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| Identifier: | 03ROME3249 |
|---|---|
| Wikileaks: | View 03ROME3249 at Wikileaks.org |
| Origin: | Embassy Rome |
| Created: | 2003-07-17 05:58:00 |
| Classification: | UNCLASSIFIED |
| Tags: | AORC EAID EAGR FAO |
| Redacted: | This cable was not redacted by Wikileaks. |
This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS SECTION 01 OF 03 ROME 003249
SIPDIS
STATE FOR IO/EDA WINNICK AND KOTOK
USAID FOR CUMMINGS
USDA/FAS FOR REICH AND HUGHES
PARIS FOR OECD
FROM FODAG
E.O. 12958: N/A
TAGS: AORC, EAID, EAGR, FAO
SUBJECT: FAO DEVELOPMENT ACTIVITIES: ACCOUNTING FOR THE
DECLINE
1. SUMMARY: VOLUNTARY FUNDING FOR THE UN FOOD AND
AGRICULTURE ORGANIZATION'S (FAO) DEVELOPMENT ACTIVITIES
HAS DECLINED SIGNIFICANTLY OVER THE LAST DECADE DUE TO A
SHARP DROP IN UN DEVELOPMENT PROGRAM (UNDP) FUNDING BUT
ALSO DUE TO WHAT FAO OFFICIALS THEMSELVES ACKNOWLEDGE WAS
FAO'S POOR PERFORMANCE. FAO'S ASSESSED REGULAR PROGRAM
BUDGET MUST INCREASINGLY COVER THE LOSSES ATTRIBUTED TO
DECLINING SUPPORT COST INCOME. FAO ASPIRES TO REVERSE
THE TREND AND MOVE BEYOND EXECUTING SECTORAL PROJECTS TO
PROVIDING "UPSTREAM" POLICY ADVICE TO DEVELOPING
COUNTRIES. GIVEN THE DISPERSAL OF FAO'S MODEST
DEVELOPMENT FUNDING OVER MANY FAO MEMBER COUNTRIES AND IN
MANY SMALL PROJECTS -- AND GIVEN THE KNOWN WEAKNESSES OF
FAO'S COUNTRY OFFICES -- IT IS HARD TO ENVISAGE FAO
BECOMING AN EFFECTIVE POLICY PLAYER WITHOUT A RADICAL
REORIENTATION. THE ISSUE IS AN IMPORTANT ONE AS IT GOES
TO THE HEART OF THE DEBATE IN FAO'S POLICY MAKING BODIES
ON THE DESIRED RELATIONSHIP BETWEEN FAO'S NORMATIVE AND
OPERATIONAL ACTIVITIES AND THE URGENT NEED TO IMPROVE THE
QUALITY OF FAO'S FIELD PRESENCE. END SUMMARY.
2. FAO ASSISTANT DIRECTOR GENERAL (ADG) FOR TECHNICAL
COOPERATION, HENRI CARSALADE, AND OTHER FAO OFFICIALS
GAVE DONORS AN OVERVIEW OF FAO'S DEVELOPMENT ACTIVITIES
ON JUNE 5, 2003. THE PRESENTATION COVERED TRENDS AND
PROSPECTS AND EXPLAINED HOW FAO SOUGHT TO REVERSE THE
DECLINE IN VOLUNTARY CONTRIBUTIONS.
BACKGROUND - EMERGENCIES UP, DEVELOPMENT DOWN
---------------------------------------------
3. THE MOST RECENT FAO PROGRAM IMPLEMENTATION REPORT
SHOWS THAT VOLUNTARY CONTRIBUTIONS FOR DEVELOPMENT
ACTIVITIES (FROM BILATERAL DONORS AND UNDP) IN 2000-2001
TOTALED USD 308 MILLION. THAT AMOUNT IS EXPECTED TO
DECLINE TO USD 280 MILLION IN 2002-2003. VOLUNTARY
FUNDING FOR NON-EMERGENCIES HAS, IN FACT, DROPPED 50
PERCENT IN THE LAST DECADE. EIGHTY PERCENT OF THAT DROP
CAN BE ATTRIBUTED TO SHARP REDUCTIONS IN UNDP FUNDING: IN
1992 FAO EXECUTED USD 150 MILLION IN UNDP PROJECTS; IN
2003 THE FAO WILL EXECUTE ONLY USD 14 MILLION.
4. FAO'S REGULAR PROGRAM BUDGET, FUNDED FROM ASSESSED
CONTRIBUTIONS, IS PRIMARILY FOR NORMATIVE AND STANDARD
SETTING ACTIVITIES, ALTHOUGH ABOUT 14 PERCENT (USD 95
MILLION OVER THE BIENNIUM 2002-2003) IS EARMARKED FOR THE
TECHNICAL COOPERATION PROGRAM (TCP). TCP PROJECTS ARE
SMALL, AD HOC PROJECT AVAILABLE TO ALL DEVELOPING
COUNTRIES (AND COUNTRIES WITH ECONOMIES IN TRANSITION) ON
A FIRST COME, FIRST SERVED BASIS WITHOUT ANY NEEDS-BASED
OR PERFORMANCE-BASED CRITERIA. FAO ALSO ALLOCATES ABOUT
USD 10 MILLION ANNUALLY FOR PILOT FOOD SECURITY PROJECTS
UNDER ITS SPECIAL PROGRAM FOR FOOD SECURITY (SPFS). THE
REGULAR BUDGET ALSO SUPPORTS FAO'S FIELD PRESENCE AND
ABSORBS INDIRECT PROJECT SUPPORT COST CHARGES NOT COVERED
DIRECTLY BY CONTRIBUTIONS. IN CONTRAST TO THE DECLINING
TREND IN VOLUNTARY CONTRIBUTIONS, FAO'S REGULAR PROGRAM
BUDGET HAS INCLUDED INCREASES FOR TCP, SPFS AND FOR
COUNTRY OFFICES WITH EACH BIENNIUM (PRIMARILY AT THE
INSISTENCE OF THE G-77).
5. INCLUDING SPFS, FAO SPENDS ABOUT USD 200 MILLION
ANNUALLY FOR OPERATIONAL ACTIVITIES FROM VOLUNTARY AND
ASSESSED CONTRIBUTIONS.
WHAT HAPPENED TO UNDP FUNDING
----------------------------
6. ACCORDING TO FAO, REDUCED UNDP FUNDING IS A RESULT OF
THE SHIFT FROM PROJECT TO PROGRAM FUNDING AND A
SIGNIFICANT INCREASE IN NATIONAL EXECUTION. (FAO ALSO
STATED THAT DONOR RESOURCES FOR UNDP DECLINED OVERALL "AS
A RESULT OF QUALITY OF ASSISTANCE.") ACCORDING TO FAO
OFFICIALS, "UNDP SUCCESSOR ARRANGEMENTS" WERE INTENDED TO
INCLUDE THE SPECIALIZED AGENCIES AS PROVIDERS OF
"UPSTREAM POLICY ADVICE AND ASSISTANCE." THIS DID NOT
HAPPEN WITH FAO BECAUSE:
-- FAO DID NOT HAVE EFFECTIVE AND COLLABORATIVE TIES AT
ROME 00003249 001.2 OF 003
PMENT ACTIVITIES
HAS DECLINED SIGNIFICANTLY OVER THE LAST DECADE DUE TO A
SHARP DROP IN UN DEVELOPMENT PROGRAM (UNDP) FUNDING BUT
ALSO DUE TO WHAT FAO OFFICIALS THEMSELVES ACKNOWLEDGE WAS
FAO'S POOR PERFORMANCE. FAO'S ASSESSED REGULAR PROGRAM
BUDGET MUST INCREASINGLY COVER THE LOSSES ATTRIBUTED TO
DECLINING SUPPORT COST INCOME. FAO ASPIRES TO REVERSE
THE TREND AND MOVE BEYOND EXECUTING SECTORAL PROJECTS TO
PROVIDING "UPSTREAM" POLICY ADVICE TO DEVELOPING
COUNTRIES. GIVEN THE DISPERSAL OF FAO'S MODEST
DEVELOPMENT FUNDING OVER MANY FAO MEMBER COUNTRIES AND IN
MANY SMALL PROJECTS -- AND GIVEN THE KNOWN WEAKNESSES OF
FAO'S COUNTRY OFFICES -- IT IS HARD TO ENVISAGE FAO
BECOMING AN EFFECTIVE POLICY PLAYER WITHOUT A RADICAL
REORIENTATION. THE ISSUE IS AN IMPORTANT ONE AS IT GOES
TO THE HEART OF THE DEBATE IN FAO'S POLICY MAKING BODIES
ON THE DESIRED RELATIONSHIP BETWEEN FAO'S NORMATIVE AND
OPERATIONAL ACTIVITIES AND THE URGENT NEED TO IMPROVE THE
QUALITY OF FAO'S FIELD PRESENCE. END SUMMARY.
2. FAO ASSISTANT DIRECTOR GENERAL (ADG) FOR TECHNICAL
COOPERATION, HENRI CARSALADE, AND OTHER FAO OFFICIALS
GAVE DONORS AN OVERVIEW OF FAO'S DEVELOPMENT ACTIVITIES
ON JUNE 5, 2003. THE PRESENTATION COVERED TRENDS AND
PROSPECTS AND EXPLAINED HOW FAO SOUGHT TO REVERSE THE
DECLINE IN VOLUNTARY CONTRIBUTIONS.
BACKGROUND - EMERGENCIES UP, DEVELOPMENT DOWN
---------------------------------------------
3. THE MOST RECENT FAO PROGRAM IMPLEMENTATION REPORT
SHOWS THAT VOLUNTARY CONTRIBUTIONS FOR DEVELOPMENT
ACTIVITIES (FROM BILATERAL DONORS AND UNDP) IN 2000-2001
TOTALED USD 308 MILLION. THAT AMOUNT IS EXPECTED TO
DECLINE TO USD 280 MILLION IN 2002-2003. VOLUNTARY
FUNDING FOR NON-EMERGENCIES HAS, IN FACT, DROPPED 50
PERCENT IN THE LAST DECADE. EIGHTY PERCENT OF THAT DROP
CAN BE ATTRIBUTED TO SHARP REDUCTIONS IN UNDP FUNDING: IN
1992 FAO EXECUTED USD 150 MILLION IN UNDP PROJECTS; IN
2003 THE FAO WILL EXECUTE ONLY USD 14 MILLION.
4. FAO'S REGULAR PROGRAM BUDGET, FUNDED FROM ASSESSED
CONTRIBUTIONS, IS PRIMARILY FOR NORMATIVE AND STANDARD
SETTING ACTIVITIES, ALTHOUGH ABOUT 14 PERCENT (USD 95
MILLION OVER THE BIENNIUM 2002-2003) IS EARMARKED FOR THE
TECHNICAL COOPERATION PROGRAM (TCP). TCP PROJECTS ARE
SMALL, AD HOC PROJECT AVAILABLE TO ALL DEVELOPING
COUNTRIES (AND COUNTRIES WITH ECONOMIES IN TRANSITION) ON
A FIRST COME, FIRST SERVED BASIS WITHOUT ANY NEEDS-BASED
OR PERFORMANCE-BASED CRITERIA. FAO ALSO ALLOCATES ABOUT
USD 10 MILLION ANNUALLY FOR PILOT FOOD SECURITY PROJECTS
UNDER ITS SPECIAL PROGRAM FOR FOOD SECURITY (SPFS). THE
REGULAR BUDGET ALSO SUPPORTS FAO'S FIELD PRESENCE AND
ABSORBS INDIRECT PROJECT SUPPORT COST CHARGES NOT COVERED
DIRECTLY BY CONTRIBUTIONS. IN CONTRAST TO THE DECLINING
TREND IN VOLUNTARY CONTRIBUTIONS, FAO'S REGULAR PROGRAM
BUDGET HAS INCLUDED INCREASES FOR TCP, SPFS AND FOR
COUNTRY OFFICES WITH EACH BIENNIUM (PRIMARILY AT THE
INSISTENCE OF THE G-77).
5. INCLUDING SPFS, FAO SPENDS ABOUT USD 200 MILLION
ANNUALLY FOR OPERATIONAL ACTIVITIES FROM VOLUNTARY AND
ASSESSED CONTRIBUTIONS.
WHAT HAPPENED TO UNDP FUNDING
----------------------------
6. ACCORDING TO FAO, REDUCED UNDP FUNDING IS A RESULT OF
THE SHIFT FROM PROJECT TO PROGRAM FUNDING AND A
SIGNIFICANT INCREASE IN NATIONAL EXECUTION. (FAO ALSO
STATED THAT DONOR RESOURCES FOR UNDP DECLINED OVERALL "AS
A RESULT OF QUALITY OF ASSISTANCE.") ACCORDING TO FAO
OFFICIALS, "UNDP SUCCESSOR ARRANGEMENTS" WERE INTENDED TO
INCLUDE THE SPECIALIZED AGENCIES AS PROVIDERS OF
"UPSTREAM POLICY ADVICE AND ASSISTANCE." THIS DID NOT
HAPPEN WITH FAO BECAUSE:
-- FAO DID NOT HAVE EFFECTIVE AND COLLABORATIVE TIES AT
ROME 00003249 002.1 OF 003
7. BILATERAL, DONOR-FUNDED DEVELOPMENT ACTIVITIES HAVE
ALSO GONE DOWN -- BUT LESS SUBSTANTIALLY -- FROM ABOUT
USD 100 MILLION/YEAR TO USD 80 MILLION/YEAR. UNILATERAL
TRUST FUNDS (WHERE A COUNTRY ITSELF PAYS FAO TO EXECUTE A
PROJECT) HAVE INCREASED SLIGHTLY. BILATERAL DONORS
(INCLUDING THE UNITED STATES), HOWEVER, CONTINUE TO PUT
MORE FUNDS INTO EMERGENCY FIELD ACTIVITIES.
8. THE U.S. IS NOT A MAJOR DONOR TO FAO NON-EMERGENCY
EXTRA-BUDGETARY ACTIVITIES. THE U.S. CONTRIBUTION WAS
LESS THAN USD 1 MILLION IN 2002. THE MAJOR DONORS ARE
EUROPEAN UNION COUNTRIES, WITH THE NETHERLANDS AND ITALY
IN THE LEAD.
PROBLEMS IN DECENTRALIZATION
-----------------------------
9. IN LOOKING AT THE OVERALL DECLINE, FAO READILY
ACKNOWLEDGED THAT INTERNAL FACTORS LED TO LESS MONEY
BEING CHANNELED TO FAO. ACCORDING TO CARSALADE, "FAO
DECENTRALIZATION RESULTED IN CAPACITY AND MANAGERIAL
PROBLEMS IN COUNTRY OFFICES."
10. FAO ACKNOWLEDGED THAT MANY FAO COUNTRY OFFICES
(FAORS) DID NOT HAVE THE EXPERIENCE TO TAKE ON PROJECT
EXECUTION: TRAINING FOR FAO COUNTRY OFFICES IS CURRENTLY
ONGOING IN ORDER TO ENSURE THAT THE OFFICES ARE ABLE TO
HANDLE THE 46 PERCENT OF PROJECTS NOW BEING EXECUTED
DIRECTLY THROUGH FAORS. FAO HAS ALSO EMBARKED ON A FULL-
SCALE EVALUATION OF DECENTRALIZATION, AND IS COMPLETING
AN "IN-DEPTH REVIEW" OF ONE OF THE REGIONS, LOOKING AT
THE RELATIONSHIP BETWEEN HEADQUARTERS, REGIONAL OFFICE
AND COUNTRY REPRESENTATIVES.
11. FAO ALSO ACKNOWLEDGED MANAGERIAL INEFFICIENCIES AT
HEADQUARTERS. ANDREW MCMILLAN, DIRECTOR OF FAO'S FIELD
OPERATIONS DIVISION STATED, "FAO IS TRYING TO IMPROVE THE
REPUTATION OF THE ORGANIZATION WHICH WAS SERIOUSLY
DAMAGED IN THE PAST AS A DELIVERER OF TECHNICAL
ASSISTANCE."
12. LOOKING TO RETURN TO HIGHER LEVELS OF UNDP FUNDING,
FAO WILL WORK TO COMMUNICATE, "ITS ADDED VALUE, ITS
SERVICES, AND ITS PRODUCTS" ACCORDING TO ADG CARSALADE.
FAO HAS MADE A POINT, ACCORDING TO CARSALADE, OF
IMPROVING FAO PRESENCE IN THE UN COUNTRY TEAM, STRESSING
ITS CONTRIBUTION TO THE UN DEVELOPMENT GROUP (UNDG) AND
COMMITMENT TO THE POVERTY REDUCTION STRATEGY PAPERS
(PRSP'S).
DONOR FOCUS ON FIELD PRESENCE AND DEMAND
----------------------------------------
13. THE NETHERLANDS, ONE OF THE LARGEST DONORS TO FAO'S
DEVELOPMENT ACTIVITIES, STATED THAT THE NETHERLANDS CAN
"ENDORSE THIS APPROACH AND EMBRACE IT." THE NETHERLANDS
WANTS FAO TO SEEK MORE "UPSTREAM" APPROACHES, AND GUIDE
COUNTRIES ON POLICIES. HOWEVER, THEY STATED THAT THEIR
OWN FEEDBACK INDICATED THAT FAO WAS NOT INVOLVED IN
POLICY AND THAT INVOLVEMENT WITH PRSPS "WAS MINIMAL." THE
NETHERLANDS STRESSED THE LINKAGE BETWEEN NORMATIVE WORK
AND DEVELOPMENT PROJECTS. (NOTE: THE NETHERLANDS IS
SHORTLY TO RELEASE A STUDY ASSESSING THE IMPACT OF DUTCH
CONTRIBUTIONS CHANNELED THROUGH FAO FROM 1985-2000).
14. FRANCE QUERIED WHETHER FAO HAD "SOLVED ITS PROBLEMS
IN THE FIELD OFFICES" AND ARGUED THAT LACK OF
COMMUNICATION WITH DONORS WAS A SERIOUS ISSUE. HE NOTED
THAT "SOMETIMES DONORS LACK VISIBILITY IN FIELD PROGRAMS,
WHICH IS A PROBLEM."
15. BELGIUM STATED THAT MEMBERS NEEDED TO SPEND MORE
TIME DISCUSSING THE OVERLAP BETWEEN REGULAR BUDGET AND
EXTRA-BUDGETARY ACTIVITIES. IF FAO IS TO PLAY A ROLE IN
ROME 00003249 002.2 OF 003
7. BILATERAL, DONOR-FUNDED DEVELOPMENT ACTIVITIES HAVE
ALSO GONE DOWN -- BUT LESS SUBSTANTIALLY -- FROM ABOUT
USD 100 MILLION/YEAR TO USD 80 MILLION/YEAR. UNILATERAL
TRUST FUNDS (WHERE A COUNTRY ITSELF PAYS FAO TO EXECUTE A
PROJECT) HAVE INCREASED SLIGHTLY. BILATERAL DONORS
(INCLUDING THE UNITED STATES), HOWEVER, CONTINUE TO PUT
MORE FUNDS INTO EMERGENCY FIELD ACTIVITIES.
8. THE U.S. IS NOT A MAJOR DONOR TO FAO NON-EMERGENCY
EXTRA-BUDGETARY ACTIVITIES. THE U.S. CONTRIBUTION WAS
LESS THAN USD 1 MILLION IN 2002. THE MAJOR DONORS ARE
EUROPEAN UNION COUNTRIES, WITH THE NETHERLANDS AND ITALY
IN THE LEAD.
PROBLEMS IN DECENTRALIZATION
-----------------------------
9. IN LOOKING AT THE OVERALL DECLINE, FAO READILY
ACKNOWLEDGED THAT INTERNAL FACTORS LED TO LESS MONEY
BEING CHANNELED TO FAO. ACCORDING TO CARSALADE, "FAO
DECENTRALIZATION RESULTED IN CAPACITY AND MANAGERIAL
PROBLEMS IN COUNTRY OFFICES."
10. FAO ACKNOWLEDGED THAT MANY FAO COUNTRY OFFICES
(FAORS) DID NOT HAVE THE EXPERIENCE TO TAKE ON PROJECT
EXECUTION: TRAINING FOR FAO COUNTRY OFFICES IS CURRENTLY
ONGOING IN ORDER TO ENSURE THAT THE OFFICES ARE ABLE TO
HANDLE THE 46 PERCENT OF PROJECTS NOW BEING EXECUTED
DIRECTLY THROUGH FAORS. FAO HAS ALSO EMBARKED ON A FULL-
SCALE EVALUATION OF DECENTRALIZATION, AND IS COMPLETING
AN "IN-DEPTH REVIEW" OF ONE OF THE REGIONS, LOOKING AT
THE RELATIONSHIP BETWEEN HEADQUARTERS, REGIONAL OFFICE
AND COUNTRY REPRESENTATIVES.
11. FAO ALSO ACKNOWLEDGED MANAGERIAL INEFFICIENCIES AT
HEADQUARTERS. ANDREW MCMILLAN, DIRECTOR OF FAO'S FIELD
OPERATIONS DIVISION STATED, "FAO IS TRYING TO IMPROVE THE
REPUTATION OF THE ORGANIZATION WHICH WAS SERIOUSLY
DAMAGED IN THE PAST AS A DELIVERER OF TECHNICAL
ASSISTANCE."
12. LOOKING TO RETURN TO HIGHER LEVELS OF UNDP FUNDING,
FAO WILL WORK TO COMMUNICATE, "ITS ADDED VALUE, ITS
SERVICES, AND ITS PRODUCTS" ACCORDING TO ADG CARSALADE.
FAO HAS MADE A POINT, ACCORDING TO CARSALADE, OF
IMPROVING FAO PRESENCE IN THE UN COUNTRY TEAM, STRESSING
ITS CONTRIBUTION TO THE UN DEVELOPMENT GROUP (UNDG) AND
COMMITMENT TO THE POVERTY REDUCTION STRATEGY PAPERS
(PRSP'S).
DONOR FOCUS ON FIELD PRESENCE AND DEMAND
----------------------------------------
13. THE NETHERLANDS, ONE OF THE LARGEST DONORS TO FAO'S
DEVELOPMENT ACTIVITIES, STATED THAT THE NETHERLANDS CAN
"ENDORSE THIS APPROACH AND EMBRACE IT." THE NETHERLANDS
WANTS FAO TO SEEK MORE "UPSTREAM" APPROACHES, AND GUIDE
COUNTRIES ON POLICIES. HOWEVER, THEY STATED THAT THEIR
OWN FEEDBACK INDICATED THAT FAO WAS NOT INVOLVED IN
POLICY AND THAT INVOLVEMENT WITH PRSPS "WAS MINIMAL." THE
NETHERLANDS STRESSED THE LINKAGE BETWEEN NORMATIVE WORK
AND DEVELOPMENT PROJECTS. (NOTE: THE NETHERLANDS IS
SHORTLY TO RELEASE A STUDY ASSESSING THE IMPACT OF DUTCH
CONTRIBUTIONS CHANNELED THROUGH FAO FROM 1985-2000).
14. FRANCE QUERIED WHETHER FAO HAD "SOLVED ITS PROBLEMS
IN THE FIELD OFFICES" AND ARGUED THAT LACK OF
COMMUNICATION WITH DONORS WAS A SERIOUS ISSUE. HE NOTED
THAT "SOMETIMES DONORS LACK VISIBILITY IN FIELD PROGRAMS,
WHICH IS A PROBLEM."
15. BELGIUM STATED THAT MEMBERS NEEDED TO SPEND MORE
TIME DISCUSSING THE OVERLAP BETWEEN REGULAR BUDGET AND
EXTRA-BUDGETARY ACTIVITIES. IF FAO IS TO PLAY A ROLE IN
ROME 00003249 003.1 OF 003
EFINED." HE
NOTED PROBLEMS WITH THE QUALITY OF FIELD REPRESENTATIVES
AND THE QUALITY OF PERSONNEL IN GENERAL, COMPARING FAO'S
PERFORMANCE EVALUATION UNFAVORABLY TO THE WORLD FOOD
PROGRAMS (WFP) SUPERIOR "360 DEGREES PERFORMANCE
EVALUATION."
16. THE UK, SWISS AND EC REPS RAISED THE "DEMAND" SIDE,
QUESTIONING WHETHER COUNTRIES THEMSELVES WERE ACTUALLY
SEEKING ADDITIONAL ASSISTANCE FOR AGRICULTURAL AND RURAL
DEVELOPMENT.
FAO RESPONSE - POLICY IS A PROBLEM
----------------------------------
17. DIRECTOR OF FAO'S POLICY ASSISTANCE DIVISION,
SANTIAGO FUNES, RESPONDED THAT FAO WAS INDEED INVOLVED IN
SOME "POLICY" WORK, CITING FAO'S EXPERIENCE IN MOZAMBIQUE
WHERE FAO WAS CONTRACTED BY THE GOVERNMENT TO DEVELOP A
COMPREHENSIVE RURAL DEVELOPMENT PROGRAM IN PARTNERSHIP
WITH THE WORLD BANK. THAT BEING SAID, FUNES ACKNOWLEDGED
THAT "THE FAO BUDGET WAS NOT LARGE ENOUGH TO DEAL WITH
THE CHALLENGES OF RURAL AND AGRICULTURAL DEVELOPMENT." HE
POINTED OUT THAT SIX YEARS AGO, A NEW BUDGET LINE HAD
BEEN ADDED (IN THE REGULAR BUDGET) ON "PROVISION OF
POLICY ADVICE." FUNES ADDED, "EVERY DAY WE ARE URGING FAO
REPRESENTATIVES TO PROVIDE POLICY ADVICE!"
18. ADG CARSALADE WELCOMED THE COMMENTS ON FIELD
REPRESENTATIVES AND PERSONNEL ISSUES RAISED BY BELGIUM
AND FRANCE, AND NOTED THAT A NEW FAO COMMITTEE HAD BEEN
FORMED ON THE SUBJECT. HE ALSO AGREED ON THE NEED TO
IMPROVE PERFORMANCE EVALUATION.
COMMENT
-------
19. BUDGET ISSUES: THE DECLINE IN EXTRABUDGETARY FUNDING
CREATES A CONTINUING DRAG ON FAO'S REGULAR PROGRAM BUDGET
AND HAMPERS EFFORTS TO CURB FAO BUDGET GROWTH.
DEVELOPING COUNTRIES -- COGNIZANT OF THE DECLINE IN
VOLUNTARY FUNDING -- ROUTINELY REQUEST LARGER
ALLOCATIONS FROM THE REGULAR PROGRAM BUDGET FOR
OPERATIONAL ACTIVITIES. THIS IN TURN PUTS PRESSURE ON
THE OVERALL BUDGET LEVEL. FURTHERMORE, IN THE CURRENT
BIENNIUM, THE REGULAR PROGRAM WILL HAVE TO COVER AN
ESTIMATED SHORTFALL OF USD 6.2 MILLION TO COMPENSATE FOR
DECLINING SUPPORT COST INCOME. THE FAO FINANCE COMMITTEE
HAS REGULARLY REQUESTED THE FAO TO TAKE ACTION TO REMEDY
THIS SITUATION; ABSENT RAISING SUPPORT COST CHARGES
(WHICH THE DG HAS RULED OUT), IT IS NOT CLEAR HOW FAO
WILL RESOLVE THIS PROBLEM.
20. PROGRAM ISSUES: NORMATIVE AND OPERATIONAL ACTIVITIES
SHOULD COMPLEMENT EACH OTHER; FURTHERMORE, PUTTING INTO
PLACE A FIRST-RATE FAO FIELD LEVEL PRESENCE IS CRITICAL
TO SUPPORTING BOTH NON-EMERGENCY AND EMERGENCY
ACTIVITIES. FAO MEMBERS NEED TO CONSIDER WHAT KIND OF
DEVELOPMENT ACTIVITIES FAO CAN PERFORM BEST AND URGE THE
ORGANIZATION TO MAKE THE CHANGES NECESSARY TO DO SO. THE
NEED TO IMPROVE FAO'S FIELD PRESENCE IS CLEAR.
CURRENTLY, FAO PROJECTS ARE AD-HOC, SECTORAL, WIDELY
DISPERSED AND POORLY COORDINATED WITH OTHER DONOR
ACTIVITIES. DONORS WHO SUPPORT FAO MOVING "UPSTREAM" TO
BECOME AN EFFECTIVE POLICY PLAYER RECOGNIZE THAT FAO WILL
NEED A RADICAL REORIENTATION -- NOT JUST REASSURANCES -
- TO TAKE ON THAT NEW ROLE. HALL
ROME 00003249 003.2 OF 003
EFINED." HE
NOTED PROBLEMS WITH THE QUALITY OF FIELD REPRESENTATIVES
AND THE QUALITY OF PERSONNEL IN GENERAL, COMPARING FAO'S
PERFORMANCE EVALUATION UNFAVORABLY TO THE WORLD FOOD
PROGRAMS (WFP) SUPERIOR "360 DEGREES PERFORMANCE
EVALUATION."
16. THE UK, SWISS AND EC REPS RAISED THE "DEMAND" SIDE,
QUESTIONING WHETHER COUNTRIES THEMSELVES WERE ACTUALLY
SEEKING ADDITIONAL ASSISTANCE FOR AGRICULTURAL AND RURAL
DEVELOPMENT.
FAO RESPONSE - POLICY IS A PROBLEM
----------------------------------
17. DIRECTOR OF FAO'S POLICY ASSISTANCE DIVISION,
SANTIAGO FUNES, RESPONDED THAT FAO WAS INDEED INVOLVED IN
SOME "POLICY" WORK, CITING FAO'S EXPERIENCE IN MOZAMBIQUE
WHERE FAO WAS CONTRACTED BY THE GOVERNMENT TO DEVELOP A
COMPREHENSIVE RURAL DEVELOPMENT PROGRAM IN PARTNERSHIP
WITH THE WORLD BANK. THAT BEING SAID, FUNES ACKNOWLEDGED
THAT "THE FAO BUDGET WAS NOT LARGE ENOUGH TO DEAL WITH
THE CHALLENGES OF RURAL AND AGRICULTURAL DEVELOPMENT." HE
POINTED OUT THAT SIX YEARS AGO, A NEW BUDGET LINE HAD
BEEN ADDED (IN THE REGULAR BUDGET) ON "PROVISION OF
POLICY ADVICE." FUNES ADDED, "EVERY DAY WE ARE URGING FAO
REPRESENTATIVES TO PROVIDE POLICY ADVICE!"
18. ADG CARSALADE WELCOMED THE COMMENTS ON FIELD
REPRESENTATIVES AND PERSONNEL ISSUES RAISED BY BELGIUM
AND FRANCE, AND NOTED THAT A NEW FAO COMMITTEE HAD BEEN
FORMED ON THE SUBJECT. HE ALSO AGREED ON THE NEED TO
IMPROVE PERFORMANCE EVALUATION.
COMMENT
-------
19. BUDGET ISSUES: THE DECLINE IN EXTRABUDGETARY FUNDING
CREATES A CONTINUING DRAG ON FAO'S REGULAR PROGRAM BUDGET
AND HAMPERS EFFORTS TO CURB FAO BUDGET GROWTH.
DEVELOPING COUNTRIES -- COGNIZANT OF THE DECLINE IN
VOLUNTARY FUNDING -- ROUTINELY REQUEST LARGER
ALLOCATIONS FROM THE REGULAR PROGRAM BUDGET FOR
OPERATIONAL ACTIVITIES. THIS IN TURN PUTS PRESSURE ON
THE OVERALL BUDGET LEVEL. FURTHERMORE, IN THE CURRENT
BIENNIUM, THE REGULAR PROGRAM WILL HAVE TO COVER AN
ESTIMATED SHORTFALL OF USD 6.2 MILLION TO COMPENSATE FOR
DECLINING SUPPORT COST INCOME. THE FAO FINANCE COMMITTEE
HAS REGULARLY REQUESTED THE FAO TO TAKE ACTION TO REMEDY
THIS SITUATION; ABSENT RAISING SUPPORT COST CHARGES
(WHICH THE DG HAS RULED OUT), IT IS NOT CLEAR HOW FAO
WILL RESOLVE THIS PROBLEM.
20. PROGRAM ISSUES: NORMATIVE AND OPERATIONAL ACTIVITIES
SHOULD COMPLEMENT EACH OTHER; FURTHERMORE, PUTTING INTO
PLACE A FIRST-RATE FAO FIELD LEVEL PRESENCE IS CRITICAL
TO SUPPORTING BOTH NON-EMERGENCY AND EMERGENCY
ACTIVITIES. FAO MEMBERS NEED TO CONSIDER WHAT KIND OF
DEVELOPMENT ACTIVITIES FAO CAN PERFORM BEST AND URGE THE
ORGANIZATION TO MAKE THE CHANGES NECESSARY TO DO SO. THE
NEED TO IMPROVE FAO'S FIELD PRESENCE IS CLEAR.
CURRENTLY, FAO PROJECTS ARE AD-HOC, SECTORAL, WIDELY
DISPERSED AND POORLY COORDINATED WITH OTHER DONOR
ACTIVITIES. DONORS WHO SUPPORT FAO MOVING "UPSTREAM" TO
BECOME AN EFFECTIVE POLICY PLAYER RECOGNIZE THAT FAO WILL
NEED A RADICAL REORIENTATION -- NOT JUST REASSURANCES -
- TO TAKE ON THAT NEW ROLE. HALL
NNNN
2003ROME03249 - Classification: UNCLASSIFIED
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