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C. Indicative world plan for agricultural development (IWP)

138. The Conference had before it a Progress Report which (a) indicated the present status of the work (b) drew attention to the work program proposed for the 1968/69 biennium (c) reviewed some of the major methodological and organizational problems which had been encountered in the course of the work and the lines along which these were being dealt with, and (d) gave a preliminary indication of some major lines of emphasis emerging from the work so far.

139. The Conference also noted the Director-General's opening statement in which he placed great stress on (a) the importance of the contacts with Governments in the preparation of the Indicative Plan (b) the tentative nature of the provisional studies which would become available in 1968; and which would provide a basis for discussions, with governments of developed and developing countries, that should help materially in submitting a well considered Indicative World Plan to the 1969 Session of the Conference (c) the need for regarding the Indicative World Plan as a continuing activity which would be progressively improved, and (d) the necessity of continuing to take full advantage of the multidisciplinary approach which reflected the many facets of the Indicative World Plan and drew upon the wide range of expertise and accumulated knowledge in the Organization.

140. In his opening statement the Director-General drew attention to the fact that the Indicative Plan was one of the items singled out by the Program and Finance Committees as possibly requiring further budgetary increase in 1968/69 over and above the figures given in the Program of Work and Budget prepared when this undertaking was still in a very early stage. The Director-General stated that in the light of the present situation the Indicative Plan would require some supplementary financing from outside sources and/or savings if the necessary savings could be found; he emphasized, however, that any additional financing coming from savings would be made within the limits of the approved level of the budget.

141. The Conference noted that the importance of the Indicative World Plan had already been determined by the Thirteenth Session and expressed its continuing support of the objectives of the Plan as set out in the report of the Session.

142. Some delegations felt, however, that the work was on too ambitious a scale, particularly in relation to the time available. The view was expressed that the IWP was going into too much detail and it was felt that the Plan as undertaken could not be carried out by 1969 within the resources available to the Secretariat. Some delegations, while recognizing that the involvement of the subject matter Divisions in the work might have some benefits in promoting an interdisciplinary approach, expressed doubts as to whether this was the best way of going about producing an appropriate Plan.

143. On the other hand, some delegations considered that much had been accomplished, both in preparing a program which would be helpful to Member Governments and also in providing a focus for the work of FAO. Some delegations expressed their appreciation of the work so far carried out and hoped that eventually the IWP would provide more detailed guidance for their own countries. It was felt that the Indicative Plan on completion would give member countries a guide-line for their own planning and would make it easier for them to decide on the choices which they had to take with regard to the future. In the view of these delegations the work done under the Indicative Plan should also be an incentive and co-ordinating stimulus for the work of FAO and for the divisions of FAO that were involved in this type of work.

144. The Conference requested the incoming Director-General to review carefully the methodology and progress of the Indicative Plan, taking into account both the criticism and doubts expressed above by some delegations and the strong desire on the part of other countries that the work on the IWP should be carried forward with the same intensity of purpose and at as rapid a rate as possible.

145. The Conference was agreed that the value of the Indicative Plan would depend in great part on the extent to which the recommendations took due account of the integration of agriculture into the overall economy of the countries concerned, on the spirit of fruitful co-operation between the Organization and member countries and on the degree to which the Plan utilized the available information and on the extent to which it recognized and assisted the efforts of the developing countries to increase agricultural production. It therefore placed great emphasis on the importance of the fullest possible exchange of views with countries in the preparation of the Plan. Without this the Plan might be considered by some countries as an academic exercise. It welcomed the view of the Director-General that the main purpose of the provisional studies was to serve as a basis for such discussions and appreciated his intention to have extensive discussions with both developing and developed countries, and also with other international organizations, on the basis of these provisional studies before deciding on the final scope and contents of the documents to be placed before the 1969 Session of the Conference.

146. Some delegations expressed the hope that the technical and financial facilities would be accorded to the Indicative Plan in order that contacts with national governments and international organizations could be as direct and frequent as possible. In this connection the Conference heard from member countries in the Near East, which had already had an opportunity for direct contact with FAO on the basis of the provisional study for that region, that they had found these contacts particularly useful and that the visits had contributed positively to the planning process within the countries as well as giving a better understanding of the Indicative Plan itself.

147. The Conference noted with interest the announcement by the Delegation of the Netherlands that the additional sum of $500,000 which had been made available by the Netherlands Government to the Secretary-General of the United Nations to further the preparation of a global Development strategy included $100,000 to be allocated to the FAO Indicative World Plan for Agricultural Development to strengthen its activities. It also noted that the Director-General had already indicated to ECOSOC that the Indicative Plan would be FAO's contribution to the United Nations proposed program of Development for the 1970's.

148. Several delegations emphasized that the Indicative Plan would be justified to the extent to which it made available a more profound analysis, notably at the regional and even country level, of what was required to accelerate the rate of economic growth. It could not be a useful and effective instrument unless it was based on a realistic study of the production possibilities. Since the solution to the world food problem must lie mainly in increasing agricultural production in developing countries themselves, the assessment of the policies and measures required to achieve the results would constitute an extremely important part of the Indicative Plan.

149. At the same time the Indicative Plan should bring out as clearly as possible the situation which would develop by 1975 and 1985 if policies and trends were not changed. This would give a better idea of what was required to obtain the objectives which might be proposed in the Indicative Plan. The Conference therefore noted with satisfaction in the document before it that the Plan was being developed on two assumptions, one bearing a close relationship to past trends and recent performance, but taking account of factors which could modify these; and a higher assumption which would require a greater effort and better performance than had so far been achieved in most countries.

150. In conjunction with the more optimistic assumption, the Conference placed importance on the need to discuss possible changes in national policies which, if made, might have important repercussions on the Development prospects of other countries. In particular it noted that future expansion of agricultural trade would depend to a significant extent on policy decisions both on the part of developed and developing countries.

151. In the course of the discussion several delegations touched on a number of specific points:

152. In taking cognizance of the Director-General's statement regarding the financial requirements of the work in the next biennium, a number of delegations expressed the hope that in view of the importance of the Indicative Plan for the work of the Organization, and the guidance which it was hoped it would give to member countries, financial considerations would, as far as possible, not be allowed to be a limiting factor in the progress of the Plan. Other delegations stressed the need to keep an appropriate balance between the Indicative Plan and other work of the Organization. The requirements of the former should not mean that it had a free hand to draw liberally through forced savings on resources needed for other activities of FAO.

D. Inter-agency study of multilateral food AID

153. The Conference heard statements by the representatives of the Director-General and of the Secretary-General of the United Nations describing the background of the inter-agency program of studies, its present stage, and the direction in which the studies might be continued.

154. The inter-agency study of multilateral food aid was an expression of the increasing preoccupation of the international community with the failure to solve the food problem of the developing world. The inter-agency study had been formally initiated in response to a request contained in UN General Assembly Resolution 2096 (XX) of December 1965, to "examine, with a view to suggesting various alternative types of action .... the means and policies which would be required for large-scale international action of a multilateral character, under the auspices of the United Nations system, for combating hunger effectively..." The possibility of modifying and expanding multilateral food aid operations had been discussed in several bodies, including UNCTAD, the Intergovernmental Committee of the WFP, the FAO Council and CCP and ECOSOC.

155. Subsequently an outline for the study, prepared by the Director-General of FAO in consultation with other agencies concerned, had been examined by CCP and approved as the basis for the study by ECOSOC and the United Nations General Assembly. Both CCP and ECOSOC, desiring to have the earliest possible benefit of any substantive findings that emerged from the study, had asked for progress reports. FAO had co-operated actively, in consultation with other agencies, in the preparation of the Secretary-General's progress report to ECOSOC.

156. The Conference took note of the discussion that had taken place on the basis of the Secretary-General's progress report at the forty-third session of ECOSOC (July-August 1967), where the Director-General's progress report to CCP had also been available.

157. Several delegations reaffirmed the views they had expressed in the forty-second session of the CCP. The Conference took note of the report of CCP on this subject and agreed that there was urgent need to continue the inter-agency program of studies.

158. In considering the nature of the food problem of the developing countries, the Conference stressed that food aid was an interim solution, necessary to give the food deficit developing countries time to build up their own capacity to produce food or import it commercially. It was to this latter objective that the efforts of the international community had to be primarily directed, so that in the longer term the relative importance of food aid might again decline. Some encouragement could be derived from the recent recovery in the level of food production in a number of developing countries, and the anticipated slight rise in stocks held by the main grain exporting countries. Yet it had to be kept in mind that a significant acceleration in the general rate of growth of food production in developing countries required a persistent effort on an unprecedented scale. It was necessary to remain on guard against any complacency, as the basic situation had not yet changed.

159. The Conference emphasized that food aid efforts had to be closely related to other aid for economic Development, including financial aid and food production resources aid. Some delegations stressed the need for food aid to improve nutritional levels, particularly with a view to raising the protein intake levels of the more vulnerable population groups. There was need for this even in countries where the calorie intake had reached a satisfactory level. Others emphasized the role of food aid in emergency situations, even for countries which in normal years were self-sufficient in basic foods. Related to this was the use of food aid to help build up national food reserves for emergencies and other purposes.

160. The Conference agreed that the time had come to examine further the possible institutional arrangements for multilateral food aid in the light of changed circumstance, including the negotiation of the Food Aid Convention under the International Grains Arrangement of 1967. This Convention had set a precedent for multilateral procurement of food aid supplies, financed by both exporters and importers, in the context of an international commercial agreement. The Conference endorsed the suggestion of CCP that the Director-General and the Secretary-General of the United Nations should carry forward their analysis of institutional arrangements for expanded multilateral food aid, aiming at the use of the existing institutions, in particular the World Food Program. In this connection the Conference drew attention to the need for such institutional arrangements to provide for a satisfactory integration of food aid in the context of promoting economic Development.

161. The Conference recognized that FAO had a significant role to play in such co-ordination. The Organization was already studying the long-term food needs of the developing countries. The Conference took note of the suggestion made in the CCP that FAO should act as a focal point for assembling, analyzing and distributing information on bilateral and multilateral food aid operations, and of the Director-General's intention to explore ways in which this suggestion could best be implemented, in consultation with the governments concerned.

162. The Conference felt that it would be appropriate for FAO, in view of its experience based on the work of the CCP, to contribute guidance for an inter-agency approach to food aid activities within the United Nations system. The Conference recognized that with the disappearance of large surplus stocks of grains, the operation of expanded food aid programs called for some forward planning, to provide an early warning system of the emergence of shortages or surpluses, and to ensure the availability of the food aid supplies that might be needed, in terms both of quantity and commodity composition.

163. Some delegates pointed out that some governments were considering the necessity of increased production for food aid programs. Other delegates felt that it was premature to talk in terms of planned surplus production for food aid, as existing stocks in many developed countries were still greater than their financial ability to make them available to developing countries. Attention was drawn to the difficulties that certain developing countries were experiencing in disposing of exportable surpluses which had emerged as a result of the success of their efforts to raise domestic food production. With suitable financing such surpluses could be made available as food aid to food deficit developing countries. It was also stressed by some delegates that any further international approach to procuring supplies for food aid, to be meaningful, must take into account the capacity of the low cost exporters, both developed and developing. These delegates emphasized that any additional planned production for food aid should be limited to the assessed needs, and should not be permitted to give rise to a renewed accumulation of stocks.

164. In this connection the Conference took note of the ECOSOC debate on this subject and the suggestion that "a continuing appraisal and re-appraisal of the prospects of production, consumption and trade and possible requirements for food aid were essential." The Conference was informed of the Director-General's intention to start a pilot examination of ways in which regular medium term food outlook statements could best be prepared by the Organization and invited the CCP to consider definite proposals at its next session.

165. The Conference agreed that there was need for more examination of the relationships between food aid and other aid, as this important aspect had not yet been adequately covered in the progress reports. The Conference also agreed, as had been suggested by the Secretariat, that there was no need at the moment for further quantitative examination of the long-term food needs of the developing food deficit countries. Other subjects that were suggested by some delegations for possible further study included, in addition to those mentioned in the report of the Forty-Second session of CCP, the sources and levels of supplies for food aid; the impact of food aid activities on commercial markets of the products involved; individual country analysis of prospective food needs and food production potential, including the causes for differential growth rates in per caput food output and the period of time during which large scale food aid might be needed; terms and conditions of food aid; and financial aspects of food aid operations.

E. Food production resources program

166. The Conference discussed the report of the Council (C 67/LIM/3 and C 67/LIM/3-Corr. 1) on the Study on Food Production Resources in Agricultural Development (C 67/41). It considered that the Study had drawn attention to the strategic role of production resources in increasing food production in the developing countries.

167. The Conference endorsed the conclusion in the Study that the utilization of these requisites should increase substantially if the current unsatisfactory trend in food production was to be reversed. In this connection, the Conference stressed that the efficient use of production resources necessitated simultaneous and co-ordinated improvements in the economic and social environment. Particular attention was drawn to the need for adequate credit facilities, extension services and farmer training schemes, improvements to land tenure and price policies which provided an incentive to producers to increase their utilization of these requisites. It was noted that the cost of these requisites in developing countries had been an inhibiting factor to the expansion of their utilization. The Conference suggested that the Director-General might undertake, in co-operation with the industries concerned, a study on the structure of requisite prices in developing countries.

168. The domestic manufacture of requisites, particularly of fertilizers, has been rising in the developing countries. The Conference re-affirmed that for those countries where it was economically justified the ultimate solution was domestic production on the required scale. Every encouragement should therefore be given to expanding the flow of investment capital for the manufacture of these production resources in the developing countries themselves. Imported supplies should not be a disincentive to the establishment of such manufacturing units.

169. The Conference recognized that aid in the form of production resources would continue to be needed if utilization on the required scale was to be achieved and agreed that there should be a substantial expansion in such aid. Most of such aid would be provided under bilateral assistance schemes. Developing countries should therefore implement measures to establish the pre-conditions for the effective use of production resources and should in their bilateral aid negotiations request aid in this form in greater volume. It was noted that as a result of the growing response of their farmers to high-yielding varieties of crops, several developing countries had already achieved this pre-condition and had indeed to face the problem of a fast growing demand for production resources, particularly of chemical fertilizers.

170. Some delegations expressed the view that since the fertilizer industry in some developed countries was operating below capacity it would be easier for some of these countries to increase aid in fertilizers than in some other forms.

171. Regarding multilateral activity in this field, there was a division of opinion on the proposed FAO Food Production Resources Program. Some countries favored the extension of multilateral aid programs and urged the setting up of such a program in FAO. Others, on the other hand, did not support the establishment of a new multilateral program and preferred instead to support the intensification of existing programs being operated by the various multilateral agencies as well as of bilateral assistance programs.

172. The Conference stressed the merits of improved co-ordination and integration in the field of food production resource aid between bilateral aid programs and multilateral agencies. The special competence and responsibility of FAO in this field and in agricultural Development generally was recognized. The Conference recommended that FAO cooperate with already established machinery such as the aid consortia and consultative groups. It also urged that, where necessary, special groups should be established within the existing machinery to discuss the problems of agricultural Development and aid to this sector. This would contribute to the formulation and implementation of a consistent and coherent policy in the whole field of agricultural Development and would also enhance the effectiveness of aid.

173. The Conference adopted the following resolution:

Resolution No. 6/67

Food Production Resources

THE CONFERENCE

Considering that the massive increase required in food availability must in large measure come from substantial expansion in production within food deficient countries, which can most readily be achieved through the intensive use of material inputs and other measures leading to increased yields;

Welcomes the attention drawn to this question by the Director-General proposals for a Food Production Resources Program and the resulting study (C 67/41) prepared under the guidance of the ad hoc Committee;

Considers that the study is a valuable contribution to the analysis of the problems involved in increasing production, availability and effective utilization of food production resources in developing countries;

Recognizes that FAO is the international organization specifically enjoined by its Constitution to secure improvement in methods of agricultural production, is equipped to provide technical guidance and supervision, to draw attention to requirements, to assist in the identification and formulation of sound projects, to participate in the co-ordination of production resources aid, and to raise the absorptive capacity of the developing countries to use these production resources effectively;

Recommends that it is urgently desirable to take all appropriate measures to increase the flow to and utilization in developing countries of food production resources;

Invites:

(Adopted 23. 11. 67)

F. World food program

174. The Conference had before it a draft resolution submitted by the Forty-Eighth Session of the FAO Council regarding the establishment of a target of $200 million for the World Food Program for the period 1969-70. It noted that an identical resolution had been submitted by ECOSOC to the General Assembly.

175. The Conference received a statement from the Executive Director of the World Food Program reviewing its operations to date and drawing attention to the possible impact on the Program of certain important issues arising out of the new Food Aid Convention and possibly out of the Study on Multilateral Food Aid, or out of any future developments on food production resources.

176. It heard a statement on behalf of the Director-General on the discussions at the Twelfth Session of the Intergovernmental Committee of the World Food Program with particular reference to the handling and scope of emergency food aid, and on the co-ordination that would be required if the World Food Program were to be involved in the operation of any expanded food aid program.

177. A statement was also made on behalf of the Secretary-General of the United Nations conveying the continuing interest of the United Nations in the activities of the World Food Program, which covered a wide range of projects for economic and social Development.

178. The Conference noted with satisfaction that the Program was making an efficient contribution, through the use of food aid as capital, toward the economic Development of countries in many parts of the world, as well as providing emergency food relief.

179. It expressed the hope that contributions would be made available by both developed and developing countries at a level sufficient to meet the proposed target of $200 million for the period 1969/70. Several donor countries indicated that they were planning to announce substantially increased pledges at the forthcoming Pledging Conference, and hoped that other countries would do likewise.

180. The Conference noted that a few countries had already indicated their intention to channel through the WFP a part or all of their contribution under the Food Aid Convention. It expressed the hope that other participants in the Convention would give every consideration to making maximum use of the World Food Program, and that in all cases additional cash contributions would be made to the Program to cover transportation and administrative expenses.

181. The Conference noted that the practical issues connected with any WFP role in the implementation of the Food Convention would be reviewed by the Intergovernmental Committee. Broader questions of the role of other institutions and their co-operation with the WFP in operations based on any great increase in its resources, would be covered in the further analysis of institutional arrangements for expanded multilateral food aid being undertaken in the next stage of the Inter-Agency Study on Multilateral Food Aid.

182. The Conference adopted the following resolution:

Resolution No.7/67

World Food Program

THE CONFERENCE

Recalling the provisions of Resolution 4/65 that the World Food Program is to be reviewed before each Pledging Conference and that, subject to the review so provided for, the next Pledging Conference "should be convened in 1967, at which time governments would be invited to pledge contributions for 1969 and 1970, with a view to reaching such target as may be recommended by the General Assembly and the Conference of the Food and Agriculture Organization";

Noting that a review of the Program was undertaken by the Intergovernmental Committee of the World Food Program at its Eleventh Session and by the Council at its Forty-Eighth Session;

Having considered resolution 5/48 of the Council, as well as the recommendation of the Intergovernmental Committee and the report of the Executive Director;

Recognizing the value of multilateral food aid both as a form of capital investment and for meeting food needs:

(Adopted 23.11.67)

G. Freedom from hunger campaign

Progress report on the campaign
International rice year
Collaboration with the united nations international year for human rights
Plans for the second world food congress

Progress report on the campaign

183. The Conference considered the progress of the FFHC as outlined in documents C 67/19., C 67/19 Add.1 and Add.2., C 67/19 Corr. 1. It also received the report and recommendations of the Third FFHC Conference held at FAO Headquarters from 30 October to 3 November 1967. (C 67/LIM/34)

184. The Co-ordinator of the FFHC presented the introductory statement on behalf of the Director-General referring to the achievement of the information and education programs in the early stages of the Campaign and the move in the second stage to the building up of National FFHC Committee and the beginnings of long-term private voluntary action to fight hunger. A major innovation of the Campaign had been this involvement of non-governmental bodies in Development programs and their investment in long-term projects.

185. The statement also drew particular attention to the Young World Appeal and to the Young World Food and Development Project, paid tribute to the vigorous response which had been received from young people, referred to the establishment of the FAO Industry Co-operative Program, to plans for the Second World Food Congress in 1969, and a draft Declaration of the Conference for the United Nation's International Year for Human Rights.

186. The Conference expressed appreciation for the progress of the Campaign and gave its full support to the program proposals outlined in the Director-General's introductory statement and report. It also welcomed evidence of the broadening of Campaign activities and expressed the hope that the Director-General would continue to encourage and strengthen Campaign initiatives. It was recognized that FFHC was important as a dynamic component of FAO's program and as a means of reinforcing government programs.

187. Delegates made frequent reference to the great value of the education and information work of the Campaign. It was agreed that their role in developed countries must be to keep the public continually aware of the need for greater assistance to developing countries. In developing countries the first task was to make people aware of the causes of malnutrition and under-Development so that the necessary skills for dealing with these problems might be introduced more rapidly, and to encourage voluntary activities and programs by the people aiming at increased production.

188. Several delegates said that they felt that the Co-ordinator should make a general survey of the progress of the Campaign and its problems in a number of developing countries in order to establish the right pattern for the Campaign to enlist the help which would ensure better success in Campaign activities. In this regard it was repeatedly stressed that effective national committees were essential as the focal point for Campaign activity. There were also several references to the importance of studying the best methods of developing Campaign activities on a Regional basis.

189. A number of speakers drew attention to the value of the many different kinds of contribution which non-governmental organizations had made to the Campaign and the importance of ensuring proper machinery for close cooperation between these non-governmental organizations and FFHC at both the international and the national level. The Conference recognized the importance of coordination of FFHC activities with other international programs such as UNCTAD, UNDO, Unesco, ILO and WHO.

190. The Conference welcomed particularly reports of the success of the Young World Appeal and agreed that its progress and activities ought to be progressively strengthened. Delegations stressed the critical need for increased emphasis on youth involvement as a contribution to national Development needs. The problems of providing education, training, employment and reasonable living standards for rural youth were stressed and the importance of Young World Appeal action in this context was generally recognized. It was also agreed that the Young World Appeal was important as a means of establishing working relationships between rural and urban youth, and of giving a production-orientated outlook to education in the developing countries.

191. The Conference emphasized the particular importance of providing support for small farmers. The need for increased inputs, particularly of small farm implements, seeds, fertilizers, insecticides, and similar items, was generally recognized and it was felt that this type of activity was particularly suitable for FFHC support.

192. The Conference welcomed the links which were established with industry through the FAO/ industry Cooperative Program and agreed that this type of operation could make a substantial contribution to meeting the needs of developing countries for greater investment, particularly in industries related to agriculture.

193. Several delegates expressed the view that the Report of the Third FFHC Conference offered excellent guidelines for the future operation of the Campaign

International rice year

194. The Conference received a final report (document C 67/20) on the activities carried out during the International Rice Year which had been declared during 1966 by the Director-General within the general framework of the Freedom from Hunger Campaign, in accordance with the request of the Conference at its Twelfth Session.

195. It noted that over 35 Member Governments had organized special activities, mainly designed to increase production. A series of technical publications had been issued and several films on rice produced, and there had also been a number of national and international technical meetings on rice problems. Several countries had arranged international fellowships for rice research workers. The Conference also noted that the FAO Secretariat had organized supporting activities in many fields.

196. The Conference was informed that the reports received from participating Member Governments indicated that the activities arranged as a contribution to the International Rice Year had acted as a stimulus to national programs for raising productivity and fostered the exchange of up-to-date knowledge of rice problems and the means to combat them.

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