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THE PEOPLE who are to raise their levels of food production or their levels of food consumption need more than the tools and skills which science has developed. They need also the motivation to make the necessary changes, sufficient capital, and an adequate system of exchange and distribution. National governments and international agencies which have any responsibility for promoting food and agriculture programs need to have periodic appraisals of the current and prospective situation in all parts of the world. Up-to-date and reliable information is essential to the long-range program of FAO. The steps already taken to meet emergencies and the actions contemplated for the future by FAO indicate that it will draw heavily upon the services in economics and statistics.

In considering the work needed in these fields, the Committee on Economics and Statistics has viewed the problem narrowly. Previous committees had given broad outlines of the scope of work which FAO should ultimately carry on. No attempt has been made to review those systematic statements as a whole. The Committee has rather taken for granted that FAO during its first year has had to meet urgent calls for emergency action, and that in the immediate future it will devote a large amount of effort to steps that can be taken at once to assure that the techniques of production and distribution which are now available will be used for the benefit of consumers and producers, that is, for the benefit of all people.

In thus viewing its problems and concentrating on steps that should be taken in the immediate future, the Committee is not unmindful of the broader definitions of functions which have been worked out previously. Any organization must necessarily select a small number of problems on which it can best use its limited resources. If it selects wisely, and if it keeps in view the broader setting in which the actions of the moment have their place, it can effectively serve both the long and the short run interests. The temptation before the Committee to broaden the scope of its considerations is not a small one. The variety of problems which arise in the several countries and regions of the world makes it difficult to select the few to which immediate attention should be given.

The Committee is aware of the fact that only a small portion of the world's agricultural production enters into international trade, and that in some countries the majority of the food products do not enter into trade at all. If, at this time, it seems to concentrate on that portion of the world's food which enters into trade channels, that is in recognition of the fact that it is precisely there that some of the most critical problems of the shift from war to peace occur.

The Committee's task was lightened considerably by the fact that there were available the reports of the Standing Advisory Committee on Economics and Marketing and the Standing Advisory Committee on Statistics. In the opinion of the Committee, these two reports amply demonstrate the value of bringing together small groups of experts to advise FAO. The Committee strongly recommends that FAO give careful consideration to the recommendations contained in these reports and that it continue to take advantage of the services of advisory committees. Without the careful thought which had gone into the reports of these two committees the work of this Committee would have been very much more difficult.

I. ECONOMICS AND MARKETING

The Committee has reviewed the program of work of the Division of Economics and Marketing, and also the report of the Standing Advisory Committee on Economics and Marketing. It is especially pleased to note that during the year it was possible to produce the World Food Survey and the World Food Appraisal, both of which represent distinct steps forward in providing a view of the world food situation. It shares with the members of the Division's staff the hope that work of this type can be continued, and that the recognized needs for more refined data may be met.

It is the recommendation of this Committee that a Standing Advisory Committee on Economies and Marketing be continued and that its services be fully utilized in the programming and conduct of FAO's work in these fields. The first report of that committee was necessarily limited in scope. The suggestions made below are partly in the nature of amplification and supplementation of that report.

RECOMMENDATIONS AND PROPOSALS

The World Food Survey utilizes a set of nutritional "targets" which vary among different regions of the world, largely in relation to present nutritional levels. While this is useful in assessing the current situation it is doubtful if there is any scientific basis for such differences. In evaluating the long-term problems with which FAO is intended to deal, it will, however, be necessary to use another approach which assumes an optimum nutritional standard in all parts of the world, and evaluates the world's production potentialities with respect to requirements so determined. In doing this it is important that attention be given to the balance and quality of diets as well as to the caloric content. Experience indicates that the countries with low calorie diets also have diets which lack the necessary variety, and that therefore those diets are even more inadequate than is indicated by a statement of caloric content.

The Committee recommends that FAO:

A considerable portion of farmers' incomes over much of the world is derived from the production and sale of animal and vagatable fibers, principally wool and cotton. Some of the most difficult economic problems occur in connection with these fibers. Studies relating to requirements and possible new markets for fibers are in a much less well developed stage than is the case for the food commodities. From the standpoint of these requirements, further studies need to be made of the consumption of apparel and household fibers by individuals in all parts of the world, by income groups and by countries; the consumption of industrial fibers by countries in various stages of industrial development; factors which influence these requirements; and changes in the requirements which may be anticipated. Investigations are needed of the relation of clothing and household fabrics to health and comfort in various areas of the world. From these studies recommendations can be developed as to basic and minimum requirements to support an acceptable standard of living.

The Committee recommends that FAO:

Credit for agricultural reconstruction and development in the different countries requires carefully analyzed programs in which the alternative types of uses are weighed against each other and given priority according to their effectiveness in promoting the objectives of FAO. The Organization should therefore periodically review and give perspective to the world's needs for agricultural credit. It should be able to work in close cooperation with governments in formulating their own programs, and should put itself in position to work closely with the International Bank for Reconstruction and Development in providing bases for the evaluation of proposals for agricultural development.

The Committee recommends that FAO:

The Committee has not discussed the proposals for a world food board inasmuch as these are outside its terms of reference. It notes, however, that a large portion of the report of the Standing Advisory Committee on Economics and Marketing is devoted to an analysis of some of the economic problems raised by these proposals. Because the statement included in the report of the Standing Advisory Committee on Economics and Marketing is highly condensed, it would appear desirable that arrangements be made for a more complete presentation of these considerations before the Preparatory Commission.

The Committee is in agreement with the recommendation of the Standing Advisory Committee that FAO undertake the publication of periodic reviews dealing with economic and social problems of agriculture and nutrition, preferably on a monthly basis. It recommends:

In many regions of the world no adequate facilities exist for the marketing and processing of farm products. It may be essential in some areas for producers to develop their own facilities, including packing, handling. and Processing agencies. The Committee would point out that one significant form of international collaboration which FAO can promote is providing trained personnel in the field of agricultural cooperation for the introduction, expansion, and development of cooperatives in various countries of the world. Leadership in the cooperative movement on an international scale could contribute materially toward the improvement of agricultural production and toward rural welfare. Such work should be done in cooperation with the International Labour Office and other interested international agencies.

The Committee recommends that FAO:

In considering long-range food problems it is necessary also to deal with the rates of population growth in relation to the current levels of agricultural production and the rates at which they can be expanded in various parts of the world. The policies of the several countries in relation to increasing or decreasing rates of population growth and to the encouragement or discouragement of international migration assume primary importance. Since these problems are also of primary concern to other international agencies, collaboration in their study appears to be desirable.

Equally important is a cognate survey of the difficulties and potentialities of the pioneer regions of the earth for agricultural colonization and settlement. For example, rice cultivation can be extended much farther southward from the equatorial belt, and since the world food shortage is in considerable measure one of rice, an investigation of the geographical and economic limits of the extension of the rice belt is desirable.

The role of industrialization in the less advanced countries for establishing a proper balance between agriculture and industry and for maximizing the national income, leisure, and welfare is widely recognized and has been commented upon in reports of the Hot Springs and the Quebec conferences. The Standing Advisory Committee on Economics and Marketing has stressed the special importance of rural industrialization in this connection and suggests the exploration of a number of problems relating thereto for the alleviation of population pressure and improvement of national income, especially of the industrially undeveloped regions.

In some countries the competition between livestock and human populations for the available agricultural products is of such a nature that serious consideration should be given to the possibilities of reducing the livestock population in order to provide larger quantities of original calories for the human population.

The raising of the levels of living of rural populations calls for the improvement of agriculture, rural industrialization, large-scale public works, and social and educational services in the countryside, and the raising of the levels of living of many different races and peoples. This in turn requires a reorientation of world agriculture and of world trade in which food will be treated as an essential of life rather than primarily as merchandise.

The Committee recommends that FAO:

The Committee endorses the recommendations of the Standing Advisory Committee on Economics and Marketing relating to the importance of industrial development in rural areas, and urges that FAO give careful study to these matters from the viewpoint of building up a balanced economy in a country and of avoiding the social evils of concentrated industrialization.

The fields of urgent work outlined for the Division of Economics and Marketing will re quire manpower than is now available within FAO. Moreover, it is the opinion of the Committee that the work in Economics and Marketing will develop most effectively if it is centralized in one unit. Where it seems desirable to do some economics work in other units, such work should be closely correlated with that of the Economics Division under the general super vision of the Chief Economist.

The Committee recommends:

The improvement of rural welfare is one of the major objectives of FAO and should be given early attention, along with the improvement of consumption and production levels. The Committee feels, however, that this subject has not received adequate attention at this conference although it has been on the agenda of a number of Committees. Work done in this field should be in cooperation with the Economic and Social Council, the World Health Organization, the International Labour Organisation and, other international organizations.

The Committee recommends:

II. STATISTICS

There have been a number of significant developments during the past year relating to the statistical work of FAO. The establishment of the International Emergency Food Council to deal with problems of food allocation and distribution during the present period of world shortages of food has greatly increased the scope of the work to be done. It has also increased the urgency of obtaining necessary statistics on national production and consumption as well as on food requirements to meet health standards The recently promulgated resolutions of the General Assembly of the International Institute of Agriculture [see Appendix], which transferred the functions of that agency to FAO call for immediate action to develop FAO's statistical services on the basis of the many years of significant work done at Rome. The initiation of the statistical work of the Economic and Social Council of the United Nations offers the prospect for early development of collateral statistics which FAO will need but would not normally expect to collect. There is the prospect of valuable assistance in the statistical work of the countries of the American continents through the activities of the Inter-American Statistical Institute.

During this time also it has been possible for national statistical services to recover to some extent from the requirements and limitations imposed in time of war.

The Committee deems it to be of the utmost importance that the statistical staff of FAO be developed at the earliest possible date. The Organization increasingly needs the services which such a unit can provide. The establishment of FAO's statistical unit should assist also in reducing the burden on governments which now results from the numerous requests for information concerning food and agriculture.

To effect economy in administration and to promote comparability of data, the statistical services of FAO relating to agriculture, food, fisheries, and forestry should be concentrated in or coordinated by a strong statistical unit.

The Committee is in agreement with the Standing Advisory Committee on Statistics that the major problems to which FAO should give attention during the coming year are:

Closely related to these are the problems involved in establishing the statistical publications of FAO, promoting the general improvement of agricultural statistical services, and establishing working relationships with other specialized international agencies and with the United Nations, as well as the problems involved in establishing relationships with such regional groups as the Inter-American Statistical Institute.

RECOMMENDATIONS AND PROPOSALS

The Committee is in full accord with the proposals of the Standing Advisory Committee on Statistics with regard to the program for merging the statistical activities of the International Institute of Agriculture with those of FAO. It wishes to give special emphasis to two recommendations relating to that work:

The Committee urges that the 1950 World Census of Agriculture be given the greatest possible emphasis in the statistical program of FAO. This project will assist materially in meeting the needs of governments and their people for information about their own agriculture in the postwar period. In addition it is necessary to FAO for its short-term and long-term planning. Moreover, it will furnish a basis for the initiation of current statistical programs in the less developed countries.

The Committee notes that careful consideration has been given to the question of the 1950 Census. It was proposed for study at the First Session of the Conference, and was examined by the informal meeting of statistical experts held in London in April last, and has again been discussed in the report of the Standing Advisory Committee on Statistics. This last report not only strongly supports the project but also lays down the general plans of a program for carrying it out.

In view of this, it seems unnecessary to elaborate details of the proposed program

The Committee recommends:

In this connection the Committee also takes cognizance of the fact that other censuses may be taken in many of the countries at or about the same time and urges that where feasible there be maximum coordination and integration of the agricultural censuses with those of population, industry, labor force, and others.

The Committee recognizes that some countries may encounter great difficulties in taking a 1950 Census of Agriculture. In preparing schedules of inquiry for the proposed world census, it is particularly important to take note of the administrative and practical difficulties involved in some countries. Great care must be taken, therefore, to develop minimum schedules with a view to the feasibility of obtaining the desired information in the majority of the countries of the world. As a final resort it may be desirable to investigate the possibility of using the sample method for getting data which it may be financially or administratively difficult to get by complete enumeration.

The statistical publications outlined by the Standing Advisory Committee will provide one of the important services which FAO can render. There is a wide demand for the information contained in them, not only by governments and international organizations, but by private citizens and research workers. It is vitally important, therefore, that the Statistical Yearbook and the monthly statistical publications should be subject to critical appraisals in order to attain the highest possible degree of usefulness.

The Committee recommends:

The Committee is of the opinion that the development of current reports from member countries requires immediate attention.

The Committee recommends that FAO:

The attention of the Committee has been called to the fact that one of the major statistical publications issued by FAO. does not conform to the recommendations made by the Quebec Conference with respect to the units of measure to be used. It, therefore, calls attention again to that recommendation namely:

One of the basic objectives of FAO is improvement in the levels of living of the rural peoples in all parts of the world. To carry on this work it will be necessary to have statistical data concerning present levels of living and periodic reports recording progress made in the different aspects of rural life.

The Committee recommends:

It is a matter of primary importance that there be a continued advance in the reliability and comparability of the statistics of production, trade, and consumption of food and other agricultural products. FAO can play an important role in bringing about such an advance.

The Committee recommends that FAO:

Duplication already exists among international agencies in requesting information from governments with respect to agricultural data.

The Committee recommends that FAO:

The Committee appreciates the work done by the Standing Advisory Committee on Statistics. It is also cognizant of the difficulty of obtaining a rounded geographical and subject-matter representation on the Standing Advisory Committee in the short time that was available.

The Committee recommends:

The Committee has considered the proposed budget of FAO in respect to the allocation of funds for the work in the field of statistics. ID view of the importance of statistical information to FAO, the proposed budget does not appear to be adequate to meet the basic requirements of the program outlined, including that contained in the Report of the First Session of the Conference, and also that of the subsequent reports of the informal meeting in London in April and the report of the Standing Advisory Committee.

The Committee is impressed with the fact that, taking into account the changes in price levels since before the war, the amounts now budgeted for statistical work in FAO are not much different from those previously available for the very much more restricted statistical program of the IIA, which did not include fishery statistics and included little on nutrition.

The Committee recommends:

The basic character of statistical data for the work of FAO was emphasized in the report of the Hot Springs conference and on four occasions Subsequently. Proper measurement of progress in achieving the objectives of FAO must rest upon a firm statistical accounting.

The Committee recommends:

The Committee on FAO Missions has considered the documents referred to it and reports as follows:

Any world food plan devised to carry out the objectives of the proposals for a world food board, can be permanently successful only if nations succeed in building up both their power to produce and their power to consume-only if they learn how to produce more in agriculture and in industry and put that knowledge to effective use. If FAO is to aid nations to reach these ends, it must move from general resolutions and advisory committees, no matter how learned, to services rendered individual countries on the spot, in helping them carry these objectives into action under their own conditions. In achieving this transition from the general to the specific FAO Missions to individual countries can play a large part. The Committee therefore believes that Missions of this type should play a large and increasing rote in the activities of FAO, and that both member nations and the FAO staff should give increased attention to this device as a practical means to encourage national action and development.

Under its Constitution, FAO can provide many different kinds of technical help to member countries. Much of this help will involve field trips or work in the country concerned. The Committee on Missions believes the term "FAO Mission" should be used only when a team of several experts is sent to a country or region to perform a specific service of substantial magnitude, and that the term "technical service" should be used for less substantial undertakings.

Missions may be comprehensive or limited in character. A comprehensive Mission should consider all social and economic questions, as well as technical ones, which bear on the problems it is investigating. The Mission for Greece. which considered a wide range of economic and technical problems concerned with the rehabilitation and future development of Greek agriculture and related industries, is an example of this type. Specialized missions might deal with more limited problems, such as the establishment or reorganization of educational and extension activities, programs for reorientation or expansion of output, or appraisal and improvement of nutritional levels. To deserve the name, a Mission should be composed of a substantial group of recognized experts, and should spend sufficient time on the project to arrive at definitive conclusions and recommendations.

In organizing Missions and similar services, FAO should endeavor to have as broad an international representation as practicable among the experts participating.

Missions should represent joint undertakings between FAO and the countries concerned, with the country doing all that it can to help examine the same problem as that which the Mission is studying. Countries requesting Missions should therefore indicate as clearly as possible the type of mission desired and the problems which require attention, and should be prepared to cooperate with the Mission, both in making information and facilities available and in providing the services and cooperation of their own technical personnel, interpreters, and clerical staff. The Mission for Greece was an excellent example of such cooperation, with the fullest aid provided both by the Greek Government and the UNRRA Greece Mission.

A full Mission involves three stages-advance preparation, actual field-work and report writing, and follow-up. It may often be desirable for a field representative of FAO to make a preliminary visit to work out the desired type of mission and terms of reference, and to help initiate other advance preparation. Countries requesting Missions should consider in advance their ability to carry out the prospective recommendations and be prepared to cooperate with FAO in efforts to carry them into action.

Reports of Missions should not normally be published until the interested government and any international agency concerned have had an opportunity to formulate their views.

RECOMMENDATIONS AND PROPOSALS

With reference to the specific proposals referred to it for consideration, the Committee reached conclusions as follows:

The Committee on FAO Missions notes with approval the prompt action taken by FAO in responding to the request of the Greek Government to send a Mission to Greece to study that country's agriculture, forestry, fisheries, and related industries with a view to making recommendations for their comprehensive long-term development. In the Committee's view such services on the part of FAO are among the most important that it can perform.

It is recommended:

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