I. MAJOR TRENDS AND POLICIES IN FOOD AND AGRICULTURE (continued)
I. PRINCIPALES TENDANCES ET POLITIQUES EN MATIERE D'ALIMENTATION ET D'AGRICULTURE (suite)
I. PRINCIPALES TENDENCIAS Y POLITICAS EN LA AGRICULTURA Y LA ALIMENTACION (continuación)

Je crois également que, dans ce cadre, des opérations triangulaires revêtent une importance particulière pour un certain nombre de pays en voie de développement ce type d'opérations sont incontestablement.denature à assurer également leur propre développement.

CHAIRMAN: May I invite the attention of delegates to document C 87/20-Sup.1, page 95, where it is clearly indicated the Belgium is one of the seven countries which responded to the questionnaire sent in the consultation. It is also one of the three respondents who indicated that they supplied aid-in-kind in agricultural inputs to the African countries outside the technical assistance projects for forei:gn exchange credits. It also bears out on page 96 that we should bear in mind that Belgium is possibly one country which did not impose more than one condition on the supply of goods.

In this context, the detailed intervention made by the delegate of Belgium is of particular value because of the positive attitude to the subject under discussion.

Mohamed El Bashir MUFARAH (Sudan) (original language Arabic): I have studied the report which is very interesting. The writer has analysed the negative and positive aspects and ended with proposal for work which can be implemented and applied to all sorts of aid, on condition that agreement be sought on such measures with the recipient and the donor countries.

As this appears in paragraph 163 of the report, allow me to present some comments and proposals which I think will be profitable for the rationalization of work to increase the benefit of such aid

First of all, in paragraph 22 the report says that there is a limited demand for agricultural products. I do not think this applies to all African countries, although it might exist in certain areas which have not traditionally practised the consumption of certain livestock products. There is a lot of demand for dairy and meat products as well as eggs in most African countries. These are also an important source of income for a large number of citizens. However, as the report says, there is a lack of convenient means of delivery, transportation and storage. They also need support in order to improve productivity. Therefore, I agree with the proposal to improve the means of preparation, delivery, transportation and storage in order to improve the livestock industry which has been receiving more acceptance from the private sector and small producers.

However, I feel that the funding should be extended to improve productivity through the improvement of breeding and nutrition, and also by providing convenient economic and medical care as well as veterinary services.

In paragraph 33 I should like to add another source of food which has not received suitable attention. In most pastoral areas in Africa, which is known as the coastal belt, there is a surplus of fodder plants during the rainy season. There are also field product plants and the residuals of the harvests. All these feeds are destroyed either by fire, by insects or the wind during the drought season after the departure of the herds. Therefore, the drought season is considered to increase suffering and loss of carotene, protein and energy in the resident herds, which leads to lower production and the spread of malnutrition among the animals.

Therefore, I suggest that we extend aid to the owners of the resident herds, through the ministers concerned, to enable them to harvest the fodder plants in the pastures and in the farms, and to preserve them as dried feed, that is to say as hay or silage. These operations need little financial aid and little experience and training, apart from the need for certain machines such as feed cutters and the building of silos and storage for hay and other agricultural residues, on the condition that the operation of cutting these plants from the land does not lead to soil erosion.

We could also make the molasses cubes, which would include the energy from molasses and nitrogen from urea and other minerals from the mineral salts. These cubes are produced now in the Sudan through the aid of the British Ministry for Overseas Development. These cubes of concentrates can be transported and stored, and the cattle like them. Therefore, there is increasing demand from the owners of both resident and migrant cattle for these cubes. In the Sudan we are trying to increase the productivity of the factory so as to enable these cubes to reach the cattle breeding areas in far off water points in the Sudan.

Therefore, we suggest that the FAO should provide aid to the coastal belt countries and other countries which have the raw material for such concentrates, so that they can use them to improve livestock products, provided that a feasibility study is carried out before we start producing these cubes in the country and area concerned.

The report says that the monitoring of expenditure will always be present and that lavishness in expenditure will not be allowed and that only real requirements will be financed and supported. In fact, countries which need such aid are the poor countries which are suffering from external debts which have led to the slowing down of their growth and productivity and to their inability to exploit human and natural resources.

Once more, I should like to thank the Secretariat for the information in the report and for the proposals for the rationalisation of expenditure on agricultural development in Africa.

WU TIANXI (China) (original language Chinese): Following the 90th Session of the Council, FAO has undertaken many feasibility studies on the implementation of aid-in-kind for Africa. The need of African countries in agricultural inputs and their self-sufficiency were estimated, and programmes on aid-in-kind for Africa were drawn up. The relèvent studies have summed up past experience in the practice of aid-in-kind and drawn the proper lessons. Here we would like to express our appreciation for the keen sense of responsibility demonstrated in this task. Now, allow me to say a few words on this item.

Aid-in-kind was practised in the past. For instance, the International Fertilizer Assistance Scheme of FAO and, more recently, the pesticides provided to African countries to combat locusts, have achieved good results. They made up for the shortfall of the low-income developing countries in agricultural inputs, and served to increase and strengthen their agricultural production. This positive rate of aid-in-kind should be affirmed and enhanced. Practice shows that aid-in-kind serves as a vital supplement to the financial, technical and food aid given to the developing countries. These two means of providing aid are complementary and mutually promoting when provided in parallel.

We have noted that the proposed programme stems from the need for a 2% annual growth rate in African agriculture - a figure which slightly exceeds the continent's annual rate of population increase. It seems to us that the target is not only based on the actual needs but on what is obtainable. Currently, many developed countries are facing depressed markets for fertilizers and agricultural inputs and are forced to resort to structural contraction. Paragraphs 92-95 of Document 87/20 contains an excellent analysis of the situation. It points out that the benefits which the developed countries derived from giving input-aid will equal those enjoyed by the recipient countries. We agree entirely with this view.

Paragraph 163 of the Report contains 11 guidelines for the formulation of input-aid of a minimum of three to five years duration. These guidelines stress the planned implementation of aid-in-kind, encourage the setting up of indigenous industries of the recipient countries and the launching of triangular transactions and agricultural trade among the developing countries themselves. It calls for greater attention to the improvement and protection of the existing system of marketing in the recipient countries and distribution of donated items based on the strict observance. It also calls for intensified efforts in upgrading training, marketing and service, etc. All these are very sound ideas which can help the developing countries embark gradually on the road to self-reliance. We endorse and support in principle these guidelines.

We earnestly hope that the traditional donors will give active support to the aid-in-kind report and the afore-mentioned guidelines, so that it will be implemented for Africa at an early date. We also hope that the recipient countries will adopt necessary effective measures for improving their infrastructure and institutional arrangements.

FAO in the execution of this programme should continue to play its role in monitoring, management, technical advice and other related aspects. It should continue to sum up experience, and strive to create the conditions for this type of aid to grow and reach an increasing number of needy developing countries.

Angus Edward MACDONALD (Australia): The Australian delegation has studied the documentation prepared for this agenda item and found it to be comprehensive, detailed and thought-provoking. Document 87/20 and its Supplement highlight the input constraints to increasing agricultural production in Africa, and undertakes projections of needs for fertilizer, pesticides, farm machinery and implements, veterinary supplies and other related inputs necessary if African agriculture is to grow at 3 percent per annum for the foreseeable future. While these inputs are, of course, necessary, they are not solely sufficient to bring about the needed expansion in African agriculture.

My delegation is pleased to see that the paper clearly places the primary onus of responsibility for improving African agriculture where it rightfully belongs - on the individual countries themselves, since it is here that appropriate policies and programmes must be adopted to stimulate food production.

The provision of the above-mentioned inputs is one of the necessary measures to stimulate production and to raise rural living standards, but so are the other three "Is" of agricultural development: incentives (for farmers to produce); infrastructure (to allow access to markets and distribution of inputs); and institutions (both public and private). Inputs provided under any aid-in-kind scheme must closely be integrated to, and dependent upon, progress in these other related sectors.

My delegation believes that the aid-in-kind proposals are basically sensible and ingenious: the provision of raw materials from donor countries to allow production in recipient countries of needed agricultural inputs, for example, urea for fertilizer production or steel for farm tools, etc; the use of triangular transactions to stimulate intra-regional trade in inputs; the direct provision of inputs from donor countries under an aid-in-kind scheme; and the use of counterpart funds generated from the sale of inputs to stimulate food production. But it should be recognized that many donor countries already engage in provision of this type of assistance, as the survey on aid-in-kind readily shows. Australia, for example, provides substantial food aid to Africa in support of agricultural production and has in place a Development Import Grants Scheme which allows recipient countries to freely choose commodities that they consider to be of highest priority in their respective development programmes. The only constraint on the Development Import Grants Scheme is that the cash grants must be used for demonstrably development purposes, and certainly agricultural inputs would qualify. The issue, therefore, to my delegation appears to be one of additionality.

There is one basic underlying assumption implicit in the aid-in-kind study, if not overtly stated in the papers. It is that the rationale for an African aid-in-kind programme is based on the assumption that such a scheme would result in the flow of additional resources to developing countries.

I have found only two references in the papers to the issue of surplus disposal, and the assumption that donor countries would and could embrace an aid-in-kind scheme because it would be a less expensive form of development assistance than alternative measures: that by drawing on surplus industrial capacity to produce farm machinery, pesticides or fertilizer, or by drawing down supplies of fertilizers against an unutilized surplus the costs to the national treasuries in the donor countries would be less than opting for an alternative form of aid.

Mr Chairman, I can assure you that for my own country this is manifestly not the case. It is not the case for our current food aid programme, and it would not be the case for any future aid-in-kind, non-food programme. There is no surplus of fertilizer, pesticides, agricultural machinery or other related inputs upon which to draw. Their provision by .the Australian government would be at the same real cost as providing food aid, technical assistance, or project aid. Aid-in-kind, therefore, would have to compete with the other forms of development assistance for the limited aid dollar.

Australia is fully cognizant of the problems facing African agriculture, and already has in place schemes assisting a number of countries in southern and eastern Africa. Within the context of existing country programmes we would be willing to consider assistance of an aid-in-kind nature where such inputs are viable and where their absence is seen as a major constraint to agricultural development. We believe that the FAO has a valuable role to play in helping countries to identify these needs and in helping to develop a suitable policy framework to assist African countries to move towards food self-sufficiency.

May I now turn to some specific proposals in the paper. My delegation agrees that multi-year commitments ease future planning by adding predictability to resource flows. However, a five to ten-year commitment period for targeted inputs is not viable in terms of development assistance planning.

We question the value of establishing a consultative committee to consider estimates of input requirements and coordination of commercial and concessional imports.

We are wary of the proposals to establish minimum and maximum prices for commodities and input, respectively, since artificial controls are not likely to produce greater allocative efficiency than alternative market forces.

The "work for inputs" proposal is likely to place a major burden on recipient agency authorities. Similar food-for-work schemes in some parts of Africa have not worked well and those that have been successful have required careful management and close supervision.

We find the paper both stimulating and interesting. However, we do not consider that the aid-in-kind programme standing on its own would necessarily result in the decline of rural poverty and the reduction of malnutrition in Africa, which FAO and its membership so earnestly wish to see take place.

Nguen SRISURUKSA (Thailand): I would like to associate myself with the previous speakers in expressing my appreciation to the Secretariat for preparing the comprehensive and lucid documents before us, and to give special thanks to Dr Rao for his clear highlight of the subject.

There is no doubt that farm inputs, namely, fertilizers, seeds, farm tools, pesticides and vaccines as well as fingerlings are the most important factors to increase agricultural production and increase income of farmers, as well as to create jobs for the rural population and the well-being of consumers.

It is clear from the study's findings that the problems of farm input shortages in the African countries, accompanied by population pressures and the low productivity of crops, livestock and fisheries, as well as deforestation and nutritional problems have reduced food production substantially. My delegation agrees that we need to find quick solutions to solve these problems.

The comments of my delegation are as follows.

Firstly, the study's findings show that mineral fertilizers, such as compound ammonia and urea, and seeds are quite important. In this connection I would like to point out that without enough information about water, including irrigation, ground water, annual rainfall and soil fertility we cannot apply fertilizers to increase potential agricultural production.

Regarding rainfall and soil fertility, it is necessary to mention that each production area must be classified as to how many days it rains, for example, under 80 days per year, 80 to 120 days per year, or over 120 days per year. This information in our experience is very useful when designing and planning for agricultural development. However, there is not enough information in the study. Moreover, if we had such information production areas could be classified into rainfall or irrigation areas. It would be easier to find the seeds and fertilizers.

Secondly, the study's findings indicate that there can be no doubt about the very close links between inputs and the other three "Is" of agricultural development - incentives, institutions and infrastructure. My delegation feels that it is not enough to have the three "Is" and that one should be added, that is, information. The study has mentioned the subject of information many times but it does not give high priority to this factor.

Thirdly, my delegation believes that farm inputs are, therefore, very important factors, and all of us recognize them as key factors in increasing food production. Consequently, my delegation feels that it is time now for all of us to emphasize "Farm Input Security" at national, sub-regional and regional levels in the same manner as "Food Security". The plan of action and guidelines for farm input security are laid down in paragraphs 132 to 135 and paragraph 163.

Lastly, regarding the credit for expanding food and agricultural production because of the serious problem in African countries at the present time, my delegation would like to draw your attention, Mr Chairman, to the fact that the difference between the price received by the government or agency handling the farm inputs and the price paid by a farmer, which in our understanding is a profit, should be transferred to a so-called "revolving fund". This fund, in turn, could be a momentum for agricultural development and for the cost of distribution of farm inputs to the farmers.

Yiadom K. ATTA-KONADU (Ghana): At the Plenary my delegation has already associated itself with the Study and its conclusions contained in paragraphs 164 and 165 of document C 87/20. The Study has stressed the strengths and weaknesses of past input aid and the opportunities for its expansion, in order to identify feasible actions and to alleviate problems in input requirements, their importation or local manufacture, sub-regional collaboration in input manufacture and policy formulation and planning framework for input use.

We recognise that, while the mix of investment priorities will vary naturally with individual developing countries, the study has emphasized those priority areas which are common to the general development situation and need most development assistance. Additionally, it has highlighted areas for maximizing the benefits from existing and planned facilities for input procurement, be it locally manufactured or imported, and programmes as a basis for increasing their early effectiveness. An underlying theme has been the importance of improved management of programme and project aid, related policy sources and physical facilities. To us this is of particular importance since most African countries now have the trained personnel and skills to upgrade their performance in the management of development programmes. In this connection, we wish to point out that FAO stands out clearly as the unique Organization which can identify local experts and make use of their services at the local level.

A clear message from the Plenary indicates that most African countries are positively responding to the UN Special Programme for Africa by committing more resources to agriculture. It has, however, been emphasized that without sustained and massive external assistance through aid-in-kind programmes or projects, many African countries may not be able to mobilize the resources essential to meeting their development objectives.

So far in Africa the IDA, IMF, ADB, UNDP and IFAD are addressing investment and assistance needs, but development assistance from the developed countries must be more predictable and sustained. Replenishment of concessionary funding sources, such as the Italian Trust Fund, is of particular importance to Africa. In this regard, our gratitude goes to the Italian Government for its decision to uplift the level of its Trust Fund, and to other donors who have shown a similar inclination.

As a positive step towards advancing the implementation of the UN Special Programme for Africa, all donors must return to the concern of placing further replenishments of the World Bank, African Development Bank and IFAD on a solid footing. Combined with other assistance, whether on a co-financing or parallel financing basis, this would provide the platform for steadily increasing overall effects. It is only in this spirit that the aid-in-kind programme we are addressing can become meaningful.

It seems to us that what is materially at stake is the size, complexity and timeliness of the respective programme and project aid. Our own experience in Ghana has shown that the project-programme cycle - i.e. identification formulation, pre-appraisal, appraisal, start-up activities and implementation - takes up to two years on average. It is in our own interests to take the necessary action to do something about this. We feel that with the FAO input, the cycle can be shortened, as amply demonstrated by the FAO/Italy Project in Ghana, "Support to Agricultural Mechanization for Food Production in Northern Savannah". We wish to note with satisfaction not only the speed at which the project was formulated and implemented, avoiding most of the bureaucratic delays associated with other aid-in-kind projects, but also the successful impact the project has had in increasing food production in the Northern Sector of the country and the excellent achievement made in the field of cooperative management, tillage and artisan training. The project, which is being executed with FAO support, has been most instrumental in increasing production in the target area, in addition to creating the practical awareness that, with the provision of after-sale support service, more output would be expected from agricultural machinery operating in Ghana's soils than has so far been realised. The project is now serving as a model and is being replicated again within the context of cooperative management by the FAO and Italy in other vantage parts of the country. My delegation would like to thank Italy for her assistance and also to stress the importance of FAO playing a coordinating and catalytic role in management of aid-in-kind projects similar to the FAO/Italy Project in Ghana.

Page 121, paragraphs 21 - 24 of C 87/20-Sup. 1, acknowledges the multifaceted character of the Input Supply Programme that Ghana has benefited from since the inception of its Economic Recovery Programme in 1983. Under the World Bank Reconstruction Import Credit I and II, inputs including spare parts; raw materials- for local manufacturing of inputs such as processing equipment, fishing nets, wire netting and polythene bags; and fertilizers, pesticides, veterinary drugs and vaccines have been imported. Co-financing facilities have been provided by Canada, the Dutch Government, France, KFW of the Federal Republic of Germany, European Development Fund and the African Development Fund.

In the agricultural sector itself parallel financing facilities are currently being provided by the UNDP, KFW, and the ADF to complement the IDA finance project, "Agricultural Services Rehabilitation Project".

For all these various categories of programme and project aid the World Bank is playing the coordinating role effectively, while at the same time the donors are insisting on their individual conditions and procurement procedures. Currently the investment projects being formulated in collaboration with the various donors to address the social costs of the Structural Adjustment Programme are being coordinated by the World Bank. We are grateful to the Bank for their role. However, it is the contention of my delegation that the Guidelines for Aid-In-Kind and Programme Aid outlined in Paragraph 163 of C 87/20 are worth favourable consideration by the donors for these carefully constructed guidelines seem to hold the key to the sustainability of the on-going Structural Adjustment Programme in Ghana.

Milan KARIC (Yugoslavia): After considering the Study prepared at the initiative of the Director-General and in accordance with the decision of the FAO Council made in November 1986, it can be said that the Study, although not containing data from all countries, shows, quite convincingly that basic inputs are the key factors for food production under the ecological conditions of Africa as well, and that there is an increasing gap between the need for those inputs and the possibilities of supplying them.

The Study also shows that the inputs are important, not only for production, but also for the preservation of the resource base of Africa and for the protection of nature.

Therefore, my delegation supports the proposals of FAO regarding the coordination of aid-in-inputs through an ad-hoc consultative committee as well as through the greater assistance of FAO to the African countries in assessing their needs and facilitating contacts between beneficiaries and donors of inputs.

Finally, I would like to express our appreciation of FAO's efforts in initiating the Study and bringing it to a successful end.

Sra. Doña Grafila SOTO CARRERO (Cuba): La delegación de Cuba quisiera agradecer a los señores Rao y Bonte-Friedheim la elaboración y presentación de los documentos C 87/20 y C 87/20-Sup.1. En realidad, señor Presidente, coincidimos en que uno de los elementos más importantes para la recuperación económica general de los países en desarrollo es, precisamente, el desarrollo de la agricultura; pero seguramente uno de los factores más críticos es el suministro de un volumen suficiente de in-sumos agrícolas adecuados en el momento que sea más oportuno y donde sea más necesario. Consideramos, ciertamente, que se trata de un problema de gran complejidad. Este estudio de viabilidad sobre la ampliación de la ayuda en especie de insumos agrícolas nos demuestra, entre otros aspectos ya mencionados, los desajustes que existen entre las necesidades y los suministros. Mi delegación apoya las recomendaciones que aparecen en el párrafo 18 del documento 20, donde se expresan algunos elementos necesarios para superar ese desajuste entre necesidades y suministros. La ayuda en especie en otro tipo de suministro ha sido de gran importancia para los países en desarrollo, al igual que las operaciones triangulares que la Delegación de Cuba siempre ha apoyado. El caso específico del informe que analizamos, referido a las dificultades del continente africano, es motivo de gran preocupación para nuestra Delegación y consideramos que la ayuda en especie debe ser algo adicional a los esfuerzos que ya se hacen en favor de ese continente.

La Delegación de Cuba apoya las recomendaciones que nos proponen en los documentos que analizamos, especialmente la creación de un banco de datos para conocer el monto de necesidades y la localiza-ción de las mismas. Pensamos que el papel de la FAO en este Programa debe ser fundamental. Sin embargo, consideramos, que debe tenerse muy en cuenta que no se hagan duplicidades y que se utilicen plenamente los órganos e instituciones ya creados.

Finalmente quisiéramos expresar que estas experiencias pudieran ser llevadas a otras regiones del mundo subdesarrollado.

Washington ZUÑIGA TRELLES (Perú): Mi delegación ha leído con mucho detenimiento el documento preparado por la Secretaría que, en términos generales, nos parece muy acertado y demuestra la experiencia que la FAO va teniendo y adquiriendo cada vez más en este campo. Sin embargo, me permitiría hacer algunas pequeñas apreciaciones.

En primer lugar, vemos que en el párrafo 88, se habla de un desequilibrio entre las necesidades de ínsumos y su abastecimiento que llegaría - dice - a 410 millones de dólares en 1970 y a 700 millones en 1985, sería interesante que se aclarara más, en el sentido de saber a qué se debe este desequilibrio, si es solamente porque se ha considerado el incremento del volumen de los insumos o se debe al incremento en el valor de los mismos. Esto sería interesante que se aclarara para tener una apreciación más correcta o más certera de lo que aquí se dice.

Las insumos, como bien dice el documento, son un factor muy importante para poder incrementar la productividad. Todos sabemos que con buenas semillas, con la aplicación de fertilizantes y la aplicación oportuna de plaguicidas se consiguen altas tasas de incremento en la productividad. Consideramos que es muy importante que se realice una ayuda en especies, sobre todo en insumos, para aumentar la productividad. Pero, sobre la aplicación de esta política, mi delegación cree que debe tenerse mucho cuidado porque pueden presentarse problemas .

Es verdad que para los países subdesarrollados, sobre todo cuando esta ayuda en especie se realiza en forma de donación, es una ayuda muy importante ya que, además de incrementar su productividad, les permite economizar divisas. Las divisas en estos países son escasas y, por consiguiente, una donación de éstas va a ayudar a que estos países no estén necesitando moneda extranjera para adquirirlas.

Además la fabricación de insumos locales, sobre todo en Africa, según los documentos, se ve que es pequeña y por consiguiente es necesario, mientras las fábricas puedan desarrollarse con el tiempo, dar una ayuda de insumos.

Fara los países industrializados indudablemente significa una gran ventaja estas donaciones porque, en primer lugar, todos sabemos - y el documento la afirma - que estos países están produciendo con exceso maquinaria agrícola y fertilizantes y no tienen mercado en vista de que la demanda ha disminuido y existe una sobre-producción que perjudica indudablemente a los países industrializados. Estos países necesitan salir de esta producción y a las fábricas particularmente les interesa introducir sus marcas en estos países para ir ganando y acostumbrando a ese mercado, y que cuando su economía mejore, puedan lograr un mercado asegurado. En consecuencia, para los países industrializados es conveniente esta política. Existen algunos peligros - podríamos llamarlo así - en esta política de insumos cuando no se toman las precauciones del caso. Si bien el documento no habla específicamente de semillas, mañana puede ser que se amplíe o haya intención de ampliarlo; y en cuanto a las semillas, es conveniente tener algunos cuidados porque actualmente las grandes empresas productoras de semillas llegan a tecnificar excesivamente su producción y vender semillas cuyos resultados van a dar plantas, tan delicadas a veces al ataque de las enfermedades, que les van a crear un problema, porque las semillas excesivamente tecnificadas son más exigentes en fertilizantes y necesitan más plaguicidas. Por consiguiente, creo que en este campo sería más conveniente que se ayudara tecnológicamente a producir semillas apropiadas para cada región, que mantengan su grado de rusticidad tanto para el ataque de enfermedades e insectos como también para la demanda en fertilizantes y agua.

A veces también, cuando no se tiene cuidado con la introducción de semillas, puede llegar a un país, que no tiene una determinada plaga, una nueva plaga o enfermedad, como ha sucedido en algunos países, por ejemplo,de América Latina.

En cuanto a los fertilizantes, seguramente la FAO ha hecho recomendaciones a cada país en base principalmente al estudio de sus suelos, porque éste es importantísimo. Nosotros hablamos del deterioro de Los suelos por la falta de fertilizantes, pero los suelos también se pueden deteriorar por una mala aplicación de los fertilizantes. Hay fertilizantes nitrogenados, por ejemplo, que pueden aplicarse a determinados tipos de suelo y a otros no, y determinados tipos de fertilizantes nitrogenados que pueden aplicarse a un cultivo y a otros no. También la selección de estos fertilizantes puede estar en función del transporte, para disminuir costos.

Hay fertilizantes que tienen mayor porcentaje de nitrógeno para distancias más lejanas y otros

que tienen menos. Quizás esté hablando de más en este sentido porque considero que los técnicos de la FAO habrán tenido en consideración todos estos asuntos. No obstante, y por lo general, debido a la experiencia que he tenido, la ayuda en fertilizantes se reduce muchas veces al nitrógeno y se olvidan de los otros tipos de fertilizantes que complementan la productividad de una planta. Es importante conseguir que vayan los fertilizantes completos y no parcialmente en determinadas cantidades que puede donar el país que fabrica un tipo de fertilizantes y otros no.

Otro problema importante es el que se refiere a los almacenes para fertilizantes, y el documento también lo señala. He visto en Latinoamérica que en muchas ocasiones ha llegado ayuda, o a veces ventas, de fertilizantes baratos a determinados países. Por otra parte no se ha tomado en cuenta la falta de almacenes y he comprobado en mi país que si bien existe una buena política previa de construcción de almacenes, resulta que en algunas zonas de agricultura pobre no se preveyó y se amontonaron los fertilizantes en cualquier tipo de almacenes, con lo que se produjo una pérdida enorme en el porcentaje de su contenido activo. Yo creo que esto es fundamental si se quiere enviar fertilizantes a un determinado país.

También, como señala el documento, es importante tener cuidado de que estos insumos no compitan con los que producen las fábricas locales. En este caso parece estupenda la propuesta que hace el documento de que la ayuda triangular puede ser muy importante para evitar estos problemas.

En cuanto a los plaguicidas, el documento ha señalado con toda precisión que hay que tener mucho cuidado en el envío de plaguicidas que ya no se usan en países desarrollados. Desgraciadamente éste es un tema que hemos tratado en el tercer mundo. Nuestros países han echado siempre la culpa a los países desarrollados de la respondabilidad de haber mandado no sólo plaguicidas en desuso y contaminantes que hacen daño al ambiente, sino también medicinas para los humanos y para los animales que no se utilizan en sus países.Todo ello debido a que algunas fábricas están acondicionadas seguramente para fabricar estos productos que envían al tercer mundo ocasionando daños a la población.

Sería conveniente que la ayuda en materias primas sea para estos plaguicidas, porque una de las formas más sencillas de fabricar plaguicidas es a través de los llamados formuladores, que son pequeñas fábricas de molienda o de mezcla de productos, donde se incorpora la mano de obra y ellos mismos fabrican los plaguicidas que necesitan con la ayuda de los insumos que los países desarrollados pueden mandar.

Finalmente, voy a ocuparme de la maquinaria. Muchas veces existe la confusión - y esto ha sucedido en toda clase de políticas - de creer que cuando un país posee muchos tractores va a desarrollarse enormemente. Esto es a veces un espejismo. Muchos países, al tener mucha mano de obra, una incorporación enorme de maquinaria agrícola crea un amplio desempleo. Por consiguiente, debemos tener mucho cuidado. He comprobado en algunas zonas de mi país que se tiene la creencia de que porque un gobierno está haciendo grandes importaciones de maquinaria es una buena política. Esto no es así, ya que los trabajadores del campo se quedan sin empleo debido a la competencia del tractor.

Debemos ser muy cuidadosos y hacer una exhaustiva selección para saber si usamos mano de obra o tractor. Esto, aparte de ser un problema de estudio económico, también es una cuestión de estudio social.

Otro problema muy grave que con frecuencia se presenta, Sr. Presidente, es la proliferación de marcas de tractores.

Yo he visto en muchos países - y en el mío sobre todo - que cuando se introducen marcas, ya sea porque hay un vendedor hábil o porque el tractor sea barato, se venden éstos a pesar de que no tienen representantes en ese país, lo que ocasiona una falta de servicios de mantenimiento y de repuestos y que cuando ese tractor se para lo hace definitivamente, con grandes pérdidas para el agricultor y el país.

Yo creo que si un país donante quiere hacer una donación a un país africano, entonces será necesario pedirle que done maquinaria de una marca que ya existe en ese país. De repente la FAO podría conseguir intercambio de donantes en función de la marca que al país receptor le conviene o canjee con otro país para que done donde exista esa fábrica y el otro país donará donde haya mayor marca de otra fábrica. He visto cementerios de maquinarias agrícola, y esto significa no solamente un perjuicio para el país, sino para el agricultor, porque el agricultor ilusionado a veces se endeuda por la maquinaria ya que cree que la maquinaria le va a resolver sus problemas. El agricultor compra esta maquinaria y se produce su endeudamiento, y ese endeudamiento significa a veces el inicio de la pobreza del agricultor. También hay algunos países que, si bien no tienen fábricas de maquinarias agrícola, tienen fábricas de implementos. Aquí también habría que tener mucho cuidado de que la importación de implementos no perjudique a esas fábricas locales.

Finalmente, el delegado de Bélgica hizo mención - con el buen criterio que siempre le caracteriza, país del cual recibe el Perú una gran ayuda - a un crédito agrícola rotatorio. Esto ha dado excelentes resultados en muchos países. Creemos que esta ayuda en insumos y especies debe ser transitoria -como creo que lo señaló Australia - porque, de lo contrario, se volvería a una situación incómoda para los mismos países manteniendo un paternalismo inconveniente. Se debe hacer una ayuda transitoria y el agricultor debe tratar de comprar, al precio real, estos insumos a medida que su productividad aumente.

Creo que los bancos agrícolas pueden desempeñar un gran papel siendo ellos los que puedan suministrar, como parte del crédito, estos insumos. Generalmente los agricultores solicitan su crédito y muchas veces este crédito no lo gastan precisamente en lo que ellos necesitan para la producción, sino que se compran una camioneta para la familia que en muchas ocasiones no le es prioritario. Por ello, la ayuda en especie de un banco de crédito resulta muy importante. Un crédito rotatorio de esta naturaleza ha dado resultados excelentes en muchos países en su desarrollo, y desearíamos que se estudie la posibilidad de que también en Africa pueda hacerse una cosa similar.

C. Reynaldo TREMINIO CHAVARRIA (Nicaragua): El documento C 87/20 nos presenta con claridad una situación compleja relativa al suministro de insumos agrícolas y a la problemática de producción agroalimentaria actual de los hermanos pueblos africanos.

Definitivamente la comunidad internacional juega un papel de primer orden para apoyar a Africa en este momento de crisis. Sin embargo, eíste apoyo solidario y otras acciones conexas tienen que ir acompañados de cambios que posibiliten localmente majoras en los servicios de apoyo a la producción, así como del fortalecimiento del sistema tecnológico agrícola, cuyo eje es fundamental para aprovechar con eficiencia los recursos productivos.

Muchas veces abordamos globalmente los problemas, y nos olvidamos o dejamos en segundo plano el accionar tecnológico. Si bien es cierto que en el presente estudio se señalan consideraciones a este bloque, debe ser en nuestro caso y para el estudio en sí y en sus resultados, un elemento básico para sustentar el proceso de identificación de necesidades y el suministro y utilización oportuna y efectiva de los insumos por los pequeños agricultores, que son los que llevan en primera linea el peso y la responsabilidad de producir los alimentos básicos.

Al observar las recomendaciones del estudio, que en sus aspectos generales son aceptables, debería ponerse especial atención al desarrollo práctico de un sistema de generación y transferencia de tecnología dirigido a los beneficiarios agrícolas, en este caso a los pequeños agricultores.

Al referirnos a este sistema, hablamos también de la conjugación o interacción necesaria con los componentes fundamentales de infraestructura, políticas y servicios de apoyo a la producción, tales como: red de distribución, acopio, crédito, transporte, precios e incentivos, abastecimiento técnico material, energía eléctrica, caminos, etc.

Una estrategia que pueda plantearse a cinco años o más, siguiendo las orientaciones que expresa el estudio, y en los términos de integrar un plan dirigido de tecnología, suministros, infraestructura, crédito e inversiones; derivaría una ruta concreta para aprovechar con eficiencia el esfuerzo solidario de la Comunidad Internacional, en apoyo a Africa en su objetivo primario de lograr la autosuficiencia alimentaria.

Es decir, que la ampliación de la ayuda en especie de insumos agrícolas que debe acompañarse de un plan maestro puede ser un aporte fundamental de orientación general, que se aseguraría mediante la coordinación de la FAO.

La relación interregional de comercio y suministros, sería un elemento clave del plan maestro. Asimismo, el fomento de la capacidad interna para producir bienes básicos y eliminar gradualmente el efecto de la dependencia externa.

Apoyamos un pronunciamiento unánime por la ampliación de la ayuda a Africa, pero expresamos también la necesidad de que los países del continente africano en crisis, aseguren a lo interno las condiciones mínimas necesarias para que esta ayuda de la Comunidad Internacional se transforme en abundancia de alimentos para sus pueblos.

Joan DUDIK-GAYOSO (United States of America): The United States has carefully listened to the introduction by Dr Rao on this item on Friday and has also given attention to the presentation in documentation C 87/20. I do not think we would call this a feasibility study. What this document does is to focus on the problems of agricultural production in developing countries, especially African developing countries, from one point of view; the point of view of production inputs, and more narrowly still, aid-in-kind. In so doing, the document serves to highlight something we all know and have discussed many times: the problems of agricultural development require an integrated approach. Addressing one aspect of the problem, whether it is inputs, as in this case, or institutional capacity or credit is not only not sufficient, but can be ineffective and wasteful.

As the FAO study on African agriculture and many other studies of the food problem in Africa emphasize, as well as paragraphs 23 and 24, 98 and 99 of the present document, inadequate availability of production inputs is only one of several major constraints to improving food production and agricultural production and productivity.

The lack of appropriate policies, agricultural technologies, sufficient numbers of trained personnel and adequate functioning infrastructure affect the capacity of countries to absorb inputs and machinery. The availability of inputs alone will not significantly improve the performance of the agricultural sector on a self-sustaining basis.

The emphasis on increased aid-in-kind could divert attention from the central objective of carrying out coordinated programmes for agricultural development. It puts the focus on the mechanism, aid-in-kind, which leads us into the danger of tailoring the problem, low agricultural productivity, to fit the solution we have in mind rather than the other way round. It takes us a step backward from looking at agricultural development needs in an integrated way.

It is none-the-less useful and opportune that this document reminds us that we must all continue to give attention to the amount, reliability and appropriateness of inputs supplied co the developing countries if these inputs are to make the greatest difference in increasing agricultural production.

Paragraph 25 acknowledges that there is no single solution to the constraints to agricultural production we have been discussing, and I think the debate this morning bears that point out. The paragraph then suggests the use of aid-in-kind to support local production and inter-regional trade and as the catalyst for technical change. I doubt that aid-in-kind has a special characteristic which makes it particularly effective in these two roles. In our own bilateral assistance programme over the years, the provision of commodities as inputs for local production and the purchase of such materials in third countries has been part of. the way we do business. The provision of packages of inputs to stimulate farmer adoption of improved technologies is likewise nothing new. It is already an integrated part of many agricultural assistance programmes and development activities.

Regarding the other two "uses" of aid-in-kind mentioned in paragraph 25, a policy and planning framework for input assistance and guidelines for input assistance, aid-in-kind is hardly necessary as a basis for activities related to establishing policy and planning frameworks or guidelines for input assistance. These functions are.already an inherent part of FAO's mandate.

As I shall discuss further on in detail, my Government would see FAO field staff taking a strong role at the country level in promoting dialogue among the government and interested donors on input needs and technologies. Here the information role which Thailand mentioned is important. Strengthening the government's capacity to identify these needs and make the appropriate choices considering issues like those raised so eloquently a few moments ago by the Representative of Peru, and coordinating the procurement of such inputs, this is part of FAO's raison d'être.

Having made these general remarks, I would like to turn to some specifics. Aid-in-kind is programme aid, the provision of agricultural inputs through external assistance is essentially a form of balance of payments support and programme aid. As the document points out in a number of places, for example paragraphs 13 and 87, there is not really much difference between aid-in-kind and programme aid. Different aid agencies have different mechanisms for providing such assistance. But in general, it is planned, taking into account a range of factors from the country's foreign exchange position, to its needs for specific commodities, to the use of the local currency generated by the sale of such commodities, to a far greater degree than this paper suggests.

Aid-in-kind will not result in additional resources available for official development assistance. FAO's programme of action for African agriculture recognizes that a major increase in external financing is unlikely at this time. We agree with this assessment. Although some donors - and we would congratulate those donors - will be able to increase their level substantially, overall we anticipate essentially a levelling off of aid flows. If aid-in-kind is not substantially different from programme aid, my delegation fails to see the usefulness in making an artificial distinction, especially since it would amount to little more than taking resources available for official development assistance from one pocket and putting them into another.

I would like to note that over the last few years my Government has been among, those taking the lead in calling attention to the increasingly difficult burden, the proliferation of development projects is placing on developing country governments, especially in Africa. We have urged multilateral and bilateral donors, and we have sought authority from our Congress ourselves to increase the proportion and amount of flexible, fast-dispersing assistance available, especially for African countries undertaking economic reform programmes.

In our own programmes, as well as others such as Lomé III mentioned in the document, this means there can be greater resources available to support the import of agricultural inputs Recipient countries will have to review their needs carefully and balance the allocation of resources for commodity support against other, perhaps more important forms of assistance that they may require. Their decisions will determine how much of the resources available will be used to fill the agricultural input gap mentioned in paragraph 77.

The document's emphasis on the idea of multi-year commitments is useful. Obviously greater predictability of resources improves development planning. My Government has supported multi-year programmes with multi-year commitments for agricultural inputs in a number of countries. Nevertheless, five to ten year programmes for targeted input aid are unrealistic from a resource point of view, as well as from a technical point of view. We do not see a useful purpose to be served by FAO's widening its fertilizer programme to include five to ten year programme of targeted input aid.

The identification of agricultural input needs and the coordination of supplies is a national level function. Paragraphs 16, 21, 102 and 106 point out the problems in coordination. My Government was gratified to note the emphasis the document placed on the function of the World Bank Consultative Group and the UNDP Round Table mechanisms as fora where needs for agricultural inputs and resources for financing them should be discussed.

FAO should be working through UNDP to make sure issues are appropriately raised in consultative groups and round tables. It is in these fora that governments can present their needs, their investment priorities and plans and try to assure the best match of assistance resources against those needs. Also, at the country level, especially in the context of local in-country sector coordination discussions, FAO should be an important voice to assure consideration of appropriate technological choices.

Nevertheless, the comments in paragraph 39 have taken us somewhat by surprise. Although we are well aware of cases in which coordination among aid agencies in countries including the FAO has been considerably less than optimum, we are amazed at FAO's proposing in paragraph 39 as a new idea a coordination mechanism. We would have thought that such mechanisms would already exist in one form or another where they are needed at the initiative of FAO.

As I said earlier, the tasks and processes described are clearly the sort of things FAO field staff should have been involved with long before now in ways which suited the individual country situation; that is, either through provision of direct advice or through the support to a government unit charged with the responsibility. My Government does not believe that any new or special endorsement is needed for this task. Nor is there need for an elaborate and formal hierarchical committee structure as described beginning in paragraphs 131 through 146. Nor are new general guidelines on the provision of aid-in-kind and programme aid needed. What is needed is for field level staff to get to work on a country-by-country basis where these problems exist, to identify them, to lend FAO's technical expertise to discussions with governments and other donor officials in order to find ways to address them. I am sure that in some places this is already happening in the context of sector-level coordination.

My Government would encourage the FAO to take a more appropriate open and constructive role in bringing everyone into a process of dialogue and coordination which addresses the technical questions outlined in this document.

There are a number of points dealing with the pricing and distribution of inputs in the document which" causes my delegation some concern. Paragraph 41, for example, refers to the estabishment of minimum and maximum authorized prices for inputs. Relative price stability is important; experience teaches, however, that the greatest derterminant of price stability is the availability of the input, not the existence of a maximum authorized price. Authorized price ceilings do not ensure that scarce inputs reach those in need. They just add an unnecessary administrative burden to the government. On the other hand, uneconomically low prices are also undesirable. Developing countries' budgets cannot absorb the costs of subsidies for agricultural inputs. Morever, our experience has shown over and over again that if farmers can count on a price that covers their cost of production they can and will pay the true cost or new inputs.

This is another one of those issues that we would expect FAO field staff to address in a serious systematic and constructive,incountry sectoral level in coordination with other interested donors and recipient governments' staff We think the delegation of Bangladesh's concern about work-tor-inputs is valid and should receive attention. Also, in our view the proposal of work-for-inputs described in paragraph 83 is a total subsidy which will only serve to create dependence on already overburdened governments for financing and distribution of input. Furthermore, aid-in-kind can be very detrimental to the development of a private sector delivery system, including support, advisory and repair services for machinery, fertilizers and agricultural chemicals. The development of adequate services is of major importance for continued availability of inputs and services over the long run. Short-term and in-kind can destroy those in existence and prevent development of needed services.

We note the point in paragraph 33 suggesting that the 1974 moratorium on World Food Programme, food aid is no longer necessary nor justified. This is an issue which should be discussed fully in the CFA. It is not an appropriate matter for decision by this forum.

We have provided many of these comments earlier this year directly to the Director-General in response to his inquiry. As should be apparent from these comments, my government's views have not changed. We do not see the need for follow-up actions to this study except those at the country level and except as they are appropriate in the context of FAO's regular operations at the country level. At that level we would hope that FAO would share the results of its studies and request its field staff to take an active role in working with other donor and recipient governments involved in the agricultural sector to minimize recurrence of the problems cited in this report.

CHAIRMAN: I thank the United States delegate for that detailed statement. This brings out the position of the United States Government on the proposals before us in clear and unequivocal terms, and has also highlighted to delegates that the position of the United STates on this point has been consistent throughout.

Almir F. DE SÁ BARBUDA (Brazil): On behalf of the Brazilian delegation I should like to join many previous speakers in thanking the Secretariat for the comprehensive presentation of this item of the agenda, for the preparation of document C 87/20 and its supplement C 87/20-Sup.1. We think that this presents an important new approach and an additional effort towards the development of African agriculture.

We agree with the statement in paragraph 1 of the main document that the need for aid-in-kind is not restricted to Africa, although we agree that at present the greatest need is in Africa. However, we welcome that the issue will also be dealt with in the study on the economy and agricultural situation of Latin America and the Caribbean to be presented during the next regional conference to be held in Brazil next year.

We are convinced of the importance of this approach to agricultural development, and we sincerely hope that proper attention and support can be given to it by the world community.

At this point, I should like to quote a passage of the statement by the President of IFAD to this Conference. After regretting the substantial shortfall in overall external resource availability, Dr Jazairy expressed his hope that some of the savings from what he hopes will develop as a balanced reduction of agricultural subsides by industrialized countries, can be transferred to increased concessional flows for desperately-needed food production in poor countries. The aid-in-kind programme of action offers a good opportunity for that.

In the same line, we agree, as stated in paragraphs 92 to 95 of the main document, that the new approach has clear advantages both for developing and also for developed countries. Attention must be paid as well to the types of pesticides to be provided, to training needs in the proper use of pesticides, fertilizers and machinery, and to the adequate supply of spare parts for the machinery provided as aid.

We also wish to make a reference to the use of triangular transactions, which can play an important role in the expansion of intra-regional aid as well as in the strengthening of trade amongst the developing regions. Input industries in some developing countries could play a role in the efforts, with better priced manufactures already tested in regions of similar ecological conditions.

In summing up, we reiterate our support to the document as well as to the operational guidelines presented in paragraph 163, and to the important role to be played by FAO in this regard. We hope, therefore, that this Conference will recommend that the proposals be translated into practical action.

Mme Malika SACI (Algerie): Ma delegation tient à remercier le Secrétariat pour L'excellent travail consigné dans les documents C 87/20 et C 87/20-Sup. L dont elle appuie les propositions et les lignes d'orientation.

Devant cette somme de réflexions et de données, nous constatons avec M. Rao que c'est en effet la première fois que nous disposons d'autant d'informations-sur les besoins et l'emploi d'intrants en Afrique. C'est aussi cette richesse d'information qui nous conduit à privilégier quelques points de ces documents. Ils s'ordonnent autour de deux thèmes: les critères d'efficacité de l'aide en nature d'une part, et l'environnement commercial et financier d'autre part.

L'étude de faisabilité qui nous est présentée part des conclusions du rapport sur "l'Agriculture africaine: les 25 prochaines années" et répond à la question de savoir comment procurer les facteurs de production nécessaires à l'Afrique pour qu'elle augmente de 3 pour cent sa croissance annuelle, si elle veut assurer son autosuffisance alimentaire.

Ce domaine des facteurs de production et en particulier, celui des intrants, est caractérisé par une situation paradoxale de stocks importants et de pénurie dans les pays en voie de développement.

Un des moyens d'approvisionnement est l'aide en nature qui intervient chaque fois que l'écart se creuse entre l'ampleur des besoins en intrants et l'insuffisance de leur offre.

Les deux documents décrivent très bien les mécanismes d'approvisionnement des biens de production. L'aide en nature qui est bien une forme d'assistance au développement intervient lorsqu'un déficit apparaît dans les circuits habituels d'approvisionnement. Il est important que cette aide réponde à une demande précise; pour ce faire l'évaluation des besoins quantitatifs et qualitatifs est primordiale. Ce préalable est une protection contre l'arrivée d'intrants inadaptés dont le seul mérite est d'alléger les excédents des pays industrialisés. Le contrôle de la qualité et de la conformité aux normes établies pour les engrais et pesticides est une seconde nécessité.

En troisième lieu, l'approvisionnement en intrants doit être planifié afin que les flux soient progressifs et réguliers. Une trop grande quantité importée qui dépasserait les besoins locaux aurait, sans nul doute, des effets néfastes sur la production locale et les prix pratiqués.

A cet égard, il est hautement souhaitable que la FAO accorde une assistance technique aux pays bénéficiaires de l'aide en nature sous forme d'intrants afin de les aider à déterminer leurs besoins en la matière, à identifier les priorités et à planifier leurs actions.

Aussi, ma délégation souhaiterait-elle appuyer ici les paragraphes 45 et 46 du document C 87/20 et recevoir du Secrétariat éventuellement des explications au sujet de l'article 39 qui semble faire double usage avec les dispositions contenues dans les articles précités et qui apparemment serait une nouvelle structure.

Le deuxième volet de mon intervention a trait à l'aspect commercial et financier de l'aide en nature. Nous voudrions souligner l'importance des opérations triangulaires qui s'inscrivent dans le cadre de la coopération Sud-Sud et Nord-Sud. L'Algérie intervient dans les opérations triangulaires avec les pays limitrophes. Ce genre de commerce est à encourager pour peu que les pays donateurs développés le veuillent.

S'agissant des fonds de contrepartie, dont la gestion semble poser quelques problèmes, les paragraphes 126 et 127 proposent des solutions pour les utiliser à bon escient.

Par ailleurs, la dynamisation de la demande locale est une opération nécessaire si on veut stimuler l'utilisation d'intrants. Il faut que le paysan dépasse le stade de la subsistance pour devenir un utilisateur potentiel d'intrants. Pour ce faire, la création d'emplois dans les secteurs agricole et agro-industriel ainsi que l'aménagement du crédit agricole sont en mesure d'élever le niveau de vie et d'augmenter le pouvoir d'achat; de même qu'il est possible de créer un marché régional et local.

Nous approuvons les conclusions du paragraphe 3, page 2 du document C 87/20. Les transformations qualitatives et quantitatives du secteur agricole en Afrique passent par une monétarisation de l'économie et l'organisation du crédit agricole.

L'étude de faisabilité conclut à la possibilité d'élargir l'aide en nature sous forme d'intrants. La démarche prudente et pragmatique préconisée est tout à fait pertinente.

La délégation algérienne est tout à fait d'avis que des expériences pilotes devraient être réalisées dans ce domaine avec cette approche afin d'en assurer l'efficacité et l'exemplarité. Nous sommes d'accord également pour étendre cette étude à d'autres régions.

Tin HLÂING (Burma): The Burmese delegation has made a thorough study of document C 87/20 and document C 87/20 Sup.1. The documents are clear and comprehensive.

Adequate supply and sufficient utilisation of agricultural inputs is a serious and major problem being faced in many developing countries. As a developing agricultural country, Burma has accorded high priority to the agricultural sector. Much emphasis has been placed on developing new production technology, on establishing an efficient extension system, and on supplying agricultural inputs adequately. We have achieved a marked progress in the first two areas. However, we are still being faced with the problems of shortages in the supply of agricultural inputs amidst the scarcity of foreign exchange, difficulty with easy access to markets for the export of agricultural commodities, and the rising prices of input materials.

In this situation, we are most grateful to the FAO, to other multilateral agencies and friendly countries for their substained, continuous and generous, development assistance with input materials such as seeds, fertilizers, pesticides and agricultural equipment. Such assistance in the form of aid-in-kind has been most precious and helpful in our efforts towards increased agricultural production.

We honestly feel that the provision of agricultural inputs as aid-in-kind is most essential and urgent for many developing countries as a catalyst for sustained growth and advancement in the agricultural sector. Therefore, we commend that a feasibility study of this kind should be expanded to other regions as well.

Arzouma KOUSSOUBE (Burkina Faso): Bien que l'autosuffisance alimentaire soit le premier objectif des pays en voie de développement, les efforts et les politiques n'ont jamais été suffisants pour réaliser pleinement cet objectif pourtant indispensable à leur réelle indépendance économique et politique.

L'agriculture de ces pays est restée archaïque, extensive, très peu productive et incapable de nourrir les populations qui sont en croissante évolution numérique. On peut remarquer que le contexte politique et institutionnel de l'agriculture est resté incohérent, mal défini dans certains pays et la volonté politique a toujours manqué pour conduire des actions déterminantes en matière de production agricole. L'inorganisation des producteurs agricoles, leur faible niveau d'équipement en machines agricoles, la mauvaise définition des structures de commercialisation se sont traduits par une production précaire très insuffisante, très peu productive.

Le résultat final découlant d'une telle situation dans les PVD et plus singulièrement dans les Pays sahéliens, est largement déficitaire. Ces pays enregistrent un déficit alimentaire chronique et connaissent de ce fait la faim et la malnutrition.

La FAO n'est pas restée insensible à cet état de fait. Elle a, à la demande des Etats Membres nécessiteux, mis en place une politique cohérente d'aide en vue d'une amélioration progressive des productions agricoles afin de réduire, voire enrayer,la faim dans le monde. Ainsi dans les PVD souffrant de cette situation d'insuffisance ou de pénurie, en plus des aides en matière de formation technique, d'organisation des producteurs et d'amélioration des structures d'appui à la production, on a mis en place l'aide en intrants agricoles. Ces aides avaient pour but d'accroître rapidement, dans les pays bénéficiaires, le niveau quantitatif et qualitatif des productions agricoles.

Le document C 87/20 tout en analysant l'importance des intrants dans le développement agricole, situe , avec son supplément 1, les contraintes liées à l'introduction des intrants dans l'agriculture des PVD. La délégation burkinabé après lecture attentive de ces documents approuve cette analyse et marque son accord pour les recommandations et les solutions qui y sont proposées qui sont entre autres:

- le renforcement des capacités nationales à évaluer les besoins en intrants dans le souci de leur bonne gestion,

- l'aide en nature qui doit se faire en concordance avec les importations commerciales et également, dans la mesure du possible, selon le principe des opérations triangulaires, comme il est dit dans le document C 87/20 en page 6 paragraphes 27 et 28 et ceci sur la base d'une transaction équilibrée.

Le Burkina Faso accorde une grande importance aux intrants agricoles et s'attèle depuis un certain temps à améliorer les conditions d'octroi et d'utilisation de ces intrants.

Les principales actions sur lesquelles l'accent est mis sont d'ordre organisationnel et institutionnel.

En effet, la bonne définition des besoins en intrants agricoles est liée à l'existence des statistiques agricoles fiables: les quantités souhaitées par les producteurs, les superficies à couvrir en ce qui concerne les engrais, les insecticides, les herbicides, etc doivent être maîtrisées pour éviter les pertes et les utilisations abusives. Dans ce but, un système national de suivi et d'évaluation est mis en place et permet de saisir et d'analyser l'ensemble des données relatives à l'utilisation de tous les intrants agricoles. Nous pensons qu'un renforcement de ce système de suivi va de pair avec une vulgarisation agricole dynamique bien structurée et sécurisante pour les producteurs ruraux. L'utilisation de la micro-informatique doit être développée.

Une organisation des services de statistiques s'impose si nous voulons réellement maîtriser les circuits d'importation et de gestion des intrants agricoles.

En ce: qui concerne les opérations triangulaires, il faut adopter une attitude prudente qui respecte les intérêts de l'ensemble des parties en présence sinon le caractère promotionnel de l'aide devient imperceptible. En effet, l'aide devrait permettre de faire la promotion des produits locaux. Par exemple, nous pensons que dans le cas qui nous intéresse, la formule unique d'engrais pourrait être maintenant remplacée par une formule nouvelle qui peut être fabriquée sur place à partir des phosphates locaux. Une aide qui irait dans ce'sens serait très appréciée.

Nous ne nions pas l'importance et les effets bénéfiques de l'aide en nature. Mon pays compte aussi avec cette forme d'aide. Cependant, comme l'a déclaré le chef de la délégation en plénière, l'aide doit être catalyseur de la production agricole. Elle doit faire également la promotion des produits locaux par le biais des.opérations triangulaires. Mon pays est disposé à avoir recours à cette forme d'aide qui peut être développée dans plusieurs secteurs de notre agriculture, de notre élevage, en fonction de la protection de notre environnement.

Tout: en accordant une priorité à l'aide comme moyen de développement de notre agriculture, nous pensons enfin que cette aide doit s'accompagner d'une composante formation et information qui en demeure un élément très important et valorisant.

Le thème de l'aide en nature est essentiel. Des millions de petits producteurs agricoles en Afrique comptent avec elle. Avant de terminer, je lance un appel à la FAO afin qu'elle mette encore à contribution ses compétences pour mobiliser les pays donateurs et les institutions de financement afin de renforcer l'aide en nature dans les PVD.

Václav DOBES (Czechoslovakia): Our delegation believes that expanding the provision of agricultural inputs as aid-in-kind can become one of the major forms of development aid. Of course, documents C 87/20 and Supplement 1 contain only the general ideas and can serve as a good basis for studying this problem. The feasibility study illuminates some of the possible forms of aid-in-kind. Other forms are undoubtedly possible, including the development of such as veterinary services.

My country is considering the possibility of assisting in some FAO activities in the field of animal production. The Czechoslovak Government hopes that FAO will succeed in cooperation with UNDP in including the aid-in-kind programme part of its accumulated voluntary contribution to UNDP. It seems to me to be absolutely illogical if these contributions remain insufficiently used if the contributing government expresses its full willingness to realize development aid through the delivery of urgently needed materials and special technical services.

Fritz-Otto HAASE (Germany, Federal Republic of) (original language German): My delegation welcomes the presentation of the feasibility study on Agricultural Inputs as Aid-in-Kind. We are also prepared to make out experience available in bilateral aid. But we have some problems in order to give the figures for that aid that the FAO Secretariat has asked for because such figures are part of integrated projects and are not shown separately. Also, we have no evaluations on the efficiency of commodity aid.

Experts in my country are looking forward keenly to the outcome of the feasibility study. We agree with the opinion that without additional inputs agricultural production cannot be increased and poverty thereby alleviated in rural areas. Among the necessary inputs, as this study has highlighted, are not only mineral fertilizers and plant protection products, but also implements and agricultural machinery as well as facilities to avoid post-harvest losses. Without such inputs productivity and the income of farmers remain inadequate and thereby further stimulate the trend to drift to the overcrowded urban connurbations.

On the basis of experience we have obtained up to now input supplies should be made available only within the framework of projects. In this respect the private economy sector should be given priority. Inputs belong in the hands of the final users. Input supplies should normally not be given away; they should be sold at market prices, thus allowing the returns to be put into a revolving fund. In order to enable farmers to do so they need national price policy-geared incentives, and effective marketing and service systems must be set up, including banking services.

Jacobus J. NEETESCN (Netherlands): Mydelegation would like to thank the Secretariat for submitting document Ç 87/20 containing the report on the feasibility study. We have read it with great interest. I know from experience that it is not easy to obtain all of the data and information that forms the basis of the report.

We appreciate the comprehensive approach of the study. The input supply gap is estimated to widen to a very high figure in US dollars. However, the recommendations for closing the gap are much more interesting. In general we agree with most of the approaches and recommendations outlined in the report. Indeed, support for local production and intra-regional trade of inputs, whether through aid-in-kind or otherwise, must come first. It must be emphasized, however, that different sets of conditions should be met and economic criteria applied to local production of the various types of inputs.

A second item that I should like to mention is the policy and planning framework for input supply. The Netherlands has a fairly large history of experience in balance-of-payment support and in programme aid used for agricultural inputs, notably fertilizers. Whereas input availability at the national level is often seen as the main constraint, other constraints that prevent farmers from using the correct amount of inputs at the correct time may be just as important, or more important. These constraints may originate from such factors as price policy, distribution and marketing, credit services, extension, education and research. In the report they are dealt with as policies to strengthen incentives, institutions and infrastructure. They are very important in our view.

It is from this experience that I would like to recommend that programme aid and aid-in-kind be linked as much as possible with technical assistance activities. In this respect there is scope for more cooperation between bilateral donors and multilateral agencies enabling one activity to reinforce another.

My third remark concerns the relationship which is established in the report between surpluses of inputs in OECD countries and expansion of aid-in-kind to African countries. In my opinion, these two should not be connected as is being done. As far as the Netherlands is concerned, the need of the recipient country determines the type of assistance, and not the existence of surpluses. Moreover, if there is a shortage of agricultural inputs on the world market, accompanied by high prices, the need for assistance in whatever form is even higher.

These remarks illustrate our view that normal commercial mechanisms on the World Market, as well as within the recipient countries, should form the basis for programme aid and aid-in-kind.

My last remark concerns the role of FAO. We agree with the conclusion of the report that the main follow-up action will have to be at a national level in the recipient countries. In our opinion, mainly at debt level, FAO could play a coordinating role. This role has to be based on a policy analysis of the input supply situation. At the same time FAO should also be involved in donor coordination which functions already - although not always efficiently - in a number of countries under the chairmanship of the recipient countries. In our opinion, both donors and recipients could benefit from the proposed input information system coordinated by FAOo In the Plenary the Minister of Agriculture has outlined our views with respect to the need for increased involvement of FAO, as we see it, in policy advising of countries and multilateral financing institutionis. Other members of the Netherlands delegation have stressed the same points under other agenda items. It is maybe clear from my remarks that we should like to see input production and input supply systems to be included in that part of the new role of FAO.

Abdel Helmy EL-SARKI (Egypt) (original language Arabic): My delegation studied document C 87/20 and its supplement. At the beginning we should like to point to our statement during the 91st Session of the Executive Board of FAO, which welcomed such a study because of the convinction of its objective which aims at realising agricultural development. Therefore, Egypt provided all the information required from it in order to prepare such a study.

Paragraphs 8 - 13 of this document draw attention to the existence of a large gap at national level between the needs of agricultural inputs and the quantities available of such inputs. Therefore, we agree with the view suggested by this study to sustain local production, first and foremost, and to encourage inter-developing country trade, as is clear from paragraph 18.

Paragraphs 26- 28 deal with the role of such aid-in-kind in overcoming the problems which face local production. We therefore welcome what is referred to in paragraph 28, to apply the triangular transactions as a factor to encourage trade in order to solve such problems..

We also welcome paragraph 29 to enlarge the use of production inputs in the development of technological changes, and we hope we benefit from the inputs in kind in research and experiences.

Paragraphs 30 - 33 talk about the implementation of programmes of input for work. My delegation would approve and welcome such a proposal and hope that it will be implemented on an experimental basis to avoid the adverse effects which might come out.

After reviewing paragraphs 34 - 40, we should like to welcome the general framework of policies for the planning of aid-in-kind as referred to in this document .

This document also points out the possible role of FAO, as appears in paragraphs 45 and 46. My delegation feels that the FAO's role should be restricted to providing technical aid to countries upon request in the field of the elaboration of policies and plans and in the follow-up of this information. We are pleased to note the success of certain African countries by putting out policies which meet the needs of the farmers and lead to the increase of productivity, paragraph 49.

The delegation of Egypt has studied paragraphs 51- 57 concerning the needs of inputs in order to increase production. We approve the content of these paragraphs, and we hope that, after reviewing paragraphs 61 - 68, concerning production, trade and aid-in-kind, the problems which are pointed out by these paragraphs will be solved. It might be preferable in order to bridge the gap to apply the triangular transactions, as appears from paragraph 78. We recommend the members who welcome the principle of triangular transactions. My delegation hopes that good planning would be applied in order to define the need for inputs and to define the kind of pesticides needed.

We also welcome the content of paragraphs 126 and 127 concerning the management counterpart funds. We also join the countries which have asked for the carrying out of this study in the various regions of the Organization.

John Redman GOLDSACK (United Kingdom): We should like to thank the Secretariat for the thoroughness of preparation of this paper. It gives an excellent review of the problems of providing aid-in-kind, or what we would call programme aid.

We feel that the weakness of C 87/20 is that aid to the agricultural sector is being considered in isolation. It must be considered in the context of overall development plans. A further weakness is that insufficient attention is paid to other factors, such as appropriate policies, institutions, training, etc., which are required to make optimum use of inputs. The intervention of the delegate of Australia drew attention to this aspect.

Nevertheless there is a considerable amount of excellent information in the document and it provides a starting point for consideration of how to make programme aid more effective. We feel that in the future African agriculture will become a more intensive user of imported inputs. In the past these have been subsidized and, thus, arguably over-used. Future unsubsidized demands cannot easily be inferred from past trends. Generalizations about the role of inputs, therefore, are not proven.

Agriculture has benefited strongly from the price reforms and altered terms of trade associated with structural adjustment policies. As its growth resumes its effective demand for imported supplies will increase. With import liberalization and competitive internal marketing, which is also part of structural adjustment, supplies will be more readily available to farmers. It is important that any kind of aid should be integrated into existing World Bank country programmes and coordinated with these. British policy is to provide bilateral programme aid where appropriate to countries undertaking structural adjustment reforms. We have increased the provision of programme aid for such countries in sub-Saharan Africa. This aid helps agriculture and enhances the ability of recipient countries to buy imported farm inputs, where there is effective local demand for these, either because it finances them directly or because of the indirect effect of relieving foreign exchange bottlenecks elsewhere in the economy - for example, in transport.

We fear that aid-in-kind as proposed could become a palliative measure for countries with chronic balance of payment strains due to mistaken economic policies. We recognize that such support has to be given to help those countries committed to economic reforms.

The conclusion we reach from reading C 87/20 is that aid-in-kind must be highly country specific and can only be planned on a country-by-country basis. We welcome recommendations to strengthen capacity of recipient countries to identify requirements for programme aid.

The administrative proposals in paragraph 39 seem too complicated. We do not see a role for FAO in providing secretariat services. FAO's job should, we think, be to provide technical assistance to countries to enable them to identify needs and manage supplies with minimal disruption to the agricultural sector.

We counsel caution when considering the establishment of minimum or maximum price controls, since these can all too easily lead to distortions.

We support the observation of the delegate of Kenya that aid-in-kind should not disrupt normal commercial channels. The danger in the proposals as they are currently cast is that programme aid will lose some of its flexibility, and that they will create long-term dependence on externally-financed inputs.

We suggest that there should be joint donor recipient workshops to examine ways of improving mechanisms of handling programme aid for the agricultural sector.

We do not agree with the suggestion that animal feeding stuffs should be provided under aid-in-kind other than in the most exceptional circumstances, such as to preserve limited numbers of breeding stock.

There is a danger that provision of feed-aid could artificially maintain over-stocking in ecologically fragile areas with consequent environmental damage . We are thus opposed at this stage to the lifting of the 1974 moratorium on World Food Programme feed-aid, as suggested in paragraph 33 of document C 87/20, without further detailed examination of the implications. We agree with the view expressed by the delegate of the United States that this is for decision elsewhere.

Finally, work on programme aid is being undertaken in the OECD, and we feel that FAO should - and we feel confident that they will - coordinate any further action with the OECD Secretariat.

Patrick Oliver RYAN (Ireland): We have read with interest document C 87/20 and in general I can state that we are in broad agreement with the general findings and conclusions.

The Irish Government has for some years been a firm supporter of what could be termed FAO's existing aid-in-kind programme. I refer to the FAO fertilizer programme and the associated international fertilizer scheme. Document C 87/20 and its supplement make several references to these programmes. We consider that the FAO fertilizer programme provides a very useful working model for any donors considering an expansion of aid-in-kind. Badly needed inputs are provided at farm level - not only fertilizers but also seeds and chemicals. These inputs are distributed to FAO fertilizer projects which have as one of their principal objectives the strengthening of extension services. Farmers are very quick to adopt the message of increased inputs leading to increased outputs. The result is an extension service which gains the confidence of the farmers and in so doing gains confidence in itself.

Concerning the use of counterpart funds, the IFS/FAO programmes again provide a very useful working model. Counterpart funds from the sales of IFS fertilizers are under the joint control of the joint project managers, the FAO and counterpart managers. Funds are provided quickly for such useful purposes as the building of fertilizer and inputs stores at village level, training of extension agents and the provision of equipment and transport for extension services.

Concerning the recommendations outlined in paragraph 25 and the following paragraphs of C 87/20, the weed management campaign suggested in paragraph 31 is a logical follow-on to the activities of the fertilizer programme. However, the suggestion in paragraph 33 for the use of feed grains as a catalyst of technical change in the livestock industry seems to us to be a less logical proposal. This paragraph seems to recommend the establishment of feed lots and dairy farms dependent on imported grains with the objective of supplying growing urban demands. We would suggest that very careful studies are needed before proceeding with this type of programme on a larger scale. For example, we must ask what effect such semi-industrial farms would have on indigenous livestock production. How well would the objectives of these farms tie in with FAO's own livestock development programmes?

Regarding the inputs of equipment, we find ourselves in agreement with the comments of the delegate of Peru concerning cemeteries of agricultural machinery and the impoverishment of farmers through purchase of machinery of a level of technology inappropriate for local conditions.

It is significant that in Annex V of the Supplement to document C 87/20, Country Case Studies on Input Needs, a common need in three of the four countries studied is the need for simple equipment and raw materials for blacksmiths to facilitate continued production and maintenance of tools and equipment.

On more general themes, we would share the view of the Netherlands delegate that it should be the needs of developing countries which determine the type of aid to be given rather than the existence of surpluses in the developed countries.

Finally, we would see a greater role for FAO at national level in coordinating the assessment of specific input requirements and in the coordination of the supply of these inputs.

The meeting rose at 12.35
La séance est levée à 12 h 35
Se levantó la sesión a las 12.35 horas