RESTRICTEDWORLD TRADE
ORGANIZATIONWT/BFA/59
14 June 2002
(02-3314)
Committee on Budget, Finance and Administration
REPORT OF THE MEETING HELD ON 8 MAY 2002
1. The WTO Committee on Budget, Finance and Administration met on 8 May 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/1785 was adopted with the following additional points: (i) possibility of putting names and
photos of delegates on Members’ website, (ii) parking and (iii) translation.
I. ITC BUDGET FORECAST FOR 2003
2. A member of the ITC introduced the document ITC/BUD/42.  He recalled the administrative
arrangements agreed upon between the United Nations and the WTO.  The revised budget forecast for
2003 was based on the estimates submitted to the Committee in 2001.  The adjustment reflected
exclusively changes in inflation and exchange rate s with the dollar.  The revised requirements for
2003 amounted to CHF 30.6 million.  While a formal full presentation of the ITC budget for 2003
would be submitted as part of the regular budget presentation of WTO for 2003, a first performance
report of the biennium 2002-2003 would be submitted to the United Nations (UN).  In view of thedifferent budget cycles i.e. a two-year budget cycl e for the UN and an annual cycle for the WTO, he
suggested that the Committee might wish to consider that the usefulness of a first budget forecast
normally presented in May be suppressed every other year, i.e. in the first year of the UN Biennium.
3. One Member was concerned with the fact that the ITC was faced with two different budget
cycles, one for the UN and the other for the WTO.  Another Member enquired whether the DohaWork Programme would be reflected in the ITC budget for 2004 and expressed the opinion that, in
view of the fact that there would be a high demand for ITC services, an increase in the budget for
2004 should be considered.  In this respect, some Members indicated that they were prepared to
consider a possible increase in the ITC budget 2004; however, all increases would have to be
examined closely in the Committee.
4. In reply to queries, the representative of the ITC indicated that working with two different
budget cycles complicated budget submissions and re porting.  He further explained that the official
UN exchange rate was used in the budget submission.  In addition, implementation of technical
assistance was based on funding provided by donors.
5. The Committee took note of the report and the comments from the Members.WT/BFA/59
Page 2
II. ADMINISTRATIVE UP-DATES AND PROGRESS REPORTS AS AT 30 APRIL 2002
CASH SITUATION AND STATEMENT OF OUTSTANDING CONTRIBUTIONS (CRP(02)10 AND
WTO/BFA/SPEC/74)
INSTALMENT PAYMENTS FOR COUNTRIES IN ARREARS (CONTRIBUTIONS FROM 1987 AND
EARLIER YEARS ) (CRP(02)11)
CONTRIBUTIONS OF OBSERVER COUNTRIES TOWARDS THE COST OF SERVICES PROVIDED BY
THE SECRETARIAT (CRP(02)12)
HUMAN RESOURCES (CRP(02)13)
EXTRA -BUDGETARY CONTRIBUTIONS :
-S TATUS OF ALL EXTRA -BUDGETARY CONTRIBUTIONS (CRP(02)14)
-S TATUS OF PLEDGES MADE AND FUNDS RECEIVED : DOHA DEVELOPMENT AGENDA 
TRUST FUND (WT/BFA/SPEC/75)
6. A member of the Secretariat presented the cash situation, the statement of outstanding
contributions as at 30 April 2002, the progress report of instalments for countries in arrears, thecontributions of Observer countries towards the cost of services provided by the Secretariat.  As of
30 April 2002, the total contributions received from Members amounted to CHF 81.8 million.  Since
the date of the report, the following Member countries had made payments: (i) Moldova, (ii)
Myanmar, and (iii) Sierra Leone.  Contributions received from the Observers to the WTO towards the
cost of services provided by the Secretariat stood at CHF 364,779.  The Working Capital Fund
amounted to CHF 8.8 million as at 30 April 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 asat 30 April 2002.
7. Another member of the Secretariat presen ted a progress report, document CRP(02)13, on
human resources.  The selection process for new 2002 posts was progressing satisfactorily.
Implementation of the Performance Award System was well under way, and all staff had been invited
to undertake an evaluation of their respective supervisors. These comments were being taken intoaccount by the higher-level supervisor in his/her evaluation of the performance of the supervisor
concerned.
8. The Secretariat had also provided a table on the staff breakdown by nationality, gender,
occupational grouping and division.  The former also indicated that the UN criteria were used in
defining the terms “developed” and “developing” countries.  It was noted that future reports of thisnature would show correct designations of WTO Members including Hong Kong China, which should
be listed as “developing”.
9. A member of the Secretariat introduced documents CRP(02)14 and WT/BFA/SPEC/75.  He
drew the attention of the Members to the situation as at 7 May 2002 of the Doha Development
Agenda Global Trust Fund (DDAGTF), which had received contributions amounting to CHF 9.5million.  The buffer account, which had been used to cover expenses and commitments for the
DDAGTF early in the year, had been  replenished by contributions received for the fund.  The next
threshold date for the DDAGTF was 30 June 2002 wh ereby 100 per cent of the fund should have been
received.  The balance of the fund as at 30 April 2002 stood at CHF 3.3 million, which, according to
the current rate of disbursement, would last for another six weeks approximately.  Other Extra-
budgetary Funds remained in order.WT/BFA/59
Page 3
10. One Delegate informed the Committee that his Government had transferred its contribution to
the DDAGTF that same day.
11. The Committee took note of the various progress reports and the comments from the
Members.
III. STRATEGIC ORGANIZATIONAL REVIEW OF THE WTO SECRETARIAT
12. The Chairman referred to documents WT/B FA/W/69 and CRP(02)09 and recalled the
discussion that the Committee had on the matter during the last meeting.
13. Referring to the recommendation of reduction of the number of Deputy Directors-General
(DDGs), Member reiterated their awareness of the political dimension of the issue and agreed that the
General Council was the forum for such a discussion.  The Committee, however, could provide input
to the discussion on the matter by indicating the costs involved.  One Member considered that therecommendation of reduction of the number of DDGs was inter-related to the recommendation of
reduction of divisions/directors, and requested a cost analysis of the potential savings of the exercise.
Some Members considered that the view of the incoming Director-General on the matter was
important and stressed that the aim of the exercise was to enhance the capacity and efficiency of the
Secretariat to serve the Organization as a whole.  Some Members felt that the present structureprovided an important geographical equilibrium of the Secretariat.  One Member suggested the
alternative of having one appointed DDG and one ADG from the permanent WTO staff.
14. One Member indicated that, notwithstanding the political context and the constraints of
regional balance, the question of the number of DDGs is directly linked to the actual responsibilities
and activities of the DDGs, vis-à-vis the DG and the Directors of Divisions.  Should DDGs beseconding the DG or should they be team managers?  In the first instance, indeed to have four DDGs
could be characterized as too many.  In the second instance, the current ration of one DDG for five to
six Divisions, as is the case today, corresponds to normal managerial standards.  But then, the
consequence is that portfolios of DDGs should be organized in a more homogeneous fashion.
Further, if the number of Divisions were to be reduced by a significant number, the number of DDGscould be then reduced accordingly.
15. The Secretariat explained that the direct cost of a DDG amounted to approximately
CHF400,000.
16. Referring to the restructuring of Divisions and the classification grading review of director
positions proposed in document WT/BFA/W/69, Members noted (i) that the report was written before
the Ministerial Conference in Doha and (ii) that a restructuring of the Secretariat had taken place at
the beginning of 2002.  Some of the recommendati ons had already been implemented such as the
mergers of various Divisions.  Some stressed that neither the efficiency of the negotiating bodies nor
the Doha Work Programme should be affected by any reorganization of the Secretariat.
17. With regard to creating a fund to finance ag reed termination, the Secretariat would prepare,
for the next meeting, a comprehensive paper on such a scheme, taking into account the criteria and
experiences of other organizations.
18. The Secretariat also agreed to examine the feasibility of developing a classification standard
for senior non-managerial positions at grade 11. Th e organizational need for such positions would
grow with the reduction in number and increase in size of WTO Divisions.
19. The Chairman indicated that he would inform  the General Council with regard to the
discussions which took place in the Committee.WT/BFA/59
Page 4
IV. RESULTS-BASED MANAGEMENT
20. A member of the Secretariat presented the document WT/BFA/W/70 and explained that, since
1996, the Secretariat had been presenting information on a divisional basis with regard to results-
based management, both in the context of the annual budget proposals and in the financial andbudgetary reporting at the end of each year.  He further highlighted paragraphs 17 and 18 of the report
on the pros and cons of the WTO’s current system.  He also informed the Committee briefly the
experiences of the ILO and the WIPO in this respect.
21. Members welcomed the report and indicated that their respective capitals were studying it.
One Delegate indicated that he was pleased to note that the results-base budgeting (RBB) was both
desirable and feasible in the WTO, and the RBB would facilitate increased transparency in the
implementation of the budget.  The development of objectives at various levels in the organizationwould respect the member-driven nature of the or ganization.  He further suggested discussing the
report in an open-ended group of interested members so that recommendations on the implementation
of the report could be submitted to the Committee with a view to eventually incorporating them in the
budget proposals for 2003.  Another Delegate stressed the importance of maintaining the impartiality
and merit-based nature of the Secretariat, and that the implementation of the RBB should notundermine its political neutrality and efficiency.
22. Members felt it would be helpful to form the group as suggested.  Some Members emphasized
that RBB should not turn into a bureaucratic exercise.  Others were concerned that the development of
indicators for some Divisions might be problematic.
23. The Chairman indicated that he would consult Members of the Committee with regard to
organizing an informal meeting of the Committ ee to have an exchange of views on the issue.
24. The Committee took note of the report and the various comments from the Members.
V. OUTSOURCING OF WEBSITE
25.   The Chairman referred to the document WT/BFA/W/71, which was self-explanatory.
26. Members took note of the report and considered that the proposals in it could be discussed at
the time of the deliberation of the 2003 budget estimates.
27. The Committee took note of the report and the comments from the Members.
VI. OTHER BUSINESS
PROPOSAL TO PUT DELEGATES ’ PHOTOS ON MEMBERS ’ WEBSITE
28. A Member of the Committee referred to his proposal of putting delegates’ photos on the
Members Website, and indicated that it would helpful to identify new delegates.
29. Members in general agreed to the idea subject to approval from the respective Delegation
prior to putting the photos on the Members’ Website.  The Secretariat would look into the technical
issue of preventing downloading of the information from the website for security system.  It would
prepare a note and send it to all the Delegations seeking their permission to put their respectivedelegates’ photos for the Website.WT/BFA/59
Page 5
PARKING
30. The Secretariat informed the Committee that wo rk redesigning the parking configuration at
the Chemin des Mines in order to add some 65 additional places would begin in August.
TRANSLATION
31. The Secretariat informed the Committee that there was a 23 per cent increase in the
translation workload during the first four months of the year, and that if the present rate continued, the
current budget for translation would be overspent well before the end of the year.
__________