RESTRICTED
WORLD TRADE WT/GC/W/74
18December 1997
ORGANIZATION(97-5536)
REPORT OFTHE DIRECTOR-GENERAL TOTHE GENERAL COUNCIL
ONITSDECISION OF24APRIL 1997
"WTO SECRETARIAT AND SENIOR MANAGEMENT STRUCTURE" (WT/L/207)1
Thepresent report isdivided intothefollowing sections:
A. Mandate andApproach
B. Current andFuture Challenges
C. Management Structure
D. Functioning andOperational Efficiency oftheSecretariat
___________________
A. Mandate andApproach
1. Initsoperative paragraph 1,theGeneral Council 'sDecision (WT/L/207) requests "theDirector-
General [DG] tosubmit areport withhisrecommendations totheGeneral Council assoon aspossible
butnotlater than October 1997 onhowthefunctioning andoperational efficiency oftheSecretariat
might beenhanced tomeet challenges facing theorganization, including through arationalization of
thesenior management structure inthelight ofMembers 'intention toreduce significantly thenumber
ofDeputy Directors-General [DDG]. "(underlining andabbreviations added)
2. Inresponding tothisrequest, Ihave identified inthepresent report anumber ofcurrent and
future challenges posed totheOrganization andtheSecretariat (Section "B"). Ihave included myviews
ontheappropriate structure forthesenior management (Section "C"), andalsoexamined thepossibilities
forimproving thefunctioning andoperational efficiency oftheSecretariat (Section "D"). Ihave taken
intoaccountMembers'viewsascommunicatedinmyconsultationsearlierthisyearontheDDGquestion,
aswellasmore recently bydelegations which have made their views known onthemanagement structure
oftheSecretariat andthepossibilities formaintaining andenhancing itsefficiency.
B. Current andFuture Challenges
3. There arethree major challenges ahead ofus:
(a) Thefirstarises from thefactthatthecomposition ofthisneworganization, inaddition
tobeing larger than thatoftheGATT, isvery different from it.80% oftheWTO
Members aredeveloping countries oreconomies intransition, andamong them 28are
least-developed countries. Wehave tofind thebest ways tohelp these countries
implement their undertakings, make useoftheir rights andparticipate fully inthe
evolution ofthesystem. Anin-depth reflection onthismatter seems imperative.
1Thisdocument wasissued previously asJobNo.5553, dated 15October 1997.WT/GC/W/74
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(b) Thesecond major challenge canbefound intheaccession within thenext fewyears
of29current candidates, including anumber ofmajor trading partners. Nearly allof
them arealsoeither developing countries oreconomies intransition. Theproblems
tobefaced bytheOrganization asaresult oftheaccession ofthese candidates will
call,induecourse, foranoverall reflection onboth thehuman andfinancial resources
needed tofacilitate their adjustment tothecomplex reality ofthemultilateral trading
system.
(c) Moreover, tothese major challenges onemust addthatrepresented bytheevolution
ofthesystem itself. Through eight negotiating rounds themultilateral trading system
hasbecome both more effective andmore complex. Itisperhaps useful torecall here
the27'000pages ofcommitments oftheUruguay Round, thecreation ofthenewWTO,
theintroductionintothesystemofnewsubjectssuchasservicesandintellectualproperty,
and-inparticular -thesignificantly improved dispute settlement system. TheSingapore
Conference hasreaffirmed theagenda which hademerged from theUruguay Round,
aswell astheimportance Members place onverifying theimplementation ofthe
commitments undertaken. Finally, areflection hasbeen initiated innewdirections such
asinvestment, therelationship between trade andcompetition, andtransparency in
government procurement. Attheturnofthecentury liethenegotiations foreseen in
agriculture, services, andcertain aspects ofTRIPS ontheonehand, andreviews of
agreements andcommitments ontheother.
Concurrently, theevolution ofthesystem anditseffectiveness insettling disputes is
drawing more andmore attention from public opinion worldwide totheactivities of
theWTO.
Lastly, theongoing technological revolution -especially indigital andcommunications
technologies -willhave astrong impact ontheevolution ofthetrading system. At
thisstage itisstilldifficult toforesee allthemajor changes thatthiswill imply.
However, oneofthemajor implications ofthisrevolution islikely tobethedevelopment
ofelectronic commerce which willitself bring about numerous fundamental changes
intheway business isconducted andtheway multilateral trade rules areapplied.
4. These three challenges arefundamental tothesystem asawhole. They underlie aseries of
specific issues, including thefollowing:
(a) Continuing toservice with theusual high level ofefficiency theagreements concluded
intheUruguay Round, nottheleast theDispute Settlement Understanding, andthose
recently concluded orunder negotiation.
(b) ProvidingbothgeneralandspecifictechnicalassistancetoagrowingnumberofMembers
andacceding candidates. During negotiations agrowing roleinassisting delegations
andclarifying issues (asinTelecommunications andFinancial Services), and, once
negotiations areconcluded, providing implementation-related assistance toMembers,
because ofthegrowth inthenumber anddiversity ofMembers, combined with the
high level ofsophistication required tolegislate andimplement WTO requirements,
which have resulted inanever-increasing demand forimplementation assistance.
(c) Theprovision ofcontinuously improving services toMembers: newfacilities arebeing
introduced andexisting ones arebeing improved onaregular basis. Inthisrespect
adequateintegrationofcost-efficient,rapidly-evolvingtechnologicaltoolsintoday-to-day
operations willcontinue torequire ourclosest attention.WT/GC/W/74
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(d) Thecombination ofanever-increasing number ofmeetings -bothformal andinformal -
ofthevery large number ofofficial WTO bodies with theassociated expansion in
documentation requests from Members poses aserious challenge tothecapacity ofthe
Secretariat tomaintain thequality ofitsservices while atthesame time fulfilling the
imperative need formaintaining cost-effectiveness. Members themselves arealsofacing
increasing difficulties infollowing theactivities ofthese meetings. Thewider range
ofMembers whohave become active participants innearly allthemeetings isalsoworth
noting inthisrespect.
(e) Intheimmediate future, there istheorganization oftheMinisterial Conference in1998
andtheconcurrent 50th anniversary celebrations. This will befollowed bythe
preparation fortheMinisterial Meeting which willtake place attheendof1999 or
thebeginning of2000. Theservicing ofthenegotiations andreviews which areforeseen
willputamajor strain ontheresources oftheMembers andSecretariat alike.
(f) Theachievement, asaresult oftheagreements signed among them, ofnewcooperation
arrangementsbetweentheWTOandmajorinternationalorganizationsrequiresincreased
activity inliaison andcooperation, inparticular inthefield oftechnical assistance.
(g) PursuinganddevelopingthedialoguewithNon-GovernmentalOrganizations(NGOs)and
theprivate sector isataskwhich isabsorbing significantly more resources.
5. This enumeration ofthechallenges facing theOrganization anditsSecretariat isnotintended
tobeexhaustive -andwecancertainly count onother unforeseen challenges arising. Itclearly shows,
however, thescope anddifficulty ofthetasks involved inensuring thattheSecretariat continues to
provide theservice thatMembers expect ofit.
C. Management Structure
6. Itisdifficult toimagine taking allthedecisions onthereorganization oftheSecretariat atthe
same moment andwithout dueaccount being taken oftheevolution ofthesystem which wehave just
tried tooutline. Itistherefore important todefine astrategy andprocedures which should enable us
gradually toadapt thestructure oftheSecretariat toemerging aswell asfuture requirements. Thefirst
stepinthatdirection, asitwasrightly identified bytheGeneral Council, must beareview ofthesenior
management structure.
7. Thereform ofthesenior management structure isvery much partofthemanner inwhich the
identified challenges willbeaddressed, asitwillalsocondition thefuture organization oftheSecretariat.
Aspointed outabove, theevolution ofthemultilateral trading system following theconclusion ofthe
Uruguay Round, thecreation oftheWTO, therapid progress toward more interdependence anda
borderless world economy have hadasignificant impact onthefunctioning oftheinstitution. These
factors have been particularly important forthesenior management structure oftheSecretariat, asboth
governmental andnon-governmental entities exert more andmore pressure onsenior management to
participate inrelevant international meetings, ortoexplain tonational constituencies theroleandthe
agenda oftheWTO. This growing external roleofsenior management waspartially recognized by
Members withregard totheNGOs. Ithasbecome quite clear thattheroleofsenior managers hasevolved
from what itused tobeintheGATT days. This external dimension thusshould bekeptinmind when
examining thesenior management structure oftheSecretariat.
8. But, even ifonly internal management considerations were tobegiven particular attention,
Members willrecall thatthemanagement consultants Deloitte andTouche addressed thisquestion in
their report of15December 1994. Inbrief, theyconcluded their examination ofthethenmanagementWT/GC/W/74
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structure (3DDGs) bynoting thatanintermediary level ofmanagement wasnecessary, asonecould
notenvisage that20-25 functions would report tothetopmanager (DG). Intheory, theoptimal span
ofcontrol ofamanager wasgenerally considered tobearound eight direct subordinates, andonthis
basis, theSecretariat 'sintermediate level ofmanagement should consist ofthree managers. The
responsibilities oftheDDGs should bere-allocated sothatthesupport Divisions reported directly to
asingle DDG. They hadsuggested analternative ofeach DDG having amixofvertical, horizontal
andsupport Divisions2insuch awaythatthecosts, complexity andsizeofdepartments beshared as
equally aspossible.
9. Thepresentseniormanagementstructurestemsinpartfromrecommendationsofthemanagement
consultants. Inpartonly, because, inter alia,afourth DDG post wasdecided upon byMembers in
thespring of1995, which necessitated some adjustment totheallocation ofresponsibilities among the
DDGs. Further adjustments were made inMarch 1997, based ontheexperience oftheprevious two
years.
10. Ibelieve thattheabove considerations should beborne inmind inexamining what isthedesirable
number forthesecond hierarchical level oftheSecretariat. Onealsohastotakeintoaccount thatan
important contribution ofDDGs ishandling, oradvising theDGon,questions ofsignificant institutional
orpolitical sensitivity.
Formulae forSenior Management Structure
(a) 1DG+4DDGs (or1:4)
11. This isthepresent situation, which Members now wish tomodify. Since Members 'intention
istoreduce significantly thenumber ofDDGs, Iwillnotelaborate further onthisformula.
(b) 1DG+3DDGs (or1:3)
12. Ihave already alluded tothisformula inrecalling theviews oftheconsultants. Itisvery similar
inseveral respects tothe1:4one. The1:3formula prevailed forashort period extending from July
1993 toJuly1995, under twosuccessive Directors-General. Itcould beargued tobeaviable formula
from theefficiency point ofview (supervision andcoordination offunctions) -asalsoadvanced by
theconsultants (seeparagraph 8above) -andcould befurther justified infuture bytheincreasing scope
andvolume oftheSecretariat 'sactivities. However, Members may well interpret their intention to
make a"significant reduction "asexcluding thisoption.
13. One notable shortcoming ofthisformula isthattheperiodic availability offour posts tobe
filled intotal could tendtoentrench considerations such asregional balance orother 'political 'criteria
forappointments. That, inturn, would mean negotiations over which region/country from which they
should come andforhowlong(rotation periods). Thedifficulty ofreaching consensus onthese questions
could inturn lead topressures forincreasing thenumber ofDDGs further inorder tomatch
regions '/countries 'wishes tobeincluded. Intheforeseeable future, these pressures could become far
greater -sothattheresult might bethereverse ofthereduction currently being sought.
(c) 1DG+2DDGs (or1:2)
14. This situation prevailed intheGATT fornearly twenty-five years from thelate'60s/early '70s
through theearly '90s. That formula worked well, during aperiod when theSecretariat staff increased
2Forthepurpose ofthispaper, support divisions/functions refer toadministration, budget, finances, general
services, personnel, translation anddocumentation, andstatistics andinformation system.sWT/GC/W/74
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from around 200in1967 to300during theTokyo Round, andtomore than400bytheendofthe'80s
andwhen theGATT membership rose from around 60toabove 90.
15. The1:2formula could work wellfrom theefficiency point ofview -itallows close supervision
andcoordination ofdivisions andiseasy toputinto place. Ithasalong history behind it.One
disadvantage isthatoneoftheDDGs inherits both trade policy andmajor administrative functions.
That proved tobedifficult forsome individuals, who found themselves tornbetween twocompletely
heterogenous types ofissue which both deserve close andconsiderable attention andtime. Theformula
worked better when thetwoDDGs only hadtrade policy functions andthesupport functions were
allocatedtoanAssistantDirector-General(ADG)orSeniorDirectorreportingdirectlytotheDG'sOffice,
andproper coordination wasbeing ensured between theDG, DDGs andthatADG/Senior Director.
16. While theformula stillleaves open -albeit toamuch lesser degree -thepolitical/regional
questions, itcould beargued thatitmight represent amore effective wayofensuring supervision of
andcoordinationamongthedivisions/sectionsdealingwithanever-increasingnumberofvastandcomplex
trade policy subjects, provided thatthesupport functions arelargely allocated toanADG oraSenior
Director. Inanycase thisformula willrequire some adjustments intheallocation ofdivisions.
(d) 1DG+1DDG (or1:1)
17. This isaninnovative formula, atleast insofarastherecent pastisconcerned. Itprevailed
inthefirsttwenty orsoyears ofGATT -with amuch smaller Secretariat andmembership -with the
added feature thatoneSenior Director/ADG supervised, inparallel, thesupport functions ofthe
Secretariat. Italsoprevailed forashort period attheendofMr.Dunkel 'stenure, withaslightly different
allocation offunctions. Ascanbeforeseen, thecoordination andsupervisory tasks ofthesingle DDG
would bequite substantial -possibly overburdening -iftheywere lefttooneDDG only, buttheformula
couldnonethelessworkifrelateddivisionswereregroupedunderfour/fiveseniordirectorsandappropriate
delegation ofresponsibility totheDirectorate would beeffected inparallel. Under such astructure
thefunction ofexternal representation oftheSecretariat would beconsiderably reduced anditsability
todischarge allitsresponsibilities would beaffected. Itwould also require amajor internal
reorganization.
18. Inconcluding thisexamination, while arguments canbemade infavour ofeach ofthe1:3,
1:2and1:1formulae, forthereasons setoutabove the1:2formula appears themost credible option.
Myown preference, therefore, would gotothe1DG/2DDGs/1ADG-Senior Director approach forthe
following reasons:
(a) Theformula iseasy toimplement andshows along history ofsatisfactory results;
(b) theformula permits theparticipation oftheDDGs intheexternal representation activity;
(c) theavailability ofthree posts (1:2) allows forrepresentation from avariety of
backgrounds atthetopmanagement level, andprovides asafety netagainst sudden
departures, prolonged illness, etc.;
(d) twoDDGs could ensure better andcloser supervision andcoordination ofamanageable
number oftrade policy divisions, whose tasks arebecoming increasingly complex. The
Secretariat asawhole would alsobenefit from abroader range ofpolitical advice;
(e) theADG/Senior Director -tobeselected from Secretariat career officials -would
supervise support functions, thereby freeing theDDGs forbetter focus ontrade policy
issues, particularly inthenear future when new negotiations arescheduled; andWT/GC/W/74
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(f) theformula generates costsavings immediately aswell asover thelonger term.
19. Lastly, Ibelieve that, aswasthegeneral practice under GATT, anyfuture DDG(s) should be
retained foratleast twoterms ofthree years, subject, ofcourse, tosatisfactory service andavailability.
Theperspective ofoneterm only isnotlikely toattract andbring inthebestsenior candidates.
D. Functioning andOperational Efficiency oftheSecretariat
20. Thesecond aspect tobeaddressed aspartoftheGeneral Council Decision ishowthechallenges
identified inSection "B"canbeaddressed with aview toimproving thefunctioning andoperational
efficiency oftheSecretariat. Improvements tothefunctioning oftheSecretariat canbeseen from the
point ofview ofinternal arrangements andfrom thatoftheservices toMembers. These are,ineffect,
thetwosides ofthesame coin andIwilladdress them together.
21. Before going intospecific questions, Iwould liketoemphasize thatthesolution tobeagreed
forthesenior management structure willbeakeyfactor indetermining thestructure oftheSecretariat
asawhole; oneonly hastotakeintoconsideration theremarks inparagraphs 14-16 concerning the
1DG/2DDGs/1ADG formula orinparagraph 17onthe1DG/1DDG approach tograsp theimportance
ofthesenior management structure fortheoverall structure oftheSecretariat. Moreover, while the
senior management structure isimportant, governments 'expected decision onthestaff conditions of
service isnolessessential interms ofimproving thefunctioning oftheSecretariat. Onthislatter point,
Irefer youtothedocuments which have been recently provided totheGeneral Council (No. 5014 and
Annexes of17.9.97) andtoparagraph 30ofthisreport. Atthesame time, andwithout waiting for
alltheconsequences ofthechallenges outlined inparagraphs 3and4above, weareinaposition to
indicate anumber ofimprovements tothefunctioning oftheSecretariat 1)which have already been
realized; 2)which arebeing implemented; or3)which arebeing considered.
22. Ishould start byrecalling how proud Iamoftheexcellent work performed bythissmall
Secretariat. Members themselves have recognized thisonseveral occasions. Thestaff'sdedication to
their tasks andthelevel oftheir expertise andprofessionalism certainly deserve recognition, asdoes
theever-increasing efficiency intackling agrowing volume ofresponsibilities. Wework wellandwe
have aleanSecretariat, anditshould staythisway. TosaythattheSecretariat isalready very efficient
does notimply that nothing islefttobedesired. Allitmeans isthat contrary tosome other
administrations, wearenotstarting from anunsatisfactory situation overall.
23. Any further measures tobeenvisaged would have tobebased ontheassumptions thatinour
attempt atmaintaining, andimproving wherever feasible, thehigh quality ofourservices:
(a) Theprimary consideration isefficiency andconsequently staff resources areretained
onthebasis ofperformance andacquired onthebasis ofqualifications andexpertise;
(b) thenumber ofDDGs willbereduced significantly, asexpressed intheDecision under
discussion inthisreport;
(c) theright package ofconditions ofservice areputintoplace upon theestablishment
oftheWTO Secretariat;
(d) noproblem willarise with regard tolanguages; without entering adebate which no
doubt entails much political sensitivity, itwould make agreat difference, both cost-
andefficiency-wise, iftheSecretariat were nottocontinue todealonlywiththeexistingWT/GC/W/74
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three official languages.3Keeping inmind only theefficiency considerations, which
areparticularly important inavery small organizational structure liketheWTO with
32plus6regular translators andinterpreters respectively ascompared with some 150
professional staff inoperational divisions, weshould point outthatlanguage-related
effects spread throughout theSecretariat andarenotconfined tothetranslation and
interpretation functions alone. TheRegistry, Reference unit, Typing Pool, Roneo,
Distribution unit, andmost operational divisions andtheLibrary arealsoaffected, not
tomention theneed foradapted textprocessing andother software andhardware, and
theconsequentadditionalinterpretationfacilities(booths)aswellasdelaysintheinternal
decision-making process. Byway ofillustration, thecostperlanguage iscurrently
aroundone-thirdoftheoveralltranslationanddocumentationbudget.Itcanbeestimated
thatanyadditional language would represent additional costs ofmore than onethird
ofthesame budget, because theSecretariat would bestarting from zeroinanyofthem,
alarge increase inpersonnel would beneeded, aswould additional office space and
eventually anew building; and
(e) Members canandwillexercise maximum self-restraint intheir documentation requests
ontheonehand andwork with each other andchairmen tolimit alsothedemands for
meetings. Thisisclearly oneareawhere Members canhelptheSecretariat remain small,
thatisbyscaling down their documentary expectations andthenumber ofmeetings.
Specific Improvements:
(1) Improvements which have already been realized
24. Membershavebeenofferedawholeseriesofdocumentationfacilities,whetherthroughcomputer
networking improvements orphysical arrangements intheCentre William Rappard. Thedevelopment
oftheWTO World Wide Web sitehasgiven even greater satisfaction thanexpected. Ingeneral, growing
recourse tonew technologies bytheWTO, either alone (CD-Rom ofUruguay Round results) orin
cooperation (WTO/World Bank project forLLDCs) have yielded most encouraging results without undue
impact onbudgetary resources. Weintend, therefore, tocontinue toexplore these avenues.
25. TherecruitmentpolicywehavebeenpursuingrecentlyhasgonealongwayinmeetingMembers'
concern about broadening thebase ofrepresentation intheSecretariat without having recourse to
geographical quotas. Starting with recruitment atlower grades, wehave been active inenlarging the
recruitment base, e.g.through contacting universities, inorder togivemore equal chances tothevarious
regions oftheworld where WTO Members originate, andtoensure better career development. Insaying
this,wealsohave tobear inmind thatbecause ofneeds incertain jobs, wehave tokeep thepossibility
ofrecruiting athigher levels forspecialized jobs. Further aspects ofrecruitment willbetaken into
consideration aspartoftheefficiency measures described inparagraph 30(d).
26. Wehave alsobeen forsome time now progressively implementing results ofthemanagement
audit performed fortheGATT/WTO bythemanagement consultants 'Deloitte andTouche 'inDecember
1994, asthey emerged from thediscussion oftheir report with Members. You willrecall thatthese
consultants hadcome upwith similar conclusions tothose arrived atbyother organizations regarding
thethree main phases oftheplanning cycle, namely: (1)setting thestrategic objectives; (2)allocating
3Annex 1provides relevant dataconcerning therespective increases intheoverall workload oftheSecretariat
inthepre-WTO andWTO situations. Over thelast10years theproductivity oftheSecretariat hasincreased
tremendously, forexample asshown bythenumber ofpages produced -thesingle measure ofperformance
appraisal advocated byDeloitte andTouche -thanks inparttothesteady introduction ofcomputer facilities and
networking facilities ontheonehand andtothecontinuous dedication ofthestaffofthisOrganization onthe
other.WT/GC/W/74
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resources; and(3)measuring theoutcome. Wehave inthisrespect implemented budget decentralization
giving each division asetofobjectives tofulfil; wearecurrently exploring ways ofcarrying theprocess
further. Weareequally looking closely attheallocation ofhuman resources andallaspects ofpersonnel
policy, including thebalance between professional andgeneral service staff.
27. Serious efforts have already been made incontaining increases inexpenditures, notably incertain
areas such astravel, communications, documentation, etc., andthese willcontinue.
(2) Measures which arebeing orareabout tobeimplemented
28. Aspartofourefforts atimproving operational efficiency, weareofcourse looking andwill
continue tolook at:
(a) Reorganization offunctions andmeasures forallocation ofhuman resources: e.g.,
allowing formaximum flexibility inredeploying resources andre-allocating functions
among Divisions andDepartments; andrecourse toTask Forces. Wearecurrently
considering various ways ofreorganizing theSecretariat with aview tomaking any
desired organizational changes sufficiently inadvance ofthevarious important
commitments facing usfrom next yearonward, andinlight oftheMembers 'expected
decision onthesenior management structure. Theapproaches being considered include:
(i) Refocusing divisions 'mandates incertain areas torespond toevolving needs;
(ii) adopting aflexible approach toregrouping complementary activities, relocating
functions, or,asappropriate, creating newunits formore focused handling of
issues; and
(iii) increased coordination ofcertain functions through thecreation ofspecial task
forces.
(b) General managerial measures: e.g., continued reliance onmanagement byobjectives,
developing andrefining ourmethods forassessing theperformance oftheorganization 's
output; improving coordination ofoverall activity andcommunications; andseeking
further productivity increases through continued improvements offacilities andmethods
ofwork. Special efforts arealsobeing made tostrengthen team work andcollegial
spirit.
(c) Finance- andbudget-related measures: e.g,continuing toseek cost-effectiveness in
allareas ofactivity; pursuing asfarasjustifiable andpracticable theinternal budget
decentralization process; designing orfurther refining analytical tools (the recent
acquisition ofnew software willhelp toimprove theprocedures forcontrolling and
reporting). Wearecurrently examining various ways ofimproving cost-effectiveness
bygivingamorecommercialorientationtoouractivitieswhereappropriate,inparticular
intheareaofpublications sales. Wehave alsobeen experimenting with outsourcing
insome areas ofouractivities, e.g.contracting outsome aspects oftranslation and
publication. Further recourse tothispractice isawaiting theresults ofthisexperiment.
(d) Staff-related measures: Ishould stress herethatweattach great importance tointernal
staff mobility, which weconsider asanimportant responsibility oftheManagement
oftheOrganization. Wewillwork toincrease staff mobility, both attheDirector and
lower echelons, inorder toavoid disruption incase ofsudden departures andensure
continuity ofservice, andalsotoenhance staff'scareer perspectives. These measures
willalsoinclude repeating management training courses fordirectorate andother senior
professional echelons; andincreasing theavailability anddiversity oftraining forall
staff. Even iftheadoption ofdefinitive conditions ofservice oftheSecretariat isstillWT/GC/W/74
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pending, wehave already tightened andimproved ourstaff performance evaluation
procedures. Lastly, weareintheprocess ofcompleting amajor jobclassification
exercise, theresults ofwhich willprovide auseful complementary management tool,
inparticular inthearea ofpromotion andrecruitment.
(3) Other measures being considered
29. Inaddressing theoperational efficiency oftheWTO Secretariat, wearecarefully studying and
willbedrawing on,asappropriate, relevant measures which have emerged from recent reform audits
inother international organizations. This isparticularly thecase inadministrative, budgetary and
personnel management andourefforts atputting some ofouroperations onamore commercial basis.
30. Atthesame time, Ialsofirmly believe thattheadditional efficiency measures weshould envisage
first andforemost arethose thathave been built intothepackage ofproposed conditions ofservice
foranindependent Secretariat outside theUNcommon system. Aclose examination ofthese measures
shows clearly how their implementation would have astrongly positive effect onthefunctioning of
theSecretariat. You willrecall thatthese measures essentially comprise thefollowing:
(a) Theintroduction ofthenotion ofregular instead ofpermanent contracts, coupled with
animproved andmore stringent staff performance appraisal procedure would provide
more flexibility inthemanagement ofhuman resources thaninthepresent UNsystem,
where permanent contracts -often perceived asalife-time employment guarantee -
andlaxer performance requirements make itvery difficult, even impossible todismiss
non-performing officials. The proposed UNreform also talks ofamore strict
performance appraisal -without, however, recourse toregular contracts -butitisnot
atallclear whether andwhen theoverall UNreform package willbeapproved, letalone
putintoeffect. Nearly allourprocedures areready andwould beapplied atanearly
date, i.e.,asof1January 1998 formost ofthem.
(b) Theintroduction ofaunified system ofsalaries, allowances andpensions would permit
theelimination ofoneofthemajor shortcomings ofthecommon system, namely the
existence oftwooverlapping paysystems (Professional andGeneral Service). Under
theproposed WTO system, allstaff would beplaced onthesame salary scale andbe
eligible forthesame lump-sum dependency allowances. Allmonetary conditions would
beexpressed inSwiss francs, thecurrency oftheWTO budget, resulting inenhanced
financial transparency. The repatriation grant would bereplaced byaseparation
indemnity, calculated according toamore restrictive formula butpayable toallstaff,
irrespective ofgrade and/or type ofrecruitment. Asacorollary, theintroduction of
such aunified system ofsalaries, allowances andpensions would bring about amuch
more manageable andconsistent handling ofthepayroll, better andeasier monitoring
ofthisactivity, andpossibly operational savings.
(c) Ourproposed system brings inanimproved correlation between payandperformance.
Thecommon system arrangement forquasi-automatic periodic salary increments would
bereplaced byaperformance-based salary system, inwhich therateofmovement
through thepayscale would bedetermined bythequality oftheservices rendered by
thestaff member. Theperformance paysystem would, liketheremainder ofthe
package, besubject tothesame cost-neutrality requirement.
(d) Asignificant aspect ofourproposed system relates torecruitment tosupport-level
positions. With theestablishment ofaunified salary scale andthecompletion ofthe
postclassification exercise, theopportunity would betaken toreassess thesalary span
applicable tosupport-level positions. There would beincreased recourse tolower salaryWT/GC/W/74
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levels forrecruitment tosupport positions, andremuneration forsuch positions would
generally beconfined tothelower levels.
(e) Simplification andtransparency aremajor features oftheproposed WTO package.
Theproposed newunified arrangements would leadtoconsiderable gains interms of
simplicity andtransparency compared withthepresent overly complex common system
arrangements. These simplifications may reasonably beexpected alsotoleadtosome
savings inthelong term. Theproposed conditions have been specifically designed
with aview tofacilitating thepersonnel administration andpayroll processes andto
promoting abetter understanding ofWTO employment conditions byboth Members
andstaff.
(f) Regular monitoring: Henceforth, theGeneral Council would beable tomonitor on
acontinuing basis theevolution ofthenewsystem ofconditions ofservice. Whereas
thecoreconditions ofthecommon system aredetermined bytheUnited Nations General
Assembly anditssubsidiary organs inNew York, WTO conditions ofservice would
beplaced under thedirect, ongoing control oftheGeneral Council.
31. Weseethese efficiency measures aspartofacomprehensive package which encompasses all
ofthefollowing:puttinginplaceanappropriateseniormanagementstructure;preservingprovenmethods
ofwork acquired inseveral areas overmany years, introducing modernized andcost-effective conditions
ofservice, andimplementing more detailed management reforms intheconduct ofouroperations.
Wehave theopportunity tosecure thispackage ofreforms, account being taken ofreforms inother
organizations andfully inlinewith preoccupations expressed elsewhere. Ibelieve thiswhole package
isonly possible inanindependent Secretariat andoutside theCommon System, astheresponse from
theICSC, which youhave seen separately, hasshown. Moreover, thepackage canbeimplemented
under cost-neutral conditions, ascertified bytheUKGovernment Actuary.
32. IwouldalsoliketostressthatinexaminingtheoperationalefficiencyoftheSecretariat,Members
should alsobear inmind thefollowing considerations. TheSecretariat 'sworkload islargely, ifnot
entirely, demand-driven -bymeetings thatarerequested, byrequests fortechnical assistance, bythe
establishment ofpanels andbythelength ofdelegations 'submissions andWTO bodies 'reports requiring
translation anddistribution. We,intheSecretariat, have little control overthese aspects. Other decisions,
also, clearly belong totheMembers such asonthesenior management structure andtheselection of
anewDirector-General. Ontheother hand, however, weseeaprimary responsibility oftheSecretariat
forthedetailed management ofitsfunctioning andintheimplementation ofmeasures aimed atthe
smooth andcost-effective conduct ofitsoperations. Wecanseek economies andbetter useofthe
resources atourdisposal. This iswhat wearedoing.
33. Iwould liketoconclude onapositive note. If,indeed, Members cancome relatively quickly
totheright decisions ontheSecretariat 'sconditions ofservice andthenumber ofDDGs, Iwould expect
thattheSecretariat willcontinue todeliver onMembers 'expectations concerning cost-effectiveness
andefficiency. Members now have aunique opportunity tocreate thenecessary healthy environment
andsetinplace alltheconditions forefficient management oftheWTO 'sresources intheimportant
years tocome andontheeveofanother eraofnegotiations, reviews, etc. This isthefirsttime that
Members areinaposition toaddress simultaneously allthekeyelements ofthefunctioning ofthe
Organization: establishing theSecretariat anditsconditions ofservice anddetermining thesenior
structure; andproviding general strategic andpolicy guidance totheSecretariat. Ihope thatthis
opportunity willbeused infullawareness oftheimportant roletheWTO willbecalled ontoplay in
theglobal economy ofthe21st century.WT/GC/W/74
Page11
ANNEX 1
Comparative data ofthepre-WTO andWTO situations with regard to
Institutional matters, Number ofmeetings andWorkload increase
(Except otherwise indicated, dates refer to1986 and1996)
Workload Increase inTranslation andDocumentation
1986-1996
1986 1996 Increase (%)
Jobs (translation requests) 2,732 6,122 124
Pages oforiginal 24,207 49,727 105
Pages translated* 45,170 98,753 118
Documents issued* 6,846 17,313 152
Pages indocuments issued* 56,271 156,756 178
Reproduction (pages printed)* 33,124,561 81,120,399 144
*Inthethree working languages.
Notifications, 1995 and1996
1995 1996 Increase (%)
No.ofNotifications 1,419 2,102 48.1
No.ofpages 8,681 15,269 75.8
Increase inNo.ofMeetings, 1986-1996
1986 1996 Increase (%)
Multilateral (formal andinformal) 534 926 73.4
Members 'Private andbilateral n.a. 1997 -
Increase inNo.ofLegal instruments, standing bodies andmembership, 1986-1996
1986 1996 Increase (%)
Legal instruments 10(Gatt+Codes) 27(excl.
Decisions,
Understandings170%
Standing bodies 14 33 136
Membership 90 131+28 77%