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INTERNATIONAL FUND FOR AGRICULTURAL DEVELOPMENT ACT 1977 - SCHEDULE—Agreement
establishing the International Fund for Agricultural Development
Section 3
Preamble
Recognizing that the continuing food problem of the
world is afflicting a large segment of the people of the developing countries
and is jeopardizing
the most fundamental principles and values associated with the right to life
and human dignity;
Considering the need to improve the conditions of life in
the developing countries and to promote socio-economic development within the
context of the priorities and objectives of the developing countries, giving
due regard to both economic and social benefits;
Bearing in mind the
responsibility of the Food and Agriculture Organization of the United Nations
within the United Nations system, to assist the efforts of
developing countries to increase food and agricultural production, as well as
that organization's technical competence and experience in this field;
Conscious of the goals and objectives of the International Development
Strategy for the Second United Nations Development Decade and especially the
need to spread the benefits of assistance to all;
Bearing in mind paragraph (f) of part 2 ("Food") of Section I of
General Assembly resolution 3202 (S-VI) on the Programme of Action on the
Establishment of a New International Economic Order;
Bearing in mind also the
need for effecting transfer of technology for
food and agricultural development and Section V ("Food and Agriculture") of
General Assembly resolution 3362 (S-VII) on development and international
economic co-operation, with particular reference to paragraph 6 thereof
regarding the establishment of an International Fund for Agricultural
Development;
Recalling paragraph 13 of General Assembly resolution 3348
(XXIX) and resolutions I and II of the World Food Conference on the objectives
and strategies of food production and on the priorities for agricultural and
rural development;
Recalling resolution XIII of the World Food Conference
which recognized:
(i) the need for a substantial increase in investment in
agriculture for increasing food and agricultural production in the
developing countries;
(ii) that provision of an adequate supply and proper
utilization of food are the common responsibility of all members of the
international community; and
(iii) that the prospects of the world food
situation call for urgent and co-ordinated measures by all countries;
and
which resolved:
that an International Fund for Agricultural Development
should be established immediately to finance agricultural development projects
primarily for food production in the developing countries;
The Contracting
Parties have agreed to establish the International Fund for Agricultural
Development, which shall be governed by the following provisions:
ARTICLE 1
Definitions
For the purposes of this Agreement the terms set out below shall
have the following meaning, unless the context otherwise requires:
(a) "Fund" shall mean the International Fund for Agricultural Development;
(b) "food production" shall mean the production of food including the
development of fisheries and livestock;
(c) "State" shall mean any State, or any grouping of States eligible for
membership of the Fund in accordance with Section 1 (b) of Article 3;
(d) "freely convertible currency" shall mean:
(i) currency of a Member which
the Fund determines, after consultation with the International Monetary Fund,
is adequately convertible into the currencies of other Members for the
purposes of the Fund's operations; or
(ii) currency of a Member which such
Member agrees, on terms satisfactory to the Fund, to exchange for the
currencies of other Members for the purposes of the Fund's operations.
"Currency of a Member" shall, in respect of a Member that is a grouping of
States, mean the currency of any member of such grouping;
(e) "Governor" shall mean a person whom a Member has designated as its
principal representative at a session of the Governing Council;
(f) "votes cast" shall mean affirmative and negative votes.
ARTICLE 2
Objective and functions
The objective of the Fund shall be to mobilize
additional resources to be made available on concessional terms for
agricultural development in developing Member States. In fulfilling this
objective the Fund shall provide financing primarily for projects and
programmes specifically designed to introduce, expand or improve
food production systems and to strengthen related policies and institutions
within the framework of national priorities and strategies, taking into
consideration: the need to increase food production in the poorest food
deficit countries; the potential for increasing food production in other
developing countries; and the importance of improving the nutritional level of
the poorest populations in developing countries and the conditions of their
lives.
ARTICLE 3
Membership
Section 1—Eligibility for membership
(a) Membership of the Fund shall be open to any State member of the United
Nations or of any of its specialized agencies, or of the International Atomic
Energy Agency.
(b) Membership shall also be open to any grouping of States
whose members have delegated to it powers in fields falling within the
competence of the Fund, and which is able to fulfil all the obligations of a
Member of the Fund.
Section 2—Original Members and non-original
Members
(a) Original Members of the Fund shall be those States listed in
Schedule I, which forms an integral part of this Agreement, that become
parties to this Agreement in accordance with Section 1 (b) of Article 13.
(b) Non-original Members of the Fund shall be those other States that, after
approval of their membership by the Governing Council, become parties to this
Agreement in accordance with Section 1 (c) of Article 13.
Section 3—Classification of Members
(a) Original Members shall be
classified in one of three categories: I, II or III as set forth in Schedule I
to this Agreement. Non-original Members shall be classified by the Governing
Council, by a two-thirds majority of the total number of votes, with the
concurrence of such Members, at the time of the approval of their membership.
(b) The classification of a Member may be altered by the Governing Council, by
a two-thirds majority of the total number of votes, with the concurrence of
that Member.
Section 4—Limitation of liability
No Member shall be
liable, by reason of its membership, for acts or obligations of the Fund.
ARTICLE 4
Resources
Section 1—Resources of the Fund
The resources
of the Fund shall consist of:
(i) initial contributions;
(ii) additional
contributions;
(iii) special contributions from non-member States and from
other sources;
(iv) funds derived from operations or otherwise accruing to
the Fund.
Section 2—Initial contributions
(a) Each original Member
in category I or II shall, and any original Member in category III may,
contribute to the initial resources of the Fund the amount expressed in the
currency specified in the instrument of ratification, acceptance, approval or
accession deposited by that State pursuant to Section 1 (b) of Article
13.
(b) Each non-original Member in category I or II shall, and any
non-original Member in category III may, contribute to the initial resources
of the Fund an amount agreed between the Governing Council and that Member at
the time of the approval of its membership.
(c) The initial contribution of
each Member shall be due and payable in the forms set forth in Section 5
(b) and (c) of this Article, either in a single sum or, at the option of the
Member, in three equal annual instalments. The single sum or the first annual
instalment shall be due on the thirtieth day after this Agreement enters into
force with respect to that Member; any second and third instalments shall be
due on the first and on the second anniversary of the date on which the first
instalment was due.
Section 3—Additional contributions
In order to
assure continuity in the operations of the Fund, the Governing Council shall
periodically, at such intervals as it deems appropriate, review the adequacy
of the resources available to the Fund; the first such review shall take place
not later than three years after the Fund commences operations. If the
Governing Council, as a result of such a review, deems it necessary or
desirable, it may invite Members to make additional contributions to the
resources of the Fund on terms and conditions consistent with Section 5
of this Article. Decisions under this Section shall be taken by a two-thirds
majority of the total number of votes.
Section 4—Increases in
contributions
The Governing Council may authorize, at any time, a Member to
increase the amount of any of its contributions.
Section 5—Conditions governing contributions
(a) Contributions
shall be made without restriction as to use and shall be refunded to
contributing Members only in accordance with Section 4 of Article 9.
(b)
Contributions shall be made in freely convertible currencies, except that
Members in category III may pay contributions in their own currency whether or
not it is freely convertible.
(c) Contributions to the Fund shall be made in
cash or, to the extent that any part of such contributions is not needed
immediately by the Fund in its operations, such part may be paid in the form
of non-negotiable, irrevocable, non-interest bearing promissory notes or
obligations payable on demand. In order to finance its operations, the Fund
shall draw down all contributions (regardless of the form in which they are
made) as follows:
(i) contributions shall be drawn down on a pro rata basis
over reasonable periods of time as determined by the Executive Board;
(ii)
where a contribution is paid partly in cash, the part so paid shall be drawn
down, in accordance with paragraph (i), before the rest of the
contribution. Except to the extent that the part paid in cash is thus drawn
down, it may be deposited or invested by the Fund to produce income to help
defray its administrative and other expenditures;
(iii) all initial
contributions, as well as any increases in them, shall be drawn down before
any additional contributions are drawn down. The same rule shall apply to
further additional contributions.
Section 6—Special contributions
The resources of the Fund may be increased by special contributions from
non-member States or other sources on such terms and conditions, consistent
with Section 5 of this Article, as shall be approved by the Governing
Council on the recommendation of the Executive Board.
ARTICLE 5
Currencies
Section 1—Use of currencies
(a) Members shall not maintain or
impose any restriction on the holding or use by the Fund of freely convertible
currencies.
(b) The currency of a Member in category III paid to the Fund on
account of that Member's initial or additional contributions may be used by
the Fund, in consultation with the Member concerned, for the payment of
administrative expenditures and other costs of the Fund in the territories of
that Member, or, with the consent of that Member, for the payment of goods or
services produced in its territories and required for activities financed by
the Fund in other States.
Section 2—Valuation of currencies
(a)
The unit of account of the Fund shall be the Special Drawing Right of the
International Monetary Fund.
(b) For the purposes of this Agreement, the
value of a currency in terms of the Special Drawing Right shall be calculated
in accordance with the method of valuation applied by the International
Monetary Fund, provided that:
(i) in the case of the currency of a member of
the International Monetary Fund for which such value is not available on a
current basis, the value shall be calculated after consultation with the
International Monetary Fund;
(ii) in the case of the currency of a non-member
of the International Monetary Fund, the value of the currency in terms of the
Special Drawing Right shall be calculated by the Fund on the basis of an
appropriate exchange rate relationship between that currency and the
currency of a member of the International Monetary Fund for which a value is
calculated as specified above.
ARTICLE 6
Organization and management
Section 1—Structure of the Fund
The Fund shall have:
(a) a
Governing Council;
(b) an Executive Board;
(c) a President and such staff as
shall be necessary for the Fund to carry out its functions.
Section 2—The Governing Council
(a) Each Member shall be
represented on the Governing Council and shall appoint one Governor and an
alternate. An alternate may vote only in the absence of his principal.
(b)
All the powers of the Fund shall be vested in the Governing Council.
(c) The
Governing Council may delegate any of its powers to the Executive Board with
the exception of the power to:
(i) adopt amendments to this Agreement;
(ii)
approve membership and determine the classification or reclassification of
Members;
(iii) suspend a Member;
(iv) terminate the operations of the Fund
and distribute its assets;
(v) decide appeals from decisions made by the
Executive Board concerning the interpretation or application of this
Agreement;
(vi) determine the remuneration of the President.
(d) The
Governing Council shall hold an annual session, and such special sessions as
it may decide, or as are called by Members having at least one fourth of the
total number of votes in the Governing Council, or as requested by the
Executive Board by a two-thirds majority of the votes cast.
(e) The Governing
Council may by regulation establish a procedure whereby the Executive Board
may obtain a vote of the Council on a specific question without calling a
meeting of the Council.
(f) The Governing Council may, by a two-thirds
majority of the total number of votes, adopt such regulations and by-laws not
inconsistent with this Agreement as may be appropriate to conduct the business
of the Fund.
(g) A quorum for any meeting of the Governing Council shall be
constituted by Governors exercising two thirds of the total votes of all its
members, provided that Governors exercising one half of the total votes of the
Members in each of categories I, II, and III are present.
Section 3—Voting in the Governing Council
(a) The total number of
votes in the Governing Council shall be 1,800, distributed equally among
categories I, II and III. The votes of each category shall be distributed
among its members in accordance with the formula set out for that category in
Schedule II, which forms an integral part of this Agreement.
(b) Except as otherwise specified in this Agreement, decisions of the
Governing Council shall be taken by a simple majority of the total number of
votes.
Section 4—Chairman of the Governing Council
The Governing
Council shall elect a Chairman from among the Governors, who shall serve for
two years.
Section 5—Executive Board
(a) The Executive Board shall
be composed of 18 Members of the Fund, elected at the annual session of the
Governing Council. The Governors from the Members of each category shall, in
accordance with procedures set out or established as provided in Schedule II
for that category, elect six members of the Executive Board from among the
Members in that category, and may similarly elect (or, in respect of category
I, provide for the appointment of) up to six alternates, who may vote only in
the absence of a member.
(b) Members of the Executive Board shall serve for a
term of three years. However, unless otherwise provided in or in accordance
with Schedule II, at the first election two members in each category shall be
designated to serve for one year, and two to serve for two years.
(c) The
Executive Board shall be responsible for the conduct of the general operations
of the Fund, and for this purpose shall exercise the powers given to it by
this Agreement or delegated to it by the Governing Council.
(d) The Executive
Board shall meet as often as the business of the Fund may require.
(e) The
representatives of a member or of an alternate member of the Executive Board
shall serve without remuneration from the Fund. However, the Governing Council
may decide the basis on which reasonable travel and subsistence expenses may
be granted to one such representative of each member and of each alternate
member.
(f) A quorum for any meeting of the Executive Board shall be
constituted by members exercising two thirds of the total votes of all its
members, provided that members exercising one half of the total votes of the
members in each of categories I, II and III are present.
Section 6—Voting in the Executive Board
(a) The total number of
votes in the Executive Board shall be 1,800, distributed equally among
categories I, II and III. The votes of each category shall be distributed
among its members in accordance with the formula set out for that category in
Schedule II.
(b) Except as otherwise specified in this Agreement, decisions
of the Executive Board shall be taken by a majority of three fifths of the
votes cast, provided that such majority is more than one half of the total
number of votes of all members of the Executive Board.
Section 7—Chairman of the Executive Board
The President of the Fund
shall be the Chairman of the Executive Board and shall participate in its
meetings without the right to vote.
Section 8—President and staff
(a) The Governing Council shall appoint the President by a two-thirds majority
of the total number of votes. He shall be appointed for a term of three years
and shall be eligible for reappointment for only one further term. The
appointment of the President may be terminated by the Governing Council by a
two-thirds majority of the total number of votes.
(b) The President may
appoint a Vice-President, who shall perform such duties as shall be assigned
to him by the President.
(c) The President shall head the staff and, under
the control and direction of the Governing Council and the Executive Board,
shall be responsible for conducting the business of the Fund. The President
shall organize the staff and shall appoint and dismiss members of the staff in
accordance with regulations adopted by the Executive Board.
(d) In the
employment of the staff and in the determination of the conditions of service
consideration shall be given to the necessity of securing the highest
standards of efficiency, competence and integrity as well as to the importance
of observing the criterion of equitable geographical distribution.
(e) The
President and the staff, in the discharge of their functions, owe their duty
exclusively to the Fund and shall neither seek nor receive instructions in
regard to the discharge thereof from any authority external to the Fund. Each
Member of the Fund shall respect the international character of this duty and
shall refrain from any attempt to influence them in the discharge of their
duties.
(f) The President and the staff shall not interfere in the political
affairs of any Member. Only development policy considerations shall be
relevant to their decisions and these considerations shall be weighed
impartially in order to achieve the objective for which the Fund was
established.
(g) The President shall be the legal representative of the Fund.
(h) The President, or a representative designated by him, may participate,
without the right to vote, in all meetings of the Governing Council.
Section 9—Seat of the Fund
The Governing Council shall determine
the permanent seat of the Fund by a two-thirds majority of the total number of
votes. The provisional seat of the Fund shall be in Rome.
Section 10—Administrative budget
The President shall prepare an
annual administrative budget which he shall
submit to the Executive Board for transmission to the Governing Council for
approval by a two-thirds majority of the total number of votes.
Section 11—Publication of reports and provision of information
The
Fund shall publish an annual report containing an audited statement of its
accounts and, at appropriate intervals, a summary statement of its financial
position and of the results of its operations. Copies of such reports,
statements and other publications connected therewith shall be distributed to
all Members.
ARTICLE 7
Operations
Section 1—Use of resources and
conditions of financing
(a) The resources of the Fund shall be used to
achieve the objective specified in Article 2.
(b) Financing by the Fund shall
be provided only to developing States that are members of the Fund or to
intergovernmental organizations in which such members participate. In the case
of a loan to an intergovernmental organization, the Fund may require suitable
governmental or other guarantees.
(c) The Fund shall make arrangements to
ensure that the proceeds of any financing are used only for the purposes for
which the financing was provided, with due attention to considerations of
economy, efficiency and social equity.
(d) In allocating its resources the
Fund shall be guided by the following priorities:
(i) the need to increase
food production and to improve the nutritional level of the poorest
populations in the poorest food deficit countries;
(ii) the potential for
increasing food production in other developing countries. Likewise, emphasis
shall be placed on improving the nutritional level of the poorest populations
in these countries and the conditions of their lives.
Within the framework of
the above-mentioned priorities, eligibility for assistance shall be on the
basis of objective economic and social criteria with special emphasis on the
needs of the low income countries and their potential for increasing
food production, as well as due regard to a fair geographic distribution in
the use of such resources.
(e) Subject to the provisions of this Agreement,
financing by the Fund shall be governed by broad policies, criteria and
regulations laid down, from time to time, by the Governing Council by a
two-thirds majority of the total number of votes.
Section 2—Forms
and terms of financing
(a) Financing by the Fund shall take the form of loans
and grants, which shall be provided on such terms as the Fund deems
appropriate, having regard to the economic situation and prospects of the
Member and to the nature and requirements of the activity concerned.
(b) The
proportion of the Fund's resources to be committed in any financial year for
financing operations in either of the forms referred to in subsection (a)
shall be decided from time to time by the Executive Board with due regard to
the long-term viability of the Fund and the need for continuity in its
operations. The proportion of grants shall not normally exceed one eighth of
the resources committed in any financial year. A large proportion of the loans
shall be provided on highly concessional terms.
(c) The President shall
submit projects and programmes to the Executive Board for consideration and
approval.
(d) Decisions with regard to the selection and approval of projects
and programmes shall be made by the Executive Board. Such decisions shall be
made on the basis of the broad policies, criteria and regulations established
by the Governing Council.
(e) For the appraisal of projects and programmes
presented to it for financing, the Fund shall, as a general rule, use the
services of international institutions and may, where appropriate, use the
services of other competent agencies specialized in this field. Such
institutions and agencies shall be selected by the Executive Board after
consultation with the recipient concerned and shall be directly responsible to
the Fund in performing the appraisal.
(f) The loan agreement shall be
concluded in each case by the Fund and the recipient, which shall be
responsible for the execution of the project or programme concerned.
(g) The
Fund shall entrust the administration of loans, for the purposes of the
disbursement of the proceeds of the loan and the supervision of the
implementation of the project or programme concerned, to competent
international institutions. Such institutions shall be of a world-wide or
regional character and shall be selected in each case with the approval of the
recipient. Before submitting the loan to the Executive Board for approval, the
Fund shall assure itself that the institution to be entrusted with the
supervision agrees with the results of the appraisal of the project or
programme concerned. This shall be arranged between the Fund and the
institution or agency in charge of the appraisal as well as with the
institution to be entrusted with the supervision.
(h) For the purposes of
subsections (f) and (g) above, references to
"loans" shall be deemed to include "grants".
(i) The Fund may extend a line
of credit to a national development agency to provide and administer subloans
for the financing of projects and programmes
within the terms of the loan agreement and the framework agreed to by the
Fund. Before the Executive Board approves the extension of such a line of
credit, the national development agency concerned and its programme shall be
appraised in accordance with the provisions of subsection (e).
Implementation of the said programme shall be subject to supervision by the
institutions selected in accordance with the provisions of
subsection (g).
(j) The Executive Board shall adopt suitable regulations
for procuring goods and services to be financed from the resources of the
Fund. Such regulations shall, as a general rule, conform to the principles of
international competitive bidding and shall give appropriate preference to
experts, technicians and supplies from developing countries.
Section 3—Miscellaneous operations
In addition to the operations
specified elsewhere in this Agreement, the Fund may undertake such ancillary
activities and exercise such powers incidental to its operations as shall be
necessary in furtherance of its objective.
ARTICLE 8
Relations with the
United Nations and with other
organizations, institutions and agencies
Section 1—Relations with the United Nations
The Fund shall enter
into negotiations with the United Nations with a view to concluding an
agreement to bring it into relationship with the United Nations as one of the
specialized agencies referred to in Article 57 of the Charter of the United
Nations. Any agreements concluded in accordance with Article 63 of the Charter
shall require the approval of the Governing Council, by a two-thirds majority
of the total number of votes, upon the recommendation of the Executive Board.
Section 2—Relations with other organizations, institutions and
agencies
The Fund shall co-operate closely with the Food and Agriculture
Organization of the United Nations and other organizations of the United
Nations system. It shall also co-operate closely with other intergovernmental
organizations, international financial institutions, non-government
organizations and governmental agencies concerned with agricultural
development. To this end, the Fund will seek the collaboration in its
activities of the Food and Agriculture Organization of the United Nations and
the other bodies referred to above, and may enter into agreements or establish
working arrangements with such bodies, as may be decided by the Executive
Board.
ARTICLE 9
Withdrawal, suspension of membership, termination of
operations
Section 1—Withdrawal
(a) Except as provided in
Section 4 (a) of this Article, a Member may withdraw from the Fund by
depositing an instrument of denunciation of this Agreement with the
Depositary.
(b) Withdrawal of a Member shall take effect on the date
specified in its instrument of denunciation, but in no event less than six
months after deposit of such instrument.
Section 2—Suspension of
membership
(a) If a Member fails to fulfil any of its obligations to the
Fund, the Governing Council may, by a three-fourths majority of the total
number of votes, suspend its membership. The Member so suspended shall
automatically cease to be a Member one year from the date of its suspension,
unless the Council decides by the same majority of the total number of votes
to restore the Member to good standing.
(b) While under suspension, a Member
shall not be entitled to exercise any rights under this Agreement except the
right of withdrawal, but shall remain subject to all of its obligations.
Section 3—Rights and duties of States ceasing to be Members
Whenever a State ceases to be a Member, whether by withdrawal or through the
operation of Section 2 of this Article, it shall have no rights under
this Agreement except as provided in this Section or in Section 2 of
Article II, but it shall remain liable for all financial obligations
undertaken by it to the Fund, whether as Member, borrower or otherwise.
Section 4—Termination of operations and distribution of assets
(a)
The Governing Council may terminate the Fund's operations by a three-fourths
majority of the total number of votes. After such termination of operations
the Fund shall forthwith cease all activities, except those incidental to the
orderly realization and conservation of its assets and the settlement of its
obligations. Until final settlement of such obligations and the distribution
of such assets, the Fund shall remain in existence and all rights and
obligations of the Fund and its Members under this Agreement shall continue
unimpaired, except that no Member may be suspended or may withdraw.
(b) No
distribution of assets shall be made to Members until all liabilities to
creditors have been discharged or provided for. The Fund shall distribute its
assets to contributing Members pro rata to the contributions that each Member
has made to the resources of the Fund. Such distributions shall be decided by
the Governing Council by a three-fourths majority of the total number of votes
and shall be effected at such times, and in such currencies or other assets as
the Governing Council shall deem fair and equitable.
ARTICLE 10
Legal status, privileges and immunities
Section 1—Legal status
The
Fund shall possess international legal personality.
Section 2—Privileges and immunities
(a) The Fund shall enjoy in the
territory of each of its Members such privileges and immunities as are
necessary for the exercise of its functions and for the fulfilment of its
objective. Representatives of Members, the President and the staff of the Fund
shall enjoy such privileges and immunities as are necessary for the
independent exercise of their functions in connexion with the Fund.
(b) The
privileges and immunities referred to in paragraph (a) shall:
(i) in the
territory of any Member that has acceded to the Convention on the Privileges
and Immunities of the Specialized Agencies in respect of the Fund, be as
defined in the standard clauses of that Convention as modified by an annex
thereto approved by the Governing Council;
(ii) in the territory of any
Member that has acceded to the Convention on the Privileges and Immunities of
the Specialized Agencies only in respect of agencies other than the Fund, be
as defined in the standard clauses of that Convention, except if such Member
notifies the Depositary that such clauses shall not apply to the Fund or shall
apply subject to such modifications as may be specified in the notification;
(iii) be as defined in other agreements entered into by the Fund.
(c) In
respect of a Member that is a grouping of States, it shall ensure that the
privileges and immunities referred to in this Article are applied in the
territories of all members of the grouping.
ARTICLE 11
Interpretation and
arbitration
Section 1—Interpretation
(a) Any question of
interpretation or application of the provisions of this Agreement arising
between any Member and the Fund or between Members of the Fund, shall be
submitted to the Executive Board for decision. If the question particularly
affects any Member of the Fund not represented on the Executive Board, that
Member shall be entitled to be represented in accordance with regulations to
be adopted by the Governing Council.
(b) Where the Executive Board has given
a decision pursuant to subsection (a), any Member may require that the
question be referred to the Governing Council, whose decision shall be final.
Pending the decision of the Governing Council, the Fund may, so far as it
deems necessary, act on the basis of the decision of the Executive Board.
Section 2—Arbitration
In the case of a dispute between the Fund and
a State that has ceased to be a Member, or between the Fund and any Member
upon the termination of the operations of the Fund, such dispute shall be
submitted to arbitration by a tribunal of three arbitrators. One of the
arbitrators shall be appointed by the Fund, another by the Member or former
Member concerned and the two parties shall appoint the third arbitrator, who
shall be the Chairman. If within 45 days of receipt of the request for
arbitration either party has not appointed an arbitrator, or if within 30 days
of the appointment of two arbitrators the third arbitrator has not been
appointed, either party may request the President of the International Court
of Justice, or such other authority as may have been prescribed by regulations
adopted by the Governing Council, to appoint an arbitrator. The procedure of
the arbitration shall be fixed by the arbitrators, but the Chairman shall have
full power to settle all questions of procedure in any case of disagreement
with respect thereto. A majority vote of the arbitrators shall be sufficient
to reach a decision, which shall be final and binding upon the parties.
ARTICLE 12
Amendments
(a) Except in respect of Schedule II:
(i) Any
proposal to amend this Agreement made by a Member or by the Executive Board
shall be communicated to the President who shall notify all Members. The
President shall refer proposals to amend this Agreement made by a Member to
the Executive Board, which shall submit its recommendations thereon to the
Governing Council.
(ii) Amendments shall be adopted by the Governing Council
by a four-fifths majority of the total number of votes. Amendments shall enter
into force three months after their adoption unless otherwise specified by the
Governing Council, except that any amendment modifying:
(A) the right to
withdraw from the Fund;
(B) the voting majority requirements provided for in
this Agreement;
(C) the limitation on liability provided for in
Section 4 of Article 3;
(D) the procedure for amending this Agreement;
shall not come into force until written acceptance of such amendment by all
Members is received by the President.
(b) In respect of the several parts of
Schedule II, amendments shall be proposed and adopted as provided in such
parts.
(c) The President shall immediately notify all Members and the
Depositary of any amendments that are adopted and of the date of entry into
force of any such amendments.
ARTICLE 13
Final clauses
Section 1—Signature, ratification, acceptance,
approval and accession
(a) This Agreement may be initialled on behalf of the
States listed in Schedule I to this Agreement at the United Nations Conference
on the Establishment of the Fund and shall be open for signature at the
Headquarters of the United Nations in New York by the States listed in that
Schedule as soon as the initial contributions indicated therein to be made in
freely convertible currencies amount to at least the equivalent of 1,000
million United States dollars (valued as of 10 June 1976). If the
foregoing requirement has not been fulfilled by 30 September 1976 the
Preparatory Commission established by that Conference shall convene by
31 January 1977 a meeting of the States listed in Schedule I, which may
by a two-thirds majority of each category reduce the above specified amount
and may also establish other conditions for the opening of this Agreement for
signature.
(b) Signatory States may become parties by depositing an
instrument of ratification, acceptance or approval; non-signatory States
listed in Schedule I may become parties by depositing an instrument of
accession. Instruments of ratification, acceptance, approval and accession by
States in category I or II shall specify the amount of the initial
contribution the State undertakes to make. Signatures may be affixed and
instruments of ratification, acceptance, approval or accession deposited by
such States until one year after the entry into force of this Agreement.
(c)
States listed in Schedule I that have not become parties to this Agreement
within one year after its entry into force and States that are not so listed,
may, after approval of their membership by the Governing Council, become
parties by depositing an instrument of accession.
Section 2
(a) The
Secretary-General of the United Nations shall be the Depositary of this
Agreement.
(b) The Depositary shall send notifications concerning this
Agreement:
(i) until one year after its entry into force, to the States
listed in Schedule I to this Agreement, and after such entry into force to all
States parties to this Agreement as well as to those approved for membership
by the Governing Council;
(ii) to the Preparatory Commission established by
the United Nations Conference on the Establishment of the Fund, as long as it
remains in existence, and thereafter to the President.
Section 3—Entry into force
(a) This Agreement shall enter into
force upon receipt by the Depositary of instruments of ratification,
acceptance, approval or accession from at least 6 States in category I, 6
States in category II and 24 States in category III, provided that such
instruments have been deposited by States in categories I and II the aggregate
of whose initial contributions specified in such instruments amounts to at
least the equivalent of 750 million United States dollars (valued as of
10 June 1976), and further provided that the foregoing requirements have
been fulfilled within 18 months of the date on which this Agreement is opened
for signature or by such later date as the States that have deposited such
instruments by the end of that period may decide, by a two-thirds majority of
each category, and as they notify to the Depositary.
(b) For States that
deposit an instrument of ratification, acceptance, approval or accession
subsequent to the entry into force of this Agreement, it shall enter into
force on the date of such deposit.
Section 4—Reservations
Reservations may only be made to Section 2 of Article 11 of this
Agreement.
Section 5—Authoritative texts
The versions of this
Agreement in the Arabic, English, French and Spanish languages shall each be
equally authoritative.
IN WITNESS WHEREOF, the undersigned being duly
authorized thereto, have signed this Agreement in a single original in the
Arabic, English, French and Spanish languages.
INTERNATIONAL FUND FOR AGRICULTURAL DEVELOPMENT ACT 1977
Schedule I
Part I—States Eligible for Original Membership
Category I
|
Category II
|
Category III
|
Australia
|
Algeria
|
Argentina
|
Austria
|
Gabon
|
Bangladesh
|
Belgium
|
Indonesia
|
Bolivia
|
Canada
|
Iran
|
Botswana
|
Denmark
|
Iraq
|
Brazil
|
Finland
|
Kuwait
|
Cape Verde
|
France
|
Libyan Arab Republic
|
Chad
|
Germany, Federal
|
Nigeria
|
Chile
|
Republic of
|
Qatar
|
Colombia
|
Ireland
|
Saudi Arabia
|
Congo
|
Italy
|
United Arab Emirates
|
Costa Rica
|
Luxembourg
|
Venezuela
|
Cuba
|
Japan
|
|
Dominican Republic
|
Netherlands
|
|
Ecuador
|
New Zealand
|
|
Egypt
|
Norway
|
|
El Salvador
|
Spain
|
|
Ethiopia
|
Sweden
|
|
Ghana
|
Switzerland
|
|
Greece
|
United Kingdom of
|
|
Guatemala
|
Great Britain and
|
|
Guinea
|
Northern Ireland
|
|
Haiti
|
United States of America
|
|
Honduras
|
|
|
India
|
|
|
Israel [1]
|
|
|
|
Jamaica
|
|
|
Kenya
|
|
|
Liberia
|
|
|
Mali
|
|
|
Malta
|
|
|
Mexico
|
|
|
Morocco
|
|
|
Nicaragua
|
|
|
Pakistan
|
|
|
Panama
|
|
|
Papua New Guinea
|
|
|
Peru
|
|
|
Philippines
|
|
|
Portugal
|
|
|
Republic of Korea
|
|
|
Romania
|
|
|
Rwanda
|
|
|
Senegal
|
|
|
Sierra Leone
|
|
|
Somalia
|
|
|
Sri Lanka
|
|
|
Sudan
|
|
|
Swaziland
|
|
|
Syrian Arab Republic
|
|
|
Thailand
|
|
|
Tunisia
|
|
|
Turkey
|
|
|
Uganda
|
|
|
United Republic of
|
|
|
Cameroon
|
|
|
United Republic of Tanzania
|
|
|
Uruguay
|
|
|
Yugoslavia
|
|
|
Zaire
|
|
|
Zambia
|
Part II—Pledges of Initial Contributions2
State
|
Currency unit
|
Amount in currency
|
Equivalent
in SDRs [3]
|
|
|
|
|
|
Category 1
|
|
|
|
Australia
|
Australian dollar
|
8 000 000(a)
|
8 609 840
|
Austria
|
US dollar
|
4 800 000(a)
|
4
197 864
|
Belgium
|
Belgian franc
US dollar
|
500 000 000
1 000 000(a)
|
}11 930 855
|
Canada
|
Canadian dollar
|
33 000 000(a)
|
29 497 446
|
Denmark
|
US dollar
|
7 500 000(a)
|
6 559 163
|
Finland
|
Finnish markka
|
12 000 000(a)
|
2 692 320
|
France
|
US dollar
|
25 000 000
|
21 863 875
|
Germany, Federal Republic of
|
US dollar
|
55 000 000(a)
|
48 100 525
|
Ireland
|
Pound sterling
|
570 000(a)
|
883 335
|
Italy
|
US dollar
|
25 000 000(a)
|
21 863 875
|
Japan
|
US dollar
|
55 000 000(a)
|
48 100 525
|
Luxembourg
|
Special Drawing Right
|
320 000(a)
|
320 000
|
Netherlands
|
Dutch guilder
US dollar
|
100 000 000
3 000 000
|
}34 594 265
|
New Zealand
|
New Zealand dollar
|
2 000 000(a)
|
1 721 998
|
Norway
|
Norwegian kroner
US dollar
|
75 000 000(a)
9 981 851
|
}20 612 228
|
Spain
|
US dollar
|
2 000 000(c)
|
1 749 110
|
Sweden
|
Swedish kroner
US dollar
|
100 000 000
3 000 000
|
}22 325 265
|
Switzerland
|
Swiss franc
|
22 000 000(a)
|
7 720 790
|
United Kingdom
|
Pound sterling
|
18 000 000
|
27 894 780
|
United States
|
US dollar
|
200 000 000
|
174 911 000
|
|
|
|
|
|
|
Subtotal
|
496 149 059
|
|
|
|
|
|
|
|
|
Category II
|
|
|
|
Algeria
|
US dollar
|
10 000 000
|
8 745 550
|
Gabon
|
US dollar
|
500 000
|
437 278
|
Indonesia
|
US dollar
|
1 250 000
|
1 093 194
|
Iran
|
US dollar
|
124 750 000
|
109 100 736
|
Iraq
|
US dollar
|
20 000 000
|
17 491 100
|
Kuwait
|
US dollar
|
36 000 000
|
31 483 980
|
Libyan Arab Republic
|
US dollar
|
20 000 000
|
17 491 100
|
Nigeria
|
US dollar
|
26 000 000
|
22 738 430
|
Qatar
|
US dollar
|
9 000 000
|
7 870 995
|
Saudi Arabia
|
US dollar
|
105 500 000
|
92 265 553
|
United Arab Emirates
|
US dollar
|
16 500 000
|
14 430 158
|
Venezuela
|
US dollar
|
66 000 000
|
57 720 630
|
|
|
|
|
|
|
Subtotal
|
380 868 704
|
|
|
|
Equivalent in SDRs 3
|
State
|
Currency unit
|
Amount in currency
|
Freely convertible
|
Not freely convertible
|
|
|
|
|
|
Category III
|
|
|
|
|
Argentina
|
Argentine peso
|
240 000 000(d)
|
..
|
1 499 237
|
Bangladesh
|
Taka (equivalent of)
|
$US500 000
|
..
|
437 278
|
Chile
|
US dollar
|
50 000
|
43 728
|
..
|
Ecuador
|
US dollar
|
25 000
|
21 864
|
..
|
Egypt
|
Egyptian pound (equivalent of)
|
$US300 000
|
..
|
262 367
|
Ghana
|
US dollar
|
100 000
|
87 456
|
..
|
Guinea
|
Sily
|
25 000 000(a)
|
..
|
1 012 145
|
Honduras
|
US
dollar
|
25 000
|
21 864
|
..
|
India
|
US dollar
Indian rupee (equivalent of)
|
2 500 000
$US2 500 000
|
2 186 388
|
2 186 388
|
Israel
|
Israel pound (equivalent of)
|
$US150 000(a)(e)
|
..
|
131 183
|
Kenya
|
Kenya shilling
(equivalent of)
|
$US1 000 000
|
..
|
874 555
|
Mexico
|
US dollar
|
5 000 000
|
4 372 775
|
..
|
Nicaragua
|
Cordobas
|
200 000
|
..
|
24 894
|
Pakistan
|
US dollar
Pakistan rupee
(equivalent of)
|
500 000
$US500 000
|
437 278
..
|
..
437 278
|
Philippines
|
US dollar(f)
|
250 000(f)
|
43 728
|
174 911
|
Republic of Korea
|
US dollar
Won (equivalent of)
|
100 000
$US100 000
|
87 456
..
|
87 456
|
Romania
|
Lei (equivalent of)
|
$US1 000 000
|
..
|
874 555
|
Sierra Leone
|
Leone
|
20 000
|
..
|
15 497
|
Sri Lanka
|
US dollar
Sri Lanka rupee (equivalent of)
|
500 000
$US500 000
|
437 278
..
|
..
437 278
|
Syrian Arab Republic
|
Syrian pound
|
500 000
|
..
|
111 409
|
Thailand
|
US dollar
|
100 000
|
87 456
|
..
|
Tunisia
|
Tunisian dinar
|
50 000
|
..
|
100 621
|
Turkey
|
Turkish lira (equivalent of)
|
$US100 000
|
..
|
87 456
|
Uganda
|
Uganda shilling
|
200 000
|
..
|
20 832
|
United Republic of Cameroon
|
US dollar
|
10 000
|
8 746
|
..
|
United Republic of Tanzania
|
Tanzania shilling
|
300
000
|
..
|
31 056
|
Yugoslavia
|
Yugoslav dinar
(equivalent of)
|
$US300 000
|
..
|
262 367
|
|
|
|
|
|
|
Subtotal
|
|
7 836 017
|
9 068 763
|
|
Total freely convertible
|
|
884 853 780 *
|
*
[1] With reference to Article 7,
Section 1 (b) on the use of resources of the Fund for "developing
countries", this country will not be included under this Section and will not
seek or receive financing from the Fund.[3] Special Drawing Rights (SDRs) of
the International Monetary Fund valued as of 10 June 1976. These
equivalent values are stated merely for information in the light of
Section 2 (a) of Article 5 of the Agreement, with the understanding that
the initial contributions pledged will be payable in accordance with
Section 2 (a) of Article 4 of the Agreement in the amount and currency
specified by the State concerned.
(a) Payable in three instalments.
(b) This
amount includes an additional pledge of $US 3 million, which was made subject
to the necessary budgetary arrangements in the fiscal year 1977.
(c) Payable
in two instalments.
(d) To be spent within the territory of Argentina for
goods or services required by the Fund.
(e) Usable for technical assistance.
(f) $US200,000 of this pledge was stated
to be subject to confirmation, including the terms of payment and the type of
currency. This amount has
consequently been entered in the "not freely convertible" column.
Equivalent of $US1,011,776,023 valued as of 10 June 1976.
INTERNATIONAL FUND FOR AGRICULTURAL DEVELOPMENT ACT 1977
Schedule
II—Distribution of votes and election of executive board members
Part I: Category I
Sub-part A: Distribution of votes in the Governing
Council
Sub-part B: Election of members of the Executive Board and their
alternates
Sub-part C: Distribution of votes in the Executive Board
Sub-part
D: Amendments
Part II: Category II
Sub-part A: Distribution of votes in
the Governing Council
Sub-part B: Election of members of the Executive Board
and their alternates
Sub-part C: Distribution of votes in the Executive Board
Sub-part D: Amendments
Part III: Category III
Sub-part A: Distribution
of votes in the Governing Council
Sub-part B: Election of members of the
Executive Board and their alternates
Sub-part C: Distribution of votes in the
Executive Board
Sub-part D: Amendments
Part I: Category I
A.
Distribution of votes in the Governing Council
1. 17.5 per cent of the votes
of category I shall be distributed equally among the Members of that category.
2. The remaining 82.5 per cent of the votes shall be distributed among Members
of category I in the proportion that each Member's:
(a) initial contribution
as specified in its instrument of ratification, acceptance, approval or
accession, and
(b) additional contributions and increases in contributions
made in accordance with Section 5 (c) of Article 4
bear to the aggregate
of the contributions of category I Members.
3. In determining voting power
under paragraph 2, contributions shall be valued in terms of their equivalent
in Special Drawing Rights as of the date of the entry into force of the
Agreement and thereafter whenever there is an increase in the aggregate of the
contributions of category I Members as a result of a new Member in category I,
an increase in the contribution of a category I Member or additional
contributions by category I Members.
4. In the Governing Council each
Governor representing a Member in category I shall be entitled to cast the
votes of that Member.
B. Election of members of the Executive Board and their
alternates
1. All of the members and alternate members of the Executive Board
from category I shall serve for a term of three years, including those elected
at the first election of members of the Executive Board.
2. In balloting for
the election of members of the Executive Board representing Members in
category I, each Governor representing such a Member shall cast for one
nominee all of the votes to which the Member which appointed that Governor is
entitled.
3. When on any ballot the number of nominees equals the number of
members to be elected each nominee shall be deemed to be elected by the number
of votes received by him on such ballot.
4. (a) When on any ballot the number
of nominees exceeds the number of members to be elected, the six nominees
receiving the highest number of votes shall be elected, except that no nominee
who receives less than 9 per cent of the total voting power of category I
shall be considered as elected.
(b) If six members are elected on the first
ballot, the votes that were cast for the nominees not elected shall be deemed
to have counted towards the election of any of the six members, as chosen by
each Governor having such votes.
5. When six members are not elected on the
first ballot, a second ballot shall be held in which the Member which received
the lowest number of votes in the preceding ballot shall be ineligible for
election and in which there shall vote only:
(a) those Governors who voted in
the preceding ballot for a nominee not elected, and
(b) those Governors whose
votes for a member elected are deemed under paragraph 6 to have raised the
votes cast for that member above 15 per cent of the eligible votes.
6. (a) In
determining whether the votes cast by a Governor are to be deemed to have
raised the total of any member above 15 per cent of the eligible votes, the 15
per cent shall be deemed to include, first, the votes of the Governor casting
the largest number of votes for such member, then the votes of the Governor
casting the next largest number, and so on until 15 per cent is reached.
(b)
If on any ballot two or more Governors having an equal number of votes shall
have voted for the same nominee and the votes of one or more, but not all, of
such Governors could be deemed to have raised the total votes above 15
per cent of the eligible votes, who shall be entitled to vote on the next
ballot shall be determined by lot.
7. Any Governor, part of whose votes must
be counted in order to raise the total of any member above 12 per cent, shall
be considered as casting all of his votes for such member even if the total
votes for such member thereby exceed 15 per cent.
8. If, after the second
ballot, six members have not been elected, a further ballot shall be held on
the same principles until six members have been elected, provided that after
five members are elected, the sixth may be elected by a simple majority of the
remaining votes and the remaining votes shall be deemed to have counted
towards its election.
9. Each member elected to the Executive Board may
appoint an alternate from among the Members whose votes are deemed to have
elected it.
C. Distribution of votes in the Executive Board
1. In the
Executive Board a member elected by a Governor or Governors representing a
Member or Members in category I shall be entitled to cast the votes of that
Member or Members. Where the member represents more than one Member it may
cast separately the votes of the Members it represents.
2. If the voting
rights of a Member of category I should change between the times provided for
the election of members of the Executive Board:
(a) there shall be no change
in such members as a result thereof;
(b) voting rights of each member of the
Executive Board shall be adjusted as of the effective date of the change in
voting rights of the Member or Members it represents;
(c) the Governor of a
new Member of category I may designate an existing member of the Executive
Board to represent it and cast its votes until the next election of members of
the Board. During such period a member so designated shall be deemed to have
been elected by the Governor which so designated it.
D. Amendments
1. The
Governors representing category I Members may by a unanimous decision amend
the provisions of sub-parts A and B. Unless otherwise decided, the amendments
shall have immediate effect. The President shall be informed of any amendment
to sub-parts A and B.
2. The Governors representing category I Members may
amend the provisions of sub-part C by a decision taken with a majority of 75
per cent of the total voting power of such Governors. Unless otherwise
decided, the amendment shall have immediate effect. The President shall be
informed of any amendment to sub-part C.
Part II: Category II
A.
Distribution of votes in the Governing Council
1. 25 per cent of the votes of
category II shall be distributed equally among the Members of that category.
2. The remaining 75 per cent of the votes shall be distributed among the
Members of category II in the proportion that each Member's contribution (made
in accordance with Section 5 (c) of Article 4) bears to the aggregate of
the contributions of the category II Members.
3. In the Governing Council
each Governor representing a Member in category II shall be entitled to cast
the votes of that Member.
B. Election of members of the Executive Board and
their alternates
1. All of the members and alternate members of the Executive
Board from category II shall serve for a term of three years, including those
elected at the first election of members of the Executive Board.
2. Each
nominee for membership of the Executive Board may, in consultation with all
the other Members of category II, agree with another Member in that category
that the latter be a nominee as its alternate. A vote for the nominee for
membership shall also be counted as a vote for its alternate.
3. In balloting
for members and alternate members of the Executive Board, each Governor shall
cast for his nominees all of the votes to which the Member which appointed
that Governor is entitled.
4. When on any ballot the number of nominees
receiving votes:
(a) is equal to the number of places to be filled, all such
nominees shall be considered elected;
(b) is fewer than the number of places
to be filled, all such nominees shall be considered elected, and additional
ballots shall be held to fill the remaining places;
(c) exceeds the number of
places to be filled, the nominee (or the nominees receiving the same number of
votes) receiving the fewest votes shall be eliminated and, if the remaining
nominees having received votes:
(i) are equal to the number of places to be
filled, all such nominees shall be considered elected;
(ii) are fewer than
the number of places to be filled, all such nominees shall be considered
elected and additional ballots shall be held to fill the remaining places,
participation in which shall be limited to those Governors whose votes did not
count towards the election of any member already elected;
(iii) exceed the
number of places to be filled, additional ballots shall be held, participation
in which shall be limited to those Governors whose votes did not count towards
the election of any member already elected.
C. Distribution of votes in the
Executive Board
1. In the Executive Board a member elected by a Governor or
Governors representing a Member or Members in Category II shall be entitled to
cast the votes of that Member or Members. A member of the Board representing
more than one Member may cast separately the votes of the Members it
represents.
2. If the voting rights of a Member of category II should change
between the times provided for the election of members of the Executive Board:
(a) there shall be no change in such members as a result thereof;
(b) the
voting rights of a member of the Executive Board shall be adjusted as of the
effective date of the change in voting rights of the Member or Members it
represents;
(c) the Governor of a new Member of category II may designate an
existing member of the Executive Board to represent it and cast its votes
until the next election of members of the Board. During such period a member
so designated shall be deemed to have been elected by the Governor which so
designated it.
D. Amendments
The provisions in sub-parts A-D may be amended
by a vote of the Governors representing two thirds of the category II Members
whose contributions (made in accordance with Section 5 (c) of Article 4)
amount to 70 per cent of the contributions of all category II Members. The
President shall be informed of any amendments.
Part III: Category III
A
. Distribution of votes in the Governing Council
The 600 votes of category
III shall be distributed equally among the Members of that category.
B .
Election of members of the Executive Board and their alternates
1. Of the six
members and six alternate members of the Executive Board elected from among
Members in category III, two members and two alternate members shall be from
each of the following regions: Africa, Asia and Latin America, as these are
recognized in the practice followed in the United Nations Conference on Trade
and Development.
2. The procedures for electing members and alternate members
of the Executive Board from category III pursuant to Section 5 (a) of
Article 6 of the Agreement and, pursuant to Section 5 (b) of that
Article, the term of service of such members and alternate members elected at
the first election, shall be adopted either before the entry into force of the
Agreement by a simple majority of the States listed in Part I of Schedule
I as prospective Members in category III or after the entry into force of the
Agreement by a simple majority of the Members in category III.
C .
Distribution of votes in the Executive Board
Each member of the Executive
Board from category III shall have 100 votes.
D . Amendments
Sub-part B may
be amended from time to time by a two-thirds majority of the Members in
category III. The President shall be informed of any amendments.
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