18. It is customary to preface programme-budget proposals with an exposition of the main external and internal factors which have influenced their formulation. It may be noted that a thorough analysis of trends and forces bearing on FAO's mandate and programmes, as well as an assessment of internal strengths and potential weaknesses, as may impact on its implementation capacity, were carried out in connection with the preparation of the Strategic Framework 2000-2015. As the results of these analyses largely transpire in the latter document, they do not appear here to avoid unnecessary repetition.
19. As stressed in the Director-General's Introduction, until the Strategic Framework is formally endorsed by the Conference, the proposed longer-term strategic objectives could not be used as authority for the Programme of Work and Budget proposals. However, at the beginning of each major programme, under Chapter 2, Technical and Economic Programmes, a section on medium-term Objectives and Priorities has been included. This section reflects a preliminary statement of objectives from the concerned departments in the absence of a Medium Term Plan. It will be recalled that the submission of a Medium Term Plan was suspended by the Council until the next version for the period 2002-07, to be issued in the year 2000.
20. As also stressed in the Introduction, until the stage of the Summary, the proposals were very much conceived in terms of consolidation after the rather difficult period of the last three biennia, involving restructuring and downsizing at the same time. Even in the current 1998-99 biennium, the Organization had to face the abolition of a substantial number of posts and, inevitably, the separation of many long-serving staff (about 120) and the loss, through attrition, of many more. The 2000-01 biennium should indeed witness consolidation of progress so far in streamlining the Organization, reinforcing the integration of the programmes of Headquarters with those of the decentralized offices and the completion of the major overhaul of its administrative and financial systems. However, further rationalization measures are outlined in this document, the early implementation of which would become inevitable depending on the total resources made available, in order to safeguard FAO's technical capacity.
21. Finally, the advice of the Technical Committees of the Council at their 1999 sessions, in particular that of the Committees on Agriculture (COAG), Fisheries (COFI) and Forestry (COFO) and, to a lesser extent, the Committees on World Food Security (CFS) and on Commodity Problems (CCP) was duly taken into account. These Committees in general, and the associated ministerial meetings on fisheries, forestry, and Small Island Developing States (SIDS) called for a significant strengthening of FAO's action in a large number of substantive areas. To this guidance must be added the recommendations of the FAO Regional Conferences held in 1998. While naturally focusing more on region-specific concerns and attendant priorities for assistance, the sum total of these recommendations would again translate into a substantial additional workload. It was not possible to give justice to all these expectations under ZRG, and even more so, under ZNG conditions.
22. This document embodies a significant departure from its predecessors in terms of the basic components of the programme structure, as the result of the new programming approach endorsed by FAO Governing Bodies.
New Terminology
23. It is recalled that the new programming approach applied in this document to all Regular Programme activities under Chapter 2 and Major Programme 3.1 involves three types of entities; replacing the old terminology of sub-programmes and programme elements:
Technical Projects (TPs)
24. These have the following general characteristics:
Continuing Programme Activities (CPs)
25. These vary from the above technical projects primarily because they encompass activities of an ongoing nature that are not amenable to time-bound objectives (e.g. collection of statistical time series). The following characteristics apply to this type of programme entity:
Technical Services Agreements (TSs)
26. This third type of entity is designed to cover demand-oriented services such as advisory services to Members or technical support to field projects. It can also include servicing of regular meetings.
Application of Criteria
27. One of the key aspects of the new programming approach is to apply systematically criteria to the determination of priorities. Each TP and CP is rated on a scale of one to five, where five is the maximum score.
28. These criteria are based upon those originally established by the Council at its Hundred and Eleventh session, bearing in mind the practical guidance subsequently given by the Programme Committee. The criteria used by all technical departments in developing the entities included in the document are as follows:
Progress in Implementation
29. From the pilot experiment in the Programme of Work and Budget 1998-99, the application of the new programming approach has been vigorously pursued in all substantive areas. However, due to its inherent complexity, the implementation status by mid-1999 is very much to be considered as "work in progress". In order to avoid a confusing mix of sub-programmes and programme elements (i.e. the old terminology) and programme entities under the new approach, programme managers were asked to articulate their proposals based on a complete set of new entities, at least in summary form, even where full-fledged application had not yet reached maturity. Hence, detailed projects and continuing programme activities have been developed for about half of the total, whereas the balance remain in more summary form and will be analyzed with the required detail for inclusion in the next Medium Term Plan to be issued in the year 2000. Nevertheless, in every case, objectives for the medium term have been defined and are as stated in the document.
30. While the underlying detail has undergone a major transformation, the pre-existing programme structure remains largely unchanged at the Chapter, Major Programme and Programme levels, subject to the following modifications:
31. Within Major Programme 2.2, Food and Agriculture Policy and Development, modifications have been introduced for two programmes. Programme 2.2.3, Food and Agricultural Monitoring, Assessments and Outlooks, previously entitled Agricultural and Economic Development Analysis, has been refocused on short-, medium- and long-term situation and outlook analyses on food, agriculture, commodity markets and trade, and food security at national, regional and global levels. Programme 2.2.4, Agriculture, Food Security and Trade Policy, previously entitled Food and Agricultural Policy, has been broadened to cover all work on policy issues in agriculture, food security and trade, identified both within and outside FAO, with partners such as the World Bank (WB), the World Trade Organization (WTO) and the International Food Policy Research Institute (IFPRI).
32. Within Major Programme 2.4, Forestry, a new Programme 2.4.4, Forest Programmes Coordination and Information, has been created. It will focus on information collection, analysis and dissemination both of the technical data related to forestry and of forestry-related analytical information concerning the United Nations Conference on Environment and Development (UNCED) follow-up entrusted to FAO. The programme will also cover support to meetings of forestry statutory bodies and to coordination with decentralized offices.
33. Chapter 3, previously entitled Development Services to Member Nations, has been retitled Cooperation and Partnerships to reflect better the underlying thrust of constituent activities. Similarly, Programme 3.5.2, previously entitled Private Sector, NGOs and Support to Food-for-All Fora, has been renamed Civil Society Awareness and Partnerships.
34. Within Programme 5.1.1, Public Information and Publications Support, activities have been consolidated into three sub-programmes: 5.1.1.3 Multimedia Production, 5.1.1.4 Publishing Policy & Support, and 5.1.1.5 Media Relations. These changes, in fact, align the programme structure with the new organizational structure of the Information Division (GII).
35. Programme 5.2.2, Information Systems and Technology Services (previously Computer Services) has been broadened in scope to include telecommunications, in line with the transfer of all telecommunications responsibilities to the Information Systems and Technology Division (AFI). This change has been accompanied by a transfer of resources hitherto budgeted under Programme 5.2.2 and Chapter 6 into the Information Technology (IT) pool account, which is distributed across all programmes.
Substantive Priorities - An Overview
36. In general, the ZRG scenario was framed to maintain momentum of action under established priorities for Chapter 2, Technical and Economic Programmes, and Major Programme 3.1, Policy Assistance - the core of FAO's substantive output. The wholesale application of the revised programming approach to these areas should hopefully convey that proposed activities are being formulated and presented in more specific terms, thereby meeting expectations of sharper focus from the Governing Bodies. An overview of substantive priorities is given below, while the ZRG scenario is fully developed in the Programme Budget section.
37. Major Programme 2.1, Agricultural Production and Support Systems, will continue to make essential contributions to the Special Programme for Food Security (SPFS) and both components of the Emergency Prevention System (EMPRES) for Transboundary Animal and Plant Pests and Diseases. It will pursue the development of agreements and regulatory frameworks for genetic resources for food and agriculture, as it is host to the Secretariat of the Commission on Genetic Resources for Food and Agriculture (CGRFA); as well as work on other normative instruments such as the implementation of the International Plant Protection Convention (IPPC) and the Prior Informed Consent (PIC) procedure for pesticides. Its traditionally strong practical orientation will be served by, among many other examples, the ongoing support to the Integrated Pest Management (IPM) Facility, the Soil Fertility Initiative and its work on emerging sectors, i.e. biotechnology, organic agriculture and urban and peri-urban agriculture.
38. Major Programme 2.2, Food and Agriculture Policy and Development, is being rearranged (cf. Programme Structure above) to achieve greater coherence and improved understanding of underlying activities. Among the important analytical and standard-setting areas it covers, such acronyms or abbreviated expressions as WAICENT, the GIEWS, FIVIMS, Codex, SOFA, AT 2015/30 have come to symbolize priorities that have been consistently supported by the membership, together with other established priorities such as the collection and dissemination of statistics, nutrition assessments, monitoring of the implementation of the World Food Summit (WFS) Plan of Action and support to Multilateral Trade Negotiations (MTN).
39. Major Programme 2.3, Fisheries, will give due prominence to the implementation of the Code of Conduct for Responsible Fisheries and other recent international fishery instruments. This will be accompanied by further contributions: to improve the information base for the formulation of fisheries policy and programmes, including comprehensive assessments of resources; to promote effective and sound technologies for marine and inland fisheries and aquaculture; to assist Members with forecasting emergencies and disasters; and to support inter-country cooperation, including norms-setting.
40. Major Programme 2.4, Forestry, will seek to maintain FAO's role in supporting the international dialogue and specific initiatives related to the sustainable management and conservation of forest and tree resources. In this light, three goals are specified in the draft FAO Strategic Plan for Forestry, i.e.: 1) to maximize the contribution of trees and forests to sustainable land use, food security and to economic and social development and cultural values at national, regional and global levels; 2) to ensure the conservation, sustainable management and improved utilization of trees and forest systems and their genetic resources; and 3) to foster increased worldwide access to reliable and timely forestry information. They led to a number of medium-term objectives (cf. narrative under Major Programme 2.4).
41. Finally, Major Programme 2.5, Contributions to Sustainable Development and Special Programme Thrusts, will continue to spearhead FAO's work on sustainable development, taking account of follow-up to the World Food Summit (WFS), the United Nations Conference on Environment and Development (UNCED) and associated conventions on natural resources management and conservation. It will also aim to mainstream into FAO's technical work, the concerns and recommendations expected by other major international summits and conferences, including the Fourth World Conference on Women, the Social Summit and the International Conference on Population and Development. It will continue to provide policy inputs to the work of the Consultative Group on International Agricultural Research (CGIAR).
42. Major Programme 3.1 is to continue to provide or catalize support to policy formulation in Member Nations. It may also be noted that the provision for direct support to the Special Programme for Food Security (SPFS) in Low-Income, Food-Deficit Countries (LIFDCs), and TCP are maintained at current levels in real terms.
Adjustments to Organizational Structures in the Administrative Areas
43. The ZRG scenario also includes measures to adjust organizational arrangements in the administrative areas at Headquarters. These were not yet reflected in the Summary Programme of Work and Budget, but were referred to in the Supplement to that document submitted to the June 1999 Council. It had originally been planned to put these into effect progressively in the light of experience with the new computerized systems, but given prevailing budgetary constraints, it is necessary to bring forward the implementation of related adjustments to administrative procedures and organizational arrangements. A prime motivating force was the natural desire to maximize efficiencies, taking account of the implementation of a new generation of corporate financial and administrative systems. Beyond that, the substantial savings so generated and incorporated in ZRG permit the correction of a number of instances of serious under-budgeting which remained at the stage of finalization of Summary proposals (e.g. communication costs with decentralized offices) and a more fitting response to the strong desire of the membership to see an improved language balance in the work of FAO (cf. below).
44. The rationale of the restructuring measures lies in the fact that up to the present time, administrative workload in support of the Organization's activities at Headquarters has been shared between central units in the Administration and Finance Department (which primarily ensure overall consistency and guidance) and Management Support Units (MSUs), in the various departments (which prepare and post the bulk of administrative transactions in corporate systems). However, the introduction of Oracle-based and associated systems in replacement of FINSYS - and in a second phase of PERSYS - represents a major development which significantly affects working arrangements in the administrative areas.
45. In particular, easier access by non-specialized staff and enhanced reporting capacities are key features of the Oracle-based corporate systems. They greatly influence the search for optimal distribution of administrative tasks, and thus provide an opportunity to make significant economies. This involves the transfer of much of the Headquarters MSU staff to a central management support structure, as indicated in the general Organization Chart at the back of this document. The full details are still being worked out, but a potential saving target of US$ 7 million has been assumed from the implementation of these new arrangements under ZRG.
46. It is worth stressing that a small unit would remain in the Assistant Directors-General's (ADGs) offices to assist the senior management of each concerned department with programme, planning and coordination.
47. As underlined in the Director-General's Introduction, the above operation is not devoid of risks, in view of the limited operational experience with the Oracle system so far. Ideally, it would have been preferable to wait until the Programme of Work and Budget 2002-03, before making adjustments to structures and attempting to capture the anticipated savings. However, this risk was deemed preferable to undermining the technical outputs of the Organization in the light of pressing requirements and the expectations from the membership.
Measures to Improve Language Balance
48. The issue of language balance, more precisely of how to redress a perceived deterioration in the recent past, has attracted attention in the Programme and Finance Committees and the Council.
49. In this connection, the guidance of the Council at its last June 1999 session bears recalling. The Council unanimously reaffirmed the principle of equality of FAO languages and emphasized that priority should be given to this matter. It also: a) emphasized that appropriate resources be allocated in the Programme of Work and Budget 2000-01 under each budget option, in order to reduce the present imbalance in the use of languages of the Organization; b) requested supplementary information concerning resource allocations in support of language policy in FAO in previous biennial budgets, in the proposed Programme of Work and Budget 2000-01 and in the long term; c) specifically singled out areas for improvements in essential normative activities; d) underlined that FAO staff should take a more pro-active attitude to ensure a more balanced use of FAO languages, supported by training programmes and attention to linguistic skills at recruitment stage; e) recognized that adequate language balance depended on working arrangements within the Secretariat, appropriateness of rules to reach the objectives, and suitable systems for monitoring; and f) emphasized the importance of linguistic capabilities of senior staff in FAO languages and their effective use within the Secretariat.
50. As requested by the Council, it is useful to place in historical perspective the efforts made to improve language coverage in the publications programme for the biennium 2000-01 under the present ZRG scenario.
| Language | 1994 | 1995 | 1996 | 1997 | 1998 | 2000-01 |
| Arabic | 2.9% | 3.0% | 5.1% | 5.2% | 4.4% | 6.1% |
| Bilingual | 2.1% | 1.5% | 2.0% | 3.0% | 4.0% | 3.6% |
| Chinese | 3.9% | 2.3% | 5.9% | 2.2% | 2.0% | 2.4% |
| English | 33.0% | 37.8% | 35.4% | 44.8% | 46.8% | 40.6% |
| French | 26.1% | 23.1% | 23.8% | 18.8% | 17.8% | 20.1% |
| Multilingual | 1.2% | 1.2% | 0.3% | 0.8% | 1.0% | 1.0% |
| Spanish | 22.6% | 24.0% | 17.6% | 17.1% | 13.8% | 18.6% |
| Trilingual | 8.1% | 7.2% | 8.8% | 7.3% | 9.8% | 6.8% |
| Other | 0.2% | 0.0% | 1.1% | 0.8% | 0.3% | 0.8% |
51. As can be seen from the table, publication production in French, Spanish, Arabic and Chinese shows improvement at the expense of English following a period of decline in coverage brought on by the severe budget reductions in 1996-97. In addition, the figures for Chinese will improve when the outputs derived from the special provision for additional Chinese titles are taken into account.
52. The following graph and table illustrate similar efforts to improve language coverage as regards documentation for meetings (which mirrors closely the spread of interpretation services).
| Language | 1996 | 1997 | 1998 | 1999 | 2000 | 2001 |
| Chinese | 7% | 10% | 6% | 12% | 8% | 15% |
| Arabic | 10% | 13% | 11% | 15% | 10% | 16% |
| Spanish | 19% | 18% | 23% | 20% | 21% | 20% |
| French | 26% | 22% | 26% | 23% | 23% | 23% |
| English | 38% | 36% | 35% | 29% | 38% | 27% |
53. Beyond the planned gradual improvements described above in language coverage of documents and meetings, additional measures are programmed in the ZRG scenario, as follows:
Allocation of Incremental Resources
54. Incremental resources of US$ 1.6 million are included under the new programme entity 222P5, Programme for the Improvement of Language Coverage. This amount will be administered by the General Affairs and Information Department (GI) under the policy guidance of the Corporate Communication Committee (CCC). These additional resources will be applied to fund such actions as:
N.B. Considerably greater improvements would be possible under the RG scenario set out towards the latter part of this section, as a further US$ 4.1 million is proposed there to improve language coverage.
Improved Financial Arrangements
55. The internal multilingual editorial services pool is proposed to be eliminated and to be replaced by a centrally-managed provision in the Information Division (GII). This should remove the cost constraints which may have inhibited FAO units from fully utilizing these services for their publications, and lead to improvement in the quality and content of the various language versions.
Other Steps
56. Two P-2 Translator posts are to be added to the translation teams to reduce the high ratio of translation work by external contractors versus staff (i.e. 65 percent in French and Spanish). This would reduce the percentage to 50 percent in these two languages, thereby improving quality of output without impact on the budget.
57. Two posts (i.e. one Arabic-language Editor and one French-language Production Clerk) are to be established to strengthen capacity to produce the relevant language versions of Cerestronic, which had previously been handled on an ad hoc or temporary basis. Specific measures to meet other recommendations of the Council (e.g. as relate to working arrangements in the Secretariat and improvement of language skills of staff) are under active study by the Personnel Division (AFP). In addition, interested countries will be approached to determine whether they might be prepared to provide support in language-related areas.
58. The issue of language use in FAO will be kept under review by the Corporate Communication Committee to ensure that all departments contribute to improving language coverage in the substantive activities of the Organization. Progress in this area will be reported regularly to the Governing Bodies through the Programme Implementation Report (PIR), as recommended by the 81st session of Programme Committee.
59. In summary, ZRG includes improved language coverage in the biennial programme of publications and meetings, a special fund to stimulate additional language coverage, and improved staffing arrangements for translation and multilingual editorial work. By these means, tangible progress should be achieved in this important aspect of FAO's work.
60. The distribution of resources under the ZRG scenario is described first in terms of the overall Programme of Work (i.e. the gross budget including resources from Other Income) and then in terms of the net Regular Budget Appropriation.
Allocation for the Programme of Work
61. The proposed overall resource allocation for the Programme of Work is shown by major programme and chapter in the following table:
Proposed Overall Resources Allocation for the Programme of Work (ZRG before Cost Increases) |
||||
(All amounts in US$ 000) |
||||
| Major Programme and Chapter | Description | 1998-99 Programme of Work | Programme Change | 2000-01 Programme of Work |
| 1.1 | Governing Bodies | 18 046 | (513) | 17 533 |
| 1.2 | Policy, Direction and Planning | 22 272 | 981 | 23 253 |
| 1.3 | External Coordination and Liaison | 12 637 | 152 | 12 789 |
| 1.9 | Programme Management | 756 | 23 | 779 |
| Chapter 1 | General Policy and Direction | 53 711 | 643 | 54 354 |
| 2.1 | Agricultural Production and Support Systems | 89 835 | 139 | 89 974 |
| 2.2 | Food and Agriculture Policy and Development | 87 943 | 1 049 | 88 992 |
| 2.3 | Fisheries | 39 826 | (80) | 39 746 |
| 2.4 | Forestry | 31 142 | (406) | 30 736 |
| 2.5 | Contributions to Sustainable Development and Special Programme Thrusts | 53 906 | (407) | 53 499 |
| Chapter 2 | Technical and Economic Programmes | 302 652 | 295 | 302 947 |
| 3.1 | Policy Assistance | 25 680 | 561 | 26 241 |
| 3.2 | Support to Investment | 50 504 | (2 945) | 47 559 |
| 3.3 | Field Operations | 33 482 | (7 898) | 25 584 |
| 3.4 | FAO Representatives | 66 341 | (569) | 65 772 |
| 3.5 | Cooperation with External Partners | 8 600 | 366 | 8 966 |
| 3.9 | Programme Management | 2 308 | (1 355) | 953 |
| Chapter 3 | Cooperation and Partnership | 186 915 | (11 840) | 175 075 |
| 4.1 | Technical Cooperation Programme | 87 259 | (205) | 87 054 |
| 4.2 | TCP Unit | 2 188 | 205 | 2 393 |
| Chapter 4 | Technical Cooperation Programme | 89 447 | 0 | 89 447 |
| 5.1 | Information and Publications Support | 14 073 | 2 659 | 16 732 |
| 5.2 | Administration | 53 033 | (3 720) | 49 313 |
| Chapter 5 | Support Services | 67 106 | (1 061) | 66 045 |
| 6.0 | Common Services | 45 557 | (480) | 45 077 |
| Chapter 6 | Common Services | 45 557 | (480) | 45 077 |
| 7.0 | Contingencies | 600 | 0 | 600 |
| Chapter 7 | Contingencies | 600 | 0 | 600 |
| Total | 745 988 | (12 443) | 733 545 | |
62. It is recalled that the Programme of Work depends on resources from several origins. Besides the Regular Budget Appropriation funded by assessments on Members and from Miscellaneous Income, there are resources from Other Income, including reimbursements for both technical and administrative support services, and contributions from partners to jointly funded activities e.g., World Bank (WB), International Financing Institutions (IFIs), World Health Organization (WHO), etc. It follows that the allocations for the Programme of Work for any one chapter or major programme can vary as a result of factors other than the contributions from the Regular Budget Appropriation.
63. The overall reduction in the Programme of Work apparent in the preceding table, is entirely due to lower levels of Other Income, i.e. due to thee key factors:
| US$ million | |
| � Decline in forecast support cost income (administrative and technical) consequent on the lower forecast for field programme delivery in 2000-01 versus the assumption in the 1998-99 Programme of Work and Budget | 7.9 |
| � A reduction in the expected level of resources from the World Bank and other IFIs, largely because the level foreseen in the 1998-99 budget did not eventuate | 2.7 |
| � Reduction in the level of services sought by WFP and other items | 1.8 |
64. The shifts in resources between chapters and major programmes are fully explained in the main Programme Budget section. The following is, therefore, a summary of the major shifts:
Distribution of the Proposed Appropriation
65. The following table highlights the resulting changes in terms of distribution of the Appropriation by major headings. The principal difference with the preceding table on the Programme of Work is the change in income. In addition, this table shows the impact of cost increase adjustments.
66. While most of the movements are self-evident from the explanations given above, the decline under Major Programme 3.4, FAO Representatives, warrants further explanation. This reflects the redistribution of income arising from Project Servicing Costs and other Administrative and Operational Support Services as already described in the Explanatory Notes above.
| Proposed Allocation for the Appropriation (ZRG after Cost Increases) | |||||
(All amounts in US$ 000) |
|||||
| Major Programme and Chapter | Description | 1998-99 Budget | Programme Change | Cost Increases | 2000-01 Budget after Cost Increases |
| 1.1 | Governing Bodies | 18 046 | (513) | 539 | 18 072 |
| 1.2 | Policy, Direction and Planning | 19 353 | 1 370 | (198) | 20 525 |
| 1.3 | External Coordination and Liaison | 12 204 | 152 | 471 | 12 827 |
| 1.9 | Programme Management | 756 | 23 | 34 | 813 |
| Chapter 1 | General Policy and Direction | 50 359 | 1 032 | 846 | 52 237 |
| 2.1 | Agricultural Production and Support Systems | 88 344 | 386 | 1 482 | 90 212 |
| 2.2 | Food and Agriculture Policy and Development | 86 612 | 906 | 755 | 88 273 |
| 2.3 | Fisheries | 39 167 | (80) | 198 | 39 285 |
| 2.4 | Forestry | 30 310 | (295) | 177 | 30 192 |
| 2.5 | Contributions to Sustainable Development and Special Programme Thrusts | 48 473 | (195) | 185 | 48 463 |
| Chapter 2 | Technical and Economic Programmes | 292 906 | 722 | 2 797 | 296 425 |
| 3.1 | Policy Assistance | 22 322 | 3 101 | 1 256 | 26 679 |
| 3.2 | Support to Investment | 20 209 | 336 | (901) | 19 644 |
| 3.3 | Field Operations | 3 703 | 1 102 | 637 | 5 442 |
| 3.4 | FAO Representatives | 64 321 | (7 248) | 6 851 | 63 924 |
| 3.5 | Cooperation with External Partners | 5 501 | 1 248 | 61 | 6 810 |
| 3.9 | Programme Management | 1 973 | (1 219) | 17 | 771 |
| Chapter 3 | Cooperation and Partnership | 118 029 | (2 680) | 7 921 | 123 270 |
| 4.1 | Technical Cooperation Programme | 87 259 | (205) | 2 064 | 89 118 |
| 4.2 | TCP Unit | 2 188 | 205 | 5 | 2 398 |
| Chapter 4 | Technical Cooperation Programme | 89 447 | 0 | 2 069 | 91 516 |
| 5.1 | Information and Publications Support | 14 073 | 2 659 | 259 | 16 991 |
| 5.2 | Administration | 43 423 | (1 352) | 581 | 42 652 |
| Chapter 5 | Support Services | 57 496 | 1 307 | 840 | 59 643 |
| 6.0 | Common Services | 41 163 | (381) | 383 | 41 165 |
| Chapter 6 | Common Services | 41 163 | (381) | 383 | 41 165 |
| 7.0 | Contingencies | 600 | 0 | 0 | 600 |
| Chapter 7 | Contingencies | 600 | 0 | 0 | 600 |
| Total | 650 000 | 0 | 14 856 | 664 856 | |
67. Under the preceding ZRG scenario, due attention was given to accommodating the guidance of the Council, the Programme Committee, the Technical Committees and associated ministerial meetings, and the Regional Conferences. However, it is worth stressing again that the unusually high number of recommendations which imply the application of additional resources to specified priorities, could not be fully responded to. Therefore, in several high priority areas, substantial additional resources would be justified but cannot be allocated unless the membership agrees that the importance of FAO's work in these areas justifies an appropriation beyond ZRG.
68. The total amount is close to US$ 22.6 million, or 3.5 percent of the current Regular Budget Appropriation of US$ 650 million. For the sake of facilitating comparison with similar information provided under other scenarios, the net effect of granting additional resources for all of the selected items can be appreciated through the following table giving the revised breakdown of the Appropriation. As can be seen, additional provisions under the RG scenario would favour the technical and economic programmes and TCP, and would also give a significant boost to present and planned efforts to improve the language balance in the work of FAO.
Proposed Allocation for the Appropriation (RG after Cost Increases) |
||||||
(All amounts in US$ 000) |
||||||
| Major Programme and Chapter | Description | 1998-99 Budget | ZRG Programme Change | Cost Increases | Real Growth Change | 2000-01 Proposed Budget |
| 1.1 | Governing Bodies | 18 046 | (513) | 539 | 0 | 18 072 |
| 1.2 | Policy, Direction and Planning | 19 353 | 1 370 | (198) | 0 | 20 525 |
| 1.3 | External Coordination and Liaison | 12 204 | 152 | 471 | 0 | 12 827 |
| 1.9 | Programme Management | 756 | 23 | 34 | 0 | 813 |
| Chapter 1 | General Policy and Direction | 50 359 | 1 032 | 846 | 0 | 52 237 |
| 2.1 | Agricultural Production and Support Systems | 88 344 | 386 | 1 482 | 5 425 | 95 637 |
| 2.2 | Food and Agriculture Policy and Development | 86 612 | 906 | 755 | 4 986 | 93 259 |
| 2.3 | Fisheries | 39 167 | (80) | 198 | 5 920 | 45 205 |
| 2.4 | Forestry | 30 310 | (295) | 177 | 1 592 | 31 784 |
| 2.5 | Contributions to Sustainable Development and Special Programme Thrusts | 48 473 | (195) | 185 | 773 | 49 236 |
| Chapter 2 | Technical and Economic Programmes | 292 906 | 722 | 2 797 | 18 696 | 315 121 |
| 3.1 | Policy Assistance | 22 322 | 3 101 | 1 256 | 662 | 27 341 |
| 3.2 | Support to Investment | 20 209 | 336 | (901) | 0 | 19 644 |
| 3.3 | Field Operations | 3 703 | 1 102 | 637 | 0 | 5 442 |
| 3.4 | FAO Representatives | 64 321 | (7 248) | 6 851 | 0 | 63 924 |
| 3.5 | Cooperation with External Partners | 5 501 | 1 248 | 61 | 1 | 6 811 |
| 3.9 | Programme Management | 1 973 | (1 219) | 17 | 0 | 771 |
| Chapter 3 | Cooperation and Partnership | 118 029 | (2 680) | 7 921 | 664 | 123 934 |
| 4.1 | Technical Cooperation Programme | 87 259 | (205) | 2 064 | 2 170 | 91 288 |
| 4.2 | TCP Unit | 2 188 | 205 | 5 | 0 | 2 398 |
| Chapter 4 | Technical Cooperation Programme | 89 447 | 0 | 2 069 | 2 170 | 93 686 |
| 5.1 | Information and Publications Support | 14 073 | 2 659 | 259 | 600 | 17 591 |
| 5.2 | Administration | 43 423 | (1 352) | 581 | 214 | 42 866 |
| Chapter 5 | Support Services | 57 496 | 1 307 | 840 | 814 | 60 457 |
| 6.0 | Common Services | 41 163 | (381) | 383 | 231 | 41 396 |
| Chapter 6 | Common Services | 41 163 | (381) | 383 | 231 | 41 396 |
| 7.0 | Contingencies | 600 | 0 | 0 | 0 | 600 |
| Chapter 7 | Contingencies | 600 | 0 | 0 | 0 | 600 |
| Total | 650 000 | 0 | 14 856 | 22 574 | 687 430 | |
69. Beyond these general figures, the comprehensive table below lists the areas for priority work so identified, the amounts already included in the ZRG scenario, and the incremental resources which could be granted under an eventual RG scenario.
List of Priority Areas which Would Benefit from Additional Resources Under the RG Scenario |
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| Title and Programme Reference |
Resources Under ZRG (000 $) |
Description of Use of Additional Resources |
Additional Resources Under RG (000 $) |
|||
| AnGR Programme and the intergovernmental mechanism for AnGR (CGRFA - ITWG on AnGR) (213A5) | 354 | Further develop the programme on management of farm animal genetic resources for the following areas: 1) maintenance and further development of DAD-IS; 2) funding of the 2nd ITWG on AnGR; and 3) preparing for the country-driven report on the State of the World's Animal Genetic Resources. | 350 | |||
| Monitoring land and freshwater resources: quality and utilization (211P7) | 445 | Enhance capacity to monitor the state of land and freshwater resources so as to make it possible to adequately respond to the increasing number of requests for quality information on the state of land and water resources. These resources would speed up basic data collection and the updating of the division's information base on soil and water resources. | 250 | |||
| Support Rotterdam Convention on Prior Informed Consent Procedure for Certain Hazardous Chemicals and Pesticides in International Trade (212P2) | 2781 | Provision of the Interim Secretariat to the Rotterdam Convention, providing a forum to decide on the inclusion of chemicals and pesticides in the Prior Informed Consent procedure and providing for the management of an information system to help implement the convention. | 523 | |||
| Strengthening plant biotechnology activities (212A1, 212A2 and 215A1) | 241 | Establishment of balanced international norms and methods for biosafety risk assessment, strengthening capacity of developing countries to cope with useful plant biotechnology in their agricultural development programmes, establishment of a harmonization programme making use of existing procedures within IPPC through working groups, and the provision of services for DNA finger printing and related training, advisory support and networks. | 1 346 | |||
| Enhancing the implementation of FIVIMS at the national and international levels (222A1) | 3 754 | National FIVIMS established in an additional 15 countries during 2000-01; indicators of food insecurity and vulnerability developed and tested; international FIVIMS database established with links to major relevant databases; nutrition and food security databases established and regularly updated; and annual reports on the State of Food Insecurity and Vulnerability in the World produced. | 587 | |||
| GIEWS crop and food supply assessment missions (223P6) | 350 | Resources are insufficient to meet the expected level of requests in 2000-01 and as ad hoc extra-budgetary funding cannot be relied upon for planning purposes, this activity currently requires that funds be switched from other budgeted activities. The additional resources would allow eight additional assessment missions, locally-organized crop assessments, including local training, improved flow of country-level information to GIEWS, and assessment mission reports available in additional languages. | 690 | |||
| Study of the impact of sanitary and phytosanitary measures on international food (221P5) | 120 | To carry out a global study on the economic impact on developing countries of the application of the WTO agreement on sanitary and phytosanitary measures in international food and agriculture trade. | 120 | |||
| National systems of food and agricultural statistics (222P3) | 2 087 | To provide additional technical advice, training and related capacity building to improve food and agricultural statistics in member countries in the Near East region (RNE) and in the Central and Eastern Europe sub-region (SEUR). | 800 | |||
| Technical assistance on trade policy (224P4) | 1 792 | Increased technical assistance to strengthen the capacities of developing countries to become well informed and equal partners in the next round of multilateral trade negotiations. Additional resources would be used to provide rapid, highly specialized technical analysis and advice on negotiating issues as they arise. | 180 | |||
| Enhancing technical support to member countries for the implementation of Codex standards on veterinary drug residues in foods (221P5) | 80 | To organize and implement training activities at the Seibersdorf Laboratory of the Joint FAO/IAEA Division in the analysis of animal drug residues in food and to participate in the development of a database on levels of animal drug residues. Outputs would include international guidelines and standard references; trained analysts from developing countries in the detection of drug residues, a database on the level of different animal drug residues in various food products. | 734 | |||
| Implementation of the Plans of Action on sharks, seabirds and fishing capacity (233A1, 231S1, 232S1, 234P3, 234A1 and 231A1) | 335 | Full support to the international Plans of Action for reducing the incidental catch of seabirds in longline fisheries, for the management and conservation of sharks, and for the management of fishing capacity. | 3 200 | |||
| Code of Conduct for Responsible Fisheries (234A1) | 1 057 | Improved dissemination of information, a technical consultation on capacity and illegal fishing, dissemination of the Code and guidelines and indicators for monitoring fisheries. | 316 | |||
| Small Island Developing States (SIDS) programme (233A2 and 234A1) | 370 | Activities which serve to address the special characteristics of SIDS and emphasize the importance to them of often vulnerable fishery resources for employment, food and generation of foreign exchange. | 300 | |||
| Support to meetings and consultations on key issues (234S1) | 0 | COFI Sub-committee on Aquaculture, ACFR working parties and sessions, and an open-ended technical consultation on ecolabeling. | 367 | |||
| Work on CITES listing criteria (232A4) | 10 | Listing criteria for commercially harvested fish species for the Conference of the Parties to CITES. | 100 | |||
| More appropriate ecosystem approaches to fisheries development (232S1) | 30 | As part of the follow-up to the Kyoto Protocol and Plan of Action, develop more appropriate ecosystem approaches to fisheries development and management in collaboration with both FAO and non-FAO regional fisheries bodies and to continue its work on the development of sustainability indicators for fisheries. | 335 | |||
| Forestry Information System (244P1) | 1 768 | Design new modules, including linkages with FAO Regional Offices and key external partners; using FAO's Regional Forestry Commissions, build regional and national capacities to utilize and provide updated information for inclusion in the global information system; and improve and institutionalize the management of the system. | 400 | |||
| Strengthen international forestry policy (244P2) | 1 342 | Serve as international forest policy forum, hosting one global meeting per year on major post-UNCED forest policy issues as determined by member countries and provide policy analysis in support of the global forest policy dialogue. | 400 | |||
| Management and Coordination of the ACC Network on Rural Development and Food Security (253P1) | 855 | Strengthen support to the two-tiered mechanism comprising country-level thematic groups on rural development and food security (approximately 76 have been established to-date) and a global network bringing together UN agencies, governments and civil society to support country-level action. | 300 | |||
| Statistical analysis of gender specific constraints and issues in socio-economic and development contexts (251A1) | 404 | Report on gender specific constraints and issues arising from socio-economic and development context. | 260 | |||
| Strengthening interdepartmental coordination for the follow-up of the Commission on Sustainable Development (CSD) (251P2) | 197 | Strengthen the coordinating mechanism to help integrate the activities of FAO's technical departments, enabling the Organization to address better the issue of environmental sustainability in a cross-sectoral way. Outputs will include publications on major ongoing normative and operational activities of FAO on themes being addressed at CSD each year. | 100 | |||
| Sub-regional Office for Central Asia | 0 | Provide Members of the sub-region with direct access to a multi-disciplinary team of technical experts. | 2 000 | |||
| Sub-regional Office for Central America | 0 | Provide Members of the sub-region with direct access to a multi-disciplinary team of technical experts. | 2 000 | |||
| Strengthening Regional and Sub-regional Offices in Africa | Insufficient | Strengthen the capacity of these Offices to provide technical expertise in livestock production and animal health care. | 600 | |||
| Technical Cooperation Programme (Chapter 4) | No net Increase | Increase resources to bring the share of TCP in the total budget closer to 14% and, if possible to raise it to 17%. The indicated increase would return TCP to its 1986-87 level of 14.1% of the Appropriation. | 2 170 | |||
| Improve language balance (Meetings) | --_1 600 |
50% improvement in number of worldwide meetings where translation and interpretation are provided in Chinese and Arabic (currently only English, French and Spanish are covered) | 814 | |||
| Improve language balance (Publications) | 20% improvement in number of publications translated into languges other than English. | 1 040 | ||||
| Improve language balance (WAICENT) | Increasing the proportion of translated text and databases in WAICENT and FAO Website providing support for multilingual search capacity. | 1 692 | ||||
| Improve language balance (Media Relations) | Extend the language capacity of GII Media groups to enhance FAO's capacity to communicate its message effectively with diverse cultures and language groups. | 600 | ||||
| Total | 22 574 |
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70. In order to reach ZNG, it is necessary to identify reductions totaling US$ 14.9 million from ZRG resource levels so as to keep the budget to its approved level in the 1998-99 biennium of US$ 650 million.
Protected Areas
71. When preliminary ideas as to the possible shape of a ZNG scenario were submitted to the Council in June 1999, it was indicated that the principle of full protection would be upheld for a number of key areas of the programme of work. These were listed as follows:
72. The same principle of protection was also to be applied to the two "windows" of the Regular Budget which fund direct operational activities in countries, i.e. the Technical Cooperation Programme (TCP) and the central provision for the Special Programme for Food Security (SPFS) under Programme 2.5.6.
73. Mindful of the expressions of support to other substantive areas in the Council, the Director-General has decided that in the eventuality of a ZNG budget, the following would be added to the above "protected" group:
Needed Reductions Under Other Areas
74. The full protection afforded to the above areas entailed proportionately higher reductions to be identified under other FAO programmes. Regrettably, it was not feasible to avoid cuts to valuable programmes within Chapter 2, i.e. substantive programmes other than those listed above. In the search for the least damaging course of action, the capacity to attract extra-budgetary support was borne in mind, to compensate for eventually reduced resource levels under the Regular Budget. Rather than the straight abolition of posts, particularly in technical departments, the ZNG scenario would only include partial funding for a number of posts, with the intent to return to full funding when the full impact of rationalization measures should be realized (cf. below). In addition, cuts would be necessary under other budget components, specifically consultancies and travel. In many areas, this would lead to reductions in the budgetary provisions under these components by as much as 16 percent. The package of special measures to seek improved language coverage (as outlined under the ZRG scenario above) would be largely preserved, even under the stricter budgetary parameters of ZNG, although the incremental resources would have to be trimmed down by US$ 500,000, to US$ 1.1 million.
Rationalization Measures
75. The ZNG scenario would comprise a somewhat more drastic definition of the Management Support Unit (MSU) restructuring included under the ZRG scenario, hence leading to US$ 0.5 million in additional saving target. This would be achieved by further trimming of the programme coordination units which would remain in the various departments.
76. In addition, it is intended to set in train structural changes in the Regional Offices outside Rome. As would be recalled, these Offices were considerably strengthened in the recent past, including by the transfer of most operational activities - and attendant posts - in support of the field programme. The process was initiated with the Regional Office for Asia and the Pacific (RAP) at the end of 1996 and concluded with the Regional Office for Africa (RAF) in early 1998. With the benefit of experience of the work of regional teams in their new strengthened configuration, and in anticipation of the beneficial impact of enhanced information systems in the same way as for the restructuring of MSUs at Headquarters, it is possible to capitalize on the potential synergies between technical groups, operations branches and the MSUs in Regional Offices outside Rome by integrating their operational and related administrative work. While the identification of specific posts is not yet possible, the present proposal assumes that US$ 4.7 million in savings will be realized in 2000-01 and are, therefore, taken into account in the ZNG scenario to mitigate the negative impact of reduced resource levels on substantive programmes. It is important not to confuse these rationalization measures - essentially "process-related" to be put in place progressively - with the volume-related reductions already made under the ZRG programme of work under Programme 3.3.1, Field Operations in Various Regions.
77. The following table shows the reductions to the Appropriation stemming from the above approach, under the main programme headings.
| Proposed Allocation for the Appropriation (ZNG after Cost Increases) | ||||||
(All amounts in US$ 000) |
||||||
| Major Programme and Chapter | Description | 1998-99 Budget | ZRG Programme Change | Cost Increases | ZNG Programme Change | 2000-01 Proposed Budget |
| 1.1 | Governing Bodies | 18 046 | (513) | 539 | (22) | 18 050 |
| 1.2 | Policy, Direction and Planning | 19 353 | 1 370 | (198) | (406) | 20 119 |
| 1.3 | External Coordination and Liaison | 12 204 | 152 | 471 | (99) | 12 728 |
| 1.9 | Programme Management | 756 | 23 | 34 | 0 | 813 |
| Chapter 1 | General Policy and Direction | 50 359 | 1 032 | 846 | (527) | 51 710 |
| 2.1 | Agricultural Production and Support Systems | 88 344 | 386 | 1 482 | (3 081) | 87 131 |
| 2.2 | Food and Agriculture Policy and Development | 86 612 | 906 | 755 | (2 524) | 85 749 |
| 2.3 | Fisheries | 39 167 | (80) | 198 | (12) | 39 273 |
| 2.4 | Forestry | 30 310 | (295) | 177 | (15) | 30 177 |
| 2.5 | Contributions to Sustainable Development and Special Programme Thrusts | 48 473 | (195) | 185 | (1 135) | 47 328 |
| Chapter 2 | Technical and Economic Programmes | 292 906 | 722 | 2 797 | (6 767) | 289 658 |
| 3.1 | Policy Assistance | 22 322 | 3 101 | 1 256 | (1 025) | 25 654 |
| 3.2 | Support to Investment | 20 209 | 336 | (901) | (316) | 19 328 |
| 3.3 | Field Operations | 3 703 | 1 102 | 637 | (3 024) | 2 418 |
| 3.4 | FAO Representatives | 64 321 | (7 248) | 6 851 | (267) | 63 657 |
| 3.5 | Cooperation with External Partners | 5 501 | 1 248 | 61 | (543) | 6 267 |
| 3.9 | Programme Management | 1 973 | (1 219) | 17 | (80) | 691 |
| Chapter 3 | Cooperation and Partnership | 118 029 | (2 680) | 7 921 | (5 255) | 118 015 |
| 4.1 | Technical Cooperation Programme | 87 259 | (205) | 2 064 | 0 | 89 118 |
| 4.2 | TCP Unit | 2 188 | 205 | 5 | 0 | 2 398 |
| Chapter 4 | Technical Cooperation Programme | 89 447 | 0 | 2 069 | 0 | 91 516 |
| 5.1 | Information and Publications Support | 14 073 | 2 659 | 259 | (301) | 16 690 |
| 5.2 | Administration | 43 423 | (1 352) | 581 | (1 275) | 41 377 |
| Chapter 5 | Support Services | 57 496 | 1 307 | 840 | (1 576) | 58 067 |
| 6.0 | Common Services | 41 163 | (381) | 383 | (731) | 40 434 |
| Chapter 6 | Common Services | 41 163 | (381) | 383 | (731) | 40 434 |
| 7.0 | Contingencies | 600 | 0 | 0 | 0 | 600 |
| Chapter 7 | Contingencies | 600 | 0 | 0 | 0 | 600 |
| Total | 650 000 | 0 | 14 856 | (14 856) | 650 000 | |
78. As will be noted, a substantial share of the identified reductions to reach ZNG applies to Major Programme 3.3, Field Operations, and to a much lesser extent to the provisions for programme management at Headquarters. The risks linked to early implementation of restructuring measures have been underlined at several places in this document (also relevant to the proposals under ZRG) and should not be underestimated. In addition, the lower incremental resources for improved language coverage would clearly constrain the latitude to fill critical gaps and meet priority needs concerning publication and meeting activities, as originally intended.
79. Regrettably, the staff-related reductions affecting the "non-protected" substantive activities, i.e. many areas of Major Programmes 2.1, 2.2, 2.5 and 3.1, will imply some weakening of technical capacity which, it is hoped, will only be temporary. Coupled with the lower provisions for consultancies and travel, they translate into significant downward adjustments to the programme entities included under the ZRG scenario, along with the necessary reduction and/or elimination of outputs.
80. The concerned technical departments would, as per established practice, be able to exercise due flexibility in the management of their eventually reduced allotments, e.g. in coping in a pragmatic manner with a staff establishment which is only partially funded. Therefore, the actual negative impact during the implementation of an eventual ZNG budget, cannot be firmly foreseen at this stage - and it would undoubtedly be counter-productive to determine it too rigidly in advance, particularly given the fact that the targeted amount to be reduced varies daily with the exchange rate.
81. Nevertheless, it is possible to provide an indicative assessment, as follows:
