PROPOSAL TO AMEND THE OECD CRS CLASSIFICATION RELATED TO FOOD SECURITY AND AGRICULTURE IN LIGHT OF THE SDG 2

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1 Organisation for Economic Co-operation and Development Development Co-operation Directorate Development Assistance Committee DCD/DAC/STAT(2018)40 English - Or. English 18 May 2018 DAC Working Party on Development Finance Statistics PROPOSAL TO AMEND THE OECD CRS CLASSIFICATION RELATED TO FOOD SECURITY AND AGRICULTURE IN LIGHT OF THE SDG 2 At the informal meeting of the WP-STAT held on January 2018, FAO presented a proposal to amend the CRS purpose codes related to Food security and agriculture to improve its ability to track aid expenditures and activities related to the SDG 2 [DCD/DAC/STAT/RD(2018)1/RD2]. This note is a revised proposal, taking into account members comments. This proposal is presented for APPROVAL under the written procedure. If no objections are received by 8 June 2018, the proposal will be considered approved. Contacts: Giorgio Gualberti (Giorgio.Gualberti@oecd.org) Aimée Nichols (Aimee.Nichols@oecd.org) Valérie Thielemans (Valerie.Thielemans@oecd.org) Julia Benn (Julia.Benn@oecd.org) JT This document, as well as any data and map included herein, are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.

2 2 DCD/DAC/STAT(2018)40 1. Background 1. At the informal WP-STAT meeting on January 2018, FAO presented a proposal 1 to amend the CRS classifications related to food security and agriculture to improve the tracking of aid expenditures and activities related to the SDG 2 (end hunger). The proposal included both amendments to the CRS purpose codes and a new policy marker for food security. 2. This note refines the proposal presented in January taking into account the written comments received. Members generally supported the changes to the CRS purpose codes, but were cautious about the introduction of a food security policy marker, referring in particular to the ongoing review of the policy markers and the discussion on a SDG field 2. Consequently, the proposal presented here includes only the proposed amendments to the purpose codes. 3. Members are invited to review and approve under written procedure Section 3.1 (par.8), Section 3.2 (par. 12), Section 3.3 (par.15), Section 3.4 (par 17 and 18), Section 3.5 (par. 25) and Section 3.6 (par. 28) for changes to purpose codes. If no objections are received by 8 June 2018, the proposal will be considered approved. 2. Rationale 4. Starting in , the WP-STAT has approved several revisions to purpose codes to improve their alignment to SDG goals and targets. This process led to the creation of 11 new codes and adjustments to several existing codes on remittances, investment, noncommunicable diseases, humanitarian assistance and nutrition. 5. With respect to agriculture (including forestry and fishing) and food security, the CRS sector and purpose classifications were last updated in 1999 and have not yet been reviewed in light of the SDGs. However, in the context of the related reform of the nutrition purpose codes, approved in 2017 but have not yet entered taken effect, a household food security purpose code was created 4. To assure a coherent reform of the food security and agricultural codes, this proposal also includes modification to the code introduced in The proposal addresses some gaps in the CRS classifications specifically on: 1) food security policy and administrative, including food loss/food waste; 2) food safety and quality; and 3) human-animal-ecosystem health interventions. In addition, the proposal updates the notes on several codes in the 1 See DCD/DAC/STAT/RD(2018)1/RD2. 2 See DCD/DAC/STAT(2018)1 and DCD/DAC/STAT(2018)2. 3 See DCD/DAC/STAT(2015)10 4 See DCD/DAC/STAT/RD(2017)11 and DCD/DAC/STAT/M(2017)2

3 DCD/DAC/STAT(2018)40 3 sectors of agriculture, forestry and fishing with a more contemporary and accurate language. 7. The proposal is based on the following principles: ensure the feasibility of reporting by DAC members and other providers; minimise the burden on reporters/data producers in implementing changes; maximise the relevance for data users and aid tracking; minimise the structural breaks, particularly with respect to sector time series; and ensure the alignment with recently accepted proposals, such as the revision of nutrition purpose codes Summary of the proposed changes 3. The proposal 8. The proposal foresees the following changes to the CRS purpose codes: a) introduction of a new purpose code in Sector 430 for Food security policy and administrative and deletion of code b) introduction of a new purpose code in Sector 430 for Food safety and quality. c) updating of notes of purpose codes and in relation to the Human-Animal-Ecosystem Health Management interventions. d) updating of notes for purpose codes and to better specify food aid and emergency food aid programmes. e) updating of the notes of purpose codes in sector categories Agriculture (311), Forestry (312) and Fishing (313) interventions Creation of a purpose code in Sector 430 for Food security policy and administrative and deletion of purpose code Food security is defined as a situation that exists when all people, at all times, have physical, social and economic access to sufficient, safe and nutritious food that meets their dietary needs and food preferences for an active and healthy life 5. As such, food security is multi-sectoral, impacting activities that range from agricultural production, to storage and food processing, to food safety and transportation via roads, ports and other infrastructure. Food security also includes activities to reduce food loss and food waste. 10. The CRS does not currently include a comprehensive purpose code to classify Food security policy and administrative. It is proposed to create such a 5 FAO The State of Food Insecurity in the World Rome

4 4 DCD/DAC/STAT(2018)40 code 430XX under the category Other multisector in order to take into account the multi-sector /multi-dimensional nature of food security, and the importance of capturing these interventions as sector-allocable activities (Table 1). 11. The proposed new 430XX code includes Household food security programmes that were previously the focus of the code approved at the July 2017 WP-STAT meeting 6 (but not yet in effect). The change in the sector category addresses the concerns expressed by some members about the exclusion of this code from the CPA calculation. Including Household food security programmes in the proposed new code 430XX and deleting the code would resolve this issue. 12. The proposed changes are summarised in Tables 1 and 2 below. Table 1 - Creation of a purpose code 430XX on food security policy and administrative 430 Other multisector 430XX Food security policy and administrative Proposed clarifications/additional notes on Food security policy, programmes and activities; institution capacity strengthening; policies, programmes and activities for the reduction of food loss/waste; household food security programmes and activities; food security information systems, data collection, statistics, analysis, tools, methods; coordination and governance mechanisms; other unspecified food security activities. Table 2 - Deletion of purpose code DEVELOP- MENTAL FOOD AID/FOOD SECURITY ASSISTANCE Household food security programmes Proposed clarifications/additional notes on Short or longer term programmes that improve the access of households to nutritionally adequate diets. 6 DCD/DAC/STAT/RD(2017)11

5 DCD/DAC/STAT(2018) Introduction of a new purpose code in Sector 430 for Food safety and quality 13. Aid interventions supporting food safety and quality are significant and growing. Food safety refers to the absence, or presence in acceptable levels, of microbiological, chemical or physical hazards in food to prevent risks to the health of the final consumer 7. At present, a purpose code to identify such activities is absent. 14. It is proposed to address this gap through a new purpose code entitled Food safety and quality in the Other multisector category, given that food safety and quality interventions occur across the agri-food value chain in multiple sectors, including health, water and sanitation, agriculture, fisheries, agro-industry, etc. 15. The proposed changes are summarised in Table 3 below. Table 3 - Creation of a purpose code 430YY on food safety and quality 430 Other multisector 430YY Food safety and quality Proposed clarifications/additional notes on Food safety and quality policies, programmes and activities, including food inspection and certification; strengthening food safety/quality capacities and development of standards along the value chain; monitoring/surveillance and laboratory capacities; and delivery of information, communication, education Update of the notes of Purpose codes and with respect to Human-Animal-Ecosystem Health Management interventions 16. Human-Animal-Ecosystem Health Management represents a holistic approach to address complex challenges that threaten human and animal health, food security, poverty and the environments where diseases flourish. These problems threaten global health, economic well-being, and international trade. Many of the dangers stem from diseases circulating in animals and transmitted to humans by food or carried by vectors. It involves designing and implementing programmes, policies, legislation and research in which multiple sectors communicate and work together to achieve better public health outcomes. These interventions recognise that efforts by just one sector cannot prevent or eliminate certain problems: for example information on influenza viruses circulating in animals is crucial to the selection of viruses for human vaccines for potential influenza pandemics; drug-resistant microbes can be transmitted between animals and humans through direct contact between humans and animals, through the environment (contaminated waste/water), or through contaminated food, thus to effectively contain them, a well-coordinated approach in the different sectors is required. 7 FAO, 2014 Definitional framework of food loss Rome.

6 6 DCD/DAC/STAT(2018) There are no guidelines for these interventions in the current CRS classification and this proposal recommends addressing this gap through modifying notes for purpose code 31195, Livestock/Veterinary Services, as presented in Table 4 below. Table 4 - Modification of the notes of purpose code on Livestock/Veterinary services Proposed clarifications/additional notes on 311 Agriculture Livestock/ Veterinary Services Animal health and, genetic resources, feed resources; including activities and programmes (e.g. One Health) to address threats arising from the Animal-Human Ecosystem (e.g. zoonosis, avian flu, SARS/MERS, antimicrobial resistance, Rift Valley fever, rabies, etc.) 18. The above changes in the description of code require an adjustment in the notes of purpose code 12250, Infection Disease Control, as shown in Table 5, in order to avoid double counting. Zoonosis, which refers to diseases transmitted from animals to humans, should be explicitly excluded from code Table 5 - Modification of the notes of code on infectious disease control Proposed clarifications/additional notes on 122 Basic Health Infectious Disease Control Immunisation; prevention and control of infectious and parasite diseases, except malaria (12262), tuberculosis (12263), HIV/AIDS and other STDs (13040), and zoonosis (31195). It includes diarrheal diseases, vector-borne diseases (e.g. river blindness and guinea worm), viral diseases, mycosis, helminthiasis, diseases by other bacteria and viruses, pediculosis, etc Update notes for purpose codes and to better specify food aid and emergency food aid programmes 24. Sector 520, Food aid/food security assistance, and its sole purpose code, 52010, Food Aid/Food security programmes, were designed to capture interventions related to the supply of non-emergency food aid, while emergency food aid is reported under code To avoid attribution errors between these two codes, particularly in light of the new 430XX purpose code on food security policy and administrative, it is proposed to clarify the notes for purpose codes and as shown in Table 6 and Table 7.

7 DCD/DAC/STAT(2018)40 7 Table 6 - Existing and proposed changes to the description and notes of purpose code EXISTING EXISTING Clarifications/additional notes on 520 Developmental Food Aid/ Food Security Assistance Food Aid/ Food security programmes Supply of edible human food under national or international programmes including transport costs, cash payments made for food supplies; project food aid and food aid for market sales when benefiting sector not specified; excluding emergency food aid. Report as multilateral: i) food aid by EU financed out of its budget and allocated pro rata to EU member countries; and ii) core contributions to the World Food Programme. Clarifications/additional notes on Food Aid Supply of edible human food under national or international programmes including transport costs, cash payments made for food supplies; project food aid and food aid for market sales when benefiting sector not specified. Excludes food security policy and administrative (430XX) and emergency food aid (72040). Report as multilateral: i) food aid by EU financed out of its budget and allocated pro rata to EU member countries; and ii) core contributions to the World Food Programme Table 7 - Proposed changes to the notes of purpose code Proposed clarifications/additional notes on 720 Emergency Response Emergency food aid Food aid normally for general free distribution or special supplementary feeding programmes; short-term relief to targeted population groups affected by emergency situations. Excludes nonemergency food security assistance programmes/food aid (52010) and food security policy and administrative (430XX) 3.6. Update notes for purpose codes in sector categories Agriculture (311), Forestry (312) and Fishing (313) 26. This proposal recommends modification to relevant s notes in these sectors, as presented below, to update terminology and ensure consistency in descriptions and notes. Changes are presented in Table 8.

8 8 DCD/DAC/STAT(2018)40 Table 8 - Updated notes for purpose codes in Agriculture (311), Forestry (312) and Fisheries (313) CRS 311 AGRICULTURE \ Agricultural policy and administrative Clarifications / Additional notes on Agricultural sector policy, planning and programmes; aid to agricultural ministries; institution capacity building and advice; surveys, data collection and information systems; unspecified agriculture Agricultural development Farm development and ; integrated projects Including soil degradation control; soil improvement; drainage of water Agricultural land logged areas; soil desalination; agricultural land surveys; land reclamation; resources erosion control, desertification control Agricultural water Irrigation, reservoirs, hydraulic structures, ground water exploitation for resources agricultural use Agricultural inputs Supply of seeds, fertilizers, agricultural machinery/equipment Food crop production Including grains (wheat, rice, barley, maize, rye, oats, millet, sorghum); horticulture; vegetables; fruit and berries; pulses; other annual and perennial crops. [Use code for agro-industries.] Industrial crops/export Including sugar; coffee, cocoa, tea; spices, oil seeds, nuts, kernels; fibre crops crops; tobacco; rubber. [Use code for agro-industries.] Livestock Animal husbandry; animal feed aid Agrarian reform Including agricultural sector adjustment Projects to reduce illicit drug cultivation through other agricultural marketing Agricultural alternative and production opportunities (see code for non-agricultural development alternative development) Agricultural extension Non-formal training in agriculture Agricultural education/training Agricultural research Plant breeding, physiology, genetic resources, ecology, taxonomy, disease control, agricultural bio-technology; including livestock research (animal health, breeding and genetics, nutrition, physiology) Agricultural services Marketing policies & organisation; storage and transportation, creation of strategic reserves Plant and post-harvest protection and pest control Agricultural financial services Agricultural co-operatives Including farmers organisations Livestock/veterinary services Including integrated plant protection, biological plant protection activities, supply and of agrochemicals, supply of pesticides, plant protection policy and legislation. Financial intermediaries for the agricultural sector including credit schemes; crop insurance. Animal health and, genetic resources, feed resources; including activities and programmes (e.g. One Health) to address threats arising from the Animal-Human Ecosystem (e.g. zoonosis, avian flu, SARS/MERS, antimicrobial resistance, Rift Valley fever, rabies, etc.).

9 DCD/DAC/STAT(2018)40 9 CRS 312 FORESTRY Forestry policy and administrative Forestry development Fuelwood/charcoal Forestry education/training Forestry research Forestry services FISHING AQUACULTURE AND Fishing and aquaculture policy and administrative Fishery Fishing and aquaculture development Fishery Fishing and aquaculture education/training Fishery Fishing and aquaculture research Fishery Fishing and aquaculture services Clarifications / Additional notes on Forestry sector policy, planning and programmes; institution capacity building and advice; forest surveys, data collection and information systems; unspecified forestry and agro-forestry activities. Resource development, utilisation, and (e.g. afforestation/reforestation for industrial and rural consumption; landscape restoration; desertification, erosion control) exploitation and utilisation; desertification control; integrated forestry projects. Forestry development whose primary purpose is production of fuelwood and charcoal. Including artificial regeneration, genetic improvement, production methods, fertilizer, harvesting. Fishing and aquaculture sector policy, planning and programmes; institution capacity building and advice; ocean and coastal fishing, marine and freshwater fish surveys and prospecting; fishing boats/equipment; surveys, data collection and information systems; unspecified fishing and acquaculture activities. Resource development, utilisation, and (e.g. fish stock protection, reduction of overfishing) Exploitation and utilisation of fisheries resources; aquaculture; integrated fishery projects. Pilot fish culture; marine/freshwater biological research. Fishing harbours; fish markets; fishery transport and cold storage.