Joint Meeting of the 135th Session of the Programme Committee and 195th Session of the Finance Committee Opening Statement
by Dr QU Dongyu, FAO Director-General
13/03/2023
Joint Meeting of the 135th Session of the Programme Committee and
195th Session of the Finance Committee
Opening Statement
By
Dr QU Dongyu, FAO Director-General
13 March 2023
Chairpersons of the Programme and Finance Committees,
Members of the Programme and Finance Committees,
Ladies and Gentlemen,
Dear Colleagues,
1. I am pleased to be addressing the Joint Meeting of the 135th Session of the Programme Committee and 195th Session of the Finance Committee.
2. Thank you for your support and collaboration during the past biennium in your role as Members of the Programme and Finance Committee.
3. I am fully committed to continue working with you for the years to come – important years which will also bring us closer to the deadline of 2030 for achieving the Sustainable Development Goals.
4. We will continue to be guided by the FAO Strategic Framework 2022-31, which was endorsed by the FAO Ministerial Conference in 2021 as the result of our collective efforts and unprecedented level of consultations.
5. A framework that clearly reflects our joint commitment to support the transformation of global agrifood systems and achieve the 4 Betters – Better Production, Better Nutrition, a Better Environment and a Better Life, leaving no one behind.
6. The COVID-19 pandemic highlighted the need to transform our agrifood systems to ensure they are more efficient, more inclusive, more resilient and more sustainable.
7. We must ensure that they are less fragile and better equipped to ensure food availability, accessibility and affordability for all in the face of adversity.
8. In 2019, I had already highlighted the need and urgency to speed up agriculture modernization.
9. I had stated that FAO needed to enable agriculture to go digital.
10. To this end, I launched, among other projects, the International Platform for Digital Food and Agriculture, and 1000 Digital Villages Initiative, along with the Green Cities Initiative – all of which are now being implemented and have started providing the support needed, especially to smallholder and rural farmers.
11. Furthermore, FAO's award-winning Hand-in-Hand Geospatial Platform is providing food security indicators and agricultural statistics to support more targeted agriculture interventions,
12. And serves as the key enabling tool for FAO's Hand-in-Hand Initiative.
13. Through this digital expansion, FAO is now concretely changing lives and making a transformational impact on agrifood systems,
14. Including by supporting policy-making through the provision of the required evidence-based, scientific information for informed decision-making,
15. By connecting relevant stakeholders across the value chain, and providing the farmers with the digital tools they need.
16. I have undertaken to improve the capacity of smallholder farmers and to mobilize required investments.
17. To achieve this, and as part of my reform of the Organization, I initiated the transformation of the FAO Investment Center.
18. The Investment Centre is now effectively providing a full range of integrated investment and finance solutions and innovations,
19. With the aim of doubling investment programming capacity from the current USD 9 billion per year to USD 18 Billion.
20. We have also advocated strongly for placing agricultural investment at the core of the humanitarian response to the global food crisis.
Dear Colleagues,
21. The structural reforms I have implemented over the past four years have resulted in an agile Organization that ensures quick responses to challenges.
22. A number of measures were taken internally that focus on improving FAO governance, modernizing our methods of work and boosting staff morale.
23. To do this we had to change our business model, based on innovative working methods.
24. The past four years have witnessed great advances in modernizing and digitalizing the way we manage the resources allocated to FAO, and for effective and efficient delivery through projects.
25. FAO’s Technical Cooperation Programme (TCP) has been set on a new course with increased transparency, with updated criteria and methods for TCP allocation to regions and within regions.
26. I am also strengthening the Regional, Sub-Regional and Country Offices to help decentralized offices increase their services to countries,
27. And to ensure we work better together as ONE FAO, to deliver coherent and cohesive support to Members.
28. Going forward, it is now time to mobilize all capacities to support country level results, starting with Hand-in-Hand priority countries.
Dear Colleagues,
29. Changing the business model of the Organization for increased efficiency and impact depends strongly on the capacity and capability of our human resources.
30. During the past four years, I have focused on implementing best practices that support programme and administrative effectiveness, and on creating people centered HR policies.
31. Together with my Core Leadership team, we have been fully committed to gender parity, and combating all forms of harassment, sexual harassment, discrimination, sexual exploitation and abuse of authority.
32. In line with my commitment to strengthen accountability, integrity and transparency in the Organization, I have allocated additional resources to the Office of the Inspector General to enhance the ability to deal with complaints of misconduct.
33. In line with the outcomes of the Employee Satisfaction Survey, we have addressed priority areas of concern with concrete actions to improve internal communication, professional development, and implement new ways of working.
34. Infrastructure improvements at headquarters, and in the decentralized offices, have further helped to foster a conducive and positive working environment.
35. Women and Youth have always been a priority for me.
36. The FAO Youth Committee has effectively increased youth engagement, both internally by actively networking among young and young-at-heart FAO staff,
37. As well as externally at the global level by playing a key role in sparking the youth to be active participants in the transformation of our agrifood systems, by identifying innovative and forward-looking solutions to current and future challenges.
38. Four years ago I presented “my idea” - in line with the commemoration of FAO’s birthday - to create a World Food Forum – now, four years later, this vision has become a concrete, globally shared platform.
39. It has become a dynamic, open and youth-led global network of partners, led by FAO, which empowers young people everywhere to help achieve the SDGs, and a better food future for all.
40. In 2022 the Forum comprised three segments: the Global Youth Forum, the FAO Science and Innovation Forum and the FAO Hand-in-Hand Investment Forum – with the common objective of advancing actions to catalyze agrifood systems transformation.
41. The Investment Forum provided for the first time a platform for Members to present their investment opportunities to partners and stakeholders, for a total value of USD 3 billion, affecting 6 million direct beneficiaries and 9 million indirect beneficiaries.
42. Since its establishment, the FAO Women’s Committee continues to provide an important space to share, discuss and innovate on how to further empower women, and through women the whole Organization - working to advance gender equality in FAO and to contribute to a gender-equal world.
Dear Colleagues,
43. FAO’s resource mobilization efforts in 2022 produced results far beyond any previous scale in the history of the Organization – a strong expression of confidence by our Members in the work of the Organization.
44. In 2022, FAO mobilized over USD 2.1 billion in voluntary contributions, a 51 percent increase over 2021 – which was in itself a record-breaking year - and a 61 percent increase over the five-year average.
45. FAO’s emergency and resilience work grew significantly both in absolute terms from USD 608 million to USD 1.162 billion in 2022,
46. And as a percentage of the overall FAO portfolio, from 43 percent to 54 percent.
47. FAO funding from traditional OECD-DAC partners increased by almost USD 300 million.
48. FAO’s close engagement with International Financial Institutions resulted in the provision of 24 percent of all voluntary contributions, equal to USD 514 million, either directly or through triangular arrangements with FAO Member recipients.
49. Partnerships within a ONE UN framework also remained strong and provided 12 percent of all resources.
Dear Members of the Programme and Finance Committees,
50. In the Programme of Work and Budget (PWB) 2024-25 proposal before you, we are requesting resources to cover cost increases - this is so that we can maintain the same purchasing power as in 2022-23.
51. Let me be clear. We are not asking for resources for a growth budget. We are not asking for additional resources to do more of the many things that we want to do, and that you ask us to do.
52. For that, we continue to do everything we can within the resources that we have – re-prioritizing and re-allocating to the most urgent needs.
53. We have done that again in this budget. But this time, we are asking for additional resources to cover cost increases. Why?
54. Because now, after 12 years of operating at a flat nominal budget level and absorbing all increased costs biennium after biennium, we have come to a crossroads.
55. In 2024-25, the cost increase estimates are too high and our resources are stretched too thin to be able to continue as we have been. Absorbing cost increases in 2024-25 is not feasible.
56. And please, I welcome you to look very carefully at what we are requesting.
57. The majority of the requested cost increases is to cover staff costs (USD 44 million). We are part of the UN common system as regards these costs and have no flexibility. Our staff are paid what they deserve to be paid.
58. For goods and services, we are asking for a 2.7 percent increase (USD 11.8 million). I ask you to consider this percentage increase - 2.7 percent - knowing the inflationary figures around the world.
59. It is clear that this amount is only a fraction of what the full increased costs under goods and services are likely to be.
60. This is a very modest figure considering for example that just for utilities at headquarters, we are estimating an increase of USD 2 million in 2024-25, compared to pre-COVID levels.
61. The increase under goods and services we are requesting is so low because we continue to seek efficiencies and savings with everything we do, reducing costs through past, current, and future efficiencies and innovative approaches.
62. We do that continuously and will continue to do that in 2024-25. We have already built into the budget the requirement to find these additional savings.
63. I invite you to look carefully at what the Organization is achieving for its Members, and where you want us to go.
64. I hope that within that perspective, Members will understand and support the budget proposal for 2024-25, with its modest increase to allow us to continue to operate as we have been doing over the past years.
Dear Colleagues,
65. Our focus remains that of attaining zero hunger, and our aspiration is to realize the 4 Betters.
66. I have remained faithful to this belief and have turned this aspiration into concrete, tangible and measurable results.
67. But we need to continue down this path, together.
68. The 4 Betters are the foundations of our Strategic Framework 2033-31 and will guide our work over the next decade.
69. The 4 Betters encompass the interlinked economic, social and environmental dimensions of agrifood systems,
70. And cut across the 20 Priority Programme Areas (PPAs), thereby ensuring coherency in FAO’s work from country to global level.
71. To further strengthen the 4 Betters, Value-Added Impact Areas have been identified under each of the “betters”, for focused action leading to accelerated results and impact, and increased investment during the biennium.
72. Under Better Production, we have developed, among others, the One Country One Priority Product (OCOP) initiative to create productive and resilient national production systems by increasing the coordination capacity of local governments to promote better and more sustainable agricultural development.
73. Within the context of Better Production, in 2021 we have also developed a Blue Transformation Roadmap for the sustainable intensification and expansion of aquaculture, especially in food deficit regions, aiming to grow the subsector by 30 to 40 percent by the end of the decade.
74. By ensuring Better Nutrition we aim to make healthy diets affordable to all.
75. FAO is supporting Members in designing and implementing strategies to reform food and agricultural support policies that increase the availability of nutritious foods and reduce their cost.
76. My pledge to ensure a Better Environment included, among others, addressing integrated management of water resources (including scarcity and flooding) for agriculture,
77. By promoting enhanced investment, policies, governance and best practices to sustainably increase water productivity.
78. FAO also provides technical knowledge and expertise on climate change adaptation and mitigation, including support to direct and indirect access to finance and investment.
79. The new FAO Strategy on Climate Change aims to build climate-resilient and low-emission agrifood systems, while striving to achieve the SDGs.
80. My vision includes an ambitious increase in climate finance and investments estimated at a total of USD 300 million per year to support climate adaptation and mitigation action in production systems.
81. The Hand-in-Hand initiative is the foundation for a Better Life for all, leaving no one behind.
82. Almost four years down the line, the initiative has 60 participating countries, with the objective of helping the most disadvantaged Members reduce poverty, end hunger and malnutrition, and reduce inequalities within and among countries.
83. A Better Life for All places the concept of “leave no one behind” at the core of FAO’s programme of work by:
· One: strengthening policies and institutions to include the rural poor and build their resilience;
· Two: increasing empowerment of rural women and men, and youth; and
· Three: scaling national and international investments that deliver more inclusive, resilient and sustainable livelihoods.
84. In this context, FAO has a unique comparative advantage in engaging stakeholders across the Humanitarian Development Peace Nexus to ensue policies, programmes and investments prioritize inclusion and resilience.
Dear Colleagues,
85. Science and innovation are critical to finding solutions to the climate challenges we are facing today - this is why we are implementing the new thematic Strategy on Science and Innovation, in synergy with the new Strategy on Climate Change.
86. As a scientist, I firmly believe that the basis of science is the ability to adapt to change.
87. My aspiration from the start was based on the belief that new thinking will lead us on a different journey.
88. My vision of the new Digital FAO has ensured that we remained ahead of the curve over the past four years, ensuring work continuity, efficiency, transparency and continuous growth.
89. Four years ago I committed to putting FAO back on track to be recognized as a center of excellence for professional, technical specialized knowledge, expertise, information and data.
90. I am proud to confirm that this objective has been achieved.
91. A strong flow of technical knowledge products has re-positioned FAO globally, in line with its mandate, making FAO a reliable and professional partner in the global transformation agenda.
92. FAO’s international visibility and reputation has increased over the past four years, despite global challenges and travel restrictions,
93. With FAO’s expertise, knowledge products, tools and policy recommendations being in high demand at the international level, including across the UN wide system.
94. The UN Food Systems Summit follow-up Coordination Hub is operating successfully and effectively supporting national implementation.
95. And the 2023 Stocktaking Moment taking place here at FAO headquarters and the end of July will further consolidate FAO’s engagement in this process.
96. FAO continues to be involved in the G20 and G7 processes, and we are already actively engaged with the respective Presidencies for 2023 and 2024.
97. My vision for FAO cannot be achieved without partners, and without our extraordinary employees.
98. Over the past four years, FAO has effectively leveraged partner strengths to transform agrifood systems, as the enormity of current global challenges requires collective action at scale and at all levels.
99. In this regard, private sector partnerships are an important priority,
100. And we have scaled up our engagement through a multi-stakeholder participation leading to concrete country-owned and country-led innovative solutions with measurable impacts.
101. As we reach the midway point to achieve the SDGs, there is still a large financing gap to fill to achieve the targets,
102. And this gap can only be closed by increasing investments from the private sector.
103. Strengthening and boosting South-South and Triangular Cooperation was an important pledge I made in 2019.
104. Since then, I have ensured that South-South and Triangular Cooperation was strengthened and mainstreamed throughout the Organization,
105. And now, going forward, we need to increase the scale of ambition of the programme, with increased emphasis on exchanges at the policy-making level.
106. I remain committed to an effective RBA collaboration, which is critically important to respond strategically and concretely to the global challenges that are affecting the quantity and quality of food that is available, accessible and affordable for all people, especially for the most vulnerable.
107. Together with my esteemed colleagues and friends, Alvaro Lario, President of IFAD, and the incoming Executive Director of WFP, Cindy McCain, I look forward to even stronger, more effective, more efficient and more coherent collaboration,
108. Building on our individual comparative advantages, to serve those that need us the most.
109. I also wish to acknowledge the excellent relations with the outgoing Executive Director, my friend David Beasley, and I wish him every success as he opens a new chapter for humanity in his future endeavours.
110. FAO remains fully committed and engaged in One Health, and to the joint work under the One Health Quadripartite and its Joint Plan of Action,
111. To better integrate and coordinate our collective work across the human, animal, plant, agricultural and environmental sectors.
112. In addition, we are actively involved in the AMR Multistakeholder Partnership Platform, which brings together stakeholders to assist in combatting antimicrobial resistance.
Dear Colleagues,
113. Today, FAO is new, more efficient, dynamic, innovative and effective.
114. We are speeding up delivery.
115. The Organization is now globally recognized as a professional, trusted partner of all stakeholders working to eradicate poverty, hunger and malnutrition.
116. Employees and Members of FAO have become more accountable and are more trustful.
117. Our future strategic direction is innovative, transparent, inclusive and deliverable.
118. Science and innovation will continue to drive FAO’s approach to ending hunger and transitioning to global agrifood systems.
119. Food and agriculture hold the key to realizing the 2030 Agenda and the Sustainable Development Goals,
120. And agriculture is the most inclusive and cost-effective tool to end poverty and hunger.
121. I believe that FAO’s great challenge over the next years is to shape the global narrative and put in place tailored country strategies through which the Organization can bring all its professional, technical expertise,
122. To provide solutions to how these massive shocks to rural livelihoods and food security can be effectively prevented, addressed and linked to investments in longer-term agrifood systems transformation.
123. I look forward to your discussions this week and to your recommendations for the Council’s further consideration.
124. Thank you.