Contents -

VI. Activities and programmes of the organization

A. Review of the regular programme 1990-91
B. Medium-term plan 1992-97
C. Programme of work and budget 1992-93
D. Review of field programmes 1990-91
E. Strategy for fisheries management and development: Progress report
F. Implementation of the review of certain aspects of FAO's goals and operations
G. Preparations for the international conference on nutrition 1992
H. United Nations/FAO World Food Programme (WFP)
I. Relations and consultations with international organizations

A. Review of the regular programme 1990-91

149. The Conference welcomed the Review of the Regular Programme 1990-91 as an informative and well-prepared document, providing Member Nations with a useful basis for assessing the progress and achievements in the Organization's work and drawing lessons for future programme formulation and implementation. It considered that the coverage of selected Sub-programmes and special topics in Parts Two and Three was appropriate and useful, giving in-depth reviews of four Sub-programmes concerned with different facets of rational use and management of natural resources and of some 135 technical cooperation networks supported by FAO.

150. While this seventh Review retained its earlier format, the Conference noted further improvements in the document. These included: a self-contained Summary; the incorporation of objectives and priorities as well as attention to interdisciplinary actions under each programme under Part One; a greater use of evaluation findings and sharpening of issues in in-depth reviews of selected Sub-programmes in Part Two; and a result-oriented and forward-looking assessment of FAO's experience in supporting technical cooperation networks in Part Three. In particular, the Conference appreciated the more analytical and critical nature of the document, and encouraged further improvements along these lines.

151. The Conference noted the advantages of technical cooperation networks, the use of which had expanded rapidly as an important means of support under the Regular Programme in recent years in FAO. It considered the in-depth review of FAO's experience in Part Three to be useful, providing for the first time a comprehensive study of the subject. The Conference appreciated the findings and conclusions of the study, and endorsed application of the key lessons in future FAO work in this area.

152. At the same time, the Conference recommended a number of areas for further improvements in the Review. These included greater explanation of the reasons for specific programme adjustments induced by factors other than resource constraints; provision of data on programme expenditures in addition to those on budgetary allocations, especially for the Sub-programmes reviewed under Part Two; more explicit specification of targets and achievement milestones in programmes to facilitate more meaningful monitoring of their implementation; and the desirability of a shorter document without sacrificing its quality and utility.

153. Noting higher levels of activities and outputs over those in the last biennium, the Conference expressed general satisfaction with the overall programme implementation during the current biennium. In particular, it welcomed progress made in priority areas identified by the Review of Certain Aspects of FAO's Goals and Operations, such as sustainable development and environment, policy advice and planning work and the development of the World Agricultural Information Centre (WAICENT), including the establishment of internal mechanisms for integrated approach and coordination within the Organization. The Conference also commended the successful campaign for the eradication of the New World Screwworm from North Africa and work on desert locust control. Similarly, it appreciated measures to strengthen collaboration with other UN agencies and international organizations, including non-governmental organizations, especially in priority areas, as well as further intensification of internal secretariat coordination for better use of limited resources. The Conference encouraged further strengthening of such collaborative efforts, both within and outside the Organization.

154. Nevertheless, the Conference noted with concern the serious adverse effects of resource constraints over recent biennia, not only on programme implementation but also on FAO's capacity to sustain, adjust and develop its programmes. The repeated programme adjustments, necessitated by resource constraints, had resulted in the scaling-down or suspension of many planned activities as well as in the freezing of staff posts, both of which had longer-term adverse effects on the Organization and hindered its capacity to face new and complex challenges. In this context, the Conference stressed the need for all Member Nations to pay their contributions in a timely manner. Also in this connection, some Member Nations also highlighted the importance of priority-setting in making programme adjustments, including the need to maintain an appropriate balance between the Regular and Field Programme-based activities.

155. In the course of the debate, many Member Nations reiterated the importance of the Technical Cooperation Programme (TCP) and urged an increase in its share in the overall budget in accordance with Conference Resolution 9/89. However, a few other members did not share this view at a time of financial constraints affecting the Organization. A number of Member Nations also emphasized the importance of programmes on Women in Development (WID), the FAO/WHO Codex Alimentarius, the Global Information and Early Warning System, Integrated Pest Management, the International Plant Protection Convention, plant and animal genetic resources, livestock development, including animal disease control, commodity analysis, integrated coastal management for fishery development, and the Tropical Forests Action Programme (TFAP). The importance of FAO's collaboration with the General Agreement on Tariffs and Trade (GATT), cooperation with the World Health Organization (WHO) regarding the International Conference on Nutrition and active participation in the United Nations Conference on Environment and Development were particularly stressed.

B. Medium-term plan 1992-97

Director-General's introduction
Part I: Overview of background issues
Part II: Cross-sectoral actions
Part III: Programme priorities and regional dimensions
Part IV: Conclusions


156. The Conference considered the Medium-term Plan 1992-97. In so doing, it availed itself of the views of the Council and the Programme and Finance Committees which had examined the document at their recent sessions.

157. The Conference welcomed the Medium-term Plan as a major policy synthesis document responding to the terms of Resolution 10/89. The Conference recalled that the reintroduction of a formal long-term programming process which would enhance the participation of Member Nations in shaping the long-term orientations of the Organization was one of the key outcomes of the FAO Review. While a number of suggestions were made as to possible improvements in the format of the document, the Conference felt that the first version of the Medium-term Plan wee responsive to the expectation that it should facilitate a constructive dialogue among Member Nations. Its complementarily to the Programme of Work and Budget was highlighted. The Conference suggested that the FAO Regional Conferences should also have a greater involvement in the discussion of long-term priorities.

158. The Conference agreed that the document provided a comprehensive and realistic basis for assessing the context of FAO's action over the medium term. It recalled that the primary purpose of the Medium-term Plan was to serve as a tool for priority-setting during its period of coverage. The Conference considered, however, that the Plan could not constitute a rigid framework since flexibility would be needed to accommodate changing circumstances and evolving requirements for FAO's assistance. The Conference observed that the Plan could also be of some use in connection with national planning processes, as regards the food and agriculture sector. Some Member Nations felt that the identification of areas of lower priority had not been adequately addressed in the document.

Director-General's introduction

159. The Conference expressed appreciation for the Introduction by the Director-General, including the brief description of the main challenges facing FAO. In this connection, it stressed the pertinence of presenting in the first instance the challenges of poverty alleviation and sustainable agriculture, the responses to which were in many ways inextricably linked. The Conference also noted the importance attached to the role of the private sector.

Part I: Overview of background issues

160. The Conference welcomed the selective overview of background issues in Part I. In particular, it supported the close cooperation with external partners, including other intergovernmental organizations and non-governmental organizations. The Conference was satisfied to note the numerous indications of concrete cooperative links with other institutions, as were provided in other parts of the document. In this connection, the Conference confirmed the need for FAO to be responsive to developments in other fore which had a bearing on its activities while, conversely, it was important to ensure that FAO's concerns were taken into account by other bodies.

161. The Conference also appreciated the section covering FAO's field activities. It agreed that the present policy of decentralization, mainly through FAO Country Offices, should be actively pursued. The Conference stressed that a strong presence in the field was, moreover, a prerequisite for FAO to effectively face changing patterns of technical cooperation with Member Nations, including more "upstream"-type activities in the project cycle and the growing incidence of national execution. The Conference recommended that another facet of decentralization, i.e., the contribution of FAO Regional Offices in supporting inter-country cooperative efforts in food and agriculture matters, should not be overlooked. In this context, it was mentioned that such inter-country efforts could also be made by country officers when cost-effective. The Conference also stressed that it was especially important to preserve the technical backstopping capacity of the Organization. The Conference considered that this could be achieved in a variety of ways, including maintaining a judicious balance between Regular Programme and field activities, strengthening the technical staff establishment and focusing on technical cooperation activities where FAO had an undisputed comparative advantage.

162. Among other aspects covered in Part I, the Conference endorsed the proposed strengthening of important "means of action", such as information dissemination and data processing, together with the modernization of the related infrastructures of the Organization. The Conference also noted the suggestion regarding the possibility of introducing the concept of capital budgeting into FAO budgetary practices. It observed that such a concept could be introduced only if it were compatible with budget regulations in Member Nations, and that it could return to the issue at some future date.

Part II: Cross-sectoral actions

163. The Conference endorsed the selection of the five major cross-sectoral priorities covered in Part II: sustainable development and environment; policy advice; women-in-development; human resources development; and economic and technical cooperation among developing countries. It supported the proposed medium-term orientations and priority actions in relation to each of them. The Conference underlined that these were evidence of and would contribute to the necessary shift within the Secretariat towards more multidisciplinary approaches. The attention devoted to human resources development and women-in-development would also contribute to consideration of the social aspects of development in a more holistic manner.

164. In connection with sustainable development and environment, the Conference underlined the importance of FAO's active participation in the preparation for and eventual follow-up to the United Nations Conference on Environment and Development to be held in June 1992. It considered that FAO's role was, in particular, to promote the Sustainable Agriculture and Rural Development concepts developed by the FAO/Netherlands Conference on Agriculture and the Environment and ensure that they receive adequate attention throughout the UNCED process. The Conference welcomed the proposed gradual elaboration of an International Cooperative Programme Framework for SARD, which would include a number of existing Special Action Programmes (SAPs) and new ones, suitably streamlined.

165. With regard to policy advice, the Conference confirmed its expectation of FAO's enhanced assistance to Member Nations, including policy issues relating to Structural Adjustment Programmes and the negotiations linked to the Uruguay Round under GATT, and as related to key policy concerns such as food security.

Part III: Programme priorities and regional dimensions

166. The Conference gave its broad endorsement to the description of the problems addressed by FAO and the proposed priorities under the three Major Programmes of Agriculture, Fisheries and Forestry, while recognizing that these would be progressively refined in successive Programmes of Work and Budget.

167. In respect of Major Programme 2.1, Agriculture, the Conference concurred with the advice of the Programme Committee in recommending particular attention to agro-industrial development given the strong requirements for assistance and future growth prospects of the agro-industrial sector in the developing countries. The Conference also highlighted FAO's activities in support of trade facilitation, including the proposed establishment of a Secretariat to the International Plant Protection Convention (IPPC) and the enhanced use of Codex standards. The effective contribution of FAO in assisting Member Nations to cope with natural disasters and their negative impact on food and agriculture wee also underlined. The Conference stressed the importance of the farming systems approach and of participation by farming communities in the formulation and implementation of programmes of relevance to them.

168. The Conference also supported the proposed increased focus on high seas fisheries under Major Programme 2.2, Fisheries. With regard to Major Programme 2.3, Forestry, the Conference urged that the lead role of FAO be substantiated through increased allocations of resources in future budgetary periods.

169. Members of the European Region underlined the dramatically altered framework for FAO's activities in the region, which called for adequate attention to the new requirements for assistance of the economies in transition in Central and Eastern Europe.

Part IV: Conclusions

a) Major policy orientations
b) Resource considerations
c) Future versions of the plan

a) Major policy orientations:

170. The Conference gave its full support to the policy orientations, relating to the Role of FAO and its Comparative Advantages, Guiding Principles, Substantive Thrusts and Strengthened Capacity, as suggested in this section, which would assist the Governing Bodies in guiding FAO's action over the medium term.

b) Resource considerations:

171. The Conference recalled that Resolution 10/89 had directed that the Medium-term Plan should, if possible, include provisional indications of resources by programme. It appreciated the approach of the Director-General in addressing this issue in the concluding section of the document.

172. Several Member Nations stressed the importance of an assured resource base to permit the effective implementation of the programme priorities embodied in the Medium-term Plan. They observed that the proposals for the first biennium of the six-year period of the Plan's coverage did not incorporate any net programme growth. In their view, this represented an inauspicious start. Several other Member Nations underlined that national budget regulations almost invariably precluded the possibility of Member Nations accepting any type of long-term commitment of a financial nature. They, therefore, considered that it was of little use to make any resource projections in the context of the Medium-term Plan. The Conference agreed that these purely indicative projections could not have a binding character on the membership.

c) Future versions of the plan:

173. The Conference considered the two options proposed by the Director-General. It also noted their respective advantages and disadvantages. The majority of members who addressed the issue expressed their preference for the first option, i.e., the submission of supplements to the present version to the 1993 and 1995 sessions of the Conference, with a fully revamped version covering the successive six-year period to be submitted to the Governing Bodies in 1997. They underlined the lower cost advantage of this option and the fact that long-term perspectives could not change much over a two-year period. Other Member Nations preferred the other option, i.e., the submission of a revised version of the Medium-term Plan to the Conference each biennium, with a "sliding" six-year coverage. This would, in their view, more fully take into account developments in any two-year intervening period.

174. Notwithstanding the preferences indicated above, the Conference recognized that both options provided for a discussion at each session of the Conference, according to the concept of a rolling plan endorsed by the Conference in 1989. The Conference stressed, therefore, that the important principle of a regular examination of the medium-term perspectives for FAO's work would, in any event, be preserved. It requested the Director-General to arrange for the submission of the next Medium-term Plan, covering the period 1994-99, to the Twenty-seventh Session of the Conference, through the Programme and Finance Committees and the Council, taking into account the views of the Regional Conferences and the technical committees of the Council. It agreed that the next version should be a more concise but still self-contained document concentrating on policy issues and reflecting major developments, and should be linked to the biennial Programme of Work and Budget without entering into the same level of detail.

175. In conclusion, the Conference considered the Medium-term Plan a key outcome of the FAO Review. It stressed that the importance of the Plan was not only in the policy document, but because it permitted a medium-term planning process with the critical involvement of FAO's Governing Bodies at all stages.

C. Programme of work and budget 1992-93

Proposed system of indicative country allocations under the TCP
Financial framework
Budget level
Search for consensus
Programme of work and budget and budget appropriations for 1992-93
Programme-budget process


176. The Conference welcomed the improved format of the Programme of Work and Budget document and appreciated its complementarily with the Medium-term Plan.


177. The Conference underlined the dramatic changes which had taken place in the world since its last session. It noted with satisfaction that several positive developments had greatly enhanced the perceived contribution of the UN system in multilateral relations. These had also led to new challenges and more diversified requirements for assistance to Member Nations to which therefore the multilateral system wee required to respond as efficiently as possible. Given FAO's key role within the UN family of organizations, the Conference felt that these changes, coupled with the needs of the many countries undergoing reform of their food and agricultural sectors, had a considerable bearing on FAO's present and future activities.

178. Despite these positive developments, the Conference recalled that the preparation of the Programme of Work and Budget for the 1992-93 biennium had taken place in a period of exceptional financial difficulties for the Organization. It agreed on the paramount need to restore FAO's financial viability, and called for the prompt payment of contributions and the expeditious settlement of arrears. Only on that basis could FAO recover its full capacity to address the demands made upon it and face up to future challenges.

179. The Conference recognized that the Director-General's proposals for the 1992-93 budgetary exercise had been the object of intensive review by a large number of bodies. In accordance with their respective terms of reference, these bodies had reviewed the proposals first in their Outline and Summary form and, subsequently, in their comprehensive form in the full Programme of Work and Budget. The Conference noted that the proposals had been progressively refined throughout this process and that broad consensus had consistently prevailed on the substance and programme priorities included in the Programme of Work and Budget.


180. The Conference noted the main features of the Director-General's proposals, in particular the approach of no real programme growth. It recognized that this approach was an initiative taken by the Director-General, during the Joint Meeting of the Programme and Finance Committees in January 1991, in order to permit a consensus. The Committees had, therefore, been able to recommend, by consensus, that the Director-General proceed with the formulation of his proposals, maintaining the current level of the budget in real terms, respecting the programme priorities endorsed by the Committees and containing cost increases to the maximum extent possible, while providing for the requirements for the implementation of the Programme of Work approved by the Conference.

181. The Conference recognized that the absence of a real programme increase had entailed the need to balance the global priorities and programme areas targeted for increased resources in the 1992-93 biennium, by applying significant cuts to a number of technical and economic programme activities, and to the Regional Offices. In this connection, many Member Nations expressed regret with the resource reductions in specific programme areas which, in their view, should have been preserved.


182. The Conference endorsed the global priorities and areas specifically targeted for increased resources: environment and sustainable development; biological diversity including plant genetic resources; agricultural data development; women-in-development; policy advice; the International Conference on Nutrition; forestry; strengthening of the FAO country representations and cooperation with other international organizations and NGOs.

183. With regard to the Technical Cooperation Programme (TCP), the great majority of Member Nations welcomed the net programme increase of US$4 million. However, they deplored the fact that the share of the TCP appropriation in the proposed overall budget would remain at the current level of 11.9 percent. They expressed their deep regret that the terms of Conference Resolution 9/89, inviting the Director-General to make every effort in order to restore the resources available to the TCP to the former level of 14 percent of the total Regular Programme budget and, if possible, to raise it to 17 percent, had not been fulfilled. They, therefore, underlined their expectation that effective implementation of the above Resolution take place in future financial periods. Some Member Nations did not concur with the programme increase proposed for the TCP, especially since, in their view, it had resulted in reductions in equally valuable substantive areas.

184. During the discussion, diverse views were expressed on the above priorities, as well as on specific activities to which individual Member Nations attached importance. Among these were land use planning and natural resources conservation, animal genetic resources, pest control, trade facilitation through the International Plant Protection Convention and the work of Codex, the strengthening of research and extension systems, fisheries management and stock assessment, forest protection, e.g., in the Mediterranean area. Member Nations of the Asia and Pacific Region reiterated their request for a policy study covering their region.

Proposed system of indicative country allocations under the TCP

185. The Conference addressed the Director-General's proposal, as outlined in the Programme of Work and Budget, for a system of indicative country allocations under the TCP, based on the UNDP system of Indicative Planning Figures (IPFs), after setting aside amounts for contingencies and emergency and regional projects. The Conference noted that the spirit behind this proposal was to seek enhanced transparency. A few Member Nations recalled in this connection their continued expectation of further measures to achieve improved understanding and transparency of TCP operations.

186. The great majority of Member Nations underlined the importance attached to the qualities of flexibility and responsiveness which distinguished the TCP since its inception. They felt that the proposal would result in negative effects, including potential divisiveness among the recipients of TCP assistance. Accordingly, they reconfirmed their satisfaction with the management of the TCP, and rejected a change in the present procedures governing TCP operations.

187. The Conference, therefore, reiterated its confidence in the Director-General's management of the TCP and decided not to implement the proposed system, while keeping in mind the continuing objective of facilitating full understanding, transparency and effectiveness of TCP operations for the benefit of all Member Nations.

Financial framework

188. The Conference addressed the main financial aspects of the Programme of Work and Budget 1992-93.

189. The Conference noted that the provision for cost increases had been developed according to established methodology. It also noted that this estimate incorporated the deliberate absorption of several cost items for which provision had not, therefore, been made. Further, the Conference appreciated that the updating of the coat increase estimates since the stage of the Summary, had made possible a reduction of the total provision by over US$4 million. The Conference noted that the absolute amount of the provision for coat increases would be revised, as in the past, in the light of its decision on the budget US dollar/lira exchange rate.

190. Some Member Nations considered that in the interest of reducing the increase in assessments on Member Nations, further reductions in the coat increase estimate were necessary. On the other hand, the majority of Member Nations stressed the need for adequate protection of the approved programme. They underlined that further absorption of coat increases would entail the curtailment of the programme, and result in negative growth.

191. In connection with the lapse factor, the Conference recalled that it had decided at its last session to establish its rate at three percent, and this had been the rate used in the preparation of the 1992-93 budgetary estimates. The majority of the Member Nations stressed that it was essential to maintain the lapse factor at its present level, bearing in mind the objective of effective implementation of the approved programme. Some Member Nations considered that the continuation of the three percent rate wee not justified in view of the resource implications, and urged that a higher rate be used in the Programme of Work and Budget, reflecting more closely effective vacancy rates.

Budget level

192. In the light of the above, diverse views were expressed on the proposed budget level.

193. Some Member Nations, while pleased to note that the budget was based on zero real growth, considered that the total level was still too high in view of the resulting impact on assessed contributions, particularly at a time of growing difficulties experienced by many Member Nations in meeting their financial obligations to the Organization. Some other Member Nations, while firmly attached to the importance of preserving the technical activities of FAO and convinced of the merits of the proposals, expressed concern about the eventual increase in contributions, recalling their countries difficulties in meeting external commitments due to economic problems and the burden of debt. Yet other Member Nations, while supporting the need for budgetary restraint in international organizations, considered that the proposed level reflected such restraint and could, therefore, support it.

194. The majority of Member Nations recalled their rejection in principle of the concepts of zero growth and enforced absorption of coat increases. They considered that adequate resources should be put at the disposal of FAO at a time of growing demands on and new challenges to the Organization. However, they were prepared to support the proposed budget level involving no programme increase, in a spirit of compromise and for the sake of consensus.

Search for consensus

195. The Conference agreed that the Director-General's proposals reflected a balanced compromise, with the intent of facilitating consensus approval. It commended the Director-General 'a efforts in seeking to meet the often diverging expectations and requests from the membership. It recalled the consistent desire of Member Nations throughout the budget formulation process to achieve eventual unanimous approval of the Programme of Work and Budget. Nevertheless, the Conference observed that there were still divergences among Member Nations with regard to the overall budget level.

196. The Conference underlined the significance of renewed consensus on the budget. This would, in particular, provide an unequivocal signal of the collective will of Member Nations to put the Organization back on a normal financial course and of their firm commitment to its goals.

197. Accordingly, the Conference was satisfied that intensive consultations had taken place with a view to resolving remaining divergences. A revised text of a Resolution on the Programme of Work and Budget and Budget Appropriations for 1992-93 resulted from these consultations.

198. The Conference stressed its understanding that approval by consensus of this Resolution was based on a specific commitment from the United States of America regarding the amounts and timing of its payments relating to current assessments and arrears. The Conference also stressed that the present solution resulting in a negative budget growth of four percent should be considered as an exceptional one, not setting a precedent for future Programmes of Work and Budget and that Member Nations reserved the right to consider on their merit future Programme of Work and Budget proposals as may be submitted by the Director-General in accordance with Article XVIII, pare of the FAO Constitution.

Programme of work and budget and budget appropriations for 1992-93

199. Taking the above views into account, the Conference adopted the following Resolution:

Resolution 4/91



Having considered the Director-General's Programme of Work and Budget and the conclusions of its Commissions:

1. Approves the Programme of Work proposed by the Director-General for 1992-93, as follows:



Chapter I - General Policy and Direction 51 416 000
Chapter II - Technical and Economic Programmes 328 439 000
Chapter III - Development Support Programmes 104 873 000
Chapter IV - Technical Cooperation Programme 77 409 000
Chapter V - Support Services 97 396 000
Chapter VI - Common Services 16 778 000
Chapter VII - Contingencies 600 000
Total Programme of Work 676 911 000

2. Decides on the following appropriations for the financial period 1992-93:

Net Base Budgetary Appropriation 645 588 000
Transfer to Tax Equalization Fund 99 080 000
Total Appropriations (Gross) 744 668 000


(a) The appropriations (gross) voted in paragraph 2 above, shall be financed by assessments on Member Nations, after deduction of Miscellaneous Income in the amount of US$ 12 028 000, thus resulting in assessments against Member Nations of US$ 732 640 000.

(b) In establishing the actual amounts of contributions to be paid by individual Member Nations, the assessment of each Member Nation shall be reduced by any amount standing to its credit in the Tax Equalization Fund provided that the credit of a Member Nation that levies taxes on the salaries, emoluments and indemnities received from FAO by staff members shall be reduced by the estimated amounts of such taxes to be reimbursed to the staff member by FAO.

(c) The contributions due from Member Nations in 1992 and 1993 shall be paid in accordance with the scale adopted by the Conference at its Twenty-sixth Session, which contributions, after the deduction of amounts standing to the credit of Member Nations in the Tax Equalization Fund, result in net amounts payable totalling US$ 634 660 000 as set out in Appendix F to this Report.

4. Requests the Director-General to submit a report to the Council, at its Hundred and second Session, through the Programme and Finance Committees on progress in the implementation of the approved Programme Budget.

(Adopted 20 November 1991)

Programme-budget process

a) Outline procedure
b) Other aspects

200. The Conference noted that the Programme and Finance Committees, and subsequently the Council, had examined FAO's programme-budget process. It welcomed the views of these bodies.

201. The Conference recognized that these discussions had focused on:

- the establishment of the Outline Programme of Work and Budget as a permanent feature; and

- suggestions from the Director-General with a view to streamlining the entire programme-budget process.

a) Outline procedure:

202. The Conference recalled that Member Nations had expressed views on earlier occasions regarding the merits of the Outline procedure. One current of opinion reflected a positive appreciation of its usefulness in facilitating early dialogue on the substance of proposals and the key parameters of the next biennial budget, and the need to establish the procedure on a continuing basis. Another current of opinion reflected the expectation that this procedure, introduced on an experimental basis during the 1990-91 budgetary exercise and repeated during the 1992-93 exercise, should lead to lasting improvements in the financial situation of the Organization and consensus approval of the budget. Accordingly, a key test of the usefulness of the Outline and the need to establish it as a permanent feature lay in its track record in effectively leading to consensus approval of the budget, including the present proposed Programme of Work and Budget. A few other Member Nations expressed reservations of principle on the introduction of the Outline step.

203. The Conference noted the unanimous recommendation from the Programme and Finance Committees that the Outline step become an established feature of FAO's programme-budget process.

204. The Conference considered the draft Resolution dealing with amendments to the Basic Texts submitted by the Director-General. This Resolution had been examined by the Committee on Constitutional and Legal Matters (CCLM) at its autumn session and found acceptable from the legal point of view.

205. The Conference adopted the following Resolution:

Resolution 5/91



Recalling that a new step of an Outline Programme of Work and Budget had been introduced in the programme-budget process, on an experimental basis, by the Council, at its Ninety-fourth Session in November 1988 for the preparation of the Programme of Work and Budget for the 1990-91 biennium,

Recalling its decision at its Twenty-fifth Session in November 1989 to continue the programme-budget process implemented on an experimental basis for the preparation of the Programme of Work and Budget 1990-91 for at least another biennium,

Noting with satisfaction that the Outline Programme of Work and Budget has proved useful in facilitating early dialogue on budgetary proposals and in paving the way for consensus on the Programme of Work and Budget at its present session,

Noting the recommendation of the Council at its Hundredth Session in November 1991, based on the joint recommendation of the Programme and Finance Committees at their Joint Session in September 1991, that the Outline step be continued and that it be incorporated in the Basic Texts of the Organization so as to make it a permanent feature of FAO's programme-budget process:

Adopts the following amendments to the General Rules of the Organization (GRO) and the Financial Regulations (FR):

1. The word "outline" is inserted before the words "summary and draft Programme of Work and Budget" in the following provisions of the General Rules of the Organization:

(i) Rule XXVI, paragraph 7(a) (ii) GRO;

(ii) Rule XXVIII, paragraph 3 GRO.

2. Rule XXVIII (GRO) is amended by inserting a new paragraph 1 to read as follows and renumbering the following paragraphs accordingly:

"1. Early in the second year of the biennium. the Programme Committee and the Finance Committee shall hold a joint meeting to consider the Outline Programme of Work and Budget submitted by the Director-General for the following biennium, and to make recommendations for the Director-General's consideration on the level of the budget and the main activities of the programme."

3. Rule XXXVII, paragraph 2(g) (GRO) is amended to read as follows:

"2. In particular, the Director-General shall,...

(e) ...
(f) ...
(g) prepare,

(i) in the light of guidance given by the Conference and Council at their previous sessions and by regional and technical conferences, commissions or committees, an Outline Programme of Work and Budget for consideration by the Programme and Finance Committees. and a summary Programme of Work and Budget for consideration by the Programme and Finance Committees, other appropriate organs of the Organization, and the Council, and ..."

4. Financial Regulation 3.5 is amended to read as follow":

"The Director-General shall arrange for the outline budget to be considered by the Programme and Finance Committees early in the Conference year and for the summary budget to be considered by the Council not less than 90 days before the date fixed for the opening of the regular session of the Conference.

(Adopted 20 November 1991)

Contents -