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which averaged about $27 billion annually during 1980-84.^/ The adage

that "Trade is better than Aid" is clearly demonstrated with regard to agriculture.

39. Many of the international initiatives to increase the benefits of agricultural trade including international commodity agreements, and special trade preferences, often address the symptoms rather than the problem itself--inappropriate policies in both the industrial and

developing countries. For example, international commodity agreements are costly and often degenerate into efforts by producer groups to raise

rather than stabilize prices and incomes. Compensatory arrangements, such as the IMF's Compensatory Financing Facility, are superior instruments for promoting stability in earnings. Regional schemes which provide trade

preferences to a limited number of countries can erode the interest of the beneficiaries in promoting general trade liberalization.

40. Increased trade liberalization will help developing countries attain faster rates of economic growth and will also bring benefits to industrial countries as well. Less government intervention will help stabilize international prices and assist all countries in attaining their common objective of more stability in farm incomes and prices.

41. Preparations are underway for negotiations regarding

agricultural protection in a new round of GATT negotiations. There seems to be increasing recognition that existing agricultural policies will lead

to higher and higher costs of protection and greater instability in agricultural markets and trade. The World Development Report concluded that:

"What Governments must be willing to negotiate about are the degrees of protection provided by their domestic price and

income support programs and the effects that these programs have upon production, consumption exports and imports and

international market prices."

Conclusion

42. The Bank strongly supports an expansion and liberalization of the world trading system to help stimulate economic growth. In this connection, the President's Report to the Development Committee in April

1987 pointed out that the GATT Uruguay Round provides an excellent opportunity to liberalize trade in agriculture and change agricultural policies through improving market access and the reduction of production and export subsidies. Given the significance of industrial country

agricultural policies to both developed and developing countries economic prospects, the President's Report called on the Ministers "to consider how

they can strengthen the resolve of their governments to modify agriculture policies and promote freer trade in agriculture."

* * *

SOA 06/04/87

ANNEX 1:

Page 1 of 4

First/sine. 83 rorthcom! r>B Meetings Meetings

Past Forthcoming

Meetings Meetings Joint coordinating mechan i »m» S.ctor meetin Loc>| ,;d coordln,tion ,ffort.

Angola

Meetings focussing on emergency supply

■•"ifl*Btnt and rehabilitateon ■ a sues arc he Id weakly.

Feb/Mer 1983 Formal fortnightly meetings of the Forestry (M.r 1583); Nenobeto Da* (Feb 1994) 'Comite Miita' have tak.n place since Principal rods (Apr/Jun 1984); Touriam and Jan 1984. Franca, Germany, EEC, ifCP, cultural sub-sectors <JUn 1Q84); Health FAO, WFP, and the Bank participate. (Oct 1184); Rural dev.lopment (Mar/AuB 1905)

Dasai-Parakou high>ay (Mar 1986); Tnnaport (Mar 1987), TaIacomunicatlona (planned spring 1987); Quarterly •naetir.g. t>ka place on vater supply ind sanitation sector

Under conaideration. Government handles o»n aid coordination.

Periodic informal meetings of donors.

Semi-foriml local coordination meetings,

■ith Oovt. participation, in drought ralief, environment, and food aid.

Burk i na Jul 1987 1/ Covt. has organized informal coordination

meetings with donors active in the health sector. The Sank chaired ■ health aector meeting ,n Jan 1987.

Donor coordination tales place in emergency food aid, regular food aid, NCOe, and infrsslructure projects.

Burundi Feb 1984 Education mini RT to be scheduled;

Energy under conaideration. Informal monthly donor meetings to shar information. Ad hoc sectoral meetings with full Government participation.

Caineroon

Uccaaionai informal meetings hosted by Franca, U.K., and the World Bank

Cape Verd* Jun 1962

Dec 19B6 Water planned late June 1987 Regular formal meetings among agencies

of the UN system, including UNDP, WFP, UNICEF, FAO and WHO.

Jun 198O Jun 1987 Transport and petroleum sector masting!

to be coordinated by the Sank.

Dec 1985 Weekly meeting* in the health aector.

Cotton (May 1986); Petroleum r.fineri (Jul 1986). Food (Dec 1986);

Transport (planned May 1987).

Comoros

Apr 1982 Jul 1987

No regul

Ethiopi 1971 1973

Round tab I i

First/since 83 Forthcoming P,,t Forthcoming

Meetings Meetings Meeting. M-.ting. Joint coordinating «ch.ni... S.ctor ...tin,,. Loc,, ,-d coor<J; n,tion .ffort.

Transport •actor meeting pIanned.

WFP initiated Covt/donor meeting* in the reforestation and soil consarvition s.ctora.

Local consultations on amerg.ncy relief assistance have been frequent

Camfa i a Nov 1984

S.p 1985 2/

Regular bi-monthly meetings of

donors and Qovarnm.nt. Haalth (Dae 1984); Fi.h.rias (Jur, 1985);

Agricultur. and natar (achadul.d for Mar/Apr 1987} .

1«7 Mar 1987 Nov 1983

Dae 1984 Nov 1985

Ragul-r laating. of th. Joint Industry (Ma, 1986); Edocation ,m* ha.Ith Mon,torin8 Committ.a chair.d b, th. (Sap 1986). Vat.r (pl.nn.d Apr 1987);

Transport (pIannarf May 1967).

government. Centra I project

Monthly local donor Heatings.

monitoring unit also astabfished.

Apr 1986 3/

Mar 1987

On-going conaultations in agriculture, transport, poa.r and aster, prior to CG.

Agriculture planned Apr 1487; other s.ctor seating* to b. planned.

Monthly local donor meeting!

Guinea Hay 19S4

Fab 1985 2/

Apr 1985 4/

Health (Feb 1986); Agriculture snd fiaheri.a (planned May 1987); Wat.r aupply and sanitation (to be scheduled)

Semi-annual meetings for local aid coordination activities.

Ivory Coast

Annual ■■•ting fa.to.en Bank/UNDP on

agricultursl raaasrch and forestry. No formal aid coordination at the local lav.l.

K.nya 1970

Jan/Fab 1984 Apr 1986

Joint Monitoring Committ.. organised Agricultural (Apr 1984) after 1984 CG. Subcoirmi tte. on

Agricultur. meets frequently.

World Bank resident repr.a.ntative chairs frequ.nt but irregular meetings of donora health, population, agriculture. Other ad hoc ma.tings also held.

May 1984

Water and sanitation (June 1985);

Integrated rural development and employment generation (Jul 1986).

Monthly donor meetlnga lad by the UNOP.

'Gov.rnment/Donor Coordination Committee to Monitor Utiliiation of Food Aid and Other Eiternal Assistance Related to th. Drought"

established in June 1985.

Oct 1983 5/

Informal contacts a~onB local donor., particularly in th. agricultural snd haaIth sectors.

Madagascar 1982 Apr 1983 Nov 1984 Apr 1986

Road rehabilitation (S.p 1986); Fish.riaa (1985); Frequent meeting, on irrigition.

Par todic meetings Lon agriculturaJ policy.

Informal local ings organized b_y

the Bank's resid.nt representative.

ANNEX 1: Aid Coordination H.ch.nism, in Afric. Page 3 of

Roundtibles

First/sine. 83 Forthcoming Hastings Hastings

Past Fdtthcomi no

Hastings Meetings Joint coordinating mechir Sector meetin0a Lo<:,| ,jd coor{fjn,t; ffortj

Jan 1986 Oct/Nov 1987 1/

Fab 1984 Development Coordination Committee established aa rasult of 1186 CC Sectoral committees being established:

transport sector couhkt ttoe active.

Health (Jun, Sept 1986) Monthly informal donor coordiniti meetings orgtnind by tha UNOP.

Hal! Dec 1982

Nov 1965

I at* 1987 3/

Power (Jun 198S, M,r 1987); Indu.trial d.v't In-country RT r.via. ch.ir.d by (Oct 1986); Agricultural pric. policies th. lfOP/Co*t in December 1985.

(pl.no.d Apr 1967); Rural d.velopm.nt. Joint gov't/donor 8roUp on food aid and (tent. t,f 1987). „,..,,. policy r.forB B.<t> ,,H Mauritania Nov 1985

Fisheriaa, Watir supply and Irrigation

are plannad for 1987. World Bank/UTCP sponsor ragular nit4t I r>gs of ooriOrt _

19BO Hay 1985

1970s Jan 198S Har 1987

Sugar sector (Fab 1987)

organized by OOP.

July 1987

Niger

Agricultunl polici.. (Feb 1<J87); Transport (plan. Apr 1987); Haalth (plan. Apr/Hay 19B7) , Nigeria Hay 1971

Rwanda

Quarterly ti*a I th ore meetings.

Dec 1982

NGO'»(Jun lMSJjHighMj,.- (S.p 1985) ; Industry Monthly ...ting. - i th full gov ' t

(Jan 1986);Water and sanitation (Jan 1986,

Mar 1987); Agricultur. (H.y.Oec 1986); Popu- participation ch.ir.d in rot.tion by done lation and nutrition (Au0 1986); Agr. representatives.

E.tenaion (Fab 1987);Hinins (tent. May 1987);

Cansus/PW (tent, lite 1987).

Sao Tome I Print Dec 1985 Jul 1987 */ May 1986: rural development, fisheries,

energy, utir, transport, and problems of geographical isolation NGO'e (Nov 1986).

Senega I 1984

Har 1987 Inter*')niaterial Commi ttee, under Telelecomroun.citions (Dec 1964); Energy

chairmanship of the Head of State, (Jan 1985); Agriculture and OMVS poaer (Jun periodically reviews progress in the 1986); Human resources (Sep. Nov 1986);

implementation of the "Action Plan*. A Household energy conservation, Transport technical monitoring unit provides (Dec. 1986); Education, Tourism (scheduled

support. Spring 1987); Industry (planned Oct 1987);

Viter supply (planned 1988).

Bi-monthly

No formal local aid coordinitr

Sierra Leon Hay 1967 1/

1**>P organizes occasional meetings of

r"r;»»!■■> *?Io ■O-IC 303B" naa^on-*

II>O ■aJ3« CDao■>jatw jt3 asitc3 -■o"»%«■--c*-■•<• ff 093

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