13. The Council reviewed the global and regional situations on the basis of the Director-General's Report, The State Of Food and Agriculture and its supplement, his opening statement, as well as the report on Policy Changes Affecting European Agriculture.
14. The Council noted with concern some discouraging features of the global economic environment surrounding agriculture and the rural sector, which recent events had made yet more uncertain. While the positive long-term process of increasing interdependence and integration of nations had continued, the recent speed of change involving radical political and economic transformations had ushered in a period of potential instability in economic relations between countries. Furthermore, recent events in the Near East Region had exacerbated the deterioration in the prospects for oil-importing countries and, particularly amongst these, those countries dependent on remittance transfers. Some of these developments undermined major efforts under way in many countries to undertake policy reforms in agriculture and other sectors, often as part of structural adjustment programmes.
15.The Council expressed concern that the burden of external debt still continued to severely constrain development prospects for many countries. It welcomed initiatives aimed at reducing or managing debt for low-income countries, and the rescheduling of debt benefiting lower- to middle-income debtor countries.
16.The Council stressed the need for the Uruguay Round of Multilateral Trade Negotiations to be brought to a successful conclusion, and that they would embrace a full package of measures to liberalize world markets and to achieve a more open and balanced international trading system, in line with the objectives of the Punta del Este Declaration and the Mid-term Review Agreement. It was recalled that these objectives included the achievement of substantial and progressive reductions in agricultural support and protection, sustained over an agreed period of time; these would result in correcting and preventing restrictions and distortions in world agricultural markets. The objectives would also include the fullest liberalization of trade in tropical products, including in their processed and semi-processed forms. The Council, therefore, expressed its deep concern that, with the Uruguay Round scheduled to be completed within only a few weeks, progress towards agreement in a number of areas covered by the Roud had been very limited, especially as regarded agriculture. It urged all participants to demonstrate the necessary political will at the highest level so as to ensure the successful conclusion of the Uruguay Round in the interests of a healthy and growing world economy and called upon the Independent Chairman to convey the sentiments of the Council in this respect to GATT.
17. Many members drew attention to the very high levels of support and protection provided to agriculture in major industrialized countries, such as domestic support, border protection and export subsidies, and to the adverse effects of such protection on their access to world commodity markets and on the development of their agricultural sectors. They appealed to these industrialized countries to demonstrate the necessary flexibility in the negotiations on agriculture in the weeks ahead in order to achieve an outcome for the Round which would be fully consistent with the agreed objectives. In particular, they expressed disappointment that the negotiating offers of certain industrialized countries on agricultural policy reform had been submitted with considerable delays andor contained elements which they considered as inadequate and unacceptable in terms of the nature and scope of the cuts in protection and support envisaged, and which included proposals to raise the level of protection on some commodities. A number of developing country members stressed their own dependence on exports of agricultural and tropical products for their foreign exchange earnings, which were needed more than ever to service their external debt and augment their import financing capacity. The need was also stressed for special and differential treatment for developing countries in the negotiations, and for account to be taken of the possible adverse effects of the process of agricultural reform on the costs of food imports for net food-importing developing countries.
18. Some members, noting the low degree of food self-sufficiency of their countries, called for special provisions in the agreement on agriculture in the Uruguay Round to meet non-trade concerns, particularly those regarding their food security. Some other members pointed out the difficulties which had prevented submissions of timely offers on agriculture and drew the Council's attention to the possible consequences of a too hasty liberalization of agricultural trade on the food security of the most vulnerable countries, but stressed their commitment to work for a successful end to the Round.
19. The Council welcomed the increase in world agricultural production of 2.4 percent in 1990 which, while less than the large recovery of the previous year, was significantly above the depressed growth rates of 1986-88. Such an increase, being based particularly on a record harvest of cereals, would enable cereal stocks to be rebuilt from their low levels of the immediate prior years. Nevertheless, it cautioned that the current food security situation remained fragile, with several countries facing food supply emergencies. In this connection, an appeal was made to avoid a situation as in 1984/85, by early recognition of the serious situation by both donors and recipient countries so that action could be taken as early as possible. Some members pointed out that production shortfalls in one or more major cereal production areas could lead to a sharp escalation in international market prices, rendering the situation yet more difficult for the already hard pressed oil-importing, food-deficit countries. The world food security situation, therefore, required continued vigilance. The food-importing industrialized countries also had an interest in maintaining open and stable world markets for major food commodities.
20. The Council deplored the prevailing widespread incidence of chronic hunger and undernutrition which affected an estimated 20 percent of the population of developing countries. The complexity of the links between agricultural production, food supplies and human health, and the intractability of the poverty-hunger problem, underlined the importance of holding the International Conference on Nutrition in 1992 which was being jointly sponsored by FAO and the World Health Organization (WHO).
21. The Council agreed that, as a general rule, Increased domestic food production was a critical element in improving the food security situation of low-income food-deficit countries, including the vital issue of facilitatingthe individual household's access to food supplies. Means of promoting domestic food production were specific to the particular situations of individual countries, but they generally centred on such key areas as liberalization of trade, agrarian reform, producer incentives, input supply and marketing institutions. Above all, government policy had to be focused on the farming community and, in some countries, success had been achieved in focusing policies and incentives on selected basic foods.
22. Some members stressed the links between high rates of population growth, inadequate economic growth, the incidence of poverty and environmental degradation. The Council welcomed the emphasis placed on environmental concerns in several developing countries. It noted that, while the more intensive use of yield-raising inputs such as fertilizers and pesticides could raise food production to meet the rising demand for food from expanding populations, the over-use of such inputs could lead to serious environmental problems, a lesson which was also being learnt by some industrialized countries with highly intensive agriculture.
23. Forestry played a key role in environmental protection and in providing sustainable livelihoods for rural people. While noting that a detailed discussion would be taking place on forestry issues later when the Committee on Forestry (COFO) Report came up before the Council, some members expressed concern at the current rapid rate of loss of tropical forests which arose in part from the need by land-deprived people to gain access to this resource for their survival, but also from a lack of awareness on the part of policy makers of the value of traditional forest products. It was furthermore underlined that loss of forest resources was not limited to tropical ecosystems and attention was drawn to the significant losses sustained through forest fires, particularly in southern Europe.
24. The Council welcomed the increase in the global fish catch in which the developing countries had participated and which had been accompanied by a continued rapid growth in fishery trade. It was pointed out, however, that the bulk of the gain in the global catch was in areas subject to considerable stock fluctuations and therefore could possibly not be sustainable. Some members expressed concern about measures taken allegedly on ecological grounds, but not scientifically proven, and affecting fisheries trade, particularly of developing countries in the exercise of sovereignty in their Exclusive Economic Zones (EEZ). It was noted with concern that per caput fish consumption in some developing countries was declining at a time when their exports to developed country markets were expanding. Attention was drawn to the possible conflict between economic, ecological and social policies and objectives in the fisheries sector which merited study by FAO's Fisheries Department.
25. The Council emphasized FAO's roles in promoting food and agricultural production and rural development, as the source for agricultural information and documentation, as a forum for discussions on global issues and problems and negotiations of instruments for their resolution, and in the operational areas of technical and policy assistance and advice. The Council noted with concern the current financial difficulties faced by FAO and urged all member countries to comply with their financial obligations and to make full and timely payment of their contributions to enable FAO to carry out these roles more effectively.
26. Recognizing the increasing need for disaggregated statistics for analytical purposes and underlining the regional disparities in food and agricultural situations and overall development prospects, in the East and West, as well as the North and South, the Council welcomed the new and sharper focus on the regional reviews contained in the documents. In Africa and Latin America in particular, food production was expected to fall below population growth in 1990, a disquieting feature in view of the disappointing agricultural performances in these two regions in previous years and the grave economic problems they faced which demanded far-reaching structural adjustment efforts. However, food production was expected to exceed population growth in a number of populous countries of Asia, a success which had been matched in some countries of the region by relatively rapid rates of economic growth, industrialization and trade. In the Near East Region, a significant recovery was expected in 1990 in food and agricultural production which would largely offset the large shortfall of the previous year. However, rates of economic growth overall were now put in question by ongoing events in the region.
27. The Council welcomed the review and assessment of policy changes in the food and agricultural sector adopted or under formulation in the countries of Eastern Europe and the USSR. Several member countries of the region made additional statements on their policy reforms which were leading to a radically greater market orientation of their economies. The Council also welcomed the role played by FAO in monitoring and assessing policy developments in the region and the efforts under way to establish closer cooperation with the countries concerned. Such cooperative efforts were to assist the process of policy reform and structural transformation, as appropriate, and subject to limits imposed by resource availability. Some members considered that FAO's activities in the above areas should be strengthened and could include, where appropriate, cooperation with donor countries. The Council, therefore, welcomed the collaborative efforts between the United Nations Economic Commission for Europe (ECE) and FAO and expressed the hope that such collaboration should be further developed and strengthened. It furthermore suggested that the document before it on this issue, namely Policy Changes Affecting European Agriculture, be discussed at forthcoming sessions of FAO European Commission for Agriculture and the UN/ECE Committee on Agricultural Problems.
28. While recognizing the need for continued financial and technical support being provided in the ongoing process of agricultural policy reform in Eastern Europe and the USSR the Council urged that such support should not be at the expense of assistance provided to developing countries.
29. The Council deplored the fact that the level of international development assistance remained below that of subsidies to agricultural trade. It underlined the importance of expanding the flows of development assistance to needy countries, and particularly to their food and agriculture sectors. The Council welcomed efforts on the part of several donor countries to raise the level of their development assistance to or even exceed the target of 0.7 percent of their gross national product (GNP) and reiterated its appeal to all industrialized countries to endeavour to reach that objective. It further stressed the need for better coordination between donors and recipients and for convergent, rather than divergent, efforts between development partners. The Council also welcomed the recommendations of the Second United Nations Conference on the Least Developed Countries (LDCs) held in September 1990 in Paris.
30. The Council endorsed the report of the Fifteenth Session of the Committee on World Food Security (CFS) in its entirety which it noted had beer thoroughly debated and adopted by the Committee en bloc.
31. The Council expressed concern that, despite some improvement in the global food security situation since the Committee's last session, the situation had deteriorated in a number of countries. The poor harvest outlook in some countries, adverse macro-economic conditions, and growing numbers of refugees gave cause for serious concern. The Council appreciated the aggregate increase of food aid which was realized in 1989/90 but expressed concern that shipments to low-income food-deficit countries had not increased proportionately. The Council stressed the continued importance of food aid, including triangular transactions and local purchases. While food aid should be used with care so as to avoid its potential disincentive effects, it would still be necessary to complement structural adjustment programmes and to respond to emergencies.
32. The Council stressed the importance of a favourable macro-economic environment for food security, and underlined the importance of a successful conclusion to the Uruguay Round of Multilateral Trade Negotiations of the General Agreement on Tariffs and Trade (GATT) which would contribute to improving world food security. The importance of action to reduce external debt and inflation was also emphasized. While recognizing that global stocks and their geographical distribution played an essential role in world food security, many members supported the inclusion of other indicators reflecting economic access to food and nutritional status in future assessments. Some members called for a reexamination of the validity of using a global stock figure as an indicator of world food security and the 17-18 percent threshold level currently used by the FAO Secretariat as its minimum for world food security. A suggestion was also made for the Secretariat to undertake a study of the impact of the adverse effects of the international economic environment on food security.
33. The Council welcomed and endorsed the Committee's recommendations to enhance the economic and social status of women and called on governments to accelerate efforts to implement the Nairobi Forward Looking Strategies, the World Conference on Agrarian Reform and Rural Development (WCARRD) Programme of Action, and FAO's Plan of Action for the Integration of Women in Development. Several members reported on actions being taken by their governments in this regard. The need to collect more gender-disaggregated data and to design appropriate technologies for increasing women's productivity was stressed. It was also pointed out that the role of women in all spheres of economic life, not just the rural sector, needed to be considered.
34. The Council appreciated the review by the Committee of Ghana's experiences with implementation of structural adjustment measures and expressed its gratitude to the Government of Ghana for its cooperation in developing a case study. While recognizing the benefits which Ghana had obtained at the macro level from structural adjustment, the Council cautioned that these had only been possible because of substantial external support, particularly financial support. The Council reiterated that FAO had an important role to play in the adjustment process, inter alia, in the design of programmes which would include measures to minimize short-term adverse effects on food security and which would ensure the active participation of the economically disadvantaged groups in the development process. It agreed that there was a need for greater collaboration between the World Bank, the International Monetary Fund (IMF), and FAO in order to safeguard food security concerns within the context of structural adjustment. The Council urged the Committee to continue its consideration of country case studies at future sessions.
35. The Council reaffirmed its support to FAO's Food Security Assistance Scheme (FSAS). It commended FAO for the steps taken to implement the expanded mandate of the FSAS, and endorsed the pragmatic approach which had been adopted. It stressed the importance of regular consultations with FSAS donors, whose strong support was essential for the success of the new approach. The Council noted the distinction between food self-sufficiency and food security, which encompassed problems of access as well as supply. It emphasized the importance of integrating regional trade possibilities into national food security policies, and welcomed the efforts to associate subregional and regional associations with FAO in the development of comprehensive national food security programmes. The Council endorsed the request of a number of members for a greater FSAS presence in the Latin American and Caribbean Region. It also endorsed the requests of the Association of Southeast Asian Nations (ASEAN) to the FAO Secretariat for a study on food security reserves in that region, the result of which might serve as an example for other subregions. In this connection, the Council noted that discussions on such a study were under way between the FAO and ASEAN secretariats and that FAO would be able to provide the necessary technical assistance as soon as an agreement was reached on the terms of reference and mode of financing this study.
36. Some members suggested that in order to provide more time for the preparation of analytical reports and avoid duplication of the work of other bodies, consideration should be given to convening the CFS biennially. Some other members considered that the precariousness and volatility of the food security situation in many member countries, as well as its substantial future work programme, required that the CFS continue its annual reviews. The Council was informed that this issue had been debated at length by the Committee in the past. Following the Committee's rules and procedures, the Director-General was currently consulting with the Chairman of the CFS regarding the scheduling of dates for the next session.
37. The Council considered the "Long-Term Strategy for the Food and Agriculture Sector", which had been prepared in response to the recommendiation of the FAO Conference at its Twenty-fifth Session in November 1989, following its consideration of a summary document of the same title.4 It noted that both these documents had been prepared to serve as a basis for FAOs contributions to the preparation of the International Development Strategy (IDS) for the Fourth UN Development Decade, as well as of the Eighteenth Special Session of the General Assembly which adopted on 1 May 1990 a Declaration on International Economic Cooperation, concerning in particular the revitalization of economic growth and development of the developing countries.
38. The Council noted that FAO contributions had been made to the two contributions involved provision of background documentation to the Committees' secretariats, statements at the Committees' sessions, and the formal submission of the summary "Long-Term Strategy for the Food and Agriculture Sector4 considered by the FAO Conference at its Twenty-fifth Session together with the relevant extract of the FAO Conference report5to all members of the Committees.
39. The Council was informed that the General Assembly's Ad Hoc Committiee of the Whole for the preparation of the IDS had completed its work in early October 1990 and had recommended to the General Assembly the adoption of a proposed IDS text. It was considered that this text gave sufficient prominence to issues, priorities and recommended policies in the food and agriculture sector broadly in line with those of the FAO strategy. The proposed IDS text devoted a special chapter to agriculture under the general heading of policies and measures for the reactivation of development, while other chapters, particularly those on international trade, commodities, and the eradication of poverty and hunger also dealt with policies specific to the food and agriculture sector.
40. The Council noted with satisfaction that the Long-Term Strategy for the Food and Agriculture Sector had been prepared in accordance with the recommendations of the Conference at its Twenty-fifth Session. It considered that the Strategy provided an appropriate background for the preparation of FAO's Medium-Term Plan which would be considered by the Governing Bodies next year.
41. The Council expressed general agreement with, and broadly endorsed the objectives and policy recommendations of the Strategy. It considered that the order of priority among the four general sets of objectives of the Strategy (economic growth with equity, poverty alleviation and food security, development of human resources and institutions and sustainable development and the environment), as well as the mix of policies, could vary among countries, depending on the specific national circumstances. Some members, when commenting on the detailed recommendations contained in the Strategy, expressed some reservations for some of them.
42. The Council agreed that the objectives of the Strategy were of relevance to both developed and developing countries. It recognized that primary responsibility for formulating and implementing development policies rested with the governments of individual countries, but that their success depended crucially on complementary action being taken at the international level. In this connection, the Council stressed that trade liberalization and reduction of protectionism in the context of the Uruguay Round were an indispensable condition for progress to be made towards the objectives of the Strategy. The Council also underlined the importance of measures to strengthen economic and technical cooperation among developing countries (ECDC and TCDC) in food and agriculture.
43. The Council welcomed the emphasis in the Strategy on sustainable development and the environment, as well as on the need to ensure that macro-economic policies and those for other sectors did not discriminate against agriculture. Many members emphasized that in order to make progress towards achieving the objectives of the Strategy, it was necessary to overcome the constraints represented by external factors, including problems of debt, resource flows and agricultural protectionism. They expressed the concern that if these constraints were not removed, the 1990s might not be better than the 1980s for the advancement of the developing countries.
44. The Council stressed the importance of the Strategy's objectives in the areas of poverty and hunger alleviation, the development of human resources including people's participation, the enhancement of the role of women in agricultural and rural development, and the promotion of non-agricultural employment and income-earning opportunities in rural areas, including the role of the private sector. The Council was reminded that a request had been made for the submission of a plan of action on people's participation and it was reiterated that this plan should be submitted to the Council as soon as possible and, in any case, before the Twenty-sixth Session of the Conference. The Council expressed the hope that all the international community, especially the industrialized countries, would make every effort to attain the objectives of the IDS for the Fourth UN Development Decade.
45. Many members made statements regarding their national strategies for the food and agriculture sector, and indicated that such strategies were in broad agreement with both the objectives and the policy recommendations of the Strategy. They considered that the Strategy provided valuable guidelines for the formulation of more detailed strategies for individual countries and for international action. It was also pointed out that policy harmonization was a requirement for carrying out regional action. The Council considered that FAO should further strengthen its technical assistance to countries in support of policy analysis and formulation of national strategies for the food and agriculture sector.
1 CL 98/2; CL 98/2-Sup.l; CL 98/20; CL 98/PV/2; CL 98/PV/3; CL 98/PV/4; CL 98/PV/19
2 CL 98/10; CL 98/PV/5; CL 98/PV/19
3 CL 98/13; CL 98/PV/6; CL 98/PV/19
4 C 89/19
5 C 89/REP, paras 64-84
