LE PRESIDENT: Je déclare la treizième séance plénière de notre Conseil ouverte.
Comme nous l'avons décidé hier nous allons aborder le point 10 de notre ordre du jour: Programme alimentaire mondial et notamment au point 10.1 le dix-septième rapport annuel du Comité des politiques et programmes d'aide alimentaire. Nous avons élu hier sept nouveaux membres à ce Comité.
Je voudrais saluer parmi nous la présence de Madame le Directeur exécutif du Programme alimentaire, Mme Catherine Bertini, en lui souhaitant la bienvenue et en la remerciant très vivement d'avoir accepté de présenter personnellement le dix-septième rapport annuel du Comité des politiques et programmes d'aide alimentaire du PAM.
Ce programme est présenté au Conseil économique et social, à notre Conseil - Conseil de la FAO - et au Conseil mondial de l'alimentation.
J'ai eu l'occasion de lire l'expose de M. Eliasson au début de la réunion du Comité des politiques et programmes d'aide alimentaire, en date du 3 novembre 1992. J'ai parcouru ce document avec beaucoup d'intérêt et je pense que la dernière session du CPA a été particulièrement fructueuse.
Ms Catherine A. BERTINI (Executive Director, World Food Programme): Serving the needs of the poor throughout the world is a tremendous challenge and responsibility. Yet every one of us here in FAO, in the UN, in the World Food Programme, every government, every agency, every NGO, and each of us as individuals has made a commitment to do just that.
There are many essential ingredients to our success, but there is one critical ingredient: that is our need to work together in a cooperative, coordinative fashion. We owe those in need nothing less.
The World Food Programme's mission is to support projects using food aid as an economic and social development, particularly in ways to reduce hunger and poverty, in helping the poor to lead more productive lives, in promoting agricultural development, and in generating lasting benefits such as physical infrastructure, skilled training, primary health care, education and environmental protection.
Of course, the World Food Programme also provides food for disaster relief, including necessary logistic support, and helps to ensure coordination of emergency food assistance within the framework of the UN system.
As you know, the World Food Programme is the primary distributor of multilateral food aid, and handles the greatest volume of grant assistance to developing countries of any other UN operational agency. However, food alone cannot eliminate poverty, any more than can health services alone or peace and democracy alone or even money alone. It is imperative, therefore, that the World Food Programme's efforts be closely coordinated with FAO, with other UN agencies, with NGOs, and that we work in concert with the governments of developing countries to help them to reach their own goals of self-reliance for the people in their countries.
It is therefore a privilege for me to address the FAO Council today, the Governing Body of the World Food Programme, on behalf of the World Food Programme and its Governing Body, the Committee on Food Aid Policies and Programmes.
You have before you the Seventeenth Annual Report of the CFA. It records the activities of the Organization for 1991, but much has happened in the world of humanitarian and development assistance in 1992. Therefore I will devote my time to a brief summary of many of the World Food Programme's ongoing activities.
However, there is only one way to begin my presentation to the FAO Council, that is by telling you about the excellent collaborative, constructive relationship that exists between the FAO and the WFP. At all levels - technical, staff support, field and executive levels - we enjoy a positive working environment that helps each of us do the best job possible on behalf of the people we are here to serve, the world's poor. I thank the Director-General for his supporting commitment personally and on behalf of the WFP.
In April, when I took my oath of office in this room, I told the Director-General and the CFA that twenty years ago in April I visited this building and learned for the first time about the important work done by the Food and Agriculture Organization. There are few goals in the world more important than those to which we are all dedicated - to help those in need help themselves to build their communities and improve their options for self-reliance, and to provide food for those who risk hunger and starvation from natural and man-made disasters. I am proud at this first meeting with you of the FAO Council to join you in this effort.
At the recent CFA meeting, I discussed several major challenges faced by the WFP. I should like to review those challenges this morning.
The first is the challenge of providing life-sustaining food. As more and more people become victims of natural or man-made disasters, the World Food Programme is called on to provide fast, efficient provision of food. Unfortunately, the rate of these disasters has grown dramatically last year and this year. That, coupled with the WFP/UN High Commission on Refugees agreement that the WFP would undertake refugee food delivery beginning in 1992 resulted in large increases in the dollar volume of WFP emergency and refugee assistance.
In 1991 the WFP spent over half of its resources in this area, but just in the first six months of 1992 our expenditures are already 25 percent higher than for all of 1991. But we are serving millions of desperate people in this process.
I believe there is another reason why the WFP is called on over and over again by donor and recipient governments to play an active role in emergency relief efforts. If I can brag for a moment: we are good at it.
The CFA Chairman who is here today, Ricardo Velazques of Mexico, and I had the opportunity to see first-hand some of that work when we visited Southern Africa and the Horn of Africa in September. We saw a most efficient technical operation in Johannesburg set up with SADCC and the South African transport system designed to move food through South African ports to inland countries as quickly as possible. We saw the information flow at the UN/SADCC logistic centre in Harare staffed and operated by the World Food Programme. Most importantly, we saw the positive effects of some of this work in a displaced persons camp in Central Mozambique, where we were engulfed by a sea of curious energetic children as we toured the camp and saw the WFP in action. We saw it in rural Zimbabwe, where we visited a children's feeding centre. In fact, we visited two, the one we had planned to visit and the one that we passed and went back to at my request to make an impromptu visit. In both places, the place where they knew we were coming and the place where we surprised the people, we saw the same efficient organization: lists of all eligible children under five, details of their weight and height and other measures, and nutritious meals. The Chairman and I can attest that they were also tasty meals, since we joined them as well. These meals were being distributed to well-nourished children under five - well-nourished, I believe, because of the strength in large part of these meals in this work.
Finally, we saw some of the WFP work in Somalia, where food is now available in large quantities, but where people are still in desperate need because the food has not reached them, where creative methods of transporting the food are often the only available methods for our staff, for donor governments and for other UN agencies and NGO staff to reach people.
Of course, security remains the single most significant obstacle to food delivery, and we still have huge gaps in that delivery. This insecurity and general lawlessness has disrupted all efforts to bring relief assistance to starving people, although some has reached those people in need. I am told by people in the WFP that this may be the most difficult emergency situation in which the Programme has been involved.
After a WFP ship opened the port of Mogadishu to traffic in May, port discharge operations still remain disrupted on almost a daily basis. Efforts to move food within the country are severely affected by looting. Airlifts and air drop operations, which should be considered a means of last resort, are the only way that we are reaching a large number of people in rural Somalia. But even these have been adversely affected in the last few weeks.
In spite of this, in the extremely difficult conditions under which our staff are working, we have managed to deliver 60 000 tonnes of food since May through the ports of Mogadishu and Kismayu, plus another 10 500 tonnes by air, to a total of 18 points throughout Southern and Central Somalia. From there our staff in a large network of NGOs, especially CARE as a major partner, are striving to deliver the food to the most needy.
There is some good news in this situation. As of last Friday, with the new contributions recently from the Japanese Government and the World Bank, the WFP portion of the 100-day plan for Somalia is fully pledged. I thank all of those countries who have contributed generously so far, and I also thank those countries who have creatively supplied the most helpful contributions of aeroplanes and personnel, in particular Germany, Canada and the United States.
World Food Programme has also been a major partner in bringing relief to millions of people in Iraq, in the Sudan, in Ethiopia, in Eritrea, in Kenya, in the countries involved in the Liberia tragedy and in many other countries that have faced recent disasters.
In addition, the World Food Programme has been requested and has agreed to assist in delivering food to victims of the tragic events in the former Yugoslavia. WFP's responsibility involves mobilization, transport and delivery to extended delivery points of 200 000 tonnes of food commodities over the next five months. We are working very closely with UNHCR and this food will all be food from newly contributed commodities, commodities contributed specifically for this reason. The European Community has promised the major portion of this effort.
A second challenge for the World Food Programme is the challenge of building towards self-reliant communities and families. Development programmes remain the foundation of the WFP. These are the only tools that can help us assure our long-term collective success in positively impacting communities and families.
I know, as you know, that the WFP is good at managing development projects. That does not mean that we cannot improve, and one of our challenges within the challenge of building up our development programmes is improving those we have.
In September we held a meeting with many Member Governments to discuss the financial and cash situation of the WFP. One of the initiatives we are launching as a result of that effort is to take stock of WFP's most successful experiences in the use of food aid in support of development.
In this review our basic questions are: under which conditions, through which approaches, and in which sectors is WFP normally most successful, and why? I expect there to be interesting conclusions drawn from this exercise. They should be starting points for future programming.
We intend also to screen the entire WFP development portfolio in order to identify those projects which do not meet expectations either in terms of achievements or in rate of implementation, or those which immobilize resources to the detriment of much more promising projects.
We have, for the sake of independence and objectivity, made this effort to be run by our Evaluation Service who will report to me. The Government of France has offered us financial support to help us in this effort.
We must also ensure the long-term growth of the World Food Development Programme. This is our largest development challenge. This is where the partnership among recipient governments, donor governments and the World Food Programme's staff become crucial. We must, together with recipient governments, make strong projects producing worthwhile results. We must,
together with donor governments, demonstrate that their investments, their contributions, are well placed with the World Food Programme. I will continue to work with donors, to visit their capitale, to understand their individual concerns and priorities, and to try to match WFP's strengths with their individual interests and concerns in an effort to build the strongest multilateral food aid agency possible.
I am most appreciative of the positive, constructive and even enthusiastic response I have received from donors in these discussions. Since I arrived at the World Food Programme, I have visited twelve donor governments, including yesterday in Paris. I expect next month to visit Washington. I hope next year to be able to accept the invitations to visit Japan, Australia and Saudi Arabia.
The current resource reality that we must face for 1993, however, is that we do not have enough resources to meet our current commitments. For the last few years we have made commitments beyond our anticipated level of donations and the shortfall has been manageable for the last two years. However, we face a much more significant shortfall for 1993, possibly as much as 400 000 tons of food, and although we have systematically apportioned the impact of this, based strictly on categories of countries, all countries with the development programmes will be impacted. This will be difficult for many countries to absorb but I have taken the decision to make these changes for 1993 so that we can limit the impact of these in 1993 and we can begin 1994 with commitments based on a level of development that we expect. We will also have a more limited approval of projects in the next two SCPs as we did at the last sub-committee on projects in order to meet our obligations.
One factor that could help immensely is the Pledging Conference and the pledges that are made for 1993 and 1994. At the Pledging Conference earlier this month some countries did come forth with their pledges. Many were not yet in a position to do so. I would like to thank those countries who have pledged and to offer to those who have not yet pledged our willingness to help work with you as you develop your pledge for 1993 and 1994; and our commitment we offer to you as well, that the World Food Programme will work to use all resources as effectively and as efficiently as possible.
Many governments made pledges which sustained their earlier gifts to the World Food Programme. Several governments made pledges for the first time in several years. The Government of the Netherlands increased its pledge earmarked to IEFR, the Government of China increased its pledge by 10 percent and the Government of the United States made a significant increase in its pledge. I thank all the governments I mentioned and those I did not for all of their pledges.
A third challenge that we face is the challenge of assuring efficient and effective implementation of all WFP programmes. When I met with the Committee on Food Aid in May, I stated for the first six months at least I would be concentrating on personnel issues. We are working on many of the staff issues within the agency.
I also took seriously the direction of the CFA from its December 1991 meeting that the Executive Director should look carefully at the entire Organization and make appropriate changes as necessary. I have spent much time on that and I have announced to the CFA changes that I will introduce effective measures from January 1st. My speech to the CFA and the Organization charts are
available to you. We made no changes that will cost any additional money, I should assure you, but in the next budget cycle I would propose appropriate changes in that regard as well.
Today I would just like to briefly list the management principles and priorities that I used to make these decisions. First, WFP's organization, its priorities and its actions which must reflect the reality of our growing emergency refugee work. Second, we must continue to emphasize our development work. Third, we must ensure that the product, the end results sought by WFP, the work to help become self-reliant, and to help provide life-sustaining food, is done efficiently and effectively from start to finish; the policy, the direction, the decision-making and the implementation. Fourth, I believe the most effective organization can be dealt with by senior management stating broad objectives and by the next level of management further defining those goals within their own portfolios. In this way management at all levels encourages staff to be creative towards meeting those objectives.
Fifth, I believe the decision should be made at the lowest possible levels within the organization with two determining factors for what that level is, ensuring efficiency and ensuring accountability. Sixth, it becomes critical in this process to be able to be accountable, to define the duties of each unit to have each manager working with each staff member so that everyone understands his or her responsibilities and expectations. Seventh, that we have clear lines of authority, that our staff, each individual staff, each unit, each country office know what their responsibilities are, what kind of decision they can take and to whom they are responsible. Eighth, that communication lines are clarified, are strengthened, are opened. I believe these policies, these objectives, will help us to build an even stronger World Food Programme. The World Food Programme staff is made up of many dedicated people who have dedicated their lives, and sometimes put their lives on the line, in the interests of helping provide food to the world's poor. I salute all of those people.
I also salute all of you who worked to help make this work possible. Your contributions of money, of food commodities, of advice, of consultation, of other kinds of activities and services help us because we are, in fact, all working together to help those in need throughout the world.
I congratulate those people who were just re-elected or elected as members of the CFA because we will continue to work with you, or begin to work with you, on many of these matters of critical importance because there are many essential ingredients to any success we might have because our overriding necessity is our need to work together in a cooperative and coordinated fashion in an effort to best serve the world's poor.
We are faced with a time of real challenge in the world and real opportunity. The opportunity for all of us to continue to make a difference in the world, to increase the impact of that difference to positively affect the lives of millions of poor families throughout the world. This is a partnership and we are committed to being a part of it together. We are proud of our work together and we work to serve the needs of the poor throughout the developing world. In this work together we owe the poor nothing less than the full commitment we have given. Thank you very much.
CHAIRMAN: I express my thanks to the Executive Director of the World Food Programme, Mrs Bertini, for her very important statement.
R. ALLEN (United Kingdom): Mr Chairman, I have the honour to make this statement on behalf of the European Community and its Member States. We would like to thank Mrs Bertini for her extremely interesting and informative introduction.
The CFA report for 1991 seems to us to be complete and very informative on the activities of the World Food Programme and on the important discussions which have taken place in its governing bodies.
During the period of years CFA Sessions were dominated by discussions on the management of WFP. We are, therefore, particularly pleased to see in 1991 that the discussions were again focused on the managerial aspects of food aid. During the past year we have also seen events both of natural and man-made origin which had catastrophic repercussions on the food situation of many countries, in particular, sub-Saharan Africa.
In that situation the entire international community has been mobilized to provide aid rapidly to the people who were threatened by famine. In this context I would like to remind members that the European Community and its Member States together authorized exceptional aid worth more than 230 million ECU. This aid was additional to the original foreseen under normal annual programmes. Last year the European Community sent more than 1.5 million tonnes of various food products to sub-Saharan Africa.
The WFP has played an essential role in the situations that were often very difficult, as Mrs Bertini has pointed out. We wish to congratulate them on the results obtained.
Despite this extra workload, the WFP took various initiatives during the year with a view to rationalizing the distribution of food aid, and related tasks within the UN system and in order to improve coordination with the various organizations at field level.
Here, I think, the agreement between the UNHCR and WFP on Food Aid for Refugees comes to mind, as does improved coordination with NGOs.
Notwithstanding the practical questions which are inherent in such initiatives, we feel that these are steps in the right direction. We hope that these efforts can serve to increase the cooperation between the different parties involved in the areas of food aid and development. This could lead primarily to an increased efficiency of emergency operations, whilst also an enhanced effectiveness could be obtained in development activities through improved planning and better coordination between the various institutions and donors.
The situation of WFP's cash flow caused much concern and was discussed at length. Temporary measures were proposed, some of which were adopted by the CFA. However, the debate is not closed and an ad hoc working group created to this end, and in which the European Community participated, carries the matter forward.
In this respect we would like to thank the new Executive Director, Mrs Catherine Bertini, for the way in which she is examining this issue with the view to reaching a long-term solution. We have no doubt that with her determination and courage and with the very open attitude that we have already witnessed, she will lead the WFP safely through these problems.
CHAIRMAN: I thank the distinguished representative of the United Kingdom. You have made your statement in the name of the European Economic Community.
Amin ABDEL-MALEK (Liban): (Langue originale arabe) Monsieur le Président, permettez-moi tout d'abord de féliciter Mme Bertini de son accession à son poste important au sein du système des Nations Unies. Nous n'avons jamais eu l'occasion de la rencontrer lors de réunions officielles auparavant et nous n'avons jamais eu l'occasion de la féliciter publiquement. C'est pourquoi je le fais maintenant.
Je voudrais également la féliciter de l'excellent rapport qu'elle nous a présenté sur les activités du CPA et sur celles du PAM en général. Il s'agit d'un rapport exhaustif qui nous éclaire beaucoup sur les activités de cette Organisation.
Au cours des années passées, le PAM a entrepris de très nombreuses activités qui ont eu un effet extrêmement positif sur bien des pays en développement ayant besoin de cette aide. Dans le cadre de ces activités, le PAM a joué un double rôle: d'un part, il a fourni une aide alimentaire pour le développement et, d'autre part, il a également permis de résoudre des situations d'urgence. Ces activités ont aidé les pays en développement à surmonter nombre de leurs problèmes mais nous ne pouvons pas dire, malheureusement, que tous ces problèmes aient été résolus. Ces dernières années, de nombreuses crises sont survenues sur notre planète - catastrophes naturelles, sécheresses, inondations, tremblements de terre - qui ont demandé une réaction d'urgence et une aide de la part du PAM. Des difficultés ont été rencontrées dans le domaine de l'expédition et de la livraison de cette aide. Malgré cela, le PAM n'a jamais cessé de déployer ses efforts.
La délégation libanaise apprécie l'excellent travail effectué par le Programme alimentaire mondial et tient à remercier cette organisation pour l'assistance qu'elle a prêtée au Liban. Nous ne pouvons qu'appuyer les efforts déployés par le PAM pour exécuter ses projets; et nous espérons que toutes les institutions pertinentes et tous les donateurs continueront de participer au financement des activités du PAM afin qu'il puisse continuer à fournir son aide. Nous aimerions remercier ces donateurs et ces institutions de leurs contributions.
Ms Janet F. BITEGEKO (Tanzania): My delegation is grateful to you, Mr Chairman, for affording us this opportunity to make an intervention on the agenda pertaining to document CL 102/9.
First, my delegation would like to thank the World Food Programme Executive Director for the introduction and the Secretariat for a detailed document.
I would also like to commend the World Food Programme on the achievements recorded in the activities of alleviating hunger and malnutrition in the most needy countries of the world. The scourge of famine as seen in the Horn of
Africa and some parts of east and southern Africa due to drought and civil wars could have been worse. We thank to the World Food Programme, the international donor community and relief activities.
On the aspect of relief activities, Tanzania also would like to commend the World Food Programme and other donor countries who have been supportive of our efforts. Tanzania, though not in a grave food situation, has some regions which are experiencing food shortages and will continue to do so until next harvest in July 1993, subject to favourable weather conditions. This is why Tanzania is requesting some 318 000 tonnes in the form of food aid to offset the imminent food shortages.
As noted from the document under consideration, the role of the World Food Programme in providing relief food aid has expanded. Similarly, unpredictable situations are on the increase, thus diverting World Food Programme resources from their mandated activities. The decision to revisit World Food Programme's mandates and objectives to reflect new developments is welcome.
As to development activities, Tanzania would like to acknowledge the support given by the World Food Programme in the form of food aid for economic and social development. In Tanzania this aid has helped and continues to help the less privileged rural and urban poor in raising their income through implementing small projects. The rural smallholding dairy projects on the mainland and Zanzibar are good examples of how food aid, in the form of skimmed milk powder and butter oil, could assist in developing a smallholding dairy industry. Funds generated from food aid sales have greatly assisted the mainland housing scheme in the sisal estates and smallholding irrigation project in Zanzibar by improving and rehabilitating the irrigation infrastructure. Such smallholding activities are crucial to the economy of my country whose current priority policies include smallholder participation.
My delegation would like to appeal to the international community to make available plastic bowls and plates to Somalia whose good nutritious food is served in very unhygienic facilities.
Finally, my delegation would like to request the donor countries and institutions to provide support to the World Food Programme. The World Food Programme is reaching millions of victims of wars, natural disasters etc., but there are still millions more who are not reached due to inadequate resources.
Ms Melinda KIMBLE (United States of America): My delegation would like to thank Mrs Bertini for her competent introduction to this item. We would also like to note that this has been a tremendous and exceptional year for emergencies. Where in the past five crises might be considered a tough year, in 1992 there have been at least 15 emergencies.
The World Food Programme has met the challenges with admirable determination, creativity and competence. I would also like to note that the United States has made exceptional efforts to help mitigate these emergencies with contributions totalling US$1.8 billion to sub-Saharan Africa in 1992.
The report before us details the pivotal role played by the World Food
Programme in the growing number of complex emergencies where drought and economic hardships, combined with civil strikes, make delivering relief a precarious and risky business.
In most of these crisis situations the World Food Programme is now expected to be the centre for food mobilization, food resources, deliveries and monitoring emergency food shipments and organizing the logistics of delivery. Being on the front line has put a tremendous pressure on WFP's resources and response capacity.
In view of the these strains, the emphasis placed in the CFA report on accountability and careful monitoring and economy of focus is particularly valuable. We also strongly support the effort to link more closely WFP's development programmes and disaster mitigation, the increased cooperation with other UN and NGO organizations, and the prudent use of new methods such as monetization to fit food aid to the needs of existing markets and the peculiar demands of chaotic emergencies.
We would commend the Executive Director on the reorganization in which WFP has engaged, the energy and openness with which these changes are being implemented and the impact these initiatives will have on even better performance in future.
Finally, we wish to note the marked increase in effective coordination between FAO and WFP. The Director-General of FAO and the Executive Director of WFP deserve our thanks for bringing about greatly enhanced communications.
Adel EL-SARKI (Egypt) (Original language Arabic): In the name of God, the Compassionate and Merciful, Mr Chairman, my delegation, after having carefully considered the paragraphs of documents 17 and 9, would like to congratulate the WFP on its efforts in trying to bring aid to those who are subject to civil as well as natural disasters and its efforts in trying to strengthen logistical operations as regards the transport of food aid to those zones where they are needed.
We are also fully satisfied by what is found in paragraph 15 which refers to the contributions and pledges to the WFP for 1991-92 of more than US$1.9 billion.
We hope that these multilateral resources will reach the target of US$2.6 billion for this biennium.
We are also very pleased with what is to be found in paragraph 38, which refers to the establishment of a cash account to be known as the Immediate Response Account within the International Emergency Food Reserve. We are also pleased to see that the WFP has tried to cut down on transportation costs, as referred to in paragraphs 50 and 51, which also relate to the use of vessels from developing countries.
We fully support what is to be found in paragraph 60 to 62. From paragraph 62 to 67 reference is made to food purchases, and here my delegation welcomes WFP's efforts to try to buy the food aid within the developing countries. We also support what is to be found in paragraph 67 and hope that this will be increased in the future.
My delegation congratulates WFP on its efforts to try to ensure that food aid efforts go hand in hand with other efforts to ensure the increased effectiveness of food aid. This can certainly be done through additional responsibility of the national components within the programmes.
My delegation has had very close and good relations with WFP since its creation in 1963. Food aid which has been given to my country amounts to more than US$600 million, and this has certainly had very positive developmental effects on socio-economic development within our country, particular as regards land use and development.
Finally, we should like to congratulate Mrs Bertini for her excellent introduction to this report. We hope that she will have the greatest success in her activities within the WFP.
Bo WILEN (Sweden): We have in front of us the 17th Annual Report of the WFP Committee on Food Aid Policies and Programmes to the ECOSOC, the FAO Council and the World Food Council. We have also heard Mrs Bertini's extremely interesting updating statement. The Government of Sweden is confident that the discussions in the three fora just mentioned will give valuable inputs to WFP in its continuous work to strengthen the Organization. My delegation is very pleased to have been given this opportunity to be given some points of view on the report, even if I repeat to some extent what other distinguished delegates have already said.
Indeed, 1991 was a crucial year for WFP. The issue of governance of the Programme was resolved. During a two-year period the Governing Body of WFP had worked out draft revised General Regulations. They were approved by the General Assembly of the UN and the FAO Conference by the end of last year.
The Nordic countries took active part in the reform process, with a view to enabling WFP to meet the growing needs of food aid in a changing world. In our view, the revised General Regulations have cleared the path for a sharpening of the definition of WFP's role regarding the operational and humanitarian activities within the UN system, for empowering the Governing Body of WFP to exercise full intergovernmental supervision and direction of the Programme and - not least important - for further augmenting of its accountability, transparency and efficiency.
The changes of the General Regulations came into effect at the beginning of 1992. Thus today we are in a position to draw some preliminary conclusions about the new WFP. It seems to us that the results of the changes are entirely positive.
The donor community has shown confidence in the way WFP has met the new challenges and rising needs of food aid in the world. WFP has further developed its role in UN emergency assistance and has turned out to be an important actor in the implementation of the consolidated appeals for emergency assistance in various regions, particularly in Africa. We note with appreciation WFP's contribution in strengthening the DHA inter-agency coordination and hope that similar good relations will grow up between other agencies concerned and DHA in order to make the UN emergency assistance as effective as possible.
My delegation also welcomes the new working arrangements between WFP and UNHCR concerning food aid to refugees and displaced persons. However, we must keep in mind that the new agreement will imply new claims on WFP and its personnel.
The changes of the General Regulations of the WFP also have consequences for the relations between the Programme and FAO. We have been impressed by how
easily the application of the different new rules came into effect and how smoothly the new working relations have been developed. Here, in parenthesis, I would like to express the Swedish Government's appreciation regarding OSRO's prompt actions to handle the Swedish contributions directed towards the rehabilitation of the agricultural sector of the countries in the Horn of Africa and the drought-stricken countries in southern Africa.
As already said, 1991 was a year of changes for WFP. The first results of those changes were positive, in our view. However, it must be stressed that we are only at the beginning of a long and certainly not easy process to develop and to adapt WFP to the challenges and the needs of food aid for the 1990s. Much work remains to be done by the Governing Body to strengthen WFP. The management must continue with its efforts to prepare and streamline the organization for the demands of the nineties.
In this context my delegation stresses the importance of the ongoing work to consider in depth WFP's cash requirements for the long term.
Finally, based on the experiences from the ongoing special emergency programmes for the Horn of Africa and southern Africa, WFP, both its Governing Body and its management, should spare no effort to further develop and streamline the working methods with the other actors involved in order to further speed up the secure delivery of food aid to those most in need in areas struck by disasters of different kinds.
ZHENG BO (China) (Original language Chinese): First of all I should like to thank the Executive Director, Mrs Bertini, for her introduction of document CL 102/9.
The Chinese delegation has carefully studied this document. We have noted that in 1991 WFP accomplished a great deal of work, despite insufficient resources, providing 4.8 million tonnes of food to over 40 million poor people. At the same time we appreciate that the proportion of food aid transported by, and purchased in, developing countries has increased. The Chinese Government is very grateful for the assistance donated by WFP.
We have also noted that in development aid WFP has strengthened cooperation with other UN agencies and bilateral institutions, as well as non-governmental organizations. Diversification and utilization of food aid have been increased and training and assistance to women have been strengthened. The Chinese delegation lends its support to all these WFP efforts. Nevertheless we have taken note that in 1991 wars and natural disasters have increased demand for emergency food aid, increasing relief assistance requirements from one-third to-one half of total food aid, a fairly substantial increase. Although such aid is highly necessary, inadequate food aid resources have reduced development aid to its lowest level since 1978.
In our view, relief assistance can only cure the symptoms, not the disease itself. Therefore, while attention is paid to relief assistance, WFP's work should remain focused on development assistance, with the building up of self-reliance capabilities of the poor rural areas as the fundamental goal.
Finally the Chinese delegation supports the 1993-94 pledging target of US$1.5 billion and hopes that cash contributions will amount to one-third of the
total. The Chinese Government has already made a positive response to this end and has made pledges in line with its capacity.
Kanji KAWAKAMI (Japan): Since the inception of the World Food Programme as a joint programme of the United Nations and FAO in 1963, WFP has been developing, hence becoming the principal international organization executing the significant role of providing food aid for the promotion of economic and social development in the developing countries, especially in the low-income food-deficit countries, and the significant role of delivering emergency food aid for victims of natural and man-made disasters. At the present time, as is well known, the scale of WFP's activities is the largest among the UN agencies, second only to that of the World Bank group.
The Government of Japan highly appreciates the activities for development support and emergency food aid which have been executed by WFP, and the Government of Japan hopes that WFP will continue to operate all its activities in a further more efficient and effective way.
We should like to comment on the emergency aid for the airlift of food and other operations for Somalia by the Government of Japan. Yesterday, on 16 November, the Government of Japan decided to extend an additional contribution as emergency aid totalling US$12.8 million through international organizations for the airlift of food and other operations to aid the afflicted people of Somalia, where very many people are suffering starvation through the deterioration of law and order caused by civil war and drought. Of this US$12.8 million, US$12.3 are for the World Food Programme and US$500 000 are for the United Nations Volunteers.
Japan, in consideration of the plight of afflicted people in Somalia and refugees from that country, and from a humanitarian point of view, has decided to contribute a total of US$12.8 million to the related international organizations in response to a request from the United Nations 100-Day Action Programme for Accelerated Humanitarian Assistance for Somalia. Japan's additional contribution to WFP will be mainly spent on food transportation by commercial aircraft.
Japan has extended a total of about 10 million dollars for relief of afflicted persons in Somalia and Somali refugees. Including the present aid, the total amount of aid which Japan has extended to them comes to about 23 million dollars.
In a joint operation with WFP, a part of Japan's donation to that Organization will be spent on air lifting food from Tokyo to Kenya for the afflicted people in Somalia.
Press release papers on this aid are ready at the reception desk of the Red Room.
Vishnu BHAGWAN (India): On behalf of my delegation, I should like to thank Mrs Bertini for her comprehensive overview of the WFP work as well as the challenges before it. We have read the annual report for 1991 with interest and fully endorse it. However, I wish to highlight a few points.
Firstly, 1991 has been another year of creditable performance when the WFP officers and staff have worked with diligence and devotion in getting food aid to the needy in difficult circumstances. They deserve our appreciation and congratulations for so doing.
Secondly, during the year there has been a considerable increase in WFP activities for the mitigation of natural and man-made emergencies. The overall resources of the Programme remaining the same, this has resulted in a substantial reduction in its commitment to the development which stood at about one-third of WFP, aid the lowest since 1978. We believe that, in the short term, emergencies have to be met immediately; yet in the long run, the developing countries have to be assisted in building up their national capacities in order to produce and earn more to enable them to prevent such emergencies in the future or to face them on their own. For this purpose, not only the development assistance has to be increased, but also emergency aid has to be integrated with development plans. We note with great satisfaction that the Executive Director has a similar approach.
Thirdly, my delegation would like to record its appreciation of the quick and efficient logistics and transport services of WFP which have been increasingly used by international communities and the donors. WFP's International Food Aid Information System has provided the donors and recipients with essential data on food aid operations and logistics. My delegation notes with satisfaction that the Executive Director in her recent reorganization of Headquarters, has promoted the officers of this division in recognition of the quality and importance of the task performed by them. We also congratulate these officers.
We are also pleased to note that the WFP is making larger purchases of food grains from developing countries in the operation of triangular exchange transactions, thus promoting increasing demand and remunerative prices to the producers in these countries. WFP has also paid about 45 percent of its transport-related expenditure in developing countries by utilizing their services. We should like to encourage WFP to increase this further as much as possible.
I should like to conclude by recording our pleasure at the successful finalization of the amendment of the General Regulations of the WFP during the year. This has helped in clarifying the confusion which prevailed earlier. The two organizations are now once again operating in harmony and perfect unison with each other, which is what the member states have always wanted them to do.
Ricardo VELAZQUEZ HUERTA (México): La delegación mexicana desea dar, en primer lugar, la bienvenida a la Sra. Bertini, Directora Ejecutiva del PMA, ya que es la primera vez que participa en el Consejo de la FAO, y agradecerle muy cumplidamente la exposición que ha hecho en relación con el informe que el PMA rinde a este órgano de gobierno de la FAO.
El documento presentado habla por si solo de la importante labor que el PMA desarrolla en el mundo y describe con exactitud las actividades que el PMA ha desarrollado en 1991. Quisiéramos hacer algunas observaciones:
El PMA se enfrenta al reto de una creciente demanda de ayuda alimentaria mundial con recursos cada vez más limitados.
Las necesidades que requieren atención urgente crecen hacia dimensiones alarmantes, a pesar de los esfuerzos de los países en lo individual y de la estructura politica y económica internacional para reducir los grados de pobreza y subdesarrollo. Cuando tuve la oportunidad de visitar Africa en compañía de la Sra. Bertini pude constatar el enorme grado de dificultad con que se presta la ayuda alimentaria y la labor eficaz que realiza el personal de los organismos internacionales, los gobiernos y las organizaciones no gubernamentales. Debemos felicitar a este personal por la tarea que realiza.
El PMA, en sus órganos de gobierno ha adoptado nuevas medidas que le permiten realizar su tarea de acuerdo con el momento histórico que vivimos y tiene ahora una nueva estructura, un nuevo reglamento y ha diseñado políticas que han merecido la aprobación de su Consejo para hacer eficientes sus operaciones.
México tiene el honor de presidir el órgano de gobierno del PMA y ha participado activamente en su reestructuración y su nueva toma de decisiones. Nos enorgullece ser parte de esta tarea.
La delegación mexicana ve con entusiasmo el futuro del PMA y espera que alcance plenamente su objetivo de promesas de contribución para 1993-1994 y desea que el organismo se emplee a fondo y continúe en las tareas de apoyo al desarrollo de los países.
Respaldamos firmemente al PMA y a su Directora Ejecutiva, quien hace casi siete meses tomó las riendas del PMA y ha realizado una encomiable tarea y damos sin reservas nuestro voto aprobatorio al informe presentado.
Daniel Yoman KONAN (Côte d'Ivoire): Mon pays voudrait féliciter Mme Bertini ainsi que la plupart de ses collaborateurs qui sont quotidiennement mobilisés, parfois au risque de leur propre vie, sur le continent africain, que ce soit en Somalie, au Mozambique, au Soudan, en Angola où des conflits fratricides existent encore. Bien entendu, nous suivons de très près l'évolution de la situation dans ces régions et appelons de tous nos voeux la fin de la guerre qui permettrait enfin à ces pays frères de s'orienter résolument vers les actions de développement.
A propos de développement, nous sommes également en faveur d'une recherche de rééquilibrage entre l'aide d'urgence et l'aide en faveur du développement, cette dernière étant bien sûr prioritaire. Mais nous comprenons que le PAM, confronté comme il l'est à des foyers de conflits divers, ne puisse se dérober à l'obligation morale de la communauté internationale de venir en aide aux populations en détresse.
Mon gouvernement souhaite également qu'une meilleure coordination soit obtenue sur le terrain avec toutes les autres organisations, organismes et bonnes volontés, tant au sein du système des Nations Unies qu'à l'extérieur de ce dernier.
Une autre question qui nous parait essentielle est celle de la sélection prochaine qui sera opérée au niveau des projets en cours d'exécution, entre ceux qui marchent et ceux qui ne marchent pas bien, les critères selon nous devront être particulièrement bien circonscrits pour ne pas trop pénaliser les bénéficiaires. C'est une question fondamentale dont les conséquences pour beaucoup de populations risquent d'être très difficiles, c'est le moins qu'on
puisse dire. Mais nous faisons confiance à tous ceux qui seront amenés à se pencher sur ce dossier, convaincus que les ressources actuelles du PAM ne permettent pas de mener de bout en bout ces projets, qui avaient déjà été approuvés.
C'est d'ailleurs la raison pour laquelle mon gouvernement voudrait lancer un appel à tous les donateurs afin qu'ils contribuent d'avantage aux ressources, notamment celles en espèces, pour le renforcement de l'appui logistique des projets et l'augmentation des articles non alimentaires qui sont indispensables pour améliorer l'efficacité des opérations du PAM dans beaucoup de nos pays.
Nous pensons également, à la lumière de l'amélioration des rapports entre le PAM et la FAO, que l'idée de prédisposition des stocks soit étudiée avec soin et qu'elle puisse se concrétiser. Il vous souviendra d'ailleurs que c'est une des questions abordées par le Directeur général de la FAO dans son allocution d'ouverture aux travaux de nos deux sessions.
Je voudrais maintenant aborder la question de la restructuration du PAM. C'est une excellente idée. La nouvelle responsabilisation des fonctionnaires de rang supérieur, ainsi que le recrutement envisagé d'un nombre plus élevé de personnel féminin compétent, nous paraissent être des décisions à saluer. La responsabilisation du staff va de pair avec celle du Directeur exécutif lui-même qui, comme cela est indiqué en page 17 du document CL 102/9, est désormais pleinement responsable de la gestion des fonds du PAM, à charge pour le Directeur de rendre compte directement au CPA. Souplesse et décentralisation sont indispensables pour gérer un organisme dont l'action est planétaire, comme le PAM, et c'est ce que Madame Bertini a décidé d'appliquer.
S'agissant de Mme Bertini, il est évident aux yeux de tous qu'elle a pris les commandes de l'organisation avec décision, avec dévouement et avec beaucoup d'idées. Nous apprécions particulièrement son souci de faire en sorte que le PAM retrouve un niveau plus élevé de ressources et ses visites auprès des principaux donateurs en sont un témoignage éloquent. Mme Bertini a également trouvé le temps nécessaire pour rendre visite à plusieurs pays africains et elle a pris part avec nous à la dernière Conférence régionale de la FAO à Accra, en juillet. Nous sommes très sensibles à cet intérêt qu'elle manifeste pour le problème de notre continent et lui souhaitons plein succès au cours de son mandat.
Enfin, permettez qu'au nom de mon Gouvernement j'adresse également nos vifs remerciements au PAM pour l'aide accrue consentie aux réfugiés du Libéria dans mon pays, qui sont actuellement de 300 000, venus chez nous en raison d'un conflit qui malheureusement connaît une recrudescence inquiétante pour tous les pays de notre région.
Juan NUIRY SANCHEZ (Cuba): Involuntariamente la Presidencia no vio cuando, desde el principio, solicitamos la palabra, por lo cual, a esta hora del debate no vamos a repetir lo que se ha expresado anteriormente y seremos muy breves en nuestra intervención.
Sr. Presidente, Cuba es miembro del CPA, razón por la cual hemos seguido muy de cerca todo el proceso y desarrollo para la elaboración, análisis y, finalmente, la aprobación de este documento que nos ocupa hoy en esta 13 sesión plenaria.
Su análisis fue a fondo, equilibrado y transparente, no ausente de negociaciones y fundamentalmente de un gran trabajo positivo. Podríamos resumirlo en una gran labor colectiva.
Es necesario reconocer, tanto a la Secretaría del PMA, la Mesa Directiva y la Presidencia del CPA, en fin, a todas y cada una de las delegaciones representadas en el CPA por las arduas sesiones que dedicaron a este documento.
Nuestra delegación, en aras de todos estos esfuerzos y calidad, se muestra favorable a su aprobación.
Todo lo expresado está evaluado también en el informe presentado por la Sra. Bertini, Directora Ejecutiva del PMA, la cual ha ilustrado excelente y ampliamente todo el trabajo eficaz realizado en el PMA, que nuestra delegación reconoce y tan solo desearíamos expresar nuestra esperanza de que el mismo pueda tener una divulgación más amplia, para conocimiento de todos los países. Nuestra delegación espera que los donantes sean receptivos en su solicitud en cuanto a cumplir sus compromisos para proseguir este útil y necesario trabajo para la ayuda al desarrollo.
Aunque breve, no quiere nuestra delegación dejar pasar esta oportunidad sin dejar constancia de lo expresado.
Russell MULELE (Zambia) : The Zambian delegation wishes to thank the Executive Director of the World Food Programme for the excellent and lucid presentation of the paper under discussion. My delegation would like to place on record its sincere gratitude to the international community and to the FAO and to WFP in particular for the timely and most necessary support to feed part of the Zambian population in the face of the worst devastating drought in our living memory.
The FAO-supported early warning and crop forecasting system continues to work well in our country. In fact, it was for this reason that we were able much earlier in the season to alert the international institutions and donor community about our plight resulting from drought. Zambia has indeed received generous food aid from WFP and several countries. We wish to thank them all for their generous assistance.
With regard to food aid distribution in my country, we have experienced a close and good working relationship between the donor community, NGOs, FAO, WFP and indeed our own Government. WFP has been playing a vital role in assisting our Government to prepare for the next cropping season for 1992-93 by mobilizing NGOs to take part in the distribution of inputs to farmers most affected by drought.
My delegation wishes to call on the donor community and international organizations to give full support to the WFP in order that it may fulfil its mandate. We are pleased to note, as stated in paragraph 8, that WFP and UNHCR agreed to a new working arrangement designed to give greater benefits to the refugees.
Finally, in endorsing this Annual Report, my delegation would like to hope that WFP will attain its target of pledges.
Mme Maria de Lourdes MARTINS DUARTE (Cap Vert): Monsieur le Président, nous aimerions tout d'abord vous remercier de nous avoir accordé la parole à cette heure tardive de notre débat. Nous aimerions aussi manifester notre joie de voir parmi nous le Directeur exécutif du PAM. Mme Bertini, dans d'autres instances au PAM, dans vos rencontres avec le groupe africain nous avons pu constater vos qualités et votre détermination de faire du PAM un organisme efficace qui lutte pour l’autosuffisance des populations les plus démunies. Votre intervention nous a fait le point de grands défis auxquels le PAM fait face, notamment la nécessité de fournir des aliments à un nombre toujours croissant de personnes, répondant à l'urgence avec les quantités requises.
La situation financière, l'orientation vers des programmes de développement et l'assurance d'un fonctionnement efficace de tous les programmes, nous sommes certains que ces nouvelles directives apportées au PAM porteront de bons fruits, d'abord parmi tout le personnel de l'Organisation, et ensuite parmi les autres organismes du système des Nations Unies et tous les pays membres souverains, sans vouloir les classer en donateurs et en bénéficiaires.
Cela dit, nous félicitons le PAM pour le rapport exhaustif qui nous a été soumis.
Shahid RASHID (Pakistan): My delegation also would like to thank Ms Catherine Bertini, the Executive Director of the World Food Programme, for a very detailed and comprehensive report on the activities and programmes of WFP. We greatly appreciate the efforts and initiatives she has taken to streamline this organization in order to meet the increasing demands being made on WFP.
In recent times, we have witnessed an increasing role for the Programme in helping countries cope with emergencies and disasters. The high level of emergency needs has created tremendous pressures, and we appreciate the manner in which WFP has responded to such crises. Its strengthened logistics capacity and its wealth of experience in handling emergencies is a useful resource and has enabled it to be in the vanguard of provision of humanitarian relief assistance to global level.
The partnership that is evolving between WFP and UNHCR in regard to refugee feeding operations is also a source of particular satisfaction for us. I may mention in this regard the WFP in cooperation with UNHCR has been handling one of the largest refugee operations in Pakistan for a prolonged period. I must add that it has done so admirably, and we are grateful for that.
However, the delegation of Pakistan is concerned that there has been a steady reduction in resources available for development assistance. This is rather unfortunate considering that development activities are and should remain at the heart of WFP's work. A permanent shift of the Programme from development to relief may create major gaps in development activities, and we would hope that attempts will be made to keep the focus on development. In this regard, we would like to appeal to the donors that additional resources should be made available to meet emergency and refugee feeding needs rather than redirecting resources from development projects.
Before concluding, let me also state that changes in WFP General Regulations have reinvigorated this Organization, and we have nothing but praise for the new working arrangement. I would like particularly to applaud the Executive Director and her staff for their efforts.
Chrysanthos LOIZIDES (Cyprus): On behalf of my delegation I wish to thank the Executive Director, Ms Bertini, for her very interesting report, and express our full support to the WFP and its activities to provide food and other assistance to needy countries.
Cyprus has been assisted by the WFP during the very difficult years in its post-independence history. This assistance has been really valuable to our country during that most difficult period, and we are grateful to the World Food Programme.
On this occasion I wish to inform the World Food Programme that the Government of Cyprus has decided to increase its symbolic contribution to the World Food Programme by 50 percent.
Before concluding this brief intervention, I wish to say that it is really gratifying to see the successful evolution of WFP during the last eight months under the guidance of Ms Bertini and, as so desired in the past, the close cooperation with FAO.
CHAIRMAN: I thank the Representative of Cyprus for his announcement about increasing the contribution.
Benson C. MBOGOH (Kenya): I should like to join delegates around the table who have congratulated the World Food Programme on the excellent efforts it has marshalled to mitigate the needs of millions of victims of unprecedented disasters in the year 1991 while maintaining its efforts in development assistance to these countries.
Through the steady effort of the WFP, the Organization has become the only hope of survival for many people who might otherwise have given up hope.
I take this opportunity to publicly express my Government's appreciation of the Programme and to the Executive Director and her staff for their dedication. They responded so effectively to the call of duty, often I am told at the personal peril of the field staff.
Mr Chairman, without the cooperation of the food aid donors WFP's effectiveness possibly would have been compromised. My delegation, therefore, find it appropriate to extend appreciation to all food aid donors for their contributions and urge that they continue their support for the Programme which has proved beyond doubt to be a cost-effective way of facilitating and channelling food resources.
My delegation fully supports the intensified efforts of the WFP to promote development cooperation with other agencies and donors. We believe this to be an effective way of exploiting fully the potential of the Programme to stimulate fully development in the poorest of the poor developing countries. This development and cooperation must be enhanced, not only with donors of aid, but also recipient governments themselves.
Finally, my delegation endorses the report: and fully supports the Executive Director's efforts which involve new administrative arrangements to revitalize the World Food Programme to cope with the increasing challenges of the 1990s.
Α.Ν.M. EUSUF (Bangladesh): I would like to say that the document we have before us, CFA 33/16, is an excellent piece of work. The report is very comprehensive and transparent and my delegation would like to endorse the report.
I would like to commend the World Food Programme for the excellent work done during 1991. It is indeed very heartening to note that 20 million people, including 114 million refugees and displaced people, received WFP relief food during 1991. My delegation is also pleased to note that WFP handled a record 4.8 million tonnes of food during 1991. My delegation, however, is dismayed to hear that due to resource constraints WFP commitments for development projects is declining. We are of the firm view that development projects is one area which needs special emphasis. In paragraph 10 of document CFA 33/16 it has been stated that at the end of 1991 WFP was assisting 266 ongoing development projects with total resources from WFP valued at US$3 billion. Over the life of current ongoing development projects an estimated 80 million people will receive food aid. We are, however, dismayed that at US$448 million, representing 1.44 million tonnes of food, WFP commitments for development projects in 1991 was the lowest in value terms since 1978.
We agree with paragraph 26 of the document and I quote "the ripple effects of WFP's development work can be very widespread. Whole communities can benefit from a general improvement in a region's economic development. For example, new work skills gained as a part of a WFP-assisted training programme result in improved productivity or job opportunities, leading in turn to higher family incomes".
My delegation would, therefore, urge the WFP to take steps so that development projects are not adversely affected due to resource constraints.
My delegation fully supports the establishment of a cash account - the immediate response account (IRA). I am sure IRA will very promptly respond to new emergency situations. I sincerely hope that the annual minimum target US$30 million for IRA will be fully met.
The Executive Director during her introduction mentioned that she would like to brag about the efficient work done by WFP. My delegation would like to say that this was not bragging. She stated the truth. We are fully satisfied that the WFP has done, and continues to do, an excellent job. It is no wonder that multilateral resources for WFP have increased appreciably during the last two years.
My delegation would join other delegations in complimenting Mrs Bertini, the Executive Director, and her colleagues for the excellent work done. I am sure that under her dynamic leadership the WFP will serve the people more vigorously in the coming years.
Before I conclude I would like to put on record the substantial assistance received from the WFP for the development of agricultural production, rural infrastructure, fisheries projects, forestry projects and school-feeding projects, as well as the vulnerable group development in Bangladesh. I would also like to recall with gratitude that after the devastating cyclone of April 1991, which killed an estimated 138 000 people, the WFP rushed with aid of about 300 000 tons of food. The WFP has also helped, and is still helping, to feed the refugees from across the border.
In this connection I would like to refer to the visit of our Prime Minister, Begum Khaleda Zia, to WFP during October. Begum Zia expressed satisfaction about the activities of WFP in Bangladesh. Before I conclude I would again congratulate Mrs Bertini and her colleagues for the excellent work done.
ALHAJI MAI M. JIR (Observer for Nigeria): Thank you, Mr Chairman, for giving me the floor to contribute as an observer to this debate. Let me, on behalf of our delegation, thank Mrs Bertini for the excellent job she is doing with her team and the donor communities for supporting this Programme materially and morally, especially to the assistance given to our African sisters and brothers.
I am sure with her determination and energy the World Food Programme will be vibrant and will address and assist in solving these problems.
We wish to comment on the developmental activities of WFP with the risk of repeating what has already been said. This activity is covered under paragraphs 22-23 of document CL 102/9. To our mind we consider this as real assistance to the needy. It is a long-term solution, as we advocated that this particular activity should be expanded during the FAO Regional Conference for Africa held in Ghana earlier in the year. We wish still to add our voice in urging that these activities of the Programme be strengthened and expanded. Of course, this should not be at the expense of emergency relief and we wish to appeal to donor communities to support further the programme of expanding these developmental activities.
Under the heavy weight of debt and world economic problems, developing countries and poorer countries certainly need developmental assistance.
Carlos DI MOTTOLA BALESTRA (Presidente, Comité de Finanzas): Le agradezco mucho, Sr. Presidente, por concederme el uso de la palabra. La he solicitado al final del debate únicamente por respeto a todos los señores representantes de los países miembros del Consejo; sin embargo, hubiera querido ser el primero en presentar el saludo a la distinguida Directora Ejecutiva del Comité y transmitirle también el saludo de todo el Comité de Finanzas.
Deseo asegurar a la Sra. Bertini el propósito de una colaboración cordial, continua y eficaz y debemos destacar que esta colaboración se ha fortalecido y se ha hecho extremadamente amistosa y útil durante los siete meses en que ella lleva la Dirección del Programa. Hemos tomado nota del informe que nos ha presentado tan exhaustivo y completo. En este informe se pone de relieve la actividad del PMA a fin de aliviar la aguda crisis que hay en el mundo. Todo el mundo habla de Naciones Unidas, pero nadie se da cuenta de que es prácticamente el PMA y sus funcionarios los que están presentes en las zonas más calientes del mundo y se enfrentan a situaciones que son de carácter político y militar como, por ejemplo, en Somalia, donde obstaculizan estas actividades y donde ellos ponen en peligro sus vidas y despliegan esfuerzos realmente admirables.
Hemos tomado nota de lo que nos ha informado la Sra. Bertini sobre el déficit de 400 000 toneladas de alimentos para cumplir con programas ya comprometidos. Esta es una situación que ya conocíamos y que preocupaba al Comité y deseamos expresar el pleno apoyo del Comité por las actividades que está desplegando para tratar de resolver el problema y minimizar el impacto de este déficit
inicial y, al mismo tiempo, queremos manifestar nuestro aprecio para los países que ya han asegurado un apoyo consistente que, verdaderamente, ayudará a resolver el problema o a disminuir su importancia.
Ms Catherine A. BERTINI (Executive Director, World Food Programme): I do not feel I have many answers to give. I would like to summarize though that I think the comments you have made to which I should respond come in four basic categories. One is: WFP has done good work, thank you very much. Two: You have done good work but keep on working on these issues. Three: You are going in the right direction but you have a lot more work to do. Four: You have much more work to do.
If I may attempt to summarize those categories, firstly I thank you very much for the kind comments made by so many delegations about the staff of the WFP, the dedication of the staff, the hard work of the staff, both in Rome and in the field. There was particular mention by many of you to the very difficult situations that many people working for WFP face in the field. I thank you for your support and kind words which we will communicate to our staff.
Many of you mention the relationship between FAO and WFP. I will take the opportunity to thank you on behalf of us both for those kind words about our constructive relationship.
Third, many people think the donors indeed deserve substantial thanks for their work, particularly in emergency operations and their contributions to emergency operations. I might also mention that since many people have complimented us on our work, one of the reasons why we have been able to be as effective as we are is because of the establishment of the Immediate Response Account. In this process I thank Sweden for their significant support not only of this concept but for their gift to help it get off the ground.
Under the category of "good work but keep working on these areas", I would start with the UN relations, particularly DHA which was mentioned by a couple of delegates. We do enjoy a good relationship with DHA and will continue to support their efforts and also the work with the UNHCR.
Many of you commented on our new relationship being a good and constructive one. As several of you mentioned, it requires continued additional effort to keep that up.
A second area in this category is our work in the effort of continuing to build efficient operations and organization of the World Food Programme, in Headquarters and certainly the field. Many of you mentioned positively our organizational changes - I appreciate that - and our efforts towards project reviews and emergency efforts.
I want to assure you and those delegates who mentioned it that in our work of reviewing projects we will give merit the top priority and we will do all of our work in a totally open atmosphere, so that we will work very closely with the governments which might be affected in the process. Certainly we will not surprise anyone in this process because we will have a collaborative and fair effort in this regard.
On emergency efforts, India congratulated us on our transport work. We thank you very much. We point to a report that was recently completed by the
European Community which commends the transportation and logistic work of the World Food Programme, as well as to a report done by the Audit which has similar comments. We also agreed with the delegate of Sweden that we must continue to ensure that we are providing very swift response to emergencies and make that response as efficient as possible.
Many delegates mentioned the general regulations, the change in governance affecting the World Food Programme.
The people we help around the world will be the ultimate beneficiaries of these changes on which many of you have worked for many years. I am the manager who is the beneficiary of the changes, since I came in during April under the new umbrella of this Organization and have been able to operate accordingly.
Many of you mentioned the establishment of the IEFR as a constructive new approach. It is and we certainly will continue to strengthen that and to work with donors to support that effort. We do appreciate the fact that the Director-General did talk about this in his discussion earlier.
The delegate of India mentioned triangular transactions. We agree it is very important for us to use as much of our purchasing power as possible to buy commodities and other products in developing countries. In 1992 we expect that our total for these purchases will be over US$200 million and a very large proportion of this is being spent in developing countries. Of course, it has helped dramatically when donors contribute cash to our programmes.
In the areas of the "right direction but a lot of work to do", I would put the NGO relations that many of you mentioned certainly supported efforts towards closer collaboration with NGOs. We have much more work to do in this area.
Second is the strengthening of the connection between development and emergencies which was mentioned by several delegates here today. We will certainly continue to work on two fronts. One is to ensure that our development programmes have disaster mitigation components or emergency mitigation components. The second is that when we have long-term emergency situations, we look for ways in which we can build in development components to those.
Finally, mention was also made by two delegations of non-food items and the need for additional non-food items.
In the area of "much more work needs to be done", the fourth area I will summarize, one topic in this area is the additional need for development resources. It was mentioned by many people. I think it is one matter of which we are all well aware. We will certainly do our best to answer the comment from the delegate of Bangladesh not to adversely affect the development programmes that we have within the constraints of the resources we have available but we will also work on the long term. I certainly expect to work over my entire five-year term here with the donors in an effort to prove to the donors that WFP is a very efficient operator and a good place in which to invest their limited resources.
As I mentioned, we have had excellent meetings in this regard with donors. I appreciate that very much. I thank Cyprus also for its announcement today that it will increase its contribution by 50 percent.
In the area of "much more work to be done" also exists the issue of managing the cash situation and the long-term cash requirements of the World Food Programme, an issue of course that is on our priority list and is very important for the long-term well-being of the Programme.
Finally, in this area, the delegations of Cuba, China and Côte d'Ivoire mentioned women in WFP. We certainly have an important responsibility to ensure that the needs, the concerns, the options, the futures of women in developing countries are well served by the projects which we manage.
We also have that responsibility here at Headquarters where only 19 percent of our professional staff is women. You can be sure that we will be working in both of those areas as well.
Finally, might I thank a few people. The Prime Minister of Bangladesh graced us with her presence at WFP Headquarters. We consider it a high honour that she should come to WFP Headquarters and thank the World Food Programme for its efforts. It meant a lot to the staff of the World Food Programme who work in all countries throughout the world.
We had the honour this week of hosting the Prime Minister of Chad. We are most honoured by his visit as well.
I have special thanks for the Chairman of CFA, Minister Ricardo Velazquez, whose leadership, guidance and counsel have taken us a long way this year since he became Chairman in May. We appreciate his advice, his counsel, his leadership and certainly his chairmanship in conducting the meetings of the CFA and his continued advice over the remainder of his term until next May.
I thank Mr Ahmed and the gentlemen from WFP who have joined me here today and who have come to offer information and assistance to you.
I thank Mr Hjort because it is he and I who are actually doing much of the work in the process of working on the relationship between the technical bodies and the support staff of WFP and FAO.
I also thank the Chairman of the Finance Committee, not only for his remarks, but for his counsel and his guidance in the past and certainly in the future.
We will all continue to work in the spirit of dialogue, in the spirit of partnership, in an open atmosphere, in order to do the best that we can do together to help the people in need throughout the world. I thank you for your appreciation, for your assurances of support and for your constructive efforts together on behalf of the poor and the hungry in the world.
C. B. HOUTMAN (Netherlands): I just want to make sure that no wrong impression has been given on a certain situation. I think the delegate of Pakistan said that he was afraid that there was a re-direction of funds from the Regular Programme, from the project programme to emergencies. I do not think that is the case. I think it is right to mention this here because it is fairly difficult to get rid of a wrong impression.
LE PRESIDENT: Nous arrivons au terme de l'examen du rapport annuel du comité des politiques et programmes d'aide alimentaire. Le Programme alimentaire
mondial connaît actuellement de nombreux défis dans plusieurs régions du monde, en Somalie, au Soudan, en Afrique du Sud, au Mozambique, en Irak, en Afghanistan, dans l’ex-Yougoslavie, dans l'ex-URSS, en Haïti. C'est une tâche extrêmement lourde de concilier à la fois les besoins d'aide d'urgence et d'aide aux réfugiés, et ce en étroite relation avec la FAO, ainsi que cela a été souligné par vous, Madame le Directeur exécutif, à des très nombreuses reprises, notamment pour l'ensemble des projets axés plus spécifiquement sur le développement.
Le Directeur général a souligné dans son discours introductif la nécessité de tenter d'améliorer le fonctionnement de la réserve alimentaire internationale d'urgence. Il a fait quatre propositions à ce sujet: donner à la réserve alimentaire internationale d'urgence le caractère d'une convention ayant force obligatoire; prévoir une réserve immédiatement disponible dont le volume varierait entre 500 000 et un million de tonnes; mettre à la disposition de la réserve alimentaire internationale d'urgence une partie des contributions en espèces au titre de la convention d'aide alimentaire; et, ce qui est particulièrement important sur le plan de la stratégie opérationnelle, prépositionner les stocks.
Le CPA a déjà approuvé la constitution de ce qui a été appelé le compte d'interventions immédiates avec un objectif de 30 millions de dollars.
Incontestablement, en quelques mois, de nombreux efforts ont été accomplis par le Programme alimentaire mondial et je tiens à en remercier non seulement Madame le Directeur Exécutif mais également tout son personnel, notamment Monsieur Ahmed, Assistant Directeur général, pour tout le travail qu'il a effectué. Néanmoins, il reste encore beaucoup de choses à faire.
Je demande maintenant aux membres du Conseil si je peux considérer le dix-septième rapport annuel comme adopté?
Je pense que notre débat a été fort intéressant. J'en profite pour remercier tout le personnel concerné du Programme alimentaire mondial d'avoir participé à la discussion et tout spécialement Madame le Directeur exécutif.
Y a-t-il des remarques concernant l'approbation de ce rapport?
Tel n'étant pas le cas, le rapport est adopté.
LE PRESIDENT: Le point 16 traite des arrangements concernant les dépenses d'appui des programmes de la FAO financés par des fonds fiduciaires. Nous nous
référons à une série de documents: le document CL 102/17, le document de base étant le CL 102/18 "Fiduciaires, remboursement des dépenses d'appui" et le document CL 102/18 - Sup.1.
Il s'agit là d'un point particulièrement important dont nous poursuivrons l'examen cet après-midi.
Je voudrais demander maintenant à Monsieur Shah, Assistant Directeur général de présenter ce point.
V.J. SHAH (Deputy Director-General, Office of Programme, Budget and Evaluation): At the outset, let me ask for your indulgence and ask you to be kind enough and patient enough to permit me to introduce this item comprehensively in all its aspects, because it is a fairly important issue, and, as distinguished delegates will have seen from the documents we have submitted, it is a fairly complex issue. Therefore, if you will allow me a few minutes more than my normal introduction, I would submit that this might facilitate your debate. On that basis, I shall try to be as brief as possible.
The document submitted to the Council makes it clear, I trust, that the subject is not limited solely to the budgetary or financial aspects of the level of support cost reimbursement relating to the Trust Fund Programme. The subject which is before you deals with the governance, the management and the quality of the Trust Fund Programme. It is for this reason that we hope the Council will accord it the importance it deserves.
Let me start with a few words about the overall context of field operations and FAO's role in field operations. We all start, of course, from the constitutional provision which provides that this Organization shall furnish such technical assistance as governments may request.
From that provision I would go to the judgement of the Conference itself on FAO's field operations. This subject was amply considered by the Conference in the Review of Certain Aspects of FAO's Goals and Operations and the Conference recognized in its conclusion of this review the catalytic importance of FAO's field operations to all Member Nations, recipients and donors alike. In partnership with member countries, in the judgement of the Conference, the Field Programme gives concrete expression to FAO's aims and objectives and makes its presence and impact felt in developing member countries. Through its technical support, the Regular Programme makes technical and analytical work available to field projects and in turn receives data and feedback from the field to strengthen the technical content of the Regular Programme activities and to update the information base.
On this occasion we are not dealing with the entire Field Programme. The proposal, as you know, deals with the Trust Fund component of the Field Programme. Therefore let me situate the relative importance of the Trust Fund component.
Taking the figures for delivery in the last year for the Field Programme as a whole, the Technical Cooperation Programme, TCP, which is part of the regular budget, accounted for 8 percent, UNDP for 44 percent and Trust Funds for 48 percent. Thus the Trust Fund component is the largest single component of the Field Programme, but, as the Council will recognize from its own experience, the Trust Fund Programme does not constitute a single category.
Within the Trust Fund Programme, we have to distinguish between the unilateral Trust Funds, the government cooperative programmes, and the Trust Funds for special purposes.
What is the regime which affects these Trust Funds? It was in 1981 that the Conference established the current regime effecting the Trust Fund Programme and the support cost reimbursement. This is described in paragraph 15 of the document. I shall therefore not go into detail. Basically there is a servicing cost rate of 13 percent of total direct costs, but there are a number of exceptions which have been described in the document.
The Finance Committee receives each year a report on the results of the cost measurement system which indicates the annual project delivery, the support costs incurred, the reimbursement received and the extent of subsidy from the Regular Programme. The results of this cost measurement system are before you in the report of the Finance Committee from its 74th Session, document CL 102/17.
The most striking factor which I would draw to your attention is that, while support costs as a percentage of delivery are fairly constant, the gap between the support costs and the reimbursement received from Trust Fund donors continues to increase. This gap is increasingly widening. In 1985 the gap amounted to US$6.7 million. By last year, 1991, it had risen to US$13.4 million. Even if we adjust the 1985 figure to current costs, using published economic indicators, the gap has increased by close to 50 percent during this period. This is one of the key issues which provides a basis for the proposals which are before you.
Let me turn now to the problem related to the current arrangements. There are two major problems, as we see them. Firstly, there is the changing nature of the services requested from FAO for Trust Fund Programmes. To give you one example, there is a need for technical backstopping services at times in isolation from project implementation services. Another example is that when selected services only are requested. For example, we may only be asked to provide some inputs. If we are only asked to do the training component of a project, which is the most expensive input to deliver - according to the UNDP study it averaged 30.4 percent - compare that cost of 30.4 percent with our earning of only 13 percent. Another example relates to fellowships. If we are only asked to "place" a fellow in a research institution or in a university but are not required to service that fellowship for its duration, we would only receive a fraction of the reimbursement to cover the cost. Then there is also the changing nature of inputs. If we appoint one expert for two years, we incur the cost of recruitment of that expert only once, but, if we are required to appoint four consultants for six months each, then the current 13 percent arrangement will earn the same support cost reimbursement even though we have to incur the cost four times over.
The nature of projects is changing in other ways, too, in the nature of skills desired. The demands of developing countries are increasingly more sophisticated, and rightly so. Ten years ago it would have been normal for FAO to be requested to provide an agronomist, whereas now many, if not most, developing countries have well-qualified agronomists of their own, and, rather than being asked to provide one expert, one agronomist, we are asked to provide field expertise in biotechnology or in plant genetics, expertise which is much more costly to recruit.
Another aspect of the problem is the cause of the widening gap between the cost and the reimbursement, to which I alluded a few minutes ago. Short-term personnel are more costly to deliver. The percentage-based income declines with a reduced cost base which we face when we recruit national personnel. Finally, there are the inflation factors which are applied to support costs, as compared to average international inflation rates.
These are the problems which are not new to distinguished members of the Council. We had drawn them to the attention of the Conference, you will recall, at its last session in 1991. The Conference recognized the need to consider a revised regime for the reimbursement of support costs for the Trust Fund Programme. Many Member Nations at that Conference expressed the view that the proposed study should take account of the UNDP support cost successor arrangements. To the extent possible, these same Member Nations advocated a uniform approach to the application of new support costs arrangements to our Trust Fund Programme. The Conference concluded that our study of the matter should be submitted to you at the present session through the Programme and Finance Committees and that is what we have done.
In the Conference discussion there was one issue on which there was a very striking difference of opinion among Member Nations. That concerns the level of Regular Programme subsidy which Member Nations consider acceptable. There are basically two positions as we review the Conference records and the Conference report. One position is that the cost of support services should be borne as a principle fully by the Trust Fund Programmes concerned. The other position is that some degree of cost-sharing from the Regular Programme is right and proper, as in the case of the UNDP-funded programme, in view of the benefits which occur to the Regular Programme activities.
We cannot hide this difference of opinion and in the document which is before you we have tried to face this issue as squarely as we can. I would venture to suggest that the extremity of either of these positions is not likely to lead to a viable solution in the interest of the Organization as a whole. To argue that the Trust Fund Programme should be financially totally self-supporting, totally independent of the rest of the Organization's resources, is to beg the question as to why there should be an FAO Trust Fund Programme at all.
On the other hand, a high level of subsidy from the regular budget cannot continue to be viable, given the fact that there is a differing degree of involvement and interest among Member Nations in participating in the Trust Fund Programme. The solutions proposed, I hope, will be recognized by the Council as the basis for a possible consensus.
The Director-General has approached the possible new arrangements with the following objectives: any new arrangement should strengthen the Field Programme under Trust Funds by maximizing the response to the needs of recipient countries in term of quality and appropriateness of the services concerned; secondly, maximize the use of the Trust Fund resources in terms of economy, effectiveness and efficiency of the services provided, thus giving the best value for money; thirdly, permit the containment and reduction of the regular budget subsidy to the Field Programme, apportioning costs equitably between donors, recipient governments and FAO; fourthly, provide for reimbursement to be specifically related to the costs of the services defined in the project budget and agreed to by the donors, the recipient governments and FAO; fifthly, permit optional approaches for specific or groups of
projects, thus reflecting the varied nature of Trust Fund Programmes; sixth, provide Trust Fund donors and recipient governments with a clearer presentation of the budgetary provision for support costs, transparency in the development of the rates and a more complete accountability in the costs incurred and the services rendered; finally, accommodate all this in a system and methodology which would be easy to understand and apply.
In order to obtain the best advice to complement the expertise available within the Secretariat, we have used a prominent firm of consultants, David M. Griffith and Associates Ltd. of the USA. I would point out that this is the same consultancy firm which was used by the UNDP and the agencies in the development of the new UNDP arrangements. This has had many advantages, including the fact that the consultant started with a detailed knowledge of FAO's cost structure, and the relationship of any arrangements proposed for the Trust Fund Programme to the successor arrangements that you Member Nations have already accepted for the Field Programme funded under UNDP.
In the interest of a thorough and circumspect debate of all issues and proposals involved, the report of the consultant and the annex dealing with calculations of rates and charges were made available in full to the Programme and Finance Committees when they considered this item in September. The reports are also available to the Council, but, for reasons of economy, they are only in the original language, English.
We have also arranged for a representative of the consultant, Mr Michael Gotthainer, who is the gentleman sitting at my far left, to be present. He was also available to the Programme and Finance Committees. You may put any question you wish to him relating to the consultant's report.
What is now proposed? For the convenience of the Council we have issued in document CL 102/18, addendum 1, a schematic table which shows the summary of the recommendations made by the consultants, David M. Griffith. I draw your attention to it but do not repeat what it contains.
What would these recommendations mean for a Trust Fund project? We went through the details of present and future budgets with the Programme and Finance Committees. To give you one example, take one sample Trust Fund project which may have a duration of three years and a budget of US$1 768 000: under the current regime this project would be charged at 13 percent support cost rate, which amounts to US$229 840. The total cost would thus be US$1 997 840, just under 2 million dollars.
The same project, when subjected to proposed new arrangements, would have a total project budget cost of US$2 126 468. It would cost US$128 628 more.
However, this higher cost would be for two very distinct purposes: there would be a higher charge for administrative and operational support of some US$64 000, and a higher charge for specific, identifiable and enhanced technical backstopping, for which there would be a specific provision made of another US$64 000.
I emphasize this to show that it is not a matter of a straight dollar comparison between the present rate and the future charge. The proposed charge makes a specific provision for improving the quality of the project through further and identified technical backstopping. Of course, this is to the
benefit of the recipient country and it is in the interest of the Trust Fund donors themselves.
I have given only one example, but we went through a sample of 20 projects to see what the possible new rates would involve. I will not try to flood you with figures. I would only admit that under the present regime those 20 projects would be subjected to either the 13 percent charge or the flexible charge at a lower rate, according to our present arrangements, and under the new regime the charges would be higher. Clearly I will not hide that. The higher charges would depend on the type of project and the component of the services to be provided.
The obvious question that these results beg is whether these proposed rates, the possible new rates, are too low or too high. We also asked the consultant this question and the answer is to be found in paragraphs 4 and 5 of the annex on rates and charges. However, since that document is only available in English, permit me to read just two paragraphs so that they may be heard in all other languages.
The consultant says in these paragraphs:
"4. In general, the rates proposed and the 31.9 percent which we indicated are the total costs incurred by FAO in support of field projects, compare favourably with those used by large public and private sector institutions and NGOs in the USA to obtain reimbursement from the U.S. Federal Government for project support services. Based upon a 1990 summary of the college and university research organizations in the U.S.A. administering the largest amounts of federal grants, the average composite rate for private institutions was 59.26 percent of direct costs and for public institutions 47.49 percent. In large NGOs a typical rate is 31 percent or higher.
5. The rates for FAO, and for all of the specialized United Nations agencies which participated in the study are at or below these averages. Unfortunately, most of the rates used by international organizations are based upon historical negotiation rather than cost, and it is, therefore, difficult to make comparisons between such rates and those computed based upon actual costs. However, a review of multinational and regional organizations which charge the U.S. Government for support costs indicates rates from 25 to 30 percent, and often these rates have been adjusted to reflect cost-sharing formulas."
Allow me to point out very clearly that the rates and charges which have been described in the document before you are those recommended by the consultant. We find them logical and reasonable. However, I want to stress that these rates and charges are not now being proposed by the Director-General in order to seek Council approval. Indeed, the Director-General wishes to have the benefit of your reactions to these suggestions. He wishes to take your reactions into account before making his proposal to the Council next year - again through the Programme and Finance Committees.
The lump sum rates, which are described as suggestions, the component rates and the monthly billing rates for technical services would not be set once and for all. They would be established for each biennium, based upon the adopted FAO budget. The initial rates would be developed upon the budgeted costs for the 1992-93 biennium. Once the methodology has been adopted, the computation of these rates will be totally transparent, the rates will be based upon
specified principles, and the calculation tied to the FAO budget as adopted by the Conference. This can be accomplished along with the UNDP cost measurement study which will be used by FAO and the other agencies to compute the rates for the UNDP arrangements in the successor regime.
In each biennium FAO would also prepare a calculation of the actual support costs reimbursement and expenditures so that donors can be certain that the charge rates reflect the actual costs of the support services provided. Any major changes which are computed would be reflected in the rates and charges for the succeeding biennium.
I am taking pains to point out all these aspects, but would point out that we do have the resources necessary to implement such a system, if it is approved, without significant additional costs, since we are doing similar work and will have to do it for the UNDP regime. But we must clear that the system will require project budgets to be more detailed, more accurate and also more easily adjustable. It will be essential that some of the additional financial resources generated be directed towards strengthening project preparation, particularly at the formulation and appraisal stages. Otherwise, the system will create a burden on donors and the Organization, which we would not advocate; nor would you wish to accept.
We have indicated in the document the preliminary reactions that we had from some of the Trust Fund donor representatives, but we have done so in a very non-committal way. However, may I say that the matter is not just between Trust Fund donors and the Organization, the Secretariat; it is a matter for all Member Nations. Accordingly, the Council will no doubt wish to attach importance to the views of the Programme and Finance Committees, and I understand that the Chairman of the Programme Committee, Dr Bommer, who chaired the discussions at the joint session, will wish to address the Council immediately following my presentation.
Let me now come to the conclusions. We believe that the proposals provide a basis for strengthening the Trust Fund Programme through the strengthening of the design of programmes and projects, as well as the quality of the technical and operational services which are required to be provided by FAO. This is in the common interest of donors and recipients alike. The system which is suggested allows for a clear identification of the nature and level of the services, together with their costs. The suggestions permit recognition of the different levels and types of services which FAO may be called upon to provide, with the possibility of donors and recipients jointly determining exactly what they want.
Some representatives of Member Nations - and we heard this in the Programme and Finance Committee - entertain a fear that any proposal involving higher support cost charges may result in a reduction of the Trust Fund Programme. This is not the intention of the suggestions; or need it be an inevitable outcome. I would point out that, after all, the Trust Fund Programme would be in danger of diminishing if donors and recipients are not satisfied with its quality. It is also in danger of diminishing if it is financially not viable.
I humbly suggest that the only approach to take in such a matter is a positive one - a positive one with serenity and with strength of conviction, and with the expectation that the improvements suggested must result in an improved quality of the Trust Fund Programme, which in itself will lead to an expanded Trust Fund Programme.
We are gratified by the support given by the Programme and Finance Committee to the Director-General's approach and objectives, and to the proposed methodology for the revised arrangements. I venture to hope that in the light of the advice which the Programme and Finance Committees submit to you, the Council may see its way to agreeing on a new regime for the Trust Fund programme so as to enhance its benefits for all Member Nations, whether they be recipients of technical cooperation, donors of Trust Funds, or just Member Nations of this Organization.
The Director-General is keenly interested in your reactions in order to determine further action he may wish to propose to you.
CHAIRMAN: We thank Mr Shah for his very interesting and complete introduction to this very important matter. Before giving the floor to the members of the Council, I should like to give the floor now to the Chairman of the Programme Committee, Dr Bommer.
D. BOMMER (Chairman, Programme Committee): As Mr Shah has mentioned, the Programme and Finance Committees in a joint session had a very thorough discussion of this important matter, and you, Mr Chairman, participated all the way along, in following the ideas which developed through this debate.
As you have noted, the outcome of our session is reflected in the report in document CL 102/17. We had the benefit not only of the Secretariat but also the consultant with us in this discussion, and we certainly had access to the full report of the consultant and the annexes.
The Committees, who were unanimous in holding the fundamental view that the field programme is an essential component of FAO's role and objectives, expressed concern at the widening gap between support costs and their reimbursement. They welcomed the efforts made by the Director-General to address this issue and commended the work done by the consultant in defining a methodology which identifies, on a clear and rational basis, the full costs incurred in supporting the field programme.
The Committees agreed that the document provides an excellent basis for full discussion by the Council. They endorsed the methodology for the identification of support costs and commended it to the Council. They noted that the proposed methodology permitted adaptation to the varying requirements of individual projects, and was therefore sufficiently flexible to meet the required variety of projects.
There was unanimous agreement that the extent of support costs reimbursement should be increased to cover all indirect incremental costs. This, the Committees felt, was in line with the general principle - to which I think the Conference agreed - that support costs should be borne by the donor to the maximum extent possible.
Concerning fixed indirect costs, in particular the costs incurred by FAO central administrative support services, the Committees took note of the consultant's argument that such costs should continue to be financed from the Regular Programme in the best interests of the Organization. The object is to preserve infrastructure funding from the dangers of making it dependent on volume-related activities. Indeed, the volume of technical assistance may well
be subject to adverse variations through time and, thus, if fixed indirect costs are linked to them, such variations could negatively affect the Organization's ability to continue to provide basic administrative services. Some members however felt that these fixed indirect costs should nevertheless be recovered, and the Committees agreed that this aspect was best left to the Council for further consideration.
The Committees fully agreed that they did not want to see the total level of Trust Fund resources for technical assistance reduced. They appreciated that the new methodology for charging support costs went beyond the issue of the level of support cost reimbursement and was, in fact, aimed at enhancing the quality of Trust Fund governance and operations, and improving cost effectiveness better to respond to the needs of both Trust Fund donors and recipient countries. The Committees expressed the hope that the expected improvements in the quality of project services would indeed result in an increased Trust Fund Programme and commend the proposals for endorsement by the Council.
Vishnu BHAGWAN (India): I thank the Secretariat for an excellent document indicating the background problems relating to the current approach and the issues involved, and the merits of the consultant's proposals. My delegation has found this document very interesting and analytical. I should also like to thank Mr Shah for his very comprehensive and complete presentation, and the Chairman of the Programme Committee for his comments.
Let me begin by emphasizing the important constitutional responsibility of FAO to furnish such technical assistance as governments may request.
In this connection there is a close relationship which exists between the Regular and Field programmes of FAO. Through its technical support, Mr Chairman, the Regular Programme makes its technical and analytical work available to the field projects and, in turn, receives data and feedback from the field to strengthen the technical contents of its own activities and to update this information base. These two-way interactions entail the recognition of FAO not only as a centre of excellence and technical knowledge in the field of agriculture, fisheries and forestry, but also to transmit this knowledge through the field to its projects.
This interaction is achieved in practice by the three types of projects as mentioned by Mr Shah in his introduction and these three sources are the UNDP, the TCP and the Trust Fund Programme; the third one being the most important as it brings in about 48 percent of the entire resources reimbursement in this regard. However, the increasing gap between the support costs and the reimbursement, as indicated in the graph on page 5 of the document, clearly establishes the need to look into the matter.
My delegation welcomes FAO's initiative in appointing a special consultant to conduct a study to analyze the cost support services provided to Trust Fund projects and to recommend a new methodology in this regard.
Coming to the recommendations of the consultant, Mr Chairman, my delegation has the following comments to offer. The revised arrangements suggested provide a flexible combination of rates and charges for different topics and levels of services to be provided. They strengthen the Trust Fund Programme by enhancing the quality of technical and operational services and the system
proposed allows for a clear identification of the nature and level of services together with their costs.
The clear provision and presentation of improved budget formats will result in greater transparency and cost control by donors and recipients alike. The proposed changes in the methodology are such that they would benefit the donors and the recipients alike. It would provide FAO with sufficient financial resources to maintain and even enhance the provision of quality services and improvements in the quality of Trust Fund Programmes. This is also likely to result in an increased and strengthened Trust Fund Programme.
My delegation supports the proposal for enhancing and devising the methodology of calculating the rate of reimbursement for support costs. We also support the consultant's proposal that the costs incurred by FAO's central administration services should continue to be financed by the Regular Programmes as it will avoid making infrastructure funding dependent on volume-related activities. In addition, there are the benefits which will accrue to the Regular Programme from the field activities in the form of data and feedback information which should make some degree of cost sharing acceptable. My delegation is of the view that this will strike a balance between the cost of the services rendered by the Organization so as to ensure that the donors will not shun the Organization but, on the other hand, they will increase the Trust Fund Programme of the Organization.
The meeting rose at 12.45 hours.
La séance est levée à 12 h 45.
Se levanta la sesión a las 12.45 horas.
