STATEMENT OF THE DIRECTOR-GENERAL TO THE
TWENTY-SIXTH FAO REGIONAL CONFERENCE FOR LATIN AMERICA
AND THE CARIBBEAN
Merida, Mexico, 10-14 April 2000
Mr Chairman of the Regional Conference,
Distinguished Ministers,
Excellencies,
Ladies and Gentlemen,
It is a great pleasure for me to welcome you to
the Twenty-sixth
FAO Regional Conference for Latin America and the
Caribbean which is being held in this beautiful city
of Merida, at the kind invitation of the Government of
Mexico. I should like to express, on behalf of all the
delegations and the staff of FAO, our sincere gratitude
to the Government and people of Mexico and to the
inhabitants of the city of Merida for their warm welcome
and generous hospitality.
State of food and agriculture in the world
Excellencies, Ladies and Gentlemen,
The world is undergoing a rapid pace of globalization
and growing interdependence, with borders increasingly
opened economically.
The estimates for world cereal production in 1999 have
recently been revised upwards and now stand at 1 872
million tonnes. This is, however, one percent down from
1998, and two percent down from 1997, which was a
particularly good year. The only expected increase is for
rice, while wheat and other cereal harvests will be
lower. For the first time in four years, projected cereal
consumption will exceed production. This will require a
drawdown of 8 million tonnes from stocks which will
therefore amount to 334 million tonnes. Such a level
guarantees a stock-to-utilization ratio within the safety
margin of 17 to 18 percent.
For these reasons, the 1999/2000 marketing season
could register an increase of over three percent in world
cereal trade, equivalent to a volume of 222 million
tonnes. Yet, cereal prices on world markets are generally
lower than last year, a positive factor for the 82
low-income food-deficit countries.
We can also observe an encouraging sign in the
fisheries sector, which registered a partial recovery in
output in 1999 after the heavy falls in production of the
previous year.
But, the most positive factor is the indication in the
FAO
report on the State of Food Insecurity in the World
of a reduction by 40 million, between 1990-92 and
1995-97, of the total number of malnourished people in
the developing countries. This annual reduction of about
8 million people on average is encouraging, but it is far
below the figure of 20 million required to achieve the
objective of the World
Food Summit.
Emergency situations
Against such a global picture, 35 countries have been
faced with food emergencies. At the end of 1999, the
number of people affected by food emergencies resulting
primarily from natural and man-made disasters was
estimated at about 52 million. However, data indicate
that their relative frequency has changed over the last
thirty years. Whilst in the 1970s and 1980s food
emergencies were mainly the result of natural factors, in
more recent years man-made disasters - especially war,
civil strife and financial and economic crises - have
done nothing but increase.
In Latin America, many countries are still suffering
from the devastation caused by El Niño and
Hurricane Mitch in 1998, and compounded by the torrential
rains and floods of 1999. In addition, late last year, a
severe cyclone and extensive floods hit Venezuela. In
Africa, the emergency situations arise in particular from
civil strife and recurrent droughts, whilst in Asia,
millions of people have seen their basic access to food
eroded by declining purchasing power as several economies
were devastated by the financial crisis in 1997/1998. In
the Near East, the worst drought in decades in 1999
seriously reduced food production in several countries.
In this part of the world, in addition to weather
fluctuations, the problem of access to water for food
production will undoubtedly be the main cause of food
supply problems in the future.
The role of FAO in such a context is more important
than ever, primarily in assessing the food and
agriculture situation, determining food aid needs and
informing the international community, thanks to the
Global
Information and Early Warning System of FAO, which is
working together with the World Food Programme, the UNDP
and an extensive network of governmental and
non-governmental organizations.
Emergency situations also require FAO to revive
agricultural production by evaluating needs, in
cooperation with other UN agencies in the framework of
consolidated appeals for humanitarian assistance and,
especially, by providing direct assistance to farmers.
During last year and this year, FAO has implemented 20
emergency projects (both national and regional) for a
total value of US$5.5 million in 22 Latin American and
Caribbean countries. The emergency operations have aimed
at the rehabilitation of agriculture, livestock, forestry
and fisheries sectors damaged by natural disasters such
as the earthquakes in Bolivia and Colombia, the
hurricanes and tropical storms George, Mitch, Floyd, Jose
and Lenny, among others, in the Caribbean Islands and
Central America, the El Niño phenomenon in Ecuador
and Peru and more recently the catastrophic floods and
mudslides in Venezuela. FAO's assistance has also aimed
at strengthening the member countries' Natural Disaster
Prevention, Preparedness, and Impact Mitigation Plans.
The Organization also assists in humanitarian crises such
as the plight of the Internally Displaced Persons (IDPs)
in Colombia, for which FAO is currently preparing an
updated appeal.
The assistance is provided through the distribution of
essential agricultural and fishing inputs such as seeds,
tools, fertilizer, pesticides and fishing gear, and in a
few cases through livestock restocking. In addition,
technical advice has been given through the recruitment
of international and national specialists, officers from
technical units at FAO Headquarters and Regional Offices,
and through the organization of workshops at both
national and regional levels.
Other "crises"
But the world is also increasingly faced with other
"crises". These relate to the quality and especially the
safety of food products, and to the impact of new
agricultural techniques, resulting mainly from rapid
advances in biotechnology. Recent problems facing
governments have included the "mad cow" crisis, the
presence of dioxins and listeria in the food chain, as
well as the marketing of products containing genetically
modified organisms.
This is an area where FAO will undoubtedly be called
upon to play a greater role. Public opinion, sensitized
by the media, wants objective information on possible
risks and requires effective measures of protection.
While such "crises" have occurred in developed countries,
they create concern for the authorities and the
populations of developing countries that do not have
sufficient capacity of analysis.
The Organization must continue to respond to these
challenges and demands. Its appropriate bodies, such as
the Commission on Genetic Resources, are actively working
on the drafting of codes of conduct. An
inter-departmental programme has been initiated to deal
with all technical aspects of the issues. The programmes
of the Joint FAO/IAEA Division of Nuclear Techniques for
Food and Agriculture will be reinforced to increase their
contribution in these areas. As for questions of ethics,
these are being examined by an internal committee
supported by a panel of experts. Finally, the Codex
Alimentarius remains the leading instrument for
determining international standards - a crucial activity
in a context of globalization and growing trade.
While recognizing the importance and urgency of these
issues, FAO must nevertheless concentrate on ensuring
that information provided is scientifically based and
established by internationally recognized experts.
State of food and agriculture in Latin America and
the Caribbean
Excellencies, Ladies and Gentlemen,
I wish now to focus on the Latin America and Caribbean
region. Despite its rapidly growing cities and booming
industry, agriculture plays an important role in growth
and development. As a provider of employment and source
of foreign exchange, it constitutes a vital component of
food security for all the inhabitants of the region.
Close to a quarter of the region's economically active
population works on the land or in agro-industries.
Agricultural products continue to earn almost 25 percent,
in 1998, of the region's export revenues; and the sector
has proven itself to be a dependable growth engine in bad
times as well as good, as agriculture has accounted for
over 7 percent of the region's total GDP over the last
decade.
The lagging effect of natural phenomena and the steep
fall of international prices translate into a projected
growth rate posted by the agricultural sector in 1999 of
2.2 percent for the region as a whole, moderately
higher than the 1.6 average of 1998 and the
1.9 average of 1997. Performance, however, was
highly uneven across countries.
The projected recovery for 1999 is marked by
significant improvements in Brazil and Mexico's
performance, which together account for close to 60
percent of the region's agricultural output.
After experiencing an average growth of 7 percent
in 1998, the agricultural sector of the Southern Cone
(Argentina, Chile, Paraguay, and Uruguay) is estimated to
have stagnated in 1999, growing at only 0.2 percent. This
result is related to the poor performance of Argentina's
agricultural sector.
The Andean countries (Bolivia, Colombia, Ecuador, Peru
and Venezuela) experienced negligible agricultural sector
growth in 1998 (0.3 percent). In fact, except for
Colombia and Peru, they experienced a contraction of the
sector.
The Central American countries' overall sector growth
remained practically unchanged from 1997 to 1998, at
2.1 percent. However, the countries hardest hit by
Hurricane Mitch suffered steep drops in agricultural
output.
In the Caribbean, traditional commodities were
particularly hard hit by hurricane damage in 1998, with
sugar output contracting by roughly 15 percent.
Similarly, banana production declined by an average of
around 6 percent despite moderate growth in the
countries belonging to the Organization of Eastern
Caribbean States.
Agricultural output now represents only
7.3 percent of the region's GDP. There are, however,
significant differences among the Andean and Southern
Cone countries, as well as Brazil and Mexico, where
agriculture represents less than 10 percent of the
economy, and the Central American and Caribbean
countries, where it is close to 20 percent.
The economically active population working in
agriculture has remained constant, at around 44 million,
during the last two decades. During the same period, the
total number of economically active people has increased
from 130 million to 217 million. Thus, agriculture
employs a decreasing proportion of the economically
active population, falling from slightly over one third
of all workers in 1980 to a little more than one-fifth
today.
Historically, the Latin America and Caribbean region
has enjoyed a positive and increasing net agricultural
trade balance, which in 1998 amounted to about
US$24 billion, a slight decline from the record
US$25 billion enjoyed in 1997.
For the region as a whole, the share of agricultural
exports as a percentage of total exports has shown a
declining tendency since 1987, dropping from
27 percent to a current level of around
23 percent.
Agricultural exports from Latin America and the
Caribbean represented around 12 per cent of the
world total in 1998
In relation to destination, in 1997 the European Union
surpassed the United States as the largest recipient of
primary agricultural exports from the region.
Intra-regional trade was also important, representing
almost 14 percent of total primary agricultural
exports.
Changes in agricultural production, which recorded a
rate of growth of 1.66 percent against
1.7 percent for population in the period 1990-1999,
closely mirror indicators of food security. The region as
a whole has experienced a modest decrease in the overall
number of its citizens suffering from undernourishment in
recent years (1990/92 to 1995/97), from 58.6 down to
53.4 million, after experiencing a substantial rise
in the previous decade. Only the Southern Cone subregion
has in fact experienced a decline in the number of
undernourished in recent years. Central America has seen
its number of undernourished increase while its
proportion has remained constant.
The Caribbean subregion has experienced an alarming
increase in the number and proportion of undernourished
people. In recent years, the number of undernourished in
the Caribbean has increased by 2 million, while the
proportion has gone from 25 to 31 percent. This can
mainly be attributed to the sharp deterioration of the
food security situation of Cuba and Haiti.
Challenges and opportunities for food and
agriculture in the region
Together with the macroeconomic successes in the
region, old challenges still persist and have even
increased: widening economic and social polarization,
concentration of income, and intergenerational
transmission of poverty. At the same time, the vicious
circle of poverty and deterioration of the natural
resources base continues to be one of the main problems
for the sustainability of development in the region. The
marginality suffered by an important part of the
population in wide areas of different countries hampers
their integration into market mechanisms and their access
to economic progress. It constitutes an obstacle to a
better territorial organization of development and to
political stability in the region.
There are currently an estimated 204 million
people living in poverty in Latin America, up from
200 million in 1990. Of these, 78 million live
in rural areas, representing 54 percent of rural
households. According to the latest available
information, eight countries in the region have reduced
hunger quickly and steadily enough to meet the goal of
halving the number of the world's undernourished people
set forth in the World Food Summit. But on a regional
level and with the business-as-usual scenario, the goal
will not materialize.
A stronger political will and decisive action are
therefore needed to reduce poverty, improve the food
security of low-income people, and promote sustainable
increases in agricultural productivity.
New mechanisms need to be put in place, notably in the
areas of rural finance, technological development and
agricultural input and output marketing, in the framework
of the required structural reforms. Innovative policies
that enhance the functioning of rural markets are also
required. Innovative approaches to risk management in
food production, distribution and consumption need to be
promoted.
It is vital to develop a new institutional framework
that allows for the different players to participate in
and contribute to the process of agricultural and rural
policy-making.
Parallel meetings to the Twenty-sixth FAO Regional
Conference
Mr. Chairman,
Excellencies, Ladies and Gentlemen,
I am pleased to point out that parallel to this
Twenty-sixth Regional Conference, two other main
gatherings of high relevance to the region have been
convened. The first is a forum for the regional
non-governmental organizations and civil society, while
the other is on intra-regional trade.
Non-governmental organizations play an important role
in the rural and agricultural development of our Members
Nations. The engagement of NGOs and civil society in the
World Food Summit was much valued and added to the
strength of the Plan of Action which in turn calls for
collaborative efforts from all sectors of society to
achieve the objectives set in Rome. Against this
background, FAO decided to organize the NGO/Civil Society
Consultation in parallel to its Regional Conferences with
the view of benefiting from these active players'
experiences in fields relevant to FAO's mandate and to
help the Organization formulate its policy and strategy
in cooperating with grassroots organizations. The
recommendations of the NGO/Civil Society Consultation
will be submitted to this body for consideration.
In conjunction with the Conference, there will be a
consultation on intra-regional trade in the Latin America
and Caribbean region. This consultation will focus on
major issues relating to the fostering of cooperation
among the countries of the region to facilitate trade to
bring about national agricultural development and food
security.
Agenda of the Regional Conference
Excellencies, Ladies and Gentlemen,
This Twenty-sixth Regional Conference will examine the
key issues relating to the fight against food insecurity
and vulnerability, international agricultural trade, and
technological change and sustainable development,
including institutional reform. The major issues on your
agenda include:
- The World Food Summit follow-up - in particular
the actions taken by FAO in its endeavours to support
the implementation of the seven commitments of the
Summit of November 1996 and the Summit Plan of Action
prior to the mid-term review which is scheduled for
2006.
- The impact of technical and non-tariff barriers on
agricultural trade in Latin America and the Caribbean
- in particular the progress made regarding the
reduction of tariffs at international level, and
especially within the Latin American and Caribbean
Region, and the growing importance of non-tariff
instruments as international agricultural trade
regulators.
- Effect of adverse climatological conditions on
food production and trade - in particular the need to
ensure prompt attention is given to the prevention and
mitigation of adverse natural phenomena.
- Reforms of rural development institutions - in
particular the asymmetry between demands on
agricultural sector institutions on the one hand, and
capacity and available resources on the other.
- Research and transfer of technology in food
production - in particular the main challenges for the
generation and transfer of viable, realistic and
sustainable technologies.
Excellencies, Ladies and Gentlemen,
Your Regional Conference will have to take up the
challenge of fighting hunger and poverty on the
continent. I therefore await the outcome of your
deliberations with great interest and wish you every
success in your work.
Thank you.
