Programme of Work and Budget · Programme of Work and Budget 2006-07 v Director-General's Introduction I have the honour to submit to the Conference proposals for the Programme of

The Director-General’s

Programmeof Workand Budget

Food and Agriculture Organizationof the United NationsRome, 2005

C 2005/3August 2005Thirty-third Session of the Conference19 - 26 November 2005

2006-07

Programme of Work and Budget 2006-07 iii

Table of Contents

DIRECTOR-GENERAL'S INTRODUCTION............................................................V

CONTEXT FOR A STREAMLINED PROGRAMME OF WORK AND BUDGET.......1 Application of Results Based Management and Complementarity among Documents.......1 Risk Assessment .................................................................................................................2 Overview of Resource Scenarios .......................................................................................6

STRATEGIC CONSIDERATIONS ...........................................................................7 Millennium Development Goals ........................................................................................7 Follow up to the Independent Evaluation of Decentralization...........................................8 Regional Dimensions .........................................................................................................8 Adherence to FAO's Strategic Framework .........................................................................9 Enhancing Inter-disciplinarity ..........................................................................................11 Partnerships .....................................................................................................................13 Communicating FAO's Messages .....................................................................................14 Human Resources Action Plan.........................................................................................15 Extra-budgetary Resources...............................................................................................16 Efficiencies and Productivity Improvements ....................................................................19

FINANCIAL FRAMEWORK..................................................................................25 Proposal for an FAO Security Expenditure Facility and Related Draft Conference Resolution........................................................................................................................25 Draft Resolution for Adoption by the Conference ...........................................................28 Capital Budgeting ............................................................................................................29 Overview of Cost Increases .............................................................................................30 Financial Analysis of the General and Related Funds and Related Draft Conference Resolution on Miscellaneous Income..............................................................................34 Draft Resolution for Adoption by Conference .................................................................37 Funding of the Budget......................................................................................................38 Draft Resolution for Adoption by the Conference ...........................................................39

OVERVIEW OF PROPOSALS...............................................................................40 Approach to Priority Setting ............................................................................................40 Definition and Import of Resource Scenarios ..................................................................41 Overview of Total Resource Availability..........................................................................49 Summary Tables...............................................................................................................51

ANNEX I: PROGRAMME NARRATIVES CHAPTER 1: GENERAL POLICY AND DIRECTION ........................................................................................................57 Major Programme 1.1: Governing Bodies........................................................................57 Major Programme 1.2: Policy, Direction and Planning....................................................58 Major Programme 1.3: External Coordination and Liaison ..............................................60

CHAPTER 2: TECHNICAL AND ECONOMIC PROGRAMMES.............................62 Major Programme 2.1: Agricultural Production and Support Systems .............................62 Major Programme 2.2: Food and Agriculture Policy and Development...........................70 Major Programme 2.3: Fisheries ......................................................................................77 Major Programme 2.4: Forestry .......................................................................................81

iv Programme of Work and Budget 2006-07

Major Programme 2.5: Contributions to Sustainable Development and Special Programme Thrusts..........................................................................................................85

CHAPTER 3: COOPERATION AND PARTNERSHIPS...........................................91 Major Programme 3.1: Policy Assistance .........................................................................91 Major Programme 3.2: Support to Investment.................................................................94 Major Programme 3.3: Field Operations..........................................................................95 Major Programme 3.4: FAO Representatives ...................................................................97 Major Programme 3.5: Cooperation with External Partners ............................................98 Major Programme 3.9: Programme Management ..........................................................100

CHAPTER 4: TECHNICAL COOPERATION PROGRAMME ...............................101

CHAPTER 5: SUPPORT SERVICES .....................................................................104 Major Programme 5.1: Information and Publications Support.......................................104 Major Programme 5.2: Administration ..........................................................................105

CHAPTER 6: COMMON SERVICES ...................................................................108

CHAPTER 7: CONTINGENCIES ........................................................................110

CHAPTER 8: CAPITAL BUDGETING.................................................................111

CHAPTER 9: SECURITY EXPENDITURE ............................................................114 Major Programme 9.1: Headquarters Security...............................................................114 Major Programme 9.2: Field Security ............................................................................114

CHAPTER 10: TRANSFER TO TAX EQUALIZATION FUND ..............................116

ANNEX II: REGIONAL DIMENSIONS ...............................................................117 Africa.............................................................................................................................118 Asia and Pacific .............................................................................................................120 Europe ...........................................................................................................................123 Latin America / Caribbean.............................................................................................126 Near East .......................................................................................................................129

ANNEX III: DETAILED PROGRAMME BUDGET TABLES...................................133

ACRONYMS......................................................................................................147

Programme of Work and Budget 2006-07 v

Director-General's Introduction I have the honour to submit to the Conference proposals for the Programme of Work and Budget (PWB) 2006-07. These were developed in the first instance from the Medium Term Plan (MTP) 2006-11, which was endorsed by the Council in November 2004. They also aim to respond to fast evolving contexts and to the collective guidance on programme priorities, budget levels, content and format of the PWB received from the Programme and Finance Committees and the Council during their deliberations of the Summary Programme of Work and Budget (SPWB) 2006-07. The advice from the Technical Committees has also been reflected, which was not possible to do in a comprehensive manner in the SPWB.

Following the general principles of avoiding repetition of information in various documents, greater use of the FAO Web site and improved focus, this PWB satisfies the desire of the governing bodies for a considerably shorter document than its predecessors. I welcome the initiation of a broader discussion in the Committees, which was supported by the June Council, to go beyond the question of document length and initiate a dialogue to streamline FAO’s overall programme budget process. The Secretariat is very committed to supporting this renewed effort, to achieve the common goal of rationalising FAO’s planning documents and better linking budget decisions with the formulation of the corresponding programme of work.

Some FAO processes are virtually unique within the United Nations system, including the presentation of detailed resource estimates in the rolling six-year MTP, the preparation of, and extensive discussion on the SPWB as an analytical preview of the PWB, and the seemingly entrenched practice of preparing two or more budget scenarios in the PWB. In fact, we have now an unprecedented situation of no less than four scenarios having been requested by the last Council. The governing bodies may wish to examine whether these onerous administrative practices facilitate a rational matching of the demands Members place upon the Organization with the resources made available through the budgetary Appropriation.

This full PWB elaborates on the three scenarios already presented in the Summary i.e. the zero real growth (ZRG) scenario, which maintains purchasing power by providing for estimated cost increases and establishes the baseline for the other scenarios; the real growth (RG) proposal of approximately 2.5% per year, as a modest collective investment to implement a programme of work that is more in tune with Members’ stated demands on the Organization; and a zero nominal growth (ZNG) scenario, which entails a real reduction of 5.7% including

a US$ 4 million cut in the Technical Cooperation Programme (TCP).

A scenario of higher real growth (HRG) of 9.25% over the biennium was requested by many Members in the Committees and the Council following their review of the SPWB, to regain some of the ground lost as the result of a prolonged period of budgetary austerity and fulfil the Organization’s valuable roles at the service of the membership. It was not possible to finalise work on this scenario for inclusion in a single PWB document for the September sessions of the Programme and Finance Committees which are the first inter-governmental instances mandated to review the full PWB. Hence, the HRG scenario is transmitted in a separate Supplement to the PWB.

In applying the principle of maintaining purchasing power under ZRG, I have acted on the wish expressed by many Members that the escalating costs of security, over which we have no control other than just their forced absorption, should not be at the expense of the substantive work of the Organization. FAO has been confronted with an exceptional surge in the cost of providing security and protection of its personnel and property in the aftermath of the events of 11 September 2001. The related increases in expenditures since the PWB 2002-03 was prepared have reached US$ 10.6 million on a biennial basis. To maintain purchasing power, the ZRG scenario requires separate provision for this increase in costs, as it would not be logical to characterise a scenario as ZRG if it includes de facto net reductions in FAO’s programmes. Providing a safe environment requires adequate funding from Members and I trust that the membership will find an equitable way of meeting the extraordinary costs of security, as is the case in some other Organizations of the UN system.

The full PWB maintains emphasis on the assessment of risks and opportunities. In addressing the main risks to budgetary, financial and operational performance in 2006-07, I continue to propose practical solutions to the membership. One of these is to modify the treatment of Miscellaneous Income in order to fully fund the budgetary Appropriation until such time as the Organization returns to a stronger financial position. The creation of a new budgetary chapter on Security Expenditure, which has received unanimous support from the Finance Committee and Council, and the operation for the first time of the Capital Expenditure Facility approved by the last Conference, will also improve financial management. Whilst unrelated to the Programme of Work of the next biennium, an important aspect is also the needed support from the Conference to adequately fund the amortization of the After-service Medical Coverage (ASMC) liability.

vi Programme of Work and Budget 2006-07

I also continue to give due attention to setting challenging but attainable efficiency targets as a customary, ongoing management function. Current initiatives include human resource management processes, identification of outsourcing and off-shoring opportunities, use of new publications, printing and distribution technologies, streamlining administrative activities, savings in governance and more comprehensive cost recovery for services rendered. Economies in administrative and support services, whilst always desirable, must be implemented diligently. Indeed, the Finance Committee has cautioned that internal financial controls should not be weakened at any budget level and that administrative information systems are a fundamental part of an effective organization which should be completed regardless of the budget level. FAO has already implemented a cumulative US$ 120 million per biennium of efficiency savings, if compared with 1994. Several members of the Finance Committee have acknowledged the difficulties in achieving further savings, and the Programme Committee has requested at its May 2005 session that efficiency savings targets for 2006-07 should be realistic. A renewed framework for realising efficiency and productivity gains throughout the house will be developed in 2006-07, and continued emphasis will be given to streamlining processes and operations.

Important concerns as they are, managing financial risks, exploring new efficiency gains and meeting heightened security costs are only part of the broad strategic considerations which have presided over the formulation of the PWB proposals. Indeed, evolving external and internal environments offer much opportunity to improve the Organization’s relevance and effectiveness. At the time of writing, the G8 Summit has given a clear and encouraging signal to all those involved in the fight against poverty and hunger and many donor countries have pledged to substantially increase their international aid in the coming years. FAO’s contribution to the Millennium Development Goals, particularly at country, subregional and regional level, in partnership with others and in harmony with UN reform initiatives, needs to receive the utmost attention. The Summit to be held in New York in September 2005 to discuss inter alia the implementation of the Millennium Development Goals will most certainly reinforce this effort. Key facets of this are being addressed in conjunction with the follow-up to the Independent Evaluation of Decentralization. A major review of the Technical Cooperation Programme, as well as reflection of FAO’s role as a knowledge Organization and measures to improve inter-disciplinary actions also provide evident opportunities for revitalisation. Besides the PWB, the Conference will debate the independent external evaluation of FAO to be carried out in the next biennium.

This rich context is addressed at various places in the document and more particularly in the Supplement where I have used the prospect of additional resources to submit a set of extensive programmatic and organizational reform proposals.

As the PWB is the lifeblood of the Organization, as a minimum, adequate resources must be factored to give justice to well recognised substantive priorities. Members will no doubt be able to appreciate the efforts made to ensure adequate implementation of, or follow-up to the major international agreements and instruments developed under the aegis of FAO. Notable among these are the International Treaty on Plant Genetic Resources for Food and Agriculture, the International Plant Protection Convention and Codex Alimentarius. The Code of Conduct for Responsible Fisheries and associated International Plans of Action, as well as the expected lead role of FAO in the global dialogue and initiatives on forests, also receive priority attention.

It is equally important to preserve to the maximum extent possible the irreplaceable contributions the Organization makes to the fight against and control of transboundary plant pests and animal diseases, including the desert locust and avian influenza. To match the endeavours of Members taking place in particular as part of NEPAD in Africa and in the context of similarly important cooperation and integration initiatives in other regions, policy advisory services are given a boost under the ZRG scenario by reinstating several posts lost in decentralized structures as the result of the needed revision of the PWB of the current biennium. Policy advice and the Organization’s work in establishing international agreements go hand in hand with capacity-building and direct field action which has also to be preserved, including the TCP and SPFS.

There are differences in the type of services our global membership of developed and developing countries expect from FAO, and even within groups. This is understandable in a multilateral Organization which addresses a most basic human need of reducing hunger and malnutrition. I must be sensitive to the expressed wishes of the neediest, as well as the most advanced.

The fact is, however, that the demand for FAO services is increasing and now far exceeds the funding made available by Members, which has declined by 24% in real terms over the past dozen years. The US$ 51.2 million or 6.4% real reduction in the present biennium entailed a more severe cut than the absorption of cost increases and has left several areas of the Organization’s programme of work seriously under-funded.

I am convinced that the set of reforms presented in the Supplement to the PWB, if espoused by the membership, will give a new impetus to international work in food and agriculture. Although, I do not wish to prejudge the final

Programme of Work and Budget 2006-07 vii

decision of the Conference on the budget level, it is clear that progress along the road of transformation cannot be artificially divorced from the total resource envelope available to this institution.

Ultimately, the Conference will need to act in the context of both the compelling challenges and opportunities for the Organization, and on the basis of the proposals in the PWB. I trust that Members will want FAO to be effective and well equipped in the next biennium. I must

reiterate my firm belief that timely reforms combined with a clear reversal of the prolonged period of austerity is the only viable way to do this.

Jacques Diouf

Director General

Programme of Work and Budget 2006-07 1

CONTEXT FOR A STREAMLINED PROGRAMME OF WORK AND BUDGET

Application of Results Based Management and Complementarity among Documents

Relationship to the Medium Term Plan (MTP) 2006-11 1. This shorter and more focused full Programme of Work and Budget (PWB) 2006-07 is intended to be an important step towards a streamlined programme budget process that is being guided by the governing bodies.

2. Following the substantial experience of planning under results-based principles, the content of the two principal planning documents, the MTP 2006-11 and this PWB 2006-07, now seeks to respond to the wishes of the governing bodies to eliminate overlap and sharpen the focus of the PWB.

3. In the first instance, to reduce overlap and duplication, the complementarity between the PWB and the MTP is more explicitly recognised. With the advent of the new Programme Planning Model endorsed by the Conference and the related suite of documents, the MTP is acknowledged as the main vehicle for programme formulation and prioritisation. Building on the contents of the MTP, the PWB sets out, in accordance with results-based principles, the biennial “business plan” of the Organization, including the main substantive thrusts and financial requirements. More detailed information can be found on FAO’s Internet Web site: www.fao.org/pbe (e.g. planned biennial outputs, scheduled sessions, information on posts).

Relationship to the Summary PWB 4. The full PWB expands on the analytical material provided in the Summary (which it is recalled has also been substantially redesigned and shortened). Hence, the corporate Risk Assessment has been updated and further elaborated below. Also, responding to requests from the Programme and Finance Committees, the internal mechanisms for priority-setting have been more fully described.

Features of the PWB planning process 5. Biennial outputs and programme entity resource allocations were defined based on a series of considerations. Firstly, managers were asked to review the strategic objectives that each entity was designed to address, along with the related rationale, objective, outcomes and major outputs. In addition, contributions identified during the MTP process to regional priorities, PAIAs and Gender Plan of Action were also taken into account. Finally, the guidance received from governing bodies (including Technical Committees, Programme and Finance Committees, and Regional Conferences) subsequent to MTP and SPWB preparation were reflected in planned activities. For ease of reference, a summary of the current planning model is provided under Adherence to FAO’s Strategic Framework.

6. In order to support this effort, further enhancements were made to the supportive planning system PIRES1 to provide units with more comprehensive and multi-dimensional background information (e.g. on regional priorities, PAIAs, MTP data, etc.) and new decision-support tools (e.g. user-defined reports). This was supported by training in results-based concepts as well as in using the system itself. Also, in line with the need to better support staff in decentralized locations as noted in the Independent Evaluation of FAO’s Decentralization, a particular effort was made to assist Regional, Subregional and Liaison Offices in their planning efforts.

1 Programme Planning, Implementation Reporting and Evaluation System

2 Programme of Work and Budget 2006-07

Other improvements 7. The PWB 2006-07 represents a milestone in the treatment of non-technical and technical cooperation programmes, for which outputs and required resources have been defined against the new entities introduced in the MTP 2006-11, based on the application of similar results-based principles to these areas. This includes the identification of performance improvement measures, including potential efficiency savings. In addition to providing a platform for continuous improvements and further efficiencies in the non-technical programmes, the adoption of results-based principles will also facilitate coordinated management by respective lead units of the Strategies to Address Cross-organizational Issues in the Strategic Framework.

8. Another feature is the continued emphasis placed on evaluation of results. In this connection, it is recalled that an auto-evaluation regime was initiated in 2004-05, supported largely by voluntary contributions. The Programme Committee endorsed the institutionalisation of auto-evaluation, confirming its importance as an essential element in the FAO results based management system and a valuable complement to independent evaluation. As the aforementioned extra-budgetary funding will run out at the end of 2005, a new entity 122P4: Auto-evaluation, is introduced to permit the distribution of budgeted resources to units performing evaluations in 2006-07.

9. The extension of the planning model to non-technical and technical cooperation programmes will facilitate application of the same monitoring and assessment process undertaken in the technical programmes. Systematic monitoring and periodic review by programme managers of programme implementation results, including auto-evaluation will promote organizational learning and facilitate in-course correction where needed.

Risk Assessment

10. Members have previously welcomed information on major risks to the achievement of the Programme of Work. In its deliberations on the SPWB 2006-07, the Finance Committee considered the enhanced risk assessment framework as a sound basis for identifying internal and external factors that would affect financial, budgetary and operational performance and welcomed the manner in which this analysis was related to financial, budgetary and programmatic aspects of the biennial plan. It requested the Secretariat to pursue this methodology in the full PWB2. Likewise, the Programme Committee appreciated the section on Risk Assessment, while stressing that the considerations raised there covered both opportunities and risks3.

11. This process has improved risk response decisions by management and governing bodies, for example in addressing exchange rate risks through the application of split assessment to the Organization’s assessed contributions. It has also contributed to a more open governance process, for example by anticipating the need for funding the After-service Medical Coverage liability and promoting the ensuing discussions in the governing bodies.

12. Furthermore, improvements continue to be made in the requisite financial management and accountability reporting to the governing bodies; for example, regular reports on financial highlights, budgetary performance, human resources matters and programme implementation reporting. Oversight, compliance and accountability processes include the work of the external auditors, local auditors, internal audit and inspection and the Joint Inspection Unit, as well as the auto-evaluation and independent evaluation process, which are themselves essentially based on a risk assessment of FAO’s operations. These mechanisms contribute to an effective internal and external monitoring of performance, including a critical examination of any departure from expected results.

13. Risk management is a pre-requisite for effective results based management. To ensure that results which meet organizational objectives are achieved, managers must be aware of risks and

2 CL 128/13, para. 57 3 CL 128/11, para. 17


opportunities. The increasing application of risk assessment to management at all levels of the Organization will assist in maximising the benefit to stakeholders from the resources made available to implement the 2006-07 Programme of Work.

14. “Risks” to conducting the Organization’s work stem from both internal and external factors, including evolving demands, expectations and institutional relationships. They impact upon the effective and efficient achievement of the Programme of Work through their influence on budgetary, financial and operational performance. This section anticipates some of the risks and opportunities that the Organization faces in these areas and, where appropriate, the steps that are proposed to mitigate their impact through 2007. It also highlights areas where effective risk management may lead to new opportunities.

Evolving demands and institutional relationships 15. The Independent Evaluation of FAO’s Decentralization provided a number of recommendations aimed at better responding to the needs of Members without increasing costs. The Organization will progressively seize those opportunities that it can act upon (e.g. streamlining of administrative processes) within its approved budget.

16. Part of the answer also lies in enhancing FAO's relationship with partners as further outlined in the section on Partnerships. There is a parallel need to address the Organization’s support to the implementation of the Millennium Development Goals (MDGs) and strengthen participation in UN country level processes, which calls for careful scrutiny of FAO’s future positioning in conjunction with the reform effort under way in the UN system. The proposed operational framework for the Technical Cooperation Programme with, for example, greater emphasis on integration with national priority frameworks and the MDGs, also provides an opportunity for the governing bodies to support the Secretariat in improving the effectiveness of FAO’s work.

17. New opportunities for partnerships will also arise as donor countries and funding agencies are renewing their commitments to achieve the MDGs, as evidenced for example by the European Union’s recent commitment to double aid by 2010. The Report of the Commission for Africa also presents a compelling road map on how to support the changes needed to reduce poverty. Major financial institutions intend to enhance their support to the agricultural sector (e.g. the World Bank). The view that agriculture contributes in a significant way to economic growth and prosperity is achieving greater recognition, providing an opportunity for FAO to play a more prominent role at national and international levels. Funding for emergency operations through FAO has also been significant.

18. While this promising context could be conducive to the expansion of extra-budgetary programmes, as further examined in the section on Extra-budgetary Resources, it will be important to guard against excessive dependency on such resources. Members have consistently emphasised that the core activities of the Organization should be adequately funded under the Regular Budget and not exposed to the fluctuating levels and possible constraints linked to voluntary funding.

19. Therefore, flexibility in the methods for implementing the 2006-07 Programme of Work would be required, so that new thrusts, improvements and efficiencies can be incorporated as soon as practicable.

Budgetary risk management 20. FAO’s budgetary process encompasses a significant element of risk. The budgetary Appropriation for the biennium is not known until November or December of the preceding year, with no lead time for programme adjustments to be implemented if required due to an approved budget level different from that which is proposed. Unplanned or severe budget reductions in real terms, such as those for 2004-05, have to be largely managed through opportunistic savings. Such measures include, for example, a freeze on vacant posts or termination of contracts on agreed conditions - usually with insufficient resources available even for this purpose.

21. A recent Joint Inspection Unit (JIU) report on the implementation of results based management in UN organizations recommended that member states: “should focus on ... providing


resources commensurate with the approved programmes, and/or giving clear guidance on programme and resource allocation priorities where sufficient resources cannot be provided4.” The proposals under various resource assumptions are presented with less focus on budgetary detail and more on programmatic results. The narratives in Annex I, as well as the sections below entitled Approach to Priority Setting and Definition and Import of Resource Scenarios endeavour to link resource levels to programmatic priorities and results. The Secretariat will continue to give careful attention to such linkages in the future.

22. The Secretariat continues to pursue efficiencies and productivity improvements, and related measures are described in a section with the same title below. However, the Organization’s tendency to set over-ambitious efficiency targets, as was the case in the PWB 2002-03, is an area of concern. The ensuing over-optimistic projections of efficiency savings in the PWB result in an under-budgeting of programmes during the biennial implementation cycle, with adverse consequences on the achievement of planned objectives. This risk must be managed through achieving a better balance between the need for establishing challenging efficiency targets on the one hand, and a realistic assessment of the timing and degree of efficiency savings on the other. Tentative and speculative analysis on the benefits to be achieved from complex future process changes will be scrutinised with particular caution.

23. Much of the continuing budget reduction which the Organization has faced over the last 10 years, has been absorbed by the achievement of substantial efficiency savings. However, as it becomes increasingly difficult to find new ways of reducing costs while maintaining output, the need to reduce programmes in line with the priorities of the membership is heightened. The internal methodology, which exists and is applied, attempts to avoid fragmentation of programmes. There are, however, growing areas of the Programme of Work that are under-funded if the demand for services is to be fully taken into consideration. Both the Secretariat and the Programme Committee, therefore, continue to seek a priority-setting methodology which recognises the respective roles of the Secretariat and the governing bodies, responds to the collective programme needs of Members and takes account of the importance of maintaining a minimum critical mass of resources for approved programmes.

24. Capital Budgeting, which will be implemented in 2006-07, as approved by the Conference in 2003, allows more systematic planning for large expenditures on assets with a useful life of more than two years. It removes the need to absorb peaks in financial requirements for capital items within a single biennium, which in the past often led to delays and budgetary transfers from substantive programmes. However, its successful functioning in 2006-07 is dependent upon adequate resources in the Capital Expenditure Facility, particularly for institutional infrastructure and information technology. For the 2006-07 biennium, it is proposed to transfer the unspent balance of the arrears made available under Conference Resolution 6/2001 to the Capital Expenditure Account. Despite the existence of an enhanced approach to planning and managing capital expenditure, the danger is that without adequate funding, essential investments will continue to be delayed, and viable investments that have already been initiated will fail to reach their full potential.

25. The system of receiving the Organization’s assessed contributions partly in US dollars and the balance in euro safeguards the Programme of Work from exchange rate risk to the extent that forecast euro requirements are matched by actual payments and assessments are paid on time. The split assessments, introduced from 2004-05, protect programme implementation only from the impact of exchange rate fluctuations of the euro against the US dollar. The system does not provide protection for the approximately 20% of the Organization’s expenditures which is incurred in other currencies. The unfavourable impact on the budget of such fluctuations was significant in 2004, on account of a weakening dollar against some currencies in locations where the Organization has a substantial decentralized presence. A report on performance of the split assessment arrangement is to be considered by the governing bodies in the latter part of 2005.

4 JIU/REP/2004/5, para. 16a


Financial risk management 26. The Secretariat actively monitors the financial health of the Organization, including a review of its equity and reserve accounts, and forecasts of expenditure and cash flow:

• steps to reduce the accumulated deficit in the General Fund, as well as proposals for earmarked funding for the After-service Medical Coverage (ASMC) liability, are essential in this regard;

• in a worst-case scenario, eventual cash deficits in 2006-07 could lead to curtailment and forced under-delivery of programmes, despite the authority to spend granted through the budgetary Appropriation. The Secretariat will continue to encourage prompt payment of assessed contributions, although the timing of such payments is in the hands of Members.

27. To safeguard internal controls, especially during a period of further streamlining of procedures and increased delegation, a robust financial controls unit in the Finance Division (AFF) will mitigate the risk of non-compliance with internal administrative and operational procedures. Accordingly, as recommended by the Finance Committee, the proposed budget for 2006-07 at ZRG includes the reinstatement of five posts in AFF which were abolished to meet the reduced budget for 2004-05.

28. An area of expenditure that is difficult to predict and can have a significant impact on the Programme of Work is staff costs. FAO’s methodology for establishing standard rates, which are used for budgetary purposes, is sophisticated and results in unique budget rates for each grade level and location. However, even with refined projection methodologies, actual costs are difficult to predict with total accuracy. A mere 1% variance between actual unit staff cost rates and the standard staff cost rates that are planned up to two-and-a-half years before the costs are incurred, amounts to a forecasting error of US$ 5.5 million. When actual staff costs are higher than the budgeted standard rates, as is the case in 2004-05, the Organization is required to reduce its programmes, products and services, to remain within the approved Appropriation. Although the Special Reserve Account (SRA) can protect the Organization’s Programme of Work against the risk of unbudgeted extra costs that may arise during a biennium, the possibility of having to replenish the SRA through special assessments effectively limits its application in practice.

Operational risk management 29. The Organization must ensure that the working environment and processes in 2006-07 will be conducive to the achievement of its desired results.

30. The staff and assets of the Organization are under greater threat than ever before, and a safe working environment cannot be taken for granted. Improving safety requires increased security at headquarters and the field. To mitigate the security risk, FAO has introduced a number of additional measures at headquarters during 2004-05, including the application of shatter-proof film to windows, installation of road blocks at the main entrances, and hiring additional guards. In the field offices, FAO is taking measures to comply with the UN field security standards. However, the Organization perceives a need for a strengthened financial management framework for this increasingly visible and unpredictable area of expenditure. In 2006-07, the introduction of a separate chapter of the budget, dedicated to security and safety of staff and assets is proposed to facilitate planning and management. This proposal is further outlined in the section below dealing with the Security Expenditure Facility.

31. Another risk comes in the form of threats facing information resources and systems. With the active participation of FAO, the UN system High-Level Committee on Management (HLCM) has recommended that every UN agency adopt a four-stage “road map” for managing information security. To initiate this process, FAO is undertaking an information risk assessment to review both the technical and non-technical aspects of information security.

32. To improve its operational processes, the Organization carefully reviews recommendations arising from other reports or studies. For example, bearing in mind the interim report of the Independent Inquiry Committee which investigated the allegations against the Oil-for-Food programme, FAO is reviewing operational modalities related to national execution.


33. The risks arising from a significant increase in FAO’s emergency work, coupled with the distinctive response needs of such operations, necessitate critical review of the related internal controls, procedural constraints, coordination and management mechanism, budgetary, financial and administrative processes and operational support. Salient policy matters, including a revision of the support cost rates for emergency operations, are to be considered by the governing bodies.

34. A modern-day knowledge institution, with a mandate to maintain itself as a centre of technical excellence, needs to continually examine and update the skill profiles of its staff. The development of the new Oracle-based Human Resources Management System (HRMS), funded from arrears, is a recognition of this challenge. The HRMS will contribute to ensuring excellence by facilitating assessment and development of skills and competencies of FAO staff. Furthermore, in developing the biennial budgets, managers are required to set aside at least 1.35% of staff costs for staff development activities. The Human Resources Action Plan endorsed by the Finance Committee is covered further below.

35. The assessment of risks and opportunities impacting upon FAO in 2006-07, summarised above, seeks to strike an optimal balance between the achievement of goals and related risks. Further information on management’s planned actions in response to the decentralization evaluation is provided below and in separate documents submitted to the governing bodies.

Overview of Resource Scenarios

36. This main PWB document describes the three scenarios of: zero real growth (ZRG), zero nominal growth (ZNG) and real growth (RG).

37. The following table provides an overview of the net Appropriation levels by chapter for these three scenarios, including the totals after cost increases. The scenarios are described in more detail in the section Definition and Import of Resource Scenarios. Annex I: Programme Narratives, Annex II: Regional Dimensions, and Annex III: Detailed Programme Budget Tables provide additional descriptive and financial information on the programme budget. The section on the Proposal for an FAO Security Facility further describes the proposal of the Director-General under the new Chapter 9: Security Expenditure, where US$ 8.8 million is drawn from various provisions for security budgeted in the PWB 2002-03 and the remaining US$ 10.6 million is funded as an exceptional security cost escalation that has been forced upon the Organization.

Overview of Resource Scenarios (US$ 000) Chapter 2004-05

Appropriation ZRG 2006-07 Appropriation

ZNG 2006-07 Appropriation

RG 2006-07 Appropriation

1 General Policy and Direction 67,355 61,570 58,558 61,970 2 Technical and Economic

Programmes 329,136 330,990 307,765 347,147

3 Cooperation and Partnerships 140,772 140,970 134,274 146,114 4 Technical Cooperation

Programme 103,027 103,084 99,066 107,184

5 Support Services 59,415 56,903 52,740 57,903 6 Common Services 48,794 41,103 37,585 41,103 7 Contingencies 600 600 600 600 8 Capital Expenditure 0 4,500 4,500 8,600 9 Security Expenditure 0 19,981 9,413 19,981 Total before Cost Increases 749,100 759,700 704,500 790,601 Cost Increases 47,729 44,600 50,124 Total with Cost Increases 749,100 807,428 749,100 840,725


STRATEGIC CONSIDERATIONS

38. FAO is presently facing an unusually broad range of challenges and opportunities which have naturally influenced the formulation of the proposals in this PWB. This section provides a brief overview of the main strategic considerations in the formulation effort.

Millennium Development Goals

39. Developments in the international arena have brought an additional perspective to doing business in the UN system in terms of follow-up to the Declaration adopted in September 2000 by the United Nations Millennium Summit, which is of particular relevance to FAO.

40. The Declaration drew upon the internationally-agreed goals which had emerged from the major summits and conferences of the 1990s, including the 1996 World Food Summit goal of reducing hunger by half by the year 2015. In the months following the Millennium Summit, a number of goals were brought together and crystallised in the set of eight Millennium Development Goals (MDGs), in order to provide an agenda for concerted action and to encourage a sense of urgency.

41. The MDGs have been generally embraced as a framework with the advantage of incorporating time-bound, measurable and achievable targets, both to help countries address a whole spectrum of development problems, and to encourage efforts by the international community to support them. In addition, the MDG initiative is expected to be a focus for United Nations system support to countries, and is thus closely linked to the ongoing process of UN system reform.

42. During the first half of 2005, the Secretariat carried out an internal review of the Organization’s response to the MDGs and to UN reform. This included a survey covering all Regular Programme entities for the technical and economic programmes shown as having resource allocations for the 2006-07 biennium in the MTP 2006-11, as well as of a sample of projects funded from extra-budgetary sources, equating to 80 percent of total delivery in 2004.

43. The survey identified direct contributions to the MDGs using the percentage of resource allocations as a proxy measure of the Organization’s efforts. Considering that the MDGs are interrelated, indirect contributions were also assessed, according to the degree of significance accorded to them by programme/project managers. For example, a direct contribution to the achievement of the goal of eradicating extreme poverty and hunger (MDG 1) could be expected to contribute indirectly to achieving many others goals. While this required a subjective judgement, the survey constituted a first attempt by the Organization to identify the kind and degree of impact which its activities should have on the achievement of MDGs.

44. In summary, while the PWB proposals continue to adhere to the policy directions in FAO’s Strategic Framework, the review confirmed the high degree of consistency with the Millennium Declaration, and found that FAO’s work is well aligned in substance to those goals to which FAO’s mandate relates. A total of 89% of FAO’s substantive programmes, funded from both the Regular Programme (78%) and extra-budgetary sources (95%), directly addresses the goals. Over half of the total effort is directed to MDG 1, which combines the reduction of poverty and the reduction of hunger. A significant proportion (about one-fifth) is directed to MDG 7 concerning environmental sustainability, with a lesser but still important proportion to MDG 8 concerning agricultural trade. There are smaller direct contributions to MDG 3 (empowering women), MDG 2 (primary education), MDG 4 (child mortality), MDG 5 (maternal health) and MDG 6 (combating diseases), but important indirect effects were generated primarily by work addressing reduction of hunger and malnutrition.


45. The distribution of Regular Programme contributions to the MDGs is illustrated in the following table:

Substantive Programmes - Distribution of Resources by MDG MDG Title MP 2.1 MP 2.2 MP 2.3 MP 2.4 MP 2.5 MP 3.1

1 (Poverty) Eradicate extreme poverty 1 (Hunger) Eradicate extreme hunger 2 Achieve universal primary education 3 Promote gender equality and empower women 4 Reduce child mortality 5 Improve maternal health 6 Combat HIV/AIDS, malaria and other diseases 7 Ensure environmental sustainability 8 Develop a global partnership for development Non MDG Legend: less than US$ 4 million US$ 4 million to US$ 8 million more than US$ 8 million

46. In considering the results of this exercise, it should be kept in mind that FAO’s mandate is much wider than assistance to countries in the achievement of the MDGs. As the UN Secretary-General has stated, the MDGs “do not in themselves represent a complete development agenda”. Nevertheless, the Organization appears well poised to contribute to eventual international initiatives to strengthen support to the implementation of the MDGs. It is also clear that the MDGs call for action by countries themselves and that the major effort to help achieve them must take place at the country level. FAO must be ready to respond with adequate technical inputs and further enhancement of its decentralization policy.

Follow up to the Independent Evaluation of Decentralization

47. The Programme and Finance Committees and subsequently the Council, at their sessions of September and November 2005 respectively, are due to address a further management response to the independent evaluation of decentralization. All of the recommendations have budgetary implications to varying degrees. The budgetary impact of actions would need to be progressively reflected during implementation based also on the feedback to be received from the Committees and the Council. To the extent possible, the present PWB proposals have sought to anticipate the need for additional resources for the country network and efforts have been made to enhance or protect the resource base for the FAORs (Major Programme 3.4). Furthermore, the Supplement to the PWB includes proposals regarding the decentralized structure in response to the recommendations of the independent evaluation.

Regional Dimensions

48. A long standing principle is that the Programme of Work of the Organization is formulated through close consultations between the concerned headquarters departments and the Regional and Subregional Offices. Improvements continue to be made in the process of consultation, for example through enhanced information systems, video-conferences and analysis of proposals. The Programme of Work is in fact presented in a "unified" manner in the PWB document. Therefore, substantive programmes are in most cases jointly executed by headquarters units and the corresponding outposted teams. However, it is clear that the relative priorities accorded by Members to individual substantive areas or disciplines are not uniform across regions. The fora constituted by


the Regional Conferences as well as other forms of consultations at regional level serve to articulate the range of interests specific to each region. The results of these deliberations have been taken into account by all concerned units.

49. Moreover, FAO needs to respond to the growing trend of regional cooperation and economic integration, and to the special initiatives of Members at regional level with bearing on the food and agriculture sector. In fact, a substantial part of policy advisory services is now channelled through direct cooperation with regional organizations, or in the context of prominent pronouncements at regional or subregional level. A self-evident example is the Comprehensive Africa Agriculture Development Programme (CAADP) which underpins the New Partnership for Africa’s Development (NEPAD). The Supplement to the PWB includes proposals for appropriate adjustments to the distribution of technical staff resources across regions and subregions in order to respond to the growing importance of regional economic integration organizations.

50. An ongoing challenge is to take fully into account the diversity of regional perspectives into the priority setting process and the formulation of programme entities and outputs. Annex II: Regional Dimensions seeks to provide in the first instance an indication of those major substantive priorities, and consequently the planned activities in the Programme of Work of particular interest to individual regions.

Adherence to FAO's Strategic Framework

51. This PWB continues to adhere to the major policy directions set out in the Strategic Framework. This can be encapsulated into three major aspects: 1) the further application of the new programme model; 2) the relevance of planned work to the five substantive corporate strategies and attendant 12 strategic objectives (SOs); and 3) how the Organization improves the way it works through the Strategies to Address Cross-organizational Issues (SACOIs).

52. The holistic process of programme formulation followed by FAO units in the context of the medium-term planning exercise, which feeds into the development of the business plan for the next biennium proposed in this PWB, is briefly described below.

53. In accordance with one of the Council criteria for priority setting (see section on Approach to Priority Setting), a central feature of FAO’s programme formulation and prioritisation process for substantive work is to assess the extent to which a proposed activity supports the strategic objectives. This is undertaken as an integral part of an initial problem analysis, along with identification of the intended end beneficiaries and possible points of intervention, where FAO would have a clear competitive advantage over other actors in the international arena.

54. Thereafter, detailed programme entity design involves tracing of the chain of cause-and-effect relationships, identification of key external risk factors and potential synergies to be reaped through collaborative partnerships with other organizations. This phase culminates in the identification of one to several major outputs under the entity, as presented in the MTP. These are specific goods and services to be delivered by FAO, each of which is targeted to a clearly identified group of primary users, who are expected to take up FAO’s products and generate a first order level of results, or (major output) outcome. Collectively, the outcomes of all of the major outputs of an entity are intended to be used by a group of secondary users, who are expected to generate a higher, or second order level of results, the (programme entity) objective. Performance indicators, target values and target dates, along with associated means of verification, are specified for both outcomes and objectives. In formulating a two-year business plan and budget consistent with the attainment of the intended six-year MTP outcomes and objectives, emphasis is placed on defining more specific biennial outputs for each programme entity.

55. As regards relevance of planned activities to the corporate strategies (labelled A to E), an indicative overall distribution of resources, as well as contributions to the twelve SOs, are presented graphically in the following chart and table by each technical major programme. The percentage contributions of individual entities to corporate strategies have not changed from the MTP 2006-11


and, accordingly, the resource distributions are nearly identical to those shown in the MTP, with minor variations owing to the difference in planning time horizons, as well as the refinement of entity level resource estimates during the more detailed budgeting process.


Substantive Programmes - Distribution of Resources by Strategic Objectives Strategic Objective

Title MP 2.1

MP 2.2

MP 2.3

MP 2.4

MP 2.5

MP 3.1

A1 Sustainable rural livelihoods and more equitable access to resources A2 Access of vulnerable and disadvantaged groups to sufficient, safe and

nutritionally adequate food

A3 Preparedness for, and effective and sustainable response to, food and agricultural emergencies

B1 International instruments concerning food, agriculture, fisheries and forestry, and the production, safe use and fair exchange of agricultural, fishery and forestry goods

B2 National policies, legal instruments and supporting mechanisms that respond to domestic requirements and are consistent with the international policy and regulatory framework

C1 Policy options and institutional measures to improve efficiency and adaptability in production, processing and marketing systems, and meet the changing needs of producers and consumers

C2 Adoption of appropriate technology to sustainably intensify production systems and to ensure sufficient supplies of food and agricultural, fisheries and forestry goods and services

D1 Integrated management of land, water, fisheries, forestry and genetic resources

D2 Conservation, rehabilitation and development of environments at the greatest risk

E1 An integrated information resource base, with current, relevant and reliable statistics, information and knowledge made accessible to all FAO clients

E2 Regular assessments, analyses and outlook studies for food and agriculture

E3 Central place for food security on the international agenda Legend: less than US$ 4 million US$ 4 million to US$ 8 million more than US$ 8 million

56. Actions to improve the Organization’s work towards achieving its strategic objectives are planned in the context of the SACOIs on Enhancing Inter-disciplinarity, Broadening Partnerships and Alliances, Ensuring Excellence, Continuing to Improve the Management Process, Communicating FAO’s Messages and Leveraging Resources for FAO and its Members, as selectively described below.

57. The pursuit of efficiencies and productivity improvements, contributing to several of the SACOIs is also set forth at the end of this section.

Enhancing Inter-disciplinarity

58. Members have consistently emphasised that one of FAO’s main comparative advantages is its capacity to bring to bear its inter-disciplinary expertise to the solution of recognised problems. This comparative advantage is further sharpened by FAO’s role of knowledge organization in all areas of its mandate.

59. The Priority Areas for Inter-disciplinary Actions (PAIAs) endorsed by governing bodies via the MTP and the PWB embody significant contributions to implementing the strategy for Enhancing Inter-disciplinarity outlined in the Strategic Framework 2000-2015. Developments regarding PAIAs in the next biennium are explained below. However, there are many other instances of activities involving multi-disciplinary cooperation which will be pursued in the biennium, particularly regarding work at regional and country levels.


60. In the area of policy assistance, TCA5 and its outposted teams in the regions will continue to draw heavily on complementary inputs from various technical departments and divisions. This is all the more relevant to the share of policy advisory services provided to Members through regional economic integration organizations. TCA will also spearhead field programme development, taking account of the fact that a growing share of field projects formulated and implemented by FAO require multi-disciplinary technical support. Similarly, TCI6 draws, as necessary, on various inputs from technical departments for its project formulation work. To serve both policy advice and field programme development, FAO Regional and Subregional Offices routinely maintain country task forces and multi-disciplinary teams to assess country needs which cut across technical disciplines. The incipient system of national medium-term priority frameworks instituted in follow up to the evaluation of decentralization will also clearly involve multi-disciplinary analyses and inputs from various levels in the Organization.

61. While prospects for extra-budgetary resources are examined in another section, it may be noted in the context of inter-disciplinarity that there are a number of important global and regional projects financed by donors on the premise of FAO being able to bring multi-disciplinary capacities to support them.

Developments under PAIAs 62. The MTP 2006-11 included proposals regarding the PAIAs to be active as of the beginning of the Plan period, i.e. implying that the list of current PAIA themes would increase from 16 to 18. This was the consequence of the transformation of an erstwhile PAIA entitled: Strengthening Capacity for Integrated Ecosystem Management (ECOM) into two formally new PAIAs on Combating Desertification (DSRT) and Sustainable Management of Mountains (MTNS), in fact continuing valuable inter-disciplinary work in the latter two areas, and of the introduction of another new PAIA on the Implications of HIV/AIDS on Food and Agriculture (AIDS).

63. Following on the guidance from the 2005 sessions of the Committees on Forestry and on Agriculture a new PAIA on Bioenergy (ENGY) has been created. It was also deemed pertinent to broaden the scope of the AIDS PAIA to include the impact of other diseases on food and agriculture. The justifications for these two new PAIAs are provided below. Planned achievements for the 2006-07 biennium under all approved PAIAs are indicated in Annex IV, posted on FAO’s Web site.

64. Bioenergy: Clean and safe energy services are essential for countries to achieve the Millennium Development Goals and to ensure sustainable development. The challenge is particularly important in rural areas of most developing countries where four out of five people are without electricity. The production of energy from biomass, referred to as bioenergy, includes wood energy derived from trees and agro energy derived from crops and from agricultural and animal by-products residues and wastes. The present century could see a significant shift from a fossil fuel to a bioenergy based economy, with agriculture and forestry as the leading sources of biomass for biofuels such as wood, charcoal, pellets, bioethanol, biodiesel and bioelectricity.

65. The new PAIA ENGY will facilitate inter-departmental cooperation in assisting countries in bioenergy development programmes both from the technical and policy-making perspectives. It will address pertinent aspects such as rural infrastructure, employment opportunities, the food security and poverty dimensions, and diversified roles of bioenergy such as in trade and export. The new PAIA will bring together units involved in: resource and potential assessments, data and information systems, land cover and land use change, forest management, technology, engineering, agro-industries and climate change. Socio-economic aspects to be addressed will include: rural livelihoods and gender, legislation, economic policies, institutions, competing uses of land, payments for environmental services, international trade and impacts on food prices. The PAIA will support

5 Policy Assistance Division 6 Investment Centre


partnerships with other institutions, such as the UNFCCC, CBD and UNCCD7 conventions, UN Energy, ECOWAS, IFAD, CGIAR, OECD, IEA and WEC8 and with the private sector, users’ associations and other civil society groups.

66. Implications of HIV/AIDS and Other Diseases on Food and Agriculture: Infectious human diseases, such as HIV and AIDS, malaria and tuberculosis, are significant health issues in much of the developing world. Increasingly, however, these epidemic diseases have come to be viewed as significant development problems. Various FAO bodies, including COAG, CFS, COFI9 and the two recent African Regional Conferences have urged FAO to analyse the links between these major epidemic diseases and food security and to support affected countries to effectively respond to their negative impact on the agricultural sector. It is recognised that the complex interactions between these epidemic diseases and food and nutrition security require that interventions be inter-disciplinary and effectively coordinated.

67. Therefore, the new PAIA will coordinate normative outputs, technical assistance and policy guidance given to countries regarding the ways in which the agriculture sector (including fisheries and forestry) can contribute to mitigate the impact of HIV/AIDS epidemic and other diseases. The PAIA will increase the visibility of FAO’s work on HIV/AIDS and other epidemic diseases and will greatly improve the chances of becoming a co-sponsor of UNAIDS10.

Partnerships

68. The Organization seeks to reinforce existing partnerships and create new ones, based on common objectives and concrete programmes of action, through a corporate framework that guides all units involved in cooperation with partners. In the realm of technical cooperation, an emerging key aim is to support the drive for greater harmonisation and alignment in order to reduce the burden on national governments. FAO also seeks expanded strategic partnerships with the private sector and close relationships with civil society partners concerned with agriculture, rural development, food security and sustainable management of natural resources. The Supplement to the PWB addresses the need for further strengthening FAO’s cooperation with partners, particularly within the UN system and with civil society organizations.

69. In the latter case, cooperation will continue to be guided by the joint FAO-civil society action plan and its key target areas developed in follow-up to the World Food Summit: five years later as well as the parallel NGO/CSO11 Forum held in June 2002. Emphasis will be placed on: enhancing civil society participation in, and contribution to, global policy fora, including the International Alliance Against Hunger (IAAH); and strengthening NGO/CSO participation in policy dialogue, in particular through the FAO Regional Conferences and the planned Special Forum of the Committee on World Food Security in 2006.

70. With regard to FAO’s collaboration with the private sector, efforts will continue to identify and attract private sector partners, including through enhanced dialogue and information sharing, better forms of institutionalising cooperation, generating interest in supporting investment in developing countries, and offering opportunities to support specific FAO programmes.

7 United Nations Framework Convention on Climate Change (UNFCCC); Convention on Biological Diversity (CBD); United Nations Convention to Combat Desertification in those Countries Experiencing Serious Drought and/or Desertification, particularly in Africa (UNCCD) 8 Economic Community of West African States (ECOWAS); International Fund for Agricultural Development (IFAD); Consultative Group on International Agricultural Research (CGIAR); Organisation for Economic Co-operation and Development (OECD); International Energy Agency (IEA); World Energy Council (WEC) 9 Committee on Agriculture (COAG); Committee on World Food Security (CFS); Committee on Fisheries (COFI) 10 The Joint United Nations Programme on HIV/AIDS 11 Non-governmental Organization (NGO); Civil Society Organization (CSO)


71. A major aspect is FAO's participation in the UN Development Group (UNDG) and its various working mechanisms. Attention will be given to strengthening the role of FAO as a key actor within the UN development system, in particular as regards FAO’s capacity to support national efforts to achieve the Millennium Development Goals and other relevant international goals. FAO will also aim at supporting the implementation of the Paris Declaration on Aid Effectiveness adopted at the High-level Forum held in 2005. In response to calls for strengthening FAO’s involvement in various UN reform efforts, in particular at the country level, more effective alignment with, and support to, country owned programming instruments and processes will be sought, together with working in the framework of the Resident Coordinator system with other UN system partners. New technical assistance modalities and emerging demands under sector-wide approaches (SWAps) and direct budget support conditions, will need to be matched by adapted procedures.

72. FAO will further promote the involvement of local administrations from developed and developing countries as new partners in rural development and food security, including cooperation with decentralized entities. The Organization will enhance information exchange with and between these entities, and mobilise their financial resources for joint programmes and projects in developing countries through the decentralized cooperation programme.

Communicating FAO's Messages

73. During the biennium, guided by the principles of the Corporate Communication Policy and Strategy, FAO will continue to ensure a steady flow of communication to its Members as well as proactive communications with a broad range of audiences. Major factors affecting the context in which this work will take place include:

• rapid technological change in the digital communication field; • competing demands for development resources; • diversification of FAO’s stakeholders and audiences; • UN Reform and the focus on helping countries achieve the MDGs.

74. In this context, the Supplement to the PWB presents far reaching proposals to enhance FAO’s communication policy and capacity so as to strengthen its role as a knowledge organization.

75. Throughout the Organization there will be further attention to instilling a genuine communication culture, using established corporate communication and publishing planning processes for the development of well focused and appropriate messages, identification of key audiences and of appropriate vehicles for message delivery.

76. The primary focus of this communications effort during the period will be countries’ progress towards achievement of the MDGs and FAO’s support in this endeavour. At the same time, 2006 will see the 10th anniversary of the World Food Summit, when nations pledged to reduce the number of the world’s hungry by half by 2015.

77. All available channels of communication will be tapped to raise awareness and understanding of decision-makers and those who influence them on issues related to FAO’s mandate. There will be continuing development of the FAO Web site, and in particular the Newsroom, as well as emphasis on reaching all sections of the media – print and broadcast. Technologies that facilitate more precise targeting of outreach will be employed, as well as introduction of more sophisticated tools to enable detailed analysis of coverage received. Efforts will continue, as resources permit, to enhance outreach at regional, subregional and country levels.

78. The annual observance of World Food Day will continue to be used as a major opportunity to focus attention on issues related to food security. The complementary FAO Ambassadors programme and TeleFood campaign will also be supported.

79. Follow-up to the evaluation of the cross-organizational strategy: Communicating FAO’s Messages will depend on the reactions of the Programme Committee at its session in September 2005.


Human Resources Action Plan

80. The Human Resources Action Plan, submitted to the Finance Committee in September 2001, outlined areas for priority action that are linked to the strategies on Ensuring Excellence and Continuing to Improve the Management Process, and remain relevant for 2006-07, including:

• Improvement of corporate HR policy processes through the Human Resources Committee;

• Review of HR business processes and management models to support the implementation of an integrated Human Resources Management System (HRMS);

• Analysis of the Organization’s requirements for staff and skills through an enhanced human resource planning capacity;

• Pro-active and targeted recruitment programmes to meet organizational needs; • Development of the skills and competencies of staff to meet current and emerging

programme requirements, such as decentralization; • Development of a fair, equitable and transparent system of performance management.

81. Human resource planning and management is particularly important as FAO is a people-intensive organization with staff costs representing around two-thirds of its total Programme of Work, as shown in the table below. During the preparation of the PWB, units may modify their complements of posts according to changes in programme requirements, as described in Annex V: Evolution of Posts. The adjustments in the human resource input mix is partly illustrated by the 108 posts abolished and the 129 new posts created in the biennium under the ZRG scenario. Further changes in the human resource complement are achieved by changing the job descriptions of positions, for example when they fall vacant and are advertised. Moreover, a significant amount of expertise is also acquired through short-term contracts with consultants and other contractual arrangements.

Percentage of Staff Costs Category 2004-05 % of staff

costs ZRG Programme

Change 2006-07 ZRG % of

staff costs

Technical Units 77.1 0.2 77.3 Non-technical Units 56.7 (1.4) 55.4 Total 65.6 (0.8) 64.7

82. A major challenge in the biennium will be to acquire staff with the skills needed to keep pace with rapidly evolving technical requirements and ways the Organization is working to address Members’ expectations. As evidenced by the following table, significant turnover of staff due to retirement is foreseen in the next few years.

Staff Turnover on Budgeted Posts Category Budgeted Posts Mandatory

Retirement Potential Turnover

Total Turnover % of Budgeted Posts

Technical Units 1206 55 43 98 8.1 Non-technical Units 2076 79 67 146 7.0 Total 3282 134 110 244 7.4

83. As regards the number, type and level of staff being recruited, a major emphasis will be to better align the requirements of organizational programmes and the competencies acquired externally and developed from within. Key to this effort are both HR planning and information systems which are able to capture data on, and identify the gap between skills possessed (skill inventory) and skills needed. The implementation of the Oracle HRMS will be crucial to furthering this process in a systematic way. At the same time, recruitment will continue to aim at balanced geographical representation and increasing the proportion of women and young professionals.


84. A further component of Ensuring Excellence is to enable FAO to be an effective learning organization. This will require staff training during 2006-07, greater staff empowerment in using newly acquired skills and a capacity for the Organization to learn from successes and failures.

Implementation of a competency framework 85. As part of the HRMS project, work will continue on the implementation of a competency framework which supports all aspects of human resources management, job design, recruitment and selection, performance management and staff development. Work will include implementation of competencies for managerial positions and FAORs to support performance management and ongoing development, as well as the completion of technical and professional competencies.

Management development 86. Participation in the Management Development Centre (MDC), developed in partnership with WFP and IFAD, will be expanded and supported by individualised personal development plans and a wider management development programme. At the same time, management development will need to be better linked to other aspects of HR management, including performance management, career development and succession planning and will need to address the requirements of staff outside headquarters.

Human Resource Management System 87. The implementation of the HRMS provides a unique opportunity to review and update business processes and the overall way HR is planned, managed and delivered, including a more comprehensive model for human resources management to ensure better service delivery at lower cost, as further described in Efficiencies and Productivity Improvements.

88. The HRMS will also facilitate implementation of performance management by linking more closely individual performance plans to the Organization’s programme objectives. A revised system will allow for individual expected results to feed into approved programme objectives, career development and training needs and managerial skills requirements.

Extra-budgetary Resources

89. Extra-budgetary resources facilitate translating FAO’s knowledge into tangible results at regional and country level, and also provide supplementary support to other key areas of the Organization’s work.

90. To ensure the effectiveness of such support, FAO will strengthen consultations with both recipient countries and donor governments and institutions to ensure that the programmes and projects developed are fully in line with national development strategies, in particular PRSPs and UNDAF12. It will continue to ensure that programmes funded through extra-budgetary resources address the food security concerns of Members and their efforts in attaining the MDGs13.

91. Enhanced resource mobilisation efforts will build on the Organization’s effectiveness in addressing complex development problems in a multi-disciplinary and result-oriented manner, emphasising national ownership through capacity-building and training. The Organization will broaden its communications strategy to illustrate its role and achievements in the international media (TV, press, Internet, etc.), showcasing success stories in poverty alleviation as a result of cooperation with donor governments and financing institutions.

92. Strategic partnership frameworks outlining broad areas and modalities for long-term collaboration will be developed with a number of interested donors, thereby ensuring predictability and sustainability of FAO’s interventions in accordance with mutually agreeable geographic and thematic priorities. Continued emphasis will be given to attract resources from donor countries,

12 Poverty Reduction Strategy Papers (PRSPs); United Nations Development Assistance Framework (UNDAF) 13 Millennium Development Goals


including from the African continent, as well as from financing institutions and the private sector to the FAO Trust Fund for food security and food safety.

93. In order to ensure clear focus and relevance of FAO’s projects and programmes submitted for the consideration of the international donor community, criteria will be strictly observed in the formulation process. Moreover, through the development of streamlined procedures in a revised Field Programme Manual, the timeliness of project formulation will be enhanced, as well as the transparency and cost-effectiveness of operations.

94. The results of the last two years already represent a historical high in terms of extra-budgetary project approvals. It is noted, however, that FAO’s field programmes are increasingly concentrated in a limited number of countries and technical areas. Considering the trend towards decentralized decision-making on programming issues, FAO will pursue the strengthening of field programme development and resource mobilisation capacity in decentralized offices.

95. Another major trend affecting the field programme concerns the ongoing process of harmonisation and alignment of international development assistance efforts at country level. Efforts will not be limited to mobilising resources for programmes and projects under FAO execution but, more importantly, the Organization will play a catalytic role in enhancing the flow of overall resources, from both public and private sources, to the agricultural sector as a whole, in particular for food security, emphasising national ownership which relies on the recipient’s capacity for programme implementation and with FAO playing a supportive role.

96. Such a catalytic role will be increasingly important as the Organization, relying on donor and International Financing Institutions (IFIs) co-financing, steps up its investment preparation activities. Innovative approaches to programme development are expected to lead to significantly increased investment flows to the agricultural, rural development sectors, in particular in Africa.

97. Finally, FAO will strive to further strengthen its collaboration with UNDP and other UN organizations and agencies, such as IFAD, WFP, WHO, UNEP, UNESCO, GEF14 as well as the World Bank, in order to join efforts and respective competencies, resources and know-how to tackle emerging global issues calling for international responses.

Planning extra-budgetary resources for 2006-07 98. When programming the use of Regular Programme (RP) resources in the context of the biennial PWB, units bear in mind the contribution expected to be made to the achievement of the Organization's objectives by Trust Funds (TFs) and Special Funds, as described under the pertinent substantive programmes in Annex I.

99. The level and distribution of extra-budgetary funding is difficult to forecast up to two and a half years before the expenditure is incurred. It is dependent upon the policies of donors which often respond to geographical and sectoral preferences, as well as demands from Members. Nevertheless, the following table provides the Secretariat’s forecast of extra-budgetary funded programmes for 2006-07, distributed by region and programme.

14 United Nations Development Programme (UNDP), International Fund for Agricultural Development (IFAD), World Food Programme (WFP), World Health Organization (WHO), United Nations Environment Programme (UNEP), United Nations Educational, Scientific and Cultural Organization (UNESCO), Global Environment Facility (GEF)


Extra-budgetary Expenditure by Region and Programme (US$ 000) Programme and Major Programme Global Inter-

Regional Africa Asia and

Pacific Europe Latin

America /

Caribbean

Near East Total

122 Programme Planning, Budgeting and Evaluation

0 783 0 0 0 0 0 783

12 Policy, Direction and Planning 0 783 0 0 0 0 0 783 Total Chapter 1 0 783 0 0 0 0 0 783 210 Intra-departmental Programme

Entities for Agricultural Production and Support Systems

0 3,196 0 0 0 0 0 3,196

211 Natural Resources 6,555 0 13,545 10,481 0 6,572 0 37,153 212 Crops 0 34,299 58,705 7,109 112 1,166 141,936 243,327 213 Livestock 11,289 7,526 7,918 22,766 3,089 5,347 3,842 61,777 214 Agricultural Support Systems 910 0 9,387 9,642 3,228 0 0 23,167 215 Agricultural Applications of

Isotopes and Biotechnology 1,118 0 0 0 0 0 0 1,118

21 Agricultural Production and Support Systems

19,872 45,021 89,555 49,998 6,429 13,085 145,778 369,738

220 Intra-departmental Programme Entities for Food and Agriculture Policy and Development

4,226 0 545 361 0 724 181 6,037

221 Nutrition, Food Quality and Safety

0 1,789 12,393 1,626 0 0 0 15,808

222 Food and Agricultural Information

0 1,759 2,287 803 803 803 803 7,258

223 Food and Agricultural Monitoring, Assessments and Outlooks

0 1,673 2,398 51 0 394 714 5,230

224 Agriculture, Food Security and Trade Policy

8,319 3,334 3,649 1,651 0 874 0 17,827

22 Food and Agriculture Policy and Development

12,545 8,555 21,272 4,492 803 2,795 1,698 52,160

231 Fisheries Information 0 1,893 0 0 0 0 0 1,893 232 Fisheries Resources and

Aquaculture 2,041 11,450 0 260 3,574 0 88 17,413

233 Fisheries Exploitation and Utilisation

0 1,739 0 237 0 1,570 585 4,131

234 Fisheries Policy 0 24,334 0 0 0 0 0 24,334 23 Fisheries 2,041 39,416 0 497 3,574 1,570 673 47,771 241 Forest Resources 6,848 0 4,565 8,788 685 4,565 0 25,451 242 Forest Products and Economics 185 0 123 0 0 123 0 431 243 Forestry Policy and Institutions 3,115 0 4,153 4,153 1,038 4,153 0 16,612 244 Forestry Information and Liaison 364 0 0 0 0 0 0 364 24 Forestry 10,512 0 8,841 12,941 1,723 8,841 0 42,858 251 Research, Natural Resources

Management and Technology Transfer

0 8,088 15,436 1,702 59 754 621 26,660

252 Gender and Population 0 4,824 643 643 0 643 643 7,396 253 Rural Development 5,434 368 2,760 4,233 736 10,122 368 24,021 256 Food Production in Support of

Food Security in LIFDCs 0 0 27,151 2,974 0 26,796 2,318 59,239

25 Contributions to Sustainable Development and Special Programme Thrusts

5,434 13,280 45,990 9,552 795 38,315 3,950 117,316

Total Chapter 2 50,404 106,272 165,658 77,480 13,324 64,606 152,099 629,843


311 Coordination of Policy

Assistance and Field Programme Development

1,659 3,455 4,370 948 0 474 474 11,380

313 Legal Assistance to Member Nations

3,448 0 0 0 0 0 0 3,448

31 Policy Assistance 5,107 3,455 4,370 948 0 474 474 14,828 322 Investment Support Programme 0 3,903 0 0 0 0 0 3,903 32 Support to Investment 0 3,903 0 0 0 0 0 3,903 351 Multilateral and Bilateral

Agencies 11,645 0 0 0 0 0 0 11,645

352 Civil Society Awareness and Partnerships

0 5,124 0 0 0 0 0 5,124

353 Cooperation Agreements with Member Nations and Support to ECDC and TCDC

2,892 0 0 0 0 0 0 2,892

35 Cooperation with External Partners

14,537 5,124 0 0 0 0 0 19,661

Total Chapter 3 19,644 12,482 4,370 948 0 474 474 38,392 511 Public Information and

Publications Support 810 0 0 0 0 0 0 810

51 Information and Publications Support

810 0 0 0 0 0 0 810

Total Chapter 5 810 0 0 0 0 0 0 810 Grand Total 70,858 119,537 170,028 78,428 13,324 65,080 152,573 669,828

100. Beyond the extra-budgetary resources channelled through FAO, it may be noted that the Organization plays a key role in the generation of investment for food and agriculture through its Investment Centre (nearly US$ 3,200 million in the year 2004). It is also instrumental in tracking resources earmarked for agricultural and rural development as part of External Assistance to developing countries (e.g. a provisional estimate can be given for the year 2002 as close to US$ 9,600 million).

Efficiencies and Productivity Improvements

101. The pursuit of efficiencies remains an on-going management process. However, it cannot be divorced from enhancing organizational effectiveness. Both aim ultimately to enhance FAO’s contribution to its strategic objectives and the MDGs, through strengthened internal results management, and stronger partnership with UN agencies, governments and other stakeholders.

102. Improving efficiency and effectiveness will require a process to systematically learn from success and failures, share results and eliminate low value-adding activities, while continuing to simplify and streamline processes.

103. For a learning organization such as FAO, effectiveness is greatly facilitated by its ability to continuously adapt to an increasingly uncertain environment, and develop competences to cope with future changes. This will require timely learning feedback and more systematic incorporation of the Organization’s accumulated knowledge and experience for the benefit of Members. Accordingly, the cross-organizational strategy Ensuring Excellence will give particular emphasis to the formation of an agile learning organization, based on more active knowledge management and support of best practice across all its activities.

104. The scope of work for improving efficiency will be all-inclusive, covering the entire Organization, as there are no areas which a priori lend themselves to being exempted from value


adding or streamlining process reviews. Consistent with current best practice, three broad themes will be pursued:

• Efficiencies: focusing on inputs, as defined by the FAO Council at its 110th Session as “reductions in the cost of inputs without material negative impact on the outputs15”;

• Cost recovery improvements: ensuring FAO is adequately reimbursed for its services, where appropriate, also in accordance with the expectations of the Council; and

• Productivity gains: focusing essentially on increases in outputs without increasing the cost of inputs.

105. It is noted that the scope of efficiency savings outlined above extends beyond the areas normally sought by the governing bodies. While the focus of the governing bodies and the Organization’s resultant reporting has hitherto been on efficiencies and cost recovery improvements (in accordance with the definitions of the Council), productivity gains have not received recognition in the past. Measures will be initiated to include productivity gains in a framework for future action.

Establishing a framework for efficiencies and productivity improvements 106. Following current best practice, a framework for efficiencies and productivity improvements will, therefore, be set up in the next biennium which will explicitly address the need for a longer-term perspective. The framework will spell out the principles, goals and incentives of the initiative, and an outline of areas for consideration is provided below.

107. In 2006-07, FAO will define a target for efficiencies and productivity improvements. An aggregate target in the order of 1.0 – 1.5% p.a. would be typical in the public sector. If applied to FAO, these savings might appear small when compared to the efficiencies realised by the Organization in previous biennia and reported to the governing bodies. However, the significant achievements of the past will not materialise again indefinitely, and even the more modest levels of savings will require substantial investment or readiness to incur transitional costs if more complex process changes are to be implemented. Moreover, several members of the Finance Committee have acknowledged the difficulties in achieving further savings, and the Programme Committee requested in its May 2005 session that efficiency savings targets for 2006-07 should be realistic.

108. An important principle is that productivity improvements and efficiencies should be independent of the budget level and not a tool for negotiating budgets. Budget negotiations will need to be related to programmatic guidance and expression of choices from Members. Efficiency savings, on their part, are inextricably linked with enhancing the Organization’s effectiveness - improved efficiency and greater effectiveness go hand-in-glove.

109. Sustainable efficiencies, and their full integration into day-to-day processes, will have to be fully owned by managers to harness their commitment. Managers will need a stable framework with clearly elucidated principles and incentives to proactively re-examine the simplification and sustainability of core business processes, including cross-cutting ones, through re-engineering rather than fine-tuning. Although the framework will evolve over time, best practices adopted elsewhere will be examined for their applicability in FAO. For example, it would be appropriate to provide incentives to managers. One approach could be to withhold on average an annual 1% of their budgets, as a sort of “efficiency tax”, but allowing managers the opportunity to earn back a part or all of the funds held back, based on sustainable efficiencies achieved. Another approach to be considered, could be to create an “innovation fund” by channelling, say, 1% of the Regular Programme budget into a centrally managed fund which would permit investment in process changes addressing innovative cross-cutting ways of improving the Organization’s efficiency or productivity.

Productivity enhancements, indicators and benchmarking 110. As noted above, to date the Organization has not built up a systematic record to demonstrate its productivity enhancements, although there are examples of improvements in the administrative and technical programmes.

15 CL 110/REP, para. 24


111. Productivity gains in the administrative area have included the processing of payments to suppliers, with the average time taken to process payments, once clear documentation is received, reduced from 7 to 10 days to 2 to 3 days. In FAO’s technical work, evidence of productivity improvements is apparent in the area of Statistics, where the successful implementation of information technology has led to considerable improvements in productivity in recent biennia. The Statistics Division has transformed the production of food balance sheets from being a highly labour-intensive job involving 40 clerical staff, to one involving about 20 clerical staff currently (i.e. an efficiency saving), whilst in terms of the output, the balance sheets now include about 5 times the statistical data that they used to (an unquantified productivity gain). With the implementation of FAOSTAT16 2, this trend will continue and staff will be pushed to the higher end of the value-chain.

112. However, the Organization’s outputs are not sufficiently defined and recorded in a way to make them comparable over time and, resources permitting, a system of more rigorous measurement and comparison with standards will be developed. During 2006-07, clear outputs and measurable indicators will be identified for each major efficiency or productivity improvement sought. For example, the economic benefits through use of electronic signatures, which would streamline human resource management but deliver the same output, would be quantified; the extent of increased cost recovery achieved through revised reimbursement rates for emergency services and implementation of budget formulation guidelines would also be quantified.

113. FAO benchmarks would be progressively developed on a sector-by-sector basis in a manner which facilitates comparison against similar processes in the public sector and, where appropriate, the private sector. This major undertaking will require some time to build up the necessary benchmarks. However, a number of specialists in this field have been identified and will be approached to assist the Organization in arriving at relevant sector-specific benchmarks. Where possible, departments will also be assisted in setting for themselves, medium-term stretch targets, based on benchmarks from comparable service-providing institutions.

Current initiatives 114. The vigorous pursuit of efficiencies has been under way in FAO since January 1994 with well-documented efficiency savings over the previous five biennia, estimated at US$ 60 million per annum compared with 1994. Improvements in productivity, which have entailed increases in output without any increase in the cost of inputs, are largely excluded from this figure. The current efficiency initiatives can be broken down into two types: those which are of an institutional nature and are driven from the top, as they cut across all spheres of the Organization’s work; and those which concern a business process under the direct influence of a single manager.

Current institutional efficiencies 115. Cross-sectoral reviews: Building on the results-based model already implemented by FAO, but with particular attention to the need to better integrate linkages between headquarters and decentralized work (particularly at country level) and better leverage the Organization’s knowledge assets, the Organization would seek to formulate the expected results at the highest possible aggregation level. Examples of areas of review include:

• formulation of expected results above the programme entity structure, taking due account of inter-disciplinary work programmes;

• a simplified, more regular monitoring process, no longer focusing on variance analysis (comparing budgets with actuals), but on the actual progress achieved in servicing the agreed results chain;

• more real time feed-back from knowledge and learning sharing and ongoing timely evaluations about what works and what doesn’t with respect to the expected results;

• strengthened results-based service-level agreements with a clearer definition of accountabilities; and

• a simplified chart of accounts, to reduce administrative effort in entering data of marginal utility.

16 Corporate Database for Substantive Statistical Data


116. The Human Resources Management Model (HRMM): In conjunction with its implementation of the HRMS the Organization will significantly reformulate the way human resources services are delivered by implementing a Human Resources Management Model, which will enhance the value of human resources services by shifting work from transaction processing towards strategy and advice, and improve responsibility and accountability.

117. A single system and sole single source of all HR information through the HRMS will provide a homogeneous service delivery process, reduce the number of errors and cut the time needed to handle transactions. The implementation of the HRMS will eliminate double-entry of data and duplication of roles in human resources service delivery. The use of “electronic workflow”, coupled with a reduction in routing steps, by having no more than one initiator and two approvals, will streamline transaction processing (for example, six sign-off steps are currently needed to process leave-without-pay). A “self service” approach, whereby staff and managers are able to electronically execute actions that previously required intervention by other FAO HR staff, will also improve efficiency.

118. The proposed HRMM will seek to concentrate HR transaction processing functions in one place and reduce the need for non-HR staff to perform HR services. The new processes will decrease the total number of staff needed and will also allow the realignment and redeployment of HR personnel from transaction processing activities towards more value-adding activities such as HR strategy and development. Current estimates suggest that only about 18% of HR staff is actually working on such activities compared with closer to 42% in the proposed model.

119. Headcount savings are expected to be realised through natural attrition and staff retirements. Hence, there is a need to provide additional training for existing staff. The full benefits of the new HRMM will be reached by 2009.

120. Streamlining of regional and country level administrative activities: The follow-up to the Independent Evaluation of FAO’s Decentralization will progressively yield cost reductions in a number of cross-cutting areas as steps to implement a more efficient and effective decentralized structure are taken throughout the biennium. Actions already foreseen include the conversion of 12 International Administrative Officer posts to National Administrative Officer posts, which will yield biennial net savings of US$ 0.9 million, but cannot translate into savings in the budget as the network is under-funded following real reductions totalling US$ 5.2 million in the current biennium. Greater delegation of administrative and operational responsibilities to country offices will also improve response time in the provision of services.

121. Improved support cost recovery: Non-recovered variable costs of providing administrative and operational support (AOS) services or technical support services (TSS) to extra-budgetary projects are effectively borne by the Regular Programme budget, thereby straining the Organization’s capacity to implement its regular Programme of Work.

122. In accordance with the principles already approved by the FAO Council, the Finance Committee, at its last session in May 2005, encouraged FAO to continue efforts towards full recovery of indirect variable costs for emergency operations. Currently, the ceiling rate for such projects is 6.5%. However, a new ceiling rate for emergency and rehabilitation projects of 10% is needed to assure that the Organization’s ability to recover its indirect variable costs is not compromised. The new ceiling will be proposed to the Finance Committee at its session in September 2005.

123. The Organization will also seek to improve recovery for technical services performed for extra-budgetary projects. This will require, inter alia, improved budget formulation practices for full implementation during 2006-07. Impediments to cost recovery, including complex administrative procedures which discourage managers from submitting claims for reimbursement for services rendered, will also be removed.

124. Registry management: The review of registries which commenced in mid-2003 has now been completed and has resulted in significant changes to the methods of work with the introduction of


digitisation. The FAO records management process can now be benchmarked against the International Organization for Standardization (ISO) 15489 standard, which is an essential component of new accountability and quality management standards.

125. The ensuing structural and staffing changes are expected to yield savings of US$ 0.6 million, net of the purchase of required licensing software. This is in addition to the net savings of US$ 0.4 million, realised in the PWB 2004-05 and the unquantified time saved by managers and support staff searching for documents.

Current Budget Holder driven efficiencies 126. Information Technology: A number of initiatives are currently being pursued by the AFI17 to improve Information technology (IT) governance within the Organization. The division is seeking to find efficiencies within its current operation by establishing corporate standards for IT throughout the house, thereby reducing maintenance and migration costs.

127. In addition to this, FAO is part of the ICT network, an inter-agency IT strategy body which seeks to establish IT standards across the UN agencies and, amongst other initiatives is assessing the feasibility of a joint UN payroll system and using shared service centres, for example the UN International Computing Centre (ICC) in Geneva. FAO has already taken advantage of this by outsourcing its mainframe computer environment to them. The intention now is to move to a larger mainframe at the ICC, where FAO applications would share this resource with applications from other Rome-based UN agencies. The savings foreseen for 2005 will be utilised to fund the consolidation of activities, but from 2006 onwards, savings of approximately US$ 60,000 per year are anticipated.

128. Beyond outsourcing, the Organization is also embarking upon “off-shoring” administrative and information systems development work as related to the HRMS project, to the less costly location of the Regional Office for Asia and the Pacific, in Bangkok, where the infrastructure in terms of office accommodation and management support is well established. Savings to the HRMS project are estimated around US$ 750,000 despite some additional telecommunications expenditure to provide improved links between Bangkok and Rome. If successful, off-shoring could be contemplated for other administrative areas of the Organization.

129. It may also be noted that under the Capital Budget for 2006-07, the Organization is taking some initial steps to replace its telephone equipment and examining the adoption of emerging voice technologies, especially Voice-Over-Internet Protocol (VoIP) in 2009 or possibly earlier if justified by the net savings of this new technology.

130. Document and publication management: In June 2005, a new internal charging mechanism was approved for implementation for the distribution and storage costs of all FAO publications and meeting documents. Currently, these costs are paid centrally by AFS18, whereas from January 2006 the budget for these costs will be placed, as far as possible, with the internal client divisions which have some influence over the costs through their decisions on the quantity of publications to distribute and store. It is anticipated that savings of US$ 0.7 million will be realised over the biennium as a result of the ensuing behavioural changes. However, these will not translate into budgetary savings in 2006-07 as the activity is significantly under-funded following the budget reductions in the current biennium.

131. Changes in printing technologies have reached a level of maturity whereby most of the distribution activity (i.e. handling, packing and labelling of publications) can be automated as is already being done in large private sector companies. The Organization is investigating whether a substantial portion of FAO publications could be produced and inserted into addressed envelopes directly by upgrading in-house printing facilities or by using properly equipped external printers. The

17 Information Systems and Technology Division 18 Administrative Services Division


Organization could reap biennial savings of about US$ 0.5 million in the distribution of publications, although this proposal may require some initial investment costs.

132. Containment of travel costs: Working with other UN system agencies in Rome, FAO will begin to negotiate directly with airlines to make most use of the combined purchasing power of the agencies. It is expected that the ability to leverage individual airlines through concerted action will more than offset the loss of airline commission from which the Organization presently benefits in the present contract with its travel agency.

133. Efficiencies and savings in governance: Aside from reducing the duration of the forthcoming Conference from 9 to 7 days, as approved at the 32nd session of the Conference, the length of the sessions of the Committees on Commodity Problems (CCP) and on Agriculture (COAG) was reduced in 2005 as requested by the Council19, which may well lead to savings. The Organization is also seeking to contain interpretation costs by critically reviewing the number of Regional Groups' meetings held. Furthermore, the Supplement to the PWB acknowledges the need for streamlining the meetings of statutory bodies at both global and regional levels, as well as internal Committees.

134. Following calls from the governing bodies, FAO is seeking to reduce the length of most of its meeting documents, while strengthening their results focus. Initially, the aim is to reduce by 10% the total volume of documentation for all governing body meetings, which, indeed, was one of the reasons for shortening the SPWB and full PWB documents. Achievement of the target is a shared responsibility with the governing bodies, who are the primary recipients of such documents. The governing bodies may, therefore, wish to exercise further selectivity in their requests to the Secretariat for additional information or new documents, and encourage the Organization to shorten existing meeting documentation.

135. In seeking to find innovative ways to generate further savings in governance, the Organization is also looking at practices in other UN agencies. The elimination or more efficient production of verbatim records, which are very expensive to produce, is one area of investigation. Other organizations using verbatim records are IFAD, ILO and UNESCO20. Recognising that verbatim records are a requirement of FAO’s Basic Texts, other less costly methods are being considered, such as audio/video recordings of governing body meetings. UNCTAD and WTO21 have experience in making such recordings available on their Web sites.

136. Whereas it is estimated that the implementation of such measures will generate savings of approximately US$ 300 000 per annum, some of these savings will be required as an initial investment in technological infrastructure.

137. Use of efficiency savings achieved: The efficiency savings achieved will be reported on and will be applied to areas of programme priority. However, while budgetary resources can be more freely allocated to areas of highest priority, the use of efficiency savings is more restricted as a part will be used to fill funding gaps of previously under-funded programmes and another part will be needed, as laid out in this section, to provide incentives to budget holders.

19 CL 127/REP, para. 23 20 International Fund for Agricultural Development (IFAD); International Labour Organization (ILO); United Nations Educational, Scientific and Cultural Organization (UNESCO) 21 United Nations Conference on Trade and Development (UNCTAD); World Trade Organization (WTO)


FINANCIAL FRAMEWORK

Proposal for an FAO Security Expenditure Facility and Related Draft Conference Resolution

138. Security threats have increased notably worldwide since 11 September 2001 and a safe working environment cannot be taken for granted. The United Nations system, including FAO staff, faced attacks against its premises in Baghdad in August 2003. The conclusions of the report of the Independent Panel on the Safety and Security of United Nations Personnel in Iraq pointed to severe failures in the UN security management, system and practices. The response of the United Nations system and the present external environment, have resulted in mounting and unpredictable security expenditures in FAO.

139. The primary responsibility for the security and protection of FAO personnel and property rests with the host government. However, within the framework of the United Nations Security Management System, the Director-General is ultimately responsible for the safety and security of FAO personnel and property. Providing a safe environment also requires adequate funding and Members have a collective responsibility in this regard.

140. The budgets and expenditures for safeguarding staff and assets are currently spread among several chapters and organizational units. This weakens financial management and control of this important area of expenditure, hindering the formulation of a linked hierarchy of programmes and activities with clearly articulated objectives, and the alignment of resources to the programmes.

141. The financial management of security resources is fraught with a number of uncertainties including the fluctuating security situation at global, regional or country level. A case in point is the unforeseen security-related relocation of some FAO country offices. In some cases, the Security Management Team mandated the relocation of the FAO Representation from existing government-provided offices to premises that could be rendered secure by effecting structural improvements and installing security equipment. The cost of these office moves/security upgrades is substantial: US$ 100 000 – 166 000 per office, plus the annual rental cost of the new premises if not government-provided.

142. Financial management is also complicated by unanticipated costs and fluctuating cost estimates where they relate to FAO’s participation in United Nations system-wide arrangements, such as the Organization’s share in the costs of the UN Department of Safety and Security (UNDSS). The requirement to reduce the substantive programme of work due to unplanned security expenditures, or the inability to carry forward under-expenditure on security from one biennium to the next, on account of delays that are entirely outside the control of the Organization, are serious impediments to the delivery of FAO’s core programmes.

143. The Organization has identified a possible solution to achieve a strengthened financial planning, monitoring and accountability framework for security and safety of staff and assets. To address the present shortcomings, following the advice of the Finance Committee, the Council at its 128th Session in June 2005 supported the Director-General’s proposal for a Security Expenditure Facility (SEF) to provide comprehensive coverage of staff and non-staff security costs under a new Chapter 9 of the budget. The SEF would group in Chapter 9 all costs that are directly related to headquarters and field security at FAO. The account could also be supplemented by voluntary contributions. Unspent funds in this Chapter at the end of the biennium would be credited to an FAO Security Account and could be carried forward to future biennia.


144. The SEF would improve financial management within a results-based context and give needed visibility to the efforts of Members and the Organization to ensure a safe and secure working environment. A Draft Resolution to establish the Security Expenditure Facility is presented below for adoption by the Conference.

145. FAO has taken decisive action during the past two years to strengthen security including through the promulgation of a new FAO Field Security Policy issued in July 2003 and the establishment of a unit dedicated to safeguarding the security of FAO field personnel and field locations. Security at field locations has been enhanced through four sets of action:

• FAO’s participation in the newly established UNDSS, which includes benefiting from the UN unified security management system in non-headquarters duty stations worldwide and a field-based team of international Field Security Coordination Officers;

• provision of Minimum Operating Security Standards (MOSS) equipment and facilities in accordance with policy established by UNDSS for FAO duty stations in each of the five security phases and for duty stations subject to terrorist threat – depending on the phase and terrorist threat level;

• provision of Minimum Operating Residential Security Standards (MORS) equipment and measures to strengthen security at the residences of FAO personnel and their families; and

• training of staff in security awareness, preparedness and use of security-related equipment.

146. At FAO headquarters in Rome, security has been improved through the installation of shatter-proof film on all external windows of the headquarters building, construction of anti-ram barriers at the vehicular entrances, and the deployment of additional guards on the premises.

147. In anticipation of many of the above actions, the budgetary provision for security of US$ 8.8 million in the PWB 2002-03 was increased in the Director-General’s PWB 2004-05 proposals by US$ 7.8 million to US$ 16.6 million. However, the Director-General’s budget proposals were significantly curtailed by the Conference in 2003. The actual cost incurred in 2004-05 is expected to rise to US$ 19.4 million. In 2006-07 it is estimated that the requirements will be of a similar magnitude, although with higher recurrent costs, as detailed in the following table and described in detail in Annex I, in the programme narrative for Chapter 9: Security Expenditure.

Security Resource Requirements (US$ 000) Security Item 2002-03 RP

Security BudgetEstimated 2004-05

Security Expenditure Estimated 2006-07

Security Expenditure

FAO share of UN-DSS (ex-UNSECOORD) 942 2,760 4,000 Malicious Acts Insurance Policy 200 300 300 MOSS equipment, GOE and related non-staff costs for FAORs

285 6,000 6,000

FAO Field Security Focal Point, Field Security Programme Officer and two Security Clerks

0 480 800

Residential security provisions 919 718 700 Miscellaneous, including MOSS equipment and GOE for Regional/Sub-regional Offices

0 800 425

Subtotal security items - field 2,346 11,058 12,225 HQ Security Guards 6,500 7,000 7,000 HQ security services including installation of anti-ram barriers, blast-proof film on HQ windows, other miscellaneous

0 1,300 200

Subtotal security items - HQ 6,500 8,300 7,200 TOTAL 8,846 19,358 19,425

148. To fund the US$ 19.4 million required for security in 2006-07, the Director-General proposes that under the new Chapter 9, US$ 8.8 million be drawn from the provision for security budgeted in the PWB 2002-03 and the remaining US$ 10.6 million be funded as an exceptional cost escalation that has been forced upon the Organization. This approach recognises the responsibility


of Members to collectively provide adequate resources for a safe working environment, and also responds to the request of many Members to protect the substantive work of the Organization in the face of mounting security costs. It is noted in this context that separate incremental funding for security costs has become a customary practice in some other UN organizations, such as the UN and IAEA22.

22 International Atomic Energy Agency


Draft Resolution for Adoption by the Conference Amendment to Financial Regulation VI (Security Expenditure Facility)

THE CONFERENCE, Recalling the Director-General's proposal to establish a Security Expenditure Facility grouping in a new Chapter of the Programme of Work and Budget expenditures directly related to headquarters and field security in FAO, as a means of strengthening the existing financial framework for planning, monitoring and accountability for improved security of staff and assets of the Organization; Noting in particular, that the Finance Committee, at its Hundred-and-ninth Session (Rome, 9-13 May 2005), recognised the need for consolidated and comprehensive coverage for security costs within a single budgetary provision and for financial flexibility through a funding mechanism which could be supplemented by voluntary contributions, and supported the Director-General's proposal to establish a Security Expenditure Facility as a means of grouping all staff and non-staff costs directly related to headquarters and field security in a new Chapter 9 of the Programme of Work and Budget; Noting further the deliberations of the Joint Meeting of the Programme and Finance Committees of 11 May 2005 concerning the proposal for the creation of an additional Chapter 9 to the Programme of Work and Budget and the establishment of a Security Expenditure Facility; Recalling that the Council, at its Hundred and Twenty-eighth Session (Rome, 20-25 June 2005), concurred with the creation of an additional Chapter 9 to the Programme of Work and Budget and the establishment of a Security Expenditure Facility; Considering that the Finance Committee, at its Hundred and Tenth Session (Rome, 19-23 September 2005) and Committee on Constitutional and Legal Matters, at its Seventy-ninth Session (Rome, 11-12 October 2005), reviewed the proposed amendments to Financial Regulation VI; Noting that the Council, at its Hundred and Thirtieth Session (Rome, 16-18 November 2005), agreed to transmit to the Conference, for approval, the proposed amendments to Financial Regulation VI; Decides: a. to establish a Security Expenditure Facility consisting of a separate budgetary Chapter and a Security

Account; b. to designate Chapter 9 of the Programme of Work and Budget for the purposes of defining and authorising

security expenditures, including staff and non-staff security provisions and expenditures at headquarters and in the field to ensure the Organization's compliance with United Nations security policies;

c. to establish a Security Account through the following addition of Financial Regulation 6.12 to the Financial Regulations of the Organization:

6.12. There shall be established: a. a Security Account, which shall be used for the purpose of managing activities which involve security

expenditure defined as being: i. expenditures on headquarters security provisions; ii. expenditures on field security provisions to ensure in particular the Organization's participation in the

UN security management system and compliance with its provisions for field security; b. the sources of funds shall be: i. Regular Programme Appropriations approved by the Conference; ii. voluntary contributions; c. expenditures of a capital nature, defined as expenditures with a useful life in excess of FAO's financial

period of two years that also meet the definition of security expenditures as per sub-paragraph (a) above, shall be funded from the Security Account;

d. the balance of funds in Chapter 9 of the budget at the end of each financial period shall be transferred to the Security Account for use in a subsequent financial period.


Capital Budgeting

149. Conference Resolution 10/2003 established a Capital Expenditure Facility as a systematic approach to managing and financing essential capital expenditures, by:

• designating Chapter 8 of the Programme of Work and Budget for the purposes of defining and authorising capital expenditures; and

• establishing a Capital Expenditure Account through the addition of Financial Regulation 6.11.

150. The capital expenditure proposals contained in this PWB are consistent with those included in the Medium Term Plan 2006-1123 except for the addition of US$ 2.5 million for the implementation of the Human Resource Management System during the next biennium. This responds to the Finance Committee’s advice at its May 2005 session that administrative information systems are a fundamental part of an effective Organization which should be accorded importance regardless of the budget level. The details of the planned capital expenditure on telephony services, shared data services, information technology support for meetings and administrative support systems can be found in the Programme Narratives for Chapter 8 in Annex I. The Finance Committee24 has already endorsed the cautious approach adopted by the Secretariat, in terms of the scope of eligible plans and level of funding, and the Council at its 127th session in November 2004 concurred with the endorsement of the capital expenditure proposals25.

151. The capital expenditure plans are limited to the most indispensable projects for 2006-07, and the extent to which the plans can be implemented is entirely dependent upon the funding available under the Facility, expected to be US$ 9.4 million under the ZRG and ZNG26 proposals for the forthcoming biennium, but higher under RG27.

152. The sources of funds for the Capital Expenditure Account are the Regular Programme Appropriation approved by Conference, voluntary contributions, recoveries from charges to users for the delivery of capital investment services and, exceptionally, the unexpended balance of arrears earmarked for non-recurring, one-time costs. An explanation of each of the sources of funds available in 2006-07 under ZRG is outlined below.

153. 2006-07 Funds earmarked for Chapter 8 – US$ 4.5 million. An amount of US$ 4.5 million is proposed to be directed to Chapter 8 to ensure an immediate flow of resources from the 2006-07 Appropriation to the Capital Expenditure Account.

154. Carry-forward from Arrears at 31/12/2005 – US$ 3.9 million. The Finance Committee at its 108th Session agreed to the proposal to carry-forward to the Capital Expenditure Account the 31 December 2005 unspent balance on Resolution 6/2001 Use of Arrears. The Committee recognised that many items detailed in Resolution 6/2001 fall under the definition of Capital Expenditure and that certain projects originally authorised under the Use of Arrears would run beyond 2005. Examples include the development of the Human Resources Management System (HRMS) and the Field Accounting System (FAS). The Council at its 127th session in November 2004 concurred with the Finance Committee’s recommendation.

155. Transfer of 2004-05 budget to Chapter 8 – none foreseen. In accordance with Financial Regulation 4.5, the Finance Committee can authorise transfers between budgetary chapters, including into Chapter 8. Earlier Capital Budgeting estimates in the MTP 2006-11 and the SPWB 2006-07 foresaw that a transfer of US$ 1 million into Chapter 8 would be requested in 2004-05 for operation

23 CL 127/7, paras. 624-645 24 CL 127/15, para. 79 25 CL 127/REP, para. 54 26 Zero real growth (ZRG); zero nominal growth (ZNG) 27 Real growth (RG)


of the Facility in 2006-07. Given the expectation of full utilisation of the 2004-05 Appropriation, a transfer into Chapter 8 is no longer foreseen.

156. Transfers from other chapters during 2006-07 implementation – US$ 1 million. Although the precise sources of funding can only be determined during implementation, the possibilities could include direct charges to beneficiary divisions for capital services and voluntary contributions.

157. The following table summarises the inflows and the outflows for the Capital Expenditure Account to arrive at a tentatively projected balance in Chapter 8 of US$ 0.3 million at the end of 2006-07 at ZRG. In accordance with Financial Regulation 6.11, this balance will be transferred to the Capital Expenditure Account for use in the subsequent financial period.

Planned Movements in the Capital Expenditure Account (US$ 000) Carry forward at 31/12/05 2006-07 Biennium

Planned Inflows Carry-forward from Arrears at 31/12/2005 3,900 Transfer of 2004-05 Budget to Chapter 8 0 Total Available Funds at 31.12.05 Carried Over to 2006-07 3,900 3,900 2006-07 Appropriation earmarked for Chapter 8 4,500 Transfers from other chapters during implementation 1,000 Total Additions in 2006-07 to Capital Expenditure Account 5,500 Total Funds Available in 2006-07 9,400 Planned Capital Expenditure Programme 811 Telephony Services 150 Programme 812 Shared Data Services 1,545 Programme 813 IT Support to Meetings 1,000 Programme 814 Administrative Information Systems Projects 6,400 Total Planned Expenditure in 2006-07 9,095 Closing Balance transferred to the Capital Expenditure Account 305

Overview of Cost Increases

Methodology

158. The methodology for the calculation of cost increases in 2006-07 follows the approach of previous biennia, which was approved by the Finance Committee, Council and Conference. As noted under the section on Risk Assessment, staff cost increases in particular remain difficult to predict despite the sophisticated information systems used to analyse current cost patterns and quantify trends.

159. As in previous biennia, the cost increase estimates in the PWB are developed based on actual cost adjustments that have occurred in the first year and a half of the current biennium and cost projections over the planning horizon. The resulting financial adjustments are sub-divided into biennialization and inflation.

160. Biennialization incorporates the full biennial effect of cost increases that have occurred or will materialise during the current biennium, but which will be incurred for the full 24 months in 2006-07. As such, biennialization objectively reflects the financial impact of events that will have already taken place before the implementation of the 2006-07 budget. The financial implications are essentially a matter of fact and arithmetic, not conjecture or long-range planning.

161. Inflation represents the cost impact in 2006-07 of those adjustments that are expected to take effect at various points in the next biennium. The planning assumptions are summarised below.


To assure prudent fiscal management and independent verification, external forecasts from the Economist Intelligence Unit and published data of authoritative bodies such as the International Civil Service Commission (ICSC) are used.

Analysis of Cost Increases

162. This section provides an overview of the cost increases needed to maintain purchasing power, which are estimated at US$ 47.7 million for the 2006-07 biennium at ZRG net of income28. This corresponds to a biennial cost increase rate of 5.7% of the Programme of Work (equivalent to a 3.7% annual increase), or 6.3% of the total net budget29.

163. The cost increase projections have increased by US$ 2.0 million from SPWB estimates. • This is partly on account of updated information available, particularly with respect to the

latest actuarial valuations for after service benefits (including medical benefits) in response to a request of the Finance Committee30 for more up-to-date information. This has led FAO to ask the actuaries to provide, in May 2005, updated service costs due to the weakening of the US dollar since the last valuation.

• Further adjustments arise from the application of cost increases to the proposed staff and non-staff input mix in the 2006-07 biennium. While the SPWB assumed the same input mix as the PWB 2004-05, changes between the current budget and the PWB 2006-07 in the proportion of staff and the distribution of posts across locations, alter the cost increase calculations.

164. The significant level of cost increases required to maintain purchasing power in 2006-07 is due primarily to cost escalation that has already occurred during the biennium, which is reflected under biennialization in the table below. To mitigate the financial effect of cost increases, the Organization has used the lowest figures possible in the range of assumptions for future inflation. This entails a moderate amount of risk that the overall estimates for cost increases are understated, particularly with respect to professional staff salaries, pensionable remuneration, overall medical costs, especially current service costs for After-service Medical Coverage (ASMC), and some future costs of certain goods and services.

Summary of Cost Increases at ZRG (US$ millions) PWB 2004-05

Programme Base

Biennalization Inflation Lapse Factor Total Cost Increases for

2006-07

2006-07 ZRG Budget after

Cost Increases

Personnel Services: Salaries, Pension Fund Contributions and Allowances

550.8 22.8 15.8 (1.5) 37.1 588.0

After Service Medical 10.3 2.3 0.7 0.0 3.0 13.2 Other After Service Benefits 16.8 2.0 1.0 0.0 3.0 19.8 Total Personnel Services 577.9 27.1 17.6 (1.6) 43.1 621.0 Total Goods and Services 284.7 0.0 6.5 6.4 291.2 Programme of Work 862.7 27.1 24.0 (1.6) 49.5 912.2 Less income (103.0) (0.3) (1.5) (1.8) (104.8) Net budget and additional requirements

759.7 26.9 22.5 (1.6) 47.7 807.5

28 Biennialization and Inflation include adjustments to the unit rate of staff cost reimbursement, reflected under income, amounting to US$ 1.8 million. 29 The overall reduction in resources at ZNG is derived by applying the 6.30% biennial cost increase to the reduced Programme of Work base required to remain at a total net budget level of US$ 749.1 million.This produces a real reduction in resources of approximately US$ 44.6 million. 30 CL 128/13, para. 48


165. Explanations are provided below for the most significant cost increases and the underlying assumptions by main cost heading.

Personnel Services 166. Personnel Services comprises all staff costs, including salaries, pension fund contributions, dependency allowances, social security and other staff related entitlements and after service benefits for both the professional and general service staff categories31. The increases in personnel services costs are exclusively those deriving from the UN common system, as reviewed by the ICSC and approved by the UN General Assembly.

167. Personnel Services are estimated to increase by 7.5% compared to the previous biennium (or 4.8% per year) and account for US$ 43.1 million (87%) out of the overall US$ 49.5 million cost increases for the 2006-07 Programme of Work. They are, in turn, primarily the effect of staff cost adjustments that are occurring in the current biennium, which are reflected under biennialization.

168. Biennialization accounts for US$ 26.9 million of the total cost increase in the net budget, due mainly to underbudgeting of unit staff cost rates in the current biennium32 arising from:

• the increase in Staff-Related Liabilities of some US$ 5.2 million due to a change in methodology in the actuarial valuation as at 31 December 2003 (US$ 4.2 million of this amount was unforeseen and unbudgeted);

• the rise in the Organization’s share of the premiums for the Basic Medical Insurance Plan was budgeted at 12% per year, while the actual increase in premiums in both 2004 and 2005 was 15%; this resulted in an effective 20% increase in the Organization’s share in 2004 on account of the cap on premiums payable by staff;

• increases in education grant, entitlement travel; and • the impact of a lower US dollar against local currencies in decentralized offices.

169. With regards to inflation, a total cost increase of US$ 16.1 million net of income is foreseen for personnel services based on estimates for the various cost components, including:

• for headquarters general service staff remuneration, an increase at 2% for both 2006 and 2007, somewhat lower than the Economist Intelligence Unit (EIU) Average Nominal Wages Index forecast for Italy for 2006 (2.4%) and 2007 (2.3%);

• for headquarters professional salaries, 1.6% for both 2006 and 2007, somewhat lower than Consumer Price Inflation Index (CPI) in Italy for 2006 (1.9%) and 2007 (1.8%); and

• an average of factors such as inflation indexes, exchange rate forecasts and recent past patterns of increases as applied to staff costs in other locations.

170. For pensionable remuneration, a somewhat lower rate than the EIU forecast for Average Nominal Wages Index for the United States for 2006 and 2007 is applied, at 2% for each year respectively. A 4.42% across-the-board increase in September 2004 in the scale of pensionable remuneration for the professional and higher categories has also been taken into account.

171. Following the sharp cost escalation in the current biennium, a slowing down of Basic Medical Insurance Plan cost increases is assumed in the next biennium with an 11% inflation for each year. The contract for the medical plan will come to an end in 2006 and, through the tendering process, cost containment measures are expected to materialise. It is, however, noted that medical inflation is on the rise and affecting most UN agencies in Europe, with an uncertain prospect for improvement.

172. Funding for after service staff benefits, including ASMC, is budgeted to increase in cost by US$ 1.7 million compared to the level set by the actuarial valuation of 31 December 2003, following an update from the Actuary in June 2005 to reflect movements in the euro - US dollar exchange

31 FC 108/11(b) contains a detailed description of the various benefits and allowances granted to internationally and locally recruited staff. 32 FC 110/2, paras. 4-5


rates. This additional cost is now included in the above estimates and explains in large part the rise in cost increases for staff since the SPWB.

173. Finally, no provision is included in the budget for the adjustment of local currencies against the US dollar in decentralized offices, which essentially implies that the exchange rate experienced in 2004 and 2005 is considered to be a reasonable assumption for the next biennium.

Goods and Services 174. This cost heading includes Other Human Resources, Travel, General Operating Expenses, Furniture, Equipment and Vehicles and is estimated to increase by 2.1% overall for the biennium due to inflation (equivalent to 1.4% per year).

175. Other Human Resources, which consists of non-staff human resources in the form of temporary assistance, consultants and contracts, is estimated to increase by 2.4% overall for the biennium due to inflation (1.6% per year). The calculation is based on the weighted average of the estimated nominal wage increase for Italy applied to headquarters-based expenditures and the consumer price index for goods and services. For decentralized expenditure the estimated increases are even lower.

176. Travel costs are projected to increase by 0.9% for the biennium in view of the low level of increases in air tariffs and DSA33, assuming that cost containment measures mentioned under Efficiencies and Productivity Improvements are implemented. The 1% inflationary increase in General Operating Expenses is based on the CPI for Italy applied to headquarters-based expenditures and lower inflation rates for the remaining part of expenditure, with a higher cost increase factor to take account of the particularly high cost escalation of certain utilities in Italy, e.g. electricity. Under Furniture, Equipment and Vehicles, it has been assumed that most of the expenditure will be incurred under international tendering provisions for which US rates of inflation are considered more appropriate.

177. At its September 2005 session the Finance Committee will review several options for funding the amortization of the ASMC. Such funding is not part of the Organization’s current or proposed Programme of Work for 2006-2007.

Lapse Factor

178. The lapse factor consists of a reduction of the budgetary provision for the estimated cost of established posts to account for the fact that some of them will be vacant for some time as a result of staff movements. The lapse factor methodology approved by the Council at its 107th session for application in the 1996-97 budget, has been consistently applied to all budgets since then and is, again, used for the Programme of Work and Budget 2006-07.

179. In accordance with this methodology, several new posts have been costed in the programme budget for only part of the next biennium, where the expected incumbency period is less than the full biennium.

180. The methodology for ongoing posts is based on three factors: • staff turnover rates, as measured through separations; • standard recruitment times; and • the extent to which separations are foreseen, so that recruitment action can be anticipated

and the effective lead time thus reduced.

181. In accordance with the established methodology, a five-year moving average (i.e. 2000 through 2004 inclusive) has been applied to calculate staff turnover rates. This results in an average turnover rate of 7.28% for professional staff and 6.24% for general service staff. Comparing to the five-year moving average used in the PWB 2004-05, the turnover rate has decreased by 0.43% for

33 Daily subsistence allowance


professionals (which declined below previous levels in 2003 and 2004) and increased only slightly, by 0.07%, for general service.

182. The current standard recruitment lead times are as follows: professional - 42 weeks or 0.81 years; and general service - 25 weeks or 0.48 years.

183. The extent of separations which can be foreseen is derived from a review of the reasons for separation, the results of which are summarised below.

Extent to which Recruitment Action can be Foreseen Professional General Service

Category of Separations % of Population

No. of weeks foreseen

% of Population

No. of weeks foreseen

Foreseen separations (e.g. mandatory retirements) 36% 42 weeks or more

24% 25 weeks

Foreseen separations for a limited period (e.g. resignations with notice)

54% 12 weeks 56% 8 weeks

Unforeseen separations 10% 0 weeks 20% 0 weeks

184. These results have been applied to calculate the 2006-07 lapse factor of 2.83% for professional and 1.75% for general service costs respectively, which translate into a corresponding budgetary reduction in staff costs.

185. It is noted that a technique to statistically reduce the cost of the staffing establishment has some merit in large organizational units within FAO, which can cope with a vacancy pending filling of the post. However, experience in the application of the lapse factor technique has demonstrated over the years that smaller units cannot “absorb” budgetary savings that are imposed by the lapse factor, and that the technique is tantamount to structural underbudgeting in these cases. The Secretariat will propose a refinement in the methodology at a future session of the Finance Committee.

Financial Analysis of the General and Related Funds and Related Draft Conference Resolution on

Miscellaneous Income

186. The General and related funds comprise three distinct elements which together characterise the overall financial health of the Organization:

• the most significant caption is the General Fund, which reflects the accumulated historical result of all receipts from assessments on Members, miscellaneous and other income, offset by cumulative expenditures to execute the Programme of Work;

• the Working Capital Fund (WCF), which is authorised at a level of US$ 25 million, its primary purpose being to advance monies to the General Fund to finance expenditures pending receipt of assessed contributions to the budget. The WCF can also be used to finance emergency activities not contemplated in the budget;

• the Special Reserve Account (SRA), which is authorised at a level of 5% of the effective working budget (currently US$ 37.5 million). Its primary purpose is to protect the Programme of Work against the effects of unbudgeted extra costs arising from adverse currency fluctuations and unbudgeted inflationary trends. The SRA can also advance monies on a reimbursement basis to the WCF.

187. The breakdown of the General and related funds as at 31 December 2003 (i.e. from the latest available audited accounts), is summarised as follows:


General and Related Funds Equity Position as at 31 December 2003 US$ Millions

General Fund Balance/(Accumulated Deficit) (90.1) Working Capital Fund 25.2 Special Reserve Account 23.0 Total Reserves and Fund Balances/(Deficit) at 31 December 2003 (41.9)

188. The significant accumulated deficit under the General Fund at 31 December 2003 can be largely explained by:

• the treatment of arrears in assessed contributions from Members; and • the recognition of After-service Medical Coverage costs in the accounts of the

Organization.

189. Outstanding payments of assessed contributions are not recognised in the accounts. However, the accumulated deficit of US$ 90.1 million as at 31 December 200334 is covered by outstanding arrears in assessed contributions from Members, amounting to US$ 97.7 million at the same date.

190. The Organization’s accounting policy with respect to ASMC is similar to that of the international accounting standards and the policy of some other UN organizations. At the same time, it is more prudent than the policy presently adopted by the United Nations itself and several other agencies, as recognised by Council35. For example, the United Nations recognises ASMC liabilities only to the extent of the payments actually incurred every biennium on retiring or separated staff. However, this is currently under review with the assistance of a recognised firm of actuaries, to see how the matter can be brought in line with best practice.

191. In the case of FAO, since 1998 the governing bodies have approved the following approach: • the current service costs, as determined in the actuarial valuation, are planned in the

Regular Budget and charged in the accounts; and • the unrecorded liabilities for past service determined by the actuarial valuation are being

amortized over 30 years for ASMC.

192. The accumulated deficit at 31 December 2003 includes charges for ASMC amortization amounting to US$ 49.5 million which are not funded and have augmented the accumulated deficit by a corresponding amount. However, at 31 December 2003 ASMC liabilities not yet recorded amount to US$ 202.9 million. While the above clarifications provide a justification for the accumulated deficit balance on the General Fund at 31 December 2003, the difficulty is real. The accumulated deficit will grow in 2004-05 and will continue to rise unless further action is taken.

193. The Conference approved additional funding in 2004-05 of US$ 14.1 million for ASMC in 2003 and the Finance Committee and Council were subsequently informed in 2004 and 2005, that according to the latest actuarial report, the current funding would need to increase significantly to cover the ASMC liabilities. The result of the latest valuation as at 31 December 2004 that was delivered by the Actuary in early August 2005 shows that the amortization of the ASMC for the 2006-07 biennium, using the original 30-year amortization period which began in 1998, amounts to US$ 40.8 million. Options for dealing with the funding of the ASMC liabilities are submitted to the governing bodies in a separate document36.

34 This includes the effect of the balance of one-time expenditures authorised by the Conference against the major contributor’s arrears payments (US$ 41.4 million). 35 CL 128/REP, para. 103 36 FC 110/16


194. The governing bodies have also been informed37, and Council has expressed concern38, that delays in the receipt of assessed contributions continue to exacerbate the cash position of the General Fund, requiring monies to be advanced to the General Fund from the WCF and SRA on a more frequent and continuing basis. There will be a requirement for external borrowing during 2005 unless significant contributions from Members are received earlier than was the case in 2004.

195. The Organization must, therefore, seek solutions to reverse the trend of an increasing accumulated deficit under the General Fund, or at least to stabilise it, and to improve the cash flow situation. A partial solution concerns the treatment of Miscellaneous Income in arriving at the assessment of the contributions to the biennial budget.

196. In accordance with Financial Regulation 7.4, Miscellaneous Income shall be estimated for each financial period. The estimates are provided in every Programme of Work and Budget, and the amounts put forward during the past three biennia are tabulated below:

Miscellaneous Income Description 2000-01 2002-03 2004-05

Rental of Conference and Office facilities 196 100 100 Investment Earnings 4,000 4,500 4,500 Less discounts payable (1,200) (600) (600) Lapse of accrued liabilities 3,700 2,500 5,000 Contributions from New/Associate Members 100 100 100 Sundry 100 95 95 TOTAL ESTIMATED MISCELLANEOUS INCOME 6,896 6,695 9,195

197. In accordance with Financial Regulation 5.2(a), in the assessment of contributions of Members and Associate Members for each financial period, adjustments shall be made in respect of estimated Miscellaneous Income of the financial period in respect of which the assessment of contributions is being made. Thus, in arriving at the assessments on Members, the resolution on the budgetary Appropriation makes a deduction for the estimated Miscellaneous Income in the Programme of Work and Budget.

198. It is befitting to recall the rationale for this treatment of Miscellaneous Income. Under Financial Regulation 7.4, if the actual Miscellaneous Income ... exceeds or is less than the estimate, such excesses or such shortfall shall form part of the surplus or deficit of that financial period. Moreover, under Financial Regulation 6.1(b), any cash surplus in the General Fund at the close of any financial period shall be allocated among Member Nations. Therefore, the practice of estimating Miscellaneous Income is aimed at projecting the likely surplus in the General Fund at the end of a biennium. Assuming full implementation of the Programme of Work, the deduction of Miscellaneous Income from assessments serves to obviate the need to raise assessments for the portion that would anyway have to be distributed to Members after the implementation cycle.

199. In fact, the governing bodies have already recognised the risk in this approach should the level of forecast Miscellaneous Income not eventuate, with the consequent adverse effect on the delivery of the Programme of Work. For this reason “the Council asked the Director-General to prepare conservative estimates of Miscellaneous Income for the purpose of determining the level of payment of contributions from Member Nations”39.

200. For 2006-07, Miscellaneous Income is estimated at US$ 6 million (US$ 3.2 million lapse of accrued liabilities, US$ 2.5 million investment earnings, and US$ 0.3 million other), which is less than 1% of the proposed Appropriation. This estimate is based in part on actual and projected Miscellaneous Income in 2004-05 in the amount of US$ 7 million, which is US$ 2 million less than the deduction from Members’ assessments.

37 FC 109/4, FC 110/3 38 CL 128/REP, para. 93 39 CL 91/REP, para. 278


201. The reality now is that the Organization has a large and growing accumulated deficit in the General Fund. Therefore, the basis for reducing the assessed contributions to a figure that is lower than the net Appropriation, on the assumption that the Organization will have a cash surplus, is no longer valid. In the light of such circumstances, it would be prudent fiscal management to fully fund the net Appropriation.

202. The Secretariat is proposing that the governing bodies fully fund the net Appropriation from 2006-07 by temporarily suspending the application of Financial Regulation 5.2(a), which requires adjustments to be made to the assessments in respect of estimated Miscellaneous Income, until such time as a cash surplus is available in the General Fund for allocation among Member Nations in accordance with Financial Regulation 6.1(b). As noted by Council, this would not create a precedent in the UN system, as in the case of ILO and UNESCO40, Member Nations fully fund the budget.

203. A draft resolution in this regard is presented for consideration by Conference.

Draft Resolution for Adoption by Conference

Miscellaneous Income

THE CONFERENCE, Noting that, at its Hundred and ninth Session (Rome, 9-13 May 2005), the Finance Committee reiterated its concern with the deteriorating accumulated deficit in the General Fund and the difficult cash flow situation of the Organization; Noting, in particular, that, at the same Session, the Finance Committee reviewed the Director-General's proposal that, as a means of helping to address cash flow difficulties in the General Fund, in the assessment of the contributions of Member Nations no deductions should be made in respect of estimated Miscellaneous Income of the financial period for which the assessment of contributions is being made, until such time as the Organization returns to a stronger financial and cash flow position, and agreed to transmit such proposal to the Council; Noting further the deliberations of the Joint Meeting of the Programme and Finance Committees on 11 May 2005, which was apprised of the justification for the Director-General's proposal that Member Nations be required to pay their assessed contributions, without deduction of Miscellaneous Income; Recalling that the Council, at its Hundred and Twenty-eighth Session (Rome, 20-25 June 2005), in directly addressing the financial risks related to FAO's cash flow difficulties, considered the proposal to require Member Nations to pay their Assessed Contributions without deduction of Miscellaneous Income as transmitted by the Finance Committee and agreed to receive more specific proposals in the full PWB; Recalling further that the Council, at its Hundred and Twenty-ninth Session (Rome, 16-18 November 2005),...; Decides, notwithstanding Financial Regulation 5.2(a), that no deductions shall henceforth be made in the assessment of contributions for estimated Miscellaneous Income, until such time as a cash surplus in the General Fund materialises.

40 International Labour Organization (ILO); United Nations Educational, Scientific and Cultural Organization (UNESCO)


Funding of the Budget

204. The table below provides an overview of the funding of the 2006-07 budget under the four resource scenarios requested by Council, including HRG41 covered in the Supplement.

205. Whilst unrelated to the 2006-07 Programme of Work, the Thirty-second session of the Conference, in 2003, addressed the funding for the amortization of the After-service Medical Coverage as part of the Appropriation resolution. It approved an additional assessment of US$ 14.1 million for 2004-05.

206. Under the split assessments methodology adopted by Conference Resolution 11/200342, the assessments on the budget are due in US dollars and euro, as shown in the shaded sections of the table below, with 46% due in US dollars and 54% due in euro at the budget rate for the 2006-07 biennium. The Secretariat has recommended to the Finance Committee that the ASMC amortization funding decided by Members should be made in both US dollars and euro in the proportions recommended in the Asset and Liability Study, i.e. 40% in US dollars and 60% in euro, at the budget rate for the 2006-07 biennium.

207. It is recalled that the assessed split contributions in euros and US dollars do not vary under different exchange rate assumptions. Nonetheless, for information purposes, the assessments shown in the table below are also expressed in US dollars, which is the Organization’s functional currency for accounting purposes. For 2006-07, a budget rate of € 1 = US$ 1.19 is proposed, which was the spot rate at the beginning of July 2005, when the PWB was being finalised. The budget rate adopted for 2004-05 was also € 1 = US$ 1.19.

Budget Level and Funding (Assuming 1 Euro = 1.19 US$) 2006-07 PWB ZNG 2006-07 PWB ZRG 2006-07 PWB RG 2006-07 PWB HRG

Budgetary Appropriation (all amounts in millions) Appropriation approved for 2004-05 (US$) 749.1 749.1 749.1 749.1 Programme Change (US$) (44.6) 0.0 30.9 69.9 Appropriation at 2004-05 costs (US$) 704.5 749.1 780.0 819.0 Security cost escalation (US$) 0.0 10.6 10.6 10.6 Other Cost Increases (US$) 44.6 47.7 50.1 52.6 Appropriation at 2006-07 costs (US$) 749.1 807.4 840.7 882.2 Appropriation assessments due in US$ (46%)

344.6 371.4 386.7 405.8

Appropriation assessments due in Euro (54%), calculated at 2006-07 budget rate of 1 Euro =US$1.19

339.9 366.4 381.5 400.3

After-service Medical Coverage (all amounts in millions) Funding for amortization of ASMC for 2006-07 (US$)

14.1

ASMC assessments due in US$ (40%) 5.6 ASMC assessments due in Euro (60%), calculated at 2006-07 budget rate of 1 Euro =US$1.19

7.1

Note: At ZNG budget level, the Organization's security expenditures are funded at the 2002-03 budget level (i.e., US$ 8.8 million).

41 Higher real growth (HRG) 42 The performance of the split assessment arrangement is further described in C 2005/16.


Draft Resolution for Adoption by the Conference

Budgetary Appropriations 2006-07

THE CONFERENCE, Having considered the Director-General's Programme of Work and Budget: 1. Approves a total net Appropriation of US$ 840,725,000 for the financial period 2006-07 and approves the

Programme of Work proposed by the Director-General for 2006-07 as follows: a. Appropriations are voted for the following purposes: US$ Chapter 1: General Policy and Direction 65,036,000 Chapter 2: Technical and Economic Programmes 368,235,000 Chapter 3: Cooperation and Partnerships 163,675,000 Chapter 4: Technical Cooperation Programme 109,486,000 Chapter 5: Support Services 60,945,000 Chapter 6: Common Services 43,469,000 Chapter 7: Contingencies 600,000 Chapter 8: Capital Expenditure 8,835,000 Chapter 9: Security Expenditure 20,444,000 Total Appropriation (Net) 840,725,000 Chapter 10: Transfer to Tax Equalization Fund 86,043,000 Total Appropriation (Gross) 926,768,000 b. The appropriations (gross) voted in paragraph (a) above, plus an amount of US$ 14,100,000 to fund

the amortization of After Service Medical Coverage (ASMC), shall be financed by assessments on Member Nations, thus resulting in assessments against Member Nations of US$ 940,868,000.

c. In establishing the actual amounts of contributions to be paid by individual Member Nations, the

assessment of each Member Nation shall be reduced by any amount standing to its credit in the Tax Equalization Fund provided that the credit of a Member Nation that levies taxes on the salaries, emoluments and indemnities received from FAO by staff members shall be reduced by the estimated amounts of such taxes to be reimbursed to the staff member by FAO. An estimate of US$ 5,900,000 has been withheld for this purpose.

d. The contributions due from Member Nations in 2006 and 2007 shall be paid in accordance with the

scale adopted by the Conference at its Thirty-third Session, which contributions, after the deduction of amounts standing to the credit of Member Nations in the Tax Equalization Fund, result in net amounts payable totalling US$ 860,725,000.

e. The contributions shall be established in US dollars and euro and shall consist of US$ 398,274,000

and euro 388,615,000, which represents a split of 46% US dollars and 54% euro for the budgetary appropriation and a split of 40% US dollars and 60% euro for the ASMC.

f. The foregoing Appropriations are calculated at the rate of euro 1 = US$ 1.19.


OVERVIEW OF PROPOSALS

Approach to Priority Setting

208. The approach for overall planning and management of Regular Programme resources includes three areas of scrutiny:

• the search for greater efficiencies, cost recovery improvements and productivity gains in programme delivery across the entire Organization, as spelled out in the corresponding section above;

• the opportunities to minimise the cost of delivering non-technical programmes, for instance general policy, governance, administration and common services. Results-based principles have been applied for the first time to non-technical programmes and technical cooperation areas in the Medium Term Plan (MTP) 2006-11 and pursued in this PWB. The discipline of auto-evaluation is also progressively applied to these programmes, improving the capacity to identify areas for programme and resource adjustments; and

• with respect to the technical and economic activities, priorities first come into play in the major formulation effort which occurs in the development of the MTP, where criteria analysis is used to determine the priority to be accorded to the programme entities that will contribute to the achievement of the strategic objectives.

209. The three criteria in the first category are those more relevant to informing the process of allocating resources in any scenario. Based on the scores of these three criteria, the entities and related planned resources were critically reviewed at the MTP stage. The PWB proposals take account of the substantive balance in the MTP to the maximum extent possible. While this is, of course, easier to do in the context of real growth opportunities, it was nevertheless attempted within the constraints of ZRG and ZNG budget levels.

210. Four more specific factors were taken into account by senior management, departments and offices in proposing changes to substantive thrusts and resource allocations to programmes and entities within each scenario, recognising, however, that the external environment continues to evolve rapidly:

• the guidance provided by the Council and its Committees - Programme, Finance, Agriculture, Fisheries, Forestry, Commodity Problems, World Food Security – reflecting the expressed priority of Members on programme and resource allocation priorities;

• regional areas of emphasis as articulated by the Regional Conferences and factored in to allocation of resources to substantive areas of work in the decentralized offices;

• identification of activities that could be substantially reduced or eliminated in order to limit programme fragmentation and address areas of insufficient critical mass, drawing attention to the consequent impact; and

• where appropriate, use of the results of recent independent programme and strategy evaluations and of auto-evaluations in deciding on the future of individual entities.

211. In developing the ZNG scenario with its large resource decline from ZRG levels, three differentiated priority levels were identified at the programme entity level. These permitted the development of aggregate resource reduction targets at major programme level:

• highest priorities considered as fully protected, i.e. keeping allocations to present levels; these comprised only a few areas where commitments existed with third parties;

• high priority areas, generally scoring high on the first category of priority setting criteria, which were partially protected. It is noted that the Technical Cooperation Programme (TCP) was only partially protected, although its share of the Appropriation was increased to 14%; and

• other priority areas, i.e. areas which were required to absorb a higher reduction than the preceding group.


Definition and Import of Resource Scenarios

Definitions 212. At its 128th session in June 2005 the Council concluded its discussion of the Summary PWB (SPWB) by looking forward to considering in the full PWB proposals on zero real growth (ZRG), real growth (RG), higher real growth (HRG) and zero nominal growth (ZNG). HRG and attendant reform proposals are covered in the separate Supplement.

213. The Organization’s approach to overall planning and management of Regular Programme resources, as described under the preceding section, is applied to all four resource scenarios and has been used to develop the proposed budgetary allocations and programme proposals. Thus, managers have taken account of potential efficiencies and applied the established priority setting criteria, focusing on the main thrusts and planned achievements approved in the MTP 2006-11, particularly the first biennium of the Plan period, across all locations.

214. Before turning to a summary of the programme implications, the resource scenarios are defined as follows, together with a short justification for the overall resource levels.

Zero Real Growth 215. Zero real growth corresponds to the budget level needed to maintain purchasing power of the Organization’s programmes, which requires financial provision for the estimated amount of cost increases. The ZRG scenario establishes the baseline for the other scenarios. Like other organizations of the UN system, FAO has been confronted with escalating costs of security (for both staff and premises) in the aftermath of the events of 11 September 2001. The requirements for security in 2006-07 are US$ 19.4 million, as set forth in the section on Security Expenditure Facility above. The related incremental expenditures since the PWB 2002-03 was prepared, have reached an amount of US$ 10.6 million on a biennial basis. Yet, during this period of substantial security cost escalation, the budget of the Organization has endured a significant real decline, particularly in 2004-05. The inevitable result is that security cost escalation has thus far been absorbed at the expense of the Organization’s substantive programmes.

216. During the deliberations of the SPWB 2006-07 by the governing bodies, many Members requested that the substantive work of the Organization be protected in the face of mounting security costs. Accordingly, the Director-General proposes that under the new Chapter 9: Security Expenditure, US$ 8.8 million be drawn from various provisions for security budgeted in the PWB 2002-03 and the remaining US$ 10.6 million be funded as an exceptional security cost escalation that has been forced upon the Organization. This approach recognises the responsibility of Members to collectively provide adequate resources for a safe working environment. Moreover, separate incremental funding for security costs has become a customary practice in some other UN organizations, such as the UN and IAEA43.

217. Therefore, the ZRG budget proposal is adjusted upwards by US$ 10.6 million from a current net budget of US$ 749.1 million to US$ 759.7 million, to reinstate the purchasing power of the Organization’s substantive programmes. This adjustment is applied to: 1) correcting structural under-budgeting (US$ 4.8 million) - resulting from past absorption of security cost increases - in the FAOR network and general policy and common services; 2) providing additional resources (US$ 1.4 million) for high priority areas including the “right to food”, the Secretariat of the International Treaty on Plant Genetic Resources for Food and Agriculture (IT-PGRFA) and central support for inter-disciplinary activities; and 3) establishing a higher institutional provision for Capital Expenditures, including the HRMS44 project (US$ 4.5 million).

Real Growth 218. The Director-General’s Real Growth proposals maintain an absolute level of real growth of

43 International Atomic Energy Agency 44 Human Resources Management System


US$ 30.9 million before cost increases, as proposed in the SPWB. This is equivalent to an increase beyond ZRG of 2.4% in 2006 and 2.5% in 2007, which corresponds to the average gross domestic product (GDP) growth expected among the major contributors.

219. The MTP 2006-11, which indicated a budgetary increase of US$ 22.9 million for 2006-07, was used as the starting point for preparing the RG scenario for 2006-07, given that the substantive content was endorsed by the Council at its 127th session in November 2004.

220. Of the additional US$ 8 million compared with the MTP, US$ 3.5 million would be provided for work on capacity-building in the application of international regulatory frameworks, US$ 0.4 million to provide additional catalytic funding for auto-evaluation under Chapter 1, and US$ 4.1 million to Chapter 8: Capital Expenditure, as shown in Programme Budget Table 2.

Higher Real Growth 221. The HRG scenario would involve an overall biennial growth rate of 9.25%, as expressly requested by the Council. This amounts to a net increase in the budget beyond ZRG of US$ 70 million, before cost increases. It would thus permit allocation of additional resources amounting to US$ 39 million over the RG scenario, which was considered by many Members as not being commensurate with the requirements of the Membership, particularly in achieving the Millennium Development Goals (MDGs). It is covered in the Supplement to this main document.

Zero Nominal Growth 222. The ZNG resource level is defined as the programme of work that leads to the same nominal level of net appropriation for the next biennium as the current appropriation, which amounts to US$ 749.1 million in 2004-05. An appropriation of US$ 749.1 million to implement the 2006-07 programme of work, which is planned to continue to be collected through a system of split assessments as approved by the last Conference, therefore, implies that the estimated cost increases (see section on Cost Increases) need to be “absorbed”. This corresponds to an overall real reduction in resources of approximately US$ 44.6 million, or 6.3%. In this scenario, security expenditures have been budgeted at the 2002-03 budget level (US$ 8.8 million). Funding of unbudgeted security expenditures estimated at US$ 10.6 million would be left to decisions of Members.

Import of the scenarios 223. The programme narratives in Annex I describe, under each chapter and major programme, as appropriate, the substantive thrusts of the baseline ZRG scenario, the additional activities which would be made possible by the RG scenario and the impact of ZNG reductions. As noted above, the areas of emphasis and de-emphasis, and the resulting resource allocations, are based on application of the priority setting criteria and more specific factors including governing body guidance, regional areas of emphasis (as described in Annex II), results of evaluations and efforts to limit fragmentation in a rapidly evolving external environment. A summary of these implications for each scenario is provided below.

Zero Real Growth – Main substantive thrusts 224. The aggregate budgetary provisions at major programme level for the current biennium were taken as the starting point in establishing the overall resource levels for 2006-07. They were adjusted for areas of structural under-budgeting arising from US$ 51.2 million real reductions imposed in the 2004-05 budget and expressions of high priority including in areas of capital expenditure. The adjustments included the reinstatement of resources for the Finance (AFF) and Policy Assistance (TCA) Divisions requested by the governing bodies in 2004.

225. In order to maintain continuity between the programme achievements articulated in the MTP 2006-11 (as endorsed by the Council) and the proposals in the PWB, only a few exceptional adjustments to the programme structure have been proposed.

• Auto-evaluation was introduced in 2004 as a valuable tool for learning and decision- making on individual programme entities. A new, centrally-managed programme entity under Programme 1.2.2: Evaluation is proposed to identify and provide catalytic funding to the units undertaking auto-evaluations.


• Under Major Programme 2.1: Agricultural Production and Support Systems, the support to the Secretariat of the IT-PGRFA will be provided through a new entity under Programme 2.1.2: Crops, once the first meeting of the governing body for the Treaty has taken place during the biennium.

• In Major Programme 2.2: Food and Agriculture Policy and Development a new programme entity is established for follow-up action on the Voluntary Guidelines to Support the Progressive Realization of the Right to Adequate Food in the Context of National Food Security.

• Under Major Programme 2.5: Contributions to Sustainable Development and Special Programme Thrusts, activities under two entities relating to education and extension are shifted from Programme 2.5.1 to Programmes 2.5.2 and 2.5.3.

• In order to emphasise the country focus of FAO’s policy work, and to reduce programme fragmentation, some entities under Major Programme 3.1: Policy Assistance have been merged and redesigned.

226. Under Chapter 1: General Policy and Direction, there is no major change, except for some realignment of resources across programmes in Major Programme 1.1: Governing Bodies and the above-mentioned adjustments to correct for structural under-budgeting in Major Programme 1.2: Policy, Direction and Planning, as well as US$ 0.4 million to support auto-evaluations under Programme 1.2.2: Evaluation.

227. Major Programme 2.1: Agricultural Production and Support Systems will continue to give priority to supporting standard setting processes and the development of appropriate policy and regulatory frameworks in areas such as plant and animal genetic resources, biotechnology, biosecurity, animal health, and assist with sustainable development and management of natural resources, in particular water. Work on moisture conservation techniques in rainfed areas; disaster mitigation through waterlogging and salinity control and rehabilitation; and related studies and inputs to major fora as well as farm mechanisation, will be de-emphasised, and work on seed networks and weed management will be reduced.

228. The provision under Programme 2.1.2: Crops is increased by nearly US$ 1 million in connection with the IT-PGRFA including its Secretariat, implementation of the IPPC45 and scientific advice to Codex through shifts from other programmes. EMPRES would initiate work on other transboundary plant pests and diseases beyond the current focus on desert locust. Programme 2.1.3: Livestock will strengthen work on national disease prevention and management systems with priority given to transboundary animal diseases, including those of zoonotic nature such as avian influenza, particularly in the context of the FAO/OIE46 Global Framework for the Progressive Control of Transboundary Animal Diseases (GF-TADs), under EMPRES47 and through ECTAD48. A major event will be the First International Technical Conference on Animal Genetic Resources in 2007. The catalytic provision to support the work under approved PAIAs49 will be augmented (entity 210S5).

229. Major Programme 2.2: Food and Agriculture Policy and Development will continue its much valuable leading role in collection and dissemination of information, analytical studies, early warning work and assistance to countries in areas such as: Codex standards and food safety, nutrition improvement, agricultural trade and commodities. The modernised statistical system FAOSTAT50, and its country version CountryStat, will come into operation with revised methodologies and dissemination tools. Similarly, improved access to FAO information resources under the

45 International Plant Protection Convention 46 World Organisation for Animal Health (OIE) 47 Emergency Prevention System for Transboundary Animal and Plant Pests and Diseases 48 Emergency Centre for Transboundary Animal Disease Operations 49 Priority Areas for Inter-disciplinary Action 50 Corporate Database for Substantive Statistical Data


WAICENT51 framework and coherence in agricultural information will be pursued. A technical Consultation on Agricultural Information Management (COAIM) will be reinstated during the biennium. The above mentioned new programme entity under Programme 2.2.0 on Implementing Voluntary Guidelines on the Right to Adequate Food in the context of National Food Security will receive an initial provision of US$ 0.5 million made possible by shifts from other programmes.

230. Major Programme 2.3: Fisheries will further address the implementation of the Code of Conduct for Responsible Fisheries (CCRF), the International Plans of Action (IPOAs) endorsed by COFI52, and other international instruments. Major areas of emphasis will include: advice on policies to pursue responsible and sustainable development in fisheries and aquaculture; the newly adopted Strategy-STF53; monitoring of the resources; support to aquaculture development; assistance to small-scale and artisanal fishing communities; participation in international reconstruction efforts in Tsunami-affected areas; and strengthening of the FAO regional fishery commissions. No major shifts are required among the component programmes.

231. Major Programme 2.4: Forestry will also maintain the balance among its component programmes which address key environmental, economic and social dimensions of sustainable forest management. Major areas of emphasis include: FAO leadership in the international forest agenda, primarily through the Collaborative Partnership on Forests; further strengthening of international cooperation on forest fires; assistance to national capacity-building and forest programmes and projects in countries, including the National Forest Programme Facility; support to Regional Forestry Commissions and continued analysis and dissemination of information, including statistics, national and global forest resource assessments.

232. Under Major Programme 2.5: Contributions to Sustainable Development and Special Programme Thrusts, considerable rebalancing across programmes has been effected, shifting resources from Programme 2.5.1 (US$ 7.1 million) to Programmes 2.5.2 (US$ 4.7 million) and 2.5.3 (US$ 2.4 million) with expected improved focus and coherence. The major programme will continue to ensure FAO’s leadership in the follow-up to the WSSD54, and lead organization-wide efforts in relation to SARD55, gender and HIV/AIDS. It will pursue assistance in such areas as: communication for development, education, training, land tenure, bioenergy, geo-spatial data infrastructure and multilateral environmental conventions. It will also contribute further to strengthening national capacities in research and technology and close cooperation with regional and international agricultural research systems through the Secretariats of the CGIAR56 Science Council and the GFAR57. The Regular Budget provision for the SPFS58 (2.5.6) will keep its catalytic nature in supporting a fast expanding programme.

233. Under Chapter 3: Cooperation and Partnerships, the exceptionally high resource reductions imposed in the current budget on TCA outposted teams under Major Programme 3.1, will be partially reinstated (US$ 1.3 million). The Investment Centre (TCI) is expected to continue to work closely with its international and national partners to generate investment for agriculture and rural development (Major Programme 3.2). An increase (US$ 0.38 million) in the small Regular Programme share of Programme 3.3.3 is made to strengthen TCE's59 capacity to deal with rehabilitation programmes, while actions to adjust compensation due to the Organization for

51 World Agricultural Information Centre 52 Committee on Fisheries 53 Strategy for Improving Information on Status and Trends of Capture Fisheries 54 World Summit on Sustainable Development 55 Sustainable agriculture and rural development 56 Consultative Group on International Agricultural Research 57 Global Forum on Agricultural Research 58 Special Programme for Food Security 59 Emergency Operations and Rehabilitation Division


operating extra-budgetary funded emergency projects will seek to ensure adequate reimbursement of FAO’s costs. Some resources (US$ 2.5 million) are also restored to Major Programme 3.4 to partially address structural under-funding of the FAOR network, which are otherwise far short of the current cost of the network and the requirements for an effective follow-up to the Independent Evaluation of FAO’s Decentralization. The programme adjustments will inter alia allow FAO to meet in a more satisfactory manner requests for policy and strategic advice and to pursue effective field programme development. In doing so, FAO will ensure close links with national development plans, PRSPs60, and UNDAF61.

234. Under Chapter 4, the Technical Cooperation Programme will respond to specific requests for assistance by Members with greater attention and stronger integration with other processes at the country level. The decisions of FAO governing bodies on the TCP’s future orientation, particularly its focus on the World Food Summit target and the MDGs, and actions to strengthen and streamline TCP operations, with greater delegation to country offices, will be progressively implemented.

235. Programme budget adjustments under Chapter 5: Support Services and Chapter 6: Common Services comprise the reinstatement of some resources (US$ 0.67 million) to the Finance Division (AFF), as recommended by the Finance Committee, and provision of additional resources (US$ 1.7 million) for common services to partially correct for under-budgeting of infrastructure maintenance.

236. Chapter 8: Capital Expenditure - it is recalled that Conference Resolution 10/2003 established a Capital Expenditure Facility, including a new Chapter 8 of the PWB for the purposes of defining and authorising capital expenditures for the corresponding biennial period. The proposals under Chapter 8 total slightly over US$ 9 million, and include the following areas: administrative information systems development, in particular the HRMS project; acquisition of server hardware and software for administrative applications; telephony equipment; and equipment for meeting rooms.

237. Chapter 9: Security Expenditure - under the proposed Security Expenditure Facility (SEF), the new Chapter 9 would define staff and non-staff security provisions and expenditures at headquarters and in the field. The chapter comprises two major programmes: 9.1 addressing headquarters security, including related coordination with government authorities, and 9.2 covering security in field locations, including FAO’s active participation in both centrally-managed programmes of the UN unified security management system and in country-level Security Management Teams.

Import of Real Growth 238. Under Chapter 1, additional catalytic funding of US$ 0.4 million beyond the ZRG level is provided for auto-evaluations under Programme 1.2.2.

239. Under Major Programme 2.1, RG would allow in particular to strengthen: • work on the IT-PGRFA to build national and regional capacities and the implementation

of the Global Plan of Action (GPA) for PGRFA; • catalytic central support to PAIAs; • water use efficiency and conservation activities (e.g. on-farm water control techniques,

irrigation system modernisation and management); • the implementation of the IPPC, by accelerating harmonisation and standard setting

programmes and for technical assistance; • work on critical animal health and production aspects (e.g. environmental and disease risk

assessment and management, the Global Early Warning System for TADs, pro-poor livestock development policies);

• support to policy and institutional measures for private sector marketing, agribusiness development and agro-industry innovation;

60 Poverty Reduction Strategy Papers 61 United Nations Development Assistance Framework


• the practical applications generated by the Joint FAO/IAEA Division (AGE62) aimed at solving specific development problems.

240. Under Major Programme 2.2, real growth conditions would inter alia facilitate: • the design of national FIVIMS63 that specifically address institutional issues; • the capacity of the Codex Secretariat for information dissemination, as well as capacity-

building in countries related to Codex activities; • the expansion of the modernised FAOSTAT to countries through CountryStat; • the development of more efficient WAICENT access tools for Members; • effective methodologies for crop and food supply assessments; • enhanced assistance to countries to implement trade agreements.

241. Under Major Programme 2.3, the main benefits of RG would be in terms of: • enhanced information on fisheries (Strategy-STF); • improved monitoring of marine ecosystems relevant to fisheries; • expanded capacity-building for small-scale fisheries development.

242. Under Major Programme 2.4, RG would facilitate: • translating agreed concepts of sustainable management of forests into action and related

sharing of experiences; • expanded advice related to the Kyoto Protocol; • comprehensive studies of forests and forestry for the 2030 horizon; • meeting the high demands for national forestry policy frameworks and institutional

arrangements.

243. Regarding Major Programme 2.5, RG would allow to: • reinforce normative activities and policy assistance regarding the impact of HIV/AIDS and

other diseases on household and national food security; • enhance capacity-building for decision-makers in designing and implementing policies and

best practices for SARD; • increase the RP provision to support the SPFS.

244. Under Chapter 3, RG would principally allow for: • assistance to countries in coping with new treaties, regional integration mechanisms and

globalisation challenges; • restoration by TCI of a satisfactory level of cooperation with partner financial institutions

other than the World Bank; • responsiveness and capacity of service delivery by FAORs at a more sustainable level.

245. Under Chapter 4, the RG net increase of US$ 4.1 million would clearly augment the capacity of the TCP Appropriation to meet requests from countries, including for emergencies.

246. Under Chapter 5, real growth funding would be used to speed up AFH64 implementation of the Plan of Action for Human Resources.

247. Chapter 8: Capital Expenditure would be increased by US$ 4.1 million to provide for HRMS and other capital projects.

Impact of Zero Nominal Growth 248. The US$ 51.2 million or 6.4% real reduction in the present biennium entailed a more severe cut than the absorption of cost increases normally expected in a zero nominal growth scenario. This

62 Joint FAO/IAEA Division of Nuclear Techniques in Food and Agriculture 63 Food Insecurity and Vulnerability Information and Mapping System 64 Human Resources Management Division


has left several areas of the Organization’s programme of work seriously under-funded. Again in 2006-07, the ZNG scenario could require abolition of some 200 positions. Even assuming that such action were feasible immediately after the required 232 post abolitions in 2004-05, additional costs for redeployment and separation of staff, tentatively estimated at up to US$ 10 million, have not been absorbed in the ZNG proposals. Furthermore, US$ 10.6 million in requirements for security needs of staff and premises are unfunded under the ZNG proposals.

249. Under Chapter 1, despite largely fixed costs, cuts in staff and non-staff provisions would be necessary in several offices (AUD, LEG, PBE, SAD), reducing support to the governance structures and results-based management, which would put at risk the governance, oversight and accountability framework.

250. Major Programme 2.1 would be affected in several ways, including: • delayed implementation of the programme of work of the CGRFA65; • reduced activities on land degradation and conservation, soil fertility and nutrient

management; • elimination of support to the International Network of ex-situ collections of PGRFA; • although the allocation to the IPPC would still be higher than in the current biennium, if

compared to the ZRG proposal there would be lower participation of developing countries in IPPC standard setting and less IPPC outreach activities (information systems and technical assistance);

• reduced support to countries in relation to integrated pest management, pesticide management, crop improvement and biotechnology;

• delays in the interactive Global Livestock Production and Health Atlas (GLiPHA) and in the establishment of national and regional livestock policy negotiation platforms;

• less work on good practices for addressing food-borne diseases and new measures for zoonoses control, and also lower support to the Programme Against Animal Trypanosomiasis (PAAT);

• work on early warning and disease control strategy design and implementation under EMPRES would become fully dependent on extra-budgetary funding;

• elimination of technical support and information systems relating to farm power and mechanisation and of direct assistance for improving the business capacities of farmer organizations;

• reduced policy and institutional guidance relating to agribusiness, supply chain management and commercial farming;

• curtailment of outputs in the Joint FAO/IAEA on the use of the sterile insect technique against the Mediterranean fruit fly, molecular characterization of animal genetic resources and veterinary public health.

251. Under Major Programme 2.2, some telling examples of negative impact are: • the need to adjust the structure, duration and documentation of CFS66 meetings; • scaling down of FIVIMS objectives (reduced statistical data collection and analysis,

technical assistance to countries, work on nutritional assessment and country nutrition profiles);

• elimination of new entities proposed in the MTP, undermining FAO’s analytical capacity in fast-changing external contexts;

• drastic reductions in work on food composition, less nutrition publications, capacity-building workshops and training activities;

• while relative protection has been afforded to Codex and Codex-related work, there would be a need to eliminate six sessions of FAO/WHO67 Regional Coordinating Committees;

65 Commission on Genetic Resources for Food and Agriculture 66 Committee on World Food Security


• cancelled work on environmental statistics, as well as income and investment statistics, delays in the development of additional indicators for measurement of food security, and fewer new CountryStat countries;

• impaired development of the WAICENT corporate framework and the programme to bridge the rural digital divide;

• reduced expenditures on promotion and dissemination of SOFA68 and other supportive analytical studies, providing the underpinning of Global Food and Agricultural Perspective Studies;

• fewer projects formulated and submitted to the Common Fund for Commodities, and reduced documents and analyses for the IGGs69.

252. As regards Major Programme 2.3, ZNG conditions would negatively affect data quality, timeliness and responses to requests for information. Work on fishing fleet statistics would be cancelled, impairing monitoring of implementation of the IPOA on fishing capacity. Other areas which would have to be reduced include: the identification and cataloguing of commercial fish species; the assessment and monitoring of world marine fishery resources; guidelines for fishery resources assessments and fisheries management; national workshops/meetings for the promotion of sustainable aquaculture; projection of world fish consumption by 2020; technical meetings and publications; support to regional fishery bodies.

253. Concerning Major Programme 2.4, ZNG would imply much lower activities in Low Forest Cover Countries (LFCC), making them mostly subject to extra-budgetary funding. Support in combating desertification and implementing the UNCCD would have to be severely reduced. One statutory body - Silva Mediterranea - could be eliminated. ZNG would force curtailment of support to countries in the prevention and control of forest fires and to forest fire networks. It would not be possible to initiate new regional forestry outlook studies and update previous ones. Work on forest products trade and environment would be eliminated. Planned activities to address inadequacies in forestry institutions as a result of the HIV/AIDS pandemic, especially in Africa, would be halted. Support to the United Nations Forum on Forests and other dimensions of the international arrangement on forests would be curtailed.

254. Under Major Programme 2.5, ZNG would imply reductions in: • support to environmental agreements and promotion of integrated environmental planning

and management; • technology enhancement for GIS70 and remote sensing data for early warning systems; • technical assistance and capacity-building in biotechnology and biosafety; • support to networks among national research bodies and stakeholders; • follow-up work to the UN Roundtable on Communication for Development and the

forthcoming WCCD71; • policy advice and technical assistance to countries in the context of the initiative on

Education for Rural People (ERP); • policy materials and methodologies to strengthen national agricultural extension systems,

including extension capacity for the prevention and mitigation of HIV/AIDS; • support to policies and practices for SARD, making work on the latter virtually dependent

on extra-budgetary resources; • headquarters support to the UN System Network on Rural Development and Food

Security;

67 World Health Organization 68 The State of Food and Agriculture 69 Intergovernmental Commodity Groups 70 Geographical Information System 71 World Congress on Communication for Development


• support for up-scaling of the SPFS and to South-South Cooperation (SSC) agreements; • FAO’s financial support to the CGIAR Science Council and its Secretariat, and technical

assistance to NARS72.

255. Under Chapter 3, ZNG conditions would force a return to cuts affecting policy assistance posts in the regions, impacting on FAO’s capacity to assist with the implementation of the MDGs and the Organization’s capacity to assess field programme opportunities. Work with financial institutions other than the World Bank would be reduced by approximately 25% versus the current level of Investment Support Programme (ISP) work. The preparation of reports on field programme performance and the capacity to address problems related to field programme operations would be undermined. The coordination of activities related to cooperation with NGOs/CSOs73 and with the private sector, as well as the decentralized cooperation programme may also be affected.

256. However, under Major Programme 3.4, a major effort is made to minimise the negative impact of ZNG on the network of country offices. This is achieved by modifying the preferential treatment afforded to the TCP under Chapter 4, departing from full protection in the SPWB, to sustain its percentage to the total budget at 14% under this scenario in the full PWB.

257. Under Chapter 5, the General Affairs and Information Department would not be able to maintain the level of editorial and production quality of information materials, and would also need to reduce media services. AFF would need to eliminate posts, weakening internal financial controls, while the frequency of local audits in field offices would be reduced with self-evident impact. Among other things, AFI74 would be required to reduce significantly its information systems development services, while AFH would also reduce activities and services in key areas such as recruitment, post management and staffing services. The Management Support Service in AFD would also have to eliminate critical Help Desk functions and other support to users throughout the Organization.

258. Under Chapter 6, the ZNG level would entail serious maintenance shortfalls on the premises which would lead to additional costs in the long term, and other reductions in common services at all locations. The inability of the Organization to meet its obligations regarding ordinary maintenance could place the Organization in the position of not being able to comply with the basic health and safety standards established by law.

259. Under Chapter 9, security expenditures have been budgeted only at the level of the 2002-03 PWB, that is US$ 8.8 million, with US$ 10.6 million in requirements left unfunded.

Overview of Total Resource Availability

260. The following table provides an overview of the total resource availability for both the ZRG and RG scenarios, consisting of the net Appropriations voted by Conference, other income, and voluntary contributions.

261. The first row of the table shows the net Appropriation, with the ZRG proposal amounting to US$ 759.7 million, including the US$ 10.6 million in increased costs for security and the RG scenario which is a US$ 30.9 million programme increase over ZRG.

262. The main change in the category Other Income credited to the General Fund arises from the inclusion of transfers from the Capital Expenditure Account, defined in this table as “Other Items”, in the ZRG and RG scenarios. As further explained under the section entitled Capital Budgeting, planned inflows relate to carry-forward from arrears.

72 National Agricultural Research Systems 73 Non-governmental Organizations (NGOs); Civil Society Organizations (CSOs) 74 Information Systems and Technology Division


263. Under the category Other Income not credited to the General Fund, the main change arises from a proposed increase in the support costs rate for emergency projects, to be earned from the expected minimum level of extra-budgetary funded emergency and early rehabilitation projects in the next biennium together with an improved support cost income recovery policy for Emergency Projects75.

Overview of Total Resource Availability (Before Cost Increases, US$ 000) 2004-05 2006-07 ZRG 2006-07 RG

Net Appropriations voted by Conference 749,100 759,700 790,601 Voluntary Contributions under Financial Regulation 6.7: To Other Income Other Income credited to the General Fund in the Financial Accounts World Bank 22,264 21,600 21,600 Other Financial Institutions 7,492 7,013 8,313 Technical Support Services 5,542 6,761 6,854 Project Servicing Costs and Administrative and Operational Support Services

31,897 33,898 33,898

Government Counterpart Cash Contributions 1,820 2,484 2,534 Terminal Reports 1,244 1,118 1,118 Other Items (e.g. Reimbursements for Administrative Services to WFP, CODEX, and transfers from the Capital Expenditure Account)

3,976 8,702 8,733

Total Other Income credited to the General Fund in the Financial Accounts

74,235 81,575 83,049

Other Income not credited to the General Fund in the Financial Accounts Co-sponsors to Science Council 3,735 4,040 4,040 Direct Operating Costs charged to Emergency Projects 12,834 16,033 16,033 Other Items (e.g. Miscellaneous Secondments) 1,107 1,379 1,379 Total Other Income not credited to the General Fund in the Financial Accounts

17,676 21,452 21,452

Total Other Income 91,911 103,027 104,501 Resources Available for the Programme of Work 841,011 862,727 895,102 Voluntary Contributions under Financial Regulation 6.7: To Trust Fund UNDP Projects - Total 13,370 22,014 22,014 Less: Project Servicing Costs (1,200) (1,426) (1,426) Emergency Projects - Total 214,680 241,033 241,033 Less: Direct Operating Costs charged to Emergency Projects (12,834) (16,033) (16,033) Less: Project Servicing Costs (667) (200) (200) Other Trust Fund Projects 316,779 456,711 456,711 Less: Project Servicing Costs (30,030) (32,274) (32,274) Less: Technical Support Services (5,542) (6,761) (6,854) Total Estimated Trust Fund Income 494,556 663,064 662,971 TOTAL ESTIMATED RESOURCES AVAILABLE 1,335,567 1,525,791 1,558,073

75 FC 110/4

Sum

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35

,374

69

7 34

,677

26

9 (2

0)

289

35,6

43

677

34,9

66

25

Con

trib

utio

ns to

Sus

tain

able

Dev

elop

men

t and

Spe

cial

Pr

ogra

mm

e Th

rust

s 56

,376

5,

182

51,1

94

342

314

27

56,7

18

5,49

6 51

,222

2 Te

chni

cal a

nd E

cono

mic

Pro

gram

mes

34

2,44

6 13

,311

32

9,13

6 1,

744

(109

) 1,

854

344,

191

13,2

01

330,

990

31

Polic

y A

ssis

tanc

e 29

,653

86

2 28

,792

2,

359

414

1,94

5 32

,013

1,

276

30,7

37

32

Supp

ort t

o In

vest

men

t 55

,128

29

,654

25

,474

(1

89)

326

(515

) 54

,940

29

,980

24

,959

33

Fi

eld

Ope

ratio

ns

24,6

46

20,5

40

4,10

6 (3

23)

1,29

0 (1

,614

) 24

,323

21

,830

2,

493

34

FAO

Rep

rese

ntat

ives

82

,247

11

,832

70

,414

31

0 97

9 (6

69)

82,5

56

12,8

11

69,7

46

35

Coo

pera

tion

with

Ext

erna

l Par

tner

s 11

,800

1,

955

9,84

5 1,

752

719

1,03

3 13

,552

2,

674

10,8

77

39

Prog

ram

me

Man

agem

ent

2,28

8 14

7 2,

141

29

12

16

2,31

6 15

9 2,

157

3 C

oope

rati

on a

nd P

artn

ersh

ips

205,

762

64,9

89

140,

772

3,93

8 3,

741

197

209,

700

68,7

30

140,

970

41

Tech

nica

l Coo

pera

tion

Prog

ram

me

98,6

45

0 98

,645

0

0 0

98,6

45

0 98

,645

42

TC

P U

nit

4,38

2 0

4,38

2 59

3

57

4,44

2 3

4,43

9 4

Tech

nica

l Coo

pera

tion

Pro

gram

me

103,

027

0 10

3,02

7 59

3

57

103,

087

3 10

3,08

4 51

In

form

atio

n an

d Pu

blic

atio

ns S

uppo

rt

18,0

64

0 18

,064

(1

21)

13

(134

) 17

,944

13

17

,931

52

A

dmin

istr

atio

n 48

,402

7,

051

41,3

51

(1,4

18)

960

(2,3

78)

46,9

83

8,01

1 38

,972

5

Supp

ort

Serv

ices

66

,466

7,

051

59,4

15

(1,5

39)

973

(2,5

12)

64,9

27

8,02

4 56

,903

6

Com

mon

Ser

vice

s 52

,486

3,

692

48,7

94

(6,0

88)

1,60

4 (7

,691

) 46

,398

5,

295

41,1

03

7 C

onti

ngen

cies

60

0 0

600

0 0

0 60

0 0

600

8 C

apit

al E

xpen

ditu

re

0 0

0 9,

095

4,59

5 4,

500

9,09

5 4,

595

4,50

0 91

H

eadq

uart

ers

Secu

rity

0

0 0

7,56

3 11

7,

553

7,56

3 11

7,

553

92

Fiel

d Se

curi

ty

0 0

0 12

,435

7

12,4

29

12,4

35

7 12

,429

9

Secu

rity

Exp

endi

ture

0

0 0

19,9

99

17

19,9

81

19,9

99

17

19,9

81

Tota

l 84

1,01

1 91

,911

74

9,10

0 21

,716

11

,116

10

,600

86

2,72

7 10

3,02

7 75

9,70

0


Tabl

e 2:

Sum

mar

y of

Pro

gram

me

of W

ork

and

App

ropr

iati

on b

y C

hapt

er a

nd M

ajor

Pro

gram

me

at 2

004-

05 C

osts

for

RG

(U

S$ 0

00)

Maj

or

20

06-0

7 Z

RG

Pro

posa

l R

G P

rogr

amm

e C

hang

e 20

06-0

7 R

G P

ropo

sal

Prog

ram

me

and

Des

crip

tion

Pr

ogra

mm

e Le

ss:

App

ropr

iati

on P

rogr

amm

e Le

ss:

App

ropr

iati

on P

rogr

amm

e Le

ss:

App

ropr

iati

on

Cha

pter

of W

ork

Inco

me

of

Wor

k In

com

e

of W

ork

Inco

me

11

G

over

ning

Bod

ies

19,2

15

159

19,0

56

0 0

0 19

,215

15

9 19

,056

12

Po

licy,

Dir

ectio

n an

d Pl

anni

ng

29,4

96

2,22

5 27

,271

40

0 0

400

29,8

96

2,22

5 27

,671

13

Ex

tern

al C

oord

inat

ion

and

Liai

son

16,0

20

778

15,2

42

0 0

0 16

,020

77

8 15

,242

1

Gen

eral

Pol

icy

and

Dir

ecti

on

64,7

31

3,16

1 61

,570

40

0 0

400

65,1

31

3,16

1 61

,970

21

A

gric

ultu

ral P

rodu

ctio

n an

d Su

ppor

t Sys

tem

s 10

4,44

7 2,

644

101,

802

5,75

1 0

5,75

1 11

0,19

8 2,

644

107,

553

22

Food

and

Agr

icul

ture

Pol

icy

and

Dev

elop

men

t 99

,897

2,

442

97,4

55

4,82

7 5

4,82

2 10

4,72

4 2,

447

102,

277

23

Fish

erie

s 47

,487

1,

942

45,5

45

2,08

5 25

2,

060

49,5

72

1,96

7 47

,605

24

Fo

rest

ry

35,6

43

677

34,9

66

1,47

3 18

1,

455

37,1

16

695

36,4

21

25

Con

trib

utio

ns to

Sus

tain

able

Dev

elop

men

t and

Spe

cial

Pr

ogra

mm

e Th

rust

s 56

,718

5,

496

51,2

22

2,08

9 20

2,

069

58,8

07

5,51

6 53

,291

2 Te

chni

cal a

nd E

cono

mic

Pro

gram

mes

34

4,19

1 13

,201

33

0,99

0 16

,225

68

16

,157

36

0,41

6 13

,269

34

7,14

7 31

Po

licy

Ass

ista

nce

32,0

13

1,27

6 30

,737

28

4 40

24

4 32

,297

1,

316

30,9

81

32

Supp

ort t

o In

vest

men

t 54

,940

29

,980

24

,959

2,

300

1,30

0 1,

000

57,2

40

31,2

80

25,9

59

33

Fiel

d O

pera

tions

24

,323

21

,830

2,

493

0 0

0 24

,323

21

,830

2,

493

34

FAO

Rep

rese

ntat

ives

82

,556

12

,811

69

,746

3,

950

50

3,90

0 86

,506

12

,861

73

,646

35

C

oope

ratio

n w

ith E

xter

nal P

artn

ers

13,5

52

2,67

4 10

,877

0

0 0

13,5

52

2,67

4 10

,877

39

Pr

ogra

mm

e M

anag

emen

t 2,

316

159

2,15

7 0

0 0

2,31

6 15

9 2,

157

3 C

oope

rati

on a

nd P

artn

ersh

ips

209,

700

68,7

30

140,

970

6,53

4 1,

390

5,14

4 21

6,23

4 70

,120

14

6,11

4 41

Te

chni

cal C

oope

ratio

n Pr

ogra

mm

e 98

,645

0

98,6

45

4,00

0 0

4,00

0 10

2,64

5 0

102,

645

42

TCP

Uni

t 4,

442

3 4,

439

100

0 10

0 4,

542

3 4,

539

4 Te

chni

cal C

oope

rati

on P

rogr

amm

e 10

3,08

7 3

103,

084

4,10

0 0

4,10

0 10

7,18

7 3

107,

184

51

Info

rmat

ion

and

Publ

icat

ions

Sup

port

17

,944

13

17

,931

0

0 0

17,9

44

13

17,9

31

52

Adm

inis

trat

ion

46,9

83

8,01

1 38

,972

1,

016

16

1,00

0 47

,999

8,

027

39,9

72

5 Su

ppor

t Se

rvic

es

64,9

27

8,02

4 56

,903

1,

016

16

1,00

0 65

,943

8,

040

57,9

03

6 C

omm

on S

ervi

ces

46,3

98

5,29

5 41

,103

0

0 0

46,3

98

5,29

5 41

,103

7

Con

ting

enci

es

600

0 60

0 0

0 0

600

0 60

0 8

Cap

ital

Exp

endi

ture

9,

095

4,59

5 4,

500

4,10

0 0

4,10

0 13

,195

4,

595

8,60

0 91

H

eadq

uart

ers

Secu

rity

7,

563

11

7,55

3 0

0 0

7,56

3 11

7,

553

92

Fiel

d Se

curi

ty

12,4

35

7 12

,429

0

0 0

12,4

35

7 12

,429

9

Secu

rity

Exp

endi

ture

19

,999

17

19

,981

0

0 0

19,9

99

17

19,9

81

Tota

l 86

2,72

7 10

3,02

7 75

9,70

0 32

,375

1,

474

30,9

01

895,

102

104,

501

790,

601


Tabl

e 3:

Sum

mar

y of

Pro

gram

me

of W

ork

and

App

ropr

iati

on b

y C

hapt

er a

nd M

ajor

Pro

gram

me

at 2

004-

05 C

osts

for

ZN

G (

US$

000

) M

ajor

2006

-07

ZR

G P

ropo

sal

ZN

G P

rogr

amm

e C

hang

e 20

06-0

7 Z

NG

Pro

posa

l Pr

ogra

mm

e

an

d D

escr

ipti

on

Prog

ram

me

Less

: A

ppro

pria

tion

Pro

gram

me

Less

: A

ppro

pria

tion

Pro

gram

me

Less

: A

ppro

pria

tion

C

hapt

er

of

Wor

k In

com

e

of W

ork

Inco

me

of

Wor

k In

com

e

11

Gov

erni

ng B

odie

s 19

,215

15

9 19

,056

(1

,559

) 0

(1,5

59)

17,6

57

159

17,4

98

12

Polic

y, D

irec

tion

and

Plan

ning

29

,496

2,

225

27,2

71

(953

) 23

0 (1

,183

) 28

,543

2,

455

26,0

88

13

Exte

rnal

Coo

rdin

atio

n an

d Li

aiso

n 16

,020

77

8 15

,242

(2

70)

0 (2

70)

15,7

50

778

14,9

72

1 G

ener

al P

olic

y an

d D

irec

tion

64

,731

3,

161

61,5

70

(2,7

82)

230

(3,0

12)

61,9

49

3,39

1 58

,558

21

A

gric

ultu

ral P

rodu

ctio

n an

d Su

ppor

t Sys

tem

s 10

4,44

7 2,

644

101,

802

(6,9

66)

76

(7,0

42)

97,4

80

2,72

0 94

,760

22

Fo

od a

nd A

gric

ultu

re P

olic

y an

d D

evel

opm

ent

99,8

97

2,44

2 97

,455

(7

,052

) 60

(7

,112

) 92

,845

2,

502

90,3

43

23

Fish

erie

s 47

,487

1,

942

45,5

45

(3,1

33)

22

(3,1

55)

44,3

53

1,96

4 42

,390

24

Fo

rest

ry

35,6

43

677

34,9

66

(2,1

32)

261

(2,3

93)

33,5

10

938

32,5

72

25

Con

trib

utio

ns to

Sus

tain

able

Dev

elop

men

t and

Spe

cial

Pr

ogra

mm

e Th

rust

s 56

,718

5,

496

51,2

22

(3,5

72)

(50)

(3

,522

) 53

,146

5,

446

47,7

00

2 Te

chni

cal a

nd E

cono

mic

Pro

gram

mes

34

4,19

1 13

,201

33

0,99

0 (2

2,85

6)

369

(23,

225)

32

1,33

5 13

,570

30

7,76

5 31

Po

licy

Ass

ista

nce

32,0

13

1,27

6 30

,737

(1

,960

) (1

24)

(1,8

36)

30,0

52

1,15

2 28

,901

32

Su

ppor

t to

Inve

stm

ent

54,9

40

29,9

80

24,9

59

(2,7

67)

(675

) (2

,092

) 52

,173

29

,305

22

,868

33

Fi

eld

Ope

ratio

ns

24,3

23

21,8

30

2,49

3 (7

02)

0 (7

02)

23,6

21

21,8

30

1,79

1 34

FA

O R

epre

sent

ativ

es

82,5

56

12,8

11

69,7

46

(704

) 0

(704

) 81

,853

12

,811

69

,042

35

C

oope

ratio

n w

ith E

xter

nal P

artn

ers

13,5

52

2,67

4 10

,877

(1

,360

) (3

6)

(1,3

24)

12,1

91

2,63

8 9,

553

39

Prog

ram

me

Man

agem

ent

2,31

6 15

9 2,

157

(37)

0

(37)

2,

279

159

2,12

0 3

Coo

pera

tion

and

Par

tner

ship

s 20

9,70

0 68

,730

14

0,97

0 (7

,530

) (8

35)

(6,6

95)

202,

169

67,8

95

134,

274

41

Tech

nica

l Coo

pera

tion

Prog

ram

me

98,6

45

0 98

,645

(4

,000

) 0

(4,0

00)

94,6

45

0 94

,645

42

TC

P U

nit

4,44

2 3

4,43

9 (1

8)

0 (1

8)

4,42

3 3

4,42

1 4

Tech

nica

l Coo

pera

tion

Pro

gram

me

103,

087

3 10

3,08

4 (4

,018

) 0

(4,0

18)

99,0

68

3 99

,066

51

In

form

atio

n an

d Pu

blic

atio

ns S

uppo

rt

17,9

44

13

17,9

31

(1,2

02)

0 (1

,202

) 16

,741

13

16

,728

52

A

dmin

istr

atio

n 46

,983

8,

011

38,9

72

(2,8

18)

143

(2,9

61)

44,1

65

8,15

4 36

,011

5

Supp

ort

Serv

ices

64

,927

8,

024

56,9

03

(4,0

20)

143

(4,1

63)

60,9

06

8,16

7 52

,740

6

Com

mon

Ser

vice

s 46

,398

5,

295

41,1

03

(3,5

18)

0 (3

,518

) 42

,880

5,

295

37,5

85

7 C

onti

ngen

cies

60

0 0

600

0 0

0 60

0 0

600

8 C

apit

al E

xpen

ditu

re

9,09

5 4,

595

4,50

0 0

0 0

9,09

5 4,

595

4,50

0 91

H

eadq

uart

ers

Secu

rity

7,

563

11

7,55

3 (6

34)

0 (6

34)

6,92

9 11

6,

919

92

Fiel

d Se

curi

ty

12,4

35

7 12

,429

(9

,935

) 0

(9,9

35)

2,50

1 7

2,49

4 9

Secu

rity

Exp

endi

ture

19

,999

17

19

,981

(1

0,56

8)

0 (1

0,56

8)

9,43

0 17

9,

413

Tota

l 86

2,72

7 10

3,02

7 75

9,70

0 (5

5,29

3)

(93)

(5

5,20

0)

807,

434

102,

934

704,

500


Tabl

e 4:

Sum

mar

y of

Cos

t In

crea

ses

on 2

006-

07 P

rogr

amm

e of

Wor

k an

d A

ppro

pria

tion

by

Cha

pter

and

Maj

or P

rogr

amm

e fo

r Z

RG

(U

S$ 0

00)

Maj

or

20

06-0

7 Z

RG

Pro

posa

l bef

ore

Cos

t In

crea

ses

Cos

t In

crea

ses

2006

-07

ZR

G P

ropo

sal a

fter

Cos

t In

crea

ses

Prog

ram

me

and

Des

crip

tion

Pr

ogra

mm

e Le

ss:

App

ropr

iati

on

Prog

ram

me

Less

: A

ppro

pria

tion

Pr

ogra

mm

e Le

ss:

App

ropr

iati

on

Cha

pter

of W

ork

Inco

me

of

Wor

k In

com

e

of W

ork

Inco

me

11

G

over

ning

Bod

ies

19,2

15

159

19,0

56

754

0 75

4 19

,969

15

9 19

,810

12

Po

licy,

Dir

ectio

n an

d Pl

anni

ng

29,4

96

2,22

5 27

,271

1,

438

0 1,

438

30,9

34

2,22

5 28

,709

13

Ex

tern

al C

oord

inat

ion

and

Liai

son

16,0

20

778

15,2

42

728

0 72

8 16

,748

77

8 15

,970

1

Gen

eral

Pol

icy

and

Dir

ecti

on

64,7

31

3,16

1 61

,570

2,

920

0 2,

920

67,6

51

3,16

1 64

,489

21

A

gric

ultu

ral P

rodu

ctio

n an

d Su

ppor

t Sys

tem

s 10

4,44

7 2,

644

101,

802

6,86

2 0

6,86

2 11

1,30

8 2,

644

108,

664

22

Food

and

Agr

icul

ture

Pol

icy

and

Dev

elop

men

t 99

,897

2,

442

97,4

55

5,19

5 0

5,19

5 10

5,09

3 2,

442

102,

650

23

Fish

erie

s 47

,487

1,

942

45,5

45

2,73

1 0

2,73

1 50

,218

1,

942

48,2

76

24

Fore

stry

35

,643

67

7 34

,966

2,

168

0 2,

168

37,8

11

677

37,1

34

25

Con

trib

utio

ns to

Sus

tain

able

Dev

elop

men

t and

Sp

ecia

l Pro

gram

me

Thru

sts

56,7

18

5,49

6 51

,222

3,

123

0 3,

123

59,8

41

5,49

6 54

,345

2 Te

chni

cal a

nd E

cono

mic

Pro

gram

mes

34

4,19

1 13

,201

33

0,99

0 20

,079

0

20,0

79

364,

270

13,2

01

351,

069

31

Polic

y A

ssis

tanc

e 32

,013

1,

276

30,7

37

3,16

7 0

3,16

7 35

,180

1,

276

33,9

04

32

Supp

ort t

o In

vest

men

t 54

,940

29

,980

24

,959

2,

046

1,16

7 87

9 56

,985

31

,147

25

,838

33

Fi

eld

Ope

ratio

ns

24,3

23

21,8

30

2,49

3 1,

847

561

1,28

6 26

,170

22

,391

3,

779

34

FAO

Rep

rese

ntat

ives

82

,556

12

,811

69

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10

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0

10,6

22

93,1

78

12,8

11

80,3

67

35

Coo

pera

tion

with

Ext

erna

l Par

tner

s 13

,552

2,

674

10,8

77

686

23

663

14,2

38

2,69

7 11

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39

Pr

ogra

mm

e M

anag

emen

t 2,

316

159

2,15

7 10

6 0

106

2,42

2 15

9 2,

263

3 C

oope

rati

on a

nd P

artn

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ips

209,

700

68,7

30

140,

970

18,4

73

1,75

1 16

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22

8,17

3 70

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15

7,69

2 41

Te

chni

cal C

oope

ratio

n Pr

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mm

e 98

,645

0

98,6

45

2,00

6 0

2,00

6 10

0,65

1 0

100,

651

42

TCP

Uni

t 4,

442

3 4,

439

185

0 18

5 4,

627

3 4,

624

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cal C

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rati

on P

rogr

amm

e 10

3,08

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103,

084

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2,19

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5,27

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105,

276

51

Info

rmat

ion

and

Publ

icat

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Sup

port

17

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13

17

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97

5 0

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18,9

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13

18,9

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52

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inis

trat

ion

46,9

83

8,01

1 38

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1,

922

0 1,

922

48,9

05

8,01

1 40

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5

Supp

ort

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ices

64

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8,

024

56,9

03

2,89

7 0

2,89

7 67

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8,

024

59,8

00

6 C

omm

on S

ervi

ces

46,3

98

5,29

5 41

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2,

253

0 2,

253

48,6

52

5,29

5 43

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7

Con

ting

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es

600

0 60

0 0

0 0

600

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0 8

Cap

ital

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endi

ture

9,

095

4,59

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224

0 22

4 9,

319

4,59

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724

91

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dqua

rter

s Se

curi

ty

7,56

3 11

7,

553

185

0 18

5 7,

749

11

7,73

8 92

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eld

Secu

rity

12

,435

7

12,4

29

255

0 25

5 12

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12,6

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9 Se

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ty E

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19,9

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441

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1 20

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17

20

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To

tal

862,

727

103,

027

759,

700

49,4

80

1,75

1 47

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91

2,20

7 10

4,77

8 80

7,42

8


Tabl

e 5:

Est

imat

e of

200

6-07

Pro

gram

me

of W

ork

and

Trus

t Fu

nd A

ctiv

itie

s by

Cha

pter

and

Maj

or P

rogr

amm

e at

200

4-05

Cos

ts fo

r R

G (

US$

000

) M

ajor

2004

-05

Bud

get

Pro

gram

me

Ch

ange

20

06-0

7 R

G P

rop

osal

Pro

gram

me

and

D

escr

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on

Pro

gram

me

Tru

st

Tot

al

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cen

t P

rogr

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rust

T

otal

P

rogr

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eT

rust

T

otal

P

erce

nt

Ch

apte

r

of W

ork

Fu

nd

Act

ivit

ies

of T

otal

of

Wor

k F

und

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ctiv

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k F

und

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ctiv

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s of

Tot

al

11

Gov

erni

ng B

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s 19

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17

19

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1.

4%

(382

) (1

7)

(399

) 19

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0

19,2

15

1.2%

12

Po

licy,

Dir

ectio

n an

d Pl

anni

ng

28,2

36

284

28,5

20

2.0%

1,

660

499

2,15

9 29

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78

3 30

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2.

0%

13

Exte

rnal

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rdin

atio

n an

d Li

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n 22

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81

3 23

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1.

7%

(6,3

70)

(813

) (7

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) 16

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0

16,0

20

1.0%

1

Gen

eral

Pol

icy

and

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ecti

on

70,2

24

1,11

4 71

,338

5.

1%

(5,0

93)

(331

) (5

,424

) 65

,131

78

3 65

,914

4.

2%

21

Agr

icul

tura

l Pro

duct

ion

and

Supp

ort S

yste

ms

102,

927

360,

898

463,

825

33.3

%

7,27

1 8,

840

16,1

11 1

10,1

98 3

69,7

38

479,

936

30.7

%

22

Food

and

Agr

icul

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Pol

icy

and

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elop

men

t 10

0,54

7 43

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14

3,71

1 10

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4,

177

8,99

6 13

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104

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52

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15

6,88

4 10

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23

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sher

ies

47,2

23

29,1

11

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34

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2,

349

18,6

60

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97,3

43

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24

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rest

ry

35,3

74

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81,5

54

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(3,3

22)

(1,5

80)

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74

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25

C

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to S

usta

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le D

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peci

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ram

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57,9

62

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2,

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59,3

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58,8

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17,3

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%

2 Te

chni

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Pro

gram

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34

2,44

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17

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92

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99

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9 63

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31

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licy

Ass

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nce

29,6

53

9,18

7 38

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8%

2,64

3 5,

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8,28

4 32

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14

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32

Supp

ort t

o In

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t 55

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6 55

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2,11

1 3,

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8 57

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33

Fi

eld

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ratio

ns

24,6

46

0 24

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(323

) 0

(323

) 24

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0

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23

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34

FA

O R

epre

sent

ativ

es

82,2

47

93

82,3

40

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260

(93)

4,

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06

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5%

35

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pera

tion

with

Ext

erna

l Par

tner

s 11

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2,

831

14,6

31

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1,

752

16,8

30

18,5

82

13,5

52

19,6

61

33,2

13

2.1%

39

Pr

ogra

mm

e M

anag

emen

t 2,

288

67

2,35

5 0.

2%

29

(67)

(3

8)

2,31

6 0

2,31

6 0.

1%

3 C

oope

rati

on a

nd P

artn

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ips

205,

762

12,6

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218,

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15.7

%

10,4

72

25,7

38

36,2

10 2

16,2

34

38,3

92

254,

626

16.3

%

41

Tech

nica

l Coo

pera

tion

Prog

ram

me

98,6

45

0 98

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0 0

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102,

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42

TC

P U

nit

4,38

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159

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542

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pera

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Pro

gram

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107,

187

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51

In

form

atio

n an

d Pu

blic

atio

ns S

uppo

rt

18,0

64

0 18

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(121

) 81

0 68

9 17

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0 18

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2%

52

Adm

inis

trat

ion

48,4

02

0 48

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5%

(402

) 0

(402

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0

47,9

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5

Supp

ort

Serv

ices

66

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0

66,4

66

4.8%

(5

23)

810

287

65,9

43

810

66,7

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6

Com

mon

Ser

vice

s 52

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1,

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54,4

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3.9%

(6

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) (1

,982

) (8

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) 46

,398

0

46,3

98

3.0%

7

Con

ting

enci

es

600

0 60

0 0.

0%

0 0

0 60

0 0

600

0.0%

8

Cap

ital

Exp

endi

ture

0

0 0

0.0%

13

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0

13,1

95

13,1

95

0 13

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0.

8%

91

Hea

dqua

rter

s Se

curi

ty

0 0

0 0.

0%

7,56

3 0

7,56

3 7,

563

0 7,

563

0.5%

92

Fi

eld

Secu

rity

0

0 0

0.0%

12

,435

0

12,4

35

12,4

35

0 12

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8%

9 Se

curi

ty E

xpen

ditu

re

0 0

0 0.

0%

19,9

99

0 19

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19

,999

0

19,9

99

1.3%

To

tal

841,

011

553,

065

1,39

4,07

6 10

0.0%

54

,091

116

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170

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895

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669

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1,5

64,9

30 1

00.0

%



ANNEX I: PROGRAMME NARRATIVES

Chapter 1: General Policy and Direction (all amounts in US$ 000)

Major Programme 2004-05 Programme of Work

ZRG 2006-07 Programme of Work

ZNG 2006-07 Programme of Work

RG 2006-07 Programme of Work

Trust Fund

11 Governing Bodies 19,598 19,215 17,657 19,215 0 12 Policy, Direction and

Planning 28,236 29,496 28,543 29,896 783

13 External Coordination and Liaison

22,390 16,020 15,750 16,020 0

Total 70,224 64,731 61,949 65,131 783 Programme Change from 2004-05 Programme of Work at Chapter level

(5,493) (8,274) (5,093)

Percent Change (7.8%) (11.8%) (7.3%)

Major Programme 1.1: Governing Bodies (all amounts in US$ 000)

Programme 2004-05 Programme of Work




Trust Fund

111 Conference and Council

6,904 10,786 9,873 10,786 0

112 Conference Services 8,674 4,203 3,855 4,203 0 113 Protocol Services 2,270 2,940 2,701 2,940 0 119 Programme

Management 1,750 1,286 1,228 1,286 0

Total 19,598 19,215 17,657 19,215 0 Programme Change from 2004-05 Programme of Work at MP level

(382) (1,941) (382)

Percent Change (2.0%) (9.9%) (2.0%)

Substantive thrusts under ZRG conditions

264. Major Programme 1.1 ensures that FAO’s governance process is carried out according to established rules. It covers the organisation of the Conference, Council and Council Committees, as well as liaison and protocol activities at headquarters. The major programme provides logistical support and services for FAO meetings, including adequate language coverage as per the Organization’s language policy. It also serves as focal point for relations with all Intergovernmental Organizations (IGOs) outside the UN system, excluding financial institutions.

265. The substantial shift of resources among programmes is due to the transfer of some of the activities of Support to Governing Bodies and Relations with Governments from Programme 1.1.2 to Programme 1.1.1. In addition to this transfer already indicated in the Medium Term Plan (MTP) 2006-11, a further shift of resources is made for the provision of meeting facilities to sessions of governing and other statutory bodies. Therefore, the management process of governing bodies sessions will be handled in a more effective and consolidated manner under 1.1.1, in particular for all pre- and in-session logistical arrangements, to ensure that norms and practices are fully respected. However, the activities related to Meetings of Permanent Representatives, previously under Programme 1.1.1, have been included more logically under Programme 1.1.3.


266. Programme 1.1.2 ensures efficient programming of language services through modern translation workflow and reference activities. The improved availability of electronic language resources will lead to the discontinuation of the services of the Terminology and Reference Library. The programme also covers financial management and monitoring of interpretation, translation and printing services which are backcharged to originating divisions and secretariats of governing bodies by established internal rates through corresponding pool account arrangements.

267. Programme 1.1.3 covers liaison and protocol work at headquarters, i.e. liaison with Permanent Representatives and Missions accredited to FAO, liaison with the host government regarding implementation of the Headquarters Agreement, and issuance of travel documents, visas and identity cards. As noted above, it now incorporates the costs for the organisation of Meetings of Permanent Representatives. As an efficiency measure, cost-recovery mechanisms for processing and delivery of administrative documents (visas, laissez-passers, etc.) to WFP, IFAD and UNOPS76 will be implemented.

268. The revised PWB 2004-05 already incorporated reductions which led to major difficulties in implementing the programmes and planned outputs. Under ZRG conditions in 2006-07, further cost efficiencies have been sought in activities and services. While no further reduction in the number of days of governing body sessions is envisaged under this scenario, further efficiency savings measures will include: a more stringent limitation on the length of the documents, enhanced electronic distribution of main session documents and additional reduction of staff overtime expenditure for the sessions, through tighter control of timetables. In addition, use of information technology has permitted to scale down tasks carried out in relation to document preparation and processing of correspondence.

Zero Nominal Growth Impact

269. A ZNG scenario would imply a significant reduction of the resources available to the Conference, Council and Protocol Affairs Division (GIC). Loss of staff, coupled with a reduction of non-staff resources, would jeopardise the delivery of GIC’s services and activities and certainly affect their quality and timeliness.

Major Programme 1.2: Policy, Direction and Planning (all amounts in US$ 000)

Programme 2004-05 Programme of

Work




Trust Fund

121 Director-General's Office 7,879 8,012 7,951 8,012 0 122 Programme Planning,

Budgeting and Evaluation 9,167 9,990 9,437 10,390 783

123 Audit and Inspection 6,472 6,728 6,487 6,728 0 124 Legal Services 2,855 2,900 2,814 2,900 0 125 Programme and Operational

Coordination 1,863 1,866 1,853 1,866 0


1,260 307 1,660

Percent Change 4.5% 1.1% 5.9%

76 World Food Programme (WFP); International Fund for Agricultural Development (IFAD); United Nations Office for Project Services (UNOPS)



270. This major programme includes the activities of the immediate Office of the Director-General (ODG) (1.2.1); the Office of Programme, Budget and Evaluation (PBE) (1.2.2); the Office of the Inspector-General (AUD) including the outposted staff in the Regional Offices (1.2.3); the portion of the costs of the Legal Office (LEG) as relates to "in-house counsel" work (1.2.4); and that portion of the cost of the Office for Coordination of Normative, Operational and Decentralized Activities (OCD) as relates to its overall coordination responsibilities (1.2.5). The remaining activities of the latter two offices are budgeted under Programme 3.1.3: Legal Assistance to Member Nations, Major Programme 3.4: FAO Representatives, and Programme 3.5.3: Cooperation Agreements with Member Nations and Support to ECDC and TCDC.77 Some adjustments have been made to the present budgetary provisions of some offices, as the reductions imposed on them stemming from the revised PWB 2004-05 did not prove to be viable over the long term.

271. Under Programme 1.2.2, the Evaluation Service will carry out evaluations decided by the Programme Committee for consideration by the governing bodies, as well as support the auto-evaluation process and the evaluation of extra-budgetary funds. The programme for 2006-07 provides for five to six evaluations covering: strategic objectives and cross-organizational strategies (one of each); two technical programmes; one major programme and one evaluation of country-level activities. Technical support to auto-evaluation will be provided by the Service through a new centrally-managed programme entity under Programme 1.2.2: Evaluation. Catalytic funding will then be reallocated during the biennium to the divisions undertaking auto-evaluations.

272. Programme 1.2.3 will continue to implement the enhanced audit regime at FAO, with the two components of External and Internal Audits. Full cooperation exists between the External Auditor and the Inspector-General to ensure proper planning, coordination and complementarity of action on the programme of work. The internal audit function will further address headquarters activities and programmes, as well as decentralized activities to provide assurance that field operations are managed in an economical, efficient and effective manner. The local audit programme (supervised by the Finance Division and budgeted under Programme 5.2.1) will constitute an integral part of the control environment. AUD will continue to offer independent supervision of tender panel operations, involving the opening of some 800 tenders during the biennium, provide advisory services to FAO units for them to discharge their responsibilities in the most effective manner, and participate in various internal committees and working groups, as required.

273. Programme 1.2.4 will continue to provide advice to the Director-General, technical departments and governing bodies of the Organization on legal matters; servicing of the Committee on Constitutional and Legal Matters (CCLM); support to the preparation of international legal agreements at the global and regional levels; and the handling of cases before the International Labour Organization (ILO) Administrative Tribunal.

274. Under Programme 1.2.5, OCD supports the decentralization policy by ensuring that the functional relationships between headquarters and decentralized offices are conducive to overall cost-effectiveness and adequately responsive to the provision of services to Members. It monitors related implementation and coordination arrangements throughout the Organization and provides information and guidance to other FAO units, both at headquarters and in the field, on coordination issues. OCD provides guidance, coordination and support to decentralized offices regarding their involvement in, and contribution to, the UN reforms and development efforts. It also provides coordination and support to Regional Offices in the organisation and conduct of regional conferences. OCD has the lead role in follow-up to the independent evaluation of decentralization.

77 Economic Cooperation among Developing Countries (ECDC); Technical Cooperation among Developing Countries (TCDC)


Real Growth Scenario

275. Additional catalytic funding is provided for auto-evaluations under Programme 1.2.2.


276. The required ZNG reductions would basically bring back allocations of the above offices to the present unviable situation, impairing their capacity to meet established functions. For instance, under 1.2.2, support to the implementation of results-based budgeting and related information systems would be curtailed. Funding for the actual conduct of evaluation work, including auto-evaluation (i.e. the non-staff budget for employment of external evaluators and for travel) would be reduced, leading to a reduction of two or three evaluations for the governing bodies and diminution in the use of external consultants as team leaders and participants in evaluations and auto-evaluations. Although Audit and Inspection was accorded relative priority in developing the ZNG scenario, the Office of the Inspector-General would not be able to adequately address its risk-based audit plan and would have to reduce internal audit activity in decentralized locations. The response to fraud investigations and the conduct of special reviews would also be affected. The Legal Office, whose programme of work would anyway be greatly affected as a result of significant income reduction, would no longer have the necessary critical mass of human and non-staff resources under zero nominal growth conditions to continue to adequately perform its wide-ranging legal duties.

Major Programme 1.3: External Coordination and Liaison (all amounts in US$ 000)





Trust Fund

131 External Relations and Coordination

11,363 4,767 4,539 4,767 0

132 Liaison Offices 11,027 11,253 11,210 11,253 0 Total 22,390 16,020 15,750 16,020 0 Programme Change from 2004-05 Programme of Work at MP level

(6,370) (6,640) (6,370)

Percent Change (28.5%) (29.7%) (28.5%)


277. Programme 1.3.1 covers the work of the Special Advisers to the Director-General (SAD), including the unit in charge of FAO's coordination and cooperation with other organizations of the UN system. It also includes FAO's contributions to several UN system-wide mechanisms, e.g. the Joint Inspection Unit (JIU), the International Civil Service Commission (ICSC) and the Chief Executives Board (CEB) subsidiary bodies. Budgeted resources of US$ 6.3 million for inter-agency security arrangements have been transferred from this programme to the proposed Security Expenditure Facility, and the balance of the reduction in Programme 1.3.1 is due to activities being planned for the International Alliance Against Hunger (IAAH) Secretariat under Programme 3.5.2.

278. Programme 1.3.2 covers the Liaison Offices with the United Nations (in New York and Geneva), for North America (in Washington D.C.), with the European Union and Belgium (in Brussels) and with Japan (in Yokohama).


279. It would not be possible to reduce the provision for UN system-wide mechanisms, in view of FAO’s commitment to respective cost-sharing arrangements. Due to their negligible absorption


capacity, the Liaison Offices have also been considered as ‘fully protected’. The small indicated ZNG reduction would have to be met by SAD.


Chapter 2: Technical and Economic Programmes (all amounts in US$ 000)

Major Programme 2004-05 Programme of

Work

ZRG 2006-07 Programme of

Work

ZNG 2006-07 Programme of

Work

RG 2006-07 Programme of

Work

Trust Fund


102,927 104,447 97,480 110,198 369,738


100,547 99,897 92,845 104,724 52,160

23 Fisheries 47,223 47,487 44,353 49,572 47,771 24 Forestry 35,374 35,643 33,510 37,116 42,858 25 Contributions to Sustainable

Development and Special Programme Thrusts

56,376 56,718 53,146 58,807 117,316

Total 342,446 344,191 321,335 360,416 629,843 Programme Change from 2004-05 Programme of Work at Chapter level

1,744 (21,111) 17,969

Percent Change 0.5% (6.2%) 5.2%

Major Programme 2.1: Agricultural Production and Support Systems

(all amounts in US$ 000) Programme 2004-05

Programme of Work


Work


Work


Work

Trust Fund

210 Intra-departmental Programme Entities for Agricultural Production and Support Systems

5,395 5,994 5,799 6,577 3,196

211 Natural Resources 17,392 17,152 15,846 17,858 37,153 212 Crops 27,745 28,594 26,509 31,274 243,327 213 Livestock 18,859 18,718 17,458 19,662 61,777 214 Agricultural Support Systems 15,905 15,438 14,121 15,838 23,167 215 Agricultural Applications of Isotopes

and Biotechnology 5,682 5,577 5,204 6,015 1,118

219 Programme Management 11,949 12,975 12,543 12,975 0 Total 102,927 104,447 97,480 110,198 369,738 Programme Change from 2004-05 Programme of Work at MP level

1,520 (5,446) 7,271



280. During 2006-07, Major Programme 2.1 will give priority to supporting standard-setting processes and the development of appropriate policy and regulatory frameworks in areas such as plant and animal genetic resources, biotechnology, biosecurity, animal health and sustainable development and management of natural resources, in particular water. It will assist countries in acquiring new technologies and promote approaches that are compatible with social, environmental and health concerns, and which contribute to increased productivity of land, water and labour. It will strengthen linkages between normative and field activities and emphasise policy assistance, technical advice and capacity-building at country level, as well as market linkages in support of farmers and agro-processing enterprises during the transition to commercial agriculture. Resources have been selectively shifted to Programme 2.1.2 to provide additional support to the International Plant


Protection Convention (IPPC) and the Secretariat of the International Treaty on Plant Genetic Resources for Food and Agriculture (IT-PGRFA).

Programme 2.1.0: Intra-departmental Programme Entities for Agricultural Production and Support Systems

281. A major focus is on facilitating inter-disciplinary capacity-building in sustainable and integrated approaches. Specific attention will be given to the assembly, assessment and sharing of lessons relating to the adoption of improved agronomic and management practices in changing farmer and market circumstances. Expected accomplishments during the biennium (as follow-up to COAG78 discussions) will include: dissemination of national policy experience and concrete examples of good agricultural practices that meet economic, social and environmental objectives and contribute to food safety and security, but are non-prescriptive and will not lead to mandatory standards or codes; information resources to support the development of these practices and conservation agriculture in integrated production systems, generation of principles and lessons learned; and enhanced capacity of partner institutions in selected locations.

282. Limited support will be given to global perspective studies and work on SARD79; to publications and communications planning across the department; and to the agriculture home page of the FAO Web site (Agriculture 21) and other advocacy material. In late 2006, the 11th regular session of the Commission on Genetic Resources for Food and Agriculture (CGRFA) will review the status and needs of the various sectors of biodiversity, including biodiversity for food and agriculture other than plants and animals, as well as the agro-ecosystem approach to genetic resource conservation and cross-sectoral matters. It will adopt a multi-year programme of work, which will include work on the supporting components of the IT-PGRFA and preparations for the First International Technical Conference on Animal Genetic Resources (AnGR), to be held in 2007. The 20th session of COAG will be organised in 2007.

283. The catalytic provision to support the work under approved PAIAs80 will be augmented, thereby facilitating inter-disciplinary action towards the solution of recognised problems of Members (entity 210S5).

Programme 2.1.1: Natural Resources

284. Under Programme 2.1.1, in line with the priorities expressed by governing bodies, activities in the areas of: Agricultural water use efficiency and conservation; Integrated land, water and plant nutrition policies, planning and management; and Land and water quality improvement are to continue with their current focus. Policy and institutional support for water management, including transboundary water resources, and for land and water management in a watershed context, with focus on ecosystem services, are to be strengthened. In contrast, the implementation of lower-priority outputs dealing with: moisture conservation techniques in rainfed areas; disaster mitigation through water logging and salinity control and rehabilitation; and related studies and inputs to major fora, will be delayed. Regional priorities, in particular those focusing on capacity-building, as well as water management policy, water use efficiency improvement, water harvesting, land degradation and soil fertility, with special attention to institutional arrangements, are to be better integrated into the programme. In Africa, both normative and field activities through TCP81 and SPFS82 will continue to support the formulation and implementation of projects in the context of the CAADP83 of NEPAD84.

78 Committee on Agriculture 79 Sustainable agriculture and rural development 80 Priority Areas for Inter-disciplinary Action 81 Technical Cooperation Programme 82 Special Programme for Food Security 83 Comprehensive Africa Agriculture Development Programme 84 New Partnership for Africa's Development


285. The programme will implement the activities recommended by international meetings, such as the FAO/Netherlands Conference on Water for Food and Ecosystem held at The Hague in 2005, focusing on the integration of agriculture and ecosystems into better water management. It will also contribute, in close collaboration with Members, to forthcoming international fora such as the Fourth World Water Forum, in Mexico (2006), and the Year of Desert and Desertification (2006) organized by UNCCD85.

Programme 2.1.2: Crops

286. During 2006-07, in line with priorities expressed by the governing bodies, including the last session of COAG, Programme 2.1.2 will put special emphasis on the IPPC, scientific advice to Codex, the IT-PGRFA and control of the desert locust. It will give attention to horticulture for income generation and nutrition and integrated crop production and conservation agriculture in response to growing demand from Members. It will also support the further development of the good agricultural practice (GAP) approach within an integrated crop production and protection system as one of the means to promote sustainable agricultural practices along the food chain.

287. The IPPC will address harmonisation of phytosanitary measures, information exchange and technical assistance with the aim of reducing trade barriers while protecting national plant resources from pest damage. Efforts will be made to enhance participation of developing countries and strengthen national, and where appropriate regional, capacity and infrastructure.

288. Programme 2.1.2 will support the Secretariat of the IT-PGRFA and its programme of work as adopted by its governing body, for which resources have been set aside in a new programme entity. Accordingly, another priority area will be the implementation of the supporting components of the IT-PGRFA, in particular the Global Plan of Action (GPA), elements of the Global Information System, conservation and sustainable use of plant genetic resources through plant breeding, biotechnology, biosafety and sustainable management of agrobiodiversity. The programme will enhance complementarity between the public and private sectors in national seed systems, harmonise regulatory frameworks for PGRFA, seeds and variety release and contribute to disaster preparedness, seed relief and rehabilitation.

289. The plant pest component of the Emergency Prevention System for Transboundary Animal and Plant Pests and Diseases (EMPRES) will concentrate mainly in the Western Region (West and Northwest Africa), emphasising preventive control of the desert locust through support for early warning, early reaction and applied research, especially on alternatives to conventional chemical pesticides and related human health and environmental issues. Capability to assist Members in addressing desert locust emergencies will be maintained. To the extent possible, work would be initiated on other transboundary plant pests and diseases.

290. Less resources will be given to lower priority areas, reducing ability to provide policy advice and decision-making support on crop production, and pasture and production systems globally. Support for the development of seed networks will be reduced to capacity-building only. In relation to IPM86, technical support to weed management will be minimised. One entity created in the Medium Term Plan (MTP) 2006-11: Facilitating plant production and protection decision-making has been eliminated, though several of its essential outputs have been incorporated into other entities.

Programme 2.1.3: Livestock

291. Programme 2.1.3 was strategically adjusted in the MTP 2006-11 with entities reduced from eight to six and major outputs from 24 to 19. The programme seeks to clarify, through analysis and information, and facilitate: 1) the role of the global livestock sector in improving food security and providing a pathway out of poverty; and 2) the potential of meeting rapidly increasing demands for livestock products through production, processing and trade. Such objectives are to be achieved

85 United Nations Convention to Combat Desertification in those Countries Experiencing Serious Drought and/or Desertification, particularly in Africa 86 Integrated pest management


while mitigating negative impacts of production and intensification on the poor, safeguarding the environment, and minimising the risks to public health. Design of the programme is also responsive to comments made in Technical Committees, including the last COAG.

292. During 2006-07, institutional and policy considerations will continue to be mainstreamed in the programme's portfolio so as to align its technical work with the socio-economic framework conditions relevant for sustainable, equitable and safe sector growth. It will strengthen national disease prevention and management systems with priority given to transboundary animal diseases, including those of zoonotic nature such as avian influenza, in the context of the FAO/OIE87 Global Framework for the Progressive Control of Transboundary Animal Diseases (GF-TADs), under EMPRES and through ECTAD88. The programme will work to secure agreements among countries to cease rinderpest vaccination and join the process for the declaration of global freedom from the disease in 2010. Veterinary public health activities will be strengthened in conjunction with Codex and OIE. Environmental factors driving animal disease emergence and spread will be investigated in support of early disease warning capabilities.

293. Access barriers to markets for smallholder livestock producers will be identified as well as opportunities to overcome them, based on policy and institutional innovations and underpinned by the use of good agricultural and management practices. After finalisation of the first report on the World’s Animal Genetic Resources, priority actions for the improved management and conservation of domestic AnGR will be agreed at the First International Technical Conference on AnGR in 2007. Capacity-building in all fields of animal genetic resources management will continue. The programme will prepare detailed guidance on managing the livestock sector in emergency situations. Detailed policy guidance will be made available and testing started for the management of livestock wastes in high-intensity and high-density production systems. The Global Livestock Production and Health Atlas (GLiPHA) will be made available interactively in all its intended elements. The programme will comprehensively address the impacts of livestock on the environment (disease dynamics and ecology, biodiversity and environmental health) and design policy and institutional options to manage such impacts at local and national levels.

294. Through the EMPRES programme and the EUFMD89, assistance will be provided to the Central and Eastern European subregion for the control of FMD90 and other transboundary animal diseases. The broad operational and disciplinary capability for such support will be based at headquarters, as will support to the subregional animal genetic resources and policy/institutions-related priority requirements. Additional resources are earmarked in the subregion for catalysing such support.

Programme 2.1.4: Agricultural Support Systems

295. The programme aims to improve the efficiency and competitiveness of agricultural production, marketing and distribution systems, through support to farmers and agro-processing enterprises in making the transition to commercial agriculture. Capacity-building and strengthening market linkages to support farmers and agro-processing enterprises remain top priorities. Region-specific materials will be developed to build farmers' management and marketing skills. Information on opportunities that promise to enhance farm income will be disseminated. For agro-processing enterprises, information will be provided on technologies to improve post-harvest operations and create additional value for the consumer. Guidance will be provided on strategies and managerial practices for improving profitability in all parts of the agrifood system.

296. In line with the MTP 2006-11, work on food distribution systems, small- and medium-scale agro-enterprises and related commercial farming enterprises will be enhanced in response to the

87 World Organisation for Animal Health 88 Emergency Centre for Transboundary Animal Disease Operations 89 European Commission for the Control of Foot-and-Mouth Disease 90 Foot-and-mouth disease


rapid changes occurring worldwide in the organisation of agrifood systems and associated markets. Accelerating economic growth and improving competitiveness will be key thrusts of the work. Policies and institutional constraints affecting competitiveness, agribusiness development and the provision of agricultural services will be identified to feed into appropriate strategies. Policy guidance materials will be developed to improve access to marketing, rural finance and mechanisation services. Assessments will be made of effective approaches to food chain management and product innovation in order to increase trade competitiveness. Complementary guidance will be provided on the use of modern market, industrial organisation and food chain concepts and methods taking account of COAG discussions on the matter. Stress will be placed on strategies, approaches and technologies for improving product quality and safety in food chains in order to meet consumer expectations.

297. In order to ensure coherence in work on policy and institutional support, entity 214B1: Guidance on policies and institutions for sustainable agricultural services provision will be merged with 214B4: Policy and institutional support for fostering competitive agro-industries. The programme’s emphasis on the performance of food chains - covering product quality and safety, as well as efficiency and competitiveness - will be increased. On the other hand, two areas will see some reduction, reflecting evolving needs and priorities. Support relating to farm power and mechanisation will be reduced overall and focused on mechanisation strategies, particularly for sub-Saharan Africa, where requirements remain high. There will also be a reduction in the scope of support relating to agricultural services information systems and databases. In order to retain a critical mass of resources for the Information Network on Post-harvest Operations (INPHO) and the Rural Finance Learning Centre, compilation of farm power reports will be curtailed and new integrated information system covering farm economics, marketing and rural finance will not be developed.

Programme 2.1.5: Agricultural Applications of Isotopes and Biotechnology

298. Programme 2.1.5 is implemented jointly with the International Atomic Energy Agency (IAEA). Working closely with other programmes, it seeks to strengthen country capacities to intensify crop and livestock production systems, while conserving natural resources, and to improve food quality and safety through support for research, development of standards, training and capacity-building relating to applications of isotopes and biotechnology.

299. Detailed guidelines and protocols coupled with technical advice will strengthen national capacities for applying molecular, genomic and isotope abundance methods to select and introduce alleles for key traits into crops and contribute to making cropping systems more productive and sustainable, particularly in marginal and stress-prone areas. Skills and knowledge will be imparted on using isotopic and soil water measuring devices to identify and apply practices that improve crop water productivity, enhance soil fertility and minimise land and water degradation, as well as on breeding-related biotechnologies to broaden the genetic base of crops. To reduce the risks to crop production and the environment posed by exotic or alien invasive insects, the programme will assist in the use of sterile insect technique (SIT) and other biological control methods by providing standard operation procedures for rearing and sterilisation of target species.

300. The programme will contribute to the process of declaration of global freedom from rinderpest and to the progressive control of other livestock diseases covered by EMPRES by providing sensitive early-detection methods and analysed quality-assured data from national serological and molecular surveys. It will strengthen the international regulatory framework by providing inputs to OIE on validation criteria for diagnostic assays and accreditation of veterinary laboratories. It will contribute through the Programme Against African Trypanosomiasis (PAAT) to the Pan African Tsetse and Trypanosomiasis Eradication Campaign (PATTEC) by providing Members with policy and technical advice on priority-setting for interventions that involve the SIT to create tsetse-free zones. Also, countries’ access to molecular tools for better characterizing indigenous AnGR and identifying DNA91 sequences that mark favourable traits will be improved by

91 Desoxyribonucleic acid


the provision of DNA markers and the development of internationally standardised sampling and analytical protocols.

301. The programme will assist countries in harmonising national regulations based on the Codex General Standard for Irradiated Foods and the IPPC International Standard on Irradiation as a Phytosanitary Treatment. It will help them minimise the risks to food production and food security from a nuclear or radiological accident by finalising and testing a management plan for emergency preparedness. By developing guidelines, protocols and distance-learning materials supported by training-the-trainer activities and by providing assistance in introducing laboratory quality management systems compliant with international standards, it will improve the quality of services provided by laboratory personnel involved in food control and regulation of pesticides and veterinary drugs, thereby promoting GAP from ‘farm to fork’ and consumer and environmental protection.


302. Under Programme 2.1.0, incremental resources would be used: 1) to accelerate the assessment and sharing of lessons to support the development of sustainable production systems; and 2) to respond to country requests for capacity-building on GAP. Real growth would also allow for a more substantial catalytic provision to support work under the Priority Areas for Inter-disciplinary Actions (PAIAs) - 210S5.

303. RG resources under Programme 2.1.1 would be allocated to enhancing water use efficiency and conservation activities, in particular: support to on-farm water control techniques and integrated resources management; assistance to irrigation system modernisation, management and scheduling; and integrated planning and management of land, water and nutrient resources. They would allow to redress under-funding under ZRG for work related to moisture conservation techniques in rainfed areas; disaster mitigation through water logging and salinity control and rehabilitation; and contributions to studies and inputs to major fora.

304. Under Programme 2.1.2, additional funds for the IPPC would be used for the acceleration of the harmonisation/standard setting programme and for technical assistance, in particular for participation of developing countries in the standard setting procedure and application of quarantine standards at national level. It would be possible to meet demands for assistance on horticulture in a more satisfactory manner, especially in urban and peri-urban agriculture and for crop diversification for improved health and income.

305. Incremental resources would be used to enable FAO to build national, subregional and regional capacity in support of the implementation of the IT-PGRFA. With regard to the conservation and sustainable use of plant genetic resources, increased resources would enable FAO to reinforce assistance to countries in assessing and building capacity in national plant breeding and biotechnology programmes, as well as plant biosafety. In response to increased demand, international agro-biodiversity indicators and regulations for access to seed would be developed in partnership with various stakeholders. The Facilitating Mechanism would be developed further for the implementation of the GPA for PGRFA.

306. Increased resources in Programme 2.1.3 would be used to: 1) strengthen capabilities in environmental and disease risk assessment and management (particularly for emerging zoonotic diseases, such as for HPAI92); 2) accelerate the preparation of the GLEWS93 agreed with OIE and WHO94 in the context of the Global Framework for the Progressive Control of Transboundary Animal Diseases; 3) enhance the design and negotiation of pro-poor livestock development policies in countries and regions; and 4) strengthen the support to the regional process leading to the finalisation and adoption of the first report on the World’s Animal Genetic Resources in 2007.

92 Highly pathogenic avian influenza 93 Global Early Warning System for Transboundary Animal Diseases 94 World Health Organization


307. RG resources in Programme 2.1.4 would be used: 1) to accelerate policy and institutional support for private sector marketing, agribusiness development and agro-industry innovation in order to enhance growth and trade competitiveness; 2) to increase outreach and the regional adaptation of capacity-building materials for improving the technical and business skills of small farmers and agro-processing enterprises and their access to essential services and post-harvest technologies; and 3) to help implement, in collaboration with others, proven technical, managerial and policy interventions to enhance the livelihoods of rural and urban poor, in selected communities and countries.

308. Additional funds under Programme 2.1.5 would be used primarily to: 1) reinforce international cooperation for further development and application of DNA markers to perform molecular characterization of animal genetic resources, 2) speed up the development of internationally standardised sampling and analytical protocols and provide nucleic acid sequence and annotation data for a database linked to DAD-IS95; and 3) maximise the utility of local breeds by integrating molecular and phenotypic information through an international network and associated workshops. A further priority would be to strengthen work on veterinary public health, focusing on the development, validation and transfer of molecular tools for diagnosis, surveillance and epidemiology.


309. Programme 2.1.0 would be affected in several ways: capacity-building and dissemination of policy experience and examples of good agricultural practices would be restricted to a few countries. In conservation agriculture, emphasis would have to be placed on evaluating past and on-going country experience rather than promotion. Capacity-building and sharing of experience in integrated production systems would be restricted to one or two of these systems. ZNG would imply a further reduction in the duration of COAG and in the number of agenda items, greatly impairing its advisory role. Contributions to global perspective studies would have to be drastically curtailed, and consultative meetings with staff in regional offices would be reduced. The preparation and implementation of the multi-year programme of work of the CGRFA would be slowed down.

310. Programme 2.1.1 would need to treat information systems and knowledge management as lower-priority areas. Cutbacks would also seriously reduce land-related activities such as on land degradation and conservation, soil fertility and nutrient management, with consequential impact on assistance to countries in Africa and Latin America which have been badly affected by land degradation. FAO’s inputs to international fora on land and water issues would be weakened and the delivery of technical services to the field programme would inevitably diminish.

311. Regarding Programme 2.1.2, support to the international network of ex-situ collections of PGRFA would be eliminated, with consequent negative impact on enhancing productivity and crop production in countries. No additional funding would be available for the Secretariat of the IT-PGRFA, with consequent negative impact on the implementation of the International Treaty at the national and international level. Under ZNG conditions, funding for the IPPC would still be somewhat higher than in the current biennium, although it would be lower than under ZRG. Compared with ZRG, participation of developing countries in IPPC standard setting would be reduced, as would IPPC outreach activities in relation to information systems and technical assistance. Reductions would need to be made in support to IPM, pesticide management, crop improvement and biotechnology as well as in crop production.

312. For Programme 2.1.3, the intended enhancement of the interactive GLiPHA would be delayed with respect to geographical coverage and to integration with other information systems. Several important outreach activities, in particular the creation of national and regional livestock policy negotiation platforms, would be reduced or delayed. Work on veterinary public health which is not directly related to Codex and support to sanitary and phytosanitary measures (SPS) would be

95 Domestic Animal Diversity Information System


reduced, such as the design of good practices for the reduction of food-borne diseases as well as new control measures for zoonoses control. Work on the role of livestock in poverty alleviation would be curtailed, except as relates to the mitigation of HIV/AIDS and emergency impacts on livestock and livestock-related livelihoods. Arthropod disease management, including support to PAAT, would be reduced, as well as work on natural resources and policy-related aspects of the livestock-environment interactions. The statutory programme for AnGR would be curtailed only in a minimal way so as not to endanger the commitments made. The first report on the World’s Animal Genetic Resources would be finalised, while the First International Technical Conference on AnGR in 2007 would need extra-budgetary funding. In EMPRES, work on early warning and disease control strategy design and implementation would need extra-budgetary funding in order to continue.

313. Programme 2.1.4 would need to eliminate technical support and information systems relating to farm power and mechanisation. Capacity-building for enhancing farmer-market linkages would be significantly reduced, including elimination of assistance for improving the business capacities of farmer organizations. Policy and institutional guidance relating to agribusiness, supply chain management and commercial farming would also be reduced. Support relating to farm management and agribusiness in Central and Eastern Europe would have to be provided only by headquarters staff and specialist capacity in agro-industries would be eliminated in Asia, although more general support for improving the efficiency and competitiveness of agrifood systems would be maintained.

314. With reduced resources, Programme 2.1.5 would need to phase out outputs envisaged on the management of soil nutrients, animal nutrition and reproductive efficiency, as well as food irradiation, while delivery of those on the use of SIT against the Mediterranean fruit fly, on molecular characterization of animal genetic resources and on veterinary public health would be severely curtailed.

Extra-budgetary resources

315. Under Programme 2.1.1, several entities are expected to benefit from various strategic partnership agreements with several donors to support FAO’s normative activities. Outreach work on soil productivity and soil and water management through farmer field schools and agro-ecological approaches is carried out under the FAO-Norway partnership programme, and on agricultural biodiversity in soil health and runoff farming and soil moisture management under the FAO-Netherlands Partnership Programme. Other important projects are the Nile Basin Initiative and the GEF96/UNEP97 Land Degradation Assessment in Drylands (LADA).

316. Under Programme 2.1.2, extra-budgetary is expected for: participation in IPPC standard setting by developing countries; prevention and disposal of obsolete pesticides; the joint UNEP/FAO Secretariat to the Rotterdam Convention; formulation of global policies on biodiversity; integrated pest management; the IT-PGRFA and relevant activities; coordination of locust forecasting and control. Field work will also encompass: support to national and regional IPM programmes; conservation and sustainable use of plant genetic resources; improvement of crop grassland and horticulture systems; improvement of phytosanitary and pesticide regulatory systems and early reaction and early control of transboundary plant pests, in particular the desert locust (EMPRES).

317. Several entities of Programme 2.1.3 are also expected to benefit from strategic partnership agreements with various donors, e.g. through the DFID98-funded Pro-Poor Livestock Policy Initiative (PPLPI). Donors will also support the preparation of the first report on the World’s Animal Genetic Resources and its finalisation at the Conference on AnGR in 2007. Extra-budgetary funds will

96 Global Environment Facility 97 United Nations Environment Programme 98 UK Department for International Development


also be made available for the LEAD99 programme, including from GEF for major regional livestock-environment projects.

318. Other important projects will deal with: capacity-building on bovine spongiform encephalopathy (BSE) diagnosis and surveillance; implementation of the Codex Code of Practice for Animal Feeding; support to the Global Rinderpest Eradication Programme (GREP); regional TAD control, particularly of the avian influenza. The European Union will continue to provide core support to the EUFMD.

319. For Programme 2.1.4, extra-budgetary resources are anticipated in several areas: sericulture, good agricultural practices and for the Rural Finance Learning Centre. Donors will also finance projects dealing with livelihoods diversification, small-scale agro-processing and edible oil processing. Significant technical support is provided to emergency projects in a wide range of countries.

320. IAEA's contribution to the joint programme (2.1.5) is expected to reach over US$ 23 million, including the FAO/IAEA Agriculture and Biotechnology Laboratory at Seibersdorf. The programme will also provide technical services to projects and training courses funded through the IAEA technical cooperation programme at an estimated value of US$ 26 million. These are not shown in the recapitulative tables as they are recorded in IAEA’s accounts.

Major Programme 2.2: Food and Agriculture Policy and Development (all amounts in US$ 000)


Work


Work


Work


Work

Trust Fund


6,603 8,354 6,812 8,854 6,037

221 Nutrition, Food Quality and Safety 20,626 20,481 19,156 21,789 15,808 222 Food and Agricultural Information 33,917 33,121 30,620 34,626 7,258 223 Food and Agricultural Monitoring,

Assessments and Outlooks 15,119 14,553 14,341 14,853 5,230


13,024 11,939 10,818 13,153 17,827


(650) (7,702) 4,177

Percent Change (0.6%) (7.7%) 4.2%


321. Major Programme 2.2 is heavily involved with global and regional priorities set by major international conferences or pronouncements, including the World Food Summit: five years later, WTO100 Ministerial Conferences, the Financing for Development Conference in Monterrey, the Fora of Food Safety Regulators, the Millennium Declaration and the World Summit on the Information Society. Follow-up includes analysing reasons for insufficient progress in combating hunger and malnutrition, and proposing and supporting actions that can be taken, nationally and internationally,

99 Livestock, Environment and Development 100 World Trade Organization


to improve people’s access to, and consumption of, nutritionally adequate and varied diets while stressing the various contributions of agriculture and rural development to overall socio-economic development. Other thrusts include: ensuring greater participation of developing countries in the formulation of a rules-based food and agricultural trading system, improved quality and safety of food for consumers, assisting commodity-dependent economies with commodity development and diversification strategies, providing early warning of impending food crises, designing policy frameworks for increased household resilience to shocks (e.g. natural disasters, economic disruptions), natural resource management strategies for poverty alleviation, the implications of globalisation and urbanisation on the food economy, and addressing the information gap that separates the poor and hungry in rural areas from the world's information and knowledge resources, thus bridging the rural ‘digital divide’.

322. The modernised FAOSTAT101, and its country version CountryStat, will come into operation with revised methodologies, domains, model parameters and dissemination tools. Similarly, improved access to FAO information resources under the framework of World Agricultural Information Centre (WAICENT) and coherence in agricultural information will be pursued. Continued work aimed at promoting access to, and consumption of nutritionally adequate and safe food, particularly through nutrition education and national development policies will also be among achievements of this major programme. Complementary activities on methodological and conceptual frameworks, coupled with empirical research through strengthened inter-institutional collaboration among varied stakeholders, will also support policy analysis and dialogue.

Programme 2.2.0: Intra-departmental Programme Entities for Food and Agriculture Policy and Development

323. Ongoing major activities are the support to the development and strengthening of Food Insecurity and Vulnerability Information and Mapping Systems (FIVIMS) at regional and country levels, as well as Secretariat support to the related Inter-agency Working Group (IAWG). This will include studies to assist countries in arriving at a better understanding of key determinants of vulnerability to food insecurity. COAG102 reiterated at its May 2005 session the priority to be given to FIVIMS.

324. Shifts of resources are made from other programmes to fund new entities, as included in the Medium Term Plan (MTP) 2006-11, covering the analysis of structural changes in international value chains for agricultural commodities. These new entities will trace the implications of these changes for developing countries dependent on international commodity trade, whether as commodity exporters or food importers. Special attention will be given to three key aspects: the scope for commodity-dependent exporters to diversify their production and exports, especially vertically into value-added products, and the strategies needed for success; the particular implications of structural changes in global food markets for low-income, food-deficit countries; and the implication on the dietary intakes in terms of amounts and variety of foods consumed among various socio-economic groups. The programme will also seek to identify upcoming problems associated with long-term developments in world food and nutrition due to changes in population composition and location.

325. A new entity on Implementing Voluntary Guidelines on the Right to Adequate Food in the context of National Food Security is established for training and capacity-building, and the preparation and dissemination of information and communication materials. Such work was supported by COAG in April 2005 and by CFS103 in May 2005.

Programme 2.2.1: Nutrition, Food Quality and Safety

326. By promoting access to and consumption of nutritionally adequate and safe food by all, Programme 2.2.1 makes a direct contribution to the achievement of several Millennium

101 Corporate Database for Substantive Statistical Data 102 Committee on Agriculture 103 Committee on World Food Security


Development Goals (MDGs). The programme supports important cross-cutting activities and its outputs are based on scientific principles and solid practical experience and lessons. Consistent with the guidance from COAG, the highest priority will be given to supporting the work of Codex Alimentarius and Codex-related activities. This includes: the provision of scientific advice on the safety assessment of food additives, contaminants and veterinary drug residues (through, in particular, JECFA104 meetings); the safety assessment of microbiological hazards in food and foods derived from modern biotechnology; advice on relevant issues referred to FAO and WHO105 by the Codex Alimentarius Commission; and capacity-building on food safety/control systems in countries.

327. Work will also continue on human nutrient requirements and national capacity-building to support nutrition improvement activities. The programme will cover: food and nutrition assessments; nutrition-related policy and programme formulation; promoting healthy diets and nutrition education in schools and for the general public. It will support participatory community-based activities that focus on strengthening household food security and livelihoods, maternal and child nutrition/health, home and school gardens, coping with HIV/AIDS and other emergencies.

Programme 2.2.2: Food and Agricultural Information

328. This programme will continue to be implemented by the Statistics Division (ESS) and the Library and Documentation Systems Division (GIL) which are responsible for the Organization’s principal corporate information systems under the WAICENT framework - FAOSTAT and the Corporate Document Repository respectively.

329. It is expected that the modernised FAOSTAT will come into operation in the biennium, with revised methodologies, domains, model parameters and dissemination tools. It is also expected that CountryStat (the country version of FAOSTAT) will successfully pass the pilot phase and be ready for full operation. Complete alignment of FAO’s statistical classifications to the international norms is planned. A new quality assessment scheme will be part of the statistical system. The new FAOSTAT will enable a revised data compilation system with enhanced communication tools to be put into effect, including questionnaires, focal points, active follow-up and editing. The Programme for World Census of Agriculture 2010 will be fully operational in 2006 with a new approach to agricultural censuses. As recommended by COAG and CFS, due attention will be given to capacity-building for national agricultural statistical systems.

330. Improved access to FAO information resources under the WAICENT framework will continue to be sought, with due emphasis on grater coherence in agricultural information and extension of the WAICENT corporate model components to national levels. Coherence will be achieved inter alia through electronic publishing guidelines based on best practices and international standards, improved resource descriptions through multilingual ontologies and metadata, establishment of semantic standards relevant to food security and rural development, standards for the multilingual digitisation of FAO information, and coordination through the applicable PAIA to maintain quality in corporate systems and content management tools.

331. Within the framework of the programme for bridging the rural digital divide, information management expertise will be transferred to Members through the implementation of distance-learning modules (IMARK106), facilitation of access to information and knowledge networks (AGORA, AGLINET, AGRIS107), organisation of consultations and workshops on information management, and provision of advisory and technical services under the field programme. A technical Consultation on Agricultural Information Management (COAIM) will be held during the biennium. The physical renovation of the David Lubin Memorial Library, made possible thanks to

104 Joint FAO/WHO Expert Committee on Food Additives 105 World Health Organization 106 Information management resource kit 107 Access to Global Online Research in Agriculture (AGORA); Worldwide Network of Agricultural Libraries (AGLINET); International Information System for the Agricultural Sciences and Technology (AGRIS)


substantial voluntary contributions from the Host County, will lead to state-of-the-art services and facilities, both as a physical and digital library centre for the Organization, including areas for user consultation, briefing and research and a digital resources laboratory. The full range of library and virtual library services will be consolidated and enhanced through consortia approaches (e.g. the UN Library Consortium), and powerful library tools will be implemented.

Programme 2.2.3: Food and Agricultural Monitoring, Assessments and Outlooks

332. Emphasis will be given to analytically based commodity outlook work, development of primary databases (prices, quantities, policies, etc.), and provision of information and early warning on food security at global, regional, national and subnational (household) levels. In response to COAG, increased funding would be made to crop and food supply assessment missions. Thematic commodity studies will be undertaken to provide a comprehensive body of reference material on major traded commodities, and on issues identified as important, including food and trade strategies in the context of food security and overall development, international and national commodity risk management strategies and instruments for both exports and imports, and strategies for diversification and value addition in domestic and export markets. The development and applications of the model of world agricultural commodity markets will continue, and analyses of policy reforms will be undertaken. Preparatory work for a new long-term perspective study Agriculture Towards 2050 will be initiated, while publications on thematic topics of global significance will be issued. There will be reduced monitoring work on short-term market outlook. Resources were shifted to give more emphasis to work on analysis of transition in the food economy under Programme 2.2.0.

Programme 2.2.4: Agriculture, Food Security and Trade Policy

333. This programme covers key aspects of commodity policy and development strategies, and their linkages to national and household food security. With respect to international agricultural trade policy, it includes analyses, technical assistance to countries and capacity-building to support effective participation in international trade negotiations and implementation of multilateral trade agreements. As recommended by CCP108 and COAG, priority will be given to the analysis of impact of agricultural trade policy reforms on food security. Analyses will be undertaken in connection with strategies to cope with increased vulnerability to commodity shocks at both macro and household levels and of the food security implications of import surges. With respect to commodity development, analyses will be undertaken and technical assistance provided to countries on policies and programmes for increasing export earnings and diversification.

334. The other main thrust will be enhanced understanding of the impact of agricultural, rural development and environmental policies on poverty and food security through methodology development and empirical case studies. This will be accomplished by further analytical work and policy research on a number of relevant subjects, including: the role of non-farm activities in rural development and its linkages to agriculture; commercialisation of agriculture and its welfare impact on smallholders; the importance of migration in rural development and poverty alleviation; the potential for environmental service payments for poverty alleviation; and the impact of seed supply systems on the access to crop genetic resources, on farm diversity and household welfare. Furthermore, emphasis will be put on conducting analytical work and strengthening inter-institutional collaboration in a number of countries to facilitate the inclusion of food security concerns in Poverty Reduction Strategy Papers (PRSPs) and integrating the voluntary guidelines on the right to food in policy advice.


335. There would be increased work under Programme 2.2.0 to build national capacity in dietary surveys and nutrition assessments. Further work would be carried out on the application of vulnerability group profile methodologies and specific case studies collated and shared with partners.

108 Committee on Commodity Problems


Work would also be carried out on methodological guidelines on the design of national FIVIMS that specifically address institutional issues.

336. Under Programme 2.2.1, RG would strengthen the capacity of the Codex Secretariat for information dissemination and communication on standards development and the adopted texts, including advanced Internet documentation facilities, timely translation and publication as well as increased presence of Secretariat staff in international and regional fora. Three new posts would assist in the proposed work. Resources would also be used to meet the growing demand for capacity-building in Codex-related activities, including: 1) the establishment and strengthening of national codex committees and focal points to improve the participation of developing countries in international food standard setting; 2) more effective national regulatory systems for food control; and 3) tools for capacity-building in food safety. RG resources would also enhance scientific advice to Codex and countries on the safety assessment of foods derived from biotechnology, of microbiological hazards in food and of emerging food contaminants (two technical officer posts could be added, including for a specialist on genetically modified foods).

337. Under Programme 2.2.2, the RG resources would be used to expand FAOSTAT to countries through CountryStat. A second area would be the development of new domains in the statistical database, namely agricultural resource, price and income statistics. A third area would be coordinating statistical activities in FAO to improve the consistency and the coverage of different databases, improve their quality and reduce the burden on countries from data compilation activities. As regards WAICENT and associated areas, RG resources would be applied to: enhancement of WAICENT access tools for Members, such as the WAICENT Information Finder; increased digital content to the Corporate Document Repository in support of the Virtual Library, affording Members access to more readily available multilingual information on agricultural and rural development; digital preservation of FAO’s information assets; focused information delivery services; electronic publishing guidelines to cover additional agricultural domains and for enhanced search functionality of the FAO Web site; more timely multilingual distance-learning modules on information management (IMARK); and additional regional workshops for transfer of WAICENT methodologies at the national level.

338. Programme 2.2.3 would develop improved methodologies for crop and food supply assessments. Analyses would be undertaken and technical assistance provided to countries on strategies to address foreseen food shortages and emergencies. The impacts of food aid on commodity markets and affected households would be assessed.

339. Incremental resources would be used under Programme 2.2.4 for: the methodology for measuring the economic cost of hunger and empirical studies in selected countries; more in-depth assessment of the role of non-farm income in development, rural poverty reduction and links to agriculture; and support to the implementation of multilateral environmental agreements, as well as meetings on methods for valuation of environmental externalities. Furthermore, it would be possible to more fully meet the increasing requests for information, timely analyses and capacity-building to deal with an increasingly complex international trade environment.


340. Under Programme 2.2.0, achievement of FIVIMS objectives would be affected by, for example: reduced statistical data collection and analysis, as well as reduced technical assistance to countries for the production and use of food security-related statistical information; curtailment of support to inter-agency collaboration; and difficulties in the production and publication of SOFI109. Another area that would be affected is the FIVIMS work on nutritional assessment and consequent impact on the production of country nutrition profiles.

109 The State of Food Insecurity in the World


341. While frequency of CFS sessions would not be modified, there would be a need to re-adjust the structure and duration of the meetings, in addition to reducing the amount of documentation. Additional reports to be examined by the Special Forum 2006, as well as participation from civil society would need to be covered by extra-budgetary funds. FAO’s contributions to the monitoring of MDGs would be significantly reduced.

342. Several planned new entities would have to be eliminated or drastically reduced, i.e. those dealing with: Managing Nutrition in a Transforming Food Economy, Evolution of Commodity Value Chains and Impact on Markets, Trade and Food Security, and Demographic Change and Urbanisation: Impact on Consumption Patterns, thereby undermining FAO’s capacity to influence decision-making in the face of fast-changing external contexts.

343. Under Programme 2.2.1, Codex and Codex-related activities would be relatively protected, while a regional training workshop on food safety risk management, one expert consultation on the risk assessment of microbiological hazards in food and one technical meeting on chemical hazards would be cancelled. For Codex, a ZNG budget would also mean the elimination of all six sessions of FAO/WHO Regional Coordinating Committees during the biennium. It would also imply reduction in work related to food composition and nutrition in emergencies, and impact on various publications, capacity-building and training activities. FAO’s contribution to joint normative work with other UN agencies on nutrient requirements would not be met. Scientific advice through two expert consultations on fats and oils and on carbohydrates in human nutrition, would need to be postponed or cancelled. Country-level work on household food security and nutrition would be negatively impacted by the reduction in the development of training guides, manuals and educational materials, and workshops in nutrition education, as well as manuals for need assessments and response in emergency situations.

344. Under Programme 2.2.2, the more limited resources available would be used in the first instance to maintain the regular statistical compilation activities and dissemination of standard outputs, to avoid severe consequences in the long term. ZNG would entail cancellation of work on environmental statistics, as well as income and investment statistics. The same scenario would: limit capacity to monitor governments’ expenditures on agriculture; delay work on developing additional indicators for measurement of food security; delay compiling, publishing and dissemination of statistics; and reduce the number of new CountryStat countries. Regarding information systems, the high expectations from the modernised FAOSTAT would not be met. ZNG resources and potential loss of posts would negatively impact the further development of the WAICENT corporate framework and the programme to bridge the rural digital divide, addressing regional priorities. ZNG would necessitate reduction of indexing, cataloguing and other services. The more limited corporate resources for library subscriptions would have to be supplemented by users, based on demands.

345. Under Programme 2.2.3, work on SOFA110 would rely on reduced inputs by external experts and stakeholders, while expenditures on promotion and dissemination of the publication would also be severely reduced. Analytical work on prospective changes in food consumption patterns would be curtailed, together with other analytical studies. This would clearly affect the underpinning of Global Food and Agricultural Perspective Studies. The GIEWS111-related missions and information development, and trade-related work would, however, be protected in line with the emphasis put on them at the recent meetings of the CCP and COAG.

346. Under Programme 2.2.4, ZNG would lead to postponement of work on the methodology for measuring the economic cost of hunger. Similarly, reports in support of the implementation of environmental agreements as well as meetings on methods for valuation of environmental externalities would be postponed, in particular as relates to the UN Convention to Combat Drought and Desertification. In connection with activities on diversification and competitiveness of

110 The State of Food and Agriculture 111 Global Information and Early Warning System on Food and Agriculture


agricultural commodities, which involve mainly project preparation and supervision of CFC112 projects which are submitted by Members to the various IGGs113, fewer projects would be processed for submission to the CFC. Therefore, increased dependency on extra-budgetary funds would be necessary to maintain this activity. Fewer, and/or shorter documents and analyses would be prepared for the IGGs. Work on commodity and trade policy support to developing countries for trade negotiations and implementation would be protected to respond to the deliberations of CCP and COAG.


347. For Programme 2.2.0, FIVIMS is expected to benefit substantially from extra-budgetary support under the EC/FAO Food Security Programme (Phase II) and separately funded projects at country level, including the formulation of a business plan and an advocacy and communication strategy. Another area of likely donor support is the implementation of the Voluntary Guidelines for the Progressive Realisation of the Right to Adequate Food adopted by the Council in November 2004, blending normative activities and technical assistance. Extra-budgetary funds are also expected to support policy frameworks in several countries, aiming at: 1) introducing food security and rural development objectives into Poverty Reduction Strategies; and 2) facilitating access to dynamic markets by smallholder farmers to prevent marginalisation.

348. Under Programme 2.2.1, such resources will support: 1) effective participation of developing countries in Codex work and in the implementation of Codex standards, guidelines and recommendations; 2) capacity-building of national food control systems and food safety initiatives, and regional conferences and global conferences; 3) expansion of community-centred approaches to improve household food security and nutrition within the context of sustainable livelihoods in several African countries; 4) strategies for meeting the nutritional, health and educational needs of HIV/AIDS orphans and other vulnerable children; 5) training-of-trainers in providing nutritional care and support; 6) school-based nutrition initiatives, including development of nutrition education curricula and materials, expansion of school gardens and establishing the FAO/WHO “Nutrition Friendly” programme; 7) "Feeding Minds, Fighting Hunger" and other public information and awareness-raising campaigns; 8) protecting and promoting good nutrition in emergencies; and 9) assessment of the double burden of malnutrition in developing countries in rapid economic transition and capacity-building to recognise and address the problem.

349. Extra-budgetary resources for Programme 2.2.2, will be used inter alia for statistical capacity-building for regional economic groupings in Africa through an inter-regional project. Trust Fund projects will continue to assist countries in developing and strengthening national agricultural statistics systems and for the preparation and conduct of agricultural censuses, and building capacities in the management of agricultural information.

350. Under Programme 2.2.3, extra-budgetary funds will allow to develop further GIEWS information technology applications, and the methodology of crop and food supply assessment missions. These funds will also be used to enhance monitoring work on agricultural policy indicators and commodity projections, analysis of food market behaviour in times of crisis and assessment of national and regional early warning systems.

351. Under Programme 2.2.4, extra-budgetary resources will support normative work on agricultural trade and food security, analytical studies on the functioning of commodity markets and on environmental and social certification feeding into technical assistance to countries. They will also support capacity-building in trade-related issues and the formulation of commodity strategies. Emergency needs will be addressed through methodologies and tools for food security need assessments and attention to seed systems. Extra-budgetary funds will also support work on issues

112 Common Fund for Commodities 113 Intergovernmental Commodity Groups


related to agricultural biodiversity and the potential of environmental service payments to promote poverty reduction goals.

Major Programme 2.3: Fisheries (all amounts in US$ 000)





Trust Fund

231 Fisheries Information 7,573 7,548 6,933 7,858 1,893 232 Fisheries Resources and

Aquaculture 12,358 12,672 11,824 13,172 17,413

233 Fisheries Exploitation and Utilisation

9,882 9,993 9,314 10,753 4,131

234 Fisheries Policy 11,406 10,887 10,234 11,402 24,334 239 Programme Management 6,003 6,386 6,050 6,386 0 Total 47,223 47,487 44,353 49,572 47,771 Programme Change from 2004-05 Programme of Work at MP level

264 (2,869) 2,349



352. Major Programme 2.3 will continue to address the implementation of the Code of Conduct for Responsible Fisheries (CCRF), the International Plans of Action (IPOAs) endorsed by the Committee on Fisheries (COFI) and Council, and other international instruments which provide the framework for national policies to pursue responsible and sustainable development in fisheries and aquaculture.

353. It will actively contribute to meet the goal of the World Food Summit and the Millennium Declaration of halving hunger by 2015. Emphasis will be given to activities aiming to increase the contribution of small-scale fisheries, which often supply fish and fishery products to local markets, to food security and poverty alleviation.

354. The importance of the CCRF found echo in the priority on fisheries given by other relevant international instruments such as the Plan of Implementation adopted by the Johannesburg Summit in 2002. The ecosystem approach to fisheries and aquaculture will be developed further and the contributions of inland fisheries and aquaculture to food security will be enhanced. Current information systems will be adapted to new needs. FAO will assist with the elimination of illegal, unreported and unregulated (IUU) fishing through the implementation of better management practices, including monitoring, control and surveillance (MCS).

355. Measures to reduce the negative impacts of fishing on the environment will be identified. Overall priority will be given to human and institutional capacity-building, particularly for small-scale fisheries development and in the area of fish trade, quality and safety. Partnerships with regional fishery bodies (RFBs) and national centres of excellence will be expanded in support of the newly adopted Strategy for Improving Information on Status and Trends of Capture Fisheries (Strategy-STF). The major programme will continue to devote a substantial part of its resources to support the field programme and the FAO regional fishery commissions and to respond to countries’ requests. In line with the recommendations of the last COFI and ensuing Ministerial Conference, the major programme will ensure due FAO participation in international reconstruction efforts in Tsunami-affected areas.


Programme 2.3.1: Fisheries Information

356. The programme will continue to provide Members and the international community at large with comprehensive information and statistics on fisheries and aquaculture, in support of status and trends monitoring and analysis, as well as for policy making and sector planning. In addition, it will continue to pursue the development of norms and standards for collection and exchange of fisheries information and statistics.

357. The Strategy-STF which was endorsed by FAO governing bodies and the UNGA114 in 2003, provides an overall framework for the improvement of data collection, analysis and exchange at the national, regional and global levels; implementation will benefit from a dedicated FishCode-STF project.

358. The programme will strive to expand partnerships with RFBs and national centres of excellence for the contribution of information to the Fisheries Global Information System (FIGIS) module on Fisheries Resources Monitoring System (FIRMS).

359. Even under ZRG conditions, it will probably be necessary to scale down work on fishing fleet statistics, despite increasing demands for such statistics, particularly in support of the IPOA on the management of fishing capacity and the FAO Compliance Agreement.

Programme 2.3.2: Fisheries Resources and Aquaculture

360. The programme will continue to cover the core areas of work established by COFI on the identification, cataloguing and mapping of commercially important species and fish resources of the oceans, assessment and monitoring of fishery resources, development and use of research and management methods and techniques aimed at ensuring sustainability of exploited fish resources. An electronic archive of geographical distribution and data on marine species of commercial importance will be expanded and major contributions will be made to various fisheries global information systems and to other regional and global initiatives to assess and report on the state of living marine resources of the oceans and related ecosystems. The programme will continue to give particular attention to the monitoring of key national, regional and global marine fisheries, to the updating of the review of the state of marine fishery resources of the world, the development of indicators, as well as to the production of summary reviews, manuals and technical guidelines to promote improved assessment and management of fishery resources in line with the CCRF and the ecosystem approach to fisheries (EAF).

361. Depending on resources available, the programme will also try to address new emerging issues such as identification, mapping, assessment and monitoring of marine ecosystems; possible impacts of climate change; assessment and rebuilding of endangered species (in relation to CITES115); marine protected areas (MPAs) and strengthening of current fishery resources monitoring and reporting. Work in these areas will require the building of databases, development of indicators and analytical protocols and improved reporting methods (including GIS116) on aspects such as biodiversity, critical or refuge areas, and species interactions.

362. In follow-up to the recommendations of the COFI Subcommittee on Aquaculture, the programme will work on analysis of development trends and conclude a major global prospective analysis of future aquaculture development based on regional reviews and workshops to be undertaken in eight different regions. The Third Session of the COFI Subcommittee on Aquaculture will be held in 2006. Technical reviews and guidelines will be prepared on issues such as: appropriate stocking schemes and habitat rehabilitation of inland fisheries, sea ranching, mariculture, seed and feed use in aquaculture, and also integrated aquaculture and irrigation in Africa. Other activities will deal with specialised databases and information systems on inland fisheries and aquaculture.

114 United Nations General Assembly 115 Convention on International Trade in Endangered Species of Wild Fauna and Flora 116 Geographical Information System


Programme 2.3.3: Fisheries Exploitation and Utilisation

363. The programme will assist countries with regard to fish utilisation and marketing in a manner consistent with national food security objectives. Human capacity-building for small scale fisheries development will be emphasised. Priority will also be given to capacity-building in relation to WTO117 agreements and their application to the fish industry, safety and quality management (with a greater emphasis on aquaculture) as well as activities that arise from the COFI Subcommittee on Fish Trade and relevant Codex Committees. The small-scale fisheries sector should be enabled to respond to opportunities for access to markets (promotion of appropriate technologies in processing, preservation, transport and storage, all of which can help to increase value-added, and reduce fish spoilage and wastage).

364. The programme will also give priority to combating IUU fishing and to evaluating and mitigating the impact of fishing on the environment as well as assessing its effects on small-scale and artisanal fishing communities. In particular, international cooperation on vessel monitoring systems (VMS) will be promoted and guidance will be provided on cost-effective use of monitoring control and surveillance assets and technologies. This will include further work on catch documentation, as requested by the last COFI. Studies on the physical impact of different fishing gears on the aquatic habitat will be continued and the environmental impact of marine debris and ghost fishing by lost gears will be reviewed. Guidelines and extension materials will promote the use of sustainable, cost-efficient and safe fishing operations.

Programme 2.3.4: Fisheries Policy

365. The programme will continue promoting the implementation of the Code of Conduct for Responsible Fisheries, its related instruments and other relevant international instruments, and elaborate additional guidelines (e.g. on capacity and small-scale fisheries). Technical assistance will be provided for the development of regional and national plans of action (NPOAs). Special attention will be given to IUU fishing and to port State measures. Support will be given toward sustainable capture fisheries and the development of sustainable aquaculture. The socio-economic, institutional and policy aspects of overcapacity, access to resources and fishing grounds in coastal and inland waters, participatory resources management, deep sea fisheries, marine protected areas, the ecosystem approach to fisheries, monitoring, control and surveillance will be addressed.

366. Regarding subsidies, the programme of work approved by COFI will be carried out, including on the role of subsidies in small-scale and artisanal fisheries and their impact on fishing capacity and on fisheries management in general. As more specifically underlined at the last COFI, guidelines on ecolabelling of fish and fishery products from capture fisheries will be developed and similar guidelines for inland fisheries will be prepared. Cooperation with other IGOs118 will be strengthened and active participation ensured in the international fora where fisheries are discussed (e.g. the UNFSA119 Review Conference in 2006). The gaps in regional cooperation will be reviewed and support given to regional fishery bodies and arrangements, particularly those recently established (RECOFI120 and SWIOFC121).

367. The programme has a substantial component of direct support to countries in fishery policy and arrangements, in response to Members’ demands, which is, however, largely dependent upon the possibility of securing extra-budgetary funding.

117 World Trade Organization 118 Intergovernmental Organizations 119 United Nations Fish Stocks Agreement 120 Regional Commission for Fisheries 121 South West Indian Ocean Fisheries Commission



368. In support of the Strategy-STF, RG would facilitate: further agreements for information exchange, dissemination of tools and procedures; new and improved data collection methodologies, standards and guidelines; and technical assistance to countries for capacity-building. Work on fishing fleet statistics would be reinstated, allowing FAO to fully address the issue of vessel authorisation information in support of the FAO Compliance Agreement.

369. The additional funding would allow the Organization to expand work, directly or through partnerships, on the identification, mapping, assessment and monitoring of marine ecosystems relevant to fisheries, the study of possible impacts of climate change on fisheries, and assessment and recovery of endangered species (in relation to CITES), thereby strengthening current global fishery resources monitoring and reporting activities. Increased resources would be devoted to the application of the ecosystem approach to fisheries and aquaculture, following the recommendations of the 2001 Reykjavik Conference. A P-4 post of Regional Aquaculture Officer would be created for the RLC region.

370. Furthermore, regional capabilities in fish technology, risk analysis and market information access would be strengthened. Capacity-building would be expanded in areas such as small scale fisheries, MCS, port State measures and more support given toward sustainable capture fisheries and the development of sustainable aquaculture. Taking account of the growing role of regional fishery management bodies and arrangements, more activities could be undertaken aiming to make these bodies - particularly those in Africa - more effective. More outputs would be included addressing e.g. the socio-economic, institutional and policy aspects of overcapacity and the role of capture fisheries and aquaculture in the economy.


371. Inevitably, ZNG would negatively affect data quality, timeliness and responses to requests for information under Programme 2.3.1. Work on fishing fleet statistics would be cancelled with consequent impact on monitoring implementation of the IPOA on fishing capacity, and FAO not being able to meet many of its obligations for the exchange of vessel information under Article VI of the Compliance Agreement.

372. Under Programme 2.3.2, reductions would force the Organization to scale down or stop altogether work in some areas where it has demonstrated to have clear comparative advantages vis-à-vis other organizations (such as the identification and cataloguing of commercial fish species, assessment and monitoring of world marine fishery resources, development and adaptation of indicators, guidelines and methodologies for fishery resources assessments and fisheries management). Other areas would need to be reduced significantly, due to the possible elimination of a professional post, resulting in delays in the implementation of the recommendations of the last COFI Subcommittee on Aquaculture.

373. Under Programmes 2.3.3 and 2.3.4, the number of planned national and regional workshops and meetings would be reduced, which would negatively affect implementation of the programmes. It would not be possible to convene workshops for the promotion of sustainable aquaculture and for projection of world fish consumption by country in 2020, while technical meetings would be reduced as well as publications. Less support to regional fishery bodies would be another inevitable consequence.


374. Under Programme 2.3.1, the first component of the project (FishCode-STF) launched in 2004 under the Strategy-STF will continue to develop and promote improved methodologies for fishery data collection. Funds will be sought to launch a second component for capacity-building on data collection and analysis.


375. Under Programme 2.3.2, several trust fund projects will support monitoring, assessment and management of marine fishery resources: Scientific Cooperation to Support Responsible Fisheries in the Adriatic Sea (AdriaMed); Assessment and Monitoring of the Fishery Resources and the Ecosystems in the Straits of Sicily (MedSudMed); Cooperation Networks to Facilitate Coordination to Support Fisheries Management in the Western and Central Mediterranean (COPEMED II); Scientific Basis for Ecosystem-based Management in the Lesser Antilles; Capacity-building for an Ecosystem Approach; Interaction between Sea Turtles and Fisheries within an Ecosystem approach to Fisheries Management; Protection of the Canary Current Large Marine Ecosystem; International Cooperation on Fisheries Management and Marine Environment and "Towards Sustainable Aquaculture: Selected Issues and Guidelines".

376. Extra-budgetary resources under 2.3.3 will be in terms of the GEF122-funded project entitled: "Reduction of environmental impact from tropical shrimp trawling, through the introduction of by-catch reduction technologies and changes of management", which is closely linked to entity 233A6, as well as the Umbrella II capacity-building programme for fisheries and multilateral trade negotiations in West Africa. Pipeline projects may also become operational for the rehabilitation/reconstruction of fisheries in Tsunami-affected areas.

377. Under Programme 2.3.4, significant extra-budgetary contributions come from the Sustainable Fisheries Livelihoods Programme (SFLP) which operates in 25 West African countries. Other contributions are grouped under the Programme of Global Partnerships for Responsible Fisheries and the UN Fish Stocks Agreement. Furthermore, additional resources are expected from either international financial institutions (for instance the Strategic Partnership for a Sustainable Fisheries Investment Fund in the Large Marine Ecosystems of Sub-Saharan Africa) or trust funds donors, such as the project on: Support for the Plan of Implementation of the World Summit on Sustainable Development or for strengthening RFBs, e.g. the project for facilitating the formation of a regional fisheries arrangement for the management of sustainable non-tuna fisheries in the southwest Indian Ocean.

Major Programme 2.4: Forestry (all amounts in US$ 000)





Trust Fund

241 Forest Resources 9,131 9,233 8,579 9,701 25,451 242 Forest Products and

Economics 9,193 9,261 8,617 9,866 431

243 Forestry Policy and Institutions

5,788 5,784 5,446 6,184 16,612

244 Forestry Information and Liaison

5,457 5,274 5,077 5,274 364

249 Programme Management

5,805 6,090 5,791 6,090 0

Total 35,374 35,643 33,510 37,116 42,858 Programme Change from 2004-05 Programme of Work at MP level

269 (1,863) 1,742



378. The major programme aims at sustainable forest management in its three dimensions: environmental, economic and social. During the biennium 2006-07, activities will be maintained on these three fronts, while placing emphasis on: sustainable forest management in the context of the Millennium Development Goals; FAO leadership in the international forest agenda, primarily

122 Global Environment Facility


through the Collaborative Partnership on Forests; further strengthening of international cooperation on forest fires; support to national capacity-building and forest programmes particularly through field projects, including the National Forest Programme Facility; and continued analysis and dissemination of information about forests and trees outside forests, including statistics, national and global forest resource assessments, support to countries, effective use of the Internet as a dissemination tool, and leadership in monitoring, assessing and reporting on sustainable forest management. In response to the Committee on Forestry (COFO) recommendation, increased support will be provided to regional forestry commissions to ensure they remain central to regional forestry processes and current international forestry dialogue.

Programme 2.4.1: Forest Resources

379. Sustainable forest management aims at ensuring that goods and services derived from forests and trees meet the needs of present and future generations, while at the same time securing their continuing availability and contribution to development. To this end, FAO will continue updating the global forest resource assessment and enhancing capacities for national forest assessment in 20 countries. FAO will provide countries with decision support information for management of planted forest and tree resources and increase assistance to smallholders in relation to plantation forest and agroforestry systems. New management approaches to fragile ecosystems, especially dry lands and mountain ecosystems will be tested and promoted in a number of countries. As specifically requested by COFO and the Ministerial Meeting held in March 2005, the programme will provide a forum for discussion and assist country and regional networks in combating fires and forest pests and diseases. It will support national strategies and plans against forest fires, including prevention and control, and facilitate inter-country cooperation. The role of forests in climate change and support to countries in climate change-related actions is another priority area. Developing countries will be provided with information on the potential benefits of new environmental markets, under the clean development mechanism (CDM).

Programme 2.4.2: Forest Products and Economics

380. The programme will continue to focus on the analysis and dissemination of forest products information, providing a long-term outlook for the forest sector and advice to member countries on sustainable harvesting and utilisation of forest products. Key activities will continue to be global and regional Forest Sector Outlook Studies covering analysis of the status, trends and emerging opportunities and challenges for the forest sector in the mid- and long-term. Support will be provided to countries to strengthen strategic planning at the national level, helping them adapt to the changing opportunities and challenges at regional and global levels. The global fibre supply and demand situation will be analysed. Another major thrust will be the economics of sustainable forest management, specifically in the tropics.

381. The programme will continue to provide data and information on production, consumption and trade of wood and non-wood products, as well as on wood fuels and their economics. It will also work towards the enhancement of forests and forest products' contribution to poverty alleviation while ensuring environmental sustainability by: 1) identifying the potential of non-wood forest products (NWFPs), improved harvesting and production methods, and wide dissemination of related knowledge at all levels; 2) re-appraising the value and potential of wood fuels as a clean, safe and economical energy source and raising awareness of their importance at policy level, including improved information systems; and 3) developing a regional code of forest harvesting for South America and assisting countries in Asia, Africa and South America to introduce reduced impact logging practices based on regional codes of harvesting.

Programme 2.4.3: Forestry Policy and Institutions

382. The programme will continue emphasising the vital role trees and forests play in addressing poverty and food security, and increasing awareness of the forest sector’s contributions nationally and internationally. Raising the profile of forests in national planning, policy development and poverty reduction strategies will be underscored. In addressing the social dimensions of sustainable forest management, FAO will aim at creating an enabling environment for better access to forest


resources and sustainable livelihoods by the rural poor. Participatory approaches to forest policy planning and fostering communities of professional practice will be major tools to support this goal. At the same time, the programme will continue strengthening institutional capacities to formulate, implement and enforce policies which promote sustainable development of the forest sector through: national forest programmes, promoting cross-sectoral approaches and addressing important issues such as privatisation and decentralisation. The programme will provide active support to strengthen the important function played by education, research and extension in forest development.

Programme 2.4.4: Forestry Information and Liaison

383. Ensuring synergies with other key organizations is a prime objective of this programme. As emphasised by the last COFO, FAO leadership in the international forest agenda, particularly through the Collaborative Partnership on Forests (CPF), will be a major priority. FAO's key role in providing country-based information at the regional and global levels will be further strengthened in partnership with countries themselves and with other international and regional organizations, at the same time contributing to national capacity-building. Monitoring and reporting on forests, and in particular on progress toward sustainable forest management, will be strengthened, including through a coordinated CPF information framework. High-quality forestry information will continue to be provided through publications including the State of the World's Forests and Unasylva, technical publications and policy guidelines, and a comprehensive Web site about forests. FAO will continue to serve as a venue for regional and global discussions on key forest issues by organising meetings of: regional forestry commissions and their working groups; international expert groups; technical statutory bodies such as the Advisory Committee on Paper and Wood Products; and the Committee on Forestry. Particular emphasis will be given to reinforcing regional forestry commissions. The programme will seek to better engage CPF partners in civil society in agenda setting and substantive discussions.


384. Support would be provided to more countries in translating agreed concepts of sustainable management of forests into action, and sharing the experiences more widely among stakeholders. Programme 2.4.1 would also expand the dissemination of new and innovative approaches to watershed management and prepare appropriate communication tools. Awareness of the implications of the Kyoto Protocol would be fostered with top level forestry administrators in several regions. The programme would also facilitate small-scale forestry and agroforestry projects under the CDM.

385. The additional resources for 2.4.2 would be applied to three outputs. Under the study of forests and forestry for the 2030 horizon, more emphasis would be put on demographic changes, links between economic development of forests and the evolution of technologies, and an expert consultation on forest trends would be held. The second output pertains to the economic analysis of forestry in countries in transition, i.e. approaches to enhance economic benefits from forests and support to capacity-building in economic analysis in these countries. The third would be the reduction of carbon emissions during harvesting operations.

386. The RG level for 2.4.3 would allow enhancement of work on national policy frameworks and institutional arrangements for increased participation of civil society. Support would also be provided to improve forest law compliance and ensure transparency in the management of public forests at country level.


387. The ZNG level would have to be met by abolishing a number of posts. Under 2.4.1, activities in Low Forest Cover Countries (LFCC) have included integrating desertification control programmes into national development plans and ensuring participation of all stakeholders, especially rural populations in the rehabilitation of degraded lands. With reduced resources, LFCC


support would become subject to extra-budgetary funding. Support to countries in implementing the action programmes of the UNCCD123 would be severely reduced. One statutory body, Silva Mediterranea, could be eliminated, unless extra-budgetary resources are identified.

388. Negative impacts are also expected from insufficient capacity to support countries in the prevention and control of forest fires at national and regional levels, to support forest fire networks and to elaborate guidelines on fire management. Assistance to countries in forest fire management would be dependent on extra-budgetary funding.

389. Under 2.4.2, it would not be possible to initiate new regional outlook studies and update previous ones. Work on forest products trade and environment would be eliminated. A planned major regional assessment of trends in production, consumption and trade in forest products and updated forecast for 2020 would have to be put on hold.

390. Under 2.4.3 and 2.4.4, ZNG would reduce capacity to promote problem-solving, participatory, multistakeholder approaches to enhance the contribution of trees and forests to sustainable land use and food security. Planned activities to address inadequacies in forestry institutions as the result of the HIV/AIDS pandemic, especially in Africa, would be halted. Support to the United Nations Forum on Forests and other dimensions of the international arrangement on forests would be severely curtailed in order to maintain adequate support to regional forestry commissions.


391. Under Programme 2.4.1, resources will be used for national forest assessments, enhanced knowledge on forest and tree resources and their management and pertinent analysis and inputs to national policy processes. They will also support implementation of sustainable forest management, including natural forests, plantations and trees outside of forests and work on concepts, methods and study cases of sustainable management across a wide variety of field situations. Other areas where extra-budgetary resources will be utilised are for programmes against wildfires and for the conservation of fragile ecosystems such as mountain regions and lands affected by desertification processes. Under Programme 2.4.2, resources are foreseen to enhance food security in Central Africa based on the valorisation of the full potential of NWFPs, especially forest foods.

392. Under Programme 2.4.3, the National Forest Programmes Facility will continue to support country efforts to put in place forest policy planning and implementation processes that effectively address local needs and national priorities, and reflect internationally agreed principles. So far, the Facility has provided grants to 42 countries and 4 partner organizations to support the participation of stakeholders and has been active in sharing experiences and knowledge worldwide. During the biennium 2006-07, an increased number of developing countries are expected to benefit from grants. Other areas where extra-budgetary resources will be sought are for community-based enterprise development founded on forest products in sustainably managed forests and for community-based forest fires prevention and management. They will also enable FAO to carry out additional work in the area of payments for environmental services.

123 United Nations Convention to Combat Desertification in those Countries Experiencing Serious Drought and/or Desertification, particularly in Africa


Major Programme 2.5: Contributions to Sustainable Development and Special Programme Thrusts

(all amounts in US$ 000) Programme 2004-05

Programme of Work


Work


Work


Work

Trust Fund

251 Research, Natural Resources Management and Technology Transfer

21,588 14,456 14,171 14,625 26,660

252 Gender and Population 6,058 10,760 9,839 11,510 7,396 253 Rural Development 8,580 10,912 9,489 11,682 24,021 256 Food Production in Support of

Food Security in LIFDCs 11,644 11,622 11,173 12,022 59,239


342 (3,230) 2,431



393. Major Programme 2.5 promotes sustainable development concepts, methods and practices aiming at environmental, social and economic well-being of rural people, especially the poor. As such, it relates closely to the MDGs124 and the outcomes of key global summits. The major programme ensures FAO’s leadership in the follow-up to the WSSD125, acts as corporate focal point for SARD126, gender, HIV/AIDS, communication for development, education, extension, training, land tenure, institutional strengthening, bioenergy, geo-spatial data infrastructure, and the multilateral environmental conventions on biodiversity, climate change and desertification. It also contributes to strengthening national capacities in research and technology and ensures close cooperation with regional and international agricultural research systems through the Secretariats of the CGIAR127 Science Council and the GFAR128. It provides policy advice, capacity-building support and information, with particular focus on reducing vulnerability to environmental, social and economic shocks, and rehabilitation in post-disaster and conflict situations.

394. Three component programmes are centred respectively on the environment and natural resources, also including agricultural research and appropriate technology application (Programme 2.5.1); people (Programme 2.5.2) - their knowledge, resources, social relations, equity and equality; and rural institutions (Programme 2.5.3), i.e. the norms, values, practices and organisational arrangements that affect how people access and manage land and other resources, implement programmes and govern themselves. In this context, programme priorities and entities have been refocused and streamlined, while improving conceptual coherence and equitably allocating programme resources. The fourth programme (2.5.6), implemented by the Technical Cooperation Department, helps to formulate, coordinate and monitor the Special Programme for Food Security (SPFS).

124 Millennium Development Goals 125 World Summit on Sustainable Development 126 Sustainable agriculture and rural development 127 Consultative Group on International Agricultural Research 128 Global Forum for Agricultural Research


395. The programmes were restructured and streamlined in the Medium Term Plan (MTP) 2006-11 and further fine-tuned in the PWB 2006-07. Therefore, work in response to increased demands for policy advice and technical assistance in the area of Education for Rural People, in line with the lead role assigned to FAO by WSSD regarding this initiative, will be shifted to Programme 2.5.2. Furthermore, the continuing development of conceptual frameworks, methodologies and training materials for information and communication technology (ICT) applications and content development, distance-learning and information dissemination, and impact assessment will also be moved to Programme 2.5.2. Work to reform and renew agricultural extension systems will be shifted to Programme 2.5.3.

Programme 2.5.1: Research, Natural Resources Management and Technology Transfer

396. Programme 2.5.1 is implemented by the Environment and Research Division (SDE) and covers inter alia: environmental assessment and early warning systems, geo-spatial analysis, tools and information systems, multilateral environmental agreements and support to national and regional agricultural research systems, including biotechnology and biosafety. In this context, SDE will maintain and strengthen partnerships with centres of excellence, policy groups and scientific and technical institutes. Work includes significant linkages with several PAIAs129, e.g. biodiversity, bioenergy, biosecurity, biotechnology, climate change, desertification, geo-spatial data, mountains, rehabilitation, as well as with the inter-departmental FIVIMS130 and SARD initiatives.

397. The programme will respond to country requirements for assistance in areas such as: bioenergy, environmental poverty mapping, tools and systems for environmental hot spot analysis, and support to drought, pest and emergency warning and response. Support to national research systems and biotechnology applications will also address the development of national and regional capacities to assimilate existing knowledge and serve national development policies and priorities.

Programme 2.5.2: Gender and Population

398. The work of the Gender, Population and Communication for Development Division (SDP) under Programme 2.5.2 is based upon the twin pillars of capacity-building and policy assistance to countries in the core areas of gender, HIV/AIDS and other, related diseases, and their relation with rural poverty and food insecurity. The programme will build capacity and provide tools and policy advice towards the accomplishment of the MDGs, in particular regarding the role of gender equality and mitigation of HIV/AIDS in the reduction of rural poverty and food insecurity. Within FAO and in countries, the programme will continue to ensure implementation of the FAO Gender and Development Plan of Action (2002-2007) and the Strategy on HIV/AIDS and other diseases that are exacerbated by endemic poverty. It will continue to respond to increased demand for policy advice and technical assistance in the area of education for rural people, which stems from the lead role assigned to FAO by the WSSD. Furthermore, the programme will continue to develop conceptual frameworks, methodologies and training materials for ICT131 applications and content development, distance-learning and information dissemination, and impact assessment, especially for the accelerated advancement of rural women and girls.

Programme 2.5.3: Rural Development

399. Programme 2.5.3 is implemented by the Rural Development Division (SDA). It may be noted that COAG fully supported, at its last session, work on land tenure and rural development and related institutional issues and made a call for an International Conference on Agrarian Reform and Rural Development in 2006. The programme will contribute to both the preparation for, and follow-up to, this conference. Moreover, it will ensure the preparation and testing of appropriate policy materials and the development of methodologies for sustainable, affordable approaches for access to

129 Priority Areas for Inter-disciplinary Action 130 Food Insecurity and Vulnerability Information and Mapping System 131 Information and communication technology


land and national land tenure security. Complementary outputs will support: 1) the preparation, testing and dissemination of policies and practices to strengthen SARD and sustainable livelihoods; and 2) methods for institutional analysis and capacity-building to strengthen the contribution of public, producer and community-based organizations to SARD, sustainable livelihoods for the poor, more responsive extension service systems, and reduction in rural people’s vulnerability to natural, economic and political shocks. FAO’s work on SARD, as Task Manager for Chapter 14 of Agenda 21, was also endorsed by COAG 2005.

400. Policies, institutional arrangements and methods will be developed to reform national extension systems in line with global developments and to satisfy emerging learning needs of men and women farmers. Effective partnerships among research, extension, private and public sector and farmer organizations will be promoted. All these outputs will be generated using participatory approaches. The agricultural and rural extension and training component of entity 251A4 will be integrated into entity 253A6. Entity 253P1, through the UN System Network on Rural Development and Food Security, will support country level work including the design and dissemination of rural development and food security policies and practices.

Programme 2.5.6: Food Production in Support of Food Security in LIFDCs

401. The Special Programme for Food Security (SPFS) will continue to assist Low-income Food-deficit Countries (LIFDCs) in their efforts to improve food security, both at household and national levels. Extra-budgetary resources, largely from the national budgets of the concerned countries, will also permit to extend support to non-LIFDCs which wish to participate in the programme. A particular feature of SPFS is reliance on South-South Cooperation (SSC) as the main source of technical assistance during its implementation, opening opportunities for developing countries to share experiences and expertise in agriculture and rural development (by May 2005, 36 SSC agreements had been signed, with about 700 SSC experts and technicians working with farmers and fishermen in the field).

402. The programme will continue to shift progressively from support for pilot activities towards assisting governments in the design and implementation of comprehensive National Food Security Programmes. Activities will also be broadened so that they address both the production and access dimensions of food security and will be better targeted to vulnerable communities through links with FIVIMS. As at 31 May 2005, six countries have already initiated action to implement National Food Security Programmes, with over 20 more countries planning for it, creating new demands on the Organization. The aggregate funds mobilised increased from an initial US$ 3.5 million (exclusively FAO funds) to over US$ 800 million, more than half committed by developing countries themselves. A number of formulation missions will be fielded including initiation of activities in four new countries (bringing the total to 106), food security activities expanded to national level in six countries and two additional SSC tripartite agreements.

403. The SPFS also provides assistance to regional economic organizations in the formulation and implementation of regional programmes for food security which, in addition to supporting national programmes, also address regional issues such as structural reform, policy harmonisation, removing trade barriers, ensuring food safety and control of transboundary animal diseases. The Organization has collaborated with 21 regional economic organizations in this regard.


404. Under 2.5.1, entity 251A6 would be able to implement recommendations from COAG and COFO132 that FAO expand its activities in the area of bioenergy. The higher resources would allow for better inputs to the UN Commission on Sustainable Development (CSD) and responding to regional and national requests for technical and policy guidance in assessing, managing and using national bioenergy resources.

132 Committee on Forestry


405. Programme 2.5.2 would reinforce normative activities and increase policy assistance regarding the impact of HIV/AIDS and other diseases on household and national food security. It would play a much more strategic role in the new UN system joint programming efforts to counter the triple threat caused by the combined effects of food insecurity, HIV/AIDS and other, often related, diseases, and weakened governance in sub-Saharan Africa. This includes using the relatively new and unique adult and junior farmer field and life schools, which target single parent or grandparent-headed households impacted by HIV/AIDS, or HIV/AIDS orphans, respectively.

406. Under 2.5.3, RG would permit an expanded programme to build capacities of decision-makers in designing and implementing policies and best practices for SARD, including more detailed analysis of the issues and practical training in policy design. This would contribute to work on the three SARD thrusts, as well as follow-up to the 2006 International Conference on Agrarian Reform and Rural Development, which were endorsed by COAG 2005. In addition, support would be provided for capacity-building of rural producers’ organizations and cooperatives in order to enhance business efficiency, incomes and household livelihoods, as existing capacity is severely constrained to respond to Members’ requests in this area.

407. The increase under 2.5.6 would be used to implement one additional programme of the SPFS and one additional South-South Cooperation agreement.


408. As regards Programme 2.5.1, work under entity 251A6: Support to Environmental Agreements and Promotion of Integrated Environmental Planning and Management, would be strongly reduced. Erosion of technical capacity would also occur in a core area of FAO’s comparative advantage: 251P1: Environmental Geo-Information Infrastructure and Services – due to fewer resources to maintain updated technology for the Geographical Information Systems (GIS) and FAO spatial data infrastructure for early warning systems.

409. Furthermore, reduction of resources would greatly affect the provision of information and technical assistance for capacity-building in biotechnology and biosafety (251A9). Support to networking among national research bodies and stakeholders to ensure access to appropriate technologies would be scaled down. Finally, technical assistance and advice on action-based research, the initiative to increase farmer participation in research, and efforts to integrate traditional knowledge in natural resource management would also be reduced.

410. Under ZNG conditions, Programme 2.5.2 would have to curtail important regional activities amid new and increasing demands relating to the impact of the HIV/AIDS epidemic on agriculture and food security. Loss of posts associated with the Communication for Development programme would hinder the ability of Programme 2.5.2 to follow-up on the UN Roundtable on Communication for Development organised by FAO in September 2004 and to co-host the World Congress on Communication for Development (WCCD) in March 2006 in Rome. Moreover, capacity-building, policy and advocacy on ERP133 activities, already planned together with international partners such as UNESCO134, IICA135 and the World Bank, as well as the consolidation of partnerships and the support to national youth development would be severely affected.

411. Programme 2.5.3 would incur loss of staff capacity to support countries in improving access of the rural poor to land and other development resources and services. The preparation and testing of appropriate policy materials on sustainable, affordable approaches for access to land and other natural resources and the development of methodologies for national arrangements to provide improved land tenure security would be severely restricted in two subregions. Lower staff capacity at headquarters would result in the drastic curtailment of support for policies and practices for SARD

133 Education for Rural People 134 United Nations Educational, Scientific and Cultural Organization 135 Inter-American Institute for Cooperation on Agriculture


which would be implemented only if extra-budgetary resources are made available, and in the discontinuation of support for the UN System Network on Rural Development and Food Security, under 253P1. Furthermore, lower staff capacity in decentralized offices will virtually eliminate support in restructuring and capacity-building of producers’ and community-based organizations and policy and methodological support for agricultural extension system reform in these regions. All these would have a severe cumulative effect on the preparations for, and follow-up to the International Conference on Agrarian Reform and Rural Development.

412. The reduction, under 2.5.6 would imply lower targets for the upscaling of the programme and for support to South-South Cooperation agreements.


413. Programme 2.5.1 is to benefit from somewhat expanded extra-budgetary resources for the Global Land Cover Network (GLCN), poverty mapping in support of the Millennium Development Goals, environmental information systems and tools for food security, and the development of UN and FAO geo-spatial data infrastructure (GeoNetwork). Given rapidly growing interest in bioenergy, the programme will seek to bolster limited Regular Programme resources through extra-budgetary means in order to meet related demands in countries.

414. Extra-budgetary resources will also facilitate assistance to countries to improve public awareness, in the application of biotechnology, strengthening capacity in biosafety procedures and in harmonising frameworks. Work on agricultural research, natural resources policy and planning, and ensuring linkages among agricultural research and extension institutions, is also expected to receive extra-budgetary support during the biennium.

415. Programme 2.5.2 will benefit from the ongoing DIMITRA136 project which supports normative work across all entities. The continued refinement and dissemination of the SEAGA137 programme, and FAO's efforts to mitigate the impact of the HIV/AIDS pandemic on agricultural production and household food security may also be facilitated by the framework agreement with Norway and, possibly, funds drawn from the FAO/Netherlands Partnership Programme (FNPP). Continued operational work at country level will be buttressed by extra-budgetary support, possibly through inter-agency collaboration, especially in East and Southern Africa with WFP138 and UNICEF139, particularly for SEAGA training and HIV/AIDS work. Finally, extra-budgetary funds will support capacity-building under the Education for Rural People programme and awareness on the application of ICTs for food security.

416. Under Programme 2.5.3, a donor-funded inter-departmental project will continue to support institutional learning methodologies for promoting sustainable rural livelihoods of the poor, and working models for enhancing livelihoods in FAO field programmes and projects (253A6). Extra-budgetary resources are also expected for the implementation of the SARD Initiative and for SARD in mountain areas (253A6). Donor support will be provided for the preparation of guidelines on computerisation of agricultural cooperatives. A GEF140-funded project on conservation and sustainable management of Globally Important Ingenious Agricultural Heritage Systems (GIAHS) is now implemented by SDA.

417. As recalled above, field action under the SPFS is mostly implemented through extra-budgetary resources received from bilateral and multilateral donors, international financial institutions and national budgets of participating countries. Africa, where the SPFS is operational in

136 Rural Women and Development (FAO/King Baudouin Foundation) 137 Socio-economic and Gender Analysis Programme 138 World Food Programme 139 United Nations Children’s Fund 140 Global Environment Facility


43 countries, and Latin America/Caribbean, where the SPFS is operational in 25 countries, are the largest beneficiaries of this extra-budgetary funding.


Chapter 3: Cooperation and Partnerships (all amounts in US$ 000)





Trust Fund

31 Policy Assistance 29,653 32,013 30,052 32,297 14,828 32 Support to Investment 55,128 54,940 52,173 57,240 3,903 33 Field Operations 24,646 24,323 23,621 24,323 0 34 FAO Representatives 82,247 82,556 81,853 86,506 0 35 Cooperation with External

Partners 11,800 13,552 12,191 13,552 19,661

39 Programme Management 2,288 2,316 2,279 2,316 0 Total 205,762 209,700 202,169 216,234 38,392 Programme Change from 2004-05 Programme of Work at Chapter level

3,938 (3,592) 10,472


Major Programme 3.1: Policy Assistance (all amounts in US$ 000)


Work


Work


Work


Work

Trust Fund

311 Coordination of Policy Assistance and Field Programme Development

6,841 6,962 6,739 6,962 11,380

312 Policy Assistance to Various Regions

14,511 17,117 15,787 17,147 0

313 Legal Assistance to Member Nations

3,539 3,709 3,520 3,963 3,448


2,359 399 2,643



418. Major Programme 3.1 draws upon the normative policy analysis work of various technical units within FAO and is, for the most part, implemented by Regional and Subregional Offices. Programme 3.1.3 is implemented by the Legal Office (LEG). In 2006-2007, there will be a strong emphasis on developing a baseline of sound knowledge of the agricultural and food sector, including driving forces for change, major opportunities and constraints. This will allow FAO to better target its policy and strategic advice and to identify the most critical entry points for field programme development. In doing so, FAO will ensure close links with national development plans, Poverty Reduction Strategy Papers (PRSPs), and UNDAF141. Given the extensive involvement of countries in regional integration agreements and treaties, policy assistance will be further extended to regional economic organizations to secure convergence and harmonisation of development policies, strategies and priorities in areas of FAO’s mandate.

419. The major programme will be guided by the recommendations of the inter-departmental Policy Task Force which brings together technical units and the Policy Assistance Division (TCA) as

141 United Nations Development Assistance Framework


well as decisions of the governing bodies regarding the role of FAO in helping countries to achieve sustainable development, bearing in mind the MDGs142. Programme entities were subject to progressive rationalisation, in line with the recommendations of the Programme Committee, and combined where possible so as to avoid fragmentation and spreading of resources too thinly. In terms of allocation of resources, there will be a marked shift in favour of Programme 3.1.2: Policy Assistance to Various Regions both for staff and non-staff resources. Within Programme 3.1.1, the largest reallocation of resources is made in support to country and regional sector information and analysis. The findings of the auto-evaluation exercise conducted in 2004 have also been reflected.

420. As regards thematic coverage, the following three main areas will be most prominent in policy and strategic advice: trade-related policies; competitiveness and regional integration; macro and sector policy reform. Under the ‘country focus’ activities, each decentralized unit will regularly carry out country and regional sector studies. This will permit to identify where advisory services would yield greatest gains and to progressively upgrade the Country Office Information Network (COIN) as well as its interface with the country information system within the Field Programme Management Information System (FPMIS).

Programme 3.1.1: Coordination of Policy Assistance and Field Programme Development

421. This programme includes: bridging and adapting the normative work of technical departments for outreach by decentralized policy assistance groups; development of training and policy materials; direct participation in policy advice; capacity-building and field programme development. Special attention will be given to sharing knowledge across the various regions. The programme will continue inter alia to:

• enhance country focus by ensuring availability of relevant data on country situations and strategic priorities through a Web-based country information system;

• provide support to country and regional sector information and analysis; • ensure effective provision of technical assistance under the field programme related to core

issues of agricultural development and food security (additional resources have been allocated for this purpose); and

• ensure efficient delivery of policy advice and capacity-building to Members, in particular through interdisciplinary approaches.

Programme 3.1.2: Policy Assistance to Various Regions

422. This programme covers the work of the decentralized policy assistance branches and units in both policy advice and field programme development for countries and regional organizations. It plays a major role in maintaining country focus for FAO activities. Sector and subsector reviews and analyses of selected policy issues are conducted to strengthen policy advice and better target the field programme.

423. Following the guidance provided in particular by the Programme Committee that due priority should be given to maintaining the capacity to deliver policy assistance in the regions, five professional posts will be reinstated under Programme 3.1.2, and non-staff resources augmented to enhance delivery of decentralized groups thereby offsetting the cuts enforced in the revised PWB 2004-05. These groups will aim at:

• improved regional and country sector information and analysis and better targeting of policy and strategic advice;

• closer adaptation of field programme development approaches to emerging development aid modalities; and

• harmonised inter-departmental cooperation with FAO country offices as they develop agreements for priority areas of technical assistance and field programme development.

142 Millennium Development Goals


Programme 3.1.3: Legal Assistance to Member Nations

424. Programme 3.1.3 is designed to improve the legal and institutional framework for agricultural development and natural resources management in countries. It operates through three principal means: technical advice for law design and legal reform; production and dissemination of legal information; and legal inputs to inter-departmental normative work, in particular through the Priority Areas for Inter-disciplinary Action (PAIAs) covering biosecurity, biodiversity, biotechnology, climate change, multilateral trade negotiations and organic agriculture. Under ZRG, it will seek to meet priority demands for legal advice, policy assistance and information from Members, including in emerging areas of food and agricultural law such as ‘right to food’-related national legislation.


425. Real growth would permit additional legal assistance to countries, especially the smaller ones, to cope with new treaties, regional integration mechanisms and globalisation challenges (under 3.1.3).


426. ZNG would force a return to the severe budgetary cuts in the revised PWB 2004-05. It would make it impossible to bring the staffing of decentralized policy branches and units back to critical mass; the Pacific subregion, for example, has only one outposted TCA staff member. FAO’s outreach capacity would be impaired at the very time when the international community is pushing for faster implementation of the Millennium Development Goals and is calling for UN system reforms designed to deliver strategic and policy assistance. TCA capacity to systematically draw the attention of technical departments to field programme opportunities would also be more limited.


427. Extra-budgetary resources are expected in particular to support the detailed formulation and mobilisation of funds for national and subregional agricultural projects and programmes related to the New Partnership for Africa’s Development (NEPAD) in Africa. Some additional funds are also expected in support of on-line training on policy and planning. Programme 3.1.3 benefits from the contributions of several APOs143.

143 Associate Professional Officers


Major Programme 3.2: Support to Investment (all amounts in US$ 000)





Trust Fund

321 FAO/World Bank Cooperative Programme

35,761 32,391 32,699 32,391 0

322 Investment Support Programme

19,367 22,548 19,474 24,848 3,903


(189) (2,955) 2,111

Percent Change (0.3%) (5.4%) 3.8%


428. This major programme is aimed at promoting investment in agriculture, rural development and sustainable use of natural resources. The Investment Centre (TCI) will continue to work closely with its international and national partners to generate investment for agriculture and rural development from international and domestic resources, helping to reverse the declining trend of the last decade. Assistance (including building local capacity) in the preparation of investment and complex technical cooperation projects that respond to the priorities of developing and transition countries, and which meet the funding criteria of multilateral and bilateral financing agencies, remains the main focus of work, involving cooperation with some 20 major financing and related institutions. On average, TCI recovers 54 percent of the total cost of its support to investment from partner financing institutions.

429. TCI will interact with international financing institutions and national governments through its diagnostic and analytical work in pursuit of viable investment programmes. This will include giving a stronger rural focus to key strategic exercises, such as the Country Assistance Strategies (CAS) of the World Bank and national Poverty Reduction Strategy Papers (PRSPs), as well as strengthening governments’ capacity to formulate agriculture and rural development projects and programmes. The ‘regionalization’ of TCI operational services will facilitate cooperation with partner financing and bilateral donor institutions.

430. TCI will also support FAO's programmes at large, e.g. through the formulation of expanded national programmes for food security, and post-emergency recovery and reconstruction projects, in collaboration with TCOS144 and TCE145, respectively. It anticipates increased activities concerned with mobilising transfers to countries of a non-lending nature: ‘debt relief’ through the use of debt-for-development swaps, support for sector-wide approaches (SWAps) in agriculture and the exploration of environment-friendly options for attracting resources for carbon sequestration and other non-traditional forms of development assistance.

431. The programme structure has been refined in line with the Medium Term Plan 2006-11, to streamline planning, target setting and financial monitoring and reporting. In line with expected strong increase in demand from the World Bank, particularly for Africa, a sizeable part of the major programme’s overall resources will continue to be committed to the cost-sharing agreement between FAO and this key partner. The shift in resources from Programme 3.2.1 to Programme 3.2.2 is an adjustment to reflect the actual cost of operations under these two programmes in the present

144 SPFS Monitoring and Coordination Service 145 Emergency Operations and Rehabilitation Division


biennium. It should be noted that the level of activities undertaken with cooperating institutions other than the World Bank had been reduced in the PWB 2004-05.


432. TCI would be able to restore activities with cooperating institutions under Programme 3.2.2 to its former level. This would mean expanding work beyond core partners such as IFAD, WFP and AfDB146 and encouraging more collaboration with regional banks such as AsDB, IsDB, CAF, CDB147 , etc.


433. Work with the World Bank would remain at its present level so as not to jeopardise the cooperative programme which is defined through a firm contractual arrangement. However, there would be no capacity to respond to the Bank’s demand for supplementary services in support of its increasing lending programme in agriculture and rural development.

434. Programme 3.2.2 with non-World Bank cooperating institutions would be reduced very significantly, if compared with the current level of ISP work. ZNG would entail reductions in the level of cooperation with core partners (IFAD, WFP and AfDB) and require freezing activities with other 19 cooperating institutions, including AsDB, IsDB, EBRD148 and CAF.

Major Programme 3.3: Field Operations (all amounts in US$ 000)





Trust Fund

331 Field Operations in Various Regions

5,056 3,842 3,663 3,842 0

332 Central Support and Special Activities

4,692 4,510 4,146 4,510 0

333 Emergency Operations and Rehabilitation

13,750 15,259 15,178 15,259 0

339 Programme Management 1,148 711 634 711 0 Total 24,646 24,323 23,621 24,323 0 Programme Change from 2004-05 Programme of Work at MP level

(323) (1,026) (323)

Percent Change (1.3%) (4.2%) (1.3%)


435. Support arrangements for the field programme comprise the Field Operations Division (TCO) and the decentralization of operational responsibility from the regional offices (operations branches) to FAO country offices and technical officers. They became fully operational during 2004-

146 International Fund for Agricultural Development (IFAD); World Food Programme (WFP); African Development Bank (AfDB) 147 Asian Development Bank (AsDB); Islamic Development Bank (IsDB); Caja Andina de Fomento (CAF); Caribbean Development Bank (CDB) 148 European Bank for Reconstruction and Development


2005, thereby reducing cost of support to the field programme and bringing the operation of national projects closer to where action takes place.

436. Major Programme 3.3 will continue to seek enhanced information, transparency and streamlined procedures and processes covering the entire project cycle. It is expected to be affected significantly by follow-up to the Independent Evaluation of FAO’s Decentralization, particularly as regards design of cost-effective and efficient processes and structures for field programme implementation in the regions and at country level.

437. Under Programme 3.3.1, the Regional Operations Branches (ROBs) ensure coordination, backstopping and monitoring of the field programme in the region, with the following main functions:

• to provide analytical information on the performance of the field programme as well as continuous analysis of current and forecast performance (delivery forecasts and pipeline monitoring);

• to operate national projects in countries without FAORs and regional projects within the region; and

• to support the various project budget holders in the region through effective monitoring and training and preventive measures to address problems in project operations.

438. Programme 3.3.2 covers, in particular: close cooperation with administrative units to streamline procedures and enhance information technology (IT) tools at the disposal of operating units, including FAOR offices; updated procedures for field programme development, operations and monitoring; maintenance and enhancement of the Field Programme Management Information System (FPMIS); monitoring and reporting on the field programme, including periodic or ad hoc reviews and responses to audit reports, and improved reporting for senior management at headquarters and regional offices. Emphasis will continue to be placed on training, in particular for new FAO Representatives and other staff involved with the field programme, and to identification of risks, issues or constraints that could arise from a changing operational environment, including on-site visits to selected decentralized offices and projects.

439. The programme includes other activities such as: overall management of the preparation of project terminal reports; support to the Field Programme Committee; the Secretariat of the Programme and Project Review Committee (PPRC); and management of fellowship programmes.

440. Programme 3.3.3 covers activities of the Emergency Operation and Rehabilitation Division (TCE). In 2004, TCE managed more than US$ 270 million in operations, while FAO’s emergency and rehabilitation activities have evolved from input distribution to a broader range of assistance to deal with complex emergencies and rehabilitation programmes. Through direct assistance in the field, FAO’s overall strategy is to save, restore and enhance agriculture and fisheries based livelihoods to reduce vulnerability, increase self-reliance, and enable an exit from food aid. The programme gives priority to: 1) gathering and disseminating information on affected livelihoods and external assistance required; 2) contributing to the mobilisation of resources in response to emergency crises; 3) strengthening partnerships with other UN agencies and NGOs149including within the Resident Coordinator system. It seeks to ensure optimal involvement of all concerned FAO units and that dialogue with donors is at the appropriate decision-making level. An increase in the small Regular Budget share of 3.3.3 is made to strengthen TCE's capacity to deal with rehabilitation programmes.


441. Under ZNG conditions, non-staff resources would need to be reduced substantially, putting at risk cohesion and coherence of the field programme in a decentralized operating environment. The risk of non-compliance with basic standards would, therefore, augment, particularly in

149 Non-governmental Organization


decentralized offices. This would entail increased cost for corrective action and reduced field programme delivery performance.

Major Programme 3.4: FAO Representatives (all amounts in US$ 000)





Trust Fund

340 FAO Representatives 82,247 82,556 81,853 86,506 0 Total 82,247 82,556 81,853 86,506 0 Programme Change from 2004-05 Programme of Work at MP level

310 (394) 4,260



442. The FAO Representatives (FAORs) will continue to be focal points for contact with the respective host governments, civil society and the donor community in countries of accreditation. They help focus FAO’s expertise where and when it is most needed; monitor national developments relevant to food and agriculture; mobilise technical and policy advice; and channel and coordinate FAO’s technical cooperation activities and emergency operations. FAORs work under the overall supervision and oversight of OCD150 and with the support and functional guidance of technical, policy, operational and administrative units at headquarters, as well as in Regional and Subregional Offices.

443. The upstream programming functions of FAORs are embedded in those of the UN Country Team within the Resident Coordinator System, involving participation in exercises such as the common country assessment (CCA), the United Nations Development Assistance Framework (UNDAF) and poverty reduction strategies, as well as to support achievement of the World Food Summit and Millennium Development Goals. In emergency-affected countries, the upstream work of FAORs feeds into UN Consolidated or Flash Appeals contributing to needs assessments for emergency interventions. As recommended by the Independent Evaluation of FAO’s Decentralization, during the 2006-07 biennium the FAO’s country programming process will progressively be structured around national medium-term priority frameworks which will be intimately linked to the respective governments’ development plans.

444. As donors delegate greater responsibility for project approvals to the country level, FAORs play a critical role in the development of the field programme, assisting with the identification, formulation and appraisal of projects, and mobilising resources from local donor representations. FAORs have operational responsibility for national technical cooperation projects and support regional projects with activities in their countries, and they are making increasingly significant contributions, under TCE’s151 overall responsibility, to the implementation of emergency projects.

445. FAORs communicate FAO’s messages and policies at country level, liaise with the media and organise advocacy activities such as World Food Day and TeleFood events, as well as National Alliances Against Hunger. They also contribute to other UN advocacy activities, facilitate the transfer of information and knowledge between FAO and its partners at country level and ensure a two-way flow of data and information between the Organization and countries.

150 Office for Coordination of Normative, Operational and Decentralized Activities 151 Emergency Operations and Rehabilitation Division


446. The major programme has been allocated an additional US$ 2.5 million at ZRG, along with expected improved income recovery of US$ 1 million, to partially offset the severe impact on the operational capacity of the FAOR network stemming from a net reduction of US$ 5.2 million in the biennium 2004-05. As follow-up to the Independent Evaluation of FAO's Decentralization, measures will be taken, within the available budget, to improve the cost effective delivery of FAO services and strengthen capacities of the FAOR Network, such as through the conversion of International Administrative Officer posts to National Administrative Officer (NAO) posts. The increased resource allocation for the FAOR network is not apparent in the tables as a transfer of US$ 3.4 million in security resources was made to the proposed Chapter 9: Security Expenditure Facility.


447. RG would further restore the responsiveness and capacity for service delivery by FAO Representations at a more sustainable level. It would allow to accommodate measures in follow-up to the evaluation of decentralization through, inter alia: enhancing FAO’s country programming process using National Medium-term Priority Frameworks and strengthening FAO’s participation in UN Country Team activities (e.g. CCA/UNDAF, PRSPs, MDGs152).


448. Major Programme 3.4 has been protected under the ZNG scenario to maintain the capacity of the FAOR network and to allow it to respond to the evaluation of decentralization.

Major Programme 3.5: Cooperation with External Partners (all amounts in US$ 000)


Work


Work


Work


Work

Trust Fund

351 Multilateral and Bilateral Agencies 4,994 5,507 5,175 5,507 11,645 352 Civil Society Awareness and

Partnerships 5,747 7,012 6,106 7,012 5,124

353 Cooperation Agreements with Member Nations and Support to ECDC and TCDC

1,059 1,034 910 1,034 2,892


1,752 392 1,752



449. Programme 3.5.1: Multilateral and Bilateral Agencies is aimed at further expanding and diversifying funding for the field programme, including sustained and dynamic dialogue with all development partners. Close cooperation is ensured with activities under Programme 3.1.1 and the decentralized policy assistance groups under Programme 3.1.2 to better match field programme development to FAO’s key areas of expertise. The programme will seek to adapt FAO’s action to new trends: decentralization of decision-making authority by several important donors; growing orientation of donor assistance towards achieving the MDGs153 and PRSPs154; increased desire of

152 Poverty Reduction Strategy Papers (PRSPs); Millennium Development Goals (MDGs) 153 Millennium Development Goals


development partners to harmonise and align procedures; preference for programme approach over project-based funding; readiness to explore multidonor funding modalities (especially in Asia and in Africa); adoption of general budget support, SWAps155 and ‘basket funding’. The APO156 programme will continue to be promoted and supported.

450. Programme 3.5.2 addresses important components of the cross-cutting organizational strategy on Broadening partnerships and alliances. It promotes a corporate framework for effective partnership to guide various units in FAO involved in enhancing cooperation with different partners. The joint FAO-civil society action plan and its key target areas developed in follow-up to the WFS157: five years later, as well as the parallel NGO/CSO158 Forum, will continue to guide this programme. Emphasis will be placed on civil society participation in, and contribution to global policy fora, including the International Alliance Against Hunger (IAAH), and in conjunction with FAO Regional Conferences and the Special Forum of the CFS159 in 2006.

451. Due emphasis will also be given to enhancing dialogue and sharing information with private sector partners, including opportunities for mobilising private sector support to specific FAO programmes. Programme 3.5.2 will continue to coordinate FAO's participation in the United Nations Development Group (UNDG) and its various working mechanisms, and to promote the involvement of local administrations from developed and developing countries as new partners in rural development and food security.

452. The IAAH Secretariat, which serves communication and coordination among the Alliance members (FAO, IFAD, IPGRI, WFP160, International NGOs, IPC161 and National Alliances), will be strengthened by resources transferred from Programme 1.3.1 and extra-budgetary support. The IAAH will interface with the implementation process for the MDGs and other international efforts in calling attention to policy reforms and programme initiatives to reduce hunger. With funds from donors and with the collaboration of Rome-based agencies and international partners, IAAH will conduct aggressive advocacy public awareness campaigns with national alliances in countries and globally.

453. Programme 3.5.2 also includes coordination, planning and implementation of World Food Day (WFD) observance and the TeleFood campaign, the use of FAO Ambassadors and promotion of county-level involvement and civil society participation through the dissemination of information. Information campaigns for WFD and TeleFood, including the use of FAO Ambassadors, will be more fully integrated to raise awareness of the plight of the hungry and mobilise resources to fund small projects targeted at helping poor communities.

454. Under Programme 3.5.3, the implementation of the partnership programmes benefits Members in terms of capacity-building and greater leverage for the limited resources at FAO’s disposal. OCD162 will continue to provide central coordination and support to the implementation of the partnership programmes, taking into account the needs of all stakeholders. Innovative ways and means of promoting these programmes will be explored to enrich the pool of experts and scientists.

154 Poverty Reduction Strategy Papers 155 Sector-wide approaches 156 Associate Professional Officer 157 World Food Summit 158 Non-governmental Organization (NGO); Civil Society Organization (CSO) 159 Committee on World Food Security 160 International Fund for Agricultural Development (IFAD); International Plant Genetic Resources Institute (IPGRI); World Food Programme (WFP) 161 International NGO/CSO Planning Committee for Food Sovereignty 162 Office for Coordination of Normative, Operational and Decentralized Activities



455. Programme 3.5.1 would undergo, inter alia, a decrease in the resources available to the Project Identification Facility which is instrumental in building up the field programme pipeline. ZNG would slow down progress in adapting to new funding modalities for FAO, including under increasingly popular direct budgetary support, and in the expansion of the unilateral trust fund (UTF) programme.

456. Under Programme 3.5.2, the full range of strategic partnerships could no longer be addressed through a dedicated unit. Activities related to cooperation with NGOs/CSOs, private sector, UNDG, the decentralized cooperation programme and the Secretariat function for the Field Programme Committee and Emergency Coordination Group would have to be absorbed by other organizational units in the Technical Cooperation Department. Under Programme 3.5.3, the implementation of Partnership Programmes would be constrained.

Major Programme 3.9: Programme Management (all amounts in US$ 000)





Trust Fund

390 Programme Management

2,288 2,316 2,279 2,316 0


29 (8) 29


457. This major programme covers the Office of the Assistant Director-General (TCD), including the Programme Coordination Unit (TCDP).


Chapter 4: Technical Cooperation Programme (all amounts in US$ 000)





Trust Fund

41 Technical Cooperation Programme

98,645 98,645 94,645 102,645 0

42 TCP Unit 4,382 4,442 4,423 4,542 0 Total 103,027 103,087 99,068 107,187 0 Programme Change from 2004-05 Programme of Work at Chapter level

59 (3,959) 4,159



458. The Technical Cooperation Programme (TCP) has been under review through a process led by FAO’s Programme Committee. This review had been wide-ranging and is intended to strengthen the programme’s impact and overall effectiveness. It has involved extensive consultation with key stakeholders both inside and outside the Organization, including governments and international development partners. The review is expected to lead to substantial changes in the policy and operational framework of the programme.

459. Subject to the endorsement of related proposals by the Committee and the Council, the elements for a strengthened TCP in the next biennium would include:

• New strategic focus, primarily on the World Food Summit target and the Millennium Development Goals (MDGs), consistent with FAO’s Strategic Framework and its commitment to the MDG process, but not to the exclusion of projects related to an enhanced supply of global public goods;

• Strengthened TCP priority-setting processes at the country level, involving the government, FAO and other stakeholders to identify the best opportunities for using TCP resources, and integrated into the National Medium-Term Priority Frameworks to be set up in response to the Independent Evaluation of FAO’s Decentralization;

• Enhanced role of FAORs and other decentralized offices, through adequate delegation of responsibilities;

• Full delegation of authority to FAORs to approve TCP Facility projects up to US$ 100 000 in a biennium;

• An increase in the maximum budget ceiling for all TCP projects from US$ 400 000 to US$ 500 000;

• Improved measures for emergency assistance TCP projects, including greater emphasis on the provision of immediate technical assistance to governments and a heightened emphasis on catalytic effects;

• New modalities for submission and approval of regional and inter-regional projects from governments and established regional bodies;

• Greater attention to outcomes and impact assessment, including: 1) the adoption of measures to raise impact and improve sustainability; and 2) the development of tools and methodologies to better assess the impact of TCP projects, their contribution to sectoral and national priorities and their responsiveness to the country level priorities of the UN system and other international development partners; and

• Improved procedures and guidelines, including: revising the TCP guidelines to respond to the final decisions of governing bodies; training for FAO staff in project design and formulation; further steps to accelerate project approval; and maximum transparency in the processing of TCP requests.


460. Subject to the decision of the Programme Committee and the Council, new criteria to determine the eligibility of member countries for TCP assistance would be established along with new criteria to determine the eligibility of individual requests for TCP assistance in order to ensure that they are adapted to fit the realities of the present time.

461. During the 2004-05 biennium, measures were implemented to enhance the performance of the programme. Changes in procedures took account of the increased responsibilities of FAORs and TCP project budget holders, as well as staff at other FAO’s decentralized offices at all stages of the TCP project cycle from project identification to project completion. Other measures were introduced in direct response to concerns raised by FAO’s governing bodies and the External Auditor about both TCP approval rates and delivery. As a result of these and other ongoing initiatives designed to improve operational efficiency, TCP approval and delivery have both reached unprecedented levels.

462. It is recalled that a process for systematically evaluating thematic clusters of TCP projects is now well established. Nine evaluations have so far been carried out by the Evaluation Service covering projects in the fields of food quality control (1997); apiculture and sericulture (1998); legislation (1999); policy assistance (2000); animal health (2001); emergency relief operations (2002); crop production (2003); fisheries exploitation and utilisation (2003); and livestock production, policy and information (2004).

463. Other relevant developments are also worth recalling: • Continuing expanded use within TCP projects of expertise from the partnership

programmes; • Growing utilisation of TCP in support of the Special Programme for Food Security

(SPFS), including more recently, demands to support up-scaling of regional and national food security programmes;

• Streamlining of procedures for the approval of TCP Facility projects by FAORs that strengthen their capacity to provide technical services to FAO governments in the form of local/national consultancies to assist them in solving specific technical problems; formulating project ideas for extra-budgetary funding sources and carrying out small sector studies;

• Streamlined procedures for the reimbursement of the technical support services rendered by FAO’s technical divisions to TCP projects;

• Enhanced working methods for collaboration among all parties concerned (TCOT163, FAORs, FAO technical units and operational branches) at the various stages of the TCP project cycle (identification, analysis, formulation, evaluation and finalisation of the project proposal).

464. The table below shows the evolution of TCP allocations by region between 1994-95 and 2002-03. Variations largely reflect the demand-driven nature of the TCP by region.

Distribution of TCP Allocations by Region (percentage) Region 1994-95 1996-97 1998-99 2000-01 2002-03

Africa 41.7 39.4 40.6 37.1 44.8 Asia and Pacific 24.4 21.1 19.2 25.1 22.3 Europe 5.9 10.4 10.5 7.6 6.7 Latin America and Caribbean 18.2 18.5 18.8 18.7 16.4 Near East 9.8 10.6 10.9 11.5 9.8

465. The TCP makes an important contribution to other Regular Programme activities and is a significant tool for ensuring synergy between FAO’s normative and operational activities. The graph below illustrates how TCP interventions relate to the Organization’s major sectors of activity (as inferred from the Lead Technical Units for projects).

163 Technical Cooperation Service


466. In addition to the call to increase resources for TCP embodied in Conference Resolution 9/89, several factors support the case for a higher TCP Appropriation: 1) the increase in the number of Member Nations eligible for assistance, affecting the share of other regions; 2) the unprecedented level of demands for TCP-supported technical assistance; 3) the increasing complexity and multi-disciplinary nature of TCP projects; and 4) the high relevance of the TCP to address new problems and priorities faced by Members, such as capacity-building for trade negotiations or issues of food quality and safety.

467. Moreover, the level of demand for emergency assistance continues to grow (18.5% of 2002-03 total TCP allocation), competing with the resources available for non-emergency assistance. Consideration is being given to the possibility that if, as intended, the Special Fund for Emergency and Rehabilitation Activities (SFERA) grows significantly, it could take the pressure off TCP for emergency projects and would permit a larger proportion of TCP resources to be allocated to non-emergency interventions.

468. These various developments have resulted in an increase in the number of projects approved, from 430 projects in 1998-99 to 758 projects in 2002-03. Some 900-1000 requests for TCP assistance are received per biennium.


469. The net increase of 4% would augment the capacity of Chapter 4 to meet requests from countries including for emergencies.


470. The reduction in resources would result in the TCP being even less able to respond to requests for assistance. However, the reduction is less than the average rate for ZNG and thus would increase the percentage of the TCP share of the budget to 14%, in line with Conference Resolution 9/89.


Chapter 5: Support Services (all amounts in US$ 000)





Trust Fund

51 Information and Publications Support

18,064 17,944 16,741 17,944 810

52 Administration 48,402 46,983 44,165 47,999 0 Total 66,466 64,927 60,906 65,943 810 Programme Change from 2004-05 Programme of Work at Chapter level

(1,539) (5,560) (523)

Percent Change (2.3%) (8.4%) (0.8%)

Major Programme 5.1: Information and Publications Support (all amounts in US$ 000)





Trust Fund

511 Public Information and Publications Support

16,487 16,677 15,556 16,677 810

519 Programme Management 1,577 1,266 1,185 1,266 0 Total 18,064 17,944 16,741 17,944 810 Programme Change from 2004-05 Programme of Work at MP level

(121) (1,323) (121)

Percent Change (0.7%) (7.3%) (0.7%)


471. This major programme encompasses all activities related to communication and management of publishing activities. It ensures a continuous flow of communication to FAO’s Members as well as proactive communications with a broad range of audiences. It is central to supporting the SACOI164 on Communicating FAO’s messages. Highlights of planned work in multilingual communication, publishing policy and support and public information and outreach under ZRG conditions are given below.

472. The major programme will continue to support the development of FAO’s biennial communication strategy and plan, as well as targeted communication strategies supporting specific programmes and events. It will also cover the production of multilingual information products and services, essential for in-house clients in their efforts to raise awareness and understanding of their activities and build support among Members for both regular and field programme activities. The Information Division (GII) will continue high-quality information activities including: professional, broadcast-quality audio and video productions; printed materials including brochures, fact sheets, folders, flyers and posters; exhibitions and exhibition materials; management of a comprehensive digital photo library serving the whole Organization; multimedia presentations; support to the TeleFood campaign; and Web site design.

473. GII will pursue its integrated cross-media publishing management function which encompasses operational, normative and advisory activities, in order to manage the Organization's publishing work and ensure timely issuance of high-quality, high profile, multilingual publications and appropriate treatment of other categories of information products. Co-publication agreements with commercial and academic publishers and publication of FAO material in non-official languages

164 Strategy to Address Cross-organizational Issues


are also instrumental to the dissemination function, as is the administration of FAO’s intellectual property and copyright policies.

474. Work on public information and outreach will increase public awareness and understanding of the issues related to FAO’s mandate and build support and political will for achievement of the World Food Summit and Millennium Development Goals. Key audiences at the national regional and global levels will be targeted through comprehensive multilingual media services and public outreach campaigns. Essential tools in this broad effort are press releases in official languages; the dynamic FAO Newsroom Web site in official languages; interviews, media briefings and press conferences; and delivery of radio and television materials for broadcasters. Special attention will be given to enhancing regional outreach through strategic use of external services.


475. ZNG would reduce the extent and quality of services: diminish the volume of material produced for the FAO Newsroom Web site; reducing the number of press releases issued annually and imposing a maximum length.

476. With less staff, GII would not be able to maintain editorial and production quality of information material and publish multilingual information products in print and electronic format at the acceptable levels.

Major Programme 5.2: Administration (all amounts in US$ 000)


Work




Trust Fund

521 Financial Services 20,813 21,790 20,134 21,790 0 522 Information Systems and

Technology Services 2,036 1,883 1,873 1,883 0

523 Human Resources Services 18,848 18,539 17,457 19,555 0 529 Programme Management 6,704 4,771 4,700 4,771 0 Total 48,402 46,983 44,165 47,999 0 Programme Change from 2004-05 Programme of Work at MP level

(1,418) (4,237) (402)

Percent Change (2.9%) (8.8%) (0.8%)


477. Major Programme 5.2 includes the provisions for the financial, information systems and human resource services provided by the Administration and Finance Department (AF) and the Regional and Subregional Offices. It also includes the Office of Assistant Director-General, AF (AFD), and the share of the overall Management Support Service (MSS) cost relating to the provision of services to AF divisions. Following the request of the Finance Committee, resources have been provided to the Finance Division (AFF) reinstating funding of five general service posts which had been cut in the revised PWB 2004-05. Other areas of risk will be addressed through a Task Force on Administrative Processes to review and implement, where appropriate, suggestions to streamline and reengineer administrative processes, redirecting savings to areas of greatest need.

Programme 5.2.1: Financial Services

478. AFF manages a flow of assets well in excess of US$ 1 billion each year. It processes over 3 million entries in the accounts, many of which are quite complex, with an ever-increasing volume from FAO’s extra-budgetary activities. Under Programme 5.2.1, AFF will continue to maintain the


accounts of the Organization to the accepted standards (UN System Accounting Standards and Generally Accepted Accounting Principles) and provide accurate and timely financial information to all levels within the Organization and to the governing bodies. Despite the reinstatement of five general service posts mentioned above, AFF staffing level would still be less than the minimum recommended by independent consultants. This would have an impact on processing of daily payments, project account returns, staff receivables and other receipts, and payroll accounting.

Programme 5.2.2: Information Systems and Technology Services

479. The provision under Programme 5.2.2 covers only the direct managerial costs of the Information Systems and Technology Division (AFI), with the exception of the Director and a secretary who are shown under Programme Management. The remaining costs for information systems and technology are distributed to the various programmes making use of the ICT165 infrastructure and computerised applications.

480. Priorities for information systems and technology services are largely determined by the demands of all FAO programmes. The volume of requests is constantly rising and is driven by the greater use of information and communications technology in the business practices of FAO. For instance, AFI is responsible for the development and support of a wide range of administrative systems, including the Oracle Financials and the Oracle Human Resources systems which will replace the legacy mainframe Human Resources and Payroll systems in 2006-07. AFI also assists computer application initiatives such as WAICENT, FIVIMS, FIGIS and FORIS166, all of which make heavy use of Internet-based technology. Ensuring the required computer infrastructure for FAO is also a major activity of the division.

481. It is noted that the current level of funding is already below that deemed by external consultants to be satisfactory to support the current workload and that this exposes the Organization to insufficient service availability and additional information security risks.

Programme 5.2.3: Human Resources Services

482. Programme 5.2.3 includes the Human Resources Management Division (AFH) and the Medical Service (AFDM). AFH will continue to address the broad spectrum of human resources management issues, enhancing its advisory role and also providing support to the decentralized offices. In this context, a more integrated approach to Human Resources planning and development will continue to be adopted. The full implementation in the next biennium of a new Human Resources Management System (HRMS), based on Oracle applications, is a major undertaking that will continue to place significant demands on the division. Within the UN system, AFH will continue to participate in inter-agency consultations, particularly relating to the International Civil Service Commission (ICSC) and the UN Joint Staff Pension Fund (UNJSPF), in order to maintain a common approach on human resources management matters.

483. AFH will support corporate activities, such as: targeted recruitment (in particular, for under-represented countries) and development programmes for young professionals; integration of gender and diversity issues into human resources management; and an evolving programme of staff development. Work will be undertaken on the implementation of a competency framework supporting all aspects of human resources management, job design, recruitment and selection, performance management and staff development. Competencies for managerial positions and FAORs will be implemented during the biennium.

484. The Medical Service will fulfill its mandate relating to health of staff. Further to initiatives already carried out (workstation ergonomic assessment, physiotherapy and extended travel clinic), preventative programmes will be implemented based on data from its Occupational Health Information System.

165 Information and communication technology 166 World Agricultural Information Centre (WAICENT), Food Insecurity and Vulnerability Information and Mapping System (FIVIMS), Fisheries Global Information System (FIGIS) and the Forestry Information System (FORIS)


Programme 5.2.9: Programme Management

485. Programme 5.2.9 covers AFD, the offices of division directors and the portion of the distributed costs of the MSS corresponding to the services provided to the AF Department. The remaining costs of the MSS are distributed to the various management programmes of headquarters departments being serviced by the MSS. The apparent reduction in resources is due to the rebalancing of this distribution across the programme structure. It is recalled that the MSS provides a range of administrative support services, advice and management information to departments in the areas of finance, budget, procurement-requisitioning, personnel and travel, in accordance with the established rules and regulations of the Organization.


486. RG would accelerate work in three human resources priority areas: 1) the establishment of managerial competencies and a complementary development plan; 2) the implementation of the Action Plan on Recruitment from Under-represented Countries167; and 3) the development and improvement of a performance management system linked to the Organization's planning model.


487. The ZNG overall reduction for Major Programme 5.2, including indirect allocations for the Computer Pool Account and the MSS, could equate to a potential reduction of some 30 posts. Continued cuts over many biennia have reduced the ability of the department to provide other than core services.

488. ZNG would weaken the Organization’s internal financial controls and compromise the capacity to produce accurate, timely and complete accounts. Reductions would also affect the Local Audit Programme (LAP) in field offices with the frequency of audit being reduced.

489. The impact of a ZNG budget on AFI would be widely felt, i.e. on all information systems and technology activities. The division would be required to reduce significantly its information systems development services. The manned hours of the Computer Centre would be reduced from 90 hours each week to less than 50, with adverse impact across the Organization. Server hardware maintenance and software updating would be restricted. Reduced service levels would also be required for the central telephone switchboard, for meeting and conference services, for governance activities, and for the AFI Help Desk.

490. For AFH many of the elements of the recruitment action plan (organisation and participation in recruitment missions, university job fairs, increased use of the Internet, etc.) would not be possible under a ZNG scenario. Reductions in post management and staffing services would also be required leading to an increase in the time taken to deal with establishment proposals and a reduction in the frequency of selection committee meetings. It would not be possible to carry out the planned rationalisation of the Staff Compensation Plan, including the improved management of the process of disbursements. The Medical Service would be obliged to remove all preventative and counselling programmes.

491. The ZNG scenario would require a reduction of services provided by the MSS. In order to maintain critical line functions such as personnel servicing, travel operations and financial transaction processing intact, the only area which can be considered for reduction is that of the Help Desk. This would mean the elimination of critical support to units across the Organization as they encounter problems or seek advice when executing their budget holder or transaction initiator functions, elimination of training courses, reduction in system testing or initiation of system change requests and no support for year-end closure processes.

167 FC 107/16


Chapter 6: Common Services (all amounts in US$ 000)

Major Programme 2004-05 Programme of Work ZRG 2006-07 Programme of Work



Trust Fund

60 Common Services 52,486 46,398 42,880 46,398 0 Total 52,486 46,398 42,880 46,398 0 Programme Change from 2004-05 Programme of Work at Chapter level

(6,088) (9,606) (6,088)

Percent Change (11.6%) (18.3%) (11.6%)


492. Under the management of the Administrative Services Division (AFS), this chapter covers the cost of common services, including mail and pouch, document distribution, archives and records, procurement, and buildings maintenance. It also covers similar costs for common services in the Regional and Subregional Offices. While AFS will still manage the protection of people, property and premises at headquarters, and related coordination with government authorities, US$ 7.2 million in resources have been transferred to Chapter 9 Security Expenditure.

493. AFS operates in a climate of high service level demands, rising headquarters facility management costs, and has endured increases in utilities and air conditioning costs well above average inflation levels, generating severe resource pressures.

494. Procurement functions have expanded considerably, due to emergency-related work, and the current high level of activities is expected to continue. There is understaffing in the monitoring, vendor and registry support areas as a result of expanded activities, potentially exposing the Organization to inadequate controls. AFS will continue to assist decentralized offices in the implementation of procurement activities. It will also take a new role of institutional building and training, assisting concerned countries in strengthening their procurement capacity, in the context of important unilaterally-funded programmes and projects.

495. Documents, central records and communications user services will continue to focus on the enhancement of the Digital Records Management System, capable of operating across the FAO local and wide-area networks. These initiatives have resulted in some restructuring of the registries, with further changes planned for the next biennium. Work will also be done on the automation of the publications distribution process, through the adoption of new printing technology and different outsourcing of services.

496. Building maintenance includes the cost in the first instance of utilities and ongoing maintenance requirements including cleaning, renovation and refurbishment. It also includes one-off major maintenance for the buildings and for ancillary technical installations, although the budgetary provision for major maintenance works and upgrading of the infrastructure remains inadequate following successive budget reductions. An additional amount of US$ 1.7 million has been provided in the budget to address some of the maintenance needs. At the same time, efforts will continue to generate savings. There would still be significant gaps left, which could create difficulties. For infrastructure improvements, reliance is being placed on the support of the Italian Government, as well as governmental and corporate donors.


497. ZNG would entail serious maintenance shortfalls leading to interruptions of service (e.g. air conditioning). Some maintenance cycles, which could not be fully respected in the past, would have to be interrupted with the risk of shortening the life cycle of equipment and incurring longer term higher capital costs for replacements. In addition, AFS would have to further reduce the frequency of


cleaning activities, with social and health associated risks, implement a drastic reduction in office moves, eliminate the purchase of new furniture and seek maximum recovery of costs in all circumstances. This inability of the Organization to meet its obligations regarding ordinary maintenance could place an undue burden on the host country. It could also place the Organization in the position of not being able to comply with the basic health and safety standards established by law.


Chapter 7: Contingencies (all amounts in US$ 000)

Major Programme 2004-05 Programme of Work ZRG 2006-07 Programme of Work



Trust Fund

70 Contingencies 600 600 600 600 0 Total 600 600 600 600 0 Programme Change from 2004-05 Programme of Work at Chapter level

0 0 0


498. The provision for contingencies remains unchanged since the PWB 1980-81.


Chapter 8: Capital Budgeting (all amounts in US$ 000)





Trust Fund

81 Capital Expenditure 0 9,095 9,095 13,195 0 Total 0 9,095 9,095 13,195 0 Programme Change from 2004-05 Programme of Work at Chapter level

9,095 9,095 13,195

499. Conference Resolution 10/2003 established a Capital Expenditure Facility to integrate capital expenditure planning into FAO’s budgeting and financial framework. It designated Chapter 8 of the PWB for the purposes of defining and authorising capital expenditures for the biennial period covered by the Programme of Work.

500. The capital plans for 2006-07 totalling US$ 9,095,000 are drawn from those presented in the Medium Term Plan 2006-11, with further breakdown of proposals provided under the heading Administrative Information Systems Projects. The table below presents the capital expenditure proposals and a description of each item of planned expenditure follows it. The compulsion for budgetary realism has precluded proposals for other essential investments in institutional infrastructure under ZRG, as it would not be feasible to support them without additional assessed or voluntary contributions.

Capital Expenditure Proposals for 2006-07 (US$ 000) Programme Entity Description Item Cost Total

Programme 811 Telephony Services 150 PE 811P1 HQ and Regional Office PABX Systems 150 Programme 812 Shared Data Services 1,545 PE 812P1 Corporate Administrative Applications 950 PE 812P3 Server Software and Client Access Licenses for HQ

and ROs 595

Programme 813 IT Support to Meetings 1,000 PE 813P1 HQ Meeting Room Systems 1,000 Programme 814 Administrative Information Systems Projects 6,400 PE 814P1 Human Resources Management System Project

(HRMS) 5,800

PE 814P2 Field Accounting System (FAS) 500 PE 814P4 Electronic Document Management System 100 Total Planned Capital Expenditure in 2006-07 9,095

Programme 8.1.1: Telephony Services

501. The major piece of equipment under this heading is the private automatic branch exchange (PABX) which operates the telephone service within headquarters. It was installed in 1994, and will require replacement within 2008-09, when it is anticipated that a new-generation PABX could be selected using Voice-Over-Internet Protocol (VoIP) technology. US$ 150 000 will be invested during 2006-07, allowing various steps to be taken towards the transition to VoIP, so that experience can be gained with the technology prior to the major investment foreseen in the 2008-09 biennium. Some of these steps will be taken in Regional Offices whose PABXs are far smaller than headquarters and are, therefore, more suitable as test-beds.

502. The expectation from these interim steps is to achieve cost containment for voice telephone calls in an increasingly decentralized Organization in which communications costs otherwise would continue to grow rapidly.


Programme 8.1.2: Shared Data Services

503. Server hardware has an economic life in FAO of four years (one year longer than the industry norm). US$ 150 000 is planned to be invested in the next and every subsequent biennium to replace obsolete servers which support administrative systems. On average, this will represent half the server resources in this area.

504. A practice of regular, planned replacement of life-expired servers will provide a more reliable and better performing information systems infrastructure, underpinning the delivery of services to the technical divisions and offices of the Organization.

505. In addition to corporate administrative applications servers, entity 812P1 also deals with the corporate administrative applications software upgrades. The Atlas software package was introduced in May 1999 to provide travel accounting and information functions in the Organization. Although it has been maintained on a regular basis to incorporate improvements and additional functions for FAO, it has not kept pace with changing FAO business requirements. An investment of US$ 800 000 will be required for the replacement of the travel system and upgrading of its supporting infrastructure to provide for projected capacity and growth. The new application will address best practice business needs in travel processing and respond to External and Internal Audit recommendations that require major changes to the current system. It will take advantage of new technologies and support the streamlining of operations as well as the expansion of its use.

506. Programme Entity 812P3 deals with Server Software and Client Access Licenses. On many of its servers, FAO currently uses Microsoft Windows 2000 Server software, and for email, Microsoft Exchange 2000. Both will go out of mainline vendor support in 2006, which will expose the Organization in terms of functionality, security/privacy, and service continuity. To avert this, FAO will invest US$ 595 000 to adopt new versions on some or all servers now running Windows and Exchange in 2006, though it is expected that open-source solutions will be adopted for some types of workload currently performed on Windows. Every client computer accessing a server running Windows has a “Client Access License” to do so, and if the server software is upgraded, this must also be upgraded.

507. The budgetary provision will cover server and client access licenses for headquarters and regional office users, support staff training, user training, and the project work involved in migration to newer versions and/or to alternative approaches, including compatibility checking.

508. The expected benefits from an ongoing program of keeping within supported software versions are reduced exposure for the Organization in terms of functionality, security/privacy, and service continuity.

Programme 8.1.3: IT Support to Meetings

509. The communications systems in Headquarters meeting rooms cover audio-visual hardware and simultaneous interpretation (SIE) equipment. Following the initial installations which have been funded by sponsoring governments, there has been no provision for periodic update or replacement of equipment. The major investment of US$ 1 million will overhaul meeting room equipment and ensure the continuation of reliable audio-visual and SIE services.

Programme 8.1.4: Administrative Information Systems Projects

510. The additional functionality that will be provided by the Oracle HRMS under entity 814P1, such as in the areas of competency development, e-recruitment and performance management, as well as replacement of the legacy mainframe Human Resources and Payroll systems, has a central role in future human resource management. It is a major undertaking which is in mid-stream, with completion expected in the 2006-07 biennium. In view of the importance attached by the governing bodies and the Secretariat to completing this project, US$ 2.5 million has been added to the proposal in the SPWB to almost fully meet the funding requirements; the shortfall of US$ 1 million will continue to be sought through cost savings.


511. The aim of the Field Accounting System (FAS) replacement project under entity 814P2 is to implement a financial system that meets FAO Representations’ needs. The key to realising this lies in providing tools and timely information for financial management and decision-making. Both the technology and the business needs of the decentralized offices have significantly evolved over the last 5 years, since FAS was first deployed. The need for a system that provides enhanced functionality, robustness, security, better reporting and greater flexibility is supported by the observations of the External Auditors and internal reviews, including those conducted under the auspices of the Field Programme Committee. The new financial system will be based on industry standards and will take advantage of up-to-date technology. This initiative is in mid-stream with completion expected in the 2006-07 biennium, for which US$ 500,000 has been allocated.

512. Entity 814P4 will develop a system for maintaining paper records electronically, thereby significantly reducing the paper-flows within the Organization and enabling the use of, for example, electronic sign-off procedures on HR related actions. It would also create efficiencies through ease of archiving and retrieval of records. The Electronic Document Management System (EDMS) is a desirable complement to the HRMS, but it is not possible to cost it at this stage. An amount of US$ 100,000 has, therefore, been made available to undertake a study and prepare a business case for the initiative.


513. Under RG, the HRMS and FAS projects would receive additional funds to provide for some project contingency funds and undertake further development work, and resources would be allocated for development work under the EDMS project.


Chapter 9: Security Expenditure (all amounts in US$ 000)





Trust Fund

91 Headquarters Security 0 7,563 6,929 7,563 0 92 Field Security 0 12,435 2,501 12,435 0 Total 0 19,999 9,430 19,999 0 Programme Change from 2004-05 Programme of Work at Chapter level

19,999 9,430 19,999


514. The Security Expenditure Facility (SEF) provides comprehensive coverage of staff and non-staff costs directly related to headquarters and field security at FAO. It will improve financial management within a results-based context and give needed visibility to the efforts of Members and the Organization to ensure a safe and secure working environment. Under the SEF, Chapter 9 of the PWB is established to define and authorise security expenditures, including, inter alia , staff and non-staff security provisions and expenditures at headquarters and in the field. As outlined in the section Proposal for an FAO Security Expenditure Facility, the security budget for 2006-07 is estimated at US$ 19.4 million; US$ 0.6 million is this chapter’s share of central management support and information systems services.

515. The Chapter comprises two major programmes with a total of three programmes and five programme entities.

Major Programme 9.1: Headquarters Security

516. Programme 9.1.1: Headquarters Security Services and Infrastructure provides for the protection of people, property and premises at headquarters, and related coordination with government authorities. Under the direct management of the Security and Transport Branch of AFS168, it covers 1) security infrastructure such as entry turnstiles and the construction of external reception and logistics areas, whose cost to the Regular Programme is estimated at US$ 200 000 in 2006-07 on the assumption that the host government will provide a contribution169; and 2) security guards for the headquarters premises, at a biennial cost of US$ 7 million.

Major Programme 9.2: Field Security

517. Programme 9.2.1: FAO-managed Security Provisions for the Field Locations, led by OCD170, provides for the development and implementation of the FAO Field Security Policy as well as the implementation of field security measures in all FAO locations. Newly established within OCD, the Field Security Branch has a budget of US$ 800 000 for the coming biennium, including a P-5 Senior Officer, a P-3 Programme Officer, and two general service staff members. Its responsibilities include:

• liaising with the UNDSS171 and the IASMN172 regarding security policy matters and the UN unified security management system;

168 Administrative Services Division 169 CL 128/13, para. 109 170 Office for Coordination of Normative, Operational and Decentralized Activities 171 United Nations Department of Safety and Security


• coordinating the provision of security training for travellers to security phase countries; • integrating security-related information on personnel and equipment in FAO computerised

information systems; • monitoring the implementation of the FAO Field Security Policy; • coordinating the provision of security equipment to FAO Representations, Regional,

Subregional and Liaison Offices; and • coordinating the provision of residential security equipment and services to personnel in

the decentralized offices of the Organization.

518. The Programme also covers security equipment in decentralized offices and the training of staff, in line with recommendations developed by the UN unified security management system. These provisions, estimated at US$ 6.4 million in 2006-07 include: perimeter protection such as lighting and perimeter walls; anti-ram barriers/gates at vehicle entrances; metal detectors; bunkers and reinforced rooms; blast protective film for windows; emergency power supply; GPS173 systems; medical trauma kits; body armour; telecommunications equipment (including mobile satellite telephones and equipment for communication centres); general operating expenses for locally-cost-shared radio rooms and other telecommunications; and field vehicles with communications systems appropriate for heavy duty use in crisis or high-risk environments. In addition, a variety of residential security equipment and services will be furnished to FAO field personnel, estimated to cost US$ 700 000 during the biennium.

519. Programme 9.2.2: Joint-UN System Undertakings to Improve Security of Field and Field-bound Staff provides for FAO’s active participation in both centrally-managed programmes of the UN unified security management system and in country-level Security Management Teams. It encompasses FAO participation in IASMN as well as the Organization’s financial contribution to the UN unified security management system. The Regular Programme portion of the FAO cost-share of UNDSS is estimated at US$ 4.0 million in 2006-07, and the share of the Malicious Acts Insurance Policy is estimated at US$ 300 000.


520. At ZNG budget level, it is proposed that the Organization’s security expenditures be funded within the approved budget at the 2002-03 level (i.e. US$ 8.8 million). Therefore, US$ 10.6 million of estimated 2006-07 security expenses would remain unfunded including, under Major Programme 9.1, a portion of headquarters guard services and infrastructure improvements and, under Major Programme 9.2, security provisions for decentralized offices and a considerable portion of the Organization’s contribution to the UN unified security management system.

172 Inter-Agency Security Management Network 173 Global Positioning System


Chapter 10: Transfer to Tax Equalization Fund

521. The Tax Equalization Fund was established as of 1 January 1972.

522. In line with the practice followed since 1972-73, the 2006-07 budget is presented on a gross basis, by adding to the total effective working budget an appropriation for staff assessment.

523. This will have no effect on the contributions payable by Members not levying tax on FAO staff emoluments; their full share of the staff assessment appropriation is refunded, by deduction from the contributions payable by them.

524. Members which levy tax on FAO staff emoluments will have their shares of the appropriation for staff assessment reduced by the amount estimated to be required to meet claims from the FAO staff concerned for tax reimbursement.

525. The amount of US$ 83,043,000 provided for 2006-07 represents the difference between gross and net salary costs based, as far as professional staff and above are concerned, on the salary scales approved by the UN General Assembly at its Fifty-ninth Session.

526. The application of credits arising from the Staff Assessment Plan against Members' assessments will be presented after the Conference has decided on the scale of contributions to be applied for 2006-07.


ANNEX II: REGIONAL DIMENSIONS

Regional Resource Summary (all amounts in US$ 000)

Major Programme Global Inter-Regional

Africa Asia and Pacific

Europe Latin America / Caribbean

Near East Total


64,911 54,626 107,040 65,932 9,866 22,375 155,185 479,936


77,134 9,898 33,068 14,290 5,003 10,447 7,045 156,884

23 Fisheries 26,228 41,189 7,423 6,444 5,318 7,186 3,554 97,343 24 Forestry 17,741 2,459 15,675 18,855 5,612 15,241 4,391 79,974 25 Contributions to

Sustainable Development and Special Programme Thrusts

33,426 14,549 57,951 15,798 3,808 43,234 7,357 176,123

31 Policy Assistance 10,369 3,673 13,112 5,938 2,728 5,539 5,767 47,125 Total 229,809 126,394 234,268 127,257 32,335 104,021 183,300 1,037,384

Introduction

527. It is recalled that the Programme of Work is presented in a "unified" manner in the PWB document. Substantive programmes are in most cases jointly executed by headquarters departments and the corresponding outposted teams in Regional or Subregional Offices. Many activities involve, therefore, participation of both headquarters and decentralized offices staff.

528. As was done in the PWB 2004-05, this Annex provides an indication of those activities in the Programme of Work of particular interest to individual regions. It covers Chapter 2: Technical and Economic Programmes and Major Programme 3.1: Policy Assistance, irrespective of locations, i.e. whether inputs originate from headquarters or decentralized offices. For the sake of brevity and to avoid unnecessary duplication, the narratives are deliberately selective. At the beginning of each narrative, an overview of major issues of relevance to the region is provided.

529. The summary tables provide a breakdown, by major programmes, of the resources estimated to relate to the respective region, under both the Programme of Work and extra-budgetary resources. It should be noted that while the allocations shown under the “Decentralized Offices” columns reflect the amounts allocated to Regional and Subregional Offices, the amounts under the "Headquarters" column are statistically derived. As most of the budgetary provision for country offices is under Major Programme 3.4: FAO Representatives, it is not reflected in the following tables.


Africa

Resources for Africa (all amounts in US$ 000)

Regular Programme Trust

Major Programme Headquarters Decentralized Offices

Total Fund Activities

Total

21 Agricultural Production and Support Systems 11,310 6,175 17,485 89,555 107,040 22 Food and Agriculture Policy and Development 9,071 2,724 11,796 21,272 33,068 23 Fisheries 4,705 2,719 7,423 0 7,423 24 Forestry 5,019 1,815 6,834 8,841 15,675 25 Contributions to Sustainable Development and

Special Programme Thrusts 9,218 2,743 11,961 45,990 57,951

31 Policy Assistance 1,816 6,925 8,742 4,370 13,112 Total 41,138 23,101 64,240 170,028 234,268

General Overview 530. The over-arching issue in the region is the insufficient progress in combating hunger and malnutrition and achieving the World Food Summit target. Major weaknesses such as in terms of institutional arrangements, policy formulation and the available statistical information base need to be addressed vigorously. Major thematic priorities of interest to the region include: sustainable approaches to natural resource management (land and water, forests, etc.); diversification and provision of effective services to the rural sector; support to policy development; capacity-building; gender differentiation; mitigation of HIV/AIDS impacts; efficient data collection systems and network development across countries; and regional cooperation and integration. FAO will seek to give attention to these and other regional priorities in its support to the Comprehensive Africa Agriculture Development Programme (CAADP) which underpins the New Partnership for Africa’s Development (NEPAD). RAF174 will seek to develop a regional strategic framework, as was done by RAP175 for the Asia and Pacific region.

Major Programme 2.1: Agricultural Production and Support Systems 531. Planned activities include:

• Continued support to CAADP/NEPAD in irrigation development, land and water management, soil fertility improvement, crops-livestock integration, conservation agriculture and establishment of field farmers schools (FFS);

• Advice on crop management and improvement programmes, in particular for cassava, and dissemination of New Rice for Africa (NERICA);

• Support to countries on plant genetic resources and seed development; • Assistance in implementation of the Rotterdam Convention and the African Stockpile

Project for pesticide disposal; • Establishment of biotechnology networks coupled with efforts to strengthen national plant

breeding capabilities; • Implementation of EMPRES176, particularly to combat and prevent desert locust upsurges; • Support to animal disease control programmes, pursuing progress on the Global

Rinderpest Eradication Programme (GREP), foot-and-mouth disease (FMD) and contagious bovine pleuropneumonia (CBPP) control; co-implementation of the Programme Against African Trypanosomiasis (PAAT) in support, inter alia, of the Pan African Tsetse and Trypanosomiasis Eradication Campaign (PATTEC);

• Advice to countries on pro-poor-livestock policy and institutions development;

174 Regional Office for Africa 175 Regional Office for Asia and the Pacific 176 Emergency Prevention System for Transboundary Animal and Plant Pests and Diseases


• Support to regional programmes on sustainable dry-land pastoral systems management; • Strengthening analytical capacities and quality assurance systems in applying Codex

standards and good agricultural practices to reduce food safety hazards; • Improved land and water management, including transboundary water resources, in both

irrigated and rainfed agriculture; • Enhanced delivery systems for rural finance, agricultural input supply, market information

and agro-processing and agro-enterprise development.

Major Programme 2.2: Food and Agriculture Policy and Development 532. Main activities to benefit the region are:

• Studies on food safety risks and eventual diseases transmitted through bushmeat consumption;

• Support to the regional plan of action to improve food safety in Africa adopted by the FAO/WHO177 Regional Food Safety Conference for Africa;

• Strengthening of systems for accurate and timely information on the incidence, nature and causes of food insecurity and vulnerability, as part of FIVIMS178;

• Capacity-building and innovative methods for data collection, processing and dissemination, including the Multi-Agency Programme for Capacity-Building in Food and Agriculture Statistics in Africa;

• Support to countries in the conduct of agricultural censuses, using the new approach of the World Programme for the Agricultural Census 2010;

• Capacity-building for WTO179 negotiations and implementation of agreement reached; • Assistance towards creating a common market in Africa for agricultural commodities; • Manuals for producers and exporters on how to export certified products and studies of

European markets for organic/fair-trade products from West Africa.

Major Programme 2.3: Fisheries 533. The application of the Code of Conduct for Responsible Fisheries (CCRF) will include assessments of the environmental impact of fisheries and aquaculture operations, while promoting responsible fisheries, coupled with support to statistical data services to generate up-to-date information for monitoring of exploited fish stocks.

534. Countries in the region will also require substantial assistance in planning fisheries and aquaculture development for the reduction of post-harvest losses through improved techniques and in improving livelihoods in artisanal fisheries communities, in close cooperation with the donor-supported Sustainable Fisheries Livelihoods programme, which operates in 25 West African countries.

535. The Fishery Committee for the Eastern Central Atlantic (CECAF), the Committee for Inland Fisheries of Africa (CIFA), the South West Indian Ocean Fisheries Commission (SWIOFC) and their subsidiary bodies and working groups will continue to be supported, in collaboration with other non-FAO regional fisheries bodies (RFBs) and arrangements. Fisheries components will to the extent possible be integrated in development programmes under NEPAD.

Major Programme 2.4: Forestry 536. FAO will seek to enhance the role of forests in combating food insecurity and in poverty eradication. It will provide policy assistance, technical advice and awareness activities aimed at arresting deforestation and degradation of natural resources. Countries will also require assistance for capacity-building, improved governance through decentralization and devolution processes, promotion of multi-stakeholders partnerships, and capitalising on traditional knowledge. Regional

177 World Health Organization 178 Food Insecurity and Vulnerability Information and Mapping System 179 World Trade Organization


cooperation and partnership with regional and subregional integration, networks and initiatives will be given priority.

Major Programme 2.5: Contributions to Sustainable Development and Special Programme Thrusts 537. Activities of importance to the region will include:

• Strengthening of national data collection and analysis systems to reflect gender differentiated realities of agricultural production and support gender sensitive planning;

• Assistance in bioenergy development and tools to monitor land cover change; • Support to restructuring of National Agricultural Research Systems for improved linkages

among national research, extension and education systems; • Advice on national biotechnology and biosafety policy frameworks; • Support to national and regional implementation of multilateral environmental agreements

and to participation of countries in scientific initiatives related to global environmental changes;

• Support to governments to plan and respond to the impact of HIV/AIDS and other diseases on food and nutrition security;

• Testing of appropriate policy materials on access to land and methodologies to provide improved land tenure security.

Major Programme 3.1: Policy Assistance 538. The establishment of a regional field programme development strategy, including a viable project pipeline, will be a major focus in the context of NEPAD. Priority areas for policy assistance will include: financing agriculture and trade and competitiveness in the context of regional integration, including required information flows for competitiveness in production and trade.

539. The policy groups in RAF and SAFR180 will follow-up on studies undertaken in the 2004-05 biennium on the underlying causes of famines and related needed public policy measures, and examine how to reposition agriculture and rural development at the centre of economic recovery after conflicts.

Asia and Pacific

Resources for Asia and Pacific (all amounts in US$ 000)




Total

21 Agricultural Production and Support Systems 9,190 6,744 15,934 49,998 65,932 22 Food and Agriculture Policy and Development 7,650 2,148 9,798 4,492 14,290 23 Fisheries 4,261 1,687 5,947 497 6,444 24 Forestry 4,013 1,901 5,914 12,941 18,855 25 Contributions to Sustainable Development and


31 Policy Assistance 1,350 3,640 4,990 948 5,938 Total 30,913 17,916 48,829 78,428 127,257

General Overview 540. A regional strategic framework (RSF): "Towards a Food-secure Asia and Pacific", was prepared by RAP and identified six major thematic priorities for the region over the longer term, i.e.: 1) agriculture restructuring under changing market and trade conditions; 2) decentralized governance in support of sustainable development; 3) reducing vulnerability to disasters; 4) promoting effective

180 Subregional Office for Southern and East Africa


and equitable management, conservation and sustainable use of natural resources; 5) strengthening biosecurity for food security and agricultural trade; and 6) alleviating poverty in rice-based livelihood systems. This RSF was presented to partner institutions and endorsed by the 27th Regional Conference for Asia and the Pacific held in May 2004 in Beijing. While not an exhaustive blueprint for action, the RSF will, nevertheless, provide a useful tool to formulate activities of interest to the region in the medium- and short-terms. Key areas of intervention for RAP, with support from headquarters, will include: policy advice, technical assistance and capacity-building, as well as promoting regional networking and partnership with stakeholders, in particular working closely with regional economic bodies such as ASEAN, SAARC and PIF181.


• Capacity-building and support on modernising irrigation systems and strategic planning for rural water resources management;

• Promotion of appropriate land use planning, efficient fertiliser use and ‘integrated nutrient management’ technologies;

• Rehabilitation of land and water resources affected by emergencies, especially in relation to floods and droughts;

• Development of high-value horticultural and industrial cropping systems and diversification of rice production;

• Support to animal genetic resources management and conservation, and strengthening national plant and animal genetic resource characterization and improvement programmes through biotechnology;

• Support to countries in the fight against transboundary animal diseases, with continued emphasis on avian influenza control and eradication;

• Implementation of standards, as developed by Codex, the International Plant Protection Convention (IPPC) and the World Animal Health Organization (OIE) and, where appropriate, regional standards, in partnership with the Asia and Pacific Plant Protection Commission (APPPC) and the Regional Animal Production and Health Commission for Asia and the Pacific (APHCA);

• Strengthening of national phytosanitary systems and support to the implementation of IPM182 programmes, with emphasis on farmers field schools;

• Training and capacity-building at regional and national levels to prevent and control outbreaks of transboundary plant insect pests (through area-wide IPM approaches and adherence to IPPC standards);

• Development of decision-support tools to facilitate formulation and implementation of regional policies for safe livestock production and promoting market opportunities for farmers;

• Pro-poor livestock policy interventions, particularly in South Asia; • Support to regional programmes on sustainable dry-land pastoral systems management; • Promotion of post-harvest management and agro-processing technologies as applied to

commercial crops, cereals, horticultural and root crops as well as animal products; • Advice on agricultural intensification and diversification strategies, along with the provision

of efficient agricultural support services, including promotion of viable micro and rural finance systems;

• Development of improved food distribution and related infrastructure.

Major Programme 2.2: Food and Agriculture Policy and Development 542. The following activities may be highlighted:

181 Association of Southeast-Asian Nations (ASEAN); South Asian Association for Regional Cooperation (SAARC); Pacific Islands Forum (PIF) 182 Integrated pest management


• Support to FIVIMS at the regional level and in selected countries aimed at strengthening national food security strategies;

• Training on, and policy and technical advice to nutrition plans, policies and programmes that address specific undernutrition and malnutrition problems;

• Support to regional food safety programmes, networks and centres of excellence as recommended by the FAO/WHO Regional Food Safety Conference for Asia and the Pacific (May 2004);

• Food consumption studies to promote healthy diets and food composition databases for multipurpose uses and promotion of nutrition education for consumption of safe and nutritious foods in balanced quantities;

• Upgrading of regional and national early warning, preparedness and mitigation systems against food emergencies and natural disasters;

• Capacity-building and advice on improved regional and national statistical and information systems in the food and agriculture sector;

• Support to countries in the conduct of agricultural censuses using the new approach of the World Programme for the Agricultural Census 2010;

• Study on status of agriculture and food security in the region, including development trends, trade policy analysis and support to trade negotiations;

• Assistance in the implementation of the voluntary guidelines to support the progressive realisation of the right to adequate food, including dissemination of advocacy and training material.

Major Programme 2.3: Fisheries 543. FAO will need to address continuing weaknesses in fisheries and aquaculture systems and foster inter-country cooperation through:

• Advisory services to strengthen national fishery statistical systems; regional information exchange and harmonisation of fishery inquiries;

• New approaches on status and trends reporting; • Promotion of both rural and commercial aquaculture, with due emphasis on farmer

associations, certification and promotion of best management practices; technical assistance to small-scale aquaculture and aquatic resource management through partnership programmes;

• Technical advice and capacity-building to support legal frameworks and policies to promote community-based management and co-management of fisheries resources and to facilitate institutional development within small-scale fishing communities;

• Further assistance in the rehabilitation of Tsunami-impacted countries and strengthening of disaster preparedness capabilities in the region;

• Advice to regional associations on provision of credit for small- and medium-scale fisheries enterprises;

• The Asia-Pacific Fishery Commission (APFIC) as a regional consultative forum to discuss emerging regional issues and solutions; support to other FAO regional fishery bodies and backstopping of non-FAO bodies; and

• Of particular relevance to the South Pacific subregion, assistance to ensure effective seafood quality assurance systems and inspection to meet the requirements of major international trading partners, as well as for the sustainable development of small-scale fisheries.

Major Programme 2.4: Forestry 544. Taking account of rapid economic development and transformation with respect to markets and trade, forestry activities of interest to the region will include:

• Understanding of forest products trade issues, including forest certification and efforts to combat illegal logging and associated trade of forest products;

• Support to decentralization and devolution of the forestry sector in a sustainable development and effective natural resources management context;


• Reducing vulnerability to disasters, coupled with sound forest rehabilitation and watershed management and understanding of effective flood mitigation and relationship between forests and water;

• Strengthening biosecurity and combating threats from invasive species to forests and forest products species;

• Support to restructuring and re-orientation of forestry institutions to adapt to rapidly changing socio-economic environments.

Major Programme 2.5: Contributions to Sustainable Development and Special Programme Thrusts 545. The following activities may be highlighted:

• Assistance in bioenergy development and land cover change application; • Support to strategy formulation for information and communication technologies (ICTs)

and application of ICT and distance education modalities; • Technical advice to improve national agricultural extension systems including participatory

approaches and more effective delivery of services for small and marginalised farmers and other stakeholders, especially in decentralized contexts;

• Support to governments to respond to the impact of HIV/AIDS and other diseases of poverty on food and nutrition security;

• Studies, publications, national and regional meetings and networks on successful programmes for rural education, rural youth, capacity-building of rural women, minority groups including disabled peoples;

• Methodologies for national arrangements to provide improved land tenure security.

Major Programme 3.1: Policy Assistance 546. Policy assistance to countries in the region will focus inter alia on: alternative restructuring scenarios in light of institutional constraints and their resolution; capacity enhancement on strategies for agricultural development; capacity-building in multilateral agricultural trade negotiations; and technical workshops on emerging policy issues, including learning from and exchange of country experiences.

Europe

Resources for Europe (all amounts in US$ 000)




Total

21 Agricultural Production and Support Systems 1,789 1,648 3,437 6,429 9,866 22 Food and Agriculture Policy and Development 3,434 766 4,200 803 5,003 23 Fisheries 1,744 0 1,744 3,574 5,318 24 Forestry 2,999 891 3,889 1,723 5,612 25 Contributions to Sustainable Development and

Special Programme Thrusts 1,548 1,464 3,013 795 3,808

31 Policy Assistance 588 2,140 2,728 0 2,728 Total 12,103 6,908 19,011 13,324 32,335

General Overview 547. Events in the previous decade have had portentous social and economic consequences and resulted in an unprecedented increase in poverty in the region. In the ten countries that became part of the European Union (EU) in 2004, the preparation for membership had been a catalytic factor for political and economic reform and a similar development is taking place in the countries which are candidates for EU accession. Other countries of the region experienced a slower and more complicated transition process to a market economy. The region is also ecologically much diversified with a number of countries experiencing prolonged droughts and frequent floods. Key areas for


priority attention have been identified and endorsed by the Regional Conference for Europe, such as revitalising the rural sector and supporting rural livelihoods in the less advanced countries, as well as in those countries undergoing reforms in order to meet requirements for EU accession and neighbourhood programmes. The requirements of the Balkan, Caucasian, CIS183 countries and Turkey will receive due attention. Regional approaches to address cross-boundary issues will be promoted, while new emerging issues such as organic farming, biotechnology and biosafety will influence work programmes.


• Promotion of high-value crop production systems for specific agro-ecological environments, and support to non-farm income generating activities;

• Mitigation of droughts and floods with integrated land and water resources management, promotion of appropriate regional river basin management plans and policies, and modernisation of irrigation systems at national level; particularly in relation to the EU Water Framework Directive and the CAP184;

• Capacity-building in soil fertility improvement, fertilizer use, and mitigation of land degradation through training and workshops;

• Support to national and regional capacity-building for surveillance, diagnostics and control of transboundary animal diseases;

• Support to national IPM programmes, in particular in connection with the regional project on IPM strategies for the control of the western corn rootworm;

• Capacity-building of national phytosanitary and plant quarantine systems in the context of the IPPC;

• Support to the eastern and southeastern European countries in the management of transboundary animal diseases, particularly of foot-and-mouth disease as agreed through the EUFMD185;

• Strengthening analytical capacities and quality assurance systems in applying Codex standards and good agricultural practices to reduce food safety hazards in the production of high value products e.g. fruits, vegetables and meat;

• Support to civil society and the private sector to address gaps in farmer support services linking farmers to markets, and provision of rural finance, market information and other services to rural entrepreneurs;

• Modernisation of post-harvest handling, processing and marketing of agricultural products.

Major Programme 2.2: Food and Agriculture Policy and Development 549. Activities cover:

• In the nutrition area, attention will be given to the assessment of food composition, including the content of traditional foods for achieving food quality and nutritional balance and reducing the risk of diet-related diseases (obesity, overweight and malnutrition) as well as the promotion of nutrition information and improvement of nutrition education;

• Regarding food security analysis, several CIS countries will benefit from training in the assessment of food and nutrition security issues and in the development of strategies;

• In the area of food safety and quality, assistance requirements will be met for the harmonisation of food safety and quality standards and regulations with Codex Alimentarius as well as understanding and complying with WTO sanitary and phytosanitary measures (SPS) and technical barriers to trade (TBT) agreements;

183 Commonwealth of Independent States 184 Common Agricultural Policy (EU) 185 European Commission for the Control of Foot-and-Mouth Disease


• Concerning food and agricultural information and statistics, the main accent will be on: capacity-building for agricultural information management, especially in the context of the subregional Agro Web network; and

• Modernising national agricultural statistics systems, including new requirements that have arisen in the transition from a planned to a market economy and/or the accession to the European Union.

Major Programme 2.3: Fisheries 550. The region will benefit in the first instance from several important field projects: e.g. AdriaMed186, COPEMED187 and MedSudMed188. Beyond this, FAO will support the modernisation of aquaculture and fisheries (in particular in eastern Europe) and improvements in ecosystem approach to fisheries management.

551. Assistance to CEEC189 will be provided to promote trade, improve market access and upgrade inspection facilities to EU required levels. Attention will be given to bring into effect the Agreement of the General Fisheries Commission for the Mediterranean (GFCM). The work undertaken by EIFAC190 to enhance aquaculture and inland fisheries – through interactive and flexible arrangements among institutions in the region – will continue. Ad hoc consultations between FAO and the European Commission on fishery policies and management and other issues are also expected to continue, as well as support to fisheries activities of the OECD191 and the International Council for the Exploration of the Sea (ICES).

Major Programme 2.4: Forestry 552. In collaboration with UN/ECE192, FAO will continue to aim at strengthening management and marketing skills of private forest owners, and private forest sector institutions (associations). It will foster capacity-building to deal with protection of forest resources and conservation issues, forest land consolidation and land tenure issues, income diversification in rural areas. It will support investment in the eastern European forest sector and access to capital, promotion of traditional and environmentally-friendly use of wood (housing and energy generation) and the integration of CEEC and CIS into the regional forest sector policy dialogue.

Major Programme 2.5: Contributions to Sustainable Development and Special Programme Thrusts 553. Countries in transition will be assisted in strengthening their institutional research systems to improve access to information; integrate in research agendas needs of multiple stakeholders of the rural sector; and adopt and develop appropriate technologies and biotechnology application based on participatory and precautionary approaches. Key planned activities will include:

• Support to agricultural research, communication and information systems, especially in transition countries;

• Paying attention to EU accession education messages in CEEC; • Capacity-building in development and implementation of harmonised biosafety regulations

in the region, including guidelines, training and consultations; • Needs assessments in agricultural biotechnology and biosafety, as requested by countries;

186 Scientific Cooperation to Support Responsible Fisheries in the Adriatic Sea 187 Cooperation Networks to Facilitate Coordination to Support Fisheries Management in the Western and Central Mediterranean 188 Assessment and monitoring of the fishery resources and ecosystems in the strait of Sicily 189 Central and Eastern European countries 190 European Inland Fisheries Advisory Commission 191 Organisation for Economic Co-operation and Development 192 Economic Commission for Europe


• Continued facilitation of exchanges and networks regarding multi-disciplinary agricultural research, education and research policy, integrating needs of multiple stakeholders in the region;

• Gender mainstreaming at all levels through normative as well as field development activities;

• Assistance to improved access to land through leasing arrangements and land markets, territorial organizations and financing of decentralization of rural services through land taxation;

• Technologies associated with the development and management of modern land information systems;

• Assistance in restructuring and/or strengthening of governmental and civil society rural institutions with focus on producer organizations and cooperatives.

Major Programme 3.1: Policy Assistance 554. In the area of EU accession, FAO will aid countries through sector studies and capacity-building in the steps required for complying with the acquis communautaire in the field of agriculture and rural development. Some of the important areas for assistance in this regard are food safety measures, rural development policies and advice in setting up institutions for pre-accession assistance.

555. As regards, agricultural trade opportunities for raising rural incomes, FAO will offer assistance in compliance with, and the certification process in food quality and safety standards for access to the EU market. Support will also be provided on the harmonisation of food safety and quality standards and regulations with Codex Alimentarius for compliance with WTO SPS and TBT requirements. FAO will also assists countries in building niche markets, for example, through building capacity and certification in organic agriculture. Advice may also be given on establishing vertical linkages for high quality agricultural commodities, setting up marketing associations for this purpose, as well as on the introduction of high value crops.

Latin America / Caribbean

Resources for Latin America / Caribbean (all amounts in US$ 000)




Total

21 Agricultural Production and Support Systems 5,580 3,710 9,290 13,085 22,375 22 Food and Agriculture Policy and Development 5,115 2,537 7,652 2,795 10,447 23 Fisheries 4,092 1,524 5,616 1,570 7,186 24 Forestry 4,450 1,950 6,400 8,841 15,241 25 Contributions to Sustainable Development and



General Overview 556. Based on the guidance of the Regional Conference and internal analysis carried out in the Regional Office, the main thematic priorities include:

• Food security, particularly in terms of access to assets; • Agricultural trade, especially the impact of trade negotiations and eventual agreements on

family farm and non agricultural activities in rural areas; • Management and conservation of natural resources, including integrated multidimensional

natural resource management; • Capacity-building on rural development, including at the subnational and municipal levels;


• The new roles of governments in development; • Addressing food safety issues; • Forging alliances between public and private sectors.

557. These thematic priorities are useful in guiding the formulation of specific activities, including field projects and in support of seminars held with governmental authorities about individual country requirements in the food and agriculture sector.


• Transfer of technologies for integrated management of land, water and plant nutrients and programmes to improve irrigation water efficiency and water productivity in rainfed agriculture;

• Capacity-building in assessing and mitigating land and water quality degradation; • Strengthening of national phytosanitary systems in line with the International Plant

Protection Convention (IPPC); • Development of national pesticide registration and management regulations, and

management of obsolete pesticide stocks; • Capacity-building in plant breeding and biotechnology; • Support to, and coordination of two hemispheric disease eradication programmes: CSF193

and FMD194; • Support to pro-poor livestock policy initiatives, with emphasis on the Andean subregion; • Strengthening analytical capacities and quality assurance systems in applying Codex

standards and good agricultural practices to reduce food safety hazards; • Promotion of food quality and safety programmes for small-scale agro-industries and

development of smallholder based, export-oriented processing industries.

Major Programme 2.2: Food and Agriculture Policy and Development 559. The region will receive assistance for:

• Capacity-building for improved national food control systems, including quality assurance for food analysis laboratories;

• Harmonisation of national food standards and regulations and follow-up to the Regional Conference on Food Safety for Latin America and the Caribbean;

• Promotion of nutrition education in schools; • Implementation of the voluntary guidelines to support the progressive realisation of the

right to adequate food in the context of national food security; • Capacity-building for data analysis, use and dissemination; • Effective participation in international trade negotiations and implementation of

multilateral trade agreements, and understanding of the impact of agricultural and rural development policies;

• Agricultural information management, in collaboration with regional agencies such as IICA195.

Major Programme 2.3: Fisheries 560. As regards industrial fisheries and aquaculture, priority activities will address:

• Capacity-building of fisheries institutions to avoid over-exploitation within respective economic exclusive zones (EEZ) through better information collection, fish stock assessment, improved fisheries management, and related legislation enforcement and control, as well as a better distribution of benefits; and

193 Classical swine fever 194 Foot-and-mouth disease 195 Inter-American Institute for Cooperation on Agriculture


• Cooperation with, and support to governments in the implementation of International Plans of Action endorsed by COFI196.

561. As regards small-scale fisheries and aquaculture, FAO assistance will focus on: • Management of resources in large rivers and coastal areas to avoid over-exploitation and

increase fishers’ income; and • Ensuring better access of fisheries communities to markets, reduction of post-harvest

losses, increased value-added fish products through better handling, conditioning and small-scale processing at landing places.

562. FAO will continue to provide support to, and promote the strengthening of COPESCAL197 and WECAFC198 and their subsidiaries bodies and to actively cooperate with the non-FAO RFBs within the region (e.g. OLDEPESCA, OSPESCA, CPPS, CFRM199).

Major Programme 2.4: Forestry 563. Main activities will address the following regional priorities:

• National forest programmes (administration, institutions and policy aspects); • Integrated watershed management (water resources, land and forest cover, and social

aspects and environmental services of the forests); • Community forestry development; • Forest resources assessments and outlook studies for planning and decision-taking; • Conservation of biodiversity through preservation of national parks, biological reserves,

national forests, biological corridors, and other areas of conservation; • Management of wildland fires through prevention, control and combat to forest fires.

Major Programme 2.5: Contributions to Sustainable Development and Special Programme Thrusts 564. The main areas of attention for this region include:

• Continued mainstreaming of gender issues and concerns into sustainable rural development and food security projects, programmes and policies;

• Ensuring that government decision-making, planning, and policies reflect the implications of population dynamics on rural development and household food security;

• Critical examination of alternative extension advisory service modalities; • Restructuring of governmental and community-based rural institutions in order to enhance

the livelihoods of the poor.

Major Programme 3.1: Policy Assistance 565. Policy assistance will focus inter alia on: assessment of free trade competitiveness on agriculture; macro and sector policy reform; financing agriculture development, including promoting policies for public-private financing. Whenever applicable, FAO will emphasise agriculture and rural development within a regional-territorial-local approach. Capacity-building in policy development and preparation of plans and strategies will continue, mainly through donor funding.

566. At the subregional level, policy assistance will continue to be provided to regional economic organizations such as CARICOM200, in follow-up to the Regional Special Programme for Food Security, as well as to the Comunidad Andina (CAN), the Consejo Agropecuario Centroamericano

196 Committee on Fisheries 197 Commission for Inland Fisheries of Latin America 198 Western Central Atlantic Fishery Commission 199 Latin American Organization for Fisheries Development (OLDEPESCA); Organización del Sector Pesquero y Acuícola del Istmo Centroamericano (OSPESCA); Organization for the Conservation, Protection and Optimum Utilization of Tunas and Tuna-like Species in the Eastern Pacific (CPPS); Mecanismo pesquero regional del Caribe (CFRM) 200 Caribbean Community Secretariat


(CAC) and MERCOSUR201 in the areas of trade, competitiveness and subregional integration-related matters.

Near East

Resources for Near East (all amounts in US$ 000)




Total

21 Agricultural Production and Support Systems 4,562 4,845 9,407 145,778 155,185 22 Food and Agriculture Policy and Development 4,023 1,324 5,347 1,698 7,045 23 Fisheries 2,351 530 2,881 673 3,554 24 Forestry 3,805 586 4,391 0 4,391 25 Contributions to Sustainable Development and



General Overview 567. The Near East region exhibits a wide range in resources endowment, incomes and levels of development. Many countries are still adopting economic policy reform and trade liberalisation measures to enhance competitiveness and improve the allocation of limited resources. Several countries are also witnessing food deficits, coupled with increased food imports; while some countries are affected by malnutrition and in some cases pockets of hunger and intermittent localised famines.

568. Against this backdrop, the FAO Regional Conference and the technical commissions have formulated recommendations for priority action by the concerned governments and FAO.

569. These priorities include: policy advice on agriculture, rural development and food security; water resources management as the overriding factor for agricultural production and food security; redressing the low productivity of current farming systems; building national technical and institutional capacities; reduction of post-harvest losses; promotion of active afforestation and land conservation programmes; ensuring sustainability of fisheries resources and better fisheries management; promotion of private sector investments and agricultural production entrepreneurship; effective interactions among countries for joint cooperation, exchange of experience, funding of projects at country and regional levels with the involvement of the development funds and financial institutions based in the region.


• Development of innovative supply-and-demand water management strategies, including options offered by trade in agricultural products between water-deficit and water-rich areas and the safe use of non-conventional water resources in irrigation, such as treated wastewater and brackish and saline waters;

• Land management programmes for drought mitigation and rehabilitation of degraded lands;

• Strengthening of national phytosanitary systems in line with the International Plant Protection Convention;

• Support to national pesticide registration and management, including pesticide disposal;

201 Southern Common Market


• Preventive control of transboundary plant pests including desert locusts through EMPRES;

• Coordination of regional programmes for transboundary animal disease control in the context of the Progressive Control of Transboundary Animal Diseases;

• Identification of regional priority actions for the improved management and conservation of animal genetic resources;

• Development of agro-industries, micro agro-enterprises and marketing institutions; • Development of quality assurance systems in food production and processing and

promotion of viable micro-finance systems.

Major Programme 2.2: Food and Agriculture Policy and Development 571. The region will require:

• Appropriate mechanisms to facilitate communication and exchange of experience in food-borne disease surveillance among countries, as well as information about food-borne hazards;

• Regular monitoring of food security and undernourishment, covering conditions at household, national and regional levels, including through the establishment and improvement of FIVIMS at national level;

• Assistance with the implementation of the voluntary guidelines to support the progressive realisation of the right to adequate food in the context of national food security;

• Through a regional report on the State of Food and Agriculture, the identification of critical areas for food security for better targeting and reducing vulnerability;

• Capacity-building for WTO negotiations and implementation of agreement reached; • Wide access to tools and methodologies to meet specific regional and national information

needs, in the context of Bridging the Rural Digital Divide, as recommended at the last Near East Regional Conference (2004).

Major Programme 2.3: Fisheries 572. FAO’s assistance will focus more particularly on:

• Improvement of collection, quality and reliability of fisheries statistics; • Promotion of regional and subregional cooperation, including assessment and management

of shared stocks and intra-regional trade; • Strengthening of regional and subregional fisheries commissions, in particular RECOFI202

and establishment of new regional fishery bodies as appropriate; • Upgraded safety and quality systems to meet international requirements and improve

marketing information systems; • Active implementation of the Code of Conduct for Responsible Fisheries and related

International Plans of Action, including capacity-building at national level.

Major Programme 2.4: Forestry 573. The Near East is a low forest cover region, and priority activities will address forest and water improved practices for integrated management of woodlands, steppes and rangelands. Other main areas of work include: tree and shrub restoration in degraded lands and strengthening national institutional capacities.

Major Programme 2.5: Contributions to Sustainable Development and Special Programme Thrusts 574. Key planned activities will be:

• Support to the integration of rural women into rural development projects and programmes, on-going land reform programmes, and conservation of natural resources;

202 Regional Commission for Fisheries


• Promotion of research and application of suitable technologies for perishable food products, biotechnology application and awareness of genetically modified organisms biosafety issues;

• Facilitation of effective research, extension, education linkages and interactions at national and regional level;

• Assistance in restructuring and/or strengthening of governmental and community-based rural institutions in order to enhance the livelihoods of the poor.

Major Programme 3.1: Policy Assistance 575. Policy assistance to Members, including the countries in central Asia, will continue to focus primarily on issues relating to sustainable use of water and natural resources and trade. In countries emerging from natural and man-made disasters, support will be directed to the establishment of appropriate institutional and policy frameworks for rehabilitation of the agriculture and rural sector. Countries will also be supported in updating their strategies and policy frameworks at national and subregional levels, and in promoting the exchange of information, experience and lessons among themselves, particularly through the newly established agricultural policy network in the region (NENARNAP203).

203 Near East and North Africa Regional Network for Agricultural Policies


ANNEX III: DETAILED PROGRAMME BUDGET TABLES

Programme of Work and Appropriation by Programme Entity at 2004-05 Costs (all amounts in US$ 000)


Work

ZRG Programme

Change


Work

RG Programme

Change


Work

11110 Conference 1,325 (1,325) 0 0 0 11120 Council 2,031 (2,031) 0 0 0 11130 Finance Committee 833 (833) 0 0 0 11140 Programme Committee 669 (669) 0 0 0 11150 Committee on Constitutional and Legal

Matters 110 (110) 0 0 0

11160 Other Council Committees 133 (133) 0 0 0 11170 Regional Conferences 1,188 (1,188) 0 0 0 11180 Meetings of Permanent Representatives 525 (525) 0 0 0 11190 McDougall Memorial Lecture and

Commemorative Awards 90 (90) 0 0 0

111P1 Organization of the Conference and Council sessions and Interdepartmental Coordination of Governing Bodies sessions

0 7,257 7,257 0 7,257

111P2 Official Correspondence 0 1,607 1,607 0 1,607 111P3 Liaison with Intergovernmental

Organizations 0 455 455 0 455

111P4 Regional Conferences 0 1,468 1,468 0 1,468 111 Conference and Council 6,904 3,882 10,786 0 10,786 11210 Support to Governing Bodies and Relations

with Governments 4,643 (4,643) 0 0 0

11220 Meeting Programming and Documentation Services

4,030 (4,030) 0 0 0

112P1 Programming of meetings at Headquarters and in the Field

0 1,663 1,663 0 1,663

112P2 Provision and monitoring of FAO language services

0 2,540 2,540 0 2,540

112 Conference Services 8,674 (4,471) 4,203 0 4,203 11300 Protocol Services 2,270 (2,270) 0 0 0 113P1 Liaison with FAO Members and with the

Host Country 0 2,940 2,940 0 2,940

113 Protocol Services 2,270 670 2,940 0 2,940 11910 Departmental Direction 1,108 (1,108) 0 0 0 11920 Divisional Direction 641 (641) 0 0 0 119S1 Departmental Direction 0 632 632 0 632 119S2 Divisional Direction 0 654 654 0 654 119 Programme Management 1,750 (464) 1,286 0 1,286 11 Governing Bodies 19,598 (382) 19,215 0 19,215 12100 Director-General's Office 7,735 145 7,881 0 7,881 121S9 Management Support Services 144 (13) 131 0 131 121 Director-General's Office 7,879 132 8,012 0 8,012 12220 Evaluation 4,127 (4,127) 0 0 0 122A1 Programme Planning, Implementation

Reporting and Evaluation Support System (PIRES) Project

927 (154) 773 0 773

122P1 Planning, Programming and Budgeting 1,845 64 1,909 0 1,909 122P2 Programme Implementation Support and

Monitoring 1,407 786 2,193 0 2,193

122P3 Evaluation 0 3,909 3,909 0 3,909 122P4 Auto-evaluation 0 721 721 400 1,121 122S2 External Liaison 405 (83) 322 0 322


(all amounts in US$ 000)


Work

ZRG Programme

Change


Work

RG Programme

Change


Work

122S3 Policy Formulation 282 (282) 0 0 0 122S9 Management Support Services 174 (11) 163 0 163 122 Programme Planning, Budgeting and

Evaluation 9,167 823 9,990 400 10,390

12310 Internal Audit 5,465 (5,465) 0 0 0 12320 External Audit 900 26 926 0 926 123P1 Internal Audit, Inspection and Monitoring

of the Organization's System of Internal Control and Financial Management

0 5,701 5,701 0 5,701

123S9 Management Support Services 106 (7) 100 0 100 123 Audit and Inspection 6,472 256 6,728 0 6,728 12400 Legal Services 2,741 (2,741) 0 0 0 124P1 Legal Services Required for the

Management of the Organization 0 2,793 2,793 0 2,793

124S9 Management Support Services 114 (7) 107 0 107 124 Legal Services 2,855 45 2,900 0 2,900 12500 Programme and Operational Coordination 1,863 (1,863) 0 0 0 125P1 Decentralization Policy and Coordination 0 1,866 1,866 0 1,866 125 Programme and Operational Coordination 1,863 3 1,866 0 1,866 12 Policy, Direction and Planning 28,236 1,260 29,496 400 29,896 13110 United Nations System Organizations 2,812 (2,812) 0 0 0 13130 Contributions to Inter-agency Coordination

Mechanisms 8,491 (6,243) 2,248 0 2,248

131P1 External Relations and Coordination 0 817 817 0 817 131P2 Strategic Policy Advice on the UN System 0 1,647 1,647 0 1,647 131S9 Management Support Services 61 (4) 57 0 57 131 External Relations and Coordination 11,363 (6,595) 4,767 0 4,767 13210 United Nations 5,116 101 5,218 0 5,218 13220 North America 3,130 118 3,248 0 3,248 13230 Other Liaison Offices 2,781 6 2,787 0 2,787 132 Liaison Offices 11,027 225 11,253 0 11,253 13 External Coordination and Liaison 22,390 (6,370) 16,020 0 16,020 1 General Policy and Direction 70,224 (5,493) 64,731 400 65,131 210A1 Sustainable Intensification of Integrated

Production Systems 630 (629) 1 0 1

210A2 Promotion of Conservation Agriculture 916 (916) 0 0 0 210A3 Enhancing capacities for sustainable

production systems and good agricultural practices

0 1,701 1,701 83 1,784

210P1 Secretariat of the Commission on Genetic Resources for Food and Agriculture (CGRFA)

2,115 (110) 2,004 0 2,004

210S1 Committee on Agriculture (COAG) 576 (38) 538 0 538 210S2 Technical Services for Partnership

Development and Information Enhancement

567 (57) 510 0 510

210S5 Central Support to PAIAs 592 647 1,239 500 1,739 210 Intra-departmental Programme Entities for

Agricultural Production and Support Systems

5,395 598 5,994 583 6,577

211A1 Agricultural Water Use Efficiency and Conservation

2,916 30 2,945 300 3,245

211A2 Land and Soil Productivity 2,622 (16) 2,607 0 2,607 211A3 Integrated Land, Water and Plant Nutrition

Policies, Planning and Management 1,489 (62) 1,427 406 1,833

211A5 Land and Water Quality Improvement 835 36 870 0 870 211P7 Land and Water Information Systems,

Databases and Statistics 1,789 (51) 1,738 0 1,738




Work

ZRG Programme

Change


Work

RG Programme

Change


Work

211P8 Knowledge Management and Partnerships 1,332 (48) 1,284 0 1,284 211S1 Direct Support to Member Nations and to

the Field Programme 5,778 (97) 5,681 0 5,681

211S2 International Programme for Technology and Research in Irrigation and Drainage (IPTRID)

631 (32) 599 0 599

211 Natural Resources 17,392 (240) 17,152 706 17,858 212A1 Alternative Crops and Cultivars for New

Opportunities 1,364 (1,364) 0 0 0

212A3 Strategies and Technologies for Sustainable Crop and Grassland Production Systems

3,466 (3,466) 0 0 0

212A4 EMPRES - Plant Pests Component 1,953 (1,953) 0 0 0 212A5 "Mainstreaming IPM" by Enhancing

Essential Ecological Processes 2,369 1 2,370 0 2,370

212A8 Facilitating Plant Production and Protection Decision Making

423 (423) 0 0 0

212A9 Conservation and Sustainable Use of Plant Genetic Resources, including through Biotechnology, Biosafety and Seed Sector Development

2,475 221 2,696 298 2,994

212B1 Production and Biodiversity in Crop and Grassland Systems

0 2,439 2,439 60 2,499

212B2 Horticulture for improving livelihoods 0 1,833 1,833 0 1,833 212P1 Secretariat of the International Plant

Protection Convention (IPPC) 4,356 615 4,970 1,172 6,142

212P2 Pesticide Management 3,321 5 3,326 354 3,680 212P3 Migratory Pest Management 2,010 29 2,039 0 2,039 212P4 Technical Support to the International

Treaty on Plant Genetic Resources for Food and Agriculture

2,961 163 3,124 386 3,510

212P5 Support to Strategy Formulation and Promotion of Specific Action for Rice Development in Member Countries of the International Rice Commission (IRC)

674 12 686 0 686

212P6 EMPRES - Plant Pests Component 0 1,949 1,949 0 1,949 212P7 Secretariat of the International Treaty on

Plant Genetic Resources for Food and Agriculture

0 608 608 410 1,018

212S1 Advice to Countries and Support to Field Programme

2,373 180 2,553 0 2,553

212 Crops 27,745 849 28,594 2,680 31,274 213A3 Contribution of Livestock to Poverty

Alleviation 2,198 (2,198) 0 0 0

213A5 Developing the Global Strategy for the Management of Farm Animal Genetic Resources

2,082 (2,082) 0 0 0

213A6 Veterinary Public Health Management and Food and Feed Safety

1,506 (1,506) 0 0 0

213A7 EMPRES - Livestock 3,107 (3,107) 0 0 0 213A8 Technologies and Systems for Efficient

Natural Resource Use in Livestock Production

2,418 (2,418) 0 0 0

213A9 Environmental Management of Insect Borne Diseases

1,057 (1,057) 0 0 0

213B1 Livestock Sector Analysis and Strategy Development

1,195 (1,195) 0 0 0

213B2 Livestock Sector Analysis and Policy Development

0 1,306 1,306 200 1,506

213B4 Veterinary Public Health and Food Safety 0 1,990 1,990 190 2,180




Work

ZRG Programme

Change


Work

RG Programme

Change


Work

213B5 Livestock Development and Poverty Reduction

0 3,370 3,370 0 3,370

213B6 Livestock - Environment Interactions 0 3,860 3,860 354 4,214 213P1 Global Livestock Information 2,050 (363) 1,687 0 1,687 213P2 EMPRES - Progressive Control of

Transboundary Animal Diseases 0 3,600 3,600 200 3,800

213S1 Advice to Member Countries and Support to the Field Programme

3,246 (342) 2,904 0 2,904

213 Livestock 18,859 (141) 18,718 944 19,662 214A1 Enhancing small farmer income and

livelihoods by improving farmer strategies and skills for market-oriented farming

2,785 (978) 1,807 0 1,807

214A2 Meeting Urban Food Needs 1,423 (1,423) 0 0 0 214A3 Sustainable Commercial Provision of Input

Supply, Mechanisation, Investment Support and Marketing Services

2,105 (2,105) 0 0 0

214A4 Capacity building for small and medium post-production enterprises

2,208 (563) 1,645 0 1,645

214A9 Enhancing Food Quality and Safety by Strengthening Handling, Processing and Marketing in the Food Chain

1,351 (234) 1,118 0 1,118

214B3 Enhancing farmer-market linkages 0 2,380 2,380 0 2,380 214B4 Policy and institutional support for

fostering competitive agro-industries 0 2,319 2,319 400 2,719

214P2 Agricultural Services - Data and Information Systems

1,240 (278) 963 0 963

214S1 Field Programme Support and Advisory Services to Countries

4,792 415 5,206 0 5,206

214 Agricultural Support Systems 15,905 (467) 15,438 400 15,838 215A1 Sustainable Intensification of Crop

Production Systems through Technologies and Capacity-Building

2,142 (33) 2,109 0 2,109

215A2 Sustainable Intensification of Livestock Production Systems through Technologies and Capacity-building

1,744 35 1,779 235 2,014

215P1 Strengthening Compliance with International Food Safety Standards through Good Agricultural Practices

1,796 (107) 1,689 203 1,892

215 Agricultural Applications of Isotopes and Biotechnology

5,682 (105) 5,577 438 6,015

219S1 Departmental Direction 3,783 (206) 3,577 0 3,577 219S2 Divisional Direction 3,525 44 3,569 0 3,569 219S3 Regional and Sub-regional Direction 4,641 1,188 5,829 0 5,829 219 Programme Management 11,949 1,026 12,975 0 12,975 21 Agricultural Production and Support

Systems 102,927 1,520 104,447 5,751 110,198

220A1 Food Insecurity and Vulnerability Information for Better Policy Targeting (FIVIMS)

4,383 (24) 4,359 500 4,859

220A3 Demographic Change and Urbanization: Impact on Consumption Patterns

0 156 156 0 156

220A4 Managing Nutrition in a Transforming Food Economy

0 50 50 0 50

220A5 Evolution of Commodity Value Chains and Impact on Markets, Trade and Food Security

0 808 808 0 808

220A6 Analysis of the Impact of the Changing Structure of the Food Economy

0 391 391 0 391




Work

ZRG Programme

Change


Work

RG Programme

Change


Work

220A8 Implementing Guidelines on the Right to Food in the context of National Food Security

0 534 534 0 534

220P1 World Food Summit and Millennium Development Goals Monitoring and Action

1,524 (170) 1,354 0 1,354

220S1 Servicing the Committee on World Food Security

696 6 702 0 702


6,603 1,751 8,354 500 8,854

221A2 Nutrition Improvement for Sustainable Development

1,808 (43) 1,765 0 1,765

221A4 Community Action for Improved Household Food Security and Nutrition

1,071 (6) 1,065 0 1,065

221A5 Food and Nutrition Education, Communications and Training

1,436 52 1,488 0 1,488

221A6 Nutrition and Household Food Security in Emergencies

723 (6) 718 0 718

221P1 Nutrient Requirements and Dietary Assessment for Food Safety and Quality

1,430 (6) 1,424 0 1,424

221P2 Joint FAO/WHO Food Standards Programme (Codex Alimentarius)

6,857 79 6,936 769 7,705

221P5 Food Quality Control and Consumer Protection

2,675 (34) 2,641 439 3,080

221P6 Food Safety Assessment 2,947 (20) 2,927 100 3,027 221P7 Public Information about Nutrition, Food

Quality and Safety 164 (164) 0 0 0

221P8 Food Quality and Safety throughout the Food Chain

183 0 182 0 182

221S1 Technical Support Services to Member Nations and the Field Programme

1,332 2 1,334 0 1,334

221 Nutrition, Food Quality and Safety 20,626 (146) 20,481 1,308 21,789 222A2 FAO/World Bank/USDA Initiative for

Agricultural Statistics in Africa 512 (512) 0 0 0

222A3 FAO Country Profiles and Mapping Information System

290 10 300 0 300

222A4 Systematic Evaluation and Improvement of Statistical Data Quality

4 (4) 0 0 0

222A5 World Agriculture Information Resource System (WAIR)

2,435 (321) 2,114 0 2,114

222A6 Multi-Agency Programme for Capacity Building in Food and Agricultural Statistics in Africa

0 341 341 0 341

222P1 Agricultural Resources, Income and Food Security Statistics

3,053 (262) 2,790 100 2,890

222P2 Agricultural Production, Trade Statistics and Food Balance Sheets

5,214 (545) 4,669 100 4,769

222P3 Agricultural Surveys and Statistics Development

1,775 (117) 1,658 20 1,678

222P5 Programme for the Improvement of Language Coverage

2,013 (9) 2,004 0 2,004

222P6 WAICENT Corporate Information Management and Dissemination Systems

5,360 891 6,251 705 6,956

222P7 Standards, Norms and Procedures for Improved Access to Agricultural Information

1,332 (200) 1,132 0 1,132

222P8 Facilitation of WAICENT Outreach 2,532 44 2,576 0 2,576




Work

ZRG Programme

Change


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RG Programme

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Work

222P9 Management and acquisition from FAO and other providers of information collections, including the Virtual Library

5,324 (548) 4,776 0 4,776

222Q1 Management of FAOSTAT/CountryStat and Coordination of Statistics at FAO

0 1,397 1,397 580 1,977


1,751 (596) 1,155 0 1,155

222S2 Assistance to Countries in Capacity Building for Agriculture and Food Information through WAICENT

2,323 (364) 1,959 0 1,959

222 Food and Agricultural Information 33,917 (796) 33,121 1,505 34,626 223A2 Global Food and Agricultural Perspective

Studies 1,463 (178) 1,285 0 1,285

223P2 The State of Food and Agriculture 1,241 (34) 1,207 0 1,207 223P3 Market Assessments for Basic Food

Commodities and Impact on Global Food Security

1,580 (172) 1,408 0 1,408

223P4 Projections and Global Commodity Market Assessments

1,094 (7) 1,086 0 1,086

223P5 Market Assessments of Tropical, Horticultural and Raw Material Commodities and Impact on Food Security

2,278 (188) 2,090 0 2,090

223P6 Global Information and Early Warning System on Food and Agriculture

6,678 18 6,697 300 6,997


784 (6) 778 0 778

223 Food and Agricultural Monitoring, Assessments and Outlooks

15,119 (566) 14,553 300 14,853

224A2 Commodity and Trade Policy Support to Developing Countries for Trade Negotiations

1,681 (1,681) 0 0 0

224A4 Support for Implementation of Multi-Lateral Trade Negotiation Outcomes

0 1,504 1,504 864 2,368

224P1 Policy Analysis for agriculture and the rural economy

1,693 (59) 1,634 0 1,634

224P2 Agriculture, Rural Development and Poverty: Analysis of Linkages

1,869 (1,107) 762 250 1,012

224P3 Economics of Natural Resources and Environmental Sustainability

574 (6) 569 100 669

224P4 Analysis and Consensus-Building on Emerging Commodity and Trade Issues

4,247 (541) 3,705 0 3,705

224P5 Enhancing Diversification and Competitiveness of Agricultural Commodities

1,233 (14) 1,218 0 1,218

224P6 Food Security Policy Analysis and Impact Assessment

0 877 877 0 877


1,727 (58) 1,669 0 1,669


13,024 (1,084) 11,939 1,214 13,153

229S1 Departmental Direction 4,723 174 4,897 0 4,897 229S2 Divisional Direction 4,570 (47) 4,523 0 4,523 229S3 Regional and Sub-regional Direction 1,966 64 2,030 0 2,030 229 Programme Management 11,258 191 11,449 0 11,449 22 Food and Agriculture Policy and

Development 100,547 (650) 99,897 4,827 104,724




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231A2 Support to the Strategy for Improving Information on Status and Trends of Capture Fisheries (Strategy-STF) through FIRMS and other FIGIS Partnerships

1,062 (4) 1,059 100 1,159

231P1 Provision of Fisheries Information and Statistics

5,300 (44) 5,256 50 5,306

231S1 Advice and Technical Support to Member Nations and Regional Fisheries Bodies

1,211 23 1,234 160 1,394

231 Fisheries Information 7,573 (24) 7,548 310 7,858 232A1 Promotion of Responsible Inland Fisheries

and Aquaculture 1,884 (31) 1,853 0 1,853

232A2 Increased Contribution of Aquaculture and Inland Fisheries to Food Security

917 (3) 913 0 913

232A3 Marine Fisheries Resources Identification and Biodata

1,031 (2) 1,028 125 1,153

232A4 Monitoring and Reporting on Global Marine Resources and Relevant Environmental and Ecological Changes

1,484 (4) 1,481 125 1,606

232A5 Assessment and Management of Fisheries Resources

1,255 (6) 1,249 0 1,249

232P1 Global Monitoring and Strategic Analysis of Inland Fisheries and Aquaculture

2,399 (47) 2,352 250 2,602

232S1 Advice on Marine Resources and Environmental Issues

1,522 387 1,909 0 1,909

232S2 Advice on Inland Fisheries and Aquaculture Development

1,868 19 1,887 0 1,887

232 Fisheries Resources and Aquaculture 12,358 314 12,672 500 13,172 233A1 Reduction of Discards and Environmental

Impact from Fisheries 1,438 (1,438) 0 0 0

233A2 Sustainable Development of Small-scale Fisheries

1,588 (1,588) 0 0 0

233A3 Increased Production from Under-utilised Aquatic Resources and Low-value Catches

653 (653) 0 0 0

233A4 Consumption, Safety and Quality of Fish Products

1,261 (1,261) 0 0 0

233A5 Promotion of International Fish Trade 1,946 (1,946) 0 0 0 233A6 Impact of Fishing on the Environment 0 1,199 1,199 0 1,199 233A7 Implementation of MCS 0 739 739 102 841 233A8 Capacity Building for Small-scale Fisheries

Development 0 1,432 1,432 250 1,682

233A9 Improved Utilization of Fish for Human Consumption

0 885 885 0 885

233P1 Consumption, Safety and Quality of Fish Products

0 1,198 1,198 408 1,606

233P2 Promotion of International Fish Trade 0 1,846 1,846 0 1,846 233S1 Provision of Technical Support and

Guidance to Member Countries and FAO Field Programme in the area of Fishery Technology

2,996 (1,496) 1,500 0 1,500

233S2 Provision of Technical support and Guidance to Member Countries and FAO Field Programme in the area of Fish Utilization and Trade

0 1,195 1,195 0 1,195

233 Fisheries Exploitation and Utilisation 9,882 110 9,993 760 10,753 234A1 Coordination and Monitoring of the

Implementation of the Code of Conduct for Responsible Fisheries

1,209 (24) 1,186 0 1,186

234A4 Promotion of Coastal Fisheries Management

1,112 (76) 1,037 0 1,037




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234A5 Promotion of Appropriate National/Regional Policies for Sustainable Aquaculture Development

995 (4) 991 0 991

234P2 Global Analysis of Economic and Social Trends in Fisheries and Aquaculture

1,530 (7) 1,523 0 1,523

234P3 Economic and Social Analysis of Fishery and Aquaculture Policy and Management

1,846 (216) 1,631 280 1,911

234S1 Promotion and Strengthening of Regional Fisheries Bodies and Arrangements

3,846 (6) 3,840 235 4,075

234S2 Direct Support to Countries in Fisheries Policy and Management

867 (187) 680 0 680

234 Fisheries Policy 11,406 (519) 10,887 515 11,402 239S1 Departmental Direction 2,719 12 2,731 0 2,731 239S2 Divisional Direction 2,278 (5) 2,273 0 2,273 239S3 Regional and Sub-regional Direction 1,006 377 1,383 0 1,383 239 Programme Management 6,003 384 6,386 0 6,386 23 Fisheries 47,223 264 47,487 2,085 49,572 241A1 Sustainable Management of Natural Forests

and Woodlands 1,737 29 1,765 208 1,973

241A4 Conservation in Forests and Fragile Ecosystems

1,052 1 1,053 0 1,053

241A5 Planted Forests and Trees Outside Forests 1,196 17 1,213 0 1,213 241A7 Forests and Water 908 4 912 125 1,037 241A8 Forests and Climate Change 501 2 503 135 638 241P1 Assessment and Monitoring of Forests and

Woodland Resources 1,511 35 1,546 0 1,546

241S1 Technical Support and Advisory Services 2,225 15 2,240 0 2,240 241 Forest Resources 9,131 102 9,233 468 9,701 242A3 Forestry Sector Outlook Studies 1,497 4 1,501 200 1,701 242A4 Economic Aspects of Forests 1,373 5 1,378 180 1,558 242P1 Forest Products Information 2,738 90 2,828 0 2,828 242P2 Appropriate Utilisation of Forest Products 1,760 (22) 1,739 225 1,964 242S1 Support to Field Projects and Advisory

Services 1,825 (10) 1,816 0 1,816

242 Forest Products and Economics 9,193 68 9,261 605 9,866 243A3 Strengthening National Institutional

Capacities 1,954 (21) 1,933 250 2,183

243A4 Forest Policies and Governance 1,081 12 1,094 150 1,244 243A5 Forests, Poverty Alleviation and Food

Security 664 7 671 0 671

243P4 Participatory Forestry and Sustainable Livelihoods

667 1 668 0 668

243S1 Interaction with Field Programmes and Advisory Services

1,421 (3) 1,418 0 1,418

243 Forestry Policy and Institutions 5,788 (4) 5,784 400 6,184 244A1 International Forestry Processes 830 172 1,002 0 1,002 244P1 Forestry Information 2,459 60 2,519 0 2,519 244S1 Support to Statutory Bodies and Liaison

with the Regional Offices 2,168 (415) 1,753 0 1,753

244 Forestry Information and Liaison 5,457 (183) 5,274 0 5,274 249S1 Departmental Direction 2,653 (45) 2,608 0 2,608 249S2 Divisional Direction 1,951 (2) 1,949 0 1,949 249S3 Regional and Sub-regional Direction 1,201 332 1,534 0 1,534 249 Programme Management 5,805 286 6,090 0 6,090 24 Forestry 35,374 269 35,643 1,473 37,116 251A1 Integrated Use of Information for

Sustainable Development 2,389 (2,389) 0 0 0




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251A2 Youth in Agriculture, Food Security and Sustainable Livelihoods

943 (943) 0 0 0

251A3 Partnerships for Improving Application of Biotechnology in Agriculture

872 (872) 0 0 0

251A4 Integrated Development and Dissemination of Agricultural Knowledge and Technology for Food Security and Sustainable Development

3,213 (3,213) 0 0 0

251A5 Secretariat of the Global Forum on Agricultural Research (GFAR)

95 (95) 0 0 0

251A6 Support to Environmental Agreements and Promotion of Integrated Environmental Planning and Management

1,561 (298) 1,263 169 1,432

251A8 Environmental Information and Decision Support Systems

0 1,396 1,396 0 1,396

251A9 Strengthening research systems and biotechnology applications

0 2,677 2,677 0 2,677

251P1 Environmental Geo-Information Infrastructure and Services

1,452 (61) 1,391 0 1,391

251P3 Information and Communication Technologies in Support of Agricultural Research, Extension and Education Systems

2,201 (2,201) 0 0 0

251P4 Secretariat of the CGIAR Science Council 5,516 256 5,772 0 5,772 251S1 Technical Support Services to Member

Nations, the Field Programme, and Other Related Activities

3,347 (1,390) 1,957 0 1,957

251 Research, Natural Resources Management and Technology Transfer

21,588 (7,132) 14,456 169 14,625

252A3 Gender and Natural Resources Management

1,268 254 1,522 0 1,522

252A4 Analysis and Mitigation of the Impact of HIV/AIDS on Food Security and Rural Development

1,194 (106) 1,088 750 1,838

252A5 Education for Rural People 0 811 811 0 811 252P1 Promotion of Gender and Population

issues, especially in Policies, Information and Agricultural Statistics

2,382 329 2,711 0 2,711

252P2 Information and Communication Technologies in Support of Agricultural Research, Extension and Education Systems

0 2,286 2,286 0 2,286

252S1 Technical Support to Member Nations and the Field Programme

1,215 1,128 2,343 0 2,343

252 Gender and Population 6,058 4,702 10,760 750 11,510 253A1 Access 21: Land Tenure Institution

Building for Food Security and Sustainable Rural Development

1,852 (1,852) 0 0 0

253A2 Improved Rural Institutions and Services to Promote Sustainable Agriculture and Rural Development and Enhance Livelihoods

2,289 (2,289) 0 0 0

253A4 Participatory Approaches and Methods to Support Sustainable Agriculture and Rural Development to Enhance Livelihoods and Food Security

1,088 (1,088) 0 0 0

253A5 Sustainable and affordable systems, including security of tenure, for access to land and other natural resources

0 2,095 2,095 0 2,095




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253A6 Enhanced Rural Institutions, Extension and Participatory Processes for Sustainable Agriculture and Rural Development (SARD)

0 4,100 4,100 770 4,870

253P1 Management and Support to the UN System Network on Rural Development and Food Security

261 1 263 0 263

253S1 Technical Support Services on Participatory Approaches, Institutional Development and Access to Land Resources

3,089 1,366 4,455 0 4,455

253 Rural Development 8,580 2,332 10,912 770 11,682 256P1 Management and Coordination 2,257 4 2,260 0 2,260 256P2 SPFS Formulation 1,057 1 1,058 0 1,058 256P3 SPFS Implementation 8,331 (27) 8,304 400 8,704 256 Food Production in Support of Food

Security in LIFDCs 11,644 (22) 11,622 400 12,022

259S1 Departmental Direction 4,216 (251) 3,965 0 3,965 259S2 Divisional Direction 2,326 (24) 2,302 0 2,302 259S3 Regional and Sub-regional Direction 1,963 737 2,700 0 2,700 259 Programme Management 8,505 462 8,967 0 8,967 25 Contributions to Sustainable Development

and Special Programme Thrusts 56,376 342 56,718 2,089 58,807

2 Technical and Economic Programmes 342,446 1,744 344,191 16,225 360,416 311A1 Development of FAO's Capacity to Provide

On-line Training in Food, Agriculture and Rural Development Policy and Planning

349 115 464 0 464

311P1 Coordination and harmonization of policy assistance for decentralized outreach activities

1,545 491 2,035 0 2,035

311P2 Coordination of Field Programme Development Activities

1,055 (1,055) 0 0 0

311P3 Support to capacity building in food agriculture & rural development policy & planning

957 (141) 816 0 816

311P4 Support to country & regional sector information & analysis

1,095 487 1,581 0 1,581

311S2 Support to advisory services in food, agriculture and rural policy development planning and policy analysis

1,840 225 2,065 0 2,065

311 Coordination of Policy Assistance and Field Programme Development

6,841 122 6,962 0 6,962

312P1 Country & regional sector information & analysis

2,056 563 2,619 350 2,969

312P2 Field Programme Development 5,779 480 6,259 0 6,259 312P3 Capacity building in food agriculture &

rural development policy & planning 4,271 475 4,746 720 5,466

312S3 Provision of policy & strategic advice 2,406 1,087 3,493 (1,040) 2,453 312 Policy Assistance to Various Regions 14,511 2,606 17,117 30 17,147 313A1 Support to the Development of a

Regulatory Framework for Food and Agriculture

338 24 362 37 399

313P1 Collection and Dissemination of Legal Information

1,256 (83) 1,173 0 1,173

313S1 Provision of Technical Advice 1,945 229 2,174 217 2,391 313 Legal Assistance to Member Nations 3,539 170 3,709 254 3,963 319S2 Divisional Direction 1,177 (162) 1,015 0 1,015 319S3 Regional and Sub-regional Direction 3,585 (377) 3,208 0 3,208




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319 Programme Management 4,762 (538) 4,224 0 4,224 31 Policy Assistance 29,653 2,359 32,013 284 32,297 32110 FAO/World Bank Cooperative Programme 32,231 (32,231) 0 0 0 32190 Programme Management 3,530 (3,530) 0 0 0 321S1 World Bank Cooperative Programme 0 28,657 28,657 0 28,657 321S9 World Bank Cooperative Programme -

Quality Control and Programme Management

0 3,734 3,734 0 3,734

321 FAO/World Bank Cooperative Programme 35,761 (3,370) 32,391 0 32,391 32210 Investment Support Programme 14,246 (14,246) 0 0 0 32290 Programme Management 5,121 (5,121) 0 0 0 322S1 African Development Bank 0 6,731 6,731 200 6,931 322S2 International Fund for Agricultural

Development 0 6,716 6,716 200 6,916

322S3 World Food Programme 0 2,081 2,081 200 2,281 322S4 Other International Financing Institutions 0 1,820 1,820 1,500 3,320 322S5 Bilateral activities 0 904 904 200 1,104 322S6 Support to FAO activities 0 904 904 0 904 322S9 Investment Support Programme - Quality

Control and Programme Management 0 3,392 3,392 0 3,392

322 Investment Support Programme 19,367 3,181 22,548 2,300 24,848 32 Support to Investment 55,128 (189) 54,940 2,300 57,240 33110 Africa 733 (733) 0 0 0 33120 Asia and Pacific 2,065 (2,065) 0 0 0 33130 Latin America and the Caribbean 865 (865) 0 0 0 33140 Near East and North Africa 1,036 (1,036) 0 0 0 33150 Europe and Inter-regional/Global Projects 358 (358) 0 0 0 331P1 Coordination and monitoring of regional

field programme activities in Africa 0 596 596 0 596

331P2 Coordination and monitoring of regional field programme activities in Asia

0 450 450 0 450

331P3 Coordination and monitoring of regional field programme activities in Europe

0 118 118 0 118

331P4 Coordination and monitoring of regional field programme activities in Latin America and the Caribbean

0 461 461 0 461

331P5 Coordination and monitoring of regional field programme activities in Near East

0 410 410 0 410

331S1 Support to the field programme in Africa 0 (123) (123) 0 (123) 331S2 Support to the field programme in Asia 0 1,112 1,112 0 1,112 331S3 Support to the field programme in Europe 0 351 351 0 351 331S4 Support to the field programme in Latin

America and the Caribbean 0 70 70 0 70

331S5 Support to the field programme in Near East

0 399 399 0 399

331 Field Operations in Various Regions 5,056 (1,214) 3,842 0 3,842 33200 Central Support and Special Activities 4,692 (4,692) 0 0 0 332A2 Enhancement of database and tools for

corporate and departmental field programme management and monitoring

0 1,491 1,491 0 1,491

332P1 Coordination of field programme activities 0 996 996 0 996 332P2 Monitoring of field programme activities 0 1,318 1,318 0 1,318 332S1 External Services in Relation to the Field

Programme 0 705 705 0 705

332 Central Support and Special Activities 4,692 (181) 4,510 0 4,510




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333P1 Development of FAO's capacity to formulate and implement policies and approaches for emergency, rehabilitation and humanitarian assistance

10,646 (8,309) 2,337 0 2,337

333P2 Support to Member Nations and Others by Promoting the Formulation and Application of Rehabilitation and Humanitarian Assistance Policies

1,046 (1,046) 0 0 0

333P3 Mobilization of Resources for Emergency and Rehabilitation Programmes

2,058 (2,058) 0 0 0

333S1 Management of emergency and early rehabilitation operations and coordination of post-conflict programmes

0 12,922 12,922 0 12,922

333 Emergency Operations and Rehabilitation 13,750 1,508 15,259 0 15,259 33900 Programme Management 1,148 (1,148) 0 0 0 339S2 Divisional Direction 0 711 711 0 711 339 Programme Management 1,148 (437) 711 0 711 33 Field Operations 24,646 (323) 24,323 0 24,323 34000 FAO Representatives 80,009 (80,009) 0 0 0 340P2 Oversight, Operations and Management

Support Services to the Country Offices 0 15,271 15,271 0 15,271

340S1 Support to the Field Programme 2,238 (2,238) 0 0 0 340S2 Support to National Development

Programmes and Humanitarian Activities by FAORs

0 51,364 51,364 3,950 55,314

340S3 Advocacy and Outreach of FAO Activities at Country Level

0 15,921 15,921 0 15,921

340 FAO Representatives 82,247 310 82,556 3,950 86,506 34 FAO Representatives 82,247 310 82,556 3,950 86,506 35100 Multilateral and Bilateral Agencies 4,994 (4,993) 0 0 0 351P1 Organizational Support to Resources

Mobilization 0 3,692 3,692 0 3,692

351S1 Outreach to Partners for Resources Mobilization

0 1,814 1,814 0 1,814

351 Multilateral and Bilateral Agencies 4,994 513 5,507 0 5,507 35210 Partnerships with Civil Society including

the Private Sector and NGOs 2,366 (2,366) 0 0 0

35220 National Food for All and Other Awareness Raising Campaigns

3,381 (3,381) 0 0 0

352P1 Corporate Framework for Effective Partnerships

0 1,518 1,518 0 1,518

352S1 Enhancing the collaboration of FAO with external partners

0 1,378 1,378 0 1,378

352S2 Increased awareness of and support to FAO objectives through World Food Day, TeleFood and related activities

0 3,516 3,516 0 3,516

352S3 The International Alliance Against Hunger 0 600 600 0 600 352 Civil Society Awareness and Partnerships 5,747 1,265 7,012 0 7,012 35300 Cooperation Agreements with Member

Nations/Support to ECDC-TCDC 1,059 (1,059) 0 0 0

353P1 Coordination of Partnership Programmes 0 1,034 1,034 0 1,034 353 Cooperation Agreements with Member

Nations and Support to ECDC and TCDC 1,059 (25) 1,034 0 1,034

35 Cooperation with External Partners 11,800 1,752 13,552 0 13,552 39000 Programme Management 2,288 (2,288) 0 0 0 390S1 Departmental Direction 0 2,316 2,316 0 2,316 390 Programme Management 2,288 29 2,316 0 2,316 39 Programme Management 2,288 29 2,316 0 2,316




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3 Cooperation and Partnerships 205,762 3,938 209,700 6,534 216,234 41000 Technical Cooperation Programme 98,645 0 98,645 4,000 102,645 410 Technical Cooperation Programme 98,645 0 98,645 4,000 102,645 41 Technical Cooperation Programme 98,645 0 98,645 4,000 102,645 42000 TCP Unit 4,382 (4,382) 0 0 0 420S1 Programme Management, Monitoring and

Coordination of the TCP 0 4,442 4,442 100 4,542

420 TCP Unit 4,382 59 4,442 100 4,542 42 TCP Unit 4,382 59 4,442 100 4,542 4 Technical Cooperation Programme 103,027 59 103,087 4,100 107,187 51140 Publishing Policy & Support 4,727 (4,727) 0 0 0 51150 Media Relations 11,760 (11,760) 0 0 0 511P1 Multilingual communication 0 4,248 4,248 0 4,248 511P2 Publishing Policy and Support 0 4,777 4,777 0 4,777 511S1 Public Information and Outreach 0 7,652 7,652 0 7,652 511 Public Information and Publications

Support 16,487 190 16,677 0 16,677

51910 Departmental Direction 861 (861) 0 0 0 51920 Divisional Direction 716 (716) 0 0 0 519S1 Departmental Direction 0 542 542 0 542 519S2 Divisional Direction 0 725 725 0 725 519 Programme Management 1,577 (311) 1,266 0 1,266 51 Information and Publications Support 18,064 (121) 17,944 0 17,944 52130 Central Accounting, Reporting and Control 10,766 (10,766) 0 0 0 52140 Payables and Receivables 8,457 (8,457) 0 0 0 52150 Treasury Operations 1,591 (1,591) 0 0 0 521P1 Central Accounting and Financial

Reporting 0 10,754 10,754 0 10,754

521P2 Financial Operations and Systems 0 9,253 9,253 0 9,253 521P3 Treasury Operations 0 1,783 1,783 0 1,783 521 Financial Services 20,813 977 21,790 0 21,790 52200 Information Systems and Technology

Services 2,036 (2,036) 0 0 0

522P1 IS & ICT Coordination 0 1,883 1,883 0 1,883 522 Information Systems and Technology

Services 2,036 (153) 1,883 0 1,883

52330 Health and Medical Services 3,726 (3,726) 0 0 0 52340 Personnel Policy and Planning 6,189 (6,189) 0 0 0 52350 Organization Development and Services 2,742 (2,742) 0 0 0 52370 Social Security 1,953 (1,953) 0 0 0 52380 Staffing Services 4,238 (4,238) 0 0 0 523P1 Health and Medical Services 0 3,649 3,649 0 3,649 523P2 Policy and Legal Services 0 3,347 3,347 0 3,347 523P3 Planning and Administration of Human

Resources 0 2,533 2,533 508 3,041

523P4 Organizational Development and Staffing 0 4,167 4,167 508 4,675 523P5 Staff Development Services 0 3,024 3,024 0 3,024 523P6 Provision of Social Security Services 0 1,820 1,820 0 1,820 523 Human Resources Services 18,848 (309) 18,539 1,016 19,555 52910 Departmental Direction 4,051 (4,051) 0 0 0 52920 Divisional Direction 2,653 (2,653) 0 0 0 529S1 Departmental Direction 0 2,019 2,019 0 2,019 529S2 Divisional Direction 0 2,752 2,752 0 2,752 529 Programme Management 6,704 (1,934) 4,771 0 4,771 52 Administration 48,402 (1,418) 46,983 1,016 47,999 5 Support Services 66,466 (1,539) 64,927 1,016 65,943




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60010 Documents, Central Records and Communications User Services

10,275 (10,275) 0 0 0

60020 Buildings Maintenance 22,277 (22,277) 0 0 0 60030 Procurement 8,286 (8,286) 0 0 0 60040 Security and Transport 9,308 (9,308) 0 0 0 60090 Programme Management 2,340 (2,340) 0 0 0 600P1 Provision of Documents, Central Records

and Communications User Services 0 8,898 8,898 0 8,898

600P2 Buildings Maintenance 0 25,584 25,584 0 25,584 600P3 Procurement 0 8,326 8,326 0 8,326 600P4 Security and Transport 0 1,196 1,196 0 1,196 609S2 Divisional Direction 0 2,395 2,395 0 2,395 600 Common Services 52,486 (6,088) 46,398 0 46,398 60 Common Services 52,486 (6,088) 46,398 0 46,398 6 Common Services 52,486 (6,088) 46,398 0 46,398 70000 Contingencies 600 0 600 0 600 700 Contingencies 600 0 600 0 600 70 Contingencies 600 0 600 0 600 7 Contingencies 600 0 600 0 600 811P1 HQ and Regional Office PABX Systems 0 150 150 0 150 811 Telephony Services 0 150 150 0 150 812P1 Corporate Administrative Applications 0 950 950 0 950 812P3 Server Software and Client Access Licenses

for HQ and ROs 0 595 595 0 595

812 Shared Data Services 0 1,545 1,545 0 1,545 813P1 IT Support to Meetings 0 1,000 1,000 0 1,000 813 IT Support to Meetings 0 1,000 1,000 0 1,000 814P1 Human Resources Management System

Project (HRMS)s 0 5,800 5,800 2,500 8,300

814P2 Field Accounting System (FAS)s 0 500 500 200 700 814P4 Electronic Document Management System 0 100 100 1,400 1,500 814 Administrative Information Systems 0 6,400 6,400 4,100 10,500 81 Capital Expenditure 0 9,095 9,095 4,100 13,195 8 Capital Expenditure 0 9,095 9,095 4,100 13,195 911P1 Safeguarding of FAO personnel, assets and

operations in Headquarters 0 7,563 7,563 0 7,563

911 Headquarters Security 0 7,563 7,563 0 7,563 91 Headquarters Security 0 7,563 7,563 0 7,563 921P1 Safeguarding of personnel, assets and

operations in field locations and provision of security equipment to FAO Representations

0 7,046 7,046 0 7,046

921P2 Provision of security equipment to FAO decentralized offices other than the FAORs

0 705 705 0 705

921 FAO-managed security provisions for the decentralized offices

0 7,751 7,751 0 7,751

922P1 FAO participation in joint UN system undertakings to strengthen field security

0 279 279 0 279

922P2 FAO financial contribution to the UN unified security management system

0 4,405 4,405 0 4,405

922 Joint-UN system undertakings to improve security of field and field-bound staff

0 4,684 4,684 0 4,684

92 Field Security 0 12,435 12,435 0 12,435 9 Security Expenditure 0 19,999 19,999 0 19,999 Total 841,011 21,716 862,727 32,375 895,102


Acronyms

AF Administration and Finance Department

AfDB African Development Bank

AFF Finance Division

AFH Human Resources Management Division

AFI Information Systems and Technology Division

AFS Administrative Services Division

AGE Joint FAO/IAEA Division of Nuclear Techniques in Food and Agriculture

AGLINET Worldwide Network of Agricultural Libraries

AGORA Access to Global Online Research in Agriculture

AGRIS International Information System for the Agricultural Sciences and Technology

AGROVOC Multilingual Thesaurus of Agricultural Terminology

AnGR Animal genetic resources

AOS Administrative and operational support

APFIC Asia-Pacific Fishery Commission

APHCA Regional Animal Production and Health Commission for Asia and the Pacific

APO Associate Professional Officer

APPPC Asia and Pacific Plant Protection Commission

AsDB Asian Development Bank

ASEAN Association of Southeast-Asian Nations

ASMC After-service Medical Coverage

AUD Office of the Inspector-General

BSE Bovine spongiform encephalopathy

CAADP Comprehensive Africa Agriculture Development Programme

CAF Caja Andina de Fomento

CAP Common Agricultural Policy (EU)

CARICOM Caribbean Community Secretariat

CAS Country assistance strategies

CBD Convention on Biological Diversity

CBPP Contagious bovine pleuropneumonia

CCA Common country assessment

CCRF Code of Conduct for Responsible Fisheries


CFC Common Fund for Commodities

CCLM Committee on Constitutional and Legal Matters

CCP Committee on Commodity Problems

CDM Clean development mechanism

CEB United Nations System's Chief Executives Board for Coordination

CECAF Fishery Committee for the Eastern Central Atlantic

CEEC Central and Eastern European countries

CFS Classical swine fever

CFS Committee on World Food Security

CGIAR Consultative Group on International Agricultural Research

CGRFA Commission on Genetic Resources for Food and Agriculture

CIFA Committee for Inland Fisheries of Africa

CIS Commonwealth of Independent States

CITES Convention on International Trade in Endangered Species of Wild Fauna and Flora

CL FAO Council

COAG Committee on Agriculture

COAIM Consultation on Agricultural Information Management

COFI Committee on Fisheries

COIN Country Office Information Network

COP Conference of the Parties

COPESCAL Commission for Inland Fisheries of Latin America

CPF Collaborative Partnership on Forests

CPPS Organization for the Conservation, Protection and Optimum Utilization of Tunas and Tuna-like Species in the Eastern Pacific

CRIC Committee for the Review of the Implementation of the Convention

CSD Commission on Sustainable Development (UN)

CSO Civil Society Organization

DAD-IS Domestic Animal Diversity Information System

DFID UK Department for International Development

DIMITRA Rural Women and Development (FAO/King Baudouin Foundation)

DRM Disaster risk management

EAF Ecosystem approach to fisheries

EBRD European Bank for Reconstruction and Development


ECDC Economic Cooperation among Developing Countries

ECOCROP Crop Environmental Requirements Database

ECOSOC Economic and Social Council (UN)

ECOWAS Economic Community of West African States

ECTAD Emergency Centre for Transboundary Animal Disease Operations

EEZ Economic exclusive zones

EIFAC European Inland Fisheries Advisory Commission

EMPRES Emergency Prevention System for Transboundary Animal and Plant Pests and Diseases

ERP Education for Rural People

ESS Statistics Division

EU European Union

EUFMD European Commission for the Control of Foot-and-Mouth Disease

FAOR FAO Representative

FAOSTAT Corporate Database for Substantive Statistical Data

FAS Field Accounting System

FC Finance Committee

FFS Field farmers schools

FIGIS Fisheries Global Information System

FIRMS Fisheries Resources Monitoring System

FMD Foot-and-mouth disease

FIVIMS Food Insecurity and Vulnerability Information and Mapping System

FORIS Forestry Information System

FPMIS Field Programme Management Information System

GAP Good agricultural practice

GEF Global Environment Facility

GFAR Global Forum on Agricultural Research

GFCM General Fisheries Commission for the Mediterranean

GIAHS Globally Important Ingenious Agricultural Heritage Systems

GIC Conference, Council and Protocol Affairs Division

GIEWS Global Information and Early Warning System on Food and Agriculture

GII Information Division

GIL Library and Documentation Systems Division

GIS Geographical Information System


GLCN Global Land Cover Network

GLEWS Global Early Warning System for Transboundary Animal Diseases

GLiPHA Global Livestock Production and Health Atlas

GPA Global Plan of Action

GREP Global Rinderpest Eradication Programme

HORTIVAR Horticulture Cultivar Performance Database

HPAI Highly pathogenic avian influenza

HRG Higher real growth

HRMS Human Resources Management System

IAAH International Alliance Against Hunger

IAEA International Atomic Energy Agency

IASMN Inter-Agency Security Management Network

IAWG Inter-agency Working Group

ICC International Computing Centre

ICES International Council for the Exploration of the Sea

ICSC International Civil Service Commission

ICT Information and communication technology

IEA International Energy Agency

IFAD International Fund for Agricultural Development

IGG Intergovernmental Group

IGO Inter-governmental Organization

IICA Inter-American Institute for Cooperation on Agriculture

ILO International Labour Organization

INFOCRIS International Food Contaminant and Residue Information System

INPHO Information Network on Post-harvest Operations

IPGRI International Plant Genetic Resources Institute

IPM Integrated pest management

IPOA International Plan of Action

IPPC International Plant Protection Convention

IPPM Integrated production and pest management

IsDB Islamic Development Bank

ISP Investment Support Programme

IUU Illegal, unreported and unregulated (fishing)

IMARK Information management resource kit

JEFCA Joint FAO/WHO Expert Committee on Food Additives


JIU Joint Inspection Unit

LEAD Livestock, Environment and Development

LEG Legal Office

LFCC Low Forest Cover Countries

LIFDC Low-Income, Food-Deficit Country

MCS Monitoring, control and surveillance

MDG Millennium Development Goal

MERCOSUR Southern Common Market

MORS Minimum Operating Residential Security Standards

MOSS Minimum Operating Security Standards

MSS Management Support Service

MSU Management Support Unit

MTP Medium Term Plan

NARS National Agricultural Research Systems

NALO National Aquaculture Legislation Overview

NASO National Aquaculture Sector Overview

NENARNAP Near East and North Africa Regional Network for Agricultural Policies

NEPAD New Partnership for Africa's Development

NERICA New Rice for Africa

NGO Non-governmental Organization

NWFP Non-wood forest product

OCD Office for Coordination of Normative, Operational and Decentralized Activities

ODG Office of the Director-General

OECD Organisation for Economic Co-operation and Development

OIE World Organisation for Animal Health

OLDEPESCA Latin American Organization for Fisheries Development

OSPESCA Organización del Sector Pesquero y Acuícola del Istmo Centroamericano

PAAT Programme Against African Trypanosomiasis

PAIA Priority Area for Inter-disciplinary Action

PATTEC Pan African Tsetse and Trypanosomiasis Eradication Campaign

PBE Office of Programme, Budget and Evaluation

PC Programme Committee

PGRFA Plant Genetic Resources for Food and Agriculture


PIF Pacific Islands Forum

PIRES Programme Planning, Implementation Reporting and Evaluation System

PPRC Programme and Project Review Committee

PRSP Poverty Reduction Strategy Paper

PWB Programme of Work and Budget

RAF Regional Office for Africa

RAP Regional Office for Asia and the Pacific

RECOFI Regional Commission for Fisheries

RFB Regional fishery body

RG Real growth

RLC Regional Office for Latin America and the Caribbean

RNE Regional Office for the Near East

ROB Regional Operations Branch

SAARC South Asian Association for Regional Cooperation

SACOI Strategy to Address Cross-organizational Issues

SAD Special Advisers to the Director-General

SAFR Subregional Office for Southern and East Africa

SARD Sustainable agriculture and rural development

SD Sustainable Development Department

SDW Gender and Population Division

SEAGA Socio-economic and Gender Analysis Programme

SEF Security Expenditure Facility

SFERA Special Fund for Emergency and Rehabilitation Activities

SFLP Sustainable Fisheries Livelihoods Programme

SIPAM Information System for the Promotion of Aquaculture in the Mediterranean

SOFA The State of Food and Agriculture

SOFI The State of Food Insecurity in the World

SPFS Special Programme for Food Security

SPS Sanitary and phytosanitary measures

SPWB Summary Programme of Work and Budget

SRA Special reserve account

SSC South-South Cooperation

STF Status and Trends of Capture Fisheries (Strategy for Improving Information on)


SWAp Sector-wide approach

SWIOFC South West Indian Ocean Fisheries Commission

TAD Transboundary animal diseases

TBT Technical barriers to trade

TC Technical Cooperation Department

TCA Policy Assistance Division

TCDC Technical Cooperation among Developing Countries

TCE Emergency Operations and Rehabilitation Division

TCI Investment Centre

TCO Field Operations Division

TCOS SPFS Monitoring and Coordination Service

TCOT Technical Cooperation Programme Service

TCP Technical Cooperation Programme

UEMOA West African Economic and Monetary Union

UNAIDS Joint United Nations Programme on HIV/AIDS

UNCCD United Nations Convention to Combat Desertification in those Countries Experiencing Serious Drought and/or Desertification, particularly in Africa

UNCTAD United Nations Conference on Trade and Development

UNDAF United Nations Development Assistance Framework

UNDG United Nations Development Group

UNDP United Nations Development Programme

UNDSS United Nations Department of Safety and Security

UN/ECE Economic Commission for Europe

UNEP United Nations Environment Programme

UNESCO United Nations Educational, Scientific and Cultural Organization

UNFCCC United Nations Framework Convention on Climate Change

UNFSA United Nations Fish Stocks Agreement

UNGA United Nations General Assembly

UNICEF United Nations Children’s Fund

UNOPS United Nations Office for Project Services

VMS Vessel monitoring system

WAICENT World Agricultural Information Centre

WCCD World Congress on Communication for Development

WCF Working Capital Fund

WEC World Energy Council


WECAFC Western Central Atlantic Fishery Commission

WFD World Food Day

WFP World Food Programme

WHO World Health Organization

WSSD World Summit on Sustainable Development

WTO World Trade Organization

ZNG Zero nominal growth

ZRG Zero real growth