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COM(81)546
Vol.1981/0163

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(81)546 final
Brussels,29thSeptember 1981
/-v-yt>•■JA
V»"\/
\ \-N>/
•.»p// -.•COMMISSION COMMUNICATION TOTHECOUNCIL'.•*
..-i
concerning anexceptional foodaidfortheleastdeveloped
countries (LDCs)
CQM(81)546final

This Commission proposal must beconsidered one oftheessential
planks oftheoverall policy anddecision-making guidelines which
theCommunity ,onthebasis ofCommission proposals ,will have to
adopt inresponse totheworrying trend oftheworld food situation
(inthe spirit ofthediscussions which took place atthe Council of
Foreign Affairs Ministers meeting on14September ,following the
initiative taken bythe Italian Foreign Minister ).

1.GENERALSITUATION OFTHELDCs
TheParisConference (whichtookplacefrom1to14September 1981)
endorsedtheconceptof"Leastdevelopedcountries"andtheinternational
community hasrecognizedthatthegravityoftheireconomicandfood
situationissuchthatitrequiresparticular attention andtreatment .
The31poorestcountries (1),withatotalpopulation inexcessof
260million,shareanumberofcommoncharacteristics whichdistinguish
themfromotherdeveloping countries,suchasanexcessively lowaverage
percapitaincome,amoreprecariousfinancialsituationthanother
developing countries (in1977theratiobetweentheexternaldebtandthe
volumeofexportswas1.8asagainst0.5fortheaveragedeveloping
country),andnegativeagricultural growth(2),sinceagricultural production
decreased by0.7%percapitaperannumfrom1970to1980.Allthesefactors
havestifledanychanceofdevelopment .
Thefactthattheyhavefew'resourceshindersanycoordinated andeffective
development effort,andinternational aidisstilltoolowsincetheLDCs
receiveapproximately 7%ofallaidtodeveloping countries,whereasthey
have12%ofthetotalpopulation ofthosecountries.
Theunstableinternational economicclimate(withhighenergycosts,
fluctuations inthepricesofrawmaterials andcereals,etc..)hasmadethis
situation worseandthedisastrouseffectsofmalnutrition arelargely
concentrated intheLDCs.
TheParisConferencehighlighted anumberofpathsalongwhichdomestic
development policiesandaid(guidelines andquantities )-shouldberesolutely
guided.Thedevelopment offoodcropsmustbegiventoppriorityandplans
forfoodsecuritydrawnup,butmeanwhilethesecountriesurgentlyneed
publicassistance togivethemthebasicessentialstoensuresurvival,
convalescence andamodicumofhealthandstrength-withoutbeingrequired
toreciprocate-.
(1)Seelistinannex.
(2)Eventhoughagriculture isthepredominant sector.

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2.MEETINGTHELD'CsFOODREQUIREMENTS :APRIORITY
TheLDCs1foodimportsrosefrom1millionin1961/65toapproximately
6millionin1980,whichrepresents acosttothosecountriesestimatedat
morethan21,200million.Theseincreasingly largeimportsarefarin
excessoftheirlowexportearnings,derivedessentially fromagricultural
products,andtheyareprogressively reducingtheLDCs'capacityto
importthecapitalgoodstheyneedtobeabletodevelop.
TheEuropeanCommunityisgivingincreasing exposureinitsdevelopment
policytoaidforthepoorest,whetherintheformofaidfromthevarious
EDFs,aidtonon-associated developing countriesorfoodaid.Forexample,
thefoodaidincerealssuppliedin1980totheLDCsrepresents almost
40%ofallavailabilities ,butthisisstillnotenoughandanexceptional
programmewillhavetobesetupverysoon.Inthefaceofthe'LDCs1
short-term problems,foodaidshouldbetheCommunity'sprimeinstrument,
sinceitwillhelptomeetpartoftheessentialfoodrequirements andwill
alsoservetomaintainthebalanceofpayments,whichisindeficiteverywhere .
Requestsforemergencyaidarefarinexcessofavailableresources and
increasedfoodaidisessential (1)toimproveasfaraspossiblethefood
situationinthoseregionsof■LDCswhicharecurrentlyexperiencing
excessive anddramaticfoodshortages,oftenfurtheraggravated bypolitical
eventsresultinginaninfluxoftotallydestituterefugees.
TheCommission obviouslyrecognises thattheworseningworldfood
situation doesnotaffecttheLDCsalone.Overall,itconsidersthat
theCommunitycerealsaidprogrammeisnotbigenoughtocopewith
requirements .Accordingly,ithasproposedthatthequantityearmarkedin
thebudgetbeincreasedby25%(from927,663tto1,160,000t).Ithas
alsoproposedthataidshouldbediversified (intovegetableoil,sugar
andotherproducts).TheCommission canonlyrepeatitscallforits
proposalstobeadoptedbythebudgetauthority whenthe1982budgetis
finallyadopted.
(1)Initsspecialreportof7August1981,FA0pointedoutthat11
ofthe23countriesquotedashavingabnormalfoodshortageswereLDCs.

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3.POSSIBLE ACTION:ALLOCATION OFEXCEPTIONAL FOODAID
Exceptional foodaidforthesecountries mustactascatalyst.TheCommission
thereforeproposes aspecialallocation offoodaidfortheLDCs,tobe
carriedoutusingalltheresources andinstruments ofCommunityfoodaid
-inparticular procurement ontheCommunityorworldmarketwherenecessary,
withprioritybeinggiventootherdeveloping countries,andtheprovision
ofcerealproducts,butalsooleaginous orleguminous productsifappropriate :
allthisisaimedatachieving anoptimummatchbetweentheproductsavailable
andactualrequirements andatintegrating aidasmuchaspossibleinthe
development process.
4.PROPOSALS
BearinginmindtheCommunity'sbudgetavailabilities ,theCommission proposes
thattheCouncil .andtheParliament shouldconsiderthepossibility ofallocating
exceptional foodaidworthaminimumofAOmillionECUtotheLDC's.
Ifallthefoodaidweretobesuppliedintheformofcereals,thisfigure
wouldcorrespond toapproximately 230,000tofcereals C1)or4.4%ofthe
LDCs'importrequirements (seeannex).
5.CONCLUSION
Toconclude,inviewoftheparticularly seriousfoodandbalanceof
paymentssituationintheLDCs,theagreementof
theprincipleofanexceptional foodaidallocationisproposed.
Thisallocationof40millionECUwillcoverthesupplyofvariousfood
products (essentially cereals,butalsooils,legumesorsugar)tothe
populationoftheLDCs,afterconsultation withthecountriesor
organisations concerned .Thisfoodaidwillbedelivered CIForfreeat
destination .
(1)Onthebasis,ofthe1982budgetassumption .

4
Thefinancingofthisexceptional foodaidallocation,winchtheCommission
estimateswillcost40millionECU,istobeincludedinthedraftbudget
amendment no.2/1981.

ANNEX
Estimated cereal
importrequire-
ments
(average78/79/80)
ΤBalanceofpaymentssituation (1979XUS 2million)
ListofLDCs Balanceofpayments
deficitDeficitonbalanceof
exportsofgoodsand
services
1.Afghanistan 300,000- -
2.Bangladesh 1,874,000 -440 -51
3.Benin 68,000- -
4.Bhutan 5,000-
5.Botswana - +165 +29
6.Burundi 20,000- -
7.CapeVerde 52,000- -
8.CentralAfr.
Republic20,000 -17 -10
9.Chad 40,000- -
10.Comoros 26,000- -
11.Democratic
Yemen155,000 -33 -28
12.Ethipia 390,000 -224 -39
13.Gambia 50,000 -41 -51
-14.Guinea 167,000- -
15.GuineaBissau 53,000- -
16.Haiti 174,000 -59 -26
17.LaosPOR 63,000- -
18.Lesotho 157,000-
I9.Malawi 120^000 -189 -66
20.Maldives 5,000- -
21.Mali 160,000 -28 -21
22.Nepal- 9 4
23.Niger 41,000- -
24.Rwanda '17,000 +46 +19
25.Samoa - -
26.Somalia 310,000 -206 -134
27.Sudan 325,000 -239 -28
28.Tanzania 237,000 -478 -76
29.Uganda 117,000 +27 +6
30.UpperVolta 79,000-
,-
31.Yemen
TOTAL185,000
5,210,000-242 -84