F.5: Resources
Leveraging resources for FAO and its Members Other Information:
The issue: FAO's capacity to perform its mission is conditioned by decreasing the availability of resources, both core funds
for the Regular Programme and extrabudgetary contributions for technical cooperation. It is not realistic to expect an increase
in the level of multilateral ODA for the coming years in the light of the current trends in donor countries. Moreover, increasing
needs for emergency assistance and expected requirements for reconstruction and rehabilitation activities will in all probability
be at the expense of resource availability for long-term development. The limited resources likely to be made available to
FAO for agricultural development will need to be utilized in accordance with carefully established priorities. The aim will
be to increase the synergy between the normative and operational activities, and to enhance the Field Programme's dual function
of, on the one hand, translating into operation and action the concepts and findings developed through normative activities
and, on the other hand, enriching normative work through the feedback from field experience. Emphasis needs to be placed on
expanding the total resources applied to the principal programmes espoused by the Organization, and not necessarily on the
amount of resources managed by FAO. In this regard, a key challenge will be mobilizing domestic and external, public and private
resources for the agricultural and rural sector, including forestry and fisheries. FAO can contribute to the attainment of
this critical objective by providing assistance to governments in formulating national development strategies that create
a policy environment conducive to private sector involvement and investment. Similarly, it can assist Members in preparing
investment programmes and projects with a view to optimizing resource allocation to reflect priority goals better, with due
regard to the national absorptive capacities. In doing so, FAO must associate all stakeholders at the national and international
levels, so as to ensure ownership, commitment and proper follow-up through funding of high-priority activities by IFIs and
major multilateral donors. The strategy: The proposed strategy is to increase the leverage of resources in support of the
Organization's mandated functions through efficient and effective programme management, effective targeting of its work to
priority areas, and the consolidation, diversification and expansion of funding sources. FAO will take advantage of its decentralized
offices to ensure appropriate liaison with the decentralized decision-making structures of many donors. Programme design,
efficiency and effectiveness: In the case of the Regular Programme of Work, the approach is to improve programme management
so that Members remain convinced of the relevance and validity of FAO's activities and focus. For technical assistance and
investment programmes, the concentration will be on sound formulation, efficiency and timeliness and will involve: a) strengthening
of the current country focus system, in full collaboration with member countries, drawing on inputs from the FAO Representatives
(FAORs) and the decentralized units; b) ensuring adequate resources for well-considered programme and project formulation;
c) wider application of effective systems to permit monitoring of the costs of supporting different types of projects as well
as to track shortcomings systematically in implementation performance, including ensuring timely reporting to donors; d) continuing
efficiency savings with a view to reducing the cost of supporting field programmes and placing FAO in a better position to
compete for resources; and e) ongoing analysis of donors' ODA policies, sectoral and geographic priorities in order to identify
emerging opportunities for enhancing cooperation through the provision of technical assistance and training services in support
of programme areas of mutual interest. Targeting of programmes: For the Organization's normative programmes it is important
that extrabudgetary resources be mobilized: a) to support FAO pilot programmes aimed at testing and proving normative hypotheses
in response to emerging issues; b) to support activities of the Regular Programme directly so as to increase the total level
of resources made available for the normative functions of FAO, ensuring that, in doing so, the independence of FAO's work
(e.g. in standard setting) is not compromised; and c) to maximize the impact of its targeted programmes and foster the synergy
between normative and field activities, utilizing, as appropriate, its own human and financial resources and promoting joint
undertakings with donors. For the Field Programme, the priority will be: a) ensuring an integrated approach, with projects
based on long-term, broad-based strategies that facilitate the achievement of sustainable results; b) ensuring interdisciplinarity
in order to highlight FAO's comparative advantage and to enhance the attractiveness of its projects to donors and recipients
alike; c) giving priority to Field Programme activities that have a catalytic effect in mobilizing additional technical and
financial resources for agricultural development; d) concentrating on areas where demand for FAO's services is demonstrable,
including in agricultural rehabilitation in the context of response to emergencies, and in investment identification and preparation.
Consolidation, diversification and expansion of funding sources: Besides the current range of instruments used to reach out
to the traditional donor community, FAO will: a) strengthen the dialogue with newly emerging developing countries, e.g. in
Asia and in Latin America, as well as countries in transition, willing to support development cooperation and to use FAO as
a channel, in particular for countries in the same regions; b) encourage governments of developing countries to use FAO as
conduit for technology transfer and know-how acquisition to be funded from their own resources or from the proceeds of loans
under Unilateral Trust Fund (UTF) arrangements; c) further strengthen the partnership programmes that it has put in place
since 1994 and develop new partnerships with the private sector, private foundations and civil society as a whole, which will
increase the leveraging effect of FAO's own resources; d) act as facilitator for emerging cooperation between municipalities
and other subnational entities of both developed and developing countries; and e) mobilize donations from private individuals
for small-scale interventions in developing countries. FAO's success in carrying out the above activities will be greatly
strengthened if the Organization can project a positive and dynamic image as described in the following section.
Indicator(s):
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