Statement by the Director-General1
11. The Director-General presented a summary of his statement to the Council, the full text of which is given in Appendix E to this Report.
Director-General's Review of the Programmes. Structures and Policies of the Organization
2
12. The Council considered the proposals of the Director-General in response to Conference Resolution 10/93. It recognized the important responsibility conferred on it by the Conference, at this historical juncture in the life of the Organization.
13. The Council commended the Director-General for the determined manner in which he had undertaken his review of the programmes, structures and policies of FAO. It observed that the proposals were in line with the broad goal he had indicated upon taking office. The Council was, therefore, pleased that the Director-General had sought to offer to FAO Member Nations a course of action reinvigorating the Organization. This would enable it to address more effectively the challenges of widespread hunger and malnutrition and of mounting pressures on a finite natural resource base, as well as enhancing multilateral cooperation in FAO mandated areas.
14. The Council welcomed the importance attached, despite the short time available, to ensuring the broadest possible base of consultations, both internally and externally, on which to build the proposals. It considered that this had greatly contributed to the proposals being responsive to the problems confronting Member Nations, both individually and collectively. The Council appreciated these signals of a new spirit of openness and dialogue.
15. The Council expressed with satisfaction that the proposals had been examined in detail by the Programme and Finance Committees, which had reached a unanimous position in recommending their approval. It welcomed the Director-General's response to the recommendation of these Committees in promptly submitting additional information which facilitated the work of the Council.
16. The Council agreed with the strategic orientations proposed in the document, including the further drive towards decentralization, the enhancement of national capacities, the strengthening of FAO as a centre of excellence, the search for more effective delivery of services through adjusted structures and streamlining of procedures and a determined approach to cost reduction.
17. Despite numerous demands placed on the Organization, the Council singled out the expectations from the membership of an active role for FAO in follow-up to the United Nations Conference on Environment and Development (UNCED). It underlined that Member Nations would continue to require FAO assistance in putting their agricultural development policies on a sustainable course.
18. The Council considered that the proposals had also sought to keep a balance in addressing the various needs of developing regions, while recognizing the interest of other regions in FAO's substantive work and assistance. It welcomed the attention paid to international trade issues, in the wake of the successful conclusion of the GATT Uruguay Round of Multilateral Trade Negotiations, and stressed the related requirements for assistance from Member Nations.
19. The Council welcomed the agenda for change which the Director-General had elaborated through his proposals, in the light of the identified challenges and in spite of the limited margin of manoeuvre available to him. It recognized the primarily policy character of the document, focusing on the principles which should govern such change. The Council endorsed these guiding principles, while recognizing the dynamic character of the process of change which would be continued in the Programme of Work and Budget 1996-97 and the Medium-term Plan. The active participation of the membership would be required throughout the process and there would be need for interim measures for monitoring progress.
20. The Council endorsed the proposed enhanced delineation between normative and operational activities. In this connection, the need to keep unity of purpose and to maintain effective interaction between the two sets of functions was stressed. It was also observed that staff resources and responsibilities should be judiciously distributed among the geographical levels of the organizational structure, allowing sufficient critical mass to remain at Headquarters. The Council stressed that decentralization should be accompanied by adequate delegation of technical and administrative responsibility and adjusted staff policies. Some members raised the issue of the possible long-term financial implications of these measures.
21. The Council agreed with the emphasis placed on broadened partnerships with bilateral programmes and with external partners, ranging from regional and multilateral financial institutions to Non-governmental Organizations (NGOs) and the private sector. It also agreed that this enhancement of partnerships could lead to greater leverage for the limited resources at the disposal of FAO, especially by mobilizing non-traditional resources for the financing of food and agriculture development. The Council urged increased attention to coordination and collaboration with other organizations of the United Nations system, in particular the other Rome-based food and agriculture agencies.
22. The Council endorsed the proposed sharpening of priority focus, through the initiation of two special programmes on food production in support of food security in low-income food-deficit countries (LIFDCs) and on an Emergency Prevention System for transboundary animal and plant pests and diseases (EMPRES).
23. The Council was pleased to note that the formulation of the special programme on food production in support of food security in LIFDCs - an area which was at the heart of FAO's mandate had benefited from the advice of a high-level seminar convened by the Director-General. The Council concurred with the approach proposed by the Director-General, including the selection of pilot projects and the use of appropriate technologies and strengthened national capacities through involvement of farming communities and extension personnel with socially and economically viable forms of association.
24. The Council welcomed the Director-General's approach focused on action at country level. It noted that this strategy would be oriented towards increasing overall food availability, stabilizing yields and generating employment and income in the agricultural sector. It agreed that amongst the LIFDCs, Africa should receive particular attention and recognized that the proposed approach was in conformity with the concerns often expressed by African countries, without prejudice to the attention due to other LIFDCs.
25. The Council observed that the intent was to enable FAO to better address a significant cause of the food security issue, i.e. insufficient local production, in accordance with specific regional and country situations, and was reassured that this would not detract from the Organization's balanced approach to this complex problem, which encompassed also sustainability and stability of and equitable access to food supplies. It underlined in particular that food self-sufficiency should not be considered as an objective per se, and encouraged continued FAO attention to social and economic aspects, including assisting Member Nations in their poverty-alleviation and employment-generation efforts. The Council welcomed the emphasis placed on Technical Cooperation among Developing Countries (TCDC) exchanges in the development of the programme and the intent to seek extra-budgetary funding to supplement limited Regular Budget resources.
26. With regard to EMPRES, the Council agreed that FAO should be better equipped to act on the preventative side of emergencies. The intended initial focus on locusts and rinderpest reflected the importance of these two pests. The Council recalled that there were other numerous instances of transboundary pests and diseases which also required FAO in its catalytic role, in line with the Organization's comparative advantage in this area. It, therefore, looked forward to further and expanded action in future biennia.
27. The Council welcomed the fact that besides initiation in the 1994-95 biennium of the two special programmes mentioned above, which would continue to evolve in the future, it had proved possible to accommodate priority resource shifts to programme areas to which Member Nations attached particular importance. It noted that the additional allocations to fisheries and forestry would enable FAO to keep momentum for important policy initiatives in these areas linked to responsible fishing and the conservation of the world's forests. The need to strengthen the momentum under the priority areas of plant and animal genetic resources was also emphasized.
28. The Council noted the limited impact of economy measures taken on ongoing activities. It gave its overall approval to the proposed reductions in publications and meetings which it saw also in relation to prospective measures to improve the quality of FAO's substantive output and to ensure cost-effectiveness.
29. The Council supported the proposed restructuring arrangements, as specified in the document. It endorsed in particular the transformation of the present Development Department into a new Technical Cooperation Department. The Council perceived this as a timely initiative to improve the coherence of FAO services to Member Nations while strengthening country focus, thereby meeting long-standing expectations from the Governing Bodies.
30. The Council noted that the new Department of Sustainable Development would draw on existing units in the Agriculture and Economic and Social Policy Departments. It considered that this was in line with the need for visibility of FAO's response to UNCED and should underpin attention to cross-sectoral priorities such as women-in-development and people's participation. It urged, however, that the new department should have its intended integrative and coordinating functions, in full complementarity with related activities of other units. The Council underlined the requirements for adequate in-house coordinating arrangements to match the new organizational framework.
31. The Council supported the establishment of a new Agriculture and Economic Development Analysis Division in the Economic and Social Policy Department which was in line with the established priority on policy advice, and which would closely collaborate with the Policy Formulation Division. It also supported the establishment of an Office for the Coordination of Normative, Operational and Decentralized Activities in the Office of the Director-General in order to facilitate functioning of decentralized structures and adequate substantive and administrative interaction between all geographical levels of the Organization.
32. The Council also fully endorsed the proposed policy of progressive decentralization away from Headquarters. It underlined the expected benefits from bringing FAO closer to its constituents, the enhanced relevance of FAO services to local situations and more economical modalities of action.
33. The Council concurred with the strengthening of the Regional Offices through the positioning of substantive multidisciplinary teams in these offices. It underscored that these offices should serve as the prime means of regional cooperation among Member Nations, bearing in mind needed cooperation with other institutions.
34. The Council also concurred with the establishment of Subregional Offices in each of the following subregions: North Africa; Southern and East Africa; Pacific Islands; Caribbean; and Central and Eastern Europe. It was expected that these offices would facilitate FAO's outreach of activities to the Member Nations in these subregions under the supervision of the respective Regional Offices. The Council recommended that defined criteria be followed in the location of these offices in close consultation with the Member Nations concerned. The desirability of similar offices in other subregions in the light of experience, efficiency and cost-effectiveness, was also mentioned.
35. The Council saw the progressive establishment of a cadre of National Professional Officers (NPOs) in country representation offices as a cost-effective and potentially important contribution to national capacity-building. It noted that the proposal would be implemented along the lines of specific rules already used in the UN system.
36. The Council noted the intention to arrange the transfer of staff presently in the Joint Divisions with the United Nations (UN) Regional Economic and Social Commissions and requested that adequate consultations be undertaken with the UN Regional Commissions with a view to maintaining fruitful cooperation with them as efficiently as possible, bearing in mind region-specific circumstances.
37. The Council noted that due attention had been put on streamlining of administrative procedures and the enhancement of management information systems, pending more detailed reviews of administrative support structures in the context of the Programme of Work and Budget 1996-97.
38. The Council noted that the net budgetary impact of the Director-General's proposals amounted to reallocating an amount of about US$29.7 million, as generated through initial economy measures, i.e. less than 4.5 percent of the total approved budget, which remained at the level of US$673.1 million, in line with the terms of Conference Resolution 10/93. It noted that both intra and inter chapter budgetary transfers would be handled in accordance with Financial Regulation 4.5, and agreed to the need for flexibility advocated by the Director-General.
39. The Council congratulated the Director-General for his comprehensive proposals which it felt came at the most propitious moment, when the Organization was about to celebrate its Fiftieth Anniversary.
40. In endorsing them, the Council encouraged the Director-General to set in motion their effective implementation with due care and determination taking into account the remarks made and concerns expressed by all Member Nations of the Council in the debate. It agreed that he should be granted the necessary flexibility to do so within the limits of available budgetary resources. The Council looked forward with interest to progress reports on implementation at its future sessions, as well as to the FAO Conference in 1995.
41. In conclusion, the Council,
Noting Conference Resolution 10/93 authorizing the Director-General to undertake with all necessary speed a review of the programmes, structures and policies of the Organization, in the light of the Conference deliberations,
Welcoming the Director-General's review and proposals regarding the programmes, structures and policies of the Organization,
Noting with satisfaction the views of the Programme and Finance Committees and their unanimous commendation of those proposals,
Exercising the powers conferred on it under Conference Resolution 10/93:
1 Approves the Director-General's proposals for resource shifts to programme priorities established in the 1994-95 Programme of Work and Budget (PWB) approved by the 1993 Conference and to launch the following two new priority programmes:
Special Programme on Food Production in Support of Food Security in Low-Income Food-Deficit Countries (LIFDCs);
Emergency Prevention System (EMPRES) for Transboundary Animal and Plant Pests and Diseases;
2 Approves the Director-General's proposals for changes in the structure of the Organization, including, in particular:
the transformation of the present Development Department into a new Technical Cooperation Department;
the establishment of a new Department of Sustainable Development, drawing on existing units in the AG and ES Departments;
the establishment of a new Agriculture and Economic Development Analysis Division in the Economic and Social Policy Department (ES); and
the establishment of an Office for the Coordination of Normative, Operational and Decentralized Activities;
3. Approves the Director-General's proposed new policy of progressive decentralization away from Headquarters, and the redeployment of FAO staff in the remaining Joint Divisions with the UN Regional Economic and Social Commissions, and in particular:
the strengthening of the Regional Offices;
the establishment of subregional offices for each of the following subregions:
the strengthening of the Regional Offices;
the establishment of subregional offices for each of the following subregions:
- North Africa;
- Southern and East Africa;
- Pacific Islands;
- Caribbean;
- Central and Eastern Europe;
the progressive establishment of a cadre of national professional officers in country representation offices.
4. Notes that both within chapter transfers and transfers from one chapter to another required to implement the proposals will be handled in accordance with Financial Regulation 4.5;
5. Welcomes the intention of the Director-General to provide periodic progress reports to the Council through the Programme and Finance Committees.
Measures to Improve the Collection of Assessed Contributions3
42. The Council noted that the Director-General considered that the subject of currency convertibility and foreign exchange exposure were complex issues and required further study. Accordingly, the Director-General had not submitted any proposal for payment of assessed contributions in non-convertible currencies and would come back to the Finance Committee at an appropriate time.
Trust Funds - Support Costs Reimbursement
4
43. The Council noted action taken by the Director-General pursuant to the directives of the last session of the Conference. An informal consultation had been held with all interested Member Nations. The Director-General had indicated his position not to submit any proposals for new rates for Trust Funds Support Costs reimbursements at this time, but rather to suspend further consideration until administrative costs had been reduced.
44. The Council further noted that the Director-General's position had been unanimously supported at the informal consultation and endorsed by the Programme Committee at its Sixty-ninth Session (Rome, 20-28 April 1994) and the Finance Committee at its Seventy-eighth Session (Rome, 21-28 April 1994).
45. The Council accordingly noted that the issue would be addressed in the formulation of the proposed Programme of Work and Budget 1996-97.
1 CL 106/INF/5; CL 106/PV/l; CL 106/PV/5.
2 CL 106/2; CL 106/2-Sup.l; CL 106/6; CL 106/PV/l; CL 106/PV/2; CL 106/PV/3;
CL 106/PV/4; CL 106/PV/5.
3 CL 106/3; CL 106/4 para. 2.61; CL 106/PV/4; CL 106/PV/5.
4 CL 106/4 paras 1.54-1.58 and 2.62-2.63; CL 106/5; CL 106/PV/4; CL 106/PV/5.
