RESTRICTEDWORLD TRADE
ORGANIZATIONWT/BFA/58
6 May 2002
(02-2553)
Committee on Budget, Finance and Administration
REPORT OF THE MEETING HELD ON 15 APRIL 2002
1. The WTO Committee on Budget, Finance and Administration met on 15 April 2002 under the
chairmanship of Mr. Neil McMillan of the United Kingdom.  The terms of reference and compositionof the Committee are set out in document WT/L/44/Rev.1.  The agenda contained in document
WTO/AIR/1766 was adopted with the following additional points: (i) results-based management and
parking, (ii) “World Trade Review” publication, and (iii) possibility of putting names and photos of
delegates on-line.
I. ADMINISTRATIVE UP-DATES AND PROGRESS REPORTS AS AT
31 MARCH 2002
C
ASH SITUATION AND STATEMENT OF OUTSTANDING CONTRIBUTIONS (CRP(02)03 AND
WTO/BFA/SPEC/72)
INSTALMENT PAYMENTS FOR COUNTRIES IN ARREARS (CONTRIBUTIONS FROM 1987 AND EARLIER
YEARS ) (CRP(02)04)
CONTRIBUTIONS OF OBSERVER COUNTRIES TOWARDS THE COST OF SERVICES PROVIDED BY THE
SECRETARIAT (CRP(02)05)
HUMAN RESOURCES (CRP(02)06)
STATUS OF EXTRA -BUDGETARY CONTRIBUTIONS (CRP(02)07)
2. A member of the Secretariat presented the cash situation, the statement of outstanding
contributions as at 31 March 2002, the progress report of instalments for countries in arrears, the
contributions of Observer countries towards the cost of services provided by the Secretariat.  As of
31 March 2002, the total contributions received from Members amounted to CHF 70.1 million.  Since
the date of the report, the following Member countries had made payments: (i) Bahrain, (ii) Cyprus,
(iii) Ecuador, and (iv) Kenya.  With regard to th e contributions received from the Observers to the
WTO towards the cost of services provided by the Secretariat, it stood at CHF 301,309.  Since the
date of the report, the following Observers countries had made payments: (i) Saudi Arabia, (ii)
Ukraine, and (iii) Viet Nam.  The Working Capital Fund stood at CHF 8.6 million as at
31March 2002.  There were three Members in Category I of the Administrative Measures, and four
each in Category II and III, while in Category IV, there were 18 as at 31 March 2002.
3. Another member of the Secretariat presen ted a progress report (CRP(02)06) on human
resources.  The advertisement of the new posts funded in the 2002 regular budget is in the process of
being completed.  A fast-track recruitment campaign had been launched to fill 15 posts to assist in
technical cooperation and capacity-building work pursuant to the Doha Development Agenda.  With
regard to the performance award system, a study will be undertaken shortly of the problemsWT/BFA/58
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encountered during the first year “dry-run”.  The system would become fully operational on
1 January 2003.
4. The annual report for 2000 of the Pension Plan had been approved and submitted to the
General Council and participants for information.  The Management Board agreed to the
establishment of an Investment Committee to advise the Board on the Plan’s investment strategy andmonitoring the performance of the fund managers.
5. A member of the Secretary presented the docume nt CRP(02)07.  He drew the attention of the
Members to the Doha Development Agenda Global Trust Fund (DDAGTF), which received transfers
from other trust funds amounting to CHF 5 million.  However, not all trust funds were transferred into
the DDAGTF.  Since 31 Ma rch 2002, one Member had made a contribution of CHF 1.5 million,
which brought the total amount of the DDAGTF to over CHF 6.7 million.  This fell short of the
threshold foreseen for the end of March whereby 75 per cent of the CHF 15 million target should havebeen in hand.  The next threshold date is 30 June 2002, when 100 per cent of the target should have
been received.  The Programme Support Fund of the Other Extra-budgetary Funds represented the
overheads costs of the trust funds, which would fund new staff to be recruited for the work pursuant to
the Doha Development Agenda.
6. At the request of a Member, the Secretariat will provide regularly in the future a table
presenting the pledges made during the Pledging Conference and their conversion into actual
contributions.  The Secretariat also explained that a large part of the expenditure under the
Programme Support Fund related to a new programme designed to upgrade the training skills of
approximately 150 WTO staff members/trainers.
7. The Chairman drew the attention of the Members to a meeting of the Committee on Trade and
Development on 25 April 2002 whereby the progress made in respect of the contributions received for
the DDAGTF would be reviewed.
II. ASSESSMENT OF ADDITIONAL CONTRI BUTION TO THE 2002 BUDGET AND
ADVANCE TO THE WORKING CAPITAL FUND: ACCESSION OF THE SEPARATE
CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU TO THE WTO
8. The Chairman introduced document WT/BFA/W/66 concerning the assessment of
contribution on Chinese Taipei on its accession to the WTO.
9. Consequent to the accession to the WTO of the Separate Customs Territory of Taiwan,
Penghu, Kinmen and Matsu on 1 January 2002 (document WT/BFA/W/66), the Committee decided to
make the following recommendation to the General Council: the Committee recommends to the
General Council that a pro rata contribution to the 2002 budget amounting to CHF 2,830,632 be
assessed on this Government.  This assessment, calculated as from 1 January 2002, is based on
an annual contribution of 1.992 per cent, taking into account the international trade figures
(imports plus exports in goods, services and intellectual property rights) of the Separate
Customs Territory of Taiwan, Penghu, Kinmen and Matsu for the years 1997-1999.
Furthermore, on the basis of the level of the Working Capital Fund of CHF 8,606,886 the
Committee recommends to the General Council to assess an amount of CHF 171,449 on the
Government of the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu as an
advance to the Fund .
10. The Secretariat explained that assessed contributions of new Members during the year would
be credited to the Surplus Account of that year .  One Member suggested that any such surplus be
applied to the financing of the total budget of the succeeding year so that the assessments of the
Members would be reduced accordingly.  The Secretariat took note of the suggestion and indicatedWT/BFA/58
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that, according to the Financial Regulation 26.3, proposals for the use of any such overall surplus are
to be presented to the Committee by the Director-General.
III. STAFFING OF THE WTO SECRETARIAT
11. A member of the Secretariat presented the document WT/BFA/W/68 and explained the
various stages of a recruitment process of the WT O from the advertising of vacancies, the application
procedure to the selection process.  He indicated that where two or more candidates were equally well
qualified, preference was shown to the candidate from the less well-represented group.  In conclusion,
the number of nationalities represented in the Secretariat had increased by approximately 30 per cent
since 1990 and the number of developing countries represented by 42 per cent.
12. Members indicated that the report provided helpful information and data and welcomed the
trend of increased recruitment from the developing countries as well as the increased representation ofwomen in the professional category.  The importance of giving preference to a candidate from a
developing country, where two candidates are judged  to be of equal calibre, was highlighted.  One
Member considered that representation of developing countries in the support staff category was low
and enquired on the recruitment procedure in this respect.  He further indicated that internal staff
mobility should be encouraged and enquired on the po licies developed in this respect.  With regard to
recruitment, the same Member referred to Staff Regulation 3.3 and expressed the concern that the
clause might encourage ad hoc  recruitment, which should only be for a limited period of time.  In
addition, he indicated that although lateral entry had its merits and would bring new blood to the
Organization, promotion of existing staff to higher-level grade posts was also important.
13. Many Members considered that a decision based on merit should remain the paramount
principle in the context of the recruitment policy.  Members expressed the opinion that there were no
contradictions in expanding diversification of the Secretariat while ensuring the highest competence
of staff. In this regard, it was stressed that this could be achieved through the widest dissemination of
vacancy advertisements.
14. In reply to queries, the Secretariat indicated that the relatively low representation of
developing countries among support staff was mainly due to the fact that the WTO had for many
years applied the UN system of local recruitment in regard to this category of staff.  With the
establishment of an independent WTO, it was thought that the situation would improve over time.
With regard to internal staff mobility, although it is important to have versatility among staff, it was
also important to have people expert in their job and to keep an institutional memory.  A right balance
had to be struck between the two.  The Secretariat had introduced policies on the issue, and a list of
volunteers for internal transfer had been established to facilitate internal mobility. It was neverthelesshighlighted that mobility for certain categories of posts, for example, but not limited to, translators,
were limited by the nature of their work.
15. It was further explained that the two fundamental concepts underpinning promotion policies
were merit and classification of the particular pos t.  In very exceptional circumstances, promotion
could be given in recognition of long term service, which was referred to document CRP(02)12paragraphs 49 to 50.  With regard to Staff Regulation 3.3, the Secretariat also explained that
recruitment was on a competitive basis, except in a very limited number of cases where there was an
urgent need to fill a specific job for a specific period of time.
16. The Secretariat welcomed suggestions from Members to improve dissemination of vacancy
notices and attached great importance to the on-line application system.  In addition, the Secretariatwould welcome Members’ help in providing an ev en wider dissemination of vacancies, which were
regularly provided both to missions and capitals. It was noted that travel costs to Geneva for
interviews and arrangements for visas of short-listed candidates were assumed by the Secretariat.  The
latter would ensure that information on recruitmen ts would be made available so that Members atWT/BFA/58
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large would be kept abreast of new arrivals.  In addition, the Secretariat also confirmed that emphasis
was placed on recruiting from developing countries for internships.  It was noted that the Secretariat
applied the UN definition of developed and developing countries.  At the request of a Member, the
Secretariat would provide a more detailed breakdown of the staff by nationality, grade and
occupational grouping.
17. The Committee took note of the report and the various comments from the Members.
IV. STRATEGIC ORGANIZATIONAL REVIEW OF THE WTO SECRETARIAT
18.   The Chairman recalled that document WT/BFA/W/69 was first distributed to the Committee
in English version only in November 2001 and proposed to structure the deliberations according to the
lines he proposed in document CRP(02)09.   With regard to the point concerning restructuring of
divisions, the Chairman sought delegations’ views on whether the Committee might suggest to theDirector-General that he work up a scheme for making provisions for agreed terminations and put it to
the Committee in connection with consideration of the 2003 Budget.
19.   In respect to the proposal in document WT /BFA/W/69 relating to a reduction in the number
of Deputy Directors-General, the Chairman recalled  that this was an issue for the General Council and
the new Director-General to decide, but that th e Committee should perhaps inform them of the
report’s findings.  Some Members expressed the preliminary view that this was more appropriately
discussed in the General Council.  One Member considered that the recommendation from the Human
Resources Consultant had a budgetary element as we ll.  Another Member suggested the possibility of
having one DDG and, in order to assure a m easure of administrative continuity, an ADG.
20. The Chairman agreed that the General Council was the final arbiter with regard this issue.  He
noted, however, the Committee was responsible for exam ining the report and could draw the attention
of the General Council to any budgetary implications of the issue.
21. In view of time constraints, discussion of this  item would be continued at the next meeting,
which would be held in May.
V. OUTSOURCING OF WEBSITE
22. In view of time constraints, this item woul d be discussed at the next meeting of the
Committee.
VI. OTHER BUSINESS
23. The Secretariat informed the Committee that it had consulted with the comptroller of the
WIPO and the ILO on their experience on result-based management.  This item would be discussed atthe next meeting in the context of a report on the question prepared by a consultant. In addition, he
informed the Members that the parking pattern in the lot in the Chemin des Mines would be
redesigned with a view to increasing capacity. The Committee would be kept informed on the matter.
24. A member of the Committee raised a number of questions regarding the newly-issued
publication entitled the “World Trade Review”.  The issue would be discussed at the next meeting.Another Member suggested that the WTO publication policy should be examined in the near future.WT/BFA/58
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25. The suggestion of a member of the Committee to put delegates’ photos on-line in order to
facilitate knowledge of and contacts among delegates would also be discussed at the next meeting.
POINT FOR DECISION: Paragraph 9.
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