_________________________
* English only/En anglais seulement/En inglés solamente.WORLD TRADE ORGANIZATION
ORGANISATION MONDIALE DU COMMERCE
ORGANIZACIÓN MUNDIAL DEL COMERCIOG/AG/GEN/40
19 November 1999
(99-5048)
Committee on Agriculture Original:  English
                 anglais/
                 inglés
ANNUAL MONITORING EXERCISE IN RESPECT OF THE FOLLOW-UP TO
THE MINISTERIAL DECISION ON MEASURES CONCERNING THE POSSIBLE
NEGATIVE EFFECTS OF THE REFORM PROGRAMME ON LEAST-DEVELOPED
AND NET FOOD-IMPORTING DEVELOPING COUNTRIES
Attached are copies of statements* made by the representatives of the Food and Agriculture
Organization (FAO), the International Monetary F und (IMF), the OECD, and the World Bank at the
meeting of the Committee on Agriculture on 17 Nove mber 1999 (agenda Item Part II.A refers).
Comité de l'agriculture
EXERCICE ANNUEL DE SURVEILLANCE DE LA SUITE DONNÉE À LA DÉCISION
MINISTÉRIELLE SUR LES MESURES CONCERNANT LES EFFETS NÉGATIFS POSSIBLES
DU PROGRAMME DE RÉFORME SUR LES PAYS LES MOINS
AVANCÉS ET LES PAYS EN DÉVELOPPEMENT IMPORTATEURS
NETS DE PRODUITS ALIMENTAIRES
On trouvera ci-joint la copie de s déclarations* faites par les représentants de l'Organisation des
Nations Unies pour l'alimentation et l'agriculture (FAO), du Fonds monétaire international (FMI), de
l'OCDE, et de la Banque mondiale à la réunion du Co mité de l'agriculture du 17 novembre 1999 (point A de
la deuxième partie de l'ordre du jour).
Comité de Agricultura
EJERCICIO ANUAL DE VIGILANCIA DEL SEGUIMIENTO DE LA DECISIÓN
MINISTERIAL SOBRE MEDIDAS RELATIVAS A LOS POSIBLES
EFECTOS NEGATIVOS DEL PROGRAMA DE REFORMA EN
LOS PAÍSES MENOS ADELANTADOS Y EN LOS PAÍSES
EN DESARROLLO IMPORTADORES NETOS
DE PRODUCTOS ALIMENTICIOS
A continuación se adjuntan copias de las declarac iones* formuladas por los representantes de la
Organización de las Naciones Unidas  para la Agricultura y la Alimentación (FAO), el Fondo Monetario
Internacional (FMI), la OCDE, y el Banco Mundial en la reunión del Comité de Agricultura celebrada eldía 17 de noviembre de 1999 (véase el punto A de la Parte II del orden del día).G/AG/GEN/40
Page 2
STATEMENT BY THE REPRESENTATIVE OF THE FOOD
AND AGRICULTURE ORGANIZATION (FAO)
I would like to report briefly on developments in the global cereal supply/demand balance and
recent trends in import bills of the LDCs and the NFIDCs.  In addition, I would like to report on some
activities by the FAO on follow up to the Uruguay Round.
The world supply/demand situation for the 1999/2000 season
With the bulk of the 1999 cereal crops already harvested, world cereal output  in 1999 would be
slightly below the anticipated utilization  in 1999/2000.  As a result, some draw down in stocks  is
expected.  Nevertheless, the ratio between expected global cereal carryovers in 2000 and trend utilization
would remain within the 17 to 18 per cent range th at the FAO Secretariat considers as the minimum
necessary to safeguard world food security.  It should also be noted that while global cereal stocks are
forecast to decrease, those held by the major exportin g countries, which are the main buffer against any
major production shortfall, are forecast to change relatively little from their opening level, which now
stands at over 150 million tonnes and are more than double the level four years ago when the last cereal
price surge occurred.
World trade  in cereals is forecast to increase by about 4 per cent in 1999/2000, with the
expansion shared among a few developed countries and several of the developing countries, particularly
those in the Low-Income Food Deficit category. The bulk of the increase would be in wheat and coarse
grains, while rice imports are forecast to remain virtually unchanged.
International export prices  of nearly all major cereals remain generally weaker than a year ago.
With large stocks held by major exporters and in the face of only a modest growth in world import
demand, any major recovery in prices in the coming months is unlikely.  However, the longer-term
prospect would depend on next year’s planting as well as the extent of the recovery in cereal utilization.
Cereal food aid  shipments in 1998/99 reached 9.5 million tonnes, up more than 50 per cent from
1997/98 and the highest since 1993/94. The bulk of th e increase went to the Russian Federation but
several other countries also received more, including Bangladesh, Indonesia, and several countries in
Central America and Africa.  It is important to note that food emergencies persist in many countries
throughout the world and absorb an increasing share of  food aid resources.  The latest information from
FAO points to as many as 35 countries currently facing food shortages of varying intensity.  As a result ofthe urgency of responding to these emergencies, the use of food aid in meeting structural deficits has
declined considerably.
1
Cereal import bills of LDCs and the NFIDCs
During the past marketing season (1998/99) the combined cereal import bill of the countries
comprising the LDCs  and the NFIDCs  came to some $6.6 billion, down 15 per cent from the previous
year. This decline reflects a small reduction in the volume of imports but, more substantially, much lower
                                                     
1 In June 1999 major donors approved the new Food Aid Convention (FAC)  and confirmed their intention
to implement it for an initial period of three years starting in July 1999.   The new convention calls for a more
flexible approach to food aid, by expanding the list of eligible commodities and the method of contributions.
Overall, the food aid volume commitment under the new Convention would be ro ughly equivalent to the level under
the 1995 Convention.G/AG/GEN/40
Page 3
average prices paid for imports. The per unit import cost in 1998/99 was about US$148/tonne compared
to US$171/tonne in 1997/98.  Compared to 1995/96, the year of the most recent price spike, the import
bill of these countries in 1998/99 was about one-fourth less. However, since the price spike, the average
cereal import bill of these countries has remained higher than in earlier years.  It was about 30 per cent
higher in both 1996/97 and 1997/98 and 11 per cent  higher in 1998/99 compared to the average for
1993/94-94/95.  Only part of this increase is due to an increase in the volume imported.  The remainder isdue to increase in the per unit import cost due to price increases, and a reduction in food aid and
subsidized imports.
Although food aid increased during 1998/99, it wo uld account for only 8 per cent of the cereal
imports of the LDCs  and the NFIDCs  compared to 15 per cent in 1993/94-94/95.  In addition, subsidized
imports of cereals under the US Export Enhancement Programme which peaked at US$ 980 million in
1993/94 (of which US$ 454 to these countries) are virtually absent after 1995/96.
2
Capacity building in developing countries
Finally, I would like to inform briefly the Committee about FAO’s capacity-building activities
related to the Agreements on Agriculture, SPS/TBT, and TRIPs.   The focus of these activities has now
shifted to preparing countries for the continuation of  the reform process in agriculture and providing
support to them during the forthcoming multilateral trade negotiations, as may be required.
A few examples of such activities that took place recently include the following:
• several national and regional capacity-building activities in Africa, Asia, Latin America, the
Near East and the countries in transition.   These activities are part of a training umbrella
programme, being implemented since June 1999, which includes 14 sub-regional training
courses.  The goal of this programme is to train between 4-6 officials from each country – in
total 700-800 officials – in order to create a critical mass of national experts to support trade
negotiations
• a Symposium here in Geneva (23-24 September 1999) on Agriculture, Trade and Food
Security which highlighted developing countries’ concerns, in particular the interrelationship
between agricultural trade, economic development and food security
• a Conference in Melbourne (11-15 October 1999) in collaboration with WHO and WTO, on
food quality and safety issues.
More details on these and other capacity-building activities in agriculture, forestry and fisheries
focussing on developing countries and countries in transition can be found in FAO's website
www.FAO.org/ur.    In the months and years ahead, FAO, within the range of its expertise and resources,
will be able to provide technical support to its member countries, in the analysis of proposals during thenegotiations from the perspectives of agricultural development and food security.
                                                     
2 In the case of wheat, which received the bulk of the cereal export bonuses, the subsidy ranged from
US$36 to US$47 per tonne during 1990/91-93/94.G/AG/GEN/40
Page 4
Cereal Imports of LDCs and NFIDCs (1993/94  to 1999/00) - Information as of November 15, 1999
1993/94 1994/95 1995/96 1996/97 1997/98 1998/99 1999/00
Import bill ($ million)
LDCs 1375 2195 2272 1871 2357 1996 na
NFIDCs 3775 4559 6265 5857 5397 4617 na
LDCs+NFIDCs 5150 6754 8537 7728 7754 6613 na
  % change over 1993/94-94/95 -13.5 13.5 43.4 29.8 30.3 11.1 na
Total volume imported (1000 tons)
LDCs 11167 13310 12273 10753 14390 15380 13108
NFIDCs 25516 25995 26093 28038 30974 29370 31542
LDCs+NFIDCs 36683 39305 38366 38791 45364 44750 44650
  % change over 1993/94-94/95 -3.4 3.4 1.0 2.1 19.4 17.8 17.5
Food aid (1000 tons)
LDCs 3932 4326 3305 2553 2669 3157 na
  % of total imports 35.2 32.5 26.9 23.7 18.5 20.5 na
NFIDCs 1857 1325 641 495 622 616 na
  % of total imports 7.3 5.1 2.5 1.8 2.0 2.1 na
LDCs+NFIDCs 5789 5651 3946 3048 3291 3773 na
  % of total imports 15.8 14.4 10.3 7.9 7.3 8.4 na
Benefit from US  EEP ($ million)
L D C s 9 9 3 51000 n a
NFIDCs 355 88 21 0 0 0 na
LDCs+NFIDCs 454 123 22 0 0 0 na
  % change over 1993/94-94/95 57.4 -57.4 -92.4 -100.0 -100.0 -100.0 na
Per unit import cost ($/ton)
LDCs 123.1 164.9 185.1 174.0 163.8 129.8 na
NFIDCs 147.9 175.4 240.1 208.9 174.2 157.2 naLDCs+NFIDCs 140.4 171.8 222.5 199.2 170.9 147.8 na
  % change over 1993/94-94/95 -10.4 9.7 42.0 27.2 9.1 -5.7 na
Wheat export price
US no 2 hard winter ($/ton) 143 157 216 181 142 120 110
  % change over 1993/94-94/95 -4.7 4.7 44.0 20.7 -5.3 -20.0 -26.7
1993/94-94/95 1995/96-96/97 1997/98-98/99
Averages (LDCs+NFIDCs)
Import bill ($ m illion) 5952.0 8132.5 7183.5
Total volume imported (1000 tons) 37993.9 38578.5 45057.0
Food aid (1000 tons) 5719.8 3496.8 3532.0
Benefit from US EEP ($ million) 288.5 11.0 0.0
Per unit import cost ($/ton) 156.7 210.8 159.4
Wheat export price ($/ton) 150.0 198.5 131.0
% change over 1993/94-94/95
Import bill 0.0 36.6 20.7Total volume imported 0.0 1.5 18.6
Food aid 0.0 -38.9 -38.2
Benefit from US EEP 0.0 -96.2 -100.0
Per unit import cost 0.0 34.6 1.8
Wheat export price 0.0 32.3 -12.7
Source:  FAO
.Figures for 1998/99 are provisional and for 1999/00 are estimatesG/AG/GEN/40
Page 5
STATEMENT BY THE REPRESENTATIVE OF THE
INTERNATIONAL MONETARY FUND (IMF)
I am grateful to the Chairman for this opportunity  to speak to the Committee.  In previous years
we have made substantial statements and I certainly do not wish to cover ground with which theCommittee is already familiar.  I would, however, like to mention briefly the recent trends in world food
prices since last year, as well as new Fund resources to meet the needs of members.
Food prices have continued to weaken considerably since the meeting of the Committee last year.
The IMF’s index of food prices, measured in terms of U.S. dollars for October 1999, was more than
14 per cent below the level of one year ago.  The decline reflects the abundant supplies of cereals and
oilseeds.  Weather conditions in the major producing regions for these commodities have been generallyfavorable for three consecutive years.  Demand growth, particularly for use as livestock feed until very
recently, has been weaker than usual in a number of important markets.  As a result, in recent months the
U.S. dollar prices of wheat, rice, maize, soybean meal and soybean oil are at their lowest in 12 to 14
years, and the price of palm oil at its lowest in 6 years.  Favorable supply conditions have also led to
abundant supplies of sugar and the price of sugar (outside the controlled markets of the EuropeanCommunity and the United States) has fallen to its lowest level in 12 years.  By contrast, there has been
some turnaround in 1999 in meat prices from the low levels recorded in 1998.  But overall, the import bill
for food items incurred by net food importing countries is likely to be particularly low this year.
However, for those net food importers that are also substantial net oil importers, conditions are likely to
be less favorable than in 1998 because of the large increases in oil prices.  In addition, the prices of manyof the nonfuel primary commodities exported by these countries either have decreased further or
increased by only small amounts.
Since our last statement, the Fund’s potential ability to help its members has been improved.
Following extensive discussions on financing of the Heavily Indebted Poor Country Initiative (HIPC) andEnhanced Structural Adjustment Facility (ESAF) initiatives, agreement has been reached on the main
elements of a financing package that will enable the IMF to make its contribution to the HIPC Initiative
and to continue concessional lending for sustainable growth and poverty reduction in its low income
member countries under a new facility to replace the ESAF, called the Poverty Reduction and Growth
Facility.
The main elements of the financing package of the HIPC-ESAF initiatives—amounting to SDR
3.9 billion on an “as needed” basis (US$3.5 billion in end-1998 net present value terms)—comprise
contributions by member countries and by the IMF itself.  The financing of the cost of the HIPC Initiative
to the IMF is projected to account for about two-thirds of the IMF’s total financing requirement.  We
believe that these initiatives expand the scope of support the IMF can offer its members.  So we can
reiterate what we have said in previous years, that the Fund considers it has sufficient liquidity to meetany additional need that may arise from higher food prices.
Naturally, Mr. Chairman we are acutely aware of the problems faced by net food importers (not
necessarily related to the price of food imports).  At the present time, 21 net food importing and LDCs are
receiving financial support from the Fund to support their adjustment programs or to deal with emergencysituations.  If requested, and if there is a balance of payments need, the Fund continues to stand ready to
help.  It is a relief to note developments in food prices over the last year (as I have just described), but
allow me to reassure the Committee that the Fund has the resources under existing facilities and has
shown its willingness to use these resources in the past , to meet the balance of payments needs of net food
importers.G/AG/GEN/40
Page 6
STATEMENT BY THE REPRESENTATIVE OF THE OECD
The OECD is not currently engaged in any work  specifically on the Least Developed Countries
and the Net Food Importing countries.  However, three activities currently underway are relevant:  (i)
Negotiations on an export credit understanding covering agricultural products;  (ii) OECD Member
countries trade related programme of work 1999-2000;   and (iii) Non-OECD Member countries trade
related programme of work 1999-2000.
1. Negotiations on an export credit understanding covering agricultural products
In accordance with a commitment made in the c ontext of the Uruguay Round, the Participants to
the Export Credit Arrangement (the Arrangemen t) began negotiations in 1997 on complementary
guidelines to cover officially supported export credits for agricultural products (currently excluded from
the Export Credit Arrangement).
Negotiations have proved slow, although an agreement on market-based repayment terms (180
days maximum credit) and risk-based premium fees are supported by all but one Participant.  The UnitedStates, whilst in favour  of an Understanding, has different view s on repayment terms (wanting longer than
others for certain products and markets) and constraining legislation on premium fees.  However, it has
recently signalled flexibility in this regard, and has made proposals which represent a significant step in
the direction of the other Participants.
In the Communiqué from the OECD Council Meeting at Ministerial Level held on 26 and 27 May
1999 (PAC/COM/NEWS(99) 52), OECD Ministers:
".....regretted that the Participants to the Export Credit Arrangement had not yet reached agreement
on an Understanding covering agriculture as mandated in the Uruguay Round. They urged, once
more, the Participants to intensify their efforts to conclude this Understanding promptly, if possible
by the Seattle Conference, and to report back at the next Ministerial Council Meeting."
Against this background, efforts have been redoubled to try to reach an agreement, and the
Participants have met twice since the Ministerial, including once in Special Session.  The Participants
consider that these negotiations represent a commitm ent made in the Uruguay Round; therefore, there is
the strong desire to resolve this issue in the forum of the Participants rather  than for the issue to be
deferred to the Millenium Round.
With this in mind, the Participants are now co nsidering a Chairman’s Proposal on the major
issues of repayment terms, premium fees and implementation, with a deadline for responses of the end of
the year.  There will be another Special Session in early 2000 dedicated to the Agriculture issue and aplenary Meeting in April with a view to concluding (if possible) the negotiations before the OECD
Ministerial in May.
2. OECD Member countries trade related programme of work 1999-2000
Among the shared goals adopted by OECD Agriculture Ministers in March 1998 is the further
integration of the agro-food sector into the multilateral trading system.  In pursuit of this goal, Ministers
mandated the OECD to address ongoing and emerging agricultural trade policy issues and to provideG/AG/GEN/40
Page 7
analytical support to the process of agricultural trade liberalisation.  In response, the Committee for
Agriculture programme incorporates specific agricultural trade policy issues that are of major interest to
Member countries of the OECD, but whic h may also concern non-OECD countries.
More specifically, the agricultural trade policy work programme consists of two core elements.
The first element deals with the evaluation and strengthening trade liberalisation and the second oneconsiders issues arising at the interface of trade and domestic policy.
The first element aims to assist policy makers and negotiators as they enter the “Millennium
Round” by:
• assessing in-depth the effects of the URAA on trade and protection levels.  The objective is to provide
a stocktaking of the three pillars of the Urug uay Round Agreement on Agriculture (URAA), -market
access, export subsidies and domestic support.  Both primary and processed products will be covered.A preliminary report on market access was discussed at the join session of the Working Party on
Agricultural Policies and Markets of the Committee for Agriculture (APM) and the Joint Working
Party of the Committee for Agriculture and the Trade Committee (JWP) in June 1999.  The paper
deals with market access aspects of the implementation of the Agreement with particular emphasis on
the evaluation of tariff quotas and their administrative methods.  It also presents a preliminaryanalysis of the tariff structure in the post-Uruguay Round era.  First drafts of the analysis on domestic
support and export subsidies will be presented to the APM/JWP meeting to be held on
13-16 March 2000.
• identifying possible impacts on trade and markets of different scenarios for further trade
liberalisation.  The OECD's commodity projection model, Aglink, will be modified and used to
evaluate in a forward looking manner various options for further trade liberalisation regarding the
market access and export subsidy pillars of the URAA.  The development of a database supporting
the work on market access is in the final phase and should be operational by early 2000.  First
analytical results will become available in March (export subsidies) and September (market access)
2000.
• analysing the effect of trade policy instruments such as export credits or export taxes and restrictions.
The work on export credits aims at evaluating the effects of export credits on agricultural commodity
markets by using survey responses and interest rate data to compute the effects of export credits on
the present value importers pay.  This will give insight in the degree to which export credits might
serve as an alternative to export subsidies.  The basic information needed to do the analysis is
extracted through questionnaires asking details of export credit programmes by OECD Member
countries.  A first draft of the analysis will be discussed by the APM/JWP meeting in March 2000.
Under the second major element of the OECD Member countries agricultural trade policy work
programme the trade implications of different agricultural support measures, including
agri-environmental policies, will be evaluated.  The implications of trade liberalisation for food security
in OECD and selected non-OECD countries will also be examined.  Work on multifunctionality willexplore relationships between policies to ensure an adequate supply of agriculture’s non-food outputs and
international trade commitments.  Moreover trade repercussions of domestic policies in the area of food
safety and quality (biotechnology and animal welfare), and competition policy (geographical labels and
state trading) will be explored.  The particular focus is on clarifying the characteristics of policies that are
minimally or non-trade distorting as required under the URAA.  Reports multifunctionality, state trading,
food safety and geographical labels will be presented to the March 2000 APM/JWP meeting.G/AG/GEN/40
Page 8
3. Non-OECD Member countries trade related programme of work 1999-2000
A process of analysis and discussion on a range of agricultural trade policy issues of importance
to Emerging and Transition Economies has begun through the OECD Forum on Agricultural Policies in
Non-Member Countries.  The objective is to consider the policy lessons that can be learned from
implementation of the URAA and thus to identify key interests in the traditional areas of market access,export competition and domestic support that may arise in the forthcoming Millennium Round.  During
the first year of work, the Secretariat's analytical work and policy dialogue will focus on those issues that
can be considered under the “three pillars” of the URAA.  Other trade issues, such as the rules governing
sanitary and phyto-sanitary regulations, are deferred for consideration next year, when the topics to be
discussed in the new round should be clearer.  The Secretariat's analytical work is being informed inter
alia by responses to questionnaires which have been sent to a group of about a dozen emerging and
transition economies with a heterogeneous trade profile.G/AG/GEN/40
Page 9
STATEMENT BY THE REPRESENTATIVE
OF THE WORLD BANK
World Bank Support for  the Least Developed
and Net Food Importing Countries
The World Bank is very active in helping the least developed and net food importing countries in
at least three ways that are relevant to the deliberations of the Committee. A first is through improvements
in agricultural production technology. A second is th rough its lending in support of agricultural supply
response and policy reform in developing countries. A third is through analytical support for developing
countries gearing up to participate in the negotiations on agriculture scheduled under the built-in agenda
for the Seattle Ministerial.
Agricultural production technology
The World Bank is a key supporter of the Consultative Group on International Agricultural
Research (CGIAR), which works through a network of 16 international agricultural research centers tomobilize the best agricultural science on behalf of the world's poor and hungry. Fifty-eight developing
and developed countries, private foundations, and regional and international organizations, including the
Bank, collectively support the CGIAR. In 1998 CGIAR contributions totaled $340 million, up from the
previous year's $320 million. The CGIAR leverages the Bank's support - $50.1 million in 1998 - almost
eightfold. The CGIAR's research is critical to th e Bank's commitment to environmentally and socially
sustainable development and its renewed focus on rural development.  Some 300 CGIAR research
projects are increasing agricultural productivity, strengthening national agricultural research systems,
protecting the environment, improving policies, and preserving biodiversity. The third independent
System Review, completed in 1998, concluded that inve stment in the CGIAR has been the most effective
use of official development assistance.
The World Bank also assists least developed and net food importing countries to improve their
agricultural technology through its projects and technical assistance work. This work is typically a
component of a broader project designed to help the country improve its agricultural supply response.
Agricultural Supply Response and Production Technology
The emphasis placed on rural sector lending has increased in recent years, in large part because of
recognition that approximately 75 per cent of poor people in developing countries live in rural areas.
Therefore,  the Bank's objective of poverty reduction cannot be met unless widely shared growth, food
security, and sustainable natural resources management are achieved in these areas. The Bank’s rural
sector work is undertaken within a broad framework to ensure consistency with overall developmentgoals, but includes projects in a wide range of ar eas, ranging from sustainable land and crop management,
livestock, agricultural research and extension, irrigation, river basin management, natural resources
management, and rural finance to cross-cutting areas of food security, gender in development, and
community-based rural development. In addition, some projects provide important infrastructure support,
such as upgrading of rural roads.
A summary outline of 45 World Bank lending projects designed to support the agricultural
sectors of  26 Least Developed Countries is given in Appendix Table 1. These projects had a total value
of almost $2.2 billion, of which $1.4 billion was lent from the World Bank itself.  As is evident from the
summary, these projects covered a wide range of rural development problems—from improving ruralG/AG/GEN/40
Page 10
transport infrastructure in Bangladesh, through strengthening research and extension systems in Nepal, to
institutional strengthening in Zambia.
A similar summary outline for the Net Food Importing Countries is given in Appendix Table 2.
The 28 projects supporting the rural sectors of these countries span 10 countries. The total value of these
projects is $3.3 billion, of which $1.7 billion was provided by the World Bank. As in the case of the least
developed countries, the projects span a wide range of objectives, including land management andinfrastructure; research and extension; and the development of irrigation infrastructure.
Analytical Support for the WTO Negotiations
Because of their capacity constraints, the least developed and net food importing countries have a
particularly acute need for support to help them  determine their positions in the forthcoming WTO
negotiations on agriculture. A major project to support developing countries in these negotiations hasbeen launched under the title “Agriculture and the WTO 2000 Negotiations: Economic Analyses of Issues
and Options for Developing Countries”. In addition, an important conference focussing on the Latin
America region was held in late 1998 under joint FAO/World Bank sponsorship. A World Bank paper
will also be presented to the UNCTAD X meeting in Bangkok.
Agriculture and the WTO 2000 Negotiations
This project aims to advance the process a nd implementation of international trade and
agricultural policy reforms affecting agriculture in developing countries and strengthen the capacity of
these countries to participate in the next WTO round of multilateral trade negotiations.  It seeks to achieve
these objectives through an integrated program of research, policy analyses/advice, and capacity buildingin developing countries.  The project provides a more detailed perspective on agricultural issues than the
related WTO 2000 project covering the entire agenda for the negotiations.
The first phase of the project involves research an d policy analyses required in the lead-up to the
next WTO negotiations in agriculture.  In this phase, research focused on issues of critical importance to
developing countries has been carried out. The 30 pape rs commissioned in this phase have evaluated the
current status of trade and agricultural policies, estim ated remaining trade barriers/distortions, identified
specific policy options in the context of the next round, and evaluated the costs and benefits of  policy
options. The overview research results were presented to a global policy audience during a conference at
WTO in Geneva in October, and selected thematic papers will be presented in regional seminars in
developing countries around early-2000.
The second phase of the project involves the preparation of regional and country-specific papers
by experts from developing countries.  These papers will evaluate current policies, analyze specific
negotiating objectives/options, and assess their costs and benefits at the region and/or country level.  The
outputs from this phase will be used to directly assist policy makers in developing countries to develop
their negotiating objectives through a series of policy workshops and training activities targeting senior
policy makers in developing countries during the year 2000.
The third phase of the project involves capacity building activities through a series of regional
workshops for senior policy makers from developing countries, complemented by training activities
sponsored by the Bank (EDI) and donor partners. This phase will commence once the negotiations have
begun in earnest.  These activities will draw on the thematic research outputs and results generated from
the regional and country-specific analyses.  A practical handbook including sets of databases on
agricultural protection and simple analytical and software tools for negotiators will be prepared.  TheG/AG/GEN/40
Page 11
results  will also be used in the Bank’s rural sector policy and strategy work in developing countries, and
in country programs of the Bank and donor partners.
FAO/World Bank Seminar for Lati n America and Caribbean Countries
From  23-26 November 1998 a workshop on Furtheri ng Multilateral Agricultural Negotiations
was held in Santiago under the auspices of the WB, and FAO, and in collaboration with IICA. The
purpose was to stimulate wide ranging discussions on agricultural trade matters concerning the Region in
the context of the forthcoming WTO negotiations. The seminar was attended by nearly 40 representatives
from 20 countries, plus about another 20 representatives from various international organizations,
universities, and sponsoring agencies.G/AG/GEN/40
Page 12Table 1. Listing of World Bank agricultural projects in least developed countries, 1997-1999
Proj. Name *Country FY Proj. Cost $m Loan $m Text of Comments
2ND RURAL RDS & MRKT BANGLADESH 1997 192.4 133 Project will improve feeder roads, rural markets, river jetties and
construct rural structures (bridges  & culverts) needed to complete
rural roads built under the food-for-work programs. Importantproject elements are: providing low-cost rural transport,
SILK DEV  PILOT  PROJ. BANGLADESH 1998 15 11.4 Likely to include (i) facilities and equipment for silkworm
breeding and distribution; (ii) sericulture training facilities; (iii)
expansion of ngo extension and credit programs for sericulturists;(iv) improved sericulture re search; (v) pilot development
ROAD REH. MAINT. III BANGLADESH 1999 528.5 273 A long-term strategy and program for improvement and
maintenance of feeder roads type "a" will be prepared and the
first phase of this program will be implemented under the project;
construction of nalka-bonpara road; widening and rehabilitationof dhaka-
RIVER BANK PROT SUP BANGLADESH 1999 45 45 The project will cover: a. Rehabilitation of flood control,
drainage, irrigation and erosion facilities at some 40 sites all over
the country; b. Remedial measures for protection works at
sirajganj site which were damaged during 1998 flood; c. Shortfalldue to depreciation of US dollar against SDR since creditapproval, and d. Preparation of a longer-term plan for river bankprotection and designing a up project.
ROAD REHAB MAIN II S BANGLADESH 1999 100.9 80 Facilitate rehabilitation of the road network which has been
damaged by the devastating 1998 flood.
RURAL ROADS MKT II S BANGLADESH 1999 25.6 20 To finance the cost of repair and reconstruction of physical
facilities and replacement of equipment damaged by the 1998
floods.
COASTAL EMBANKMENT S BANGLADESH 1999 16.5 16.5 Supplemental credit to the coastal embankment project
BORGOU PILOT RSP BENIN 1998 5 4 Borgou pilot rural support program (lil)G/AG/GEN/40
Page 13Proj. Name *Country FY Proj. Cost $m Loan $m Text of Comments
AG SERVICES II BURKINA
FASO1998 50 41.3 Follow up to ag. Services i and ag. Research. Will also include
pilot programs (promotion of rural institutions and small rural
institutions and restructuring of the ministry of agriculture andanimal resources. Note: that the project was signed on 12/15/97.
PRIVATE IRRIGATION BURKINA
FASO1999 5.2 5.2 The project would support the government's national program for
irrigation development by promoting the development of
privately built funded and managed small-and medium scale
irrigation schemes and complementary small-scale commercialactivities.
AGRI.PRODUCT IMP. CAMBODIA 1997 35.1 27 Capacity building program with ministry of agriculture, with
development components for farmer training, agricultural field
trials and demonstration ,seed production, integrated pest
management, animal health and production, fisheriesmanagement, small-scale
AG SERVICES PILOT COMOROS 1997 2.8 1.6 To assist govt in implementing agr strategy through (a)
development of nat. Research and ext. Programs; (b) support to
private sector development in agriculture; and (c) strengthening
government's capacity for sector planning, monitoring andcoordination.
AG. RESEARC & TRAIN ETHIOPIA 1998 90.6 60 Project would consolidate, strengthen, and expand the Ethiopian
agri- cultural research system with a focus on regional research
stations, enhanced human resource capacity and participatoryapproach in research planning and prioritization.
PVRTY ALL.&MUNIC.DEV GAMBIA 1999 10 10 The project is a follow-up to the public works and capacity
building which will close in June, 1998 and concerns essentially
two sectors: (i) the urban sector, in its municipal management
aspect; and (ii) the labor sector more narrowly, its civil andpublic
VILLAGE SUPPORT PROG GUINEA 1999 20 15 Poverty alleviation at the community level, decentralization at the
crd level; support in basic rural infrastructure and maintenance.
VILLAGE COMUNTY SPRT GUINEA 1999 22 22 Poverty alleviation at the community level, decentralization at the
crd level; support in basic rural infrastructure and maintenance.G/AG/GEN/40
Page 14Proj. Name *Country FY Proj. Cost $m Loan $m Text of Comments
FOREST & PARKS TA HAITI 1997 27.5 21.5 To stem environmental degradation in three national reserves, by
improving living standards of rural population living in park
buffer areas, by providing agroforestry technology services,institutional development and a pilot buffer zone productiveactivities
LA-PROVIN. INFRAST. LAO, P.D.R. 1999 27.8 27.8 The project aims to improve the core rural transport network of
Laos as a means to alleviate rural poverty through the provision
of greater access to markets and other key social infrastructure.
LA DIST UPLAND DEV LAO, P.D.R. 1999 2.2 2 Develop local government's capacity to implement poverty
reduction programs in the context of bio-diversity conservation.
LA DIST UPLAND DEV LAO, P.D.R. 1999 2.2 2 Develop local government's capacity to implement poverty
reduction programs in the context of bio-diversity conservation.
AG POL & CAP BLDG LESOTHO 1998 14.3 6.8 1) support strategic reforms in policy reforms in the sector; (2)
support capacity building through MOA inst. Restructuring,
delivery of core services.
RURAL WATER SEC.PILO MADAGASCAR 1998 22.3 17.3 The project would improve local capacity to expand and maintain
rural water supply facilities through: (i) providing a policy &legal frame-work for the sector, (ii) reorganizing the sector andbuilding institutional capacity, (iii) carrying out benefic
IRRIG PROMOTION MALI 1997 4.7 4.2 Provision of technical and institutional support to private
investment in irrigated agriculture.
RURAL INFRASTRUCTURE MALI 1999 45 45 Project will suppor t (a) construction/rehab ilitation of rural roads;
(b) a rural water supply program; (c) development of bottom
lands; and (d) development of collective infrastructure for theprocessing and marketing of agricultural products. Joint task
RAINFED NAT RES MGT MAURITANIA 1997 23.5 18 The project would aim at the management of their resource base
by rural communities by (a) financing protective and productive
village- level investments, (b) institutional capacities building
through staffing and equipment of technical services and (c) c
INTEG DEV PROG FOR I MAURITANIA 1999 78 18 Development of private irrigation plus selected rehabilitation of
publicly-constructed irrigation schemes. Project preparation has
started as part of completion of the Senegal river right bank water
master plan.G/AG/GEN/40
Page 15Proj. Name *Country FY Proj. Cost $m Loan $m Text of Comments
AGRIC SECTOR PEP MOZAMBIQUE 1999 202 30 Support to the national agricultural investment program. The
program will focus on (i) agriculture research and extension (ii)
pilot land demarcation, adjudication and cadastre&(iii)institutional reform and modernization of the min. Of agric.& fisheries and the development of its human resources andmanagement system. Program would also include priorityreforms in the sector policy environment.
IRRIG SECTOR DEVT NEPAL 1998 103 79.8 Finance construct. & rehab.of small/medium-surface & new
groundwater schemes to be managed by farmer irrig.assns., &rehab of existing farmer-managed schemes; and institutionaldevt. Support for dept of irrigation, dept. Of agriculture, dept. Ofhydrology
AGRI RES & EXTENSION NEPAL 1998 45 24.3 Institutional development -- improve the management and
capacity of agric. research & extens. Service institutions to (a)develop location-specific agric. Technology on the basis of closeconsultation with farmers;(b)improve technology delivery systemby (
RURAL INFRA LIL NEPAL 1999 5.8 5 The project will aim at strengthening the institutional capacity of
local government entities in planning and managing district roadsto improve district roads in se lected districts using a cost-
effective and sustainable technology.
LIL AGRICULTURE RWANDA 1999 5 5 This lil will test different approaches of promoting local rural
marketing systems and encouraging increased participation by theprivate sector, including farmer cooperatives.
NAT EXT PROJ PH.II TANZANIA 1997 34.4 31.1 Support reorganization and strengthening of agricultural
extension with enhanced role for farmers and users, improving
linkage between research and extension and establishing amonitoring and evaluation system.
RIVER BASIN MGM.SMAL TANZANIA 1997 30.8 26.3 Project will focus on water management problems in river basins
and improvement of small holder irrigation.
LAKE VICTORIA ENV. TANZANIA 1997 10.1 10.1 Establish a regional program for rehabilitation and maintenance
of the lake Victoria ecosystem (the lake and its catchment),including fisheries management, fisheries research and extension,water hyacinth control, water pollution control and monitoring,anG/AG/GEN/40
Page 16Proj. Name *Country FY Proj. Cost $m Loan $m Text of Comments
AGRIC RESEARCH TANZANIA 1998 46.1 21.8 Research program; strengthen zonal research; emphasize client
orienta -tion; develop human resources and training and
strengthen monitoring and evaluation.
NAT.AGRICULTURE SERV TOGO 1998 52 26.2 Rehabilitation of major agricultural support services and sectoral
management capacity of ministry of rural development, includingagricultural research and pilot rural credit
LAKE VICTORIA ENV. UGANDA 1997 12.1 12.1 Establish a regional program for rehabilitation and maintenance
of the lake Victoria ecosystem (the lake and its catchment),including fisheries management, fisheries research and extension,water hyacinth control, water pollution control and monitoring,an
ROAD SECT/INST.SUPP UGANDA 1998 33 30 Credit for institutional and engineering support to the road sector.
Institutional and capacity building of the road sub-sector.Feasibility studies (economic, engineering, environment) forselected roads.
ICB-PAMSU UGANDA 1999 14.4 12.4 Assistance to government to develop institutional capacity to
conserve and manage protected areas and their bio-diversity andto develop environmental sustainable tourism with benefits tolocal and national economies.
AGRIC.RES & TRNG. II UGANDA 1999 40 40 (a) institutional strengthening Naro's capacity to manage the
national agricultural research program, improve participation ofstakeholders, & coordination of donors financing agriculturalresearch; and research & graduate training capacity of theagriculture
AGRIC.RES & TRNG. II UGANDA 1999 26 26 (a) institutional strengthening Naro's capacity to manage the
national agricultural research program, improve participation ofstakeholders, & coordination of donors financing agriculturalresearch; and research & graduate training capacity of theagriculture faculties of Makerere university;(b)technologydevelopment and adoption; and (c) Naro's technical backstoppingand in-service training for the decentralized extension service.
FLOOD EMERGENCY YEMEN 1997 35 30 Rehabilitation of flood damage in the agricultural and roads &
bridges sectors, in addition to provision of equipment for thewater supply sector.G/AG/GEN/40
Page 17Proj. Name *Country FY Proj. Cost $m Loan $m Text of Comments
S.GOV AGRI PRIVATIZA YEMEN 1998 45.8 24.7 Project will raise income in poor rural areas of Yemen; southern
governorates through land and water development, agricultural
services and support to non-farm rural enterprises.
SEEDS & AG. SERVICES YEMEN 1998 14.3 12.5 Improvement of seed and plant materials and input supply,
institutional support through improved regulatory framework,private sector development, training and technical assistance.
ENVIRONMENT ZAMBIA 1997 20.8 12.8 The program will assist in coordination of donor project funding,
provide investment capital and tech. asst. in env. and nat.resource use problems in Zambia. Primary focus consists ofinstitutional strengthening.
* In English only.G/AG/GEN/40
Page 18Table 2. Listing of World Bank agricultural projects in net food importing developing countries, 1997-1999
Project Name *Country FY Proj. Cost
$mLoan $m Text of Comments
RURAL LAND (PNGTER) COTE D'IVOIRE 1997 60.8 41 On the basis of land use and land feature maps and a
community-based planning process, the project would
support community organization land management andrural infrastructure development
AGRIC. SVCS. II COTE D'IVOIRE 1999 50 50 (1) follow-up to agric. Services i; (2) support for
restructuring of ag. Research support; and (3) support
rural communitarian radio implementation.
EAST DELTA AG.SERV. EGYPT 1998 91.4 15 Project provides agricultural support services, on-farm
infra structure, drinking water, financial services &project management to facilitate settlement and increased
agriculture production on 130,000 feddans of recently
reclaimed land in the east delta.
SOHAG RURAL DEV. EGYPT 1999 50 25 Rural development and poverty reduction.
P. S. REHAB. III EGYPT 1999 253 120 Rehabilitation and repair of about 77 pumping stations,
provision of spare parts and o & m equipment, upgrading
of management information system, and institutionalsupport.
PRVT SECT.& AG. DEV. EGYPT 1999 600 300 Financial support to the private sector in the form of a
credit line to finance agricultural infrastructure, on- farm
technology improvements, agro-industry development,
land improvement and development and institutiondevelopment.
RURAL LAND MGMT HONDURAS 1997 41.8 34 Institutional strengthening to complement ag sac reforms
in following areas: (i) land administration; (ii) natural
resources management, (iii) research and extension
services and (iv) bio-diversity conservation.
NARP II KENYA 1997 60 39.7 The project would strengthen ag. research and extension
capability in Kenya through support to key nat. crop,
livestock & production factor research centers and
programs. Incl. assistance for network of regionalresearch ctrs to strengthen res/ext linkages. IdG/AG/GEN/40
Page 19Project Name *Country FY Proj. Cost
$mLoan $m Text of Comments
LAKE VICTORIA ENV. KENYA 1997 12.8 12.8 Establish a regional program for rehabilitation and
maintenance of the lake Victoria ecosystem(the lake andits catchment), including fishe-ries management, fisheriesresearch and extension, water Hyacinthe control, waterpollution control and monitoring a
WATER RESOURCE MGMT. MOROCCO 1998 25 20 Thro ugh policy reforms, capacity building and
investment actions, the project would lay the foundationfor an integrated and sustainable management of waterresources in morocco.
RURAL W.S.& SANITATN MOROCCO 1998 57 10 So provide for reliable potable water supply for the rural
poor and sanitation facilities where needed.
LAKHDAR WATERSHED MG MOROCCO 1999 5.8 4 Pilot participatory natural resource management project
providing infrastructure, agricultural services, andinstitution building.
PILOT FISHERIES DEV. MOROCCO 1999 23 5 Objectives are to enhance sector value added and
promote export competitiveness through pilot activities toimprove fish handling & marketing, strengthen quality
management, improve information system, support sector
planning, and promote profession
PILOT FISHERIES DEV. MOROCCO 1999 16 5 Objectives are to enhance sector value added and
promote export competitiveness through pilot activities toimprove fish handling & marketing, strengthen quality
management, improve information system, support sector
planning, and promote professional associations.
PVT SECTOR GROUND WA PAKISTAN 1997 104.8 56 Increase agricultural production through improved and
timely availability of supplementary irrigation; controlthe groundwater levels and soil salinity; replace
inefficient scarp tube wells with more efficient private
tube wells; and avoid environmental hazards
NATIONAL DRAINAGE PR PAKISTAN 1998 785 285 Project objectives: restore sustainability of
environmentally-sound irrigated agriculture through: (a)minimization of drainable surplus; and (b) facilitating
evacuation of drainable surplus. Project components: (a)
drainage research and sector planning;G/AG/GEN/40
Page 20Project Name *Country FY Proj. Cost
$mLoan $m Text of Comments
AG. SECTOR INV. CRED PAKISTAN 1999 201.8 110 As a follow up to the agriculture sector study
recommendations, the objectives are to (a) improve the
efficiency of pricing, marketing and distribution of major
crops and inputs; (b) examine and rationalize the role ofthe public sector.
ON FARM WTR MGMT IV PAKISTAN 1999 185 125 The proposed project would be a program type operation
concentrating on rehabilitating & improving the irrig
infras & transferring the irrig mgmt to the farmers' org at
the distributary minor level. The components wouldconsist of a social mobilization program
IRRIG. REHAB PERU 1997 160 85 Rehabilitate irrigation schemes, establish effective cost
recovery mechanisms and maintenance; and introduce
privatization of operation.
SIERRA NATURAL RES. PERU 1997 93.2 51 Small scale rural investment for poor people in the sierra.
SUST.PART.ENGY.MGMT. SENEGAL 1997 19.3 5.2 The project will (i) improve the management of forest-
based energy resources; (ii) improve the end-use of
household fuels; and (iii) reduce the loss of carbonsequestration capacity
AGR SEC ADJ CREDIT SENEGAL 1997 1.8 1.8 This is a supplemental credit for ida reflows to credit
2738 approved on a non-objection basis on 11/14/96.
AG.EXPORT PROMOTION SENEGAL 1998 8 8 The project's main objectives are to help expand and
diversify the ag. export base of Senegal through provisionof export promotion and diversification support;strenghtening of producers' and exporters' organizations;support to project management; and upg
AGR.SRCVES&PROD.ORGS SENEGAL 1999 47.1 27.4 Support national research, extension services, producers'
organizations and restructuring of the ministries ofagriculture and livestock.
MAHAWELI RESTRUCTURI SRI LANKA 1998 74.2 57 Institutional restructuring and rehabilitation and
improvement of irrigation and drainage facilities inmahaweli system h.
NATURAL RESOURCE MGM TUNISIA 1997 51.3 26.5 To promote sustainable land resource management and
planning and sector-wide investments. Components
would be: (i)nat rsc mgmt operats in three agro-
ecological zones thru' particpatory development planswith community and subsectoral investment in soils/waG/AG/GEN/40
Page 21Project Name *Country FY Proj. Cost
$mLoan $m Text of Comments
ASIL 2 TUNISIA 1998 69.3 42 The project will support line items in the moa's 1998 and
1999 budget in support of water resources management,and agricultural extension, research and training.
WATER SECTOR LOAN TUNISIA 1999 160 100 The project would comprise an integrated investment and
rehabilitation program with the objective to enable furthermobilization of water resources to fill the demand,without harming the environment and by encouraging tothe extent possible full cost recovery.
     * In English only.
__________