The Brief History of ECO

and its Member Countries: Afghanistan, Azerbaijan, Islamic Republic of Iran, Kazakhstan, Kyrgyzstan, Pakistan, Tajikistan, Turkey, Turkmenistan and Uzbekistan.

Project Tile: Support to Economic Cooperation Organization (ECO) for the Preparation of a Regional Programme for Food Security

The Economic Cooperation Organization (ECO), an inter-governmental organization comprising Afghanistan, Azerbaijan, Islamic Republic of Iran, Kazakhstan, Kyrgyzstan, Pakistan, Tajikistan, Turkey, Turkmenistan, and Uzbekistan, have identified regional food security as one of the primary concerns. The ten ECO member states now cover a region of 7.9 million square kilometers inhibited by more than 363 million people of common cultural heritage in 2001, growing at an average annual rate of 1.72 percent. There are significant variations among the ECO countries and within each country in terms of food security and capacity to meet the increasing demand for food and agriculture products. Six of the ECO member countries are considered as low-income food deficit countries (LIFDCs) namely: Afghanistan, Azerbaijan, Kyrgyzstan, Pakistan, Tajikistan, and Turkmenistan.

The main objectives of ECO are: sustainable economic development of Member States; progressive removal of trade barriers and promotion of intra-regional trade; greater role of ECO region in the growth of world trade; gradual integration of the economies of the Member States with the world economy; development of transport and communications infrastructure linking the Member States with each other and with the outside world; economic liberalization and privatization; mobilization and utilization of ECO region's material resources; effective utilization of the agricultural and industrial potentials of ECO region; regional cooperation for drug abuse control, ecological and environmental protection and strengthening of historical and cultural ties among the peoples of the ECO region; and mutually beneficial cooperation with regional and international organizations.

Trade, being an important instrument for promoting regional cooperation, remains a priority area in ECO's scheme of work. The low quantum of intra-regional trade shows that there exists a big potential for diverting trade from non-regional sources to sources within the region. The promotion of mutual trade helps evolve complementary in the economies of the Member States and paves the way for pooling of resources to establish infrastructural links and industrial projects.

In pursuance of Article-IX of the Treaty of Izmir, ECO Secretariat shall initiate, coordinate and monitor the implementation of ECO activities and service all meetings of the Organization in line with the agreed documents and directives of the governing organs of ECO. The Secretariat Staff composed of the Secretary General, 3 deputy secretaries general, 6 directors, 3 assistant directors and other professionals and technical, administrative and support personnel. The total number of staff is 49. The agriculture sector has been dealt with mainly three staff members under the leadership of the Deputy Secretary General and the Directorate of Agriculture, Industry and Health.

Food security has been a long-standing and major goal of the ECO countries since the beginning of world food crisis in the mid 1970s and the World Food Summit-1996. Since that time sustainable agricultural development and enhanced self-sufficiency constitute an ultimate national objective in the ECO States. Despite the magnificent growth in agricultural production, especially for cereals (Over 88 million metric tons in 2001) together with the considerable improvement in infrastructure, distribution and social services in some countries, the ECO countries still far from being self sufficient in food production. Meanwhile they are net food importers. There was evidence that some improvement in domestic food output have taken place in these countries, especially in producing wheat, rice, barley, sugar cane, cotton, meat, milk and eggs.

While the incidence of poverty is not well known, evidence suggests the existence of poverty and food insecurity among some segments of the population and even in countries with relatively high income levels. Nomadic population with small herds, desert shepherds, landless labourers, families with small land holdings in rain fed areas and the unemployed urban population face occasional food security risks.

Although the average daily caloric supply per caput in the ECO member states was relatively high (2,700 kcal in 1994-1996), and declined to reach 2572 kcal in 1997-1999 (Lower than the developing countries level of 2680 kcal), there are significant variations among countries and within each country. An upper limit of 3490 kcal was reported in Turkey and a lowest level of 1800 kcal in Afghanistan) and within each country.

Agriculture sector has been major economic contributor to national economy of the ECO member countries. According to FAO estimates, it generates 23.4 percent of GDP employing 42 percent of the economically active population in the ECO region in 2000. The average annual growth in agricultural GDP reached 5.8 percent in 1999-2000. The industrial sector share to GDP in ECO region reached 30.4 percent in 2000 (A highest rate was 50 percent in Turkmenistan and the lowest was 1.9 percent in Uzbekistan), with an average annual growth equals 10 percent in 1999-2000. However, there are variations among the countries within the region. While as high as 39.4 percent of the Kyrgyzstan’s GDP comes from the agriculture and forestry sector, only 9.2 percent of the Kazakhstan’s GDP is generated by agriculture and forestry sector. Although there are variations in contribution of agricultural sector in the national economy in the ECO member countries, these variations are likely to get reduced in near future as nearly half of the region’s population lives in urban areas and role of agriculture in the rural areas need to be more efficient and productive to meet increasing urban demand. However, the relatively low level of only 26 percent land being cultivated in 2000 as compared to 49 percent potential cultivable area indicates the prospects for increasing agricultural production through both intensification process and expansion of cultivated area.

Food imports in ECO region valued at US$ 9,588 million in 1999, and declined dramatically to reach US$ 5,939 million in 2000. Total exports (fob) in ECO countries reached US$ 69,643 million in 2000, meanwhile the reported total imports (CIF) was US$ 83,016 million with a net balance deficit of about US$ 13,373 million. In general, total exports of the ECO region cover about 83.9 percent of its total imports in 2000. Major farm products of the ECO member countries in 2001 were wheat, sugar cane, sugar beets, seed cotton, potatoes, tomatoes, and barley, rice, meat, milk, and milk products.

More recently (July 2002), RNEP prepared a draft framework for technical assistance for sustainable agriculture and food security in selected countries in ECO region. The Report discussed the Agricultural Sectors in the ECO Countries, the Common Issues and Developmental Priorities, the Major Priorities for Collective Actions, the Thematic Areas and Criteria for Programme/Project Identification, the Identified Project Ideas, and the Regional Project Priorities.

It was found that, the common issues and challenges facing the ECO Member Countries with special reference to the Central Asian Countries include: the need for an overall strategic framework for agricultural development; the problem of over-lapping and contradictions in the management of the agricultural sector; inadequate policies and programmes for achieving sustainable food security and poverty eradication; inefficient water resources management; pollution and environmental issues; dominance of cotton/grain production in the cropping pattern; livestock development; land distribution and property rights; market distortions; inadequate marketing facilities and rural finance; under-utilized agro-biodiversity; and insufficient assessment of the implications of the accession to WTO.

Many of the above mentioned obstacles could be undertaken within the framework of a “Regional Programme for Food Security in the member countries of the ECO”. However, the formulation of an agricultural development programme for the ECO Countries should take into consideration the country’s technological and socio-economic conditions and its surrounding environment. For example, the Central Asian Countries are currently pursuing macro-economic and sector reform measures. Most of these countries are pursuing long term strategic planning for economic and sector development. Harmonization of the strategic planning techniques, methodology, data base and indicators are important for future cooperation and possible economic integration among the countries of the sub-region.

The major priority areas for collective actions for ECO Member Countries seem to be: (1) Sustainable food security at the national and household levels; (2) Management of natural resources with special reference to water management, efficient utilization, and pollution; (3) Enhancing national technical and institutional capabilities in the area of policy design, analysis and long term strategic planning under the new market oriented system; (4) Improve marketing and agro-processing facilities including market information and early warning systems; (5) Harmonization of agricultural and trade policies among the ECO Member Countries to enhance the sub-region’s food security and agricultural intra-regional trade; (6) Enhancing crop and livestock production, productivity and intensification; (7) Development of rangelands and animal feed production; (8) Improvement of the plant protection and animal health quarantines and facilities/institutions; (9) Improving fisheries and aquaculture sectors; (10) Biodiversity and Forestry development; and (11) The accession to the WTO and its implications for internal policy reform. In addition, the following Priorities are also crucial to some countries: (1) Diversification of farm production and technology transfer at the farm levels; (2) Improving market oriented rural finance system and institutions; (3) with special reference to micro-lending schemes; (4) Improving land distribution and property rights regulations and implementation; and (5) Development of the livestock and poultry sectors; (6) Human development and capacity building for farmers, extension specialists, civil societies practitioners, and policy analysts; (7) Strengthening the role of women in sustainable rural and agricultural development; and (8) Enhancing off-farm income generation schemes.

As a follow up to the World Food Summit, and particularly the Declaration on World Food Security and the Plan of Action, FAO provided assistance to several countries including member countries of the Economic Cooperation Organization (ECO), in the preparation of the national Special Programme for Food Security (SPFS). The SPFS is already operational in Pakistan and is under formulation in three other ECO countries. The national food security strategies elaborated as a follow up to the World Food Summit emphasised the need to improve land fertility, increase irrigation efficiency, raise crop and livestock productivity, streamline market and price policies for agricultural inputs and outputs, strengthen research and extension and rationalise the credit system in support of market-oriented agriculture. In order to make agriculture more efficient and to provide a better environment for regional food security, policy and institutional reforms are essential. Early results obtained from the implementation of those Programmes in the ECO Region, increasingly pointed to the real need to establish measures at the regional level, essentially to complement and underpin sustainability of the achievements of the food security and agricultural development at national levels. In general ECO countries have good potential to further develop their agriculture and enhance their food security.

The Economic Cooperation Organization (ECO) has invited the Food and Agriculture Organization of the United Nations (FAO) to participate in a joint programme identification mission to selected ECO Countries. The FAO collaboration stems from the importance it gives to the role of regional economic groupings in supporting national efforts for the achievement of sustainable food security objectives as indicated in the 1996 World Food Summit (WFS) Declaration. This role was stressed during the WFS: five years later held in Rome, 10-13 June 2002 where specific Side-Events were held to discuss regional food security strategies for regional economic groupings. A specific Side-Event Session was devoted to discuss a draft Regional Strategy for Agricultural Development and Food Security for ECO Member Countries.

The First ECO Ministerial Meeting on Agriculture was held in Islamabad -Pakistan on 23-25 July 2002. The Meeting was attended by the Ministers of Agriculture of Transitional Islamic State of Afghanistan, Islamic Republic of Iran, Islamic Republic of Pakistan, Republic of Tajikistan and Republic of Turkey and delegations of Republic of Azerbaijan, Republic of Kazakhstan, Kyrgyz Republic, Turkmenistan and Republic of Uzbekistan. The meeting requested the ECO Secretariat, in coordination with the Member States to finalize the formulation of a regional agricultural development and food security strategy in line with the national strategies/plans of the Member States. Moreover, the meeting appreciated FAO’s envisaged support to the Secretariat in the formulation of a Regional Programme for Food Security and Agricultural Development for ECO Member States which has recently been initiated by ECO/FAO, based on the decision taken in the Side-Event on “Regional Food Security at Work”. The meeting requested the ECO Secretariat to pursue this initiative with FAO and the Regional Financial Institutions to spearhead the process. In that regard, ECO Secretariat requested FAO technical assistance for the preparation of a Regional Programme for Food Security including projects for donors’ consideration. Such programme/projects will be discussed in a meeting to be held in one of the financing institutes with the participation of the ECO and FAO as well as other donors/financing institutes.

A Regional Programme for Food Security is highly needed to increase food availability in the ECO region and in the countries themselves. Such a Programme would be directed to: enhancing national food security programmes and actions of ECO member countries, for increased agricultural production and productivity; enhancing trade of agricultural commodities among ECO member states, and between the region and the rest of the world, and harmonize food security policies including through the strengthening of the institutional structures and set up.

ECO is convinced about the relevance, appropriateness and long term value of the RPFS, and has made efforts to initiate its formulation, firstly by ensuring the member states’ interest (which was clearly obtained during the First Ministerial Meeting on Agriculture), and secondly by securing the interests of donor and funding agencies in providing support and assistance in its envisaged implementation. ECO has made approaches to Donor Agencies such as the Islamic Development Bank (IDB) for support to implement the RPFS. These Agencies have expressed initial interest in the RPFS, and requested that the necessary proposals be prepared to provide the basis for establishing Agreements in providing their support.

The activities envisaged to be carried out in preparing the proposals are interdisciplinary in nature, with a wide variation in requirements, particularly human and financial resources for their effective implementation. Logical frameworks in formats of Donors would have to be carefully prepared for, planning, implementation and evaluation, and more importantly to facilitate negotiation and mobilization of resources for their implementation. In order to ensure ownership, participation and commitment to the undertakings, the ECO Secretariat and Member States would have to be involved in their preparation.

However, currently, neither ECO as the lead Unit in the implementation of the RPFS, nor most of the Member States possess adequate technical and financial resources and mechanisms necessary to prepare the required frameworks for donor consideration, and ensure their implementation and monitoring. For this reason the Secretary General of ECO visited FAO Headquarters in Rome in June 2002 and sought assistance to enhance such capacities in ECO and Member States, firstly, to prepare project proposals for ECO to present to donors, especially the IDB for funding, and secondly, to enable the ECO Secretariat and Member States to manage and monitor the process of implementing the RPFS.

It was in this context, further to the commitment taken as per the World Food Summit Plan of Action, and with the collaboration of a number of regional Inter-Governmental Organizations (IGOs), that technical assistance is considered to formulate Regional/Sub-regional Programmes for Food security (RPFS) for ECO Region, based on the National Strategies for Agricultural Development in their respective member countries. The Council of Ministers of Agriculture of ECO Member States gave their political approval for the formulation/preparation of the Programme.

The overall objective of this project is to assist the ECO Secretariat and member countries in the formulation of a Regional Programme for Food Security (RPFS), including regional, sub-regional and national components, as well as in the strengthening of capacities at the ECO Secretariat and in member states to ensure a successful and sustainable implementation and monitoring of the RPFS.

1. to strengthen the capacities of the ECO Secretariat and ECO Member States’ focal points in situation analysis, formulation, appraisal, monitoring and evaluation of programmes and projects, particularly activities related to the formulation of the RFPS and its sub-programmes and projects;.

2. to assist the ECO Secretariat, with the full involvement of national focal points, in updating and finalizing the Regional Strategy for Agricultural Development and Food Security in the ECO member countries and the Sub-Regional Strategy for Central Asian Countries (including Azerbaijan), based on the draft documents prepared and presented at the special Side Event during the WFS-fyl in June 2002.

3. to assist the ECO Secretariat and member countries in the formulation of the RPFS, including preparation of bankable development projects at country, sub-regional and regional levels ready for submission for donor funding.

(i) A strengthened capacity in the ECO Secretariat and focal points in member countries, in situation analysis, formulation, appraisal, monitoring and evaluation of programmes and projects.

(ii) A finalized and updated Regional Strategy for Agricultural Development and Food Security for the ECO Member Countries, and A Sub-Regional Strategy for Central Asian Countries (including Azerbaijan).

(iii) A Regional Programme for Food Security (RPFS) for the ECO region, including a set of priority bankable projects (at country, sub-regional and regional levels) ready for submission for donor funding.

The priorities which are to be addressed in operationalizing the RPFS are the following:

Updating and finalization of the draft Regional and Sub-regional Strategies for Agricultural Development and Food Security; formulation of a Regional Programme for Food Security, including preparation of selected priority bankable projects to spearhead donor consideration. Considering the importance and need for sustainability of the achievements of the project, these priorities are to be addressed in a participatory way, i.e., with the direct involvement of the ECO Secretariat and the Member States. The project Work Plan therefore will start first with the upgrading of skills of the expertise in ECO Secretariat and Member States who will be directly involved in addressing the priorities of the RPFS, stated above.

The work plan, as presented in Table 1, will make provision for the following activities:

A strengthened capacity in the ECO Secretariat and the focal points in member countries in situation analysis and in programme/project formulation, appraisal, monitoring and evaluation.

An Up-dated Regional Strategy for Agricultural Development and Food Security in the ECO Region and the Central Asian Sub-Region.

A Regional Programme for Food Security (RPFS) for the ECO region, including a set of priority bankable projects (at country, sub-regional and regional levels) ready for submission for donor funding.

(a) Review the priority areas and themes identified by the revised Regional Strategy for Agricultural Development and Food Security in the ECO Region and by the revised Sub-regional strategy in the Central Asia Sub-Region. Review on-going activities implemented by national and donor-funded programmes in the Region, which are of policy and programming nature in Food Security, agricultural production and trade, and identify those that will have implications for the implementation of the activities proposed in the ECO-RPFS

(b) Prepare a Regional Programme for Food Security (RPFS) with special reference to the activities that are to be carried out at regional level and prioritize the areas of action, (sections/categories and actions under each), taking into consideration those that are time specific.

(c) Prepare Terms of Reference, recruit and field national consultants and TCDC Expert to carry out in-country Review of Reports, policies, strategies and programmes of member states in the region. Use will be made of the available information based on the joint FAO/ECO mission to selected Central Asian Countries. Other countries will be visited and work to be initiated by national experts.

(d) Assemble secondary information and other data on comparative advantages of member states to provide supplies of selected agricultural commodities in the Region. Review also Assessment of the global situation and outlook for agricultural commodities prevalent in the region. Analyze information and data, and prepare a Report on the findings.

(e) From the above Reports and other relevant information on priorities of regional/sub-regional dimensions, identify priority areas for investment and development at national and regional levels, with the focus on promotion of agricultural trade and production;

(f) Prepare brief on each priority area, indicating among others the relevance to food security, scope, targets, approaches, benefits and contribution to trade or agricultural production in general, and food security in particular, basic requirements, and possible involvement of development partners;

(g) Based on the identified priority areas prepare specific Terms of References for identification or formulation mission for bankable projects directed at promotion of agricultural trade and production within the Region/Sub-region, and between the Region and the rest of the world;

(h) Recruit and field identification and formulation mission: prepare work plan of Mission; carry out review of the reports on assessment of policies, strategies and programmes of member states in the Region; comparative advantages of member states to provide supplies of selected agricultural commodities; briefs on priority areas identified for support under the RPFS; undertake field visits as may be necessary to generate further data and information; identify and prepare proposals for development into projects and programmes for donor funding; carry out appraisal of proposals identified involving ECO and member countries (Focal Points), and consolidate them into a form of an Action Programme for submission to donors for further action, including mobilization of resources. Prepare and annex to the Programme, at least three or four undertakings (including elements and costs).

Months	1	2	3	4	5	6	7	8	9	10	11	12
Identification/Recruitment of consultants
Preparation and finalization of the TORs
Preparatory workshop in consultation with donors
Review reports, policies and programme in the member countries
Assemble information, data and prepare country reports
Carry out capacity assessment, and prepare program for capacity building
Undertake training programme (first workshop)

ECO/FAO Project Document