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PWB CHAPTER 3: COOPERATION AND PARTNERSHIPS

Major Programme 3.1: Policy Assistance

Regular Programme

 

US$000

 

Expenditure before staff cost variance

26,477

 

Staff cost variance

(675)

 

Expenditure

25,802

 

Programme of Work

27,036

 

(Over)/Underspending, US$ '000

1,234

 

(Over)/Underspending, %

5%

Field Programme

 

US$000

 

Extrabudgetary TF and UNDP delivery

13,506

 

Extrabudgetary emergency project delivery

586

 

TCP delivery

3,597

 

Total Field Programme delivery

17,689

 

Ratio of Field to Regular Programme

0.7

 

Technical support services, prof. staff cost

8,112

 

Technical support services, % of delivery

46%

Achievements

426. This major programme provides advice and assistance to Member Nations in the formulation of national and sectoral strategies, programmes and policies to enhance food security and sustainable agriculture and rural development. It addresses related capacity building, and strengthening the legal framework and instruments. It also supports rehabilitation programmes in the aftermath of complex emergencies, and the programming and coordination of available internal and external resources. Underspending in this major programme was used to cover overexpenditure resulting from income shortfalls in other major programmes of this chapter.

Programme 3.1.1: Coordination of Policy Assistance and Related Capacity Building

427. The programme is carried out by the Policy Assistance Division (TCA) and supports Policy Assistance Branches (PABs) and Units (PAUs) in the formulation of agricultural policy and preparation of strategies for sustainable agricultural development and food security. Its objectives are to:

428. One-day national workshops (32 in Africa, 20 in Asia, 11 in Central and Eastern Europe, 27 in Latin America and the Caribbean and 14 in the Near East and North Africa) were organized to review national strategies for food security, taking into consideration the national Poverty Reduction Strategies. Participants included representatives from governments, farmers' organizations, non-governmental organizations (NGOs), research and academic institutions, consumer associations, parliamentarians and donors. Regional Programmes for Food Security (RPFS) were prepared in partnership with regional economic organizations. Policy advice and technical support were provided to the agriculture and market access component of the New Partnership for African Development (NEPAD). Country briefs were prepared and incorporated into the Field Programme Management Information System (FPMIS).

429. Regional and Subregional Offices and National Representations were advised on the preparation of technical assistance programmes at the country and regional level, based upon national and regional strategies for food security and agricultural and rural development. Workshops were organized to enhance the services provided by PABs and PAUs to FAORs in field programme and SPFS development.


Regional Programmes for Food Security (RPFS)

FAO broadened its partnership with 12 Regional Economic Organizations in Africa, the Caribbean and South Pacific, providing assistance to:

  • identify regional issues/constraints affecting food security, agriculture and rural development;
  • prepare RPFS, including a plan of operation to address regional constraints;
  • prepare detailed projects for submission to donors, and facilitate resource mobilization for their implementation.

The RPFS projects incorporated a combination of production and productivity increases at the level of small farmers, development of domestic markets and of regional and international trade. Priority was given to structural reforms for sustainable growth, harmonization of policies, reduction of barriers to trade and development of human resources at both the national and regional level.

430. Multilateral trade negotiations on agriculture: a resource manual was published in English, French, Spanish and Arabic. Manuals on the Reform and decentralization of agricultural services: a policy framework and Agricultural development policy: concepts and experiences were also published and technical guidelines on land, water and producer incentives policies prepared. Training materials on integrating environmental considerations in local agricultural development were finalized. Analytical tools and materials were prepared on subsector and poverty analysis. Updated software to formulate investment projects was released. The Country Information System was integrated into the FPMIS.


Multilateral trade negotiations on agriculture: a resource manual

This manual incorporated material from 14 subregional workshops conducted under the Umbrella Training Programme and presents the basic concepts of the World Trade Organization (WTO) agreements that most directly affect agriculture:

  • The Agreement on Agriculture (AoA)
  • The Agreement on the Application of Sanitary and Phytosanitary Measures (SPS)
  • The Agreement on Technical Barriers to Trade (TBT) and
  • The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS)

The manual draws on FAO's analytical and field experience in food and agriculture, fisheries and forestry, and includes: i) the assessment of the global food supply and demand situation; ii) the analysis of the impact of WTO agreements on agricultural commodity markets and food security at the world, regional and national levels; iii) the harmonization of international scientifically based and risk-assessed standards for food quality and safety through the Codex Alimentarius Commission; iv) phytosanitary standards through the International Plant Protection Convention (IPPC); and v) the conservation and utilization of genetic resources for food and agriculture through the Commission on Genetic Resources for Food and Agriculture (CGRFA).

Complementary activities carried out by the Commodities and Trade Division (ESC) are reported under Programme 2.2.4.

431. Twenty-three capacity-building projects were backstopped and 18 new projects formulated. With the assistance of extrabudgetary funds, 17 national and 23 regional training courses and workshops for capacity building were organized for more than 1,250 participants (about 20 percent women).

432. Follow-up activities to the Evaluation of FAO's Policy Assistance (Chapter 4 of the Programme Evaluation Report 2001) were implemented and support provided for the establishment of Policy Task Forces. The training process on the project cycle was assisted and software for distance-learning training activities over the Internet was developed.

Programme 3.1.2: Policy Assistance to Various Regions

433. The programme covers policy assistance provided by Regional and Subregional Offices and includes support to the field programme, multidisciplinary country focus, and sector/subsector reviews and analysis of selected policy issues.

434. PABs and PAUs promoted and supported the country focus approach in Regional and Subregional Offices. Sector analysis activities supported policy assistance work at national levels, and in connection with RPFS and Common Agricultural Policy issues. Progress was made in ensuring the participation of Technical Regional Groups and Multidisciplinary Units in Country Task Forces.

435. In partnerships with major donors and international and regional financial institutions, programming missions were undertaken in 18 countries with emphasis on SPFS, RPFS, addressing institutional constraints, natural resource utilization and transition processes. Agricultural policy networks in Asia and the Near East were supported and FAO representatives assisted in identifying programmes for technical cooperation in discussions with government officials and the Resident Coordinator System on Common Country Assessments (CCA) and United Nations Development Assistance Frameworks (UNDAF). Sectoral contributions to Poverty Reduction Strategies were provided and an Early Agriculture Rehabilitation Strategy prepared for Afghanistan.

436. Technical papers produced included: A strategic framework for the sustainable agricultural development in the Near East Region; Trade liberalization policies, international-regional trade and opportunities for sustainable agriculture in the Near East; Input/output marketing in remote areas of eastern and southern Africa; and Challenges in agriculture, forestry and fisheries in Latin America and the Caribbean. Meetings organized included: a regional NGO/CSO consultation in Asia, in preparation for the WFS:fyl; an expert consultation on input/output marketing in remote areas in eastern and southern Africa; a workshop on strategy for small and medium farms in the Arab Maghreb Union; an expert consultation on water policy reform in Central Asia; and a workshop on food security in Russia.

437. Policy advisory missions were undertaken to 76 countries, 69 field projects were formulated and 50 projects backstopped. Over 100 national strategies on food security and rural development were reviewed and amended. Advice on intraregional trade and the impact of the Uruguay Round on agricultural production and food security was provided to 85 countries. Other advisory assistance related to competitive and comparative advantage of agriculture in Asia; agricultural subsidies and the development of the agricultural sector in the Near East; challenges in agriculture, forestry and fishery in Latin America and the Caribbean; and the impact of land fragmentation and re-engineering of agricultural policies in selected southeastern European countries.

Programme 3.1.3: Legal Assistance to Member Nations

438. The Programme, which is delivered by the Development Law Service of the Legal Office (LEG), provided extensive advice and support to developing countries on legal issues of agriculture and natural resources management. Advisory assistance was provided to Seychelles on the management of agricultural germplasm, part of an increasing interest in plant genetic resources by member countries, to some extent because of the FAO Treaty on Plant Genetic Resources for Food and Agriculture. Assistance was also provided on wine legislation (in Georgia) in order to encourage investment, as well as on veterinary, plant protection, water, fisheries and forestry law. The legislative database continued to expand, with particular emphasis on full texts and continuous correction and updating of existing entries. At the end of the biennium over 24,000 full texts were accessible online.

TABLE 3.1-1. LEGAL ASSISTANCE TO MEMBER NATIONS (SELECTED PERFORMANCE INDICATORS)

 

1998-99

2000-01

Field missions by staff and consultants (person months)

112

92

Project delivery (US$ '000)

Projects operated by LEG

1,800

1,300

Projects with LEG as lead technical unit

1,500

1,500

Documentation

Abstracts of legislation - new

6,500

9,600

Abstracts of legislation - revised

-

5,000

Full texts online

5,000

20,000

Publications (pages) - printed

1,912

526

Publications (pages) - online

209

624

Major Programme 3.2: Support to Investment

Regular Programme

 

US$000

 

Expenditure before staff cost variance

45,724

 

Staff cost variance

(630)

 

Expenditure

45,094

 

Programme of Work

46,546

 

(Over)/Underspending, US$ '000

1,452

 

(Over)/Underspending, %

3%

Field Programme

 

US$000

 

Extrabudgetary TF and UNDP delivery

871

 

Extrabudgetary emergency project delivery

0

 

TCP delivery

2,099

 

Total Field Programme delivery

2,970

 

Ratio of Field to Regular Programme

0.1

 

Technical support services, prof. staff cost

0

 

Technical support services, % of delivery

0%

Achievements

439. The major programme assisted developing countries and countries in transition by providing a range of investment support services. Resources were concentrated on assistance in formulating investment projects to attract financing and grants from multilateral institutions supporting agriculture, rural development and environmental interventions. Investment support services are carried out by the Investment Centre Division (TCI) under cooperative agreements with the principal international financing institutions:

Underexpenditure was required to compensate for an income shortfall of US$ 1.7 million in comparison to the level planned in the PWB 2000-01.

440. In addition, the Investment Centre provides technical assistance to the World Food Programme (WFP) in the formulation, appraisal and evaluation of WFP country strategies, programmes and projects, focusing particularly on interventions in support of its food aid for development policy.

441. Collaboration was also strengthened with the Global Environment Facility (GEF). The Centre was appointed the focal point for FAO's expanding GEF work programme to provide support to FAO technical divisions and undertake formulation of GEF projects. The formulation of projects expanded, covering priority areas for joint GEF/FAO assistance to member countries, including persistent organic pollutants, biodiversity, international waters and climate change.

442. The major programme encompasses the FAO/World Bank Cooperative Programme (CP), which assists member countries in preparing projects for financing by the World Bank/International Development Association (WB/IDA), and the Investment Support Programme (ISP), which helps countries obtain funding for projects from other associated financing institutions. ISP is also responsible for assisting member countries in preparing investment projects for financing under Trust Fund arrangements or from domestic resources, and for formulating complex, multidisciplinary, technical assistance projects. Under the CP, 75 percent of the costs of the assistance provided by FAO are paid by the World Bank. Missions carried out through ISP are also reimbursed under cost-sharing arrangements with the institutions concerned.

443. The number of projects prepared with substantial TCI assistance and approved for financing increased from previous biennia (Table 3.2-1). In 2000-01, financing was approved for 90 projects, compared with 79 in 1998-99 and 88 in 1996-97. However, external financing commitments were US$2.5 billion in 2000-01 compared with US$3.2 billion in 1998-99, and total investments (including both external and domestic financing resources) were similarly lower in 2000-01 at US$3.7 billion, compared with US$4.7 billion in 1998-99 and US$5.4 billion in 1996-97. While the increase in project preparation activities during the biennium included a substantial increase in SPFS and TCP project preparation, not counted previously, the decline in external resources mobilized reflects the overall trend in decreasing official development assistance (ODA) to the agriculture and rural development sectors.

TABLE 3.2-1. INVESTMENT CENTRE ASSISTED PROJECTS APPROVED FOR FINANCING

 

World Bank

IFAD

Regional development banks

UNCDF

Other

Total

Number of projects

1996-97

46

19

13

1

9

88

1998-99

41

12

17

2

7

79

2000-01

36

13

17

0

24

90

External finance, US$ '000

1996-97

2,600,890

341,770

457,090

5,550

70,860

3,476,160

1998-99

2,729,110

196,080

222,130

10,650

75,610

3,233,580

2000-01

1,666,380

317,250

342,440

0

198,820

2,524,890

Government funds, US$ '000

1996-97

1,479,480

261,860

164,750

420

50,590

1,957,100

1998-99

1,301,960

71,840

37,400

790

56,930

1,468,920

2000-01

626,560

180,270

115,780

0

275,870

1,198,480

Total investment, US$ '000

1996-97

4,080,370

603,630

621,840

5,970

121,450

5,433,260

1998-99

4,031,070

267,920

259,530

11,440

132,540

4,702,500

2000-01

2,292,940

497,520

458,220

0

474,690

3,723,370

444. With regard to sources of funds, the percentage of external financing committed to the above projects assisted by the Investment Centre varied from 1998-99. Figure 3.2-1 shows that the World Bank remained the dominant partner in 2000-01, although its commitment dropped considerably to 61 percent of the total funding (down from 85 percent in 1998-99). IFAD financing doubled to 10 from 5 percent, and regional development banks also greatly increased to 16 percent (up from 7 percent). Other sources mobilized, which included SPFS and TCP funding not counted previously, increased to 13 percent (up from 3 percent). It is notable that the total external financing from IFAD and the regional development banks increased significantly in 2000-01, even though the number of approved projects remained essentially constant compared with 1998-99 levels.

445. While IFAD and the regional development banks increased from 1998-99, total investment committed by the World Bank fell from US$4.0 billion in 1998-99 to some US$2.3 billion in 2000-01 (Figure 3.2-2).

446. Earlier approaches to investment project formulation, with distinct phases of identification, preparation and appraisal, have evolved into a continuous process in which the country, the financing institution and the Investment Centre may all be engaged throughout, from initial concept to approved financial package. Thus the Centre, in addition to playing a major role in formulating the projects, often contributed specialized assistance at critical stages in the processing of projects. With the growth in national project preparation capacities, the Centre less frequently assumed full responsibility for project preparation. Instead, resources are increasingly used to backstop and provide on-the-job training for national preparation teams, which require shorter, smaller and more frequent missions. This is reflected in the number of missions, which increased from 1,059 in 1998-99 to 1,232 in 2000-01, while the number of person days utilized declined (Table 3.2-2).

TABLE 3.2-2. INVESTMENT CENTRE MISSIONS

 

Subsector analysis

Project identification

Project preparation

Assessment of
project results

Appraisal and supervision

Total

Number of missions

1996-97

61

163

322

60

297

903

1998-99

69

109

361

67

453

1,059

2000-01

78

129

367

63

595

1,232

Number of person days

1996-97

2,844

5,826

20,770

3,361

14,834

47,635

1998-99

2,761

4,738

22,053

2,530

12,121

44,203

2000-01

2,893

4,756

16,993

2,405

14,952

41,999

447. The range of services provided by the Investment Centre has broadened, not only in terms of increasing upstream and downstream work during the investment project cycle, but also undertaking a greater advocacy role in promoting investment for hunger eradication and reduction of poverty. The Centre organized a High-Level Panel on Resources Mobilization for Food Security and for Agricultural and Rural Development, which brought together the main international financing institutions to explore ways to reverse the declining investment trends indicated above and to make recommendations for consideration at WFS:fyl. Similarly, support to member countries in preparing to launch or extend SPFS activities and in setting up arrangements for South-South cooperation has expanded.


Linking technical assistance with investment planning -
Investment Centre collaboration with FAO technical divisions

The linkage to investment can generate a multiplier effect for FAO's programmes and field activities, as well as ensure the implementation of technically sound investment projects. Emphasis is being given to increased interdepartmental collaboration, particularly in tackling food security, natural resource degradation and agricultural services. During 2000-01, the Investment Centre continued to assist developing countries in the design of their Special Programme for Food Security. In addition, the Centre was appointed focal point for FAO's enlarged work programme with the Global Environment Facility and assisted technical divisions in developing their environmental project portfolios. Interdepartmental and inter-agency work in Africa served to address the problems of food security in the Horn of Africa countries. In Africa and the Near East, similar collaboration has addressed improved water management, soil fertility, food quality, agricultural statistics and the sustainable development of onchocerciasis-freed areas. Investment Centre and other FAO staff also worked together to provide legal and related policy advice to governments; technical help in poverty alleviation and natural resources management, rural finance and land tenure improvements, agro-industries and marketing expansion; and the development and application of information and communication technology in rural areas.

448. Contributions were made to several important joint agency and interdepartmental programmes, covering such areas as enhancing long-term food security in the Horn of Africa; promoting extra concessional and grant funds for agricultural and rural development; developing poverty reduction strategy papers under the Initiative for heavily indebted poor countries (HIPC); supporting the sustainable development of onchocerciasis-freed areas in West Africa and the Soil Fertility Initiative for sub-Saharan Africa; improving marine ecosystem management for countries bordering on the Bay of Bengal; strengthening agro-industries and marketing in Eastern Europe and the Commonwealth of Independent States (CIS); promoting telecentres in Latin America for rural development; and supporting sustainable food security in the Near East. Assistance was provided in the preparation of the WB/FAO Global Farming Systems Study which contributed to the World Bank's revision of its Rural Development Strategy and in helping the World Bank revise its strategy to improve national agricultural knowledge and information systems for rural development.

449. The number of investment projects assisted increased slightly (Table 3.2-3) from 66 in 1998-99 to 70 in 2000-01. Assistance was provided to 31 countries to prepare SPFS activities and mobilize further financial support for the SPFS from the World Bank, African Development Bank and Islamic Development Bank. Member countries were also assisted in implementing 22 TCP projects (12 related to SPFS) and the backstopping of 44 TCP projects (30 related to SPFS).

TABLE 3.2-3. NUMBER OF PROJECT FORMULATIONS COMPLETED

 

World Bank

IFAD

Regional development banks

UNCDF

Other

Total

1996-97

36

12

12

1

3

64

1998-99

23

10

28

0

5

66

2000-01

31

11

14

0

14

70

450. Project design methodology was adapted to changing national priorities and the requirements of financing institutions, emphasizing the full participation of all stakeholders with the aim of improving project relevance, impact and sustainability. Increased focus was given to food security, poverty reduction, hunger eradication and environmental impact assessment of projects.

451. Changes in regional distribution of projects approved for financing in 2000-01 are shown in Table 3.2-4. The percentage of projects in Africa remained constant (39 percent in 2000-01 compared with 1998-99), while in the Near East and North Africa projects decreased from 11 to 7 percent and in Europe from 17 to 12 percent. The percentage of projects approved in Latin America and the Caribbean increased from 18 to 23 percent and in Asia and the Pacific from 14 to 19 percent.

TABLE 3.2-4. INVESTMENT CENTRE ASSISTED PROJECTS APPROVED FOR FINANCING BY REGION

 

Africa

Asia and the
Pacific

Near East and
North Africa

Latin America
and Caribbean

Europe

Total

Number of projects

1996-97

32

16

5

22

13

88

1998-99

30

11

8

14

13

76

2000-01

35

17

6

21

11

90

External finance, US$ '000

1996-97

529,850

1,115,490

13,170

1,415,650

278,000

3,476,160

1998-99

558,760

940,900

567,580

899,200

243,580

3,210,020

2000-01

972,380

670,640

186,320

384,870

310,680

2,542,890

452. Distribution of external financing by region in 2000-01 compared with 1998-99 (Table 3.2.4) considerably increased in Africa (US$972 million, from US$559 million) and Europe (US$311 million, from US$244 million). There was a decrease in external financing in the Near East and North Africa from US$568 million to US$186 million, in Asia and the Pacific from US$941 million to US$671 million, and in Latin America and the Caribbean from US$ 899 million to US$ 385 million, reflected in a reduction in approved projects. The proportions of investment by region is shown in Figure 3.2-3.

453. External funding committed to least developed countries (LDC) increased significantly to 35 percent in 2000-01 from 15 percent in 1998-99. Part of this increase resulted from the inclusion of SPFS and TCP projects, not counted in previous biennia. In addition, ODA declined more in other countries than in the LDC. The number of LDC projects financed increased from 26 to 30, but remained about one-third of the total (Figure 3.2-4).

Major Programme 3.3: Field Operations

Regular Programme

 

US$000

 

Expenditure before staff cost variance

19,979

 

Staff cost variance

(1,143)

 

Expenditure

18,836

 

Programme of Work

20,987

 

(Over)/Underspending, US$ '000

2,151

 

(Over)/Underspending, %

10%

Field Programme

 

US$000

 

Extrabudgetary TF and UNDP delivery

363

 

Extrabudgetary emergency project delivery

700

 

TCP delivery

3,102

 

Total Field Programme delivery

4,165

 

Ratio of Field to Regular Programme

0.2

 

Technical support services, prof. staff cost

1,409

 

Technical support services, % of delivery

34%

Achievements

454. This Major Programme oversees all phases of the FAO technical assistance programme/project cycle, including project execution and implementation, ensuring feedback of field experience to the technical departments. The Field Operations Division (TCO) was responsible for the Major Programme. A Task Force on Field Programme Development examined the reasons for the decline of the field programme over past biennia. Acceptance by the Director-General of the Task Force's recommendations for instilling new vigour into the field programme resulted in several new initiatives, including:

Underexpenditure resulted from the need to compensate for a US$ 2.5 million shortfall in support costs income from the level anticipated in the PWB 2000-01.


Decentralization of operations

New arrangements for the further decentralization of field programme operational responsibilities were initiated in September 2000 under the direction of a Change Management Team, headed by the Deputy Director-General and with representatives from technical and administrative divisions and the full participation of the Regional Offices. Implementation, undertaken in two phases over a one-year period, involves the transfer of operational responsibility as follows:

  • operation of national projects by the FAOR, in countries having an FAOR;
  • operation of regional projects by the relevant Technical Department Group of the Regional Offices or, in the absence of a matching technical discipline, by the Regional Operations Branch; and
  • operation of global and interregional projects by the relevant headquarters technical division.

Regional Operations Branches continue to have operational responsibilities for national projects in countries without FAO Representations and in countries under double accreditation. In addition, they are charged with providing advice and guidance to the new budget holders in Country and Regional Offices and with monitoring and reporting on field programme delivery.

During the biennium, 324 projects were transferred to new budget holders. Fourteen training courses were attended by some 150 FAORs and National Professional Officers from 74 countries, after which operational responsibility for 275 national projects was transferred from Regional Offices to the FAO Representations. In addition, 23 national projects in Eastern Europe were transferred from TCO to the Regional Office for Europe, and ten projects from TCO to headquarters technical divisions. The operation of 16 regional projects was also transferred from Regional Operations Branches to Regional Technical Department Groups.

455. The new arrangements for field operations identified the need for a more effective and efficient approach to all aspects of the project cycle, from field programme development through to final project closure. Recognizing the need for a fully integrated system that would provide complete information on field activities and allow for easy monitoring of field programmes operated by many budget holders in different geographic locations, an FPMIS was created and launched in June 2001. This allows the generation of regular or ad hoc reports at all levels of detail, and facilitates internal and external links to related project and country information. Easy access to project financial data in the Oracle Data Warehouse is provided through a direct link in FPMIS. A revised approach to the distribution of support cost reimbursements was developed, based on the principle of "money follows work", and endorsed by the Field Programme Committee in 2001 for implementation on a trial basis.

456. Measures were also initiated for reorganization of TCO at the beginning of 2002 and updating of the Field Programme Manual to provide clear guidelines and procedures based on the new arrangements for the field programme, the new financial management system and other relevant changes.

457. Field programme delivery has grown steadily since 1996-97 and reached US$687.2 million in 2001-02, an increase of 24 percent over 1998-99 (Table 3.3-1). However, this was mainly due to increases in emergency assistance, with the Iraq Oil for Food Programme expanding about 70 percent to US$249 million in 2000-01 and a nearly threefold increase in other special relief operations to US$76.3 million from US$27.2 million in 1998-99. Delivery also increased in several other areas, particularly Unilateral Trust Funds, which grew by 22 percent to US$48.1 million. Overall, the non-emergency portion of the field programme declined by about 5 percent in 2000-01, a significant improvement over the 14 percent decline in 1998-99.

TABLE 3.3-1. EXPENDITURES ON FAO FIELD PROGRAMMES (US$ MILLION)

Description

1996-97

1998-99

2000-01

FAO/UNDP

     

FAO execution

58.4

32.0

19.7

FAO implementation

26.0

17.2

7.8

SPPD/STS

7.8

8.2

6.3

Total UNDP

92.2

57.4

33.8

TRUST FUNDS

     

Trust Funds - Non-emergency

     

FAO/Government Cooperative Programme (GCP)

176.2

161.3

157.9

Associate Professional Officer (APO) Programme 

30.3

22.5

19.4

Unilateral Trust Funds (UTFs)

45.4

39.3

48.1

UN Population Fund (UNFPA)

5.2

5.8

5.0

UN Environment Programme (UNEP)

1.0

1.0

0.8

Other UN organizations

8.5

8.5

8.7

TeleFood

 

2.3

3.4

Miscellaneous Trust Funds

3.5

5.1

7.5

Total non-emergency

270.1

245.8

250.8

Trust Funds - emergency assistance

     

Oil for Food

28.1

147.8

249.0

Other special relief operations

22.5

27.2

76.3

Total emergency assistance

50.6

175.0

325.3

Total Trust Funds

320.7

420.8

576.1

Total external funding

412.9

478.2

609.9

Regular Programme

     

Technical Cooperation Programme (TCP)

72.6

70.0

68.5

Special Programme for Food Security (SPFS)

8.5

7.0

8.8

Total Regular Programme

81.1

77.0

77.3

TOTAL FIELD PROGRAMMES

494.0

555.2

687.2

458. The distribution of 2000-01 expenditure by source of funds (Figure 3.3-1) changed significantly from 1998-99. Emergency assistance composed of the Iraq Oil for Food Programme and other special relief operations accounted for 47 percent of field programme expenditures in 2000-01 compared with 32 percent in 1998-99. Other major changes were in UNDP, which decreased from 10 percent in 1998-99 to 5 percent in 2000-01 and the FAO/Government Cooperative Programme which declined from 29 to 23 percent. The share of field programme expenditure for Unilateral Trust Funds, the Associate Professional Officer Programme, and TCP/SPFS changed less than 3 percent in 2000-01.

459. The FAO share in the execution or implementation of UNDP-funded programmes declined from approximately 1.3 percent in 1998-99 to an estimated 0.7 percent in 2000-01, continuing the steady downward trend (Figure 3.3-2). FAO delivery of UNDP projects declined from US$57.4 million in 1998-99 to US$33.8 million in 2000-01.

460. Approximately 60 percent of the projects approved and operational in 2000-01 had budgets of less than US$250,000, more than half of these being between US$100,000 and US$250,000, as shown in Figure 3.3-3. Of the large projects with budgets above US$1 million, half were related to emergency activities. TCP and SPFS accounted for 51 percent of the new projects approved, followed by non-emergency Trust Funds at 23 percent and emergency-related Trust Funds at 18 percent. UNDP projects declined to 8 percent of total projects from 10 percent in 1998-99.

461. FAO field activities continued to be largely concentrated under Major Programme 2.1: Agricultural Production and Support Systems (Table 3.3-2), which accounted for over 67 percent of the total field programme delivery in 2000-01 (up from 59 percent in 1998-99), with Programme 2.1.2: Crops accounting for 47 percent of total delivery and Programme 2.1.3: Livestock for a further 13 percent. The increasing share of the Major Programme in delivery was mainly due to the focus of emergency assistance on short-term agricultural interventions such as distribution of seeds, tools and fertilizer, pest management, livestock feed and animal health. Major Programmes 2.4: Forestry, with 9 percent and Major Programme 2.5: Contribution to Sustainable Development and Special Programme Thrusts with 10 percent had significant field programme delivery during 2000-01.

TABLE 3.3-2. FIELD PROGRAMME DELIVERY BY TECHNICAL PROGRAMMES, 2000-01 (PERCENTAGE)

Programme

TF/UNDP

Emergency

TCP/SPFS

Total

2.1.1:

Natural Resources

9.2

1.6

10.2

5.7

2.1.2:

Crops

18.2

76.5

30.8

47.2

2.1.3:

Livestock

6.1

18.8

9.6

12.5

2.1.4:

Agricultural Support Systems

2.5

0.7

4.0

1.8

2.1.5:

Agricultural Applications of Isotopes and Biotechnology

0.1

0.0

0.4

0.1

2.1:

Agricultural Production and Support Systems

36.1

97.6

55.0

67.3

2.2.1:

Nutrition

1.6

0.5

4.8

1.4

2.2.2:

Food and Agricultural Information

3.0

0.0

3.2

1.6

2.2.3:

Food and Agricultural Monitoring, Assessments and Outlooks

2.4

0.6

0.1

1.3

2.2.4:

Agriculture, Food Security and Trade Policy

2.2

0.0

0.4

1.0

2.2:

Food and Agriculture Policy and Development

9.2

1.1

8.5

5.3

2.3:

Fisheries

8.7

0.2

4.8

4.3

2.4:

Forestry

20.2

0.6

3.8

9.0

2.5.1:

Research, Natural Resources Management and Technology Transfer

5.1

0.1

2.4

2.4

2.5.2:

Women and Population

2.4

0.0

0.7

1.1

2.5.3:

Rural Development

5.1

0.0

2.3

2.4

2.5.6:

Food Production in Support of Food Security in LIFDCs

6.5

0.0

10.7

3.9

2.5:

Contributions to Sustainable Development and Special Programme Thrusts

19.1

0.1

16.1

9.8

3.1:

Policy assistance

4.7

0.2

4.7

2.6

Non-technical programmes

2.0

0.2

7.1

1.7

Total

100.0

100.0

100.0

100.0

462. The main change in regional distribution of the field programme was the continued increase in delivery to the Near East and North Africa (Figure 3.3-4), mainly due to the Oil for Food programme in Iraq, which increased the Near East share of total delivery to 44 percent in 2000-01 from 33 percent in 1998-99. Europe's share also rose, from 2 to 6 percent, while the share of all other regions declined. Africa dropped from 24 to 19 percent and Asia and the Pacific from 17 to 11 percent, with declines of 1 percent in Latin America and the Caribbean and in interregional/global projects.

463. Because of the significant effect of the Iraq Oil-for-Food programme, the figure below shows the field programme delivery by region with this programme excluded.

464. Project delivery in LDCs continued to decline as a percentage of total field activities (Table 3.3-3). LDCs accounted for 20 percent of field programme delivery in 2000-01 compared with 23 percent in 1998-99. The decline in the percentage of Trust Fund resources in LDCs resulted from the large increase in the Oil for Food Programme and other emergencies. In terms of total delivery, funds to LDCs increased by 7 percent to US$ 134 million in 2000-01 from US$ 125 million in 1998-99, with the decline in UNDP resources being more than offset by increases in Trust Funds and TCP/SPFS.

TABLE 3.3-3. PROJECT DELIVERY IN LDCS (PERCENTAGE)

Funding source

1996-97

1998-99

2000-01

Trust Fund

19.4

14.5

13.3

UNDP

62.8

66.3

73.4

TCP/SPFS

41.4

34.1

41.8

Total

30.5

22.6

19.5

465. In terms of the distribution of project delivery in LDCs by funding source, Trust Funds accounted for 57 percent in 2000-01 compared with 49 percent in 1998-99 (Table 3.3-4). The UNDP share continued to decline from 30 percent in 1998-99 to 19 percent in 2000-01.

TABLE 3.3-4. PROJECT DELIVERY IN LDCS BY FUNDING SOURCE (PERCENTAGE)

Funding source

1996-97

1998-99

2000-01

Trust Fund

42.0

48.7

57.3

UNDP

35.7

30.3

18.6

TCP/SPFS

22.3

20.9

24.1

Total

100.0

100.0

100.0


Emergency relief and early rehabilitation

The scale of FAO's emergency work has increased and broadened in scope to include both the supply of agricultural inputs immediately following disasters and early rehabilitation in post-conflict situations. The value of emergency delivery has increased progressively from US$51 million in 1996-97 to US$175 million in 1998-99 and US$325 million in 2000-01. Emergency assistance includes emergency relief and early rehabilitation programmes around the globe and the Iraq Oil for Food Programme, the Organization's largest emergency and rehabilitation programme.

Emergency relief and early rehabilitation activities during 2000-01 responded both to natural disasters and interventions addressing long-term complex emergencies. Expenditures on natural disasters and complex emergencies totalled over US$76 million, nearly three times the US$27 million of 1998-99. To respond to these situations, FAO set up Emergency Agriculture Coordination Units in over 15 countries or regions, including Afghanistan, Angola, Burundi, the Democratic Republic of the Congo, Eritrea, Indonesia, Iraq, Liberia, Rwanda, Sierra Leone, the Sudan and Tajikistan, to serve as focal points for the coordination of all emergency activities relating to agriculture in disaster-affected countries.

Natural disaster assistance covered, for example, drought in Central Asia and the Horn of Africa, floods in Mozambique and dzud (disastrous weather events) in Mongolia. Interventions focused on providing farmers with essential agricultural relief inputs required for the next planting season (seeds, hand tools and fertilizer) or to prevent further loss of livestock through disease or lack of fodder.

In longer-term and chronic emergencies involving conflicts and the displacement of populations (Angola, Great Lakes region, Indonesia, Kosovo and the Sudan), the focus was on assisting the most vulnerable groups to resume agricultural production in their new areas or in their home regions upon return. In addition to agricultural relief needs (seeds, tools, vaccination, etc.), support was provided for early rehabilitation activities, such as seed multiplication schemes, restocking of livestock and assistance in repairing essential agricultural machinery.

The Iraq Oil for Food Programme continued to expand in 2000-01. Within the framework of this programme, FAO is entrusted with:

  • monitoring and reporting on the equitable distribution of the agricultural inputs procured by the Government of Iraq to beneficiaries in the 15 central and southern governorates;
  • monitoring the receipt, storage and end use of potential "dual-purpose" items (such as veterinary vaccines and agricultural helicopter spare parts);
  • full implementation of the agricultural programme in the three northern governorates, including procurement of goods on international markets, receipt and storage at FAO warehouses, distribution to beneficiaries through FAO suboffices, and monitoring and reporting on project activities.

FAO expenditures under the programme expanded from US$28 million in 1996-97 to US$148 million in 1998-99 and US$249 million in 2000-01.

The programme's orientation has progressively shifted from simple "input delivery" activities to a more complex "programme-oriented" approach. Assistance currently targets a wide range of agricultural subsectors, including animal health and production, plant protection and production, farm mechanization, extension, training and research, forestry, fisheries, agrometeorology, water resources and irrigation and agro-industry. Projects implemented in the northern governorates involve a vast range of field activities such as the rehabilitation of irrigation schemes, support to the diagnostic capacity of veterinary laboratories, backyard poultry vaccination campaigns for vulnerable communities in remote areas, artificial insemination campaigns and the strengthening of agricultural extension and research networks.

Major Programme 3.4: FAO Representatives

Regular Programme

 

US$000

 

Expenditure before staff cost variance

72,455

 

Staff cost variance

(3,085)

 

Expenditure

69,370

 

Programme of Work

72,403

 

(Over)/Underspending, US$ '000

3,033

 

(Over)/Underspending, %

4%

Field Programme

 

US$000

 

Extrabudgetary TF and UNDP delivery

328

 

Extrabudgetary emergency project delivery

0

 

TCP delivery

0

 

Total Field Programme delivery

328

 

Ratio of Field to Regular Programme

0.0

 

Technical support services, prof. staff cost

5,478

 

Technical support services, % of delivery

1670%

Achievements

466. FAO Representatives (FAORs) continued their regular liaison work with the governments to which they are accredited, including the promotion of coordinated World Food Summit (WFS) follow-up. Assistance was provided to country delegations in preparing for the WFS:fyl, the FAO Conference, Council, Regional Conferences and other international and inter-agency events within the Organization's mandate. Underspending was largely the result of the positive staff cost variance and, therefore, beyond the control of the FAORs.

467. World Food Day (WFD) and TeleFood activities undertaken at national level, with the support of FAORs, have evolved from being ceremonial-type events into public awareness activities. These now form an important part of the Organization's outreach and communication strategy. All countries covered by FAORs had either a WFD committee or WFD focal point.

468. FAORs liaised on a regular basis with regional organizations based in their accreditation countries. They continued to monitor the situation of the agricultural sector and food supplies in their countries and to keep headquarters informed of important events and impending problems. In countries hit by natural or human-induced disasters, FAORs provided vital liaison functions with the governments concerned and contributed to the needs assessment for emergency intervention in the agricultural sector.

469. Assistance by FAORs to technical programmes included logistical and administrative support for missions undertaken by staff members from headquarters, Regional and Subregional Offices; organization of meetings and training activities; and disbursement of funds at the request of technical units. Other areas of assistance were the identification of consultants; handling of data collection and questionnaires on behalf of technical units; advocacy on technical issues; assistance to dissemination of publications through the FAO Representation libraries; and provision of status reports on technical activities of the government.

470. FAORs also provided assistance in investment activities, policy advice and field programme development in their countries of accreditation. Logistical and administrative support was provided to Investment Centre missions and the regional or subregional policy assistance officers in formulating national agricultural policies and programmes. The field programme was assisted through participation in the identification, formulation and appraisal of projects and by liaising with local donor representations. Contact with donors is increasingly important since authority for approval of their projects is increasingly delegated to the country level.

471. The distribution of logistical services by FAORs for missions to their countries is shown in Figure 3.4-1. Headquarters technical officers accounted for 37 percent of mission days, Investment Centre staff 19 percent, external consultants 16 percent and regional and subregional officers 15 percent. Annually, FAORs received on average 35 missions of approximately seven days duration.

472. A significant additional workload resulted from increased FAOR participation in national thematic groups affiliated to the UN System Network on Rural Development and Food Security and the activities of the UN Country Teams, as shown in Table 3.4-1. In particular, FAORs increasingly provide inputs related to agricultural and food security to the common country assessment (CCA), United Nations Development Assistance Framework (UNDAF) and Poverty Reduction Strategy Paper (PRSP) processes.

TABLE 3.4-1. NUMBER OF FAOR OFFICES PARTICIPATING IN UNITED NATIONS UNDERTAKINGS AT THE NATIONAL LEVEL

Description

1998-99

2000-01

UN System Network on Rural Development and Food Security

64

70

Common country assessment

27

40

United Nations Development Assistance Framework

9

26

Poverty Reduction Strategy Paper processes

0

37

473. With the adoption of the new arrangements for decentralized project operations, discussed in more detail under Major Programme 3.3, a large majority of FAORs assumed budget holder and operational responsibility for most national projects in their countries in the latter part of the biennium. By the end of 2001, FAO Representations had been designated as the operating units for over 475 projects, which during 2000-01 had expenditures of about US$130 million, although a significant portion of the expenditure was made prior to the projects being transferred to the FAORs. FAORs also continued to provide assistance as required to regional projects, emergency projects and national technical assistance projects operated by other units. This transfer of responsibility necessitated a comprehensive preparatory process, carried out in cooperation with TCO, that included the holding of 14 operations training courses attended by some 150 FAORs and national programme staff from 74 countries.

474. Emergencies situations caused significant additional pressure in a number of FAO Representations. The threefold increase in special relief operations to over US$75 million in 2000-01, excluding the Iraq Oil for Food Programme, impacted many of those countries with a Representation. The number of countries where the FAOR was assisted by a dedicated emergency coordination unit increased to 14 in 2000-01 from 11 in 1998-99.

475. In the 2000-01 biennium, the number of Member Nations increased to 183 from 179 in 1998-99, as shown in Table 3.4-2. FAO headquarters, Regional, Subregional and Liaison Offices continued to be hosted in the same 14 countries. The Organization maintained 72 fully fledged FAO Representations, excluding those combined with Regional or Subregional Offices and two Country Offices which remained closed for security reasons.

TABLE 3.4-2. COVERAGE OF FAO MEMBER NATIONS BY THE NETWORK OF FAO OFFICES

Description

1998-99

2000-01

Countries hosting headquarters, Regional, Subregional or Liaison Offices

14

14

Countries with fully fledged FAO Representations

72

72

Countries with outposted technical officers as FAORs

0

1

Countries covered by multiple accreditation

30

32

Countries without an accredited representative (including 38 developing countries)

63

64

Total

179

183

476. The Council at its 119th Session in November 2000 approved establishment of additional FAO Representations through the assignment of outposted technical officers. As a result, negotiations were initiated with a total of 18 countries and by the end of 2001 four agreements had been signed and one outposted technical officer had taken up his assignment as an FAOR.

477. The number of countries covered by multiple accreditation increased from 30 in 1998-99 to 32 in 2000-01. The number of national correspondents in these countries increased from 15 in 1998-99 to 19 in 2000-01; there were five national professional officers in both biennia.

478. While the network was thus somewhat extended, 38 developing countries remained without an accredited FAOR. The number of national correspondents in these countries increased from three in 1998-99 to five in 2000-01. However, FAO presence in developing countries without an accredited representative continued to be of an ad hoc nature, limiting the Organization's potential contribution to their humanitarian and development challenges and their access to FAO services.

479. The FAOR staffing structure remained largely unchanged in 2000-01 from 1998-99, as shown in Table 3.4-3.

TABLE 3.4-3. STAFF STRUCTURE IN FAO REPRESENTATIONS

Description

1996-97

1998-99

2000-01

International professional officers

94

92

92

National professional officers

65

65

65

General Service staff

620

606

606

Total FAO staff

779

763

763

Government-provided staff

136

152

148

Total staff in FAORs

915

915

911

480. The number of FAORs with effective e-mail connections increased from 61 at the end of 1999 to all offices by the end of 2001. However, access by FAORs to the Organization's Intranet and its corporate systems remained limited to FAORs located at Regional and Subregional Offices. Similarly, access to the Internet was hampered by the limitations of local information technology (IT) infrastructures that sometimes caused prohibitive response times. To overcome these obstacles, a contract for the installation of a wide area network (WAN) was signed in November 2001 and work initiated by AFI, as reported under Programme 5.2.2, Information Systems and Technology Services, for completion in the 2002-03 biennium. Information technology and telecommunications (ITC) support for the FAORs was also strengthened by the creation of a new Information Technology Officer post in OCD, with responsibility for ITC-related services for FAORs, Liaison Offices, the Subregional Office for Central and Eastern Europe (SEUR) and OCD.

481. Development of the Country Offices Information Network (COIN), a comprehensive management information system for country offices, was initiated and together with WAN is expected to eliminate much of the paper-based communications between headquarters and FAORs.

482. The system performance of the field accounting system (FAS) was improved by the adoption of more efficient and economical data transmission methods. Through a series of training of trainers (ToT) courses, a pool of resource persons was created to provide training or ad hoc assistance.

483. Host governments continued to contribute to the cost of FAOR offices by entirely or partially covering the cost of premises, national staff and utilities, or by providing cash contributions. It is estimated that the value of government contributions was equivalent to about 14 percent of the total expenditure on FAO Representations.

Major Programme 3.5: Cooperation with External Partners

Regular Programme

 

US$000

 

Expenditure before staff cost variance

9,962

 

Staff cost variance

(370)

 

Expenditure

9,592

 

Programme of Work

8,786

 

(Over)/Underspending, US$ '000

(806)

 

(Over)/Underspending, %

(9%)

Field Programme

 

US$000

 

Extrabudgetary TF and UNDP delivery

2,669

 

Extrabudgetary emergency project delivery

0

 

TCP delivery

0

 

Total Field Programme delivery

2,669

 

Ratio of Field to Regular Programme

0.3

 

Technical support services, prof. staff cost

275

 

Technical support services, % of delivery

10%

Achievements

484. The Major Programme promotes cooperation with multilateral and bilateral funding agencies, the private sector, civil society organizations (CSOs) and non-governmental organizations (NGOs), aimed at mobilizing additional resources for the agricultural and rural sectors of developing countries. It supervises implementation of partnership agreements introduced since 1994, World Food Day Special Events and TeleFood activities, and fosters economic and technical cooperation among developing countries. Overexpenditure was mainly the result of income earnings being US$ 0.5 million less than the amount forecast in the PWB 2002-01.

Programme 3.5.1: Multilateral and Bilateral Agencies

485. The programme focused on leveraging resources for FAO programmes and member countries, with particular emphasis on national capacity building in the development of the field programme. Efforts were made to increase the synergy between normative and operational activities and to enhance the dual function of the field programme in translating the concepts and findings developed through normative activities into action at country level and in enriching normative work through feedback from field experiences.

486. The Organization was successful in concluding Strategic Partnership Agreements (SPAs) with several multilateral and bilateral partners that allow longer-term interdisciplinary cooperation among technical departments and with other UN agencies, the private sector and national institutions. Among the agreements approved were several new programmes funded by the United Kingdom, the FAO/Netherlands Partnership Programme and expansion of the cooperative programmes with Belgium, Japan, Spain and Switzerland. There was an increased focus on the availability of, and access to information on donor policies and priorities through development of the Field Programme Management Information System (FPMIS).

487. During 2000-01 there was a shift in the Unilateral Trust Fund (UTF) programme from bank-funded to more country-funded of projects. The UTF programme increased, mainly as a result of "Presidential UTFs", concluded at the highest level of government and included the Dominican Republic, the Libyan Arab Jamahiriya, Nigeria, Saudi Arabia and Venezuela.

488. The Associate Professional Officer (APO) programme continued to decline as a result of budget constraints and new policies of certain donors, although a positive development was the agreement by several additional donors to support nationals from developing countries. The traditional placement of APOs with field projects continued, but APOs also made valuable contributions to the normative work of the Organization in various positions at headquarters and in Regional and Subregional Offices.

Programme 3.5.2: Civil Society Awareness and Partnerships

489. The Policy and Strategy for FAO Cooperation with NGOs and other CSOs, adopted in December 1999, provided the basis for programme implementation during 2000-01. A Web site targeted at NGOs/CSOs was established and development of a corporate database initiated. Regional NGO/CSO consultations were held in 2000 and the resulting policy dialogue fed directly into the FAO Regional Conferences. Civil society participation in FAO's technical committees included an innovative multistakeholder dialogue on sustainable agricultural and rural development (SARD) held in conjunction with the Committee on Agriculture (COAG). An International Planning Committee, set up to facilitate NGO/CSO participation in the WFS:fyl, coordinated extensive preparatory activities at national, regional and global levels. Capacity-building activities for farmers' organizations and NGOs were conducted. NGO/CSO participation in the SPFS and cooperation with NGOs in emergency programmes were strengthened. An NGO/CSO Working Group was established with representatives of technical divisions and field offices to help manage FAO's cooperation with this sector.

490. World Food Day celebrations and WFD Special Events/TeleFood activities, organized around the theme of "A millennium free from hunger" in 2000 and "Fight hunger to reduce poverty" in 2001, heightened awareness of the fight against world hunger and helped promote food for all. National WFD committees or focal points in 140 member countries and the support of governments, civil society, NGOs and various celebrities were instrumental to the success of these activities.

491. A Sponsorship Committee was created to address questions related to private sector sponsorship of FAO's activities and support for its humanitarian efforts. Cooperation with the private sector focused on identification of agriculture and food industry groups and companies offering potential for longer-term partnerships in funding various projects of interest to both the Organization and potential donors. New partnerships were developed with Adobe, which sponsored TeleFood 2001 in the United States, and Parmalat, providing support to TeleFood and the Ambassadors Programme. Trust Fund projects in support of FAO's programmes were established with Tetrapak and the Ford Foundation and new collaborative efforts between FAO and the UN Fund for International Partnerships (UNFIP) resulted in the approval of three projects in the fields of World Heritage Initiatives and Women in Development in Mexico.

Programme 3.5.3: Cooperation Agreements with Member Nations
and Support to ECDC and TCDC

492. Partnership programmes are generally undertaken through some form of cost-sharing arrangement. They include the use of Technical Cooperation among Developing Countries (TCDC) and Technical Cooperation among Countries in Transition (TCCT) experts, visiting experts from academic and research institutions, retired experts and on-the-job training of young professionals. The main objective of the partnership programmes is to enhance cooperation and partnership based on mutual benefit for FAO and the countries and national institutions involved. The number of experts and young professionals participating in the programmes is shown in Table 3.5-1.

TABLE 3.5-1. USE OF PARTNERSHIP PROGRAMMES

Description

1998-99

2000-01

TCDC/TCCT experts

835

546

Visiting experts from academic and research institutions

210

168

Retired experts

791

1,044

Young professionals

32

59

493. During the 2000-01 biennium, 1,817 assignments were undertaken as part of the partnership programmes, compared with 1,868 assignments in 1998-99. Significant growth occurred both in the use of retired experts and young professionals, while TCDC/TCCT experts and visiting experts from academic and research institutions decreased.

494. Partnership programmes are extremely cost effective in obtaining expert services, with an estimated cost per work-month of half to one-third that of an expert recruited at international rates. Expenditures within the partnership programmes increased to US$13.1 million in 2000-01 from US$10.5 million in 1998-99.

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