery for Women in
Development
04 Population and Rural Development 24 31 55
05 Interdivisional Working Group on 168 il 179
Women in Development (IDWG/WID)
06 General Support and Direct 455 il 466
Assistance to Member Countries

TOTAL 2 510 93 2 603


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

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

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

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


Sub-programme 2.1.5.5: Marketing

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

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

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Changes at programme element level:


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

01 Small Farmer Marketing Development 350 (49) 301
02 Food Marketing Policies and Planning 384 25 409
03 Strengthening Management Efficiency 353 13 366
of Government Marketing Boards
04 Inputs Marketing Improvement Programme 256 (89) 167

TOTAL 1 343 (100) 1 243



Sub-programme 2.1.5.6: Credit

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

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

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

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

Changes at programme element level:


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

01 Rural Finance Policies and Structures 434 (58) 376
02 SACRED and Support to Agricultural 350 122 472
Credit Associations
03 Agricultural Banking Role and 321 13 334
Operations
04 Risk Management 210 23 233

TOTAL 1 315 100 1 415

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Sub-programme 2.1.5.7: Regional Offices

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

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

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

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

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

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

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

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

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

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



Programme 2.1.6: Nutrition

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


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

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

TOTAL 15 175 155 15 330


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

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

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

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

Thus, the programme covers in particular:

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

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

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

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


Sub-programme 2.1.6.1: Food and Nutrition Assessment

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

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

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

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work for the Sixth World Food Survey will be made in collaboration with the other UN agencies and institutions concerned. Changes at programme element level:


1988-89


Programme


1990-91


Programme Elements Budget Change Budget

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

TOTAL 2 073 (208) 1 865




Sub-programme 2.1.6.2: Nutrition Programmes


Changes at programme element level:


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


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


456 166 622


60 127


(385) 193

(4)
(9)


665 296 141


TOTAL 2 543 148 2 691


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

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

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

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

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



Sub-programme 2.1.6.3: Food Controi and Consumer Protection Changes at programme element level:


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

01 Strenothenina National Food Control 443 47 490


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


122

(10)

9


0


388

167 494 145


TOTAL 1 516 168 1 684


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

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


Sub-programme 2.1.6.4: Nutrition Policy at the Country Level

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

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

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76 -


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

Changes at programme element level:


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

01 Development of National Food and 685 540 1 225
Nutrition Policies
02 Nutrition in Development Projects 427 (27) 400
03 Changes in Food Consumption in 528 (110) 418
Relation to Urban and Rural Development

TOTAL 1 640 403 2 043



Sub-programrme 2.1.6.5: Joint FAO/IWHO Food Standards Programme (Codex AlimenarLius)

Changes at programme element level:


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

01 Policies and Procedures for Adoption 506 0 506
and Acceptance of Codex Standards
02 Elaboration of Codex Standards for 540 0 540
Specific Commodities
03 Elaboration of Codex Standards and 963 (42) 921
Guidelines for General Application
04 Coordination of Standardization 523 26 549
Activities at Global and Regional Levels
05 Publication and Application of Codex 527 26 553
Standards and Recommendations

TOTAL 3 059 10 3 069


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

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Sub-programme 2.1.6.7: Regional Offices

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

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

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

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

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



Programme 2.1.7: Food and Agricultural Information and Analysis

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

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

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

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

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

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


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

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

TOTAL 25 810 562 26 372



Sub-programme 2.1.7.1: Statistical Processing and Analysis

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

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

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

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Changes at programme element level:


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

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

TOTAL 9 503 159 9 662




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

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


Sub-programme 2.1.7.2: Situation and Outlook

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

It will be important to monitor food and agriculture developments within a macro-economic framework at the regional and world levels. A major dimension is the impact of changes in macro-economic, food and agricultural policies, including those associated with economic (structural) adjustment measures, on the performance of the sector and the welfare of those depending upon the sector for income 6E goods.

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

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

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

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

Changes at programme element level:


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

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

TOTAL 4 454 131 4 585



Sub-programme 2.1.7.3: Food Information and Early Warning System

Changes at programme element level:


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

01 Monitoring World Food Outlook 2 002 123 2 125
02 Early Warning of Food Shortages 2 359 (103) 2 256

TOTAL 4 361 20 4 381


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

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

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


Sub-programme 2.1.7.4: Statistical Development

Changes at programme element level;


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

01 National Statistical Systems 1 399 (239) 1 160
02 Social Statistics and Socio-Economic 532 127 659
Indicators
03 Data Acquisitions 1 004 (120) 884
04 Statistical Statutory Bodies 447 (41) 406

TOTAL 3 382 (273) 3 109


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

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


Sub-programme 2.1.7.7: Regional Ornces

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

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

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

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

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

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



Programme 2.1.8: Food and Agricultural Policy


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


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

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

TOTAL 29 382 (313) 29 069



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

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

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


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

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

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

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

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


Sub-programme 2.1.8.1: Global Perspective Studies

Changes at programme element level:


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

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

TOTAL 1 241 102 1 343


A new edition of "Agriculture: Toward 2000" (AT 2000) is to be prepared for 1993. This requires that preparatory work, already underway in 1989, be intensified in 199091. The main areas to be covered are: environmental aspects and sustainability of agricultural development; integration of China into the AT 2000 data base and projections model; re-evaluation of the technological parameters underlying the analysis of production

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

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

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


Sub-programme 2.1,8.2: Agricultural Policy Analysis

Changes at programme element level:


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

01 Economic Cooperation Among Developing 203 (87) 116
Countries
02 Policies and Performance of the 1 646 (264) 1 382
Agriculture Sector
03 External Assistance for Agricultural 181 (74) 107
Development
04 Domestic Resources for Agricultural 587 57 644
Development

TOTAL 2 617 .(368) 2 249


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

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

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

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

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

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


Sub-programme 2.1.8.3: Commodity Policies and Trade

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

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

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

Changes at programme element level:


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

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

TOTAL 7 746 42 7 788

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Sub-programme 2.1.8.4: World Food Security

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

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

Changes at programme element level:


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

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

TOTAL 4 315 (84) 4 231



Sub-programme 2.1.8.5: Agricultural Planning Assistance

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

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

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

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

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