Statement of the Director-General of FAO, Mr Jacques Diouf
to the Thirty-second Session of the Conference

Rome, Italy, 29 November – 10 December 2003


Mr Chairman of the Conference,
Mr Independent Chairman of the Council,
Distinguished Ministers,
Excellencies,
Ladies and Gentlemen,

The World Food Summits of 1996 and 2002 in Rome set and reaffirmed the objective of halving the number of hungry people by 2015.

Given the continuing unacceptable existence of undernourishment in a world that has abundant resources and the risk of only achieving our objective in 2150, we need to mobilize the political will of national decision-makers and the energy of civil society, as well as bilateral and multilateral resources.

That is the backdrop against which the proceedings of this thirty-second session of your Conference should unfold.

State of food insecurity and state of food and agriculture

While, in the last ten years, the number of hungry people has fallen by more than 80 million in 19 developing countries, it has regrettably increased in many others.

At world level, this number only fell by 19 million between 1990-1992 and 1999-2001. The annual reduction rate will therefore need to be raised to 26 million - more than 12 times the present rate of 2.1 million.

In 1999-2001, there were 842 million undernourished people in the world, including 798 million in the developing countries, 34 million in the countries in transition, and 11 million in the developed countries.

In October 2003, 38 countries were reported to be facing serious food shortages requiring urgent assistance: 23 in Africa, eight in Asia, five in Latin America and two in Europe.

The 2003 Report on the State of Food Insecurity in the World indicates that 65 to 80 percent of food emergencies are caused by drought and flooding – hence the importance of small water harvesting, irrigation and drainage works in developing countries, especially in Africa and the Caribbean.

Agricultural and food production and trade

Global cereal production for 2003/04 evaluated at 1 874 million tonnes will remain below expected requirements. For the fourth consecutive year, therefore, a draw-down of stocks will also be observed in 2004.

Agricultural commodity prices fell during the second half of the decade, although some commodity prices did recover between 2001 and 2002, notably wheat and oil crops.

World livestock production in 2003 of 249.1 million tonnes of meat and 599.1 million tonnes of dairy product continues to grow significantly faster than agriculture as a whole, and now accounts for 45.2 percent of total agricultural GDP.

World trade in fish and fish products has increased by 8 percent since 1998, largely due to an increase in volume of trade.

Forest products also make a significant contribution to international trade, with world exports in 2001 valued at US$141 billion and imports at US$131 billion.

However, much remains to be done to correct the imbalances and inequities of trade in food and agriculture. Multilateral negotiations are indispensable for achieving fairer solutions, and the Organization urges countries to resume the discussions that ran into difficulties in Cancun.

Follow-up to the World Food Summit

As part of the follow-up to the World Food Summits, the Organization is helping Member Nations to prepare strategies towards 2015 and medium-term food security and agricultural development programmes. With the collaboration of financial institutions, it is also helping to formulate bankable projects in order to hasten the reversal of the downward trend in resources directed to agriculture. In this respect, several Round Tables involving ministries of agriculture and finance will be organized jointly with the regional development banks during FAO's Regional Conferences.

FAO's operational programmes

The FAO Trust Fund for Food Security and Food Safety set up in 2002 has already received a first instalment of 50 million euros from Italy, out of the 100 million expected, US$9.3 million from Libya and a first contribution of US$1 million from Saudi Arabia.

The Special Programme for Food Security (SPFS) launched in 1995 has so far mobilized almost US$548 million, with more than half coming from national budgets of developing countries. Today, 89 countries are participating in the SPFS.

The South-South Cooperation solidarity programme has made it possible to field some 700 technical experts at minimal cost to work in rural communities for the benefit of poor farmers.

The Emergency Prevention System for Transboundary Animal and Plant Pests and Diseases (EMPRES) continues to play a strong role thanks to its early warning function, its rapid response and activation of the network of best research centres in these fields. The main animal diseases concerned are foot-and-mouth disease, swine fever, rinderpest and Rift Valley fever.

Numerous other operational programmes are financed in particular by the Technical Cooperation Programme.

FAO's normative programmes

The Codex Alimentarius has recently adopted new guidelines for assessing risk associated with foods derived from biotechnology. It has also established 50 new safety and quality standards. A multi-donor trust fund has been set up to enable the developing countries to participate more effectively in Codex work.

FAO provides the Secretariat of the International Plant Protection Convention (IPPC) which aims to prevent the introduction and spread of pests. The Convention was amended in 1997 and its revised version has been ratified by 52 of the countries that had ratified the earlier version. The Rotterdam Convention on the Prior Informed Consent Procedure will help protect people and the environment against hazardous chemicals, including pesticides. It was ratified on 26 November by the fiftieth country and will therefore enter into force in February 2004.

The International Treaty on Plant Genetic Resources for Food and Agriculture has provided an internationally binding framework for the conservation and sustainable use of plant genetic resources. It has been ratified by 33 countries. FAO is also currently hosting the Interim Secretariat of the Global Crop Diversity Trust which aims to ensure sustainable funding for the long-term conservation of crop collections.

Finally, FAO is supervising the preparation of the first report on the state of the world's animal genetic resources and the definition of priority actions for the better utilization and conservation of these resources. This report should be submitted to the Conference in 2007.

Reform, decentralization and modernization

The reform of FAO which began in 1994 has led to a 30 percent reduction in staff.

As a result of decentralization, the ratio of staff in decentralized offices to staff at Headquarters has risen from 20.6 percent in 1994 to 31 percent. During the 2002-2003 biennium, FAO was represented in 131 Member Nations, compared to 106 in 1994.

Delivery in 2003 of the regular Field Programme should be slightly higher than in 2002 (US$189 million). Emergency assistance projects have reached an all-time high this year, at about US$250 million, because of the exceptional increase in assistance to Iraq under the "Oil-for-Food" programme. That would imply an overall Field Programme delivery in 2003 in the range of US$440 million, which is significantly higher than the 2002 level of US$340 million.

Forging new partnerships

Looking to the outside, FAO has continued to increase its cooperation with regional and international partners during the last two years.

The Organization held numerous consultations with the International Fund for Agricultural Development and the World Food Programme to improve the coordination of activities of the three agencies.

New approaches have also been adopted to strengthen links with other United Nations agencies, with development and financing institutions, such as the World Bank and the regional development banks, and with the OECD and the European Union.

Partnerships have been set up in pursuit of the Millennium Development Goals, poverty reduction strategies and national food security strategies.

Collaboration with non-governmental organizations and civil society has been intensified. A programme of action was adopted in follow-up to the World Food Summit, producing solid results, including participation of farmers' organizations in preparing the agricultural programme of NEPAD, of representatives of civil society in developing guidelines for implementation of the right to food and in determining ways of providing agricultural assistance in emergency situations.

FAO's partnership with the private sector has also been broadened during the last two years, particularly under the World Economic Forum.

Information and collaboration with the media

FAO has continued to work together with the media to sensitize international public opinion to the problem of hunger.

Whereas FAO's Internet site offered 6.5 million pages of information in 1999, it offered 48 million in 2003. The success of this site is indicative of the rapid development of WAICENT and its compilation and dissemination of information on programmes of the Organization's technical departments.

FAO has also produced nineteen multimedia presentations in 2003, together with a booklet entitled FAO Serving its members which provides a synopsis of its main programmes, its budget and the reforms that have enhanced its efficiency.

World Food Day was celebrated in 150 countries. The TeleFood awareness-raising campaign against hunger and malnutrition has helped convey FAO's message to more than 500 million people. A total of US$11 million has been raised, serving to finance more than one thousand food security micro-projects in 114 countries.

Conference Agenda and Programme of Work and Budget

I should now like to turn to the agenda of this important Conference session and to refer in particular to the Organization's Programme of Work and Budget.

In Commission I, examination of FAO's initiatives to combat hunger will provide an overview of what has been done to realize the commitments of the World Food Summit and to achieve the Millennium Development Goals.

In Commission II, the main item for examination is the Programme of Work and Budget for 2004-2005. Three proposals have been put forward. The first is premised on real growth of 5.5 percent above the current approved budget. The second envisages a zero real growth scenario, which is an elegant way of proposing a further budget cut. Finally, at the last session of the Council, certain member countries felt the need for a third scenario, that of zero nominal growth. In practical terms, this third proposal means a budget reduction of US$40.9 million in 2004-2005.

FAO's budget was reduced in 1996-1997 and has never increased in real terms since. Its present budget of US$651.8 million for 188 Members is US$21.4 million less than the 1994-1995 budget when the Organization only had 169 Members. Cumulative inflation in Italy during this period has reached 35 percent. We have managed to maintain the most important programmes, but this has only been possible thanks to unprecedented efficiency savings and to the prudent management of risk linked to the exchange rate.

The achievement of efficiency savings of US$50 to 60 million borders on the prodigious and cannot be repeated.

It is my duty to paint a true picture of what the Organization would look like under a zero nominal growth scenario, considering that it has already experienced a 30 percent reduction in staff since 1994. The consequences would not be limited to reductions in overall expenditure on fisheries or forestry programmes. They would also entail a loss of almost 160 posts across the Organization, rising to 650 in the absence of a split assessment of contributions.

A look to the future: the major challenges for FAO

Excellencies, Ladies and Gentlemen,

Global food production is now largely sufficient to provide everyone with an adequate diet.

The existence of hunger in a world of plenty is not just a moral outrage, it is also the result of short-sighted economic policy. People who are hungry cannot work or study properly; they are more vulnerable to sickness; and they die young. Resentment against undernourishment and poverty breeds extremist action that can sometimes lead to crime and threaten national stability. It is therefore in the interest of everyone, rich and poor alike, to combat hunger, injustice and exclusion.

The Organization must therefore have the support of public opinion and policy-makers in its member countries. More financial resources from development partners are essential to meet the challenges of the new century.

• Protection of biodiversity and natural resources
This will involve protecting plant and animal resources (including preventing illegal fishing), combating deforestation and forest fires, safeguarding the quality of water and analysing the effects of using biotechnology. FAO will be called upon to intervene in the legislative, technical, scientific, trade, training and information areas.

• Stabilization and growth of agricultural production
FAO will be required to support countries to:
i) increase investments;
ii) develop agricultural upstream and downstream activities that generate income in rural areas; and
iii) reinforce formal and informal systems that give the most vulnerable population groups access to food.

Improving the control and use of water resources is essential if agricultural output is to be increased. Apart from implementing small water harvesting, irrigation and drainage works, rehabilitating large irrigation schemes and ensuring better management and development of river basins, the Organization will also have to encourage research into techniques for desalinizing sea water.

• Balancing an increase in production and environmental protection
The Organization will have to pay closer attention to achieving a balance between the necessary increase in production, mainly through the use of inputs, and the protection of natural resources.

• Improving food consumption in the context of the globalization of trade
FAO will have to make a particular effort to strengthen the capacity of countries to participate in negotiations to limit the technical barriers to trade and the subsidies that distort the international trade in agriculture.

• Protection of consumers and food quality and safety
Assuring food quality and safety is an essential part of the battle against world food insecurity. Yet, the world faces an increasing number of crises linked to new agricultural and agro-industrial practices that require appropriate legislative, regulatory, institutional and scientific measures.

• Mitigation of HIV/AIDS infection and food-related disease on the rural population in particular
HIV/AIDS has been especially devastating for the rural sector. An estimated 8 million agricultural workers have already died from AIDS and a further 16 million deaths may be expected by 2020. FAO will have to continue to identify the agricultural dimension of the AIDS phenomenon and related measures needed in its programmes and projects, in cooperation with the UNAIDS programme.

It will also have to continue its work with WHO in dealing with food-related disorders, such as obesity, diabetes, cardiovascular disease and certain cancers that often coexist with diseases from undernutrition in the developing countries.

• Food security in mountain ecosystems
At least 245 million people living in rural mountain areas in developing and transition countries are vulnerable or exposed to food insecurity and hunger. FAO, which provides the Secretariat of the Mountain Partnership that was established at the World Summit on Sustainable Development in 2002, will have to pursue its activities to meet the needs of these people, while at the same time safeguarding mountain ecosystems.

• Sustainable agricultural and rural development
About 70 percent of the world's poor live in rural areas and depend on agriculture for their livelihoods. Agriculture gives work to 40 percent of the population of developing countries, that is 2.5 billion people. Clearly, therefore, there can be no reduction in hunger and poverty without the sustainable agricultural and rural development that provides income and work. FAO is coordinating the activities of the programme of action for Sustainable Agriculture and Rural Development (SARD) that was adopted at the Earth Summit in Rio in 1992.

The World Summit on Sustainable Development in Johannesburg, in 2002, reaffirmed the relevance of this programme in order to identify and implement policies and practices that are conducive to agricultural and rural development, such as integrated pest management, the utilization of bioenergy and the participatory management of forests and other natural resources of communities. FAO will have to pursue its efforts with governments, development partners and financial institutions to secure the necessary investment.

• International Year of Rice
FAO is responsible for coordinating the preparations for the International Year of Rice in 2004. Rice is the staple food for half the world's population, so an increase in the production and productivity of rice cultivation can play a crucial role in fighting hunger and food insecurity.

• Institutional challenges
On the institutional level, FAO will have to continue supporting the efforts of the United Nations’ Secretary-General to improve the coordination and integration of the activities of the system’s sister agencies.

The Organization will have to find an appropriate, but flexible, balance between its normative and its operational programmes, and with its assistance activities to national and regional policies.

The Organization will have to see that it can meet the specific needs of its member countries that find themselves at different stages of development, in particular the least developed countries, the small island developing states and the landlocked countries. The reinforcement of human resources is a priority in this regard. The Organization now has modern remote-training technology that will be applied in cooperation with selected universities in its member countries.

Conclusion

The immediate challenge for FAO and its Members is to find the means to reduce hunger and to ensure the basic human right to food.

We need to act decisively and promptly to this end, if all national and international stakeholders are to work together in a concerted effort, in the framework of an International Alliance Against Hunger.

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