CL CL 99/3 March 1991
FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS ROME
Ninety-ninth Session Rome, 10-21 June 1991
SUMMARY PROGRAMME OF WORK AND BUDGET
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.
SUN04ARY PROGRAMME OF WORK AND BUDGET
MAIN FEATURES OF THE DIRECTOR-GENERAL'S PROPOSED
SUMMARY PROGRAMME OF WORK AND BUDGET 1992-93
Consensus approval of the Programme of Work and Budget 1992-93 at the Twenty-sixth Session of the Conference in November 1991. Approach
* Application of the Conference guidelines on priority setting, namely:
articulation and justification of the problem to be addressed by FAO;
evidence of FAO's comparative advantage in the problem/sector to which
priority is given;
benefit of the priority activity to a broad segment of FAO's membership;
compatibility of the priority activity with the recognized roles of FAO; and
complementarity with other priorities.
* programme proposais based on recommendations of the Conference, the Council, the
Regional Conferences, the Programme and Finance Committees, and ail technical
intergovernmental bodies concerned.
Programme priorities and areas of increased resources
o environment and sustainable
o Technical Cooperation Programme o agricultural data development International Conference on Nutrition women-in-development o forestry
o policy advice o decentralization
1992-93 Programme of Work and Budget
DI8trlbution by Chapter before Cost Increases
(Peroentagef will vary after application of cost Increases. Thus the TCP percentage 1. expected to dedine to approximately 11.7%) Technlcal & Economic
Palicy and DIre~lan
~Oommon Service: (2.7%>
Figure 1 Proposed Distribution by Chapter
Areas of reduced resources
o Regional Offices
o administrative and support services
o selected technical and economic programmes
Strengthening technical staff infrastructure
37 new Professional posts 21 abolished Professional posts. Net decrease of 18 General Service posts.
Mandatory decisions regarding conditions of service of the staff and expected inflationary developments require a provision of cost increases of US$ 87 million (15.3 percent of the budget base). The estimates will be reviewed again during the formulation of the full Programme of Work and Budget.
To permit Member Nations to arrive at consensus approval of the Programme of Work and Budget 1992-93, there is no programme increase proposed. Despite this limitation, FAO programmes are reviewed and revamped to respond to the highest priorities determined by FAO Governing Bodies. This leads to a leaner Organization strengthened for maximum programme impact. The provision for cost increases is presently the best estimate, again to be reviewed.
(Real Costs ai 1976-77 levels) 750
7W- Cost Inreeases and
currency adjustments 55o-. Programme level 500
70-77 78-79 80-1 '82483 84-85 86-7 8849 0-1 92-93 BS4num (Proposed)
Figure 2 Evolution of FAO's Approved Budget in Programme and
TABLE OF CONTENTS
DIRECTOR-GENERAL'S INTRODUCTION .
I. BACKGROUND 1
Economic and Social Aspects 1
Agricultural Production, Forestry and Fisheries 1
Nutrition, Rural Development and Environmental
Agricultural Trade 3
Il. FIELD PROGRAMME . 5
Technical and Material Assistance 6
Trust Funds 7
Support Costs 8
Food Aid 9
III. FINANCIAL FRAM EW ORK . . il. . 1
Payment of Current Assessments il
Payment of Arrears il
Contributions Outlook 12
Miscellaneous Income 12
Working Capital Fund 12
Special Reserve Account 12
IV. PROGRAMME FRAMEWORK 15
Global Priorities and Areas of Increased Resources 15
Areas of Reduced Resources 19
Adjustments to the Outline Proposais 20
Changes in Resources 20
V. PROGRAMME BUDGET IMPACT . 23
VI. COST INCREASES 25
Biennialization and Inflation 25
Lapse Factor 26
Impact of Exchange Rates 27
Analysis of Cost Increases 28
VII. POSTS AND OTHER MEANS OF ACTION 37
ANNE X 4e a. . .
INTRODUCTION CHAPTER 1: GENERAL POLICY AND DIRECTION .
MAJOR PROGRAMME 1.1: GOVERNING BODIES
Programme 1.1.1: Conference and Council
Programme 1.1.2: Conference Services
MAJOR PROGRAMME 1.2: POLICY, DIRECTION AND PLANNING
MAJOR PROGRAMME 1.3: LEGAL
MAJOR PROGRAMME 1.4: LIAISON
CHAPTER 2: TECHNICAL AND ECONOMIC PROGRAMMES .
MAJOR PROGRAMME 2.1: AGRICULTURE
Programme 2.1.1: Programme 2.1.2: Programme 2.1.3: Programme 2.1.4: Programme 2.1.5: Programme 2.1.6: Programme 2.1.7:
Programme 2.1.8: Programme 2.1.9:
Natural Resources Crops
Research and Technology Development Rural Development Nutrition
Food and Agricultural Information and Analysis Food and Agricultural Policy Programme Management,
MAJOR PROGRAMME 2.2: FISHERIES
Programme 2.2.1: Fisheries Information
Programme 2.2.2: Fisheries Exploitation and Utilization
Programme 2.2.3: Fisheries Policy
Programme 2.2.9: Programme Management
MAJOR PROGRAMME 2.3: FORESTRY
Programme 2.3.1: Forest Resources and Environment
Programme 2.3.2: Forest Products
Programme 2.3.3: Forest Investment and Institutions
Programme 2.3.9: Programme Management
CHAPTER 3: DEVELOPMENT SUPPORT PROGRAMMES .
MAJOR PROGRAMME 3.1: FIELD PROGRAMME LIAISON AND DEVELOPMENT
MAJOR PROGRAMME 3.2: INVESTMENT 109
Programme 3.2.1: FAO/World Bank Cooperative
Programme (CP) 110
Programme 3.2.2: Investment Support Programme (ISP) 110
Programme 3.2.9: Programme Management 110
MAJOR PROGRAMME 3.4: FAO REPRESENTATIVES 110
MAJOR PROGRAMME 3.9: PROGRAMME MANAGEMENT 111
CHAPTER 4: TECHNICAL COOPERATION PROGRAMME 113
Main Features 113
Type of Assistance 114
Appraisal and Monitoring 115
Use of the Biennial Appropriation 115
Proposais for 1992-93 116
CHAPTER 5: SUPPORT SERVICES 117
MAJOR PROGRAMME 5.1: INFORMATION AND
Programme 5.1.1: Public Information 117
Programme 5.1.2: Library 118
Programme 5.1.3: Publications 118
MAJOR PROGRAMME 5.2: ADMINISTRATION 119
Programme 5.2.1: Administrative Services 119
Programme 5.2.2: Financial Services 120
Programme 5.2.3: Computer Services 120
Programme 5.2.4: Personnel Services 121
MAJOR PROGRAMME 5.9: PROGRAMME MANAGEMENT 122
CIIAPTER 6: COMMON SERVICES 123
CHAPTER 7: CONTINGENCIES 125
Provision for Regional Offices 1992-93 126
I have the honour to submit to the Council for its consideration and recommendations to the Conference, and for such guidance as it may wish to give me, the Summary Programme of Work and Budget for 1992-93.
A context of international instability
My proposais are prepared in the sobriety which cornes from a deep-rooted awareness of the problems which are shaking the international community at the present time. Large areas of the world are wracked by military, civil and human strife and destruction. For a number of countries and peoples, development has become subordinated to mere survival.
Even for those countries and peoples who are not directly involved in war and political restructuring, economic conditions portend more serious difficulties. The problems of external debt will be forcibly more acute as international resources for development are sidetracked for military might. And the difficulties in successfully concluding the Uruguay Round of the GATI trade negotiations presages a time of grave difficulties in the economic sectors which are the concern of our Organization.
The calls on FAO
Adversity is the mother of courage and the will to overcome. It is therefore with a revived sense of courageous determination for FAO action that I present this Summary Programme of Work and Budget.
The political will to end the Cold War is a promise that the international community is capable, when it so wishes, to act in concert on problems of international significance. There is undeniable evidence of renewed hopes on the role of the United Nations family and its capacity to address world problems. In this context, it is imperative that in the face of continuing population growth and massive poverty, FAO not relent its efforts to assist Member Nations in increasing food production, leading to improved nutrition and lasting food security. The world also continues to look to FAO to quell agricultural emergencies. This means a relentless fight as one emergency the screwworm fly appears to follow another the locust. FAO's basic mission has not changed. It is called, however, to address an ever broader range of issues in an integrated manner.
The Council is aware from the debates of its last session in November 1990, of the increasing demands placed on the Organization. The Council's own recommendations and the requests from other important intergovernmental meetings, such as the FAO Regional Conferences held last year, indicate a distinctive common thread: a unanimous call for FAO to be a major protagonist inter alia in the sustainable development effort; in the protection, management and productive utilization of animal and plant genetic resources and, more generally, in the field of biodiversity; in policy analysis and advice to Member Nations; and in the facilitation of a fair trading regime for food and agricultural products ail of which require a fitting response.
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The constructive directives of the Conference
While the preparation of any Programme of Work and Budget is a sensitive and difficult process at any time, given limitless demands and limited resources, this Summary has been prepared from the vantage point of several important and positive factors.
The outcome of the Review of Certain Aspects of FAO's Goals and Operations by the last FAO Conference supported "the conclusion of the experts that the Organization remains a solid and dynamic institution and their views on the continuing validity, relevance and importance of the objectives, strategies, roles and activities of the Organization in dealing with the problems of food and agriculture in the world as a whole and in individual member countries." (Conference Resolution 10/89, preambular paragraph 6.)
Never before have I been as constructively guided in the formulation of a Programme of Work and Budget as I have been by the Conference outcome of the FAO Review. The Conference not only endorsed but re-assessed the roles of FAO, the areas of FAO's comparative advantage, the factors which should guide its relationship with other organizations, and the manner in which the links between the Regular and Field Programmes should be strengthened further.
The Conference identified clear priorities, namely FAO's increased involvement in resources and the transfer of technology, biotechnology for the benefit of developing countries, sustainable development and the protection of the environment, policy analysis and advice, support for the promotion of international trade, enhancement of the role of women in agricultural and rural development and economic and technical cooperation among developing countries. This guidance, as well as the rich debate of the Council at its Ninety-eighth Session in November, has served to formulate my proposals.
In the process of formulating these proposals, we have also applied the guidelines on priority-setting endorsed by the Conference, namely:
-: articulation and justification of the problem to be addressed by FAO;
- evidence of FAO's comparative advantage in the problem/sector to which
priority is given;
benefit of the priority activity to a broad segment of FAO's membership;
compatibility of the priority activity with the recognized roles of FAO; and
complementarity with other priorities.
Priorities higher and lower
The programme priorities and areas of increased resources which are proposed in the Summary comprise environment and sustainable development, agricultural data development, women in development, policy advice, the Technical Cooperation
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Programme, the International Conference on Nutrition, Forestry and Decentralization. These priorities emerge clearly from ail the recommendations of the Conference, the Council, the Regional Conferences, the Programme and Finance Committees and ail the technical intergovernmental bodies whose views and recommendations are drawn upon in formulating my proposais.
At the same time, in order to contain the request for resources, I am proposing areas of substantially reduced resources, notably for the Regional Offices, for administrative and support programmes and a range of technical and economic programmes to which, as a deliberate sacrifice, a relatively lower priority has to be accorded.
The financial framework affecting the Summary Programme of Work and Budget relates to three main areas.
Firstly, the financial management of FAO continues under the threat of the magnitude of the arrears of some Member Nations and delays in payment of the current assessments due. This financial uncertainty, over several biennia, has sapped the energy and morale of the Secretariat at ail levels and is still with us. However, this financial uncertainty does not contradict the basic financial soundness of the Organization. Expenditures are kept within authorized budget levels and liabilities are backed by the legal obligations of our Member Nations.
A second area of concern is the prospect of a radically altered regime from the tripartite system which has so far governed FAO's technical assistance activities, together with the prospect of lower reimbursement for support costs from UNDP. I remain confident that wisdom will prevail in preserving the interests of both recipients and donor countries in shaping new arrangements. There are emerging and converging calls for preserving the benefits of this tripartite relationship and avoiding a traumatic change-over period which, I trust, will not go unheeded.
Nevertheless, the Council undoubtedly realizes that the issue is far from marginal to the decision-making process of the Regular Budget, in view of the close inter-action between the Regular and Field Programmes. For the time being, I see no alternative to assuming a level of support costs income to be made available to FAO during 1992-93 roughly comparable to that of the present biennium. I need to draw attention to the potentially devastating consequences on the Regular Programme of any eventual drastic drop in such income should the decisions of the UNDP Governing Council in June point to such an outcome. I trust FAO Governing Bodies will see to it to protect FAO's capacity to deliver its field programmes effectively through appropriate masures. For my part, I have already taken steps to reduce established posts under support costs funding whenever feasible.
Thirdly, the proposais in the 'Summary include a provision for cost increases estimated at US$ 87 million. In percentage terms this provision is comparable to the provision for cost increases approved by the Conference for the Programme of Work and Budget 1990-91.
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As always, we emphasize that these estimates are prepared far ahead of the period to which they apply, i.e. from one to three years. Cost increases are not of FAO's making. We pursue a tradition of estimates for cost increases in past Programmes of Work and Budget erring on the conservative side. These estimates are the result of intensive analysis, item-by-item, of ail the determining factors such as probable changes in salaries in both Professional and General Service staff; likely increases in the cost of supplies and services; and all other factors pertaining to the work of an organization like FAO which operates on ail continents with a broad variety of currencies and makes use of a broad mix of means of action.
The estimates are explained, in more detail than ever before provided at the stage of the Summary. They have been developed with the same methodology for calculation as used in the past and approved by the Finance Committee, Council and Conference. Even at this stage, however, the estimates are not final.
They will again be reviewed during the formulation of the full draft Programme of Work and Budget and again be submitted for detailed examination by the Finance Committee at its Seventy-second Session in September 1991.
A brake on programme growth
At the stage of the Outline Programme of Work and Budget 1992-93 which I submitted to the Joint Meeting of the Programme and Finance Committees in January 1991, I had proposed a real programme increase of US$ 2 250 000 0.34 percent of the recosted budget base.
A few members of the Committees reiterated their government's support of a policy of zero growth for organizations of the UN system. They underlined that present circumstances of great restraint affecting national public budgets in most, if not all Member Nations, called for similar restraint in international organizations. They stressed that the pursuit of this policy should not be perceived as an intent to denigrate the value of FAO's action, but would be consistent with budget decisions reached in other governing bodies of the UN system.
A great majority of the members of the Committees emphasized the magnitude of demands for FAO's assistance and services in all regions. FAO's programmes had to be seen against a context of continuing demographic pressures in developing countries and complex challenges affecting world food and agriculture development. They considered that FAO should be given the necessary means to respond adequately and effectively to these challenges. In their view, the application of a zero growth policy to FAO would, in fact, mean regression and reduced capacity for the Organization to meet expressed requirements in Member Nations. However, they were not insensitive to the need for budgetary restraint, especially in view of the continuing difficulties experienced by many Member Nations in meeting external obligations.
In the light of these views, and in order to permit the Committees to reach a consensus, I indicated my readiness to formulate the Summary Programme of Work and Budget for 1992-93 on the basis of no real programme increase, while respecting the programme
priorities endorsed by the Committees. I have done so in the proposais submitted in this document. Proposed allocations for key activities had to be cut and the extent of sacrifice spread further.
The Committees agreed that this offer represented a genuine effort at compromise between conflicting objectives of, on the one hand, the need for restraint in the request for additional resources and, on the other, the need to meet urgent priorities for FAO's action. They underlined the desirability of Member Nations joining in a consensus leading to the approval of the Programme of Work and Budget for 1992-93 in order to inject new vigour into the Organization and a new and constructive atmosphere from which the Organization and its membership could only benefit. The hope was also expressed that this renewed consensus on the budget would lead, through the timely payment of contributions, to an end to the protracted financial difficulties experienced by FAO in the recent past.
Accordingly, the Committees reached a consensus in recommending that I prepare the Summary Programme of Work and Budget for 1992-93 on the basis of no real programme increase, maintaining the current level of the budget in real terms and containing cost increases to the maximum extent possible while providing for the requirements for the implementation of the Programme of Work approved by the Conference.
The search for a consensus approval of the Programme of Work and Budget 1992-93 is the repeated declared aim of Member Nations. At the Ninety-eighth Session of the Council, I had announced that my proposals for the Programme of Work and Budget 1992-93 would be "contained". I have observed this promised restraint in my proposais and have further reduced the initial proposals that I submitted in the Outline to the Programme and Finance Committees. The Council will have before it the views of the Programme and Finance Committees from their sessions in January and in May 1991. It will also have the views of the Committee on Agriculture concerning Major Programme 2.1 Agriculture and of the Committee on Fisheries regarding Major Programme 2.2 Fisheries. I sincerely believe that the Council has every possibility to unite in a consensus, as was achieved in the Programme and Finance Committees.
As always, I am open to the guidance of the Council for the preparation of my proposais for the full Programme of Work and Budget. I venture to hope that Member Nations will unite in a renewed commitment to their Organization and pursue the approval of the Programme of Work and Budget 1992-93, by consensus, with the overriding aim of sustaining and enhancing the Organization's capacity to serve its Member Nations.
Edouard Saouma Director-General
1. The Council reviewed the most recent developments affecting world food and
agriculture at its Ninety-eighth Session, in November 1990, particularly when discussing the State of Food and Agriculture (SOFA). The main elements of the Council's assessment are briefly recalled below, together with other aspects of the world situation which have influenced the formulation of the Director-General's proposais.
Economic and Social Aspects
2. The Council noted with concern some features of the global economic
environment affecting agriculture and the rural sector, which recent events had made yet more uncertain. On the one hand, the positive long-term process of increasing interdependence and integration of nations has continued. On the other hand, the recent speed of change involving radical political and economic transformations has ushered in a period of potential instability in economic relations between countries. Furthermore, recent events in the Near East Region have affected the prospects of oil-importing countries and exacer"lated economic difficulties in those countries dependent on remittance transfers. Some of these developments undermine major efforts underway in many countries to undertake policy reforms in agriculture and other sectors, often as part of structural adjustment programmes.
3. The Council also expressed concern that the burden of external debt still
continues to constrain severely development prospects for many countries. It welcomed initiatives aimed at reducing or managing debt for low-income countries, and the rescheduling of debt benefiting lower- to middle-income debtor countries.
Agricultural Production, Forestry and Fisheries
4. World agricultural production increased by 2.4 percent in 1990. While less than
the large recovery of the previous year, this is significantly above the depressed growth rates of the 1986-88 period. Such an increase, being based particularly on a record harvest of cereals, permits cereal stocks to be rebuilt from their low levels of the immediately preceding years. Nevertheless, the Council cautioned that the current food security situation remains fragile, with several countries facing food supply emergencies, especially in Africa. In this connection, an appeal was made to avoid the type of problems encountered in previous crisis situations, by early recognition of the seriousness of impending shortages by both donors and recipient countries so that action could be taken as early as possible. The world food security situation, therefore, requires continued vigilance. Any abrupt changes in international market prices could render the situation yet more difficult for the already hard pressed oil-importing, food-deficit countries. The food-importing industrialized countries also have an interest in maintaining open and stable world markets for major food commodities.
5. The Council underlined the regional disparities in food and agricultural situations
and overall development prospects, in the East and West, as well as the North and South. In Africa and Latin America in particular, food production increases are expected to fall below population growth rates in 1990, a disquieting feature in view of the disappointing agricultural performances in these two regions in previous years and the grave economic problems they face, which demand far-reaching structural adjustment efforts. Food production increases are expected to exceed population growth in a number of populous countries of Asia, a feature which has been matched, in some countries of the region, by relatively rapid rates of economic growth, industrialization and trade. In the Near East Region, a significant recovery is expected in 1990 in food and agricultural production, which would largely offset the large shortfall of the previous year. However, rates of overall economic growth are now in jeopardy, in view of events in the region.
6. The Council underlined forestry's key role in environmental protection and in
providing sustainable livelihoods for rural people. The current rapid rate of loss of tropical forests is particularly alarming. The destruction of tropical forests arises in part from the need by land-deprived people to gain access to this resource for their survival, but also from a lack of sufficient awareness on the part of policy makers of the value of traditional forest products. Loss of forest resources is not limited to tropical ecosystems, e.g. the significant losses sustained through forest fires, particularly in southern Europe. The Council reiterated the importance of the Tropical Forestry Action Programme (TFAP) as a unique framework for the conservation and sustainable use of tropical forest resources and underlined the need for determined international action to reverse current threats to world forests.
7. With regard to fisheries, the Council welcomed the increase in the global fish
catch in which developing countries have shared and which has been accompanied by a continued rapid growth in fishery trade. However, most of the increase in the global catch is in areas subject to considerable stock fluctuations and therefore could possibly not be sustainable. Also per caput fish consumption in some developing countries is declining at a time when their exports to developed country markets are expanding. The possible conflicts between economic, ecological and social policies and objectives in the fisheries sector need to be addressed by FAO.
Nutrition, Rural Development and Environmental Aspects
8. Despite the modest overall progress in world agricultural production, the Council
deplored the prevailing widespread incidence of chronic hunger and undernutrition which affect an estimated 20 percent of the population of developing countries. The complexity of the links between agricultural production, food supplies and human health, and the intractability of the poverty-hunger problem, underline the importance of the forthcoming International Conference on Nutrition jointly sponsored by FAO and the World Health Organization (WHO).
9. The Council agreed that, as a general rule, increased domestic food production
is a critical element in improving the food security situation of low-income food-deficit
countries, including facilitating access by the individual household to food supplies. Means of promoting domestic food production are specific to the particular situations of individual countries, but they generally centre on such key areas as liberalization of trade, agrarian reform, producer incentives, input supply and marketing institutions. Above ail, government policy has to focus on the farming community. In some countries, success has been achieved in focusing policies and incentive measures on selected basic foods. Therefore, the Council emphasized again FAO's key role in promoting food and agricultural production and rural development, as the main source for agricultural information and documentation, a forum for discussions on global issues and problems and negotiations of instruments for their resolution, and an important source of technical and policy assistance and advice.
10. In view of the links between high rates of population growth, inadequate economic growth, the incidence of poverty and environmental degradation, it is of paramount importance to address environmental concerns at national level. The Council noted that, while the more intensive use of yield-raising inputs such as fertilizers and pesticides could raise food production to meet the rising demand for food from expanding populations, the over-use of such inputs could lead to serious environmental problems, a lesson which was also being learnt by some industrialized countries with highly intensive agriculture. FAO's priority to aspects of environmental protection and sustainability of production systems is, therefore, undisputed.
11. The Council addressed the complex issues currently affecting agricultural trade. There are instances of very high levels of support and protection provided to agriculture in major industrialized countries, such as domestic support, border protection and export subsidies. These have adverse effects on access by many countries to world commodity markets and on the development of their agricultural sectors. Appeals have been made to these industrialized countries to demonstrate the necessary flexibility in negotiations on agriculture in order to achieve an outcome for the Uruguay Round of Multilateral Trade Negotiations which would be fully consistent with the agreed objectives. A number of developing countries continue to be dependent on exports of agricultural and tropical products for their foreign exchange earnings, which are needed more than ever before to service their external debt and augment their import financing capacity. Account has also to be taken of the possible adverse effects of the process of agricultural reform on the costs of food imports by net food-importing developing countries and of the possible consequences of a too hasty liberalization of agricultural trade on the food security of the most vulnerable countries.
12. The Council, therefore, stressed the need for the Uruguay Round of Multilateral Trade Negotiations to be brought to a successful conclusion. This should embrace a full package of measures to liberalize world markets and to achieve a more open and balanced international trading system, in line with the objectives of the Punta del Este Declaration and the Mid-term Review Agreement. It was recalled that these objectives include the achievement of substantial and progressive reductions in agricultural support and protection, sustained over an agreed period of time; these would result in correcting
and preventing restrictions and distortions in world agricultural markets. The objectives also include the fullest liberalization of trade in tropical products, including in their processed and semi-processed forms.
13. The continued negotiations of the Uruguay Round only serve to underline the need for further efforts to attain these objectives.
H. FIELD PROGRAMME
14. The close interaction between the Regular and Field Programmes represents one of the Organization's major strengths as re-emphasized during the Review of FAO's goals and operations. The formulation of the Regular Programme thus needs to consider the developments and the financial prospects relating to the Field Programme. These are summarized below.
15. The Organization, through its Investment Centre, has continued to mobilize external and domestic investment for agricultural and rural development in developing countries. Up to the end of 1990, 835 projects prepared with FAO's assistance have been approved for financing. Total investments involved in these projects amount to more than US$ 40 900 million, of which US$ 20 835 million have been committed by multilateral financing institutions, much of it on concessional terms.
16. During 1990, the Investment Centre carried out 191 missions, 120 under the FAO/World Bank Cooperative Programme (CP) and 71 under the Investment Support Programme (ISP). Twenty one (43 percent) of the World Bank's agricultural projects approved for financing during the Bank's fiscal year 1990 (ended June 1990) were prepared by the CP. During 1989 and 1990, the ISP continued to work at a high level with IFAD, the African Development Bank and the UN Capital Development Fund. Cooperation is gradually resuming with the Asian Development Bank and negotiations were initiated with the Inter-American Development Bank for a renewal of cooperation.
17. In 1990, 38 projects prepared with Investment Centre assistance were approved for financing, for total investments of US$ 2 681 million. This amount includes US$1 480 million in external commitments, 44 percent of which was on concessional terms. Sub-Saharan Africa continued to receive major emphasis in Investment Centre activities. During the year, 40 percent of Investment Centre work was in this region.
18. The level of work for the next two years is expected to remain the same as at present. The World Bank has reiterated its commitment in support of the FAO/World Bank Cooperative Programme, which is expected to continue to formulate a substantial proportion of the Bank's agricultural projects. No significant change is foreseen in the geographical balance of CP activities, except for a small increase in operations in Eastern Europe. Demand from the various financing institutions for the services of the Investment Support Programme continues to be strong. While the overal volume of activities is expected to remain unchanged, slight shifts may occur in the respective levels of cooperation with individual financing agencies. Joint activities with IFAD and UNCDF are likely to continue at a high level, and cooperation with the AsDB is expected to expand somewhat. Work with the AfDB is unlikely to expand beyond its present level due to the limited absorptive capacity of many African countries. Once
negotiations with the IDB for a new cooperative agreement are successfully concluded, there should be an increase in activity in Latin America and the Caribbean. Technical and Material Assistance
19. FAO's pre-investment, technical assistance and material support programmes have been relying on a steady mix of funding sources, as shown in the following table:
EXPEMDI'URES ON FAO FIELD PROGRAMMES FUNDED FROM EXTRA-BUDGETARY SOURCES (US$ million, by programme and programme category)
1. FAO/UNDP Programme
2. Trust Fund Technical Assistance
FAO/Government Cooperative 44.4 43.8 56.8 65.4 73.0 72.5 74.6 75.8 96.1
Associate Professional Officer Scheme 13.0 12.6 13.7 13.2 12.9 13.2 16.5 18.3 22.9
Near East Cooperative Programme 3.0 1.3 0.7 0.9 0.8 0.9 0.6 0.3 0.6
Unilateral Trust Funds 24.5 33.5 38.2 42.1 34.7 29.6 31.2 30.5 33.2
PFL Special Account 2.7 1.5 0.5 0.6 0.6 0.6 0.8 0.6 0.5
Freedom from Hunger Campaign/AD 1.0 1.1 1.0 1.1 0.9 1.3 1.2 1.6 2.6
UN Fund for Population Activities 1.9 0.9 1.7 2.1 1.3 2.0 2.5 4.0 5.6
UN Environment Programme 0.9 1.9 0.8 0.9 0.6 0.8 0.9 0.6 0.9
Other UN Organizations 3.1 4.7 10.5 9.4 7.1 6.7 7.8 7.7 7.4
Special Relief Operations (OSRO) 15.5 12.2 5.3 4.0 4.1 4.7 4.4 2.7 4.6
International Fertilizer Supply Scheme 3.8 0.1 3.2 1.5 1.6 0.8 1.3 0.2 0.3
Emergency Centre Locust Operations 7.0 7.4 9.2 11.3 4.7
Screwworm Emergency Centre for North 4.9
Miscellaneous Trust Funds 5.9 6.7 7.2 6.4 6.6 7.4 8.6 10.2 10.8
SUB-TOTAL 119.7 120.3 139.6 147.6 151.2 147.9 159.6 163.8 195.1
TOTAL 260.8 236.8 248.8 263.5 280.0 276.3 314.6 328.1 378.1,
1 Estimate; 1990 figures for Trust Funds include commitments so as to harmonize data with UNDP delivery.
20. The trend of growing FAO/UNDP project expenditures, which resumed in 1985, continued through 1990. Over the last five years, project delivery increased by some 58 percent and is now back to its previous peak level of around US$ 182 million (in 1981). However, in real terms, this is considerably lower than the effective volume of technical assistance delivered in the early part of the eighties. The share of UNDP in FAO's extra-budgetary field programmes in 1990 was 48.4 percent.
21. The pledging conference held in November 1990 has resulted in an estimated US$ 1300 million being available for UNDP programmes in 1991. Compared to the previous year, there is an estimated increase in available resources of about 7 percent. The net result of the pledging conference should, however, be seen in the light of the recent fluctuations of the US dollar which could have a significant impact, as pledges are usually made in national currencies.
22. Throughout the eighties, there has been a steady increase in Trust Fund delivery, which reached an estimated level of over US$ 195 million in 1990 or 51.6 percent of total extra-budgetary field programmes. Taking into account the level of recent approvals and expected contributions from various funding sources, the present level of project delivery is expected to be maintained in the near future.
23. The FAO/Government Cooperative Programme (GCP) remains the major component of the Trust Fund Programme. Estimated delivery in 1990 (expenditures and commitments) was around US$ 96 million. Part of this steady growth is due to substantially increased support from major donors such as the Government of the Netherlands. The Associate Professional Officer Scheme has also attracted continuing support, with a growing number of APOs, especially in the field. The surge of expenditures since 1986 linked to the activities of the Emergency Centre for Locust Operations (ECLO), with the generous assistance of several donor governments, has permitted a timely response to and effective control of locust invasions over most of Africa. Assistance through the Screwworm Emergency Centre for North Africa (SECNA) was initiated in 1990 and has led to active FAO leadership in control and eradication activities.
24. Unilateral Trust Fund expenditure in 1990 amounted to some US$ 33 million. Within this category, the technical assistance projects funded from development bank loans continued to gain importance. Further expansion is naturally dependent on the beneficiary governments requesting FAO's involvement in technical assistance components of bank loans. FAO's intervention has been m0stly confined so far to institution-building aspects and training activities.
25. There appear to be good prospects for further expansion of FAO population activities, due to increased support from the UN Fund for Population Activities (UNFPA).
26. FAO's Special Action Programmes continue to play an important role in attracting financial support for well-defined technical sectors. Under the Government Cooperative Programme, donors stress their preference to funding a long-term programme over individual, separate projects. These programmes are based on FAO's Regular Programme priorities and include field activities at both regional and national levels. Among the priority programmes that received strong support recently are: the Tropical Forestry Action Programme; the Food Security Assistance Scheme in its expanded concept; Fertilizers, Seeds, Pest Control and Marketing for the benefit of small farmers; and Aquaculture and Small-scale Fisheries. Most of these programmes have a strong focus on the role of women in rural development and on environmental impact.
27. The Council has been regularly apprised, including at its last session in November 1990, of developments regarding support costs successor arrangements for UNDP-funded technical assistance, to be applied from 1992 onwards. The Council is, therefore, well aware of the critical importance of any new arrangements and of other proposals which could have far-reaching consequences on the present system of tripartite cooperation involving governments, the UNDP and the specialized agencies of the UN system.
28. It is recalled that the so-called "framework" decision adopted by the UNDP Governing Council in 1990 envisages three main elements of UNDP programme and project support:
TSS1" technical support at the programme level (i.e. for programming,
sectoral and sub-sectoral analytical work, policy studies, etc.) to be funded from a new facility to which 2 percent of programmable resources would
be allocated by UNDP;
TSS2: technical support at the project level (i.e. project identification,
design, evaluation, monitoring, etc.). As a working hypothesis, 2 percent
of programmable resources would be set aside for this purpose;
AOS: administrative and operational support for projects (i.e. recruiting
and administering experts and consultants, sub-contracting, procurement of equipment, fellowships, etc.) to be charged to the individual country IPF.
In principle, 10 percent of the country IPFs would be allocated for this
29. Intensive discussions at both intergovernmental and inter-agency levels are underway in order to usher in a system which would safeguard the interests of both recipient and donor countries, as well as preserve the benefits from the current tripartite relationship. After considering a progress report at a special session in February 1991, the UNDP Governing Council is expected to reach a decision in June 1991. However, at the time of writing, it appears that much remains to be done to clarify interpretation
of the "framework" decision, in agreeing on practical modalities and in ensuring adequate transitional measures.
30. A predominant share of food aid projects of the UN/FAO World Food Programme relates to agricultural and rural development, including afforestation and desertification control activities. FAO technical inputs contribute to the formulation of these projects, while the range of project activities each year depends on the nature of requests from recipient governments. Cooperation between FAO and WFP will continue to cover the above aspects.
I. FINANCIAL FRAMEWORK
31. The liquidity problems which have affected the financial management of the Organization for the last two years are not yet over. The prospects for the coming biennium are difficult to forecast but are analyzed below. Payment of Current Assessments
32. The Council, at its Ninety-eighth Session in November 1990, noted the status of contributions at the time of its session. 33. As seen from the following table, the percentage of assessments received by the end of 1990 shows a distinct improvement over the preceding two years.
1989 240 920 181 028 59 892 75.14
1988 240 920 184 667 56 253 76.65
34. The position of Member Nations with regard to meeting their obligations has deteriorated in 1990. The comparison shows a decrease in the number of Member Nations who paid in full and an increase in Member Nations who made no payments.
No. of Member Paid in full Paid in part No paynient Nations
1990 157 65 28 64
1989 158 79 25- 54
1988 158 79 27 52
Payment of Arrears
35. At the beginning of 1990, the amount of arrears relating to 1989 and prior years stood at US$ 150.3 million. By the end of 1990, the amount of arrears stood at US$ 129.3 million.
36. Both with regard to 1990 assessments and as regards arrears, the largest contributor needs special mention, the total outstanding from it amounting to US$ 199.7 million.
37. The current Programme of Work and Budget included an estimate of US$ 12.0 million of Miscellaneous Income. By the end of 1990, Miscellaneous Income amounted to US$ 13.7 million.
38. This amount is, of course, exclusive of the special voluntary contribution of Italy of US$ 15 million received in 1990, for the Technical Cooperation Programme, which is credited to Miscellaneous Income and provides corresponding relief to the Regular Budget.
39. The realization of estimated Miscellaneous Income depends mainly on the level of investible funds available to the Organization and on interest rates in effect. Given the uncertainties on both counts, no attempt is made to estimate the Miscellaneous Income of 1992-93 at the stage of the Summary.
Working Capital Fund
40. By Resolution 16/87, the Conference raised the authorized level of the Working Capital Fund to US$ 17 million from 1 January 1988 and to US$ 20 million from
1 January 1989.
41. At 31 December 1989, the amount owed by Member Nations was US$ 151 036 967. In accordance with Financial Regulation 6.2(a)(i), US$ 17 977 238, which was the balance on the Fund at that date, was transferred to the General Fund. Thus, the balance on Working Capital Fund to be carried forward to 1990 was zero.
42. As of end 1990, a further US$ 156 000 had been received from Member Nations towards the increases for 1988 and 1989.
Special Reserve Account
43. The effective working budget for the biennium 1990-91 is US$ 568.8 million. Thus, the authorized level of the Special Reserve Account is US$ 28 440 000. In view of the accumulated deficit on the General Fund at 31 December 1989 of US$ 52.7 million, no funds were available to increase the balance on the Account to its authorized level.
44. Conference Resolution 13/81 authorizes the Director-General to use the funds in the Special Reserve Account to finance budgetary expenditures pending receipt of contributions, whenever the Working Capital Fund is insufficient. However, in view of
the uncertainties as to the Lira/Dollar exchange rates in 1990-91, the Director-General decided to carry forward the full balance of the Account, of US$ 19.5 million at 31 December 1989, into the next biennium. In August 1990, the Director-General decided to authorize the use of US$ 16 million of the Special Reserve Account as internal borrowing pending receipt of arrears.
45. During 1990, the unfavourable exchange rate of the US Dollar to the Italian Lira generated a negative variance on staff costs of US$ 10.2 million. Net profits on exchange of US$ 136 000 were realized on other transactions.
46. Member Nations contributed a further US$ 0.2 million during 1990 against the Special Assessment of US$ 12.3 million in 1988.
IV. PROGRAMME FRAMEWORK
47. As mentioned in the Director-Generals Introduction, the proposais in this Summary do not involve any overall real growth. They are the result of hard choices and rigorous selection among a number of priority actions, as determined or recommended by FAO Governing Bodies. Overall budgetary constraints do not permit well-supported FAO programme priorities to be funded at optimal levels and entail the curtailment of several activities. The programme framework is briefly described below.
48. As for every biennial programme budget formulation exercise, the point of departure has been the cumulative guidance provided by FAO's governing and advisory bodies. These guiding principles are amply recalled in the Introduction to this document. Accordingly, the proposais formulated by ail FAO units have been sifted through an intensive process of internal review and appraisal, from the level of respective units to organization-wide senior management meetings convened by the Director-General.
49. The substantive thrust of the Director-General's proposais was indicated in the Outline submitted to the Joint Meeting of the Programme and Finance Committees held on 28-30 January 1991. The report of this Joint Meeting is submitted to the Council (document CL 99/4). The views expressed by these Committees have been summarized in the Director-General's Introduction above. The modifications to the original proposais of the Director-General, as a result of the consensus recommendation of the Joint Meeting, are indicated below. More details on the scope of planned activities under each programme are given in the Annex. In order to facilitate their consideration by the Council, the main policy issues embodied in the proposais are recalled as follows.
Global Priorities and Areas of Increased Resources
Environment and Sustainable Development:
50. The priority on environment and sustainable development has been the object of particular scrutiny. It was specifically highlighted in the instructions issued by the Director-General to FAO programme managers for the preparation of their submissions to the Outline Programme of Work and Budget. Meetings of the Interdepartmental Working Group and the Steering Committee were specially held to examine Programme of Work and Budget proposais. The need for FAO not only to participate fully in the preparatory process to the United Nations Conference on Environment and Development (UNCED) but to ensure adequate follow-up to this crucial event will be of paramount importance during the 1992-93 biennium. It is, therefore, proposed to strengthen FAO's coordinating unit dealing with these subjects under the authority of the Special Adviser to the Director-General and to enable it to support pertinent crosssectoral activities throughout FAO. These actions require a net increase of
US$ 1.5 million. This includes support to cross-sectoral actions particularly in the following areas:
integration of environment and sustainability in FAO's policy advice and
integrated coastal zone management; and
51. In addition, a number of units are planning to strengthen their activities related to sustainable development: e.g. Land and Water Development Division (Action Programme on Water and Sustainable Agricultural Development); Human Resources, Institutions and Agrarian Reform Division (environmental education and training); Policy Analysis Division (policy advice and environmental accounting); Statistics Division (environmental data and statistics); etc.
- Agricultural Data Development:
52. Action in 1992-93 will build primarily on the WAICENT (World Agricultural Information Centre) project after the considerable investment in conceptual and technical design work which has already taken place in the past and present biennia. WAICENT is an organization-wide undertaking which involves virtually ail the FAO units which assemble, process or generate data but the bulk of the needed additional resources, US$ 1.4 million, is proposed to be provided through the Statistics Division (ESS). Moreover, there are other actions planned in 1992-93 to enhance FAO's role of world assembler and disseminator of information, e.g. by strengthening work on aquaculture statistics, environmental data (as mentioned above), and crop assessment in the Global Information and Early Warning System (GIEWS), as well as expanding applications of Geographic Information Systems (GIS).
53. Continued attention needs to be paid to the implementation of FAO's Plan of Action for the Integration of Women in Agricultural and Rural Development through further activities on training, policy and planning advice, project development, etc. A limited increase is therefore proposed for the relevant unit in the Economic and Social Policy Department, which will be matched by higher allocations, where required, in all concerned "sectoral" units.
- Policy Advice:
54. The policy advisory role of FAO involves a number of units, with the Policy Analysis Division (ESP) at its hub. A number of actions are being implemented in the present biennium to strengthen FAO's capacity to provide policy advice to Member Nations (coordinating committees, supportive information systems, etc.). It is proposed to go further in 1992-93 by providing additional resources and staff to the ESP Division, with due attention to its geographical focus.
Technical Cooperation Programme (TCP):
55. The Director-General has been duly guided by Conference Resolution 9/89 on Increase in Allocation for the Technical Cooperation Programme in forthcoming biennia.
56. Beneficiary countries are deeply attached to the prompt and effective assistance TCP projects provide them. Ail Member Nations recognize TCP's value and special role in FAO's developmental action. However, differing perceptions exist on the desirable level of the TCP appropriation in relation to the overall budget.
57. It is thus proposed to meet, in a limited way, the expectations embodied in Conference Resolution 9/89, through a net programme increase for the TCP of US$ 4 million. The percentage of the TCP appropriation to the total budget is presently 11.9 percent. It appears that this percentage may fall further, when the budget level is adjusted for cost increases and the exchange rate of the next Programme of Work and Budget.
58. This is entirely due to the fact that, over several biennia, the pace of cost increases at headquarters has consistently outstepped the cost increases needed to maintain the "purchasing power" of the TCP, the expenditures for which occur essentially in the "South". It is, therefore, emphasized that TCP has not suffered any loss in terms of the volume of outputs and services provided to beneficiary countries. The decrease in percentage to the total budget observed in recent biennia is the result of purely financial factors. It must also be stressed that these figures correspond to the rate of exchange voted by the last Conference of Lire 1 335 to US$ 1. Should the US dollar continue on its current weak course, the percentage share of the TCP in the total budget is likely to end up slightly lower.
59. Leaving aside the issue of "percentage", the proposals mean that the greatest net
increase is assigned to the TCP.
International Conference on Nutrition:
60. This major milestone in the rich history of FAO, in collaboration with WHO, is due to be held at the end of 1992. Substantial costs will need to be borne by the two cosponsoring organizations for the preparations, organization and follow-up to the Conference. It is hoped that donor governments will see their way to providing significant extra-budgetary contributions, particularly for country-level activities. To the
maximum extent possible, some of the costs will be absorbed within existing allocations, especially of the Nutrition Division. However, this division needs to cater for other wellestablished priorities such as work on food standards, food control infrastructures, etc., which cannot be compressed and in some cases even deserve further strengthening. It is, therefore, necessary to provide it with a net increase of US$ 1 million.
61. In view of the consistent and pressing calls on the Organization to give "positive" discrimination to its forestry activities, a net programme increase of some US$ 435 000 is proposed for the Forestry Department. This is, inter alia, to meet increased backstopping requirements for the implementation of the Tropical Forestry Action Programme and other priority areas of the Forestry Department, such as work on forest protection, forest sector analysis and the coverage of forestry aspects in the appropriate legal instrument. Some reduced provisions in the Regional Offices result in a net increase of US$ 110 000 under Major Programme 2.3, Forestry.
62. The further consolidation of FAO's country representations (FAORs) is a Conference directive. On the one hand, they provide the most direct and reliable link between FAO and its developing Member Nations and ensure that FAO's developmental action achieve maximum impact. On the other hand, FAO's presence in Member Nations becomes even more relevant in a context of growing national execution and more versatile and sophisticated assistance and advisory services from the United Nations system. This drive for consolidation and modernization of the FAORs was one of the key recommendations stemming from the FAO Review. In order to build on past and ongoing progress, a net increase of US$ 2.7 million is proposed for 1992-93, without adding to the number of offices so far authorized by the FAO Conference.
Enhanced Coordination with Other International Organizations and
Stepped-up Cooperation with NGOs:
63. Member Nations are calling increasingly for enhancement of coordination within the UN system. The problems the UN system has to address are increasingly of a global and intersectoral nature (environment and sustainable development is the most obvious example), and thus require sustained coordination efforts. Coordination with other organizations is also assuming greater importance as a number of key regional intergovernmental organizations develop their programmes. International nongovernmental organizations are in many instances becoming active protagonists on the development scene. The Office for Inter-Agency Affairs (IAA) is the focal point for relations and policy coordination with such external bodies and needs to build up its capacity to maintain close contacts with a vast array of institutions and follow their activities.
64. Hitherto, responsibility for liaison and collaboration with the non-governmental sector has been spread among several units, including IAA and the Freedom from
Hunger Campaign/Action for Development unit (DDA). There is a need to establish a consolidated focal point within the Organization with responsibility for strengthening FAO's links with this sector, particularly at the policy level. FAO was a pioneer in the UN system in recognizing the importance of NGOs from the early sixties, when the Freedom from Hunger Campaign was established, and it has a wealth of experience on which to expand cooperative links with NGOs, both national and international, from the North and the South.
65. It is, therefore, proposed to merge the former IAA and DDA units into a consolidated Office for External Relations, and increase its staff strength to cope with an expanding volume of representational, substantive and information-gathering activities.
Areas of Reduced Resources
66. FAO Country and Regional Offices represent the two sides of the same coin in a coherent policy of decentralization. Member Nations strongly appreciate the essential contribution of FAO's Regional Offices to facilitate inter-country cooperation in FAO's fields of competence, particularly at a time when regional and sub-regional integration and collaboration are the order of the day. It is, therefore, with great reluctance that net reductions are proposed in the provisions for Regional Offices in order to counterbalance the above necessary expansion of FAORs. This will regrettably involve a reduced capacity from these offices to carry-out traditional activities of support to technical cooperation networks, servicing of regional meetings, assistance to regional projects and initiatives and other substantive outputs of regional or sub-regional interest.
Administrative and Support Areas:
67. FAO is able to benefit from the generous offer of the Host Government to cover the rent of those premises which the Organization is still forced to obtain from the commercial market; hence a proposed reduction under Chapter 6, Common Services. However, it is not possible to reduce the provision by the total amount of the rent, in view of the need to meet the cost of some necessary maintenance and renovation work, which has been delayed over several biennia in view of FAO's financial situation but which cannot be postponed any longer. The headquarters premises and some key installations thereof, have indeed reached the stage of potential breakdown or unacceptable standards, as well as the need to incur excessive maintenance costs if not renovated.
68. In addition, it has proved possible to eliminate a number of posts in the Administrative Services Division and the Publications Division, the latter related to measures resulting in a lower cost for publications.
Selected Technical and Economic Programmes:
69. For the sake of freeing resources to other areas, the proposais also include several deliberate actions to reduce existing resource levels. Prominent examples are: reduction in the provision for the Andr Mayer Fellowships; suspension of the Professional Training for Agricultural Development Programme, hitherto used to train at FAO headquarters a small number of officiais from Member Nations on short secondment periods in agricultural development; reduction in the provision for FAO's Investment Centre, stemming inter alia from the merger of the present three services of the Investment Support Programme (ISP) into two; reduction of the Regular Programme support to the FIAC (Fertilizer Industry Advisory Committee) which is proposed to be met from extra-budgetary contributions; etc.
70. Many technical and economic programmes are, therefore, subject to reduced resources. The full extent of shifts of resources and net changes at the levels of individual programmes, sub-programmes and programme elements, is apparent in the Annex. A few proposed adjustments to the programme structure, including modified titles, are also explained in the Annex in the respective narratives.
Adjustments to the Outline Proposais
71. In order to keep his proposais to the current level of the budget in real terms, the Director-General has revised his original proposais through a combination of two types of action. On the one hand, further reductions have been made for selected substantive programmes beyond those contemplated at the Outline stage. On the other hand, the requests for additional resources for targeted areas deserving strengthening have been scaled down by stretching implementation plans to the maximum extent possible.
72. In the former category, provisions for Regional Offices and some headquarters technical divisions had to be reduced further, directly affecting substantive output under several sub-programmes (e.g. less agricultural research review missions than initially contemplated, reduced assistance for plant protection infrastructures, fewer advisory missions on rural marketing, etc.).
73. In the latter category, the amount of net increase originally proposed for WAICENT has been reduced by US$ 650 000. The quality of WAICENT is not intended to suffer as a result; however, the implementation will be delayed somewhat. The strengthening of FAORs has also been reduced by US$ 200 000.
Changes in Resources
74. The following table gives consolidated statistical information on resource shifts and changes within programme elements under Chapter 2.
2.1.1 Natural Resources 19 992 1 156 (1 731) 19 417 14.4
2.1.2 Crops 32 135 3 542 (4 233) 31 444 24.2
2.1.3 Livestock 18 808 1 547 (2 162) 18 193 19.7
2.1.4 Research and Technology 18 650 5 154 (2 482) 21 322 40.9
2.1.5 Rural Development 32 450 1 164 (3 397) 30 217 14.1
2.1.6 Nutrition 17 633 1 591 (612) 18 612 12.5
2.1.7 Food & Agricultural Information 30 827 4 186 (3 437) 31 576 24.7
2.1.8 Food and Agricultural Policy 33 662 2 255 (3 179) 32 738 16.1
2.1.9 Programme Management 8 486 146 (574) 8 058 8.5
TOTAL AGRICULTURE 212643 20741 (21 807) 211 577 20.0
2.2.1 Fisheries Information 5 487 195 (239) 5 443 7.9
2.2.2 Fisheries Exploitation and 16 784 855 (917) 16 722 10.6
2.2.3 Fisheries Policy 7 946 712 (840) 7 818 19.5
2.2.9 Programme Management 6 182 23 (67) 6 138 1.5
TOTAL FISIIERIES 36 399 1785 (2 063) 36121 10.6
2.3.1 Forest Resources and Environment 6 720 1 717 (1 248) 7 189 44.1
2.3.2 Forest Products 4 245 1 946 (2 359) 3 832 101.4
2.3.3 Forest Investment and Institutions 8 529 1 572 (1 399) 8 702 34.8
2.3.9 Programme Management 5 766 35 (154) 5 647 3.3
TOTAL FORESTRY 25260 5270 (5160) 25370 41.3
GRAND TOTAL 274302 27 796 (29 030) 273 068 20.7
75. 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. With these caveats, the percentages give an indication of change and where it is occurring. The narratives in the Annex clearly indicate the nature of the programme changes.
76. The relatively "low" percentage change for programme management is the
normal reflection of inherent stability of supervisory functions. The abnormally high
percentage under Programme 2.3.2, Forest Products, reflects the complete reorganization of sub-programmes and programme elements proposed under this programme. The relatively high percentage under Programme 2.1.4 mostly reflects a shift of resources from Chapter 5. The substantial reductions in the Regional Offices also affect these percentages throughout.
V. PROGRAMME BUDGET IMPACT 77. The budgetary provisions at constant 1990-91 cost levels are as follows:
1 GENERAL POUCY AND
1.1 Governing Bodies
1.2 Policy Direction and Planning
TOTAL CHAPTER 1
2 TEtHNICAL AND
2.2 Fisheries 2.3 Forestry
TOTAL ClAPTER 2
3 DEVELOPMENT SUPPORT
3.1 Field Programme Planning and
3.4 FAO Representatives
3.9 Programme Management
TOTAL CHAPTER 3
4 TECHNICAL COOPERATION
5 SUPPORT SERVICES
5.1 Information and Documentation
5.9 Programme Management
TOTAL CHAPTER 5
6 COMMON SERVICES
15 427 2.7
11 876 2.1
10 327 1.8
212 643 37.4
23 640 4.2
55 174 9.7
22 122 3.9
55 080 9.7
2 452 0.4
79 654 14.0 17836 3.1
(408) 15,019 2.6
(456) 11 420 2.0
(10) 4 454 0.8
552 10 879 1.9
(322) 41 772 7.3
(1 066) 211 577 37.2
(278) 36 121 6.4
110 25370 4.5
(1 234) 273 068 48.1
(9) 6 774 1.2
(735) 22 905 4.0
2 700 57 874 10.2
198 1 148 0.2
2154 88701 15.6
4000 71767 12.6
(2 239) 19 883
(22) 2 430
GR AN TOTAL 58 80 100.0 568 80 100.0
1Adjusted for programme shifts proposed
(0.2) (0.9) (3.0) (125) 0.0
78. The priorities proposed by the Director-General and subsequently endorsed by the Programme and Finance Committees, are fully reflected in the detailed proposais, the financial impact of which is summarized in the above table.
79. 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 1990-91, the change proposed and the proposed 1992-93 level.
80. The column headed "Programme Change" in the table page, can be analysed by organizational unit as follows:
shown on the previous
CH 1 MP 2,1 MP 2.2 MP.2.3 CH 3 CH IS C 6 C 7 TOTAL:
AF (474) (2 650) (3 124)
AG (703) (703)
DD 2 154 2 154
ES 1575 1575
FI (198) (198)
FO 435 435
GI (409) 1 102 (2 245) (1 552)
LO 18 18
ODG 69 542 611
RAFR (772) (772)
RAPA (891) (3) (12) 50 (20) (876)
REUR 154 (237) (72) (155)
RLAC (1 077) (12) (33) 246 (876)
RNEA (996) (65) (43) 133 434 (537)
TCP 4000 4000
T OAL (322) (1066) (2M8) 110 2 154 400 (2362) (2236) 0 0.
Legend to column headinzs:
CH 1 Chapter 1 General Policy and Direction
MP 2.1 Major Programme Agriculture
MP 2.2 Major Programme Fisheries
MP 2.3 Major Programme Forestry
CH 3 Chapter 3 Development Support Programmes
CH 4 Chapter 4 Technical Cooperation Programme
CH 5 Chapter 5 Support Services
CH 6 Chapter 6 Common Services
CH 7 Chapter 7 Contingencies
Annex PaLee References
A9 A75 A89
A107 A113 A117
VI. COST INCREASES
81. The methodology for the calculation of cost increases to be provided for within the 1992-93 Programme of Work and Budget is the same as used for previous biennia and approved by the Finance Committee, Council and Conference.
82. In view of the concern expressed by some Members of the Joint Meeting of the Programme and Finance Committees in January 1991, the presentation of these cost increases is amplified in two ways:
the extent of detail provided in this Summary Programme of Work and
Budget document has been expanded; and
the format has been improved in order to present this subject in a clearer
and more easily understood manner.
83. The cost increase estimates are not built up on arbitrary speculations about possible inflation rates in Italy alone during the next biennium. Rather they take account, to the greatest extent possible, of known facts such as the actual payments for staff salaries and allowances; probable increases in General Service staff salaries after allowing for host country inflation rates and the position in the periodic cycle of ICSC salary surveys; the measurable impact of approved changes in the net and gross salary scales for Professional staff; changes in staff allowances as and when approved by the authoritative body concerned; known specific increases in items such as utilities and printing contracts; and assessment of the trends in factors affecting FAO's patterns of expenditure on a worldwide basis.
84. Accordingly, the changes in costs estimated in this document do not result from simplistic assumptions, nor in generalised approaches; rather they are the sum of the detailed calculations for each item of expenditure developed using a known methodology and under stated assumptions.
85. A description of the main concepts involved in the methodology precedes the details of the methodology and assumptions applied for each item of expenditure in the Analysis of Cost Increases.
Biennialization and Inflation
86. Cost increases, as in previous biennia, are analysed under the headings of Biennialization and Inflation.
87. Biennialization is simply the full biennial effect of cost increases which have occurred at some stage
during the current Biennialization
biennium (and therefore
only for part of the 24 CUrrent BSennlum Next Blenlum
month period) but which 125- INFLATION
will be incurred for the 120- BIENNIAUZATION
full 24 months in 1992- 1
93. The following graph 115illustrates the point. 110- .
88. The graph shows
the line of cost per 100month as it increases 0firstly in the current 00
biennium and then again
in the next biennium.
Inflation is shown in
1992-93 as the area filled with vertical lines. If there was no forecast inflation, then the cost level would be represented by a horizontal line. However, even without inflation in 1992-93, there would still be cost increases arising simply from the fact that the cost increases which were incurred during 1990-91 were in effect for less than twenty four months. This is represented in the above graph by comparison between the area of cost in 1990-91 to 1992-93. The dotted area in 1990-91 represents the value of the additional cost to be incurred in 1992-93 and is what is to be covered under Biennialization.
89. It is important to note that cost increases arising from biennialization are a reflection of what has actually happened in the current biennium and are not based on forecasts which are a matter of conjecture. The only element of forecast in the biennialization figure is the estimate of what will occur between now and the end of the current biennium.
90. Inflation, on the other hand, represents the cost impact of those increases which are expected to occur at different times and at various points in the next biennium (i.e. on or after 1 January 1992 and before 31 December 1993).
91. The inflation forecast is based upon assumptions about what changes in cost levels are likely to occur in the forthcoming biennium, not only in the host country but wherever FAO incurs expenditures against its Regular Programme resources. This includes the Regional Offices in Accra, Bangkok, Santiago and Cairo, Liaison Offices in Washington, New York and Geneva and FAO Representatives Offices ail over the developing world.
92. The lapse factor which is a theoretical allowance for savings arising from delays in posts which are vacant and uncovered by other means, remains unchanged at
3 percent, as approved by the Twenty-fifth Session of the Conference.
Impact of Exchange Rate-s
93. The budget is prepared in US dollars and therefore the relationship of the US dollar to the currencies in which expenditures are incurred can have an important impact upon the costs incurred in other currencies. Two quite different mechanisms exist; one for personnel services and another for non-staff costs.
- Personnel Services
94. The basic Professional salaries are unaffected by exchange rates as they are dollar-denominated. The currency impact on HQ-based personnel services occurs in two ways; firstly in its effect upon Professional staff post adjustment multipliers and secondly on the US dollar cost of General Service salary costs incurred in Lire. In both cases, the methodology is that the budget is developed and presented at the budget rate for the previous biennium (and therefore the currency effect is excluded). With the adoption of the budget rate at the Conference, the personnel services line of the budget is increased or decreased accordingly. An indication of the impact of varying rates of exchange upon the finally adopted 1992-93 budget is estimated as follows:
in US$ Millions
Lire 1 335 0
Lire 1 225 20.7
Lire 1 150 37.3
Lire 1 000 49.6
95. The impact of the exchange rates on other categories of cost is less apparent. In practice, shifts in exchange rate relationships tend to be gradually absorbed by their relative impact upon international prices and the Organization's continuing efforts to find the best price for goods and services. In other words, the international tendering process deals, to some extent, with the impact of such changes.
96. The impact upon expenditures in developing countries also tends to be self balancing. The benefits of a generally strong dollar (versus the local currency) offset the usually higher inflation rates such that international average rates tend to come into play.
97. The one area where the currency impact on non-staff cost cannot be ignored is for those categories of expenditure where the Organization has no practical alternative to procuring the required good and services in a single country, usually the host country. The most significant example of this is under Chapter 6, Common Services, which consists entirely of non-staff costs, the vast majority of which relates to goods and services which must be sourced locally (e.g. utilities, communications, premises, etc.). In these cases, the impact of a change in exchange rate results in cost increases when translated into terms of US dollars. For 1992-93, the significant fall in the US dollar in relation to the Italan Lira, has been an influencing factor in biennialization costs.
Analysis of Cost Increases
98. The table below shows cost increases summarized by major component and
analyzed between those amounts attributable to the biennialization of cost increases incurred in 1990-91 and those due to inflation in 1992-93. The commentary below describes the cause of each increase and the assumptions made in forecasting the inflationary increase in 1992-93.
1990-91 Bienniali- Inflation Total Cost
Programme zation of arising Increase-s lin
Bas costs arising during 1992-9
in 1990-91 1992-93*
a) Basic Professional Salaries 90 173 15 068 0 15 068
b) Post Adjustment 47 899 (4 335) 9 802 5 467
c) General Service Salaries 98 435 10 714 11 072 21 786
d) Pension Fund Contributions 42 177 5 687 2 104 7 791
e) Social Security 10046 1161 1038 2199
) Dependency Allowances 5 243 (69) 277 208
g) Education Grant 10 356 3 942 1 102 5 044
l) Travel on Appointment,
Repatriation, etc. 12 777 0 1 660 1 660
i) Recruitment and Separation
Costs 14163 2010 1796 3806
j) General Service Separation
Payments Scheme 8 045 1 521 437 1 958
SERVICES 339314 35699 29288 64987
Goods and Services
k) Other Human Resources 128 626 2 270 9 280 11 550
1) Travel on Official Business 27 588 0 2 533 2 533
m) General Operating Expenses 50 470 1 354 4 575 5 929
n) Furniture, Equipment and
Vehicles 22802 0 2280 2280
TOTAL GOODS AND 229 486 3624 18 668 22 292
GRAND TOTAL 568 800 39323 47956 87279
(a) Basic Professional Salaries
Biennialization: US$ 15 068 000 increase This increase is the result of two factors:
incorporation of 17 multiplier points in the base scale:
12 points July 1990
5 points March 1991
estimated to have increased salaries by approximately US$ 14 million but
offset by an equal reduction under post adjustment below; and
an additional US$ 796 000 for the net effect of changes in grades approved
as part of the Programme of Work and Budget 1990-91.
Inflation: No provision
No change in base salary is allowed for in the cost increase estimate. It is expected that several multiplier points will be consolidated into the base on a
"no loss/no gain" basis.
(b) Post Adjustment
Biennialization: US$ 4 335 000 decrease
The major favourable item is the consolidation of 17 multiplier points in base salary on a "no loss/no gain" basis a net effect of US$ 14 million as described
This is offset by the impact of the biennialization of the post adjustment increase through to the end of 1991 estimated at a US$ 10 million increase in costs for 1992-93. It is noted that a combination of high inflation rates and a relatively
weak dollar for non-Rome based locations has contributed to this figure.
The data upon which the estimate is based consist of actual costs through to 31 December 1990 plus one increase in class (i.e. 5 percent of base salary)
effective 1 May 1991.
Inflation: US$ 9 802 000 increase
The movements in the post adjustment scale are forecast as:
a 5.0 points March 1992
5.0 points January 1993
5.0 points November 1993
(c) General Service Salaries
Biennialization: US$ 10 714 000 increase
The 1990-91 budget allowed for a net 6 percent increase as a result of the ICSC General Service Salary Survey whereas the award was for a net 10.04 percent.
The biennialized effect of the 4.04 percent difference is US$ 3.1 million.
The cost of living increases granted and expected to be granted to Rome-based
staff through to the end of 1991 are as follows:
5.94% July 1990
6.5% January 1991
5.5% December 1991 (forecast)
The biennialized effect of both the Rome and the non-Rome based increases are
calculated at US$ 7.5 million.
The impact of changes in grade account for a further US$ 111 000.
Inflation: US$ 11 072 000 increase
The implementation of the biennial scale for within-grade step increases (WIGSIs) results in estimated cost increases of 0.75 percent in July 1992 and in
Inflation is provided for through a 6.5 percent increase in December 1992 and
in December 1993.
The overall provision for inflation reflects the significant increase in General Service costs in the field where the fall in the value of the US dollar has meant that the usual protection from local inflation afforded by accounting in dollars has not been as effective. Individual calculations have been made for each Regional Office, taking into account local inflation rates offset by the trend in the value of the relevant local currency. A weighted average of these results has
been used to identify the inflation for FAO Representations.
(d) Pension Fund Contributions
Biennialization: US$ 5 687 000 increase
This is caused principally by the increase in Pension Fund contributions from 15.0 percent to 15.8 percent effective 1 January 1990 but not included in the 1990-91 budget. In addition, pensionable remuneration increases for Professionals reflect the increases in base salary plus post adjustment in
New York at P-4 step VI.
For General Service, the contribution is calculated on gross salary and therefore
also reflects the biennialization increases mentioned above.
Inflation: US$ 2 104 000 increase
The impact on the Organization's contribution towards pension for Professional
staff is based on the assumption of the following increases:
5% September 1992; and
5% September 1993.
For General Service staff, the increase directly reflects the inflationary increases
(e) Social Security
Biennialization: US$ 1 161 000 increase
The amount consists of higher than expected costs associated with the After Service Medical Coverage Scheme along with associated administrative costs
charged by the insurer.
Inflation: US$1 038 000 increase
A provision for a 10 percent increase in Medical costs has been provided.
(f) Dependency Allowances
Biennialization: US$ 69 000 decrease
While no decrease is evident from changes in the rules of entitlement, a decrease is apparent in actual costs at the end of 1990 and has been forecast through to the end of 1991, thus resulting in a reduction in costs under the biennialization heading. This is attributable to a change in the mix of
Inflation: US$ 277 000 increase
This reflects the fact that the General Service content of dependency allowances is calculated as 3 percent of the mid-point of the salary scale and therefore
reflects the increases forecast for General Service staff.
(g) Education Grant
Biennialization: US$ 3 942 000 increase
This item was seriously under-budgeted for in the current biennium such that the average cost per man month in December 1989 was greater than the average
amount per man month budgeted for 1990-91. This is attributed to a delay in recording the impact of the 50 percent increase in the maximum reimbursable amount which was awarded by the General Assembly in 1988 but did not flow into the accounts until late 1989; well after the 1990-91 cost increase calculation
had been completed.
The amount also allows for the decision by the General Assembly in December 1990 that the ceiling for reimbursement be raised for certain currency areas including Italy and the UK. Taking into account the mix of education grant
claims, this results in an increase of 15.5 percent.
Inflation: US$ 1 102 000 increase
An inflationary allowance of 5 percent annually for 1992 and 1993.
(h) Travel on Appointment, Repatriation, etc.
Biennialization: US$ no change
No biennialization of these costs has been provided, as the current indications
are that the provision is sufficient.
Inflation: US$ 1660 000 increase
A 6 percent increase per annum has been provided for in 1992-93 in line with
CCAQ (FB) recommendations for travel costs.
(i) Recruitment and Separation Costs
Biennialization: US$ 2 010 000 increase
The increase is attributable to the impact of the outcome of the ICSC Comprehensive Review of the Conditions of Service for Professional and Higher Categories where Installation Grant and Assignment Allowance were replaced by Hardship and Mobility Allowances and Assignment Grant. Because of the high number of FAO staff members with a career spanning various duty stations,
this has resulted in a greater cost increase than had been envisaged.
Inflation: US$1 796 000 increase
In 1992-93, provisions for increases in Appointment and Separation Costs (6 percent), Hardship and Mobility Allowances (8 percent) and for rental
Subsidy and other entitlements (10 percent) have been allowed.
(j) General Service Separation Payments
Biennialization: US$ 1521 000 increase
This amount consists of a combination of contributions to the Separation Payments Fund (which are 8 percent salaries) and 33 percent of actual claims.
Biennialization reflects the impact of salary increass on the overall cost of the
Inflation: US$ 437 000 increase
The inflationary increase matches the Rome content of the General Service
salary increases shown above.
It should be noted that the "Good and Services" categories have been reclassified to align with the grouping implemented with FINSYS. As this is the first time the new categories have been used, a brief description is provided with each one.
(k) Other Human Resources
This consists of temporary assistance, consultants, special service agreements, reimbursable loan agreements and contractual services under both the divisional
allocations in the Regular Programme and under TCP.
Biennialization: US$ 2 270 000 increase
Biennialization costs have been identified in two areas; temporary assistance which attracts the same increases in cost as net base General Service salary costs and staff interpreters costs which attract Professional staff cost increases. It also applies to the remaining items but as the Director-General undertook in the 1990-91 Programme of Work and Budget to absorb the cost increases on consultants and contractual services, the related biennialization hasnot been
Inflation: US$ 9 280 000 increase
The average rate of inflationary cost increases is just over 7 percent for the entire biennium. This is an average derived from differing rates for the various
elements as follows:
temporary assistance: 4.6 percent on the revised base in line with HQ average General Service salary inflation over the biennium;
consultants: FAO consultancy rates have increased by an
average of 7 percent and are forecast to do the same as at 1 January 1992;
* contractual services:
* printing, translation, etc:
* inter-agency shared costs:
* experts for TCP:
An average inflation rate of 6 percent for the biennium has been allowed on the rationale that the competitive bidding process will keep the overall level of increases slightly lower than the consultant rate;
Based on recent experience, the cost increases on these types of services are higher (in particularly for translation work) and 10 percent has been allowed for over the biennium;
Being substantially staff based, the best measure of inflation is the average of 7.09 percent on the revised base forecast for Professional staff.
As these costs are based upon the cost incurred by the agencies themselves, a biennial average of 15 percent bas been calculated but this may be adjusted once the actual figures are available;
As TCP experts come from all over the globe (including national experts), a precise forecast is difficult, but based on the fact that the majority of the expenditure is US dollar based and that the scale for consultants is the most common method of determining remuneration, the average 7 percent increase for the biennium bas been allowed.
Travel on Official Business
This is very similar to the previous classification of the same name. The only difference is that the travel associated with TCP has been included for greater accuracy.
Biennialization: US$ no change Given that the Director-General undertook to absorb travel cost increases in 1990-91, coverage for the effect on 1992-93 is not sought. Inflation: US$ 2 533 000 Inflation bas been provided for in line with the CCAQ recommendation of an average increase of 6 percent.
(m) General Operating Expenses
From a definitional point of view, this item covers the same items as the previous heading of the same name. It has been refined by identifying those items within the Publications Pool, the Computer Services Pool, etc. that belong to this classification.
Biennialization: US$ 1354 000
The budget has been analyzed in terms of costs which must be incurred in Lire and what may be incurred in US dollars or, where economics dictate, in other currencies. The Lire portion is important firstly because the rate of inflation has tended to be higher and secondly because of the serious decline in the number
of lire that can be purchased for the dollar.
The Lire content totals close to US$ 20 million for the biennium and assuming a very optimistic average exchange rate of Lire 1 250 throughout 1992-93, results
in a biennialization figure of US$ 1354 000.
Inflation: US$ 4 575 000
The level of inflation for the Italian content has been determined from the
ISTAT index which shows an average increase of 6.97 percent per annum.
For the balance of the expenditure, it has been assumed that the benefits of international tendering will ameliorate cost increases and therefore an average
figure of 8 percent on the biennium has been provided for.
(n) Furniture, Equipment and Vehicles
The category is now more limited in that supplies have been more appropriately
included under General Operating Expenses above.
Inflation: US$ 2 208 000
Inflationary levels on this item have historically been higher because of the tendency of manufacturers to extend the specification of basic products. As in
1990-91 an average figure of 10 percent has been allowed for 1992-93.
99. The present calculations are therefore provisional and the best estimate which could be worked out at this moment on the basis of the information available. It should also be noted that, at this stage, the programme proposals submitted in the Summary Programme of Work and Budget need to be worked out in greater detail identifying the precise input by cost category. Pending the finalization of this information, cost increases have been computed on the existing 1990-91 programme base.
100. As always, the economic situation considerably adds to the element of uncertainty regarding a forecast which has to cover cost developments for the next three
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.
101. The following comparison is in accordance with the methodology recommended by the Finance Committee, used in earlier documents, and approved by the Conference.
[re stated iii US$ '000 at Lire 1 335 = UIS$ I
Increase in US$ '000
Increase in Percent
(1) Programme of Work and Budget 1990-91
(2) Cost Increases 87 207 15.3
(3) 1992-93 Cost of the 1990-91 Budget 656 007
(4) Real Programme Increase 0
(5) Cost Increase consequent on (4) 0
(6) Pro posed Programme of Work and Budget
VI. POSTS AND OTIIER MEANS OF ACTION
102. The Director-General has followed a policy which is aimed at raising the Professional level throughout the Organization by identifying the maximum number of savings in General Service posts and replacing them with Professional posts. This has proved possible in part because of the increasing use of computers to improve productivity and reduce the labour-intensive tasks most often undertaken by General Service staff, but also as a consequence of a thorough review of ail vacant posts which required re-justification before approving their continued inclusion within the Programme of Work and Budget.
103. The serious degree of overlapping in costs between the upper levels of General Service and the lower levels of Professional posts forces the Organization to consider where better value for money could be obtained by hiring young qualified Professionals. Therefore, where possible, vacant high-level General Service posts have been abolished and replaced with re-defined positions that fall within the Professional category with the requisite qualifications.
104. For 1992-93, the Director-General proposes a net reduction of two posts, but this reflects a net decrease of 18 General Service posts offset by an net increase of 16 Professional posts.
105. The changes in posts are listed below:
.Unit New Posts Abolished Posts
ODG D-2 Special Assistant to
AUD P-4 Internal Auditor G-5 Audit Clerk
G-5 Audit Clerk
IAA P-5 Senior Liaison Officer
P-4 Liaison Officer P-3 Liaison Officer
Unit Neew Posts Abolished Posts
PBE P-4 Programme and Budget G-6 Budget Assistant
Officer G-4 Clerk-Stenographer
ODG (Environment and Sustainable Development)
ADG ADG/Special Adviser to
AGP P-5 Senior Officer (Secretary, P-5 Agricultural Officer
-IPPC) P-4 Agricultural Officer
P-3 Agro-Forestry Officer G-3 Driver/Mechanic
P-3 Pesticide Information G-2 Guard/Receptionist
P-3 Agricultural Officer
AGR P-5 Senior Officer
P-3 Environment Officer
G-3 Registry Clerk
ESC P-4 Crop Assessment
ESN P-5 Senior Officer
ESP P-4 Economist
P-4 Economist P-4 Economist
ESS P-3 Statistician G-5 Statistical Clerk
FI P-4 Fishery Statistician
FO P-4 Forestry Sector Analysis
P-4 Forestry Education and Extension
P-4 Institutional Forestry
P-4 Tropical Forest
UntNwPot Abolished Posts
DDC P-4 Rural Sociologist D-1 Service Chief
P-4 Agricultural Officer G-5 Secretary
G-3 Bilingual Typist G-3 Bilingual Typist G-3 Bilingual Typist G-3 Bilingual Typist G-3 Bilingual Typist G-3 Bilingual Typist
DDF P-3 Liaison Officer (APOs) G-6 Administrative Assistant
P-3 Programme Officer
AFC D-1 Assistant Director G-6 Computer Operator/Tape
P-3 Network Management Librarian
Officer G-5 Secretary
P-2 Network Management G-4 Control Clerk
Officer G-2 Data Entry Operator
P-2 Network Management
AFD P-3 Programm Assistant G-7 Secretary
AFS G-4 Accounting Clerk G-4 Assistant Security
G-3 Cable Clerk Supervisor
G-3 Stenographer G-4 Assistant Security
G-3 Transport Clerk Supervisor
G-4 Carpenter Foreman G-3 Senior Guard G-3 Senior Guard G-2 Guard
G-2 Blacksmith G-2 Blacksmith G-1 Specialized Labourer G-1 Laundry Worker G-1 Lead Porter
GIL P-2 Librarian G-7 Library Assistant
GIP P-3 Translator
P-3 Translator RAFR P-5 Special Advisor (Sahelian
P-5 Agricultural Services Officer
P-4 Agricultural Officer (Education and Extension)
Unit New Posts Abolished Posts
RAPA D-1 Small Farmer
Communication Officer P-4 Animal Health Officer P-4 Credit and Cooperatives Officer
P-4 Development Planning Officer
G-7 Technical Assistant (Statistics)
G-7 Programme/Administrative Assistant
REUR P-4 Agricultural Policy D-1 Economist
P-3 Environment and P-2 Administrative Officer
Sustainable Agriculture G-4 Clerk-Stenographer
JEUR G-7 Research Assistant
RLAC P-5 Science & Technology
P-4 Economist P-4 Information Officer
JLAC P-4 Economist
RNEA P-5 Statistician
P-4 Rural Development Officer G-3 Clerk-Typist
The above changes can be summarized as follows:
Professional General Service
106. Details of the proposed breakdown of total resources by budget component and therefore of the means of action will be provided in the full Programme of Work and Budget which also includes specific details of both publications and meetings.
107. Preliminary analysis shows reductions in non-staff human resources (i.e. consultants and contracts) and in publications. The former is due to the Director-
General's concern that the ratio of consultants to staff has become higher than is desirable given the need for effective oversight, and the latter partly because of a reduction in the utilization of this means of action but also because of the beneficial impact of computerization and technology in the Publications Division. An increase in personnel costs arising from a "richer" mix of Professional versus General Service will be the major offsetting factor.
FURTHER DETAILS OF PROGRAMME PROPOSALS
AND RESOURCE ALLOCATIONS BY MAJOR PROGRAMME
PROGRAMME AND SUB-PROGRAMME
(Ail estimates at Lit. 1 335 = US$ 1 and at 1990-91 costs in US$'000)
1. This Annex provides summary information on proposed programme activities and
corresponding resource allocations. The full Programme of Work and Budget 1992-93 will, as in the past, include detailed presentations of these activities.
2. Based on FAO's computerized workplanning and monitoring system (PLANSYS),
in operation in the Headquarters' Technical Departments and Regional Offices, net changes which have been effected down to programme element level are indicated in tabular form. A table showing such changes is included for each technical subprogramme under Chapter 2: Technical and Economic Programmes. Deleted, as well as newly-introduced programme elements, will also be apparent in these tables.
3. It is in the nature of an evolving programme that a number of changes need to be introduced in the programme elements shown in the last Programme of Work and Budget document. This ranges from the merger of some hitherto distinct elements to, conversely, the split of large elements into component parts. Titles are revised, as necessary, to reflect the changing scope of proposed activities. A strict comparison between those elements which were "active" two years ago and those proposed for implementation in 1992-93 is, therefore, not always possible. However, as necessary, base allocations have been traced as accurately as possible to identify the magnitude of resource changes.
4. The narratives in this Annex deliberately focus on programme changes and new
emphases. Activities of Regional Offices are also indicated in succinct fashion. The detailed plan of action for each programme, together with forecasts of extra-budgetary resources, will as usual be given in the full Programme of Work and Budget. The medium-term outlook and objectives will be provided in the Medium-term Plan, to be issued at the same time as the Programme of Work and Budget.
5. The programme proposals, particularly within sub-programmes, are still
provisional, as the Director-General wishes to take into account the recommendations of bodies such as the Committees on Fisheries and on Agriculture, as well as such views as the Programme and Finance Committees and the Council may wish to offer on the Summary Programme of Work and Budget.
6. It should also be noted that the figures in the tables below are at 1990-91 costs, exclusive of the cost increases expected in 1992-93, which in the Summary Budget are presented only in total (under Section VI). The relevant cost provisions will be added in the full Programme of Work and Budget 1992-93.
CHAPTER 1: GENERAL POLICY AND DIRECTION
7. Proposed allocations and changes in (US$' 000) at the major programme level
are as follows:
Major Programmes 1990-91 Programme .1992-93
.!Budget Change Budget Budget Change Bu g-t
1.1 Governing Bodies 15 427 (408) 15 019
1.2 Policy, Direction and Planning 11 876 (456) 11 420
1.3 Legal 4 464 (10) 4 454
1.4 Liaison 10 327 552 10 879
TOTAL 42 094 (322) 41 772
MAIOR PROGRAMME 1.1: GOVERNING BODIES
8. Proposed allocations and changes in (US$ '000) at the programme level are as
Programmes 1990-91 Programme 1992-93
Budget Change Budget
1.1.1 Conference and Council 10 721 (368) 10 353
1.1.2 Conference Services 4 706 (40) 4 666
TOTAL 15427 (0) 15 019
Programme 1.1.1: Conference and Council
9. The programme covers direct expenditures incurred in relation to sessions of
FAO Governing Bodies (Conference, Council, Council Committees, Regional Conferences): documentation, interpretation services, travel of Government Representatives when provided for in the Financial Regulations, etc.
10. The continued search for economy measures makes it possible to effect a net reduction of US$ 368 000.
Programme 1.1.2: Conference Services
il. A small reduction is effected under this programme, which covers primarily the responsibilities of the GIC Division in respect of the organization of FAO meetings.
MAJOR PROGRAMME 1.2: POLICY, DIRECTION AND PLANNING
12. Proposed allocations and changes in (US$ '000) at the programme level are as follows:
Programmes 1990-91 Programme 1992-93
Budget Change Budget
1.2.1 Director-General's Office 4 509 (455) 4 054
1.2.2 Programme Planning, Budgeting and 4 944 (1) 4 943
1.2.3 Audit 2423 0 2423
TOTAL il1876 (456) il1420
13. The reduction in the direct Office of the Director-General reflects the proposed abolition of a D-2 post of Special Assistant and of two General Service posts. This is a deliberate sacrifice in order to counterbalance the needed strengthening of overall coordination work of FAO's environment and sustainable development programmes (cf. Sub-programme 22.214.171.124).
14. In the Office of Programme, Budget and Evaluation (PBE), it is necessary to strengthen the Office's analytical capability for improved budgetary formulation and performance monitoring through a proposed new P-4 post, to be offset by the abolition of two General Service posts. The latter is made possible by progress in computerization and Office automation; hence no variation in the overall provision. There is no change in the Evaluation Service, which has been strengthened in past biennia.
15. In the audit area, both financial and management audits will continue, with increased emphasis on computerized techniques. No change is proposed in the budgetary provision.
MAJOR PROGRAMME 1.3; LEGAL
16. Proposed allocations and changes (in US$ '000) at the major programme level are as follows:
1.3.0 Legal 4 464 (10) 4 454
TOTAL 4464 (10) 4454
17. The Legal Office consists of the immediate Office of the Legal Counsel, the General Legal Affairs Service, the Development Law Service and a Documentation and Research Unit.
18. No changes are proposed to the structure or staffing of the Legal Office. Within available resources, further progress will be made to computerize documentation and information dissemination activities.
19. The Development Law Service is expected to continue and, if possible, expand its activities of direct assistance to member countries in development and natural resources law. Priority will continue to be placed on legal assistance in the areas of fisheries, pesticides (follow-up to the International Code of Conduct on the Distribution and Use of Pesticides) and land.
MAJOR PROGRAMME 1.4: LIAISON
20. Proposed allocations and changes (in US$ '000) at the programme level are as follows:
. e . : :i.9 0 r
Prgrmms1990-91 Programme 1992-935*
Budget Change Budget
1.4.1 External Relations and Coordination 4 448 535 4 983
1.4.2 Liaison and Protocol 5 879 17 5 896
TOTAL: 10 327 10 .10 879
21. This major programme covers offices at Headquarters and Liaison Offices in Washington DC (US$ 2 201000), New York (US$ 1701000) and Geneva (US$ 771 000), responsible for a broad range of external relations activities.
22. The former Programme 1.4.1, Inter-agency Affairs, is proposed to be retitled "External Relations and Coordination", with two components. Sub-programme 126.96.36.199 will cover FAO's relations with the organizations and programmes in the United Nations system and with other intergovernmental organizations, while Sub-programme 188.8.131.52, Non-governmental Organizations, will incorporate resources already in Programme 1.4.1 devoted to relations with international non-governmental organizations, and resources transferred from Programme 3.3.1, formerly entitled "Freedom-from-Hunger Campaign/Action-for-Development".
23. The net programme increase under Sub-programme 184.108.40.206 is necessary to permit further enhancement of coordination and joint work with other organizations of the UN system and with major intergovernmental organizations outside the system. Similarly, the provision under Sub-programme 220.127.116.11 will allow development of closer relations with a range of non-governmental organizations and promotion of collaboration with them in priority areas of FAO's programmes. The overall net increase reflects the strengthening of staff in the consolidated office.
24. Provisions (in US$ '000) for individual sub-programmes are shown in the following table:
Sub-Programmes 1990-91 Programme 1992-93
Budget Change Budget:
18.104.22.168 United Nations and 2 959 200 3 159
22.214.171.124 Non-governmental Organizations 1 489 335 1 824
TOTAL 4448 535 4983
25. In the protocol area, the established range of activities will be continued.
CHAPTER 2: TECHNICAL AND ECONOMICPROGRAMMES
26. Proposed allocations and changes (in US$ '000) at the major programme level are as follows:
Maj or Programmes 19-9 1::* Programm :::992-93
.Budget Change Budget
2.1 Agriculture 212 643 (1 066) 211 577
2.2 Fisheries 36 399 (278) 36 121
2.3 Forestry 25 260 110 25 370
TOAL274 302 (1 234) 273 06
MAJOR PROGRAMME 2.1: AGRICULTURE
27. Proposed allocations and changes (in US$ '000) at the programme level are as follows:
. . ii! i i i ,, i ii 'i i ;, i i : i i,! .
Programmes 1990-91 Programme, 1992-93
Budget Change. Budget
2.1.1 Natural Resources 19 992 (575) 19 417
2.1.2 Crops 32 135 (691) 31 444
2.1.3 Livestock 18 808 (615) 18 193
2.1.4 Research and Technology 18 650 2 672 21 322
2.1.5 Rural Development 32 450 (2 233) 30 217
2.1.6 Nutrition 17 633 979 18 612
2.1.7 Food and Agricultural Information and 30 827 749 31 576
2.1.8 Food and Agricultural Policy 33 662 (924) 32 738
2.1.9 Programme Management 8 486 (428) 8 058
TOTAL 212 643 %6) 066) 211 577
Programme 2.1.1: Natural Resources
28. The continuing degradation of the resource base for agricultural development, the high agricultural input costs and the persistent food deficits in some areas are three major areas of concern for the Natural Resources Programme. Therefore, the programme will continue to provide assistance to Member Nations towards rational and more efficient use of land, water and other inputs to meet future demands on a degradation-free and sustainable basis.
29. A major new initiative is the inclusion of a new element under Sub-programme 126.96.36.199 to provide for support to an FAO-led International Action Programme on Water and Sustainable Agricultural Production. This Action Programme is one of the five inter-agency components of the UN system-wide follow-up to the Mar del Plata Action Plan. The cost of the FAO share of this initiative (US$ 400 000) is mainly met by cancellation of and reduction in other activities under the same sub-programme. As a consequence, the net increase to Sub-programme 188.8.131.52 is only US$ 38 000. The allocations to other substantive sub-programmes have had to be reduced.
30. Provisions (in US$ '000) for individual following table:
sub-programmes are shown in the
Sub-Programmes 1990-91 Programme 1992-93
Budget Change Budget
184.108.40.206 Assessment and Planning 2 459 (19) 2 440
220.127.116.11 Farming Systems Development 2 016 (139) 1 877
18.104.22.168 Soil Management and Fertilizers 2 761 (139) 2 622
22.214.171.124 Water Development and 2 264 (120) 2 144
126.96.36.199 Conservation and Reclamation 1 725 (17) 1 708
188.8.131.52 Sustaining Resource Potentials 610 38 648
184.108.40.206 Regional Offices 3 230 (211) 3 019
220.127.116.11 Field Programme Support 3 544 (61) 3 483
18.104.22.168 Programme Management 1 383 93 1 476
TOTAL 19 992 (575) 19 417
31. Other changes proposed under various sub-programmes are highlighted below:
increased emphasis on the prevention of sea-water intrusion, assessment of
small basin water resources for irrigation development in Africa and land
use planning activities, as well as the incorporation of degradation
monitoring work into agro-ecological zonation assessments;
substantial reduction of element 03, Support to Statutory and Advisory
Bodies, of Sub-programme 22.214.171.124, Soil Management and Fertilizers. As a consequence, the Twelfth Session of the FAO Commission on Fertilizers, which should have been held in 1992, is to be postponed to the following biennium (1994), and support to the FAO/FIAC meetings will be
enhanced activities directed at reclamation of salt-affected soils, drainage
and salinity control;
promotion of sustainable soils policies as requested by the Preparatory Committee (PREPCOM) of the United Nations Conference on
Environment and Development; (new programme element)
reductions in the areas of policy advice on sustainability issues and demonstration programmes on sustainable farming practices. Work on the impact of climate change will be carried out under other programmes
Sub-programme 126.96.36.199: Assessment and Planning
32. Changes at programme element level:
Programme Bements 1990-91 Progam 929
Budget Change Budget
01 Land Resources Inventories and 335 (30) 305
02 Land Use Planning 231 160 391
03 Agro-Ecological Zones Studies and 727 (146) 581
04 FAO Geographic Information System 570 (8) 562
05 Assessment of Water Resources for 596 5 601
TOTAL 9) 2440
33. One central activity remains improved land use planning. The guidelines produced in the 1990-91 biennium will be field tested, validated by case studies and promoted by expert consultations and publications. National balance sheets matching demands and land potentials will be prepared to support national planning efforts. A
database on land use systems and crop requirements will be built up to assist in providing information on land resources potentials and options, including sub-regional assessments. Within element 03, the dynamic aspects of land resources degradation and amelioration will be monitored by agro-ecological zones as requested by the Preparatory Committee of UNCED.
34. Emphasis is gradually changing from global assessments towards effective applications of land resources information to the formulation and implementation of national land policies. This is consistent with the fact that more countries are now able to carry out their own quantitative inventories and assessments, but need to apply national databases to planning desirable changes in land use for sustainable agricultural development. This should include use of geographic information systems, the provision for which is being maintained.
35. Planning of small-basin water resources directed at increasing small-scale irrigated areas, and sea-water intrusion problems will receive increased attention, in the light of the negative impact of sea-water intrusion in coastal aquifers in the Mediterranean basin and southwest Asia. Specific country situations will be evaluated in preparation for an international workshop and for the preparation of action plans susceptible to attract external assistance.
Sub-programme 188.8.131.52: Farming Systems Development
36. Changes at programme element level:
Programme Elements 1990-91 Programme 1992-93
Budget Change Budget,
01 Analysis and Development of Sustainable 719 144 863
02 Farm Management Inputs to Programme 912 (217) 695
and Policy Analysis
03 Management of Commercial and 143 0 143
04 Farm Data Systems 242 (66) 176
TOTAL 2 016 (139) 1877
37. The contribution of micro-economic analysis to technical investigations is the mainstay of farming systems development work, in order to cast light on the dynamic relationship between the farm household and its environment. This supports a wide range of specialized technical and socio-economic programmes. Resources devoted to the analysis and development of sustainable farming systems have been substantially increased. Farm management inputs to programme and policy analysis remain an
important area. It is intended to focus on the use of micro-level data analysis for macropolicy formulation and for the assessment of the impact of agricultural policies on different social groups and farming systems.
Sub-programme 184.108.40.206: Soil Management and Fertilizers
38. Changes at programme element level:
Programme Elements 1990-91 Programme 1992-93
Budget Change Budget
01 Efficient Fertilizer Use and Integrated 1 250 (83) 1 167
Plant Nutrition Systems (IPNS)
02 Fertilizer Supply/Economics/Policies 551 1 552
03 Support to Statutory and Advisory Bodies 463 (119) 344
04 Soil Management and Improvement of 497 (83) 414
05 Sustainable Development of Soil 0 145 145
TOTAL 2761(13 ) 2622
39. The main thrust of the sub-programme is to counteract the loss of soit fertility that is currently taking place in many developing countries. As highlighted by the Commission on Fertilizers, such loss represents an immediate threat to food production and could lead to catastrophic consequences in the longer term, as it is less "visible" than other forms of environmental degradation.
40. In order to reverse current plant nutrient "mining", a new element is introduced with an initial allocation of US$ 145 000 to support national action towards sustainable soil productivity. Activities will cover keeping national accounts for gains and losses of plant nutrients, identification of critical areas, drawing up national targets and strategies and formulation of fertilizer options and policies. Principles will be developed for sound use of mineral fertilizers leading to a "Covenant of Good Fertilizer Use Practices".
41. In parallel with this new initiative, the application of integrated plant nutrition systems and soil fertility improvement methods will be promoted further at the national level. Location-specific systems will be developed through national sub-contracts and exchanges of experiences ensured through regional networks. Expert consultations will be held on successful application of Integrated Plant Nutrition (IPN) systems.
42. The monitoring of the world fertilizer situation and the preparation of forecasts for supply and demand balance remain ongoing activities. Fertilizer strategies will
continue to be developed for alleviation of constraints to fertilizer use at farm level, with emphasis on the economic factors that affect farmers' decisions.
43. Under programme element 03, Support to Statutory Bodies, two Fertilizer Programme consultations are foreseen. However, the Twelfth Session of the FAO Commission on Fertilizers, which should have taken place in April 1992, will be postponed to 1994. Support to the FAO/Fertilizer Industry Advisory Committee (FIAC) of Experts with its four subsidiary bodies, had to be reduced.
44. Under element 04, Soil Management and Improvement of Shifting Cultivation, priority will be given to the deteriorating ecosystems of the semi-arid tropical region by promoting low- or medium-input, cost-effective tillage methods and other cultural practices. Despite the reduced level of resources, the network for tillage and organic matter management in semi-arid parts of Latin America and Africa will be supported and the validation, in pilot areas, of methods of prevention of surface sealing and crusting will be pursued. Cooperation with national institutions on the enhancement of soil productivity in the humid tropics will include the combined use of acid-tolerant crops, maximum residue return, no-tillage and judicious use of fertilizers.
Sub-programme 220.127.116.11: Water Development and Management
45. Changes at programme element level:
.Programme Eleiments 1990-91 Programme 1992-93
Budget Change Budget
01 Irrigation Development, Rehabilitation 607 (17) 590
02 Irrigation Management/Performance: 885 (6) 879
Technologies and Research
03 Training in and Inventory of Irrigation 772 (97) 675
Development Techniques and
TOTAL 2 264,,. (120) 2144
46. The reduction of US$ 120 000 in this sub-programme reflects the resource shift to Sub-programme 18.104.22.168 in respect of the inter-agency initiative mentioned above. Overall, FAO activities in water development and management need to respond to a slow-down of irrigation expansion and growing water scarcity in many arid and semi-arid countries.
47. Assistance to Member Governments in irrigation will focus on three key aspects, namely modernization, improved management and training with technology transfer. Thus, new technologies will be investigated in cooperation with the ICID (International Commission for Irrigation and Drainage) and disseminated through publications. The
performance of irrigated crop production and use of water at farm level will require corrective actions or investments for which diagnostic techniques, including socioeonomic aspects, will be developed and tested in field projects. Remote sensing techniques will also be used for evaluation and monitoring purposes. Improved management of irrigation schemes will be supported through guidelines and computer programmes on irrigation scheduling, water distribution, operation and maintenance. Policy and socio-economic issues, such as water rates, farmers' participation, institutional factors and others, will continue to receive attention.
48. Under the third element, based on the now-established inventory of proven operational techniques, methods and practices, activities will shift to effective applications and technology transfer and training.
Sub-programme 22.214.171.124: Conservation and Reclamation
49. Changes at programme element level:
Programme Elemnents 1991Programme'1992-93
Budget Change Budget
01 Soil Conservation and Watershed 968 (6) 962
02 Reclamation of Salt Affected Soils: 336 73 409
Drainage and Salinity Control
03 Water Quality for Agriculture 197 (22) 175
04 Health Aspects of Water Development 162 0 162
05 Waterlogging and Salinity Control and 62 (62) 0
TOTAL 1 725 (1) 1708
50. Following endorsement of a proposed international scheme for the "Conservation and Rehabilitation of African Lands" by the FAO Regional Conference for Africa in June 1990, overall priority will be given to its implementation, in cooperation with African countries and technical assistance organizations. Extra-budgetary funding will be necessary for its full implementation. Work will be initiated on the formulation of similar schemes, in collaboration with concerned regional experts and organizations, for the Latin America and Caribbean and the Asia and Pacific Regions, for endorsement at the respective regional conferences. Complementary activities will include the promotion of research into such subjects as sustainable land use systems for sloping land and the effects of erosion on soil productivity. Some 80 million hectares are currently affected by waterlogging and salinity problems.
51. In order to improve coherence of action, previous elements 05 and 02 are being merged under the heading Reclamation of Salt-affected Soifs: Drainage and Salinity Control. Special actions will include the preparation of an inventory of losses of irrigated land and soil productivity due to waterlogging and salinity, together with the development of low-cost and effective drainage methods and related training. Additionally, guidelines will be formulated and training undertaken in the use and management of gypsiferous soils and in the use of marginal quality water on sandy soils.
52. Under programme element 03, major emphasis was placed in 1990-91 on the use of marginal quality water for crop production resulting in direct technical assistance to member countries and the production of guidelines. While country level activities in this area, particularly through training and pilot studies, will continue during the 1992-93 biennium, a new thrust will be on the prevention of pollution of agricultural water. Field investigations will be undertaken of non-point source pollution and guidelines prepared. Support will continue to the WHO/FAO/UNEP Panel of Experts on Environmental Management (PEEM) (regular meetings, publications and training activities). PEEM, under a revised mandate, will address a wider spectrum of situations, including rural and urban water supplies, use of waste water including sewage effluents and drainage water
- and wetland ecosystems.
Sub-programme 126.96.36.199: Sustaining Resource Potentials
53. Changes at programme element level:
Programme lments* 1.990-91 Programme 1992-93
Budget Change Budget
01 Policy Advice in Support of Sustainable 183 (108) 75
02 Demonstration Programme of Sustainable 134 (40) 94
Farming Practices in particular, Soil and
03 Analysis of the Impact of Climatic 293 (293) 0
Change on Agriculture
04 Formulation of National Soil Policies 0 79 79
05 Action Programme on Water and 0 400 400
Sustainable Agricultural Development
TOTAL 610 38 648
54. This sub-programme was established in the 1990-91 biennium to provide a focus on sustainability issues with which activities in other units could be linked. Two new programme elements are introduced dealing with the formulation of national soil policies
and to cover FAO's share of the International Action Programme on Water and Sustainable Agricultural Development.
55. Ten years have elapsed since the World Soil Charter was endorsed by the Twenty-first Session of the FAO Conference. Progress in its follow-up will be reviewed and positive lessons will be incorporated into national policies. This work will be undertaken in close collaboration with UNEP and national institutions. The International Action Programme on Water and Sustainable Agricultural Development, formulated in the present biennium as one of the key elements of the strategy for the nineties in follow-up to the Mar del Plata Action Plan, will also provide an input to the 1992 UN Conference on Environment and Development. Activities will comprise country programming missions, the development of project profiles and project documents, a global consultation, and implementation and technical support to selected projects at the country level.
56. Other elements are, of necessity, reduced or cancelled to provide funding for this new initiative. Programme element 01, Policy Advice in Support of SustainableAgriculture is, however, retained albeit' at a reduced level. The considerable work of analysis of impact of climate change on agriculture, undertaken in 1990-91 in connection with the World Climate Conference, will be phased out under this programme, but continued under Programme 2.1.4.
Sub-programme 188.8.131.52: Regional Offices
57. AIrica: The Regional Office for Africa (RAFR) will continue to compile and assess data on land resources and provide information on related potentiats by agroecological zones to governments, planners and policy-makers. It will actively contribute to the practical implementation of the International Scheme on the Conservation and Rehabilitation of African Lands, endorsed by the African Regional Conference in 1990 and to the inter-agency Action Plan on Water and Sustainable Agricultural Development, implemented under the aegis of the AGL Division. It will also participate in the inventory and evaluation of irrigation development and management techniques and methodologies. Technology transfer will be promoted through networks, training activities and meetings. Other activities will concentrate on improving soil prodiuctivity and the adoption of appropriate soil management techniques; the formulation of practical actions for combatting land degradation; and the promotion of environmentally sound wetland development.
58. Asia and the Pacific: RAPA will emphasize environmental protection and sustainable production issues concerning land and water use in agricultural development. It is planned to hold meetings of the regional TCDC networks on bio and organic fertilizer use, problem soil management, water lifting devices, and irrigation management. The activities of these networks will focus on integrated plant nutrition, amelioration of soil degradation processes, problems of ground water exploitation and drainage; and efficient irrigation management with farmers' participation. The Twelfth Session of the Regional Farm Management Commission is scheduled for 1993. Training on the use of
FAO's farm analysis package (FARMAP) and the analysis and development of conservation-oriented farming systems will continue.
59. Europe: REUR will continue to sponsor and monitor the activities of the European Cooperative Research Networks on Trace Elements and Animal Waste Utilization with special emphasis on the protection of the environment and the standardization of analytical methods. The achievement of the networks will be documented and disseminated to member countries. A technical meeting on the "Safe and Efficient Utilization of Manure/Slurry in Agriculture" and a consultation of the Network on Trace Elements covering Food, Soil and Plants, and Environment will be organized.
60. Latin America and the Caribbean: A regional consultation of policy-makers and financial institutions will be convened to discuss the subject of rehabilitation of existing irrigation and drainage systems. Training materials at different levels will be prepared. The use of agro-ecological zoning methodologies at the national and local level will be further promoted. Another important line of activity will be the identification and dissemination of appropriate and sustainable technologies for semi-arid zones and sloping lands, to be coordinated with activities in watershed management and agro-forestry systems. Use of sewage water for irrigation close to urban areas will also receive attention. The Technical Cooperation Networks on Rehabilitation of Low and Flooded Areas, and on the Utilization of Natural Resources in the Semi-arid Chaco Region will be extended to include ail countries with arid and semi-arid areas. Work on farming systems development will concentrate on countries in Central America and the Caribbean. The inclusion of gender aspects in the design of programmes and the access of small farmers to export markets, will be emphasized.
61. Near East: The Regional Office for the Near East (RNEA) will give emphasis to the improvement of surface irrigation efficiency by precision-levelling for field crops and the large-scale adoption of micro-irrigation systems (fertigation/chemigation) for open fields and greenhouse crops. Activities are also planned on the use of treated sewage and low-quality water in localized irrigation systems for agriculture and aquaculture. The Eleventh Session of the FAO Regional Commission for Land and Water Use in the Near East will be convened in 1992. The joint ESCWA/FAO Agriculture Division (JNEA) will provide further assistance to member countries in preparing their national plans to combat desertification and in designing field projects. Field studies will also be undertaken on farm management in different agro-ecological situations within countries of the region.
Programme 2.1.2: Crops
62. Provisions (in US$ '000) for individual sub-programmes are shown in the following table:
. ii. S' i .p ii i : i .
Su-rgams1990-91 Programime:::. 1992-93'
Budget Change Budget
184.108.40.206 Conservation and Management of 1 517 (4) 1 513
Plant Genetic Resources
220.127.116.11 Crop Management and 4 905 (233) 4 672
18.104.22.168 Seed Production and Plant 3 138 (384) 2 754
22.214.171.124 Crop Protection 5 675 320 5 995
126.96.36.199 Agricultural Engineering and 3 147 (201) 2 946
Prevention of Food Losses
188.8.131.52 Food and Agricultural Industries 1 905 (51) 1 854
184.108.40.206 Regional Offices 5 823 (689) 5 134
220.127.116.11 Field Programme Support 3 771 48 3 819
18.104.22.168 Programme Management 2 254 503 2 757
!TOTAL 32 135 6 91) 1 444
63. The Crops Programme remains strongly orientated towards technical support to development projects. There is also due emphasis on the transfer of research results through cooperation with relevant institutions. Major areas of work are: conservation and management of plant genetic resources; crop management and diversification; seed production and plant improvement; crop protection; agricultural engineering and food and agro-industries.
64. The Plant Production and Protection Division (AGP) is responsible for the Subprogrammes 22.214.171.124, 126.96.36.199,188.8.131.52 and 184.108.40.206. The Agricultural Services Division (AGS)
covers Sub-programmes 220.127.116.11 and 18.104.22.168, whilst the allocation for Sub-programmes
22.214.171.124 and 126.96.36.199 are shared between AGP and AGS.
65. The provision for Programme Management related to the AGS Division was hitherto split into two components shown under the Programmes 2.1.2, Crops, and 2.1.5, Rural Development, under which the division implements most of its substantive activities. For the sake of facilitating management of related expenditures, the whole programme management provision of the AGS Division is now included under Programme 2.1.2, hence the increase under Sub-programme 188.8.131.52 and corresponding decrease under Sub-programme 184.108.40.206.
66. Sub-programmes 220.127.116.11, 18.104.22.168 and 22.214.171.124 have been reorganized in order to
bring them more in line with the work to be undertaken and sharpen attention to sustainability issues linked o agricultural production. Sub-programmes 126.96.36.199, 188.8.131.52
and 184.108.40.206, formerly respectively "Genetic Resources", "Crop Improvement and Management" and "Seeds" are proposed to be retitled "Conservation and Management of Genetic Resources", "Crop Management and Diversification" and "Seed Production and Plant Improvement".
67. The proposed shifts between or within the various technical sub-programmes concern in particular: regrouping of ail activities on information exchange on seeds and plant genetic resources in Sub-programme 220.127.116.11 under a single programme element; regrouping of activities in Sub-programme 18.104.22.168 on in situ and ex situ conservation and evaluation and monitoring of use of plant genetie resources; the redistribution of resources on training and information on seed improvement to other programme elements within the Seed Programme; an increase in resources in Sub-programme 22.214.171.124 (US$ 320 000) to provide for the Secretariat of the International Plant Protection Convention (IPPC) and information exchange on the Prior Informed Consent (PIC) clause; and a decrease in resources for migratory pest control activities to reflect transfer of regional responsibilities for locust control from the field to headquarters (and abolition of outposted staff positions).
68. The overall resource levels of the two sub-programmes implemented by the AGS Division (126.96.36.199 and 188.8.131.52) are reduced. Whilst emphasis is given to the identification of technology alternatives and human resources development, other activities have been reduced and resources are shifted to Sub-programme 184.108.40.206 to permit greater support to field activities in the area of food losses prevention. Demand for assistance in apicultural development has decreased, but this is partly compensated by new activities geared towards value-added applications of natural fibres and the development of smallscale industrial facilities for processing of agricultural products.
Sub-programme 220.127.116.11: Conservation and Management of Plant Genetic Resources
69. The sub-programme aims at ensuring safe conservation, promoting rational utilization and facilitating exchange of plant genetic resources and related information and technologies. As approved by its Governing Bodies, FAO's global system on plant genetic resources encompasses three major elements: (i) a formal framework, the International Undertaking on Plant Genetic Resources; (ii) an intergovernmental forum, the Commission on Plant Genetic Resources; and (iii) a financial mechanism, the International Fund for Plant Genetic Resources. These elements cover both ex situ and in situ conservation, management and use of agriculture and forestry plant genetic diversity. In line with the principles outlined in the International Undertaking, the subprogramme will pursue further development and implementation of the global system, viz. the establishment of an Advisory Committee and the preparation of a Global Plan of Action. In these actions, FAO will fully cooperate with other organizations involved with plant genetic resources.
70. The former programme elements on Support to Member Countries on Plant Genetic Resources and Training on Plant Genetic Resources are to be converted into three new elements entitled Ex Situ Conservation and Networking, In Situ Protected Areas and Networking and Evaluation and Monitoring of Use of Plant Genetic Resources for
Sustainable Agricultural Development. The former programme element, Information on Plant Genetic Resources will be merged with the Seed Information System. These information activities (US$ 268 000) have therefore been transferred to one consolidated programme element in Sub-programme 18.104.22.168.
71. Changes at programme element level:
Prog ramme Element 1990-91 Programme>*" 1992-93'
Budget Chang ::Budget
01 Commission on Plant Genetic Resources 631 31 662
02 Support to Member Countries on Plant 414 (414) 0
03 Training on Plant Genetic Resources 204 (204) 0
04 Information on Plant Genetic Resources 268 (268) 0
05 'Ex Situ' Conservation and Networking 471 471
06 'In Situ' Protected Areas and Networking 0 31 31
07 Evaluation/Monitoring of Use of Plant 0 349 349
Genetic Resources for Sustainable
T TAL 1 517 (4) 1513
Sub-programme 22.214.171.124: Crop Management and Diversification
72. The overall resource level had to be slightly reduced. The focus is on the provision of information, advice and technical assistance to member countries on the production of staple food crops cereals, grain legumes, roots and tubers, bananas and plantains, fruits and vegetables as well as on export-earning industrial crops. Aspects of sustainability of production systems, diversification as well as training, will be addressed throughout the corresponding elements. Attention will be given to improving productivity of many presently under-utilized crops of importance to resource-poor farmers.
73. It is proposed to establish two new posts at P-3 level, through internal shifts in resources. One post will contribute to strengthening activities on sustainable agricultural practices, especially for grain and oil legumes. This post will also cover biotechnology developments for these crops. The second post is to promote activities on agro-forestry. Agro-forestry will be particularly addressed in the programme element Major Industrial Crops and Mixed Perennial Cropping Systemns, which will absorb the earlier element on Alternatives to Shifting Cultivation. A new programme element is established for plant breeding work to provide the necessary link with other sub-programmes.
74. Changes at programme element level:
Programme Elements 1990-91 Programme 1992-93
Budget Change Budget
01 Development of Grain and Oilseed 516 (116) 400
02 Improvement of Cereal Crops 1 197 (69) 1 128
03 Improvement and Intensification of 417 (124) 293
04 Promotion of Root and Tuber Crop 393 (43) 350
Production and Improvement for Small
05 Development of Fruit Production 636 23 659
06 Crop Diversification and Intensification of 383 (124) 259
Mixed Cropping Systems
07 Major Industrial Crops & Mixed 511 296 807
Perennial Cropping Systems
08 Alternatives to Shifting Cultivation 183 (183) 0
09 Industrial Crop Diversification, Illicit 196 0 196
Drug Crops Substitution and
Development of Under-utilized Plants
10 Promotion of Plant Biotechnologies 440 3 443
11 Policies for Sustainable Production 33 (33) 0
12 Improvement of Plant Breeding Methods 0 137 137
and their Application
TOTAL 4 905 (233) 4 672
Sub-programme 126.96.36.199: Seed Production and Plant Improvement
75. The sub-programme will continue to support the Special Action Programme on Seed Improvement and Development which is attracting steady extra-budgetary funding. Programme element 02 now combines the Seed Information System and information on plant genetic resources. The sub-programme will continue to assist member countries in formulating national seed policies and programmes. On-farm seed production remains an important activity which receives additional resources. The activities previously included under the programme element Training and Information on Seed Improvement
have been integrated with other programme elements. This should not be interpreted as lack of attention to training, which forms an integral part of ail crops programmes. 76. Changes at programme element level:
01 Seed and Planting Material Introduction 497 (188) 309
02 Information Systems on Seed & Plant
03 Strengthening of National Seed
04 Training and Information on Seed
05 Improved On-farm Seed Production
418 1 153 774
885 1 117
TOTAL'3 138 (384) 2 754
Sub-programme 188.8.131.52: Crop Protection
77. Changes at programme element level:
Programme Elements 1990-91 Programe 1992-9
Buget Chnge Budget
01 Implementation of the International Plant 976 407 1 383
02 Integrated Pest Management 1 421 (6) 1 415
03 Pesticide Management 1 269 287 1 556
04 Migratory Pest Control 1 298 (217) 1 081
05 Strengthening Plant Protection 711 (151) 560
TOTAL 5 675 320 5 995
78. In line with the recommendations of the Twenty-fifth FAO Conference, it is proposed to establish a Secretariat of the International Plant Protection Convention (IPPC) and to strengthen activities on information exchange in relation to the Prior Informed Consent (PIC) clause of the International Code of Conduct on the Distribution
and Use of Pesticides. This will require two new posts, a P-5 Coordinator of the International Plant Protection Convention, and a P-3 Pesticide Information Officer.
79. A number of hitherto small programme elements have been consolidated in one element dealing with Integrated Pest Management. The substantial field activities associated with this programme element will require backstopping and further project and programme development.
80. The programme element on Migratory Pest Control will continue to support intergovernmental coordination, provide assistance in emergency situations and keep a watch on locust and grasshopper infestations. Improved international communications have resulted in a decreased requirement for regional and decentralized locust information centres. A P-5 post and two General Service posts can be abolished, leading to the net reduction of US$ 217 000.
Sub-programme 2.1.2,5: Agricultural Engineering and Prevention of Food Losses
81. Changes at programme element level:
Programme Elements 19-91 Prgam* 19-93
. B udget C hange B udget
01 Action Programme for the Prevention of 949 (204) 745
02 Agricultural Engineering Information 788 80 868
03 International Cooperation and Liaison for 404 (135) 269
04 Input Management Related to 418 (35) 383
05 Alternative Technologies in Agricultural 416 25 441
Engineering and Improved Project Design
06 Training on Agricultural Engineering 172 68 240
TOTAL 3. 147 .(20) 2 946
82. Work on agricultural engineering, which was reorganized during the present biennium to reflect the need for integrating engineering inputs with other agricultural support services, will give priority to information exchange and dissemination, to which more resources are allocated. An information exchange system which should complement existing international, regional and national systems will be further developed. Planning for the management of inputs in agricultural mechanization schemes, storage and farm buildings will remain important to ensure that increasingly
sophisticated technology is used according to the development objectives and farming systems of the country.
83. Activities for the prevention of food losses will aim at consolidating progress in the promotion and development of sustainable national post-harvest programmes. A multi-disciplinary post-harvest systems approach will be followed. Project development related to staple food commodities such as foodgrains and root crops, will continue, while coverage of fruits and vegetables will be further expanded. Special consideration will be given to the role of women, to environmental issues related to the use of pesticides and to the role of NGOs and the private sector.
Sub-programme 184.108.40.206: Food and Agricultural Industries
84. The development of viable rural agro-industries will be pursued to permit farmers to expand income opportunities beyond subsistence farming. The subprogramme will focus on the development of new technologies and the upgrading of traditional processes. In the food sector, emphasis will be put on the development of marketable convenience foods based on indigenous crops, such as wheatless bread, and improved processing of roots, tubers, cereals, oil seeds and legumes. Particular attention is also to be given to increasing value-added in the processing of fruits, vegetables and spices. In the non-food sector, activities will concentrate on natural fibres and sericulture as well as industrial applications such as starch from roots or cereals for use in paper production. The use of emerging technologies such as fermentation and residue treatment will continue to receive attention.
85. Changes at programme element level:
Programm Elem.fents 99. Programme::*:' 1992-93:
01 Food Processing and Handling including 557 (28) 529
Indigenous and Composite Flours
02 Processing of Medicinal Plants, Spices 141 (1) 140
03 Apiculture 239 (95) 144
04 Hides and Skins and Animal By-products 134 (3) 131
05 Natural Fibres including Sericulture 278 33 311
06 Agricultural Processing for Industrial 144 51 195
07 Process Biotechnology 260 4 264
Sub-programme 220.127.116.11: Regional Offices
86. Africa: RAFR will continue to cooperate with national research/extension institutions on the design and implementation of on-farm trials/demonstrations, dealing with important cereals, root and oil crops. The weaknesses of national plant protection structures throughout the region and the insufficient response capability of the regional pest monitoring and control organizations, will require the implementation of corrective measures. There is also an increase in the use of chemical pesticides on both cash and food crops, without the necessary control mechanisms to minimize their harmful effects on humans and the environment. RAFR will, therefore, give priority to the promotion and effective application of Integrated Pest Management and the application of the International Code of Conduct on the Distribution and Use of Pesticides through country surveys, especially in Eastern and Central Africa. The formulation and implementation of realistic plans for phytosanitary control and plant quarantine in the context of external trade, will be pursued.
87. Asia and the Pacific: Increased yields of major crops, especially under rainfed conditions, will be sought through the active promotion of location-specific packages of selected crop varieties and management practices. A regional expert consultation will be held to assess the current situation and prospects of sustainable crop production under different agro-ecological settings. Trends in crop diversification will be analyzed and documented and experiences shared amongst countries of the region. A regional training workshop on breeding and improvement of medicinal and aromatic plants will be organized. The regional TCDC project on coarse grains and legumes will be further backstopped. Activities on root and tuber and horticultural crops are planned for the benefit of the Pacific Island states. Regional networks on vegetables, oilseed crops, cotton with emphasis on hybrid cotton, and rainfed agriculture will be serviced through information collation and exchange. Conservation, utilization and exchange of germplasm will also be promoted. The status and prospect of production, distribution and supply of quality seeds, including planting materials of vegetatively propagated crops, will be analyzed through a regional expert consultation.
88. RAPA will continue to provide secretariat services to the Asia-Pacific Plant Protection Commission (APPPC), and issue technical bulletins and the APPPC Quarterly Newsletter. Activities on integrated pest management will be promoted through expert consultations on biological control of plant diseases and on the role of biotechnology in pest management. The development of harmonized plant quarantine
procedures/treatment will be pursued. A regional workshop will be held on the safe and efficient use and distribution of pesticides. The needs in the South Pacific Islands for appropriate mechanization will be explored through a regional Expert Consultation on the Establishment of a Network for Agricultural Tools and Implements in the Pacifie Islands. A regional Expert Consultation on a Network for Education and Curriculum Development in Agro-industries will also be convened while support to member countries will continue in the areas of prevention of food losses and post-harvest technology.
89. Europe: REUR will support joint research programmes and exchange of information and germplasm through the activities of the existing cooperative research fltworks and/or working groups on olives, soybean, sunflower, maize, cotton, rice, nuts, flax and mushrooms. Prospects for research cooperation on the industrial use and development of potatoes and the potential of new small crops in European agriculture will be studied at ad hoc meetings. Three technical consultations of the networks on soybean, cotton and rice and several workshops will be organized in the 1992-93 biennium.
90. Latin America and the Caribbean: The Technical Cooperation Network on Food Crops Production will be the main channel for TCDC activities concerning genetic improvement and production of vegetable crops, including training of national experts through sub-regional training courses, strengthening of ongoing projects on applied breeding research, exchange of germplasm, national and regional varietal trials and seed production. In 1990-91, RLAC also initiated support to regional cooperation on the development and application of plant biotechnology, inter alia through a regional survey and the launching of a Technical Cooperation Network among plant biotechnology !aboratories, jointly with AGP. In 1992-93, this will be pursued through assistance in the formulation of national and regional biotechnology policies, comprising biosafety, patenting and a code of conduct, together with training activities. A regional meeting on plant biotechnology will be held in 1993 to discuss a draft Action Plan to be proposed to governments of the region.
91, A Technical Cooperation Network on Citrus Fruits will cover aspects of utilization and conservation of genetic resources, applied biotechnology, production of propagation material, production technology, agro-industry and marketing. Assistance to Central American countries will receive particular attention. Although of a lesser priority, joint activities with AGP will be undertaken in support of research and development of Mediterranean rice, of the global network on soybean, of the FAO/Netherlands project on Andean crops and of the development of roots and tubers in the Caribbean.
92. With regard to plant protection, the implementation of the International Plant Protection Convention will be further supported with attention to sanitary and phytosanitary regulations in trade of food and agricultural products. Support to the Caribbean Plant Protection Commission and corresponding assistance in plant quarantine, will also continue. Sound practices for application of pesticides at the level of small producers will be the subject of promotional and technical material and training courses. Support will be maintained to regional technical cooperation groups for improved weed management, sugar cane sanitation, citrus protection, cotton pest management, rodent control, as well as the control of fruitfly. The Technical Cooperation Networks on Post-harvest Grain Technology, Tropical Fruits Processing and African Oil Palm will enable RLAC to assist agro-industrial development in the region.
93. Near East: Cooperation will be pursued with regional and international research centres such as ICARDA, ACSAD and CIMMYT. Aspects of sustainability of
agriculture, women participation and protection of the environment will be given due attention in the formulation and implementation of crop improvement activities.
94. Plant protection activities will be geared to reducing pre- and post-harvest crop losses caused by pests through the provision of technical support and the coordination of regional plant protection activities and information exchange. FAO's sponsored instruments such as the International Plant Protection Convention and the International Code of Conduct on the Distribution and Use of Pesticides, will be further promoted. Contacts will be pursued towards establishing a Regional Cooperative Network of National Institutions for Agro-industrial Development in the Near East Region. Assistance is planned on apiculture, sericulture and small-scale agro-processing industries in rural areas.
Programme 2,1.3: Livestock
95. Provisions (in US$ '000) for individual sub-programmes are shown in the following table:
Sub-Programmes 1990-91 Programme, 1992-93
Budget Change Bud.get
18.104.22.168 Grassland, Forage and Feed 2 014 48 2 062
22.214.171.124 Animal Health 5 348 (575) 4 773
126.96.36.199 Genetic Resources 946 (102) 844
188.8.131.52 Dairy Development 1 007 182 1 189
184.108.40.206 Meat Development 1 247 54 1 301
220.127.116.11 Livestock Production 1 581 43 1 624
18.104.22.168 Regional Offices 3 177 (205) 2 972
22.214.171.124 Field Programme Support 2397 (113) 2284
126.96.36.199 Programme Management 1 091 53 1 144
TOTAL 18.808 (615) 18 193
96. Livestock accounts for a quarter of agricultural output in the developing countries and half of the output in the developed world. The development process leads to an increase in the proportion of animal products in food demand. There is therefore scope for faster expansion of the livestock sector as against other agricultural activities. Livestock, in addition, makes a key socio-economic contribution providing farmers with an element of financial security, cash for inputs to stimulate crop production, essential energy inputs for many crop systems, and enhanced economic opportunities for disadvantaged groups in rural societies, particularly women. The programme is
implemented in collaboration with the related International Agricultural Research Centres.
97. Responsibility for implementation of the programme rests with the Animal Production and Health Division (AGA) for Sub-programmes 188.8.131.52, 184.108.40.206, 220.127.116.11, 18.104.22.168,22.214.171.124 and 126.96.36.199. Sub-programmes 188.8.131.52 and 184.108.40.206 are shared between AGA
and the Plant Production and Protection Division (AGP). Sub-programme 220.127.116.11 covers the activities of the Regional Offices and Joint Divisions. Resources for the publication of the World Animal Review are distributed among the substantive technical subprogrammes.
98. The resources proposed to be allocated to the programme have to be reduced. Nevertheless, priority is being given to sustainability in animal production in the developing countries, under the various sub-programmes. The programme will cover, in particular:
improvement and better utilization of grassland, forage and feed resources
without environmental degradation (Sub-programme 18.104.22.168);
direct action to control diseases by strengthening veterinary services and
disease control/prevention programmes, including the Screwworm Eradication Campaign in North Africa (SECNA), transfer and adaptation of new biotechnological methods in disease diagnosis and vaccine
production (Sub-programme 22.214.171.124);
selection and upgrading of local genetic resources and the conservation of
local breeds, including the application of biotechnology (Sub-programme
further support to dairy and meat development through the establishment
of village processing facilities for smallholders (Sub-programmes 126.96.36.199 and
promotion of small and large ruminant production, as well as poultry and
rabbit and other small animal production, including the promotion of strategies for sustainable livestock development (Sub-programme 188.8.131.52).
Sub-programme 184.108.40.206: Grassland, Forage and Feed Resources
99. New activities are included to expand the feed base for poultry, pigs and other monogastric animals. Regional technical task forces are being supported for the introduction of molasses blocks, treatment of low quality roughages and the use of sugar cane juice for monogastric animal feeding. These technologies will be widely disseminated, building on the competence acquired by these regional task force members.
100. Through shifts within the sub-programme, an existing programme element on feeding systems and feed security has been expanded and renamed. It will focus on developing and promoting economical feeding systems primarily based on local feedstuffs. The element will include information activities including country-wide feed inventories. Current work on strategic feed supplementation will be extended to cover feeding of monogastric animais, especially pigs.
101. Results of biotechnology applied to animal nutrition will be evaluated and technologies relevant to the developing countries' situations will be pursued, relying mainly on extra-budgetary resources.
102. The AGP Division will continue activities on the improvement of grassland and pasture crops in various agro-ecological conditions as an essential factor in animal production systems, particularly in relation to their long-term sustainability.
103. Changes at programme element level:
.Programme Elements 1990 Programme 1992
Budget Change Budget.
01 Integrated Management of Arid and 455 (10) 445
Semi-arid Grazing Resources (EMASAR)
02 Development of Pastures in Humid Areas 414 (10) 404
03 Biological Nitrogen Fixation 140 0 140
04 Feed Resources Utilization 642 (194) 448
05 Feeding Systems and Feed Security 231 (231) 0
06 Sustainable Feeding Systems 0 493 493
07 Application of Biotechnology in Animal 132 0 132
TOTAL' 2014 48 2 062.,.
Sub-programme 220.127.116.11: Animal Health
104. The overall budget provision has been reduced mainly with regard to work on infectious diseases and biotechnology, but will still permit more resources to be channelled to the control of parasitic diseases. Work on disease intelligence will continue to include collecting and disseminating data on disease occurrence and control, through FAO's animal health data bank, and the FAO/WHO/OIE Animal Health Yearbook. Assistance to veterinary services in developing countries will focus on training in management and economic aspects. Attention will also be given to nutritional, reproduction and genetic diseases and animal production hygiene.
105. Activities on infectious disease control will continue to give priority to diseases of major econornic and sanitary importance. Emergency diseases such as rinderpest and fo9t-and-mouth disease and zoonosis diseases such as brucellosis and rabies will also be addressed. In the field of parasitic diseases, action will concentrate on ticks and tickborne diseases, as well as selected helminthic diseases particularly those transmissible tg man.
106. A major activity will be the screwworm eradication campaign in North Africa largely supported by extra-budgetary resources and screwworm monitoring in the world. New improved methods will be applied in controlling tsetse and trypanosomiasis. 107. Biotechnology activities in animal health will be oriented to the transfer of new methods in vaccine production and disease diagnosis to developing countries. 108. Changes at programme element level:
Programme Elements 1990-91 Pro gramme 1992-93.
Btdget Change Budget
01 Disease Intelligence/Veterinary Services 1 427 (120) 1 307
02 Control of Infectious Diseases 1 546 (270) 1 276
03 Control of Parasitic Diseases 597 121 718
04 Control of Insect Vector Diseases 1 246 (112) 1 134
05 Application of Biotechnology in Animal 532 (194) 338
TOTAL 5 3481 (575) 7 73
Sub-programme 18.104.22.168: Animal Genetic Resources 109. Changes at programme element level:
:Programme Elements 1990-91 Programme 19*92-93
Budget Change,: Budget
01 Application of Biotechnology in Animal 365 (140) 225
Breeding and Genetics
02 Utilization of Animal Genetic Resources 333 (1) 332
03 Preservation of Endangered Indigenous 248 39 287
TOAL946 (102) 4
110. This sub-programme includes activities on crossbreeding, selection and other methods of genetic improvement. The FAO Semen Donation Scheme and work on improved reproduction management will aim at increased output per animal and genetic improvement for future generations.
111. The application of biotechnology to genetie improvement will be pursued, particularly with respect to embryo manipulation. However, the allocation for the corresponding element can be reduced in view of the availability of extra-budgetary support to the livestock biotechnology networks.
112. The programme element on the preservation of endangered indigenous breeds has been reformulated, taking account of the recommendations of the Committee on Agriculture. In situ conservation of breeds is to be added to existing activities on data banks and gene banks. Additional data from developing countries will be collected for this purpose. Surveys will be carried out to evaluate specific country needs for the preservation of animal genetic resources and projects prepared accordingly. Cooperation will continue with regional and international organizations active on biodiversity matters.
Sub-programme 22.214.171.124: Dairy Development
113. Changes at programme element level:
Programme Elements 1990-91 Programme 1992-93
Budget Change Budget
01 Integrated Dairy Development 578 (7) 571
02 Promotion and Improvement of 203 65 268
Technology of Traditional Dairy Products
03 Code of Principles on Milk and Milk 39 (21) 18
04 Dairy Training and Education 187 145 332
TOTAL 1 007. 182 1 189
114. The promotion of integrated dairy development projects will continue, with emphasis on the participation of small-scale milk producers. Model units for milk processing at village level have been developed and will be refined and replicated. The management and economic aspects of milk promotion, collection, processing and distribution will also receive attention. A special technical information service to member countries on milk/milk products technology and control will be initiated. Publications are planned on specific aspects of the dairy industry.
115. A net increase is proposed for the promotion of improved technology at village level focusing on traditional milk products, in particular from sheep, goat and camel milk. Livestock/dairy training activities will continue to concentrate on institution
building, training of teachers and encouraging the participation of women in development.
Sub-programme 2,1.3.5: Meat Development
116. Changes at programme element level:
P.ogramme Elements, 1990-91 Por m e 929
. . Budget Change, Budget
01 Meat Technology and Hygiene 786 (53) 733
02 Meat Training and Education 461 107 568
TOTAL. 1247 4 1301
117. The two components on meat technology/hygiene and training and education are kept at approximately the same levels. Work on meat hygiene and inspection will aim at the establishment of small to medium-sized slaughter and meat processing facilities for different kinds of animal species (including poultry). Model units for meat and byproducts processing and marketing, in particular at village level, will be further adapted to the needs of particular communities. In this context, environmental problems and the handling of animais prior to slaughter will be addressed. Appropriate methods and suitable equipment for low-cost meat preservation methods are being tested and will be further developed.
118. A technical information service to member countries on meat/meat products development, technology and sanitary control will be introduced, to meet substantial requirements for information in developing member countries. Meat training and education activities will be continued, particularly through field activities.
Sub-programme 126.96.36.199: Livestock Production 119. Changes at programme element level:
.Programme Elemnents 1990-91 Progra ime 192
Budget sChange Budge*t
01 Animal Production Systems 1 335 (235) 1 100
02 Application of Biotechnology in Livestock 246 (246) 0
03 Strategies for Sustainable Livestock 0 524 524
TTAL 1581 43 .1,624
120. Work on animal production systems is centred on developing practical technologies for sustained growth in animal production without affecting the natural resource base, especially in prevailing smallholder farming systems. Multipurpose use of animals will be promoted taking account of their bio-energetic efficiency and opportunities for integration of animal and crop production. This will involve development and demonstration of simple "one-step" technologies that can be integrated into existing farming systems.
121. A new element has been introduced on strategies for sustainable livestock development which will cover core activities of analysis of policy issues in the livestock sector and project formulation, implementation, monitoring and evaluation, as a common framework for planning and sustainable livestock production. Criteria, indicators and key production parameters will be established in relation to sustainability of livestock production systems. Activities will also include the formulation of breeding policies and the rational evaluation of national objectives in direct reference to effective local feed supply situations, infrastructural support and market demands. Biotechnology activities have been transferred to Sub-programmes 188.8.131.52 and 184.108.40.206.
Sub-programme 220.127.116.11: Regional Offices
122. Afric : More refined data will be assembled on th tsetse/trypanosomiasis problem, e.g. base line information in production parameters so that the benefits of control activities are more accurately assessed and quantified. Further studies will be undertaken to determine the comparative efficiency of various control devices against different tsetse species. Control of trypanosomiasis requires more effective management structures and national research systems in the region. Thus, RAFR will promote the establishment of national research control systems and coordinating committees.
123. The threat to livestock from the New World Screwworm Fly will be closely monitored in close cooperation with the Screwworm Emergency Centre for North Africa (SECNA). Cooperation will also be strengthened with ILCA to promote alley farming in sub-humid and humid zones of Africa. Other activities in the next biennium will include the development of technical cooperation networks on small ruminants, camels, veterinary laboratories, low-cost meat preservation technologies, poultry and pig; sustainable agriculture through alley farming; intensive feed garden, fodder banks and the utilization of agro-industrial by-products in animal feeding and the development of indigenous breeds, such as Kuri cattle and guinea fowls.
124. Asia and the Pacifie: RAPA will coordinate the South Asian Rinderpest Eradication Campaign through close liaison with the Regional Coordination Unit and ad hoc consultative meetings. A regional Expert Consultation on Animal Quarantine Regulations will be convened. Assistance will continue to be provided for the upgrading of native cattle and buffaloes, using germplasm of regional origin. Other methods, particularly those involving biotechnology, will be further explored. Technical support, through expert consultations and workshops, will be provided for increased meat and dairy production with particular emphasis on price surveys and improvement of indigenous products. Promotion of milk collection through cooperatives will continue.
The Regional Animal Production and Health Commission for Asia and the Pacific (APHCA) will continue to operate on TCDC principles. The monthly publication "Asian Livestock" will remain an important source of information on livestock industry development in the region.
125. Europe: The cooperative research networks on pastures and fodder crops, on sheep and goat production and on animal production systems, will hold several workshops in the biennium. Prospects for research cooperation in the field of applied biotechnology in animal breeding and health protection will be further examined at meetings of working groups of existing networks. Ail networks will publish their achievements in a new series of technical bulletins. Participation of research institutions from North America and the Mediterranean region will be further encouraged.
126. Latin America and the Caribbean: RLAC will make use of the methodology developed through the Technical Cooperation Network among Veterinary Research and Diagnostic Laboratories in the identification of institutions capable of providing reference services in the area of animal health. Advanced technologies in all aspects related to animal production and health will be transferred to these reference services through the Network on Animal Biotechnology supported by AGA. Interregional consultations will be held to define longer-term cooperation arrangements in ail livestock-related disciplines. A technical manual on "Milk Production in the Tropics" will be produced and cover scientific knowledge and technology available in the region. A Technical Cooperation Network on Livestock Production Systems for Small Farmers will be set up. The Caribbean Network of Cooperation in Small Animal Development will continue to foster joint activities in the Caribbean area. Work on the development of South American Camelids, initiated during the 1990-91 biennium, will continue.
127. Near East: Member Governments of the region require assistance on range rehabilitation and pasture development, particularly on management techniques and on evaluation and propagation of native forage species. Sub-regional and regional projects based on an integrated approach to rangeland management will be developed, as well as disease control programmes, through inter-country cooperation within particular epizootiological zones in the region. The present regional projects on animal health and rinderpest eradication will be further supported. The Near East Regional Cooperative Research and Development Network on Small Ruminants will retain high priority.
Programme 2.1.4: Research and Technolouv Development
128. The generation, adaptation and application of technologies which are suitable to local conditions are an essential component for sustainable food and agricultural production. Aspects of research and technology development permeate most activities of the Organization. Programme 2.1.4 provides for in-house coordination and general support for work in key areas, i.e. research development, remote sensing and agrometeorology and environment, energy and sustainable development. The programme is mainly of an interdisciplinary nature and complements related programmes throughout the Organization.
129. Responsibility for the implementation of Sub-programmes 18.104.22.168, 22.214.171.124, 126.96.36.199
and 188.8.131.52 rests with the Research and Technology Development Division (AGR) while the responsibility for Sub-programme 184.108.40.206 is shared between AGR and the Office of the Special Adviser to the Director-General/Assistant Director-General for Environment and Sustainable Development (ODG). The Joint FAO/IAEA Division of Nuclear Techniques in Food and Agriculture (AGE) is responsible for Sub-programme 220.127.116.11 and the Library and Documentation Systems Division (GIL) is responsible for Subprogramme 18.104.22.168. Sub-programme 22.214.171.124 covers the activities of Regional Offices and Joint Divisions under the programme.
130. The Andr Mayer Fellowships Programme, implemented by the Agriculture Operations Division (AGO), was previously shown under Chapter 3. In view of its direct contribution to research development, it is proposed to transfer it to this programme as a separate element of Sub-programme 126.96.36.199. The relevant interdepartmental working group will continue to review proposais for research topics in the light of Regular Programme priorities and the advice of the Technical Advisory Committee (TAC) will also be sought.
131. Provision (in US$ '000) for individual following table:
sub-programmes are shown in the
.Sub-IProgrammes 1990-91 Programme 1992-93
Budget Change Budget
188.8.131.52 Research Development 3 586 (312) 3 274
184.108.40.206 Agricultural Applications of Isotopes 3 432 (4) 3 428
220.127.116.11 AGRIS, CARIS and Field 4 614 1 419 6 033
18.104.22.168 Remote Sensing and 2 116 (11) 2 105
22.214.171.124 Environment, Energy and 1 773 1 535 3 308
126.96.36.199 Regional Offices 1 097 45 1 142
188.8.131.52 Field Programme Support 733 0 733
184.108.40.206 Programme Management 1 299 0 1 299
TOAL18 650 2 672 21 322
132. As directed by Resolution 3/89, adopted by the Twenty-fifth Session of the FAO Conference, work on environment and sustainable development will be considerably strengthened. In addition, continued attention will be given to technology transfer and assessing the impact of climate change.
133. In broad terras, the programme covers:
integration of environment and sustainability considerations into agriculture
and rural development, including intensifying and coordinating interdisciplinary activities, close cooperation with other organizations and further incorporation of environmental impact assessments in FAO's work;
support to national agricultural research systems, particularly in research
policy, planning and management, and furthering technology transfer and
international research cooperation;
support to international research in agriculture, fisheries and forestry by
contributing to the determination of CGIAR priorities, strategies and resource allocations and through assessment of the relevance and quality
of the international centres' programmes;
strengthening the capabilities of developing countries in the applications of
remote sensing for the assessment of natural resources and the monitoring
of environmental conditions;
agrometeorological crop monitoring and forecasting to support early
warning systems of food shortages and assessing the potential impact of
climate change; and
assisting countries in energy policy formulation and planning and energy
technology development for rural areas.
Sub-programme 220.127.116.11: Research Development
134. The same structure of programme elements will be maintained in 1992-93, except for the addition of a new programme element to cover the Andr Mayer Fellowships (previously Programme 3.3.2). However, the proposed shifts between elements respond to evolving priorities, as many developing countries continue to encounter problems in the effective adaptation and application of new and emerging technologies. The element on Technology Assessment and Transfer, will step up assistance to member countries and monitor relevant biotechnology development. The gender aspects in technology transfer will be given due consideration.
135. This increase in resources is made possible by the completion of research management training materials and the one-time cost of an expert consultation on the role of universities in national agricultural research systems. Work related to advisory support to national agricultural research systems and the FAO contribution to the Technical Advisory Committee (TAC) of the CGIAR will be maintained at approximately the same level.
136. For the sake of economy, the provision for the Andr Mayer Fellowships is proposed to be substantially reduced. The remaining provision should still permit the awarding of three to four fellowships in the 1992-93 biennium.
137. Changes at programme element level:
Programme.Etements 1990-9 Programme 1992-9
Budget Change B det
01 Strengthening Research Management 393 (53) 340
02 Research Review Missions and Advisory 364 0 364
03 Technology Assessment and Transfer 498 47 545
04 Research Policy, Planning and 560 (105) 455
05 International Agricultural Research 1 257 0 1 257
06 Science and Technology Coordination 81 0 81
07 Andre Mayer Fellowships 433 (201) 232
TTL3 586 (312) 3 274
Sub-programme 18.104.22.168: Agricultural Applications of Isotopes and Biotechnology
138. The Joint FAO/IAEA Division of Nuclear Techniques in Food and Agriculture, located in Vienna, Austria, will continue to address a broad range of agricultural problems in developing countries.
139. The major shifts introduced in the present biennium will be consolidated by further strengthening various applications of molecular biology and other biotechnologies where the use of isotopic tracers is essential. Only minor adjustments are made for the 1992-93 biennium. Programme element 07 will be concerned with global and interdisciplinary matters.
140. A planned reduction in work on nitrogen fixation by annual crops will be compensated by new programmes on nitrogen fixing trees and prevention of soil salinization. A reduction is also foreseen on plant breeding on cereals in favour of oilseeds and less work on the development of diagnostic tests for livestock diseases and more work on livestock feeding strategies. Work on Medfly trapping technology will be concluded, work on isotope-aided molecular biology and genetic engineering for the improvement of insect control technologies will continue, as well as support to the screwworm eradication programme. Monitoring of pesticide residues in food and the environment will put emphasis on controlled-release formulations to reduce cost and
environmental contamination. Attention on radionuclide contamination of the agricultural environment can be reduced. Guidelines for national food irradiation regulations will be developed and demonstrations carried out of irradiation effectiveness against the incidence of food-borne parasites and pathogens. There will be a shift towards demonstrating techno-economic feasibility of food irradiation in developing countries and irradiation of high quality refrigerated foods.
141. Changes at programme element level:
Programme Elements 1990-91 Programme 1929
.Budget Change Budget:,
01 Soil Fertility, Irrigation and Crop 344 (1) 343
02 Plant Breeding and Genetics 507 (1) 506
03 Animal Production and Health 498 (1) 497
04 Insect and Pest Control 744 0 744
05 Agrochemicals and Residues 639 0 639
06 Food Preservation 286 (1) 285
07 Agricultural Applications of Molecular 414 0 414
TOTAL 3 432 (4) 3 4128:
Sub-programme 22.214.171.124: AGRIS, CARIS and Field Documentation Activities
142. The AGRIS and CARIS networks are now composed of 165 and 125 participating centres respectively. FAO's own input to AGRIS will continue to cover publications and documents generated at Headquarters and in field projects, as well as relevant documents produced by other UN agencies. The production and distribution of AGRIS data on compact disc will be pursued and further developed for the benefit of all users, particularly in developing countries. Advanced technology, including microcomputers and telecommunications networks, will be used to improve communications with participating centres, speed processing, improve flexibility, reduce unit costs and generate more user-friendly output. Training activities will make use of computer-assisted courses and distance-learning. Extra-budgetary resources will be sought to meet increased requirements for training missions and workshops. Advice and technical assistance will continue to be provided on request to member countries to set up or strengthen their agricultural documentation centres.
143. A substantial shift of resources is made from Programme 5.1.2 to Subprogramme 126.96.36.199, both implemented by the GIL Division, to regroup all divisional activities of a technical nature in one sub-programme, thereby also contributing to the rationalization of the workflow in the division.
144. Changes at programme element level:
Programme Elements 90-91 Porme 19-93,
Budget Change Budget,
01 Coordination of AGRIS and CARIS 808 (55) 753
02 Strengthening of AGRIS and CARIS 638 (91) 547
03 Systems Development and Maintenance 655 350 1 005
04 AGRIS Data Base Maintenance, Outputs 1 865 1 199 3 064
05 CARIS Data Base Maintenance, Outputs 169 184 353
06 Support to Documentation Projects 249 62 311
07 Systems Management 230 (230) 0
TO L .4614 1 419 6033
Sub-programme 188.8.131.52: Renote Sensing and Agrometeorology
145. The transfer of the Agrometeorology Group to the AGR Division, effected in 1990-91, has greatly facilitated FAO's assessments of crop conditions through integration of agrometeorological and remote sensing data. To better reflect FAO's technical work on agrometeorology, it is proposed to break down the hitherto single element on agrometeorology into three elements on Agrometeorological Crop Monitoring and Forecasting, Agrometeorological and Agronomical Information and Databases, and Impact of Climate Change. Work on the impact of climate change will keep its importance in the context of sustainable production of food and agricultural products. Shifts in resources are made to strengthen remote sensing education and training to compensate for a foreseen reduction in extra-budgetary support and to provide for FAO's participation in the International Space Year since FAO is the recognized focal point within the UN system for the application of remote sensing to renewable natural resources.
146. In order to accommodate the above changes, reductions will be made in remote sensing support services and pilot action studies, where Trust Fund support is expected to complement Regular Programme activities. Advantage is also being taken of the completion of the automation of agrometeorology data processing and cataloguing of reference information, to maintain services to users at current levels with lower cost.
147. Changes at programme element level:
:Programme Element. 1990-91 Programme 1992-93
Budget Change Budget
01 Coordination of FAO Space Activities 145 19 164
02 Advisory Services on Space Applications 295 (25) 270
and Pilot Action Studies
03 Remote Sensing Education and Training 230 50 280
04 Information and Support Services 306 (55) 251
05 Satellite Monitoring of Environmental 411 0 411
06 Agrometeorology 729 (729) 0
07 Agrometeorological Crop Monitoring and 0 220 220
08 Agrometeorological and Agronomical 0 275 275
Information and Databases
09 Impact of Climate Change 0 234 234
STOTAL 2 116 .1.2 105
Sub-programme 184.108.40.206: Environment, Energy and Sustainable Development
148. Resolution 3/89 of the FAO Conference called on FAO to strengthen its programmes for the protection of the environment and for the promotion of sustainable development of agriculture, forestry and fisheries. In response to this Conference directive, the Director-General has appointed a Special Adviser for Environment and Sustainable Development with the rank of Assistant Director-General and placed FAO's coordinating unit for these subjects under his direct supervision. The major additional tasks requested by the Conference include: (i) enhanced interdisciplinary work to ensure integration of environmental considerations in relevant FAO activities; (ii) higher priority to prevention of environmental degradation; (iii) strengthened cooperation with other organizations of the UN system in pursuing sustainable development; and (iv) FAO active participation in the UN Conference on Environment and Development and organization of a Joint FAO/UNEP meeting on sustainable agriculture as part of the preparation for this conference. In addition, the coordinating unit was given the responsibility for the organization in the 1990-91 biennium of the FAO/Netherlands Conference on Agriculture and Environment. In order to undertake these and other important tasks, two Professional posts and supporting General Service posts were established on a temporary basis during 1990-91 and are now proposed to be continued.
149. The above expanded responsibilities have led to thorough restructuring of Subprogramme 220.127.116.11. Firstly, the title is changed from "Environment and Energy" to "Environment, Energy and Sustainable Development". Secondly, several programme elements have been renamed and some new ones introduced as follows: (i) Preparation and Follow-up of the UN Conference on Environment and Development; (ii) Follow-up of the FAO/Netherlands Conference on Environment and Agriculture; (iii) Support to Cross-sectoral Action on Environment and Sustainable Development; (iv) Interdepartmental Coordination on Environment and Sustainable Development; (v) Interagency Cooperation on Environment and Sustainable Development; (vi) Sustainability Assessment; and (vii) Policy Guidance and Direction of Environmental and Sustainable Development Activities.
150. The following new posts are budgeted under the sub-programme: ADG/Special Adviser to the Director-General for Environment and Sustainable Development; P-5, Senior Officer (Environment and Sustainable Development); P-3, Environmental Officer, together with needed secretarial staff.
151. Additional non-staff resources will be mainly used to support cross-sectoral actions, as identified by the Steering Committee and Interdepartmental Working Group on Environment and Sustainable Development, particularly in the following areas: integration of environment and sustainability considerations in FAO's policy advisory services and planning assistance; biological diversity; climate change; agroforestry; desertification; integrated coastal area management; and energy.
152. Resources for work on energy policy and planning and energy technology development which are also integral components of sustainable development will remain at about the same level.