SPTA 2008 SPTA 2008/18
Tenth Meeting of the CPM Informal Working Group on Strategic Planning and Technical Assistance
07-10 October 2008 – FAO, Rome, Italy
FRAMEWORK FOR THE SUSTAINABLE RESOURCING OF THE IPPC
Agenda item: 10.5
- Introduction
The problem of a sustainable financial basis for the IPPC has been discussed for many years in the [I]CPM. At CPM-3, Gary Koivisto gave a presentation on a “Promotion strategy for the IPPC trust fund” which highlighted the need to look at the revenues of the IPPC as a whole and not only from the trust fund perspective alone. He indicated that an IPPC Promotion Strategy will be necessary whichshould assist Contracting Parties in canvassing for contributions in to the Trust Funds. He reported that such a strategy would be presented to CPM- for discussion and, if appropriate, for decision. A discussion paper by Gary Koivisto is annexed to this document .
- Action
The SPTA is invited to:
- Take note of the analysis provided in the annex
- Comment on the proposal for a sustainable resourcing of the IPPC
- Recommend, if appropriate, on how to proceed with this matter.
Annex
FRAMEWORK FOR THE SUSTAINABLE RESOURCING OF THE IPPC
9/29/2008
This paper outlines a framework that describes the essence of the financial sustainability challenge facing the IPPC and measures it could employ to address this challenge (i.e. maximizing core funding from FAO, contributions into the IPPC Multilateral Trust Fund, and contributions to FAO Trust Fund projects).
The FAO Trust Fund projects include valuable contributions to the IPPC such as the Associate Professional Officer (APO) program, as well as contributions to cover specific purposes such as developing country attendance at CPM. As well some contracting parties have provided valuable in kind contributions of staff, material items, and costs related to the hosting of meetings.
In the Report of the 98th Session of the Programme Committee to FAO Council it was noted in paragraph 19 “capacity building deserved much greater emphasis in future, and this required both an overall FAO strategy for capacity building and a global strategy for phytosanitary capacity building, drawing fully on the potentials of FAO, the CPM and its membership.” Later in the same paragraph 19 it was noted “the Committee suggested that the potential for multilateral trust funds with a broader scope than the present IPPC multilateral trust fund should be further explored.” Then in paragraph 26 of the same report, FAO Programme Committee acknowledged that funding options “could not be properly addressed without the development of a multi-year funding strategy that clearly indicated resource requirements, potential funding sources and expected outputs and benefits”. This Programme Committee report clearly provides FAO’s direction and support for the IPPC CPM, Bureau and the Secretariat to develop the required strategies leading to the sustainable multi-year resourcing of the IPPC Business Plan.
Background:
As an article 14 Convention under the FAO Constitution, the IPPC receives core funding from the FAO, and must abide by the financial rules governing FAO and Article 14 bodies. It has been realized for several years that this FAO core funding is insufficient to meet the objectives of the IPPC business plan, particularly in the goal of capacity building for developing countries.
The FAO Director General, in a speech to CPM 2, has acknowledged the insufficient core funding of the IPPC. He then went on to say that despite the importance of the IPPC to FAO, it was up to the contracting parties to address the increased costs brought on by the growth in the number of contracting parties and in demand for IPPC goals as identified in the Business Plan. In the report of the 2007 independent external evaluation of the IPPC, the independent evaluators too identified the chronic and critical insufficient resources provided to the IPPC, but did not make specific recommendations as to how to rectify this. It did however make a general recommendation that “The Secretariat should have a more solid resource mobilization strategy, stressing the need for multi-donor trust funding over bilateral funding”.
As part of its coordination mandate, the STDF is in the midst of evaluating how the demand and the supply of SPS related technical cooperation may be matched. A preliminary conclusion as outlined in WTO report G/SPS/GEN/812 (dated November 22, 2007) noted in paragraph 30 that “This trend towards greater donor funding in the SPS area, and in the trade area more generally, was confirmed during the regional review of Aid for Trade. Important new commitments in the Aid for Trade area are coming on-stream and within aid budgets the area of standards is being given further attention. Against this background, mechanisms to improve co-ordination among assistance providers and beneficiaries may take on greater importance.” TheIPPC Secretariat attends STDF committee meetings along with other representatives of FAO.
Several initiatives were undertaken to identify mechanisms that could be used to provide additional sources of funds beyond that provided by FAO, but many of these have been ruled out. However a mechanism, the IPPC Multilateral Trust Fund as approved by ICPM # 5, remains as one of the most viable, and a mechanism commonly used by other Conventions. This IPPC Multilateral Trust Fund is a legitimate mechanism and it must be promoted in a way so that multi-year resources are donated providing for predictable planning and delivery of the program.
Presently core funding as provided by FAO accounts for less than half of the required resources needed to implement all of the goals of the CPM 5 Year Business Plan. Since it’s inception in 1997, growth in the CPM’s (ICPM) membership has increased rapidly and with increased growth comes increased demand for the services of the IPPC. Currently there are 170 contracting parties, and soon more are expected. Continued support from the FAO Conference is required to maximize the available FAO Core Funds. This is all the more important as FAO undergoes its “Reform with Growth” initiative.
Over and above the FAO core contribution, an additional $1.5 Million dollars is targeted for the planning and delivery within 2009 and $3.0 Million for 2010 and beyond.
Principles:
No one single measure or addressing only one funding mechanism can lead to sustainable
resourcing for the IPPC. Yet there are multiple measures that if employed would collectively lead to the multi-year resources required for the proper planning and deployment of funds needed to meet all of the CPM goals.
In order to ensure proper corporate planning and management of the budget, commitment to donate multi-year resources should be identified within the CPM planning and budget cycle and allowing for the carry over of resources from one budget year to the next.
In considering multi-year contributions, donors must realize that proper planning and delivery of the activities of the CPM Business Plan requires 3 or more years of financial obligations.
It is the responsibility of all contracting parties as well the Secretariat and the Bureau, to ensure that all of the goals of CPM Business plan can be achieved in a sustainable manner. It is the representatives from the contracting parties themselves who know their country’s governance and infrastructure and thus must be the ambassadors of IPPC within their own country and region and to promote the IPPC and to seek and secure resources.
All contracting parties including those from developing countries can assist in the achievement of financial sustainability. In particular when traveling to attend the CPM, its subsidiary bodies or other working groups, participants who regularly are funded via IPPC resources should first check to see if they qualify for support via other funding sources. In other words contracting parties should consider funding via the IPPC resources become their last request, not their first.
The FAO Trust Fund projects are an invaluable source of resources to the IPPC, and they need to be administered and managed in a coordinated way that enables proper fiscal planning and predictability.
Resources can be contributed from many sources and in many ways, including government agencies, existing multilateral bodies, NGOs and industry, provided that the contributions can go to meet one of the CPM planned activities and that any obligations as stipulated by the contributor could be met. The FAO standard procedures would provide proper fiscal accountability to the donor.
Considerations for measures:
The importance of the IPPC must be understood by each member country’s FAO Permanent Representative, and they must support and argue for increased core funding to the IPPC at all FAO bodies.
As capacity building is a major priority for the CPM and significant component within the growth in demand, it is crucial that a capacity building strategy be developed on an urgent basis. Other assistance providers and countries are moving forward with their own phytosanitary or SPS capacity building strategies, so this IPPC capacity building strategy must be designed to be complimentary and build on these strategies by identifying and using the core strength and phytosanitary expertise found throughout CPM and the Secretariat. In the report of the 2007 independent external evaluation of the IPPC there are recommendations concerning the delivery of a phytosanitary capacity building program, however these recommendations were not fully supported by SPTA. In December 2008 there will be an OEWG to develop an IPPC capacity building strategy.
The Secretariat must coordinate closely with FAO, STDF and other multilateral bodies so that the capacity building goals of the CPM are aligned and accepted amongother assistance providers, donors and beneficiaries.
TheSecretariat and Bureau should ensure that potential funding bodies are approached in a strategic manner to determine interest in providing funds to the IPPCTrust Funds. This effort involves participation at key assemblies (e.g. Aid for Trade). Many agencies could be identified to represent the interests of the IPPC including contracting parties and Secretariat staff, plus FAO and other multilateral bodies.
The development of an IPPC promotion strategy is identified in the 5 Year Business Plan. This promotion strategy must also consider promotion required in support for the IPPC Multilateral Trust Fund and the FAO Trust Fund projects.
Several contracting parties cited that their internal policies did not allow them to contribute to the general goals of the IPPC Multilateral Trust Fund. In order for them to convince their funding agencies to contribute to any of the specific goals of IPPC, a paper on “Project Oriented Planning for the Multilateral Trust Fund of the IPPC” was presented to and accepted by CPM 3. It is the responsibility of contracting parties to pursue the resources required to implement these projects and to propose other projects for approval and funding.
An information/promotion kit that clearly and concisely articulates the IPPC and why a donor would want to contribute to any of the Trust Funds will assist contracting parties in their “canvassing” for contributions. There are existing documents such as the 5 Year Business Plan which would be critical components of this information kit. Some existing documents, including the “Guide to the IPPC” should undergo a revision. A concise and catchy leaflet should be designed and made available that explains the IPPC and attracts the attention of potential donors. These kits should be designed in such a way that would allow for country specific information and appeal.
Information must be available in all of the official languages of the FAO. In order to minimize costs by reducing unnecessary printing and distribution, as much as reasonable, these information tools should be made easily accessible on the IPPC website and distributed electronically. Contracting parties could print these documents as required.
A central inventory/catalogue of external pools of resources that explain their objectives and relativity to the goals of the CPM would assist in the universal understanding by CPM.
The APO program has been successful in the past and could be an important mechanism for some increased staffing within the Secretariat that would contribute to the goals of the IPPC. However it must be well managed in order to ensure value for the participant, contributing country and to the Secretariat. The APO program must be clearly articulated to all of the contracting parties.
As communication techniques become increasingly sophisticated, the need for all Secretariat staff to be located in Rome may not beas critical. Consideration should be given to allow some Secretariat staff to be located in their home cities around the world and to travel to Romeon an as required basis. This could result in overall less cost to the donor country andmay increase the interest in contracting parties donating experienced, competent staff that could immediately contribute to Secretariat duties.
During CPM meetings several program decisions and commitments are made without “real time” knowledge to the CPM of the financial impact of these decisions. A financial committee should be formed so that the CPM can be made fully aware of the financial impact of these decisions.
The IPPC Secretary has requested a study of comparable conventions to the IPPC be carried out. The outcome is to have recommendations for “Best Management Practices” that could be recommended to CPM for either cost avoidance (e.g. biennial versus annual meetings) or innovative resource donations (e.g. the Codex standard setting procedures).
In order to achieve a thorough understanding by all contracting parties of the various Trust Funds, their scope and mechanisms by which to contribute to them, an information and training session on this “Framework for the Sustainable Resourcing of the IPPC” and how contracting parties can deliver it should be planned for CPM 4.
Measures to address the IPPC financial sustainability challenge:
There are three strategies that the IPPC should employ when designing measures to address the financial sustainability challenge. They are:
1) External Promotion: To ensure that the goals of the IPPC (as outlined in the Business Plan) are properly understood and easily explained to FAO, and to potential donors.
2) Co-ordination and strategy development: For the IPPC to be effectively organized and strategically linked with donor agencies, recipient contracting parties (capacity building) and other SPS and standard setting bodies.
3) Member training: To ensure uniformity and common understanding of the required measures. All contracting parties along with the Secretariat and the Bureau are responsible for addressing the financial sustainability challenge.
#MEASURERESPONSIBILITYTIME
EXTERNAL PROMOTION1 / Develop an IPPC promotion strategy / Secretariat/Bureau / CPM 4
2 / Ensure all FAO Permanent Representatives are supportive of the goals of the IPPC and will argue for increased core funding / Contracting Parties / CPM 4/ongoing
3 / Design an IPPC information/promotion kit and electronic distribution to the representatives of the contracting parties / Secretariat / CPM 4
4 / Update the booklet entitled Guide to the International Plant Protection Convention / Secretariat / CPM 4
5 / Design a leaflet that cleverly and simply describes the IPPC and why an Agency would want to contribute to it / Secretariat / CPM 4
CO-ORDINATION & STRATEGY DEVELOPMENT
6 / Ensure coordination efforts with FAO, the STDF and other agencies / Secretariat / CPM 4
7 / Identify and attend in a coordinated manner strategically important funding agencies and conferences to present case for the various IPPC Trust Funds / Secretariat/Bureau + Contracting Parties / SPTA 2008 + CPM 4
8 / Fund projects outlined in the CPM 3 approved “Project oriented planning for the multilateral trust fund of the IPPC” paper. / Contracting Parties / Ongoing
9 / Develop and facilitate the implementation of an IPPCcapacity building strategy. / Secretariat/Bureau + Contracting Parties / OEWG on Capacity Building Strategy, CPM 4 + ongoing
10 / Undertake a review of similar Conventions to determine fiscal and other management strategies and provide a series of recommendations of “best management practices” that could be considered by the CPM / Secretariat / SPTA 2008
11 / Inventory existing external funding sources, with their purpose and limitations. / Secretariat / SPTA 2009
MEMBER TRAINING
12 / Create and distribute to contracting parties a paper describing the various Trust Funds, their intent and governance and how a donor could donate to it / Secretariat / CPM 4
13 / Create and distribute to contracting parties a paper describing how the APO program can and needs to be administered in order to maximize benefit to the officer, donor country and the Secretariat / Secretariat / CPM 4
14 / Consider the feasibility of some Secretariat staff not being in Rome / Secretariat / SPTA 2008
15 / Establish a CPM Financial Committee to track and report on a real time basis the financial impact of CPM decisions / Bureau / SPTA 2008
16 / Include in CPM 4 an agenda item to educate contracting parties on sustainable multi-year resourcing and how THEY can deliver it / Bureau/Secretariat / CPM 4