SPECIAL JOINT WORKING GROUP OF THE PERMANENT COUNCIL AND OF THE INTER-AMERICAN COUNCIL FOR INTEGRAL DEVELOPMENT ON THE STRENGTHENING AND MODERNIZATION OF THE OAS

OEA/Ser.T/VII
GETC/FORMOEA-82/99
12 March 1999
Original: English

TECHNICAL COOPERATION

(Document prepared by the Department of Legal Services)

March 10, 1999

Excellency:

I have the honor to transmit to you a set of draft documents prepared at your request with a view towards assisting the Group over which you preside in advancing its work in relation to the proposal of the United States Government to create the Organization of American States Development Agency. Those documents are:

1. Draft General Assembly Resolution: Creation of Organization of American States Development Agency ("OASDA")

Annex A: Statute of the Organization of American States Development Agency ("OASDA")

Annex B: Amendments to the Statute oft he Inter-American Council for Integral Development.

2. Section by Section Analysis of Draft General Assembly Resolution for Creation of the Organization of American States Development Agency ("OASDA")

3. Explanation of Text of Draft CIDI Resolution for Creation of the Organization of American States Development Agency ("OASDA") with Section by Section Analysis of Proposed Amendments to CIDI's Rules of Procedure and the FEMCIDI Statute

4. Draft CIDI Resolution: Creation of the Organization of American States Development Agency ("OASDA")

Annex C: Amendments to Rules of Procedure of the Inter-American Council for Integral Development ("CIDI") and to the Statute of the Special Multilateral Fund of the Inter-American Council for Integral Development ("FEMCIDI").

The Spanish translation is in process and will follow shortly.

Accept, Excellency, renewed assurances of my highest consideration.

William M. Berenson
Director, Department of Legal Services

His Excellency
Dr. Antonio Mercader
Ambassador, Permanent Representative
of Uruguay to the OAS, and President
of the GETC
2801 New Mexico Ave., N.W., Suite 1210
Washington, D.C. 20007

DRAFT GENERAL ASSEMBLY RESOLUTION CREATION OF ORGANIZATION OF AMERICAN STATES DEVELOPMENT AGENCY ("OASDA")

(Documented presented by Chair)

THE GENERAL ASSEMBLY,

HAVING SEEN, The Report of the Special Joint Working Group of the Permanent Council and of the Inter-American Council for Integral Development on Strengthening and Modernization of the OAS ("GETC"); the Resolutions of the Permanent Council and of the Inter-American Council for Integral Development ("CIDI") recommending the creation of the Organization of American States Development Agency ("OASDA"); and the Document entitled "Legal Opinion: Points Arising out of the Proposal of the United States Government to Create a Subsidiary Organ Within CIDI to Replace the Current Apparatus for Administering CIDI Programs and Projects," GETC/FORMOEA-72/98.

CONSIDERING,

That the Member States are committed to the objectives of improving the administration of partnership for development projects and activities, creating effective mechanisms for capturing external resources for its technical cooperation programs, and coordinating the Organization's efforts for the promotion and development of cooperative relations with other international organizations, the international financial institutions, national development agencies, the permanent observers, universities, foundations, and other private sector entities;

That to achieve those objectives, the GETC and CIDI, have recommended the establishment of OASDA as a subsidiary organ of CIDI under Articles 77 and 93 of the Charter and Article 5 and 16 of the CIDI Statute, which shall be responsible to the CIDI ministerial meetings and the Permanent Executive Committee of the Inter-American Council for Integral Development ("CEPCIDI");

That in establishing OASDA and adopting its Statute pursuant to Articles 53, 54(a), 77, and 93 of the Charter, the General Assembly must take into account the Article 77 of the Charter, which requires that membership in the subsidiary organs of the Councils, "insofar as possible, shall follow the criteria of rotation and equitable geographic representation;" Articles 98 and 95(c) of the Charter regarding the respective responsibilities of CIDI and the Executive Secretariat for Integral Development in executing and coordinating CIDI's technical cooperation projects; Articles 112 and 111 of the Charter describing the role of the Secretary General and General Secretariat in technical cooperation and in establishing cooperative relations; Articles 109, 112, 113, and 117, specifying the Secretary General's authority to direct the General Secretariat, to serve as its legal representative, to appoint the Executive Secretary for Integral Development, and to take decisions regarding the staffing, structure and administration of the General Secretariat within the parameters of the general standards and budgetary provisions adopted by the General Assembly; and the inter-American treaties governing the OAS Specialized Organizations.

That to achieve the desired level of efficiency in administering CIDI's partnership for development and technical cooperation activities, OASDA, through its Management Board, must assume administrative functions currently carried out by CEPCIDI, particularly in the areas administrative rule-making and of project approval, supervision, and evaluation; and it must also assume, through the Executive Secretariat for Integral Development, administrative functions currently carried out by other areas of the General Secretariat, including management of financial resources and the application of its own operational, budgetary, and personnel rules within the programmatic, policy and normative guidelines established by the CIDI ministerial meetings, the Permanent Council, CEPCIDI, its own Management Board, and the Secretary General, each in accordance with their respective areas of competence;

That the normative provisions of the Organization, including the CIDI and FEMCIDI Statutes, CIDI's Rules of Procedure, the General Standards Governing the Operation of the General Secretariat ("General Standards"), the Staff Rules, and the Financial Rules, must be amended to assure consistency with the OASDA Statute and to enable OASDA to achieve its objectives and carry out its functions;

RESOLVES:

1. To establish the Organization of American States Development Agency ("OASDA") as a subsidiary organ of CIDI and to adopt its Statute attached as Annex A of this Resolution.

2. To adopt the amendments to the CIDI Statute attached as Annex B of this Resolution.

{3. To instruct CIDI to modify the Statute for the Special Multilateral Fund of the Inter-American Council for Integral Development ("FEMCIDI Statute") and its Rules of Procedure to conform to this Resolution, and to inform the General Assembly of those modifications at its next regular session.}

4. To adopt the following additional transitory provisions to facilitate the timely initiation of OASDA's operations and activities.

a. The Permanent Council is hereby authorized to adopt and place into force amendments to the general standards which will permit the implementation of special personal, budgetary, operational and other administrative rules for OASDA, and it shall inform the General Assembly of those amendments at its next regular meeting;

b. Within ninety days of the date of this Resolution, the Secretary General, in consultation with the Executive Secretary for Integral Development and Administrator ("ES/Administrator"), shall present to the OASDA Management Board, CEPCIDI, and the Permanent Council a Work Plan and recommendations for implementing this Resolution, including provisions for sharing of services and resources with the OAS General Secretariat and for the transfer of personnel, resources, and projects to OASDA;

c. Within four months of the date of this Resolution, the Secretary General, in consultation with the ES/Administrator, will submit to the corresponding political bodies proposed personnel, budgetary, operations and management rules for adoption, and those political bodies, within their respective spheres of competence, shall take action on those proposed rules within the sixty-day period following their receipt. Those rules may not enter into force until the corresponding provisions of the general standards are duly amended. Pending the entry into force of those new rules, the current rules of the General Secretariat, as amended during the interim, shall apply;

d. The Offices of the General Secretariat in the Member States ("National Offices") which cannot be integrated into the main-stream activities of OASDA and for which the Secretary General cannot find alternative external financing to fund fully all their operations shall be closed by December 31, 1999; and

e. The Regular Fund shall support OASDA Fellowships in an amount not to exceed the amount in the entire approved Regular-Fund budget for Fellowships and training. Nonetheless, the amount expended from the Regular Fund shall be reduced each year by the amount of external funds obtained by OASDA for fellowships and training programs for the same year.

ANNEX A

STATUTE OF THE ORGANIZATION OF AMERICAN STATES DEVELOPMENT AGENCY ("OASDA")

Article 1

Nature

The Organization of American States Development Agency ("OASDA") is a subsidiary organ of the Inter-American Council for Integral Development ("CIDI") created pursuant to Articles 53, 54(a), 77 and 93 of the Charter and Articles 5 and 16 of the CIDI Statute. The Headquarters of OASDA is Washington, D.C.

Article 2

Purpose

The purpose of OASDA is to serve as the primary subsidiary organ within CIDI responsible for:

1. The direct administration, evaluation, and supervision of those technical cooperation and partnership for development programs established in the CIDI Strategic Plan and as otherwise approved CIDI and the Permanent Executive Committee of CIDI ("CEPCIDI"), including training, scholarships, and fellowships:

2. The promotion, development, and establishment of cooperative relations and financing arrangements with member states, permanent observers, other states, other international organizations and private entities and persons to obtain resources to strengthen CIDI's technical cooperation and development programs within the framework of policy guidelines and programs approved by CIDI and CEPCIDI, as the case may be.

3. The determination of the execution and level of financing of cooperation projects and activities presented by the member states or by the General Secretariat, taking into account the initial evaluation made by the Executive Secretariat for Integral Development ("Executive Secretariat"), the recommendations of the Non-Permanent Specialized Committees ("CENPES"), and the programmatic and policy guidelines adopted by CIDI or by CEPCIDI, each within its area of competence.

Article 3

1. OASDA shall carry out its functions and achieve its purposes without prejudice to CIDI's authority under Article 95(c) of the Charter to assign responsibility for the execution of development programs and projects to the subsidiary bodies and relevant organizations and without prejudice to the authority of the Specialized Organizations and other organs of the Organization of American States ("OAS")engaged in technical cooperation activities under the OAS Charter and other inter-American treaties.

2. OASDA is politically responsible to CIDI and to CEPCIDI when CIDI is not in session. It shall conduct its activities within the parameters of the CIDI Strategic Plan, the applicable provisions of the Program Budget and general standards approved by the General Assembly, and other guidelines established by CIDI and CEPCIDI.

Article 4

OASDA shall achieve its purposes through the following:

1. The Management Board;

2. The Executive Secretary for Integral Development, who shall serve as its Administrator.

3. The Executive Secretariat for Integral Development ("Executive Secretariat"), which shall serve as its Secretariat;

Article 5

{Option 1: Simple Seven Member Board, Modified U.S. Proposal (Modified CIM Model)

The Management Board shall be composed of seven member states elected by CEPCIDI for a three year term that may be renewed, in accordance, where possible, with the principles of rotation and equitable distribution.

Option 2: Simple Eleven-Member Board, one year terms (COM/CITEL Model)

Option 3: Twelve-Member Board, 2 year terms (Modified IICA Model)

e. As a transitional measure, the three members from each group to serve on the first Board constituted within thirty days of the adoption of this Statute will be elected by lot. The first two members selected by lot in each group will serve until January 1, 2002, at which time they will be rotated and replaced. The last of the members selected by lot in each group will serve until January 1, 2001, at which time they will be rotated out of office and replaced.}

Article 6

1. Each member state elected to the Management Board shall appoint a principal representative and may appoint an alternative representative and such advisors as it deems appropriate.

2. Each member shall have one vote.

3. The representatives of each Member State on the Board shall be accredited by their respective governments, through a communication addressed to the Secretary General, authorizing them to participate in the Board's decisions and other functions. Such accreditation shall be made through credentials presented by the corresponding Permanent Representative to the Organization of American States in Washington, D.C.

4. The expenses of the Board shall be borne by OASDA. Each member state on the Commission shall bear the cost of its own representative.

5. The Board shall adopt its own rules of procedure for meetings which shall cover, inter alia: frequency of regular meetings; the election, duties, and responsibilities of its officers; creation of sub-committees and working groups; the participation of member states that are not Board members, permanent observers, donors, special guests, and other interested persons and entities; notice requirements for convocation and other purposes; and the necessary quorum and specific majorities required for taking decisions.

Functions of the Management Board

The Management Board shall:

1. Provide operational guidance to the Executive Secretariat for implementing CIDI Projects within the policy and program guidelines established by CIDI and CEPCIDI;

2. Approve projects recommended by CENPES and establish the level of financing of cooperation projects and activities presented by the member states or the General Secretariat, taking into account the initial evaluation made by the Executive Secretariat;

3. Oversee, supervise, analyze and evaluate program and project implementation;

4. Develop and issue program evaluation and reporting policies, criteria, and timetables;

5. Recommend to CEPCIDI program-budget guidelines;

6. Issue operational policy guidelines for OASDA activities, including project administration, fund raising, and the conducting of cooperative relations;

7. Develop and recommend to CIDI or CEPCIDI, as the case may be criteria for determining needs and priorities in allocating technical cooperation resources by programs (taking into account sectoral contributions) and for determining the size, location, and functioning of OASDA field offices. Those criteria shall insure, insofar as possible, the targeting of resources at the most pressing needs of the Member States, especially the relatively less developed countries and those with smaller economies;

8. Develop and recommend to CEPCIDI for CIDI's approval a comprehensive fund-raising strategy for all OAS technical cooperation and partnership for development programs;

9. Report semi-annually to CEPCIDI and annually to the regular CIDI meetings;

10. Establish special accounts and funds as necessary;

11. Propose for adoption by CEPCIDI and the Permanent Council, within their respective areas of competence, its own personnel, management, accounting, budget, and operations rules and procedures;

12. Manage directly FEMCIDI, technical cooperation specific funds, fellowships, and OASDA field offices (former Offices of the General Secretariat away from Headquarters);

13. Promote and develop cooperative relations and financing arrangements with OAS member states, permanent observers, other states, other international organizations, and private entities and persons within the framework of policy guidelines established by CIDI and CEPCIDI, as the case may be;

14. Execute mandates received from CIDI and CEPCIDI, follow up on their decisions and recommendations, and carry out other functions as assigned under the applicable Rules of Procedure and the FEMCIDI Statute;

15. Instruct the Executive Secretariat concerning the execution of tasks and support activities necessary for the completion of the mandates and functions assigned to OASDA by the General Assembly, CIDI, CEPCIDI, and other organs of CIDI.

The Board shall perform its functions and carry out its duties in accordance with the Charter, the General Standards to Govern the Operation of the General Secretariat ("General Standards"), the inter-American treaties, and the applicable resolutions and guidelines of the General Assembly, CIDI, the Permanent Council.

Article 8

The Executive Secretary for Integral Development And Administrator ("the ES/Administrator")

1. The Executive Secretary for Integral Development shall be designated the Administrator of OASDA and shall serve as OASDA's chief executive officer. The official title for the OASDA Administrator is "Executive Secretary for Integral Development and Administrator" ("ES/Administrator").

2. The ES/Administrator shall be a person highly versed in technical cooperation, project administration, financial management, and fund-raising.

3. The Secretary General shall appoint the ES/Administrator to a four year term, upon consultation with the Management Board and subject to CIDI's approval. The term may be renewable once, upon consultation with the Management Board and upon CIDI's approval, for a term of up to four years. Notwithstanding the four-year term, the appointment shall be a position of trust under Articles 17(c) and 20 of the General Standards; however, the ES/Administrator may be removed from office for cause either by a two thirds vote of CEPCIDI or by the Secretary General, in consultation with the Management Board.

4. Upon consultation with the Management Board and as provided under the general standards and applicable budgetary provisions, the Secretary General shall establish the remuneration of the ES/Administrator. The compensation so established may be based on market conditions and shall not be governed by the limitations set out in the first three paragraphs of Article 36 of the General Standards Governing the Operation of the General Secretariat and Resolutions AG/RES. 1319(XXV-O/95) AG/RES. 1275 (XXIV-O/94), and CP/RES. 631.

Article 9

Functions of the ES/Administrator

As the chief executive officer of OASDA, the ES/Administrator shall:

1. Direct the Executive Secretariat in the performance of its functions under the OAS Charter, the CIDI Statute, this Statute, and other applicable rules and regulations of the Organization.

2. Perform the technical and administrative activities that the Management Board and Secretary General entrust to the ES/Administrator within the framework of the rules and standards of the Organization and the policy guidelines established by the CIDI, CEPCIDI, and the Management Board, in accordance with their respective areas of competence;

3. Report regularly on OASDA operations, projects, and other activities to the Management Board and to the Secretary General, and report to CEPCIDI and the CIDI, as requested.

4. Represent the Secretary General, when so authorized, in CIDI, CEPCIDI, the OASDA Management Board, and in other CIDI activities.

Article 10

The Executive Secretariat

1. The Executive Secretariat, a dependency of the General Secretariat, shall serve as the OASDA Secretariat.

2. The staff of the Executive Secretariat shall be appointed by the Secretary General, in consultation with the ES/Administrator, and the staff may be terminated by the Secretary General in accordance with his authority under the Charter and the General Standards Governing the Operation of the General Secretariat ("General Standards").

3. The Secretariat will be identified in OASDA Rules and Regulations and Official OASDA Documents as the "Executive Secretariat for Integral Development," so as not to lose its identity under Article 98 of the Charter.

Article 11

Functions of the Executive Secretariat

The Executive Secretariat shall:

1. Design the procedures and supervise the execution of projects in the following areas: (i) presentation and preliminary evaluation; (ii) preparation of plans of activities; (iii) authorization of obligations and disbursements; and (iv) follow-up and evaluation of results.

2. Support CIDI, CEPCIDI, and the Management Board in formulating the inter-American programs and incorporating them into the Strategic Plan;

3. Coordinate and provide support to member states who request assistance in formulating projects;

4. Conduct a preliminary evaluation of all requests for cooperation activities presented by the member states or the General Secretariat and submit the results to the Management Board for consideration;

5. Support CIDI and its subsidiary bodies in managing the participation of other inter-American and international agencies, as well as cooperation agencies of member and permanent observer states, in cooperation activities;

6. Authorize the obligation of funds and other resources approved by the Management Board for financing projects and other activities related to partnership for development;

7. Report regularly to the Management Board on the progress, results, and final evaluation of the inter-American cooperation programs;

8. Encourage the exchange of specialized knowledge and information among the institutions of the member states, and between them and the institutions of the permanent observer states;

9. Prepare the annual Programming Proposal for FEMCIDI for approval of the Management Board in accordance with the requirements of the FEMCIDI Statute.

10. Assist the Management Board in the promotion and development of cooperative relations and financing arrangements with member states, permanent observers, and other entities and persons.

11. Account to the Management Board for the management and administration of resources provided for technical cooperation from the Regular Fund, FEMCIDI and the special funds established for technical assistance.

12. Support the Management Board in the preparation of OASDA's management, accounting, budgetary, and operations rules and procedures.

13. Administer and staff the OASDA field offices;

14. Administer fellowship resources and programs in the area of technical cooperation and partnership for development;

15. Perform other administrative functions assigned by the Management Board for carrying out partnership for development projects and activities.

The Executive Secretariat shall perform these functions in accordance with the General Standards Governing the Operation of the General Secretariat, the resolutions and policy guidelines of CIDI, CEPCIDI and the Management Board, as well as the other rules and regulations of the Organization.

Article 12

Resources

1. OASDA will receive, deposit, account for, and otherwise manage FEMCIDI and other special funds it collects and creates.

2. Until alternative funding sources of non-Regular Fund financing are secured and identified, the Regular Fund shall continue to finance fellowships, training programs, the costs of the Executive Secretariat's infrastructure and personnel, and the costs of the Management Board's meetings. The amount allocated by the Regular Fund each year for the support of OASDA's activities shall be reduced proportionately by the amount of external funds obtained by OASDA for the same year.

CHAPTER III - GENERAL PROVISIONS

Article 13

Governing Norms

OASDA shall be governed by the present Statute, by its regulations, and by the resolutions of CIDI, CEPCIDI, and the OAS General Assembly.

Article 14

Languages and Documents

1. English, French, Portuguese, and Spanish are the official languages of OASDA.

2. Spanish and English shall be the working languages. For the regular meetings of the Management Board, working documents shall be available in Spanish and English and translation in those two languages shall be available; however, members of the Board may present their written proposals in any of the official languages of OASDA.

3. The annual report, rules of procedure, and final resolutions of the Management Board shall be published in the official languages of OASDA. All other OASDA documents shall be published in the working languages.

Article 15

Conference and Logistics Support for Meetings

The General Secretariat is responsible for providing conference services and other logistics suport to CIDI, to CEPCIDI, and to CIDI's subsidairy bodies, as well as to the Management Board Meetings. Those services shall not be provided by SEDI, but rather by other dependencies of the General Secretariat, in accordance with the provisions of the program budget and availability of resources.

Article 16

Amendment

1. The present Statute, approved by the General Assembly of the Organization, may be amended only by the General Assembly, at its own initiative or upon OASDA's request approved by CIDI.

2. Based on increased external funding of OASDA activities and other pertinent considerations, the General Assembly may adopt a resolution separating the ES/Administrator and the Executive Secretariat from the General Secretariat. In that event the following provisions shall no longer apply and the Management Board will adopt provisions to take their place: the provisions in Article 8(3)regarding the removal of the ES/Administrator; Article 8(4), on compensation of the ES/Administrator; Article 9(4), on authority to represent the Secretary General); Article 10(1), identifying the Executive Secretariat as a dependency of the General Secretariat; Article 10(2), on appointment of the staff of the Executive Secretariat; the specific provisions in Article 9 obligating the ES/Administrator to carry out functions for and to report to the Secretary General.

Article 17

Entry into Force

The present Statute shall enter into force on the date it is approved by the General Assembly.

ANNEX B

AMENDMENTS TO THE STATUTE OF THE INTER-AMERICAN

COUNCIL FOR INTEGRAL DEVELOPMENT

1. Article 5 is hereby modified as follows:

CIDI shall have the following subsidiary bodies, organs and agencies:

a) The Permanent Executive Committee of the Inter-American Council for Integral Development ("CEPCIDI");

b) The Organization of American States Development Agency ("OASDA");

c)b Nonpermanent Specialized Committees;

d)c) Special Committees; and

e)d) Other subsidiary bodies, organs, and agencies created by the Council.

2. Article 8 is hereby amended as follows:

CEPCIDI shall have the following functions:

b. To analyze the reports on the execution of cooperation activities presented by OASDA and other organs entrusted with project execution-related responsibilities, with a view to submitting a report to CIDI.

c. To carry out mandates received from CIDI, follow-up on the decisions and recommendations CIDI adopts, and carry out the functions assigned to it under CIDI's Rules of Procedure and its Rules of Procedure;

d. To propose to CIDI the creation of subsidiary bodies, organs, and agencies for the development of hemispheric cooperation in accordance with the provisions of these Statues;

e) To create its subsidiary bodies;

f) To instruct the Executive Secretariat for Integral Development ("Executive Secretariat") concerning the execution of tasks and support activities for the fulfillment of the mandates and functions assigned to CEPCIDI;

3. Article 11 shall be Article 13, and the numbering of the remaining articles of the Statute shall be modified accordingly.

4. The new Articles 11 and 12 shall state:

Article 11. The Organization of American States Development Agency ("OASDA")

5. Article 12, which is now renumbered as Article 14, shall be modified to state:

Within their respective areas of competence, the CENPES these Committees shall have the following functions:

a) Assist CIDI in the formulation of sector policies and programs of the Strategic Plan;

b) Coordinate and examine the proposals for cooperation programs, projects and activities made by the member states or the General Secretariat and submit them with their its recommendations to the Executive Secretariat for consideration by CEPCIDI the OASDA Management Board.

c) Periodically study the execution of cooperation activities and their results and present to CEPCIDI the OASDA Management Board those recommendations it considers pertinent;

d) Support, within its area of competence, the preparation of the meetings of CIDI, CEPCIDI, and the OASDA Management Board;

e) Fulfill the specific mandates that CIDI, CEPCIDI and the OASDA Management Board assign, and report to them it in this regard.

6. Article 17, which is now renumbered Article 19, shall be modified as follows:

1. The Executive Secretariat for Integral Development, is a the dependency component of the General Secretariat that serves as the OASDA Secretariat, is responsible to CIDI, CEPCIDI, and the OASDA Management Board for the execution, and when appropriate, for the coordination of cooperation activities.

2. The Executive Secretary for Integral Development (also "the ES/Administrator"), who is appointed by the Secretary General with the approval of CIDI upon consultation with the Management Board, shall direct the Executive Secretariat, serve as the Administrator of OASDA, and fulfill those functions and responsibilities that are established in these Statutes and the OASDA Statute within the framework of the Charter.

3. Specifically, the Executive Secretariat shall:

a) Design the procedures and supervise the execution of projects in the following areas:

i) Presentation and preliminary evaluation;

ii) Preparation of plans and activities;

iii) Authorization of obligations and disbursements; and

iv) Follow-up and evaluation of results.

b) Support CIDI in formulating the inter-American programs and incorporating them into the Strategic Plan;

c) Coordinate General Secretariat support provided to member states who request it for the formulation of projects;

d) Conduct a preliminary evaluation of all requests for cooperation activities presented by member states or the General Secretariat, and submit the results to the CEPCIDI OASDA Management Board for consideration;

e) Support CIDI and its bodies in managing the participation of other inter-American and international agencies, as well as cooperation agencies of member and permanent observer states, in cooperation activities;

f) Authorize the obligation of funds and other resources approved by the CEPCIDI OASDA Management Board for financing projects and other activities related to partnership for development;

g) Report regularly to the CEPCIDI OASDA Management Board on the progress, results and final evaluation of the inter-American cooperation programs;

h) Perform all other functions assigned to it in the OASDA Statute.

7. Article 18, which is now renumbered Article 20, shall be modified as follows:

The Executive Secretariat shall encourage the exchange of specialized knowledge and information among the institutions of the member states, and between them and the institutions of the permanent observer states.

8. Article 19, which is now renumbered Article 21, shall be modified as follows:

The Secretary General, in consultation with the OASDA Management Board and the ES/Administrator, shall establish those mechanisms that are necessary to ensure that the Executive Secretariat for Integral Development coordinates the cooperation activities that the Organization carries out through its components organs.

9. Article 20, which is now renumbered Article 22, shall be modified as follows:

Article 22 21. Responsibility of the Executive Secretariat

The Executive Secretariat, as the Secretariat of OASDA, shall be accountable to CIDI and directly accountable to the OASDA Management Board for the execution and coordination of cooperation activities supported by the OAS within the framework of the Council, for the use of resources allocated by the member states for their execution and for their progress and results.

10. Article 21(e), which is now renumbered Article 23(e), shall be modified as follows:

e) Entrust CEPCIDI, the Executive Secretariat, and the other components of the General Secretariat, as the case may be, OASDA, the General Secretariat, and other organs of the Organization, within their respective areas of competence and as the case may be, with fulfilling the mandates and carrying out the mandates CIDI finds appropriate.

11. Article 30, which is now renumbered Article 32, shall be modified to state:

CEPCIDI, after receiving the recommendations of the OASDA Management Board, shall submit a report to CIDI on inter-American cooperation with its necessary recommendations for the annual Program-Budget.

12. Article 32, which is now renumbered Article 34, shall be modified to state:

CIDI shall adopt its own Rules of Procedure, those of its Special Committees, and those of its subsidiary bodies, organs, and agencies; however, any such subsidiary body, organ or agency may adopt its own internal rules of procedure and other internal rules and regulations if so authorized under its Statute approved by CIDI and the General Assembly, or as otherwise delegated by CIDI, subject to the following conditions:.

SECTION BY SECTION ANALYSIS
DRAFT GENERAL ASSEMBLY RESOLUTION FOR CREATION OF THE
ORGANIZATION OF AMERICAN STATES DEVELOPMENT AGENCY ("OASDA")

I. INTRODUCTION

This Draft Resolution is in three parts: The body of the Resolution; Annex A, which is the proposed Draft Statute of OASDA; and Annex B which are the changes in the CIDI Statute required as a result of the creation of OASDA and which must be approved by the General Assembly in accordance with Article 79 of the Charter. This Section by Section analysis covers each part separately below:

II. THE BODY OF THE RESOLUTION

A. The Recitals

The purpose of the recitals is to set out in summary form the underlying rationale for the decision to create OASDA and the major factors and documents considered by the General Assembly in taking that decision. They are divided into two sections: One beginning with "Having Seen;" the other with "Considering."

1. "Having Seen" Recital

Section Analysis

This recital paragraph lists the documents to be submitted to the General Assembly and to be reviewed by it before taking the decision to create OASDA. They will include the Report of the GETC and the Reports and Recommendations of the Permanent Council and CIDI presented pursuant to Resolution AG/RES. 1606 (XXVIII-O/98). Also, because of the legal concerns raised by the Member states in deliberating the creation of this entity, the "Legal Opinion" could be included among the documents presented to the General Assembly for its consideration of this matter.

2. "Considering" Recitals

a. General Remarks

Earlier drafts of this Resolution, which were entitled "Strengthening of Technical Cooperation" had included numerous recitals concerning the purposes, direction, and content of OAS technical cooperation in general. The narrower focus of this draft resolution, which is simply the creation of OASDA, eliminates the need for those policy statements in the recitals. If the General Assembly wishes to make a statement about the general direction and purposes of technical cooperation and partnership for development at its Twenty-ninth Regular Session, it could do so in another Resolution or by way of a Declaration. Inclusion of those statements in this Resolution, however, would distract from its major purpose -- the creation of OASDA -- and make it more difficult to follow. Thus, the exclusion from this draft resolution of general policy statements on technical cooperation, its over-all direction, and its purposes is intentional.

b. First "Considering" Paragraph

Section Analysis

This paragraph summarizes the objectives of the Member State which have motivated them to create OASDA: the desire to improve the administration of technical cooperation and partnership for development; the need to create effective mechanisms for capturing external funding, for coordination of projects, and for the promotion and establishment of more meaningful cooperative relations.

c. Second "Considering" Paragraph

That to achieve those objectives, the GETC and CIDI have recommended the establishment of OASDA as a subsidiary organ of CIDI under Articles 77 and 93 of the Charter and Article 5 and 16 of the CIDI Statute, which shall be responsible to the CIDI ministerial meetings and the Permanent Executive Committee of the Inter-American Council for Integral Development ("CEPCIDI");

Section Analysis

The purpose of this paragraph establishes that the decision to create OASDA is based on a recommendation of the GETC to create OASDA as a subsidiary organ of CIDI within the meaning of Articles 77 and 93 of the Charter and the corresponding articles of the CIDI Statute. It also establishes that the reason underlying that recommendation is the GETC's conclusion that creation of OASDA will be critical for enabling the Organization to fulfill the objectives set out in the preceding paragraph.

d. Third "Considering" Paragraph

Section Analysis

The purpose of this paragraph is to set out the legal parameters within which OASDA is established and within which it must operate. All relevant Charter articles are duly cited and briefly explained, including: those relating to the composition of the OASDA Management Board; those relating to the subordinate status of subsidiary organs, bodies, and agencies; those referring to the status of the Executive Secretariat for Integral Development as the principle organ charged with executing partnership for development projects; those referring to the discretion of CIDI to assign project execution tasks to other OAS organs and entities; those referring to the functions of the General Secretariat in the area of technical cooperation; and finally, those referring to the status and scope of authority of the Secretary General within the Organization.

e. Fourth "Considering" Paragraph

Section Analysis

The purpose of this paragraph is to recognize that the creation of OASDA requires the transfer to OASDA of certain project administration, selection, and evaluation functions currently performed by CEPCIDI under its Statute, as well as other functions performed by other administrative dependencies of the General Secretariat. This paragraph establishes the logical foundation for the next recital paragraph which recognizes the need to modify the CIDI Statute and other norms of the Organization to accommodate OASDA within the structure of CIDI and the General Secretariat.

f. Fifth "Considering" Paragraph

Section Analysis

As stated above, the purpose of this final paragraph is to recognize the need to modify the CIDI Statute and other normative instruments of the Organization to accommodate OASDA and assure consistency between the OASDA Statute and those other normative instruments. This paragraph also provides the rationale for the inclusion of the proposed amendments to the CIDI Statute as part of this Resolution and for the inclusion in the final "operative" (resolutive) paragraph authorizing the pertinent organs of the Organization, within their respective areas of competence, to make the corresponding changes in the normative instruments of the Organization necessary for enabling OASDA to achieve its purposes and carry out its functions.

B. Operative (Resolutive) Provisions

1. Operative Paragraph No. 1

1. To establish the Organization of American States Development Agency ("OASDA") as a subsidiary organ of CIDI and to adopt its Statute attached as Annex A of this Resolution.

Section Analysis

The purpose of this paragraph is to have the General Assembly affirmatively establish OASDA as a subsidiary Organ of CIDI and approve its Statute. The Statute is attached as Annex A.

2. Operative Paragraph No. 2

2. To adopt the amendments to the CIDI Statute attached as Annex B of this Resolution.

Section Analysis

The purpose of this paragraph is to have the General Assembly affirmatively adopt the amendments to the CIDI Statute, pursuant to its authority under Article 79 of the Charter. As explained above, those amendments are necessary to assure consistency between the CIDI Statute and the OASDA Statute.

3. Operative Paragraph No. 3

Section Analysis

Article 79 of the Charter gives CIDI authority to approve its own regulations (but not its own Statute), and under that Authority, CIDI approved the FEMCIDI Statute and its own Rules of Procedure in 1997. The FEMCIDI Statute and CIDI's Rules of Procedure must be modified to assure consistency with the OASDA Statute and amendments to the CIDI Statute approved by the General Assembly. This Paragraph instructs CIDI to make the necessary modifications to the FEMCIDI Statute and its Rules of Procedure to assure the required consistency. This paragraph is in brackets because it will not be necessary if CIDI adopts those amendments prior to the Genera Assembly Meeting in June 1999. Proposed amendments have already been prepared for that purpose.

4. Operative Paragraph No. 4

Section Analysis

The primary purpose of this Paragraph is to set out the necessary authorizations, directives, and guidelines for enabling OASDA to commence operations in accordance with its Statute.

Subsection a: The Draft OASDA Statute provides that OASDA will operate in accordance with its own budgetary, operational, personnel, and other administrative rules. Nonetheless, because the OASDA Secretariat, the Executive Secretariat for Integral Development ("SEDI"), is a dependency of the General Secretariat, the General Standards must be modified to allow SEDI to function under rules different from those otherwise applied to the General Secretariat. The purpose of Subsection "a" of Operative Paragraph 4 is to authorize the Permanent Council to adopt and implement those modifications. Article 54(g) of the Charter expressly assigns the authority for adopting General Standards to the General Assembly. Nonetheless, the General Assembly has delegated that responsibility to the Permanent Council before. The most recent examples are AG/RES. 1319 (XXXV-O/95) and AG/RES. 1382 (XXVI-O/96).

Subsection b: Under the Draft OASDA Statute, the Executive Secretariat for Integral Development is responsible for performing functions currently performed by other areas of the Secretariat. Similarly, it is anticipated that SEDI will cease to perform conference secretariat services for CIDI and that those services will be provided by the Conference Services Secretariat of the General Secretariat. Clearly, implementation of all of this will require transfers of personnel, functions, and resources between SEDI and other areas of the General Secretariat. Subsection "b" instructs the Secretary General, in consultation with the Executive Secretary for Integral Development, to submit a Work Plan to the OASDA Management Board, to CEPCIDI, and to the Permanent Council, which will set out how those transfers are to be accomplished and how resources and services may be shared between SEDI and other dependencies of the General Secretariat.

Subsection c: As suggested in the recitals, in Subsection "a" above, and in the OASDA Statute, OASDA may operate under its own budgetary, personnel, operational, and other administrative Rules. Those rules must be consistent with the policies established by the superior political bodies -- the General Assembly, the Permanent Council, CEPCIDI, and CIDI, each within its respective area of competence. Subsection "c" requires the Secretary General, in consultation with the Executive Secretary for Integral Development, to present those rules for adoption by the corresponding political bodies within six months of the date of this Resolution. It further provides, however, that until those rules are adopted, the rules currently in force in the General Secretariat, as they may be amended during that period, shall apply to SEDI and OASDA.

Subsection d: Under Articles 6.7 and 10.13 of the Draft OASDA Statute, OASDA, through its Management Board and SEDI, will manage and staff the offices of the General Secretariat away from headquarters, which shall be known as OASDA "field offices." The purpose of Subsection d is to require the General Secretariat to close those offices away from headquarters which SEDI decides not to operate unless it can find new sources of financing (non-Regular Fund) for all the operations of those offices.

Subsection e: Article 11.2 of the Draft OASDA Statute provides that fellowships and training programs will be financed by the Regular Fund until other sources of funding are obtained. The expectation is that in the long run, fellowships and training will be entirely financed by a capital fund, supplemented by specific funds. Until that happens, the Regular Fund will continue to bear all or a portion of the costs. Subsection e establishes that as new financial resources are secured for fellowships and training, the amount of Regular Fund resources allocated to fellowships and training programs will be reduced by the amount of those new financial resources. The purpose is to gradually reduce the dependency of fellowships and training resources on regular fund resources.

III. ANNEX A: THE DRAFT OASDA STATUTE

CHAPTER I: NATURE, PURPOSE AND SCOPE OF AUTHORITY

Article 1: Nature

The Organization of American States Development Agency ("OASDA") is a subsidiary organ of the Inter-American Council for Integral Development ("CIDI") created pursuant to Articles 53, 54(a), 77 and 93 of the Charter and Articles 5 and 16 of the CIDI Statute. The Headquarters of OASDA is Washington, D.C.

Section Analysis

Like the Statutes of other OAS organs, the OASDA Statute begins with a short paragraph describing the nature of the entity. It describes OASDA as a subsidiary organ of CIDI, created pursuant to the pertinent Articles of the OAS Charter. It also establishes the headquarters of OASDA in Washington, D.C., which is also the headquarters of the General Secretariat and Permanent Council under Articles 92 and 121 of the Charter.

2. Article 2: Purpose

Section Analysis

This Article describes the purposes of OASDA as they were first presented in the proposal for its establishment and discussed in the GETC. Those purposes are: (1) to administer CIDI technical assistance programs within the CIDI Strategic Plan, including training, scholarships, and fellowships; to promote, develop, and establish cooperative arrangements and financing arrangements with other entities; and (3) to approve projects under programs approved by CEPCIDI and CIDI and to allocate available funding to them in accordance with CIDI and CEPCIDI guidelines. This section underscores, consistent with the limitations suggested by the Charter and expressly referenced in the following Article, that OASDA is the "primary" organ in the OAS responsible for achieving those purposes. It is not necessarily the only one.

3. Article 3: Scope of Authority

Section Analysis

The purpose of this Article is to identify the parameters of the authority of OASDA as a subsidiary organ of CIDI under the Charter.

Section 1: This section affirms that OASDA cannot, in seeking to achieve its purposes, infringe upon the authority of the specialized organizations who have authority to administer technical cooperation under the corresponding inter-American treaties; nor can it extinguish CIDI's authority, as a superior organ, to assign technical cooperation functions to another organ in the best interests of the Organization in accordance with Article 95(c) of the Charter.

Section 2: The purpose of this section is to underscore that OASDA is a subsidiary organ within CIDI, clearly subordinate to CIDI. In that regard, it provides that OASDA must operate within policy and program guidelines established by CIDI and CEPCIDI and within the general standards and applicable budgetary provisions adopted by the General Assembly.

CHAPTER II: STRUCTURE AND FUNCTIONS

Article 4: Basic Structure

Section Analysis

Like most other OAS Organs and corporate entities, OASDA will carry out its functions through its own institutional components, dependencies, or "sub-organs"). The purpose of Article 4 is to identify those components. They are the Management Board, made up of Member states selected in accordance with this Statute; the Executive Secretary for Integral Development ("Executive Secretary"), who serves as the administrator of the agency; and the Executive Secretariat for Integral Development ("Executive Secretariat" or "SEDI"), which serves as the Secretariat and is directed by the Executive Secretary. The designation of the Executive Secretariat as the OASDA Secretariat is necessary to assure that SEDI will continue to carry out the project execution functions for CIDI assigned to it under Article 98 of the Charter. It follows from the institutional logic established under the Charter that the Executive Secretary, as the administrative official entrusted with the management of SEDI, must be the OASDA Administrator if SEDI is to serve as the OASDA Secretariat.

Article 5. Membership of the Management Board

Because at the time of this drafting, there are divergent views on the composition and size of the Board, what follows below are suggestions for three options which would satisfy the minimum legal requirements.

The Management Board shall be composed of seven member states elected by CEPCIDI for a three year term that may be renewed, in accordance, where possible, with the principles of rotation and equitable distribution.

Section Analysis

Article 77 of the Charter recognizes that a subsidiary organ of an OAS Council, as is OASDA, may have a directorate with fewer than all the Member states. It further provides that in determining the membership of those subsidiary organs, insofar as possible, principles of rotation and equitable geographic representation should be observed. Although they are well aware of the requirements of Article 77, the Member states have yet to reach political consensus on how many members the Management Board will have and how they are to be selected. This Draft Article contains several options in brackets, which are briefly discussed below. It is anticipated that the delegation of Mexico and CARICOM have additional options for consideration.

Option 1: Seven Member Board Modified United States Proposal (Modified CIM)

This, option, which reflects a proposal of the Delegation of the United States of America, would establish a seven member board with three year terms. In that regard, it is similar to the CIM Executive Committee, which also has seven members. Under this proposal, the principle of "periodic rotation and equitable distribution of members" would be observed. The advantage of this proposal is that the smaller size of the Board would permit greater flexibility and informality of operation and lower operating costs. Moreover, the longer three year terms would allow for greater stability and enable members sufficient time to make meaningful contribution's to the Board's work. Yet there are also disadvantages compared to the other options. First, the longer-three year renewable terms and smaller number of members would decrease substantially the opportunity of member states to serve as voting Members on the Board. Second, the term "equitable distribution" is an undefined and ambiguous standard compared to the criteria of "equitable geographic representation" used in Article 77 of the Charter and implemented in the Statutes of CIM, CITEL, and the former CEPCIECC. Thus, it will be difficult to apply. Some of the disadvantages cited above may be mitigated by assuring that all Member states have the right to participate as observers in Board Meetings.

Option 2: Eleven Member Board, one year terms (COM/CITEL Model)

The Inter-American Telecommunication Commission ("CITEL") both have eleven member Executive Boards (COM/CITEL), respectively, as did the first former Permanent Executive Committee of the Inter-American Council for Science, Education and Culture ("CEPCIECC"), established in 1970. The Eleven-member Board replicates the model used by those earlier organs. Unlike the IICA model, selection is not automatic. Rather members are elected on a periodic basis (each year, as in the case of CIM and the former 1970 version of CEPCIECC). As in the CIM Statute, there is a provision requiring periodic rotation. No country may be re-elected to the Management Board until all others who want to serve during the rotation cycle have had their turn. Unlike the IICA model, there is no provision to guarantee selection based on geographic representation. Nonetheless, the Statute expressly states that the Member states, insofar as possible, will seek to observe that principle in selecting the Board's membership.

Option 3: Twelve Member Board, 2 year terms. Modified IICA Model

When faced with a similar problem of selecting membership on its Executive Committee, the Member states of the Inter-American Institute for Cooperation on Agriculture ("IICA") decided on a twelve member Board whose members would be selected for two year terms from four regional groups. The IICA model assures periodic rotation and equitable geographic representation. Three Member states from each of the four geographic areas serve on the Executive Committee. Their selection is automatic under a predetermined Table of rotation. From time to time, the Institute has modified the Rotation Table to accommodate new members. Under the Table, no country from any geographical grouping serves again until all of the others in that group have had their turn. The advantage of the system are several: First, all countries know when their time to serve will be so that they may adequately prepare in advance. Second, there is no need for potentially time-consuming and contentious elections.

Article 6. Participation in Board Meetings

Section Analysis

The provisions of this Article are for the most part adapted from the IICA Rules governing its Executive Committee.

Section 1: This section affirms that each member state selected to serve on the Board is entitled to have one principal representative on the Board. It may appoint alternative representatives to serve in the principal's place, and advisors in accordance with its needs.

Section 2: This Section establishes that each member state on the Board will have one vote. As in all other organs of the OAS, votes are equal and unweighted.

Section 3: The purpose of this Section is to clarify the method by which the representatives of Board members are to be accredited. It provides that the corresponding member's states' Permanent Representative to the Permanent Council will be responsible for presenting the credentials to the Secretary General. The Secretary General is the official designated to receive credentials because the Executive Secretary for Integral Development will not be responsible for providing meeting services to the Board.

Section 4: This section clarifies that the OASDA shall finance its own Board meetings. Also, as is the case in other CIDI organs, each Member State will bear the costs of its own delegation. OASDA will not pay per diem and travel expenses of the principal representative of each Member, as may be the practice in some other technical cooperation intergovernmental bodies.

Section 5: This section clarifies that the OASDA Management Board will have authority to make its own Rules of Procedure for conducting its meetings. By its very nature, this provision constitutes a delegation of rule-making authority from CIDI to OASDA, because under Article 79 of the Charter, CIDI has the authority to approve the Rules of Procedure for its subsidiary organs, agencies, and bodies. Rule-Making authority of this nature is not unprecedented. CITEL, CICAD, CIM, the Retirement and Pension Committee, the Rowe Fund Committees, for example, all have authority under their respective statutes to adopt their own rules of procedure. Notwithstanding this delegation of authority, the rules of procedure adopted by OASDA may not exceed any general guidelines or principles for the rules of procedure of CIDI's subordinate organs that may be adopted by CIDI or by CEPCIDI by way of delegation from CIDI. This limitation on the Management Board's rule-making authority in relation to its rules of procedure is directly set out and underscored in the proposed draft modifications to Article 32 of the CIDI Statute, attached hereto in Annex B.

Article 7. Functions of the Management Board

Section Analysis

Many of the functions contained in this Article are those which the United States delegation's initial proposal recommended for assignment to the Board. Most significantly, this Article assigns to the Management Board project selection, approval, supervision, and reporting functions previously performed by CEPCIDI and its Subcommittee on Programming. Proposed amendments to Articles 8, 11, and 12 of the CIDI Statute set out in Annex B herein reflect more specifically the transfer of those functions from CEPCIDI to the Management Board.

Section 1: The purpose of this section is to note that although the Board will provide day-to-day administrative guidance for administration of projects, it will be bound to follow broad policy and program guidelines established for that purpose by CIDI and CEPCIDI.

Section 2: This section expressly confers upon the Board the project approval function currently performed by CEPCIDI under Article 8(a) of the CIDI Statute.

Section 3: This section expressly assigns to the Board the project supervision and evaluation functions currently within CEPCIDI's responsibility under Article 8(b) of the CEPCIDI Statute. Under the proposed amendments to Article 8(b), CEPCIDI will continue to the evaluation and supervision function, but it will do so on a broader and more generalized level based on initial reports prepared by OASDA.

Section 4: This section expressly authorizes the Board to develop for program evaluation and reporting internal policies, criteria, and timetables.

Section 5: This section specifies that the Board may recommend to CEPCIDI guidelines for preparing the CIDI technical cooperation budget. CEPCIDI, pursuant to its authority under Article 8 of the CIDI Statute, may endorse those recommendations and forward them to CIDI for adoption.

Section 6: This section authorizes the Board to develop its own internal operational policy guidelines, to be followed by the Executive Secretariat in administering projects and engaging in cooperative relations and fund raising activities.

Section 7: This section confers upon the Board the responsibility of recommending to CIDI standards for allocating technical cooperation resources by program, as well as standards for locating, staffing, and allocating resources to field offices. It also requires that in recommending those criteria, the Board must take into account, to the extent possible, the need to direct resources to the lesser developed countries and smaller economies, as stated in the CIDI Strategic Plan.

Section 8: This section requires the Board to recommend to CIDI, through CEPCIDI, strategies for fund raising.

Section 9: This section underscores the Board's responsibility to Report regularly to CEPCIDI and to CIDI.

Section 10: Under proposed amendments to the FEMCIDI Statute, OASDA shall have responsibility for managing FEMCIDI and other voluntary funds dedicated to partnership for development and technical cooperation. This Section gives the reaffirms the Board's competence to establish accounts and funds for that purpose.

Section 11: It is anticipated that OASDA will operate under different budgetary, personnel, and operational rules from those that apply at large in the General Secretariat. The purpose of these rules is to specify that the Board is obligated to propose those rules to CEPCIDI and the Permanent Council, for adoption within their respective areas of competence.

Section 12: This section makes clear that the Board will assume full responsibility for the direct day-to-day management of FEMCIDI and other technical cooperation funds, fellowships, and those Offices of the General Secretariat away from Headquarters which are converted into OASDA technical cooperation field offices.

Section 13: This section assigns to the Board the responsibility for promoting and developing cooperative relations and financing arrangements with other entities within guidelines established by CIDI and CEPCIDI within there respective areas of competence.

Section 14: This Section assigns to the Board the responsibility for carrying out the policy mandates of CIDI and CEPCIDI, as well as its functions expressly assigned under the CIDI and FEMCIDI Statutes.

Section 15: This Section assigns to the Board the responsibility for the technical direction of SEDI in completing mandates assigned to OASDA by superior political organs.

Final Paragraph: The closing paragraph of this Article underscores that the Board, in exercising its authority and carrying out its functions, must comply with the policies and directives of superior political organs and with the OAS Charter.

Article 8. The Executive Secretary for Integral Development and Administrator ("ES/Administrator")

Section Analysis

Section 1: This section establishes that the Administrator of OASDA shall be the Executive Secretary for Integral Development ("ES/Administrator" or "Executive Secretary"). To assure that the identity of the Executive Secretary under the Charter is institutionally preserved, this section specifies that the Executive Secretary's title within OASDA shall be "Executive Secretary for Integral Development and Administrator."

Section 2: This section establishes the qualifications for the post of the ES/Administrator in order to assure that individual appointed is technically capable of performing the functions of the position consistently with the expectations of the member states. It requires that that individual be highly versed in technical cooperation, project administration, financial management, and fund-raising.

Section 3: This section derives from Article 117 of the Charter, which stipulates that the Secretary General appoints the Executive Secretary, with CIDI's approval. As suggested by the delegation of the United States in its initial proposal, this section provides that the Executive Secretary will serve for a four year term, which may be renewable once for up to four years. Because CIDI approves the initial appointment, upon consultation with the Management Board, this section also requires that the renewal appointment must also count with CIDI's approval, upon consultation with the Board. This section further indicates that the position of Executive Secretary will continue to be a position of trust, as it presently is, under Articles 17(c) and 20 of the General Standards. This is important because the Secretary General is ultimately responsible to the General Assembly for the management of the General Secretariat and he must therefore have authority to remove the Executive Secretary in the event the Executive Secretary unduly interferes with that responsibility. Unlike the case of all other trust appointments in the General Secretariat, however, removal must be for cause, not at will, as insisted upon by the United States delegation in its initial proposal. Any replacement, in the event of such removal, must be approved by CIDI, upon consultation with the Board.

Section 4: The purpose of this section is to permit the Secretary General, upon consultation with the Board and within the limits of the general standards and the program-budget recommended by CIDI and approved by the General Assembly, to fix the remuneration of the Executive Secretary pursuant to his authority under Article 113 of the Charter. To provide for flexibility in establishing a salary sufficient to recruit capable candidates for the post, the section provides that the provisions of the General Standards and other resolutions of the General Standards requiring the application of the U.N. salary system to the General Secretariat shall not apply to that post. It is anticipated that Article 36 of the General Standards will be amended to include a separate paragraph regarding the Executive ES/Administrator's salary. Currently, the Executive Secretary's salary is computed similarly to the Assistant Secretaries of the General Secretariat under that Article.

Article 9. Functions of the ES/Administrator

Section Analysis

Chapeau: The introductory segment of this Article reaffirms the ES/Administrator's status as OASDA's Chief Executive Officer ("CEO").

Section 1: This section affirms that the ES/Administrator is responsible for the direction of SEDI. It derives from Article 17 of the current CIDI Statute.

Section 2: This section clarifies that the ES/Administrator is directly responsible to both the Management Board and the Secretary General for carrying out technical and administrative duties assigned, and that the ES/Administrator must carry out those duties within the parameters of policy guidelines adopted by CIDI, CEPCIDI, and the Management Board in accordance with their respective areas of competence.

Section 3: This section underscores the ES/Administrator's obligation to report regularly and as requested to the Management Board, the Secretary General, CEPCIDI, and CIDI, on OASDA activities. This section derives from 17(g) of the current CIDI Statute.

Section 4: This section reaffirms the competence of the ES/Administrator under the first paragraph of Article 17 of the Current CIDI Statute to represent the Secretary General, when so authorized by him, before CIDI, CEPCIDI, and other CIDI activities. This Section also provides an additional basis for the Secretary General to delegate to the ES/Administrator Secretary the authority to sign cooperative agreements entered into by the Executive Secretariat as part of the General Secretariat, through and for the benefit of OASDA.

Article 10. The Executive Secretariat

3. The Executive Secretariat will be identified in OASDA Rules and Regulations and Official OASDA Documents as the "Executive Secretariat for Integral Development" so as not to lose its identity under Article 98 of the Charter.

Section Analysis

Section 1. This Article reaffirms, as stated in Article 4, that the SEDI shall serve as the OASDA Secretariat. It also underscores that SEDI is a dependency of the General Secretariat, and therefore, responsible to the Secretary General.

Section 2. In accordance with Article 113 of the Charter, the Secretary General is responsible to the General Assembly for appointing the staff of the General Secretariat, in accordance with the general standards and program budget. This section assures that the Secretary General will continue to perform that function under the Charter for the staff of the Executive Secretariat; however, he must do so in consultation with the Executive Secretary.

Section 3. A number of member states have expressed concern over the likelihood that SEDI could lose its identity as an entity recognized under the Charter in its role as OASDA Secretariat. To address that concern, this section provides that SEDI will retain its current name and that all rules and regulations shall clearly identify the OASDA Secretariat as SEDI

Article 11. Functions of the Executive Secretariat

Section Analysis

This Article elaborates functions already assigned to SEDI under Article 17 of the current CIDI Statute, the project approval-related functions transferred from CEPCIDI to OASDA, and new functions recommended in the initial OASDA proposal presented by the delegation of the United States.

Section 1: This section reaffirms the functions already assigned to SEDI under Article 17(a) of the current CIDI Statute.

Section 2: This section reaffirms the functions already assigned under Article 17(b) to SEDI under the current CIDI Statute, and it extends SEDI's obligation to provide support in formulating programs to the Management Board.

Section 3: This section reaffirms the functions already assigned to SEDI under Article 17(c) of the current CIDI Statute.

Section 4: This section reaffirms the functions already assigned to SEDI under Article 17(d) of the current CIDI Statute. There is, however, one difference. Instead of requiring SEDI to submit project evaluations, etc., to CEPCIDI, as is presently the case under Article 17(d) of the CIDI Statute, this section requires SEDI to present them directly to the Management Board.

Section 5: This section reaffirms the functions already assigned to SEDI under Article 17(e) of the current CIDI Statute.

Section 6: This section reaffirms the functions already assigned to SEDI under Article 17(f) of the current CIDI Statute. It is different from Article 17(f) only insofar as it has been modified to reflect that the OASDA Management Board, not CEPCIDI, will have the function of assigning resources to specific projects.

Section 7: This section reaffirms the functions already assigned to SEDI under Article 17(g) of the current CIDI Statute. There is, however, one difference. Instead of requiring SEDI to submit reports directly to CEPCIDI, as is the case under Article 17(g) this section requires that they be presented directly to the Management Board.

Section 8: This section reaffirms the functions already assigned to SEDI under Article 18 of the current CIDI Statute.

Section 9: This section reaffirms the functions already assigned to SEDI under Article 17(d) of the FEMCIDI Statute.

Section 10: This section attributes to SEDI the responsibility for assisting the Management Board in carrying out its obligation to promote and develop cooperative relations and financing arrangements with others.

Section 11: This section reaffirms the functions and accountability already assigned to SEDI under Article 20 of the CIDI Statute. There is, however, one difference. Instead of being directly accountable for fund management directly to CIDI, SEDI's accountability will run directly to the Management Board in that regard.

Section 12: Article 7(11) of this Statute confers upon the Management Board responsibility for proposing OASDA's personnel, budgetary, and operational rules. This section assigns to SEDI responsibility for assisting the Management Board in that function.

Section 13: As recommended in the proposal of the United States delegation, this section assigns SEDI responsibility for staffing and administering those offices of the General Secretariat away from Headquarters which are converted into OASDA technical cooperation field offices.

Section 14: As recommended in the proposal of the United States delegation, this section assigns to SEDI responsibility for administering fellowships related to partnership for development activities.

Section 15: This section is a catch-all provision which recognizes that SEDI will perform other administrative functions, as assigned by the Management Board, in connection with partnership for development activities.

Final Paragraph: This provision underscores that SEDI, in the performance of its functions, must comply with the Charter and rules and regulations adopted by the political bodies.

Article 12: Resources

Section Analysis

Section 1: This section specifies that OASDA will be responsible for managing and accounting for the resources contributed and otherwise appropriated for CIDI's partnership for development projects and cooperation activities. It will have the option of performing this financial-management function either through SEDI, by way of arrangements with other dependencies of the General Secretariat, or by contracting with vendors who provide those services in the marketplace.

Section 2: This section incorporates a proposal from the United States delegation which provides that fellowships, training programs, the costs of SEDI infrastructure and personnel, as well as the costs of Board meetings, will be financed by the Regular Fund until other sources of financing, by way of a capital fund and voluntary contributions, are secured. The proposal also recommends that as other resources are secured each year, the amount of funding from the Regular Fund for OASDA activities will be reduced proportionately for that year. Eventually, it is anticipated that OASDA will be totally independent of the Regular Fund.

CHAPTER III GENERAL PROVISIONS

Article 13 Governing Norms

Section Analysis

The purpose of this Article is to underscore that OASDA is required to operate within the parameters of its Statute, together with the resolutions and the pertinent rules and regulations adopted by the political bodies, each in accordance with its area of competence.

Article 14 Languages and Documents

3. The annual report, rules of procedure, and final resolutions of the Management Board shall be published in the official languages of OASDA. All other OASDA documents shall be published in the working languages.

Section Analysis

This provision is adapted from Chapter 7 of the CITEL Statute, entitled "Official and Working Languages," adopted by the General Assembly in Resolution AG/RES. 1224 (XXIII-O/93). Like OASDA, CITEL is an entity dedicated to technical cooperation, albeit in a highly specialized sector.

Section 1: This section establishes that English, French, Portuguese, and Spanish shall be the official languages of OASDA, as they are for most OAS organs.

Section 2: This section clarifies that the working languages of the Management Board shall be Spanish and English, as is the case of CITEL, and that working documents will generally only be available in those languages. Nonetheless, Board members may present written proposals in any of the official languages. The purpose of this provision is to expedite meetings of the Board and reduce their costs.

Section 3: Notwithstanding the designation of English and Spanish as OASDA's working languages, this section requires publication of the final report, rules of procedure and final resolutions of the Management Board in the four official languages. This is to facilitate the receipt of those documents by CEPCIDI, CIDI, and the other political bodies, as well as their review in the corresponding ministries.

Article 15 Conference and Logistic Support for Meetings

The General Secretariat is responsible for providing conference services and other logistic support to CIDI, to CEPSIDI, to CIDI's subsidairy bodies, as well as to meetings of the Management Board. Those services shall not be provided by SEDI, but rather by other dependencies of the General Secretariat, in accordance with the provisions of the program-budget and availability of resources.

Section Analysis

This Section reflects that SEDI will no longer be responsible for furnishing meeting services to CIDI and other CIDI entities, including the Board. Those services will be provided by a meeting staff personnel and experts in other dependencies of the General Secretariat. Appropriations for those meetings will generally be contained in the Program-Budget; however, as is presently the case, they may be financed, all or in part, by FEMCIDI, special funds, and other voluntary contributions.

Article 16 Amendment

2. Based on increased external funding of OASDA activities and other pertinent considerations, the General Assembly may adopt a resolution separating the ES/Administrator and the Executive Secretariat from the General Secretariat. In that event, the following provisions shall no longer apply, and the Management Board will adopt provisions to take their place: the provisions in Article 8(3) regarding the removal of the ES/Administrator; Article 8(4) on the compensation of the ES/Administrator; Article 9(4) on authority to represent the Secretary General; Article 10(1) identifying the Executive Secretariat as a dependency of the General Secretariat; Article 10(2) on appointment of the staff of the Executive Secretariat; and the specific provisions in Article 9 obligating the ES/Administrator to carry out functions for ant to report to the Secretary General.

Section Analysis

Section 1. The Statutes of most organs specify how they may be amended. Thus, this section specifies that the OASDA statute may be amended by resolution of the General Assembly, upon its own initiative, or at OASDA's request approved by CIDI.

Section 2. The proposal of the United States delegation anticipates that the Executive Secretariat and the Executive Secretary for Integral Development may become independent from the General Secretariat when and if OASDA becomes totally independent from the Regular Fund. When that occurs, a number of the Articles relating to the relationship between the Executive Secretariat, the Executive Secretary for Integral Development, and the General Secretariat will be irrelevant and may actually impair the operations of the Agency. The purpose of this Section is to provide that those articles will be ineffective when and if OASDA receives its full independence from Regular Fund support for its personnel and other infrastructure. If this provisions is not included, the General Assembly will have to amend this Statute when and if it decides to separate the Executive Secretariat and the Executive Secretariat from the General Secretariat.

Article 17 Entry into Force

The present Statute shall enter into force on the date it is approved by the General Assembly.

Section Analysis

This Section clarifies that the OASDA Statute will take effect on the date it is approved by the General Assembly.

Article 5 Bodies of CIDI

CIDI shall have the following subsidiary bodies, organs and agencies:

a) The Permanent Executive Committee of the Inter-American Council for Integral Development ("CEPCIDI");

b) The Organization of American States Development Agency ("OASDA");

c)b Nonpermanent Specialized Committees;

d)c) Special Committees; and

e)d) Other subsidiary bodies, organs, and agencies created by the Council.

Section Analysis

Article 5 identifies the key subsidiary organs of CIDI. The purpose of this amendment is to include OASDA expressly among those organs.

Article 8 Functions of CEPCIDI

CEPCIDI shall have the following functions:

b. To analyze the reports on the execution of cooperation activities presented by OASDA and other organs entrusted with project execution-related responsibilities, with a view to submitting a report to CIDI.

c. To carry out mandates received from CIDI, follow-up on the decisions and recommendations CIDI adopts, and carry out the functions assigned to it under CIDI's Rules of Procedure and its Rules of Procedure;

d. To propose to CIDI the creation of subsidiary bodies, organs, and agencies for the development of hemispheric cooperation in accordance with the provisions of these Statues;

e) To create its subsidiary bodies;

f) To instruct the Executive Secretariat for Integral Development ("Executive Secretariat") concerning the execution of tasks and support activities for the fulfillment of the mandates and functions assigned to CEPCIDI;

Section Analysis

Section a: This section, prior to amendment, assigned the function of determining project execution level and project approval to CEPCIDI. Because that function is one of the principal responsibilities of OASDA under its Statute, this Section must be modified so as to reflect that it is no longer CEPCIDI's responsibility. In its place, we have substituted the important functions assigned to CEPCIDI under Article 59 of the CIDI Rules of Procedure, which were inadvertently omitted from the CIDI Statute when it was first adopted. Those functions are sufficiently important and significant so as to merit inclusion in the CIDI Statute.

Section b: Under the present text of this section, CEPCIDI directly analyzes cooperation projects and activities. Because the analysis will be conducted by OASDA under its Statute, this section is amended to clarify that CEPCIDI will analyze the reports of OASDA and other organs entrusted with project-execution responsibilities on those activities rather than engage in the direct analysis of individual projects and activities.

Section c: This section is amended to take into account the publication of CIDI's Rules of Procedure since the CIDI Statute was first adopted. The amendment clarifies that in addition to carrying out the functions set out in the CIDI Statute, it must also carry out the mandates contained in the CIDI Rules of Procedure and its own rules of procedure.

Section d: This section is amended to conform the existing text of Articles 77 and 93 of the Charter, which authorizes CIDI to establish not only subsidiary bodies and agencies, but subsidiary "organs" as well.

Section e: No change is proposed.

Section f: The amendment proposed is simply editorial. It includes the full name of the "Executive Secretariat for Integral Development," followed by its abbreviated name and acronym, because this is the first time it is used in the text of the CIDI Statute.

Article 11 The Organization of American States Development Agency (OASDA)

OASDA shall carry out is functions and activities consistent with these purposes and in accordance with the provisions of its Statute.

Section Analysis

This is an entirely new provision inserted for the purpose of informing the individual consulting the CIDI Statute with basic information concerning the structure and the subcomponents of OASDA. It is almost identical to Article 2, of the OASDA Statute.

Article 12 Basic Structure of OASDA

c) The Executive Secretariat for Integral Development ("Executive Secretariat"), which shall serve as its Secretariat.

Section Analysis

This is an entirely new provision inserted for the purpose of informing the individual consulting the CIDI Statute with basic information concerning the structure and the subcomponents of OASDA. It is almost identical to Article 4 of the OASDA Statute.

Article 14 Functions of the CENPES

Within their respective areas of competence, the CENPES these Committees shall have the following functions:

a) Assist CIDI in the formulation of sector policies and programs of the Strategic Plan;

b) Coordinate and examine the proposals for cooperation programs, projects and activities made by the member states or the General Secretariat and submit them with their its recommendations to the Executive Secretariat for consideration by CEPCIDI the OASDA Management Board.

c) Periodically study the execution of cooperation activities and their results and present to CEPCIDI the OASDA Management Board those recommendations it considers pertinent;

d) Support, within its area of competence, the preparation of the meetings of CIDI, CEPCIDI, and the OASDA Management Board;

e) Fulfill the specific mandates that CIDI, CEPCIDI and the OASDA Management Board assign, and report to them it in this regard.

Section Analysis

This Article is the former Article 12.

Chapeau: The change is purely editorial. The phrase "the Committees" is replaced by CENPES to increase clarity and to allow this provision to stand alone from its subtitle.

Section a: No change is recommended.

Section b: The term "OASDA Management Board" has been substituted for "CEPCIDI" to reflect that the CENPES will be presenting its project-specific recommendations to OASDA for use in the project approval process.

Section c: Because OASDA, not CEPCIDI, is responsible for the direct administration of projects, this section has been modified to provide that the CENPES shall present their periodic studies on technical cooperation to OASDA, rather than to CEPCIDI.

Section d: This section is amended to underscore that the obligation of the CENPES to provide input and support to meetings does not extend only to CIDI, but that it extends to CEPCIDI and the OASDA Management Board as well.

Section e: This section is amended to clarify that not only are the CENPES required to fulfill the mandates given by CIDI, but that they are also required to fulfill mandates entrusted by CEPCIDI and the OASDA Management Board.

Article 19 Functions of the Executive Secretariat for Integral Development (SEDI)

1. The Executive Secretariat for Integral Development, is a the dependency component of the General Secretariat that serves as the OASDA Secretariat, is responsible to CIDI, CEPCIDI, and the OASDA Management Board for the execution, and when appropriate, for the coordination of cooperation activities.

2. The Executive Secretary for Integral Development (also the "ES/Administrator"), who is appointed by the Secretary General with the approval of CIDI upon consultation with the Management Board, shall direct the Executive Secretariat, serve as the Administrator of OASDA, and fulfill those functions and responsibilities that are established in these Statutes and the OASDA Statute within the framework of the Charter.

3. Specifically, the Executive Secretariat shall:

a) Design the procedures and supervise the execution of projects in the following areas:

i) Presentation and preliminary evaluation;

ii) Preparation of plans and activities;

iii) Authorization of obligations and disbursements; and

iv) Follow-up and evaluation of results.

b) Support CIDI in formulating the inter-American programs and incorporating them into the Strategic Plan;

c) Coordinate General Secretariat support provided to member states who request it for the formulation of projects;

d) Conduct a preliminary evaluation of all requests for cooperation activities presented by member states or the General Secretariat, and submit the results to the CEPCIDI OASDA Management Board for consideration;

e) Support CIDI and its bodies in managing the participation of other inter-American and international agencies, as well as cooperation agencies of member and permanent observer states, in cooperation activities;

f) Authorize the obligation of funds and other resources approved by the CEPCIDI OASDA Management Board for financing projects and other activities related to partnership for development;

g) Report regularly to the CEPCIDI OASDA Management Board on the progress, results and final evaluation of the inter-American cooperation programs;

h) Perform all other functions assigned to it in the OASDA Statute.

Section Analysis

This is the former Article 17. The principle paragraphs have been numbered to facilitate more precise citation and referencing.

Section 1: Most of the amendments are editorial in English. Nonetheless, the text has been substantively modified to clarify that not only is SEDI responsible to CIDI, but it is also responsible to CEPCIDI and the OASDA Management Board, as the case may be.

Section 2: This section is amended to identify the Executive Secretary for Integral Development as the "Administrator" of OASDA and to underscore that not only is the Executive Secretary responsible for complying with the CIDI Statute, but the Executive Secretary is responsible for fulfilling the functions assigned under the OASDA Statute as well.

Section 3: The substitution of "SEDI" for "Executive Secretariat" in the chapeau is purely editorial.

The text of subsection "d," has been changed to reflect that the OASDA, not CEPCIDI, will approve project-level requests for technical cooperation, and therefore, SEDI will present its evaluation of those requests directly to the OASDA Management Board, not to CEPCIDI.

The text of subsection "f" is modified to reflect that projects and their level of financing are to be approved by OASDA, not CEPCIDI.

The text of subsection (g) is modified to clarify that SEDI shall report to OASDA, not CEPCIDI, on the results of its activities. OASDA will include the information submitted in its regular reports to CEPCIDI.

Subsection (h) is an entirely new section. It is a "catch-all" provision which recognizes that SEDI is obligated to perform all the other functions assigned to it in the OASDA Statute.

Article 20. Exchange of Knowledge and Information

The Executive Secretariat shall encourage the exchange of specialized knowledge and information among the institutions of the member states, and between them and the institutions of the permanent observer states.

Section Analysis

This is the former Article 18. The modification substitution of the acronym "SEDI" for "Executive Secretariat" is purely editorial.

Article 21 Coordination of Executive Secretariat with Other Components Dependencies of the General Secretariat

The Secretary General, in consultation with the OASDA Management Board and the ES/Administrator, shall establish those mechanisms that are necessary to ensure that the Executive Secretariat for Integral Development coordinates the cooperation activities that the Organization carries out through its components organs.

Section Analysis

This is the former Article 19. This Article is modified to adjust the text to reflect that OASDA is to play a more central role in developing mechanisms for the coordination of technical assistance. The present text requires the Secretary General to establish mechanisms for enabling SEDI to coordinate the Organization's technical cooperation activity. The amended text requires the Secretary General, in establishing those mechanisms, to consult with the Management Board and the Executive Secretary, to assure that those mechanisms will be responsive to their needs. The substitution of the word "organs" for the word "components" is editorial so as to conform with Article 53 of the Charter.

Article 22: Responsibility of SEDI

The Executive Secretariat, as the Secretariat of OASDA, shall be accountable to CIDI and directly accountable to the OASDA Management Board for the execution and coordination of cooperation activities supported by the OAS within the framework of the Council, for the use of resources allocated by the member states for their execution and for their progress and results.

Section Analysis

This is the former Article 20. It is modified to reflect that although SEDI is ultimately responsible to CIDI, it is directly responsible to OASDA, as its Secretariat.

Article 23(e) Regular Meetings of CIDI

e) Entrust CEPCIDI, the Executive Secretariat, and the other components of the General Secretariat, as the case may be, OASDA, the General Secretariat, and other organs of the Organization, within their respective areas of competence and as the case may be, with fulfilling the mandates and carrying out the mandates CIDI finds appropriate.

Section Analysis

This is the former Article 21(e). The amended text reflects that SEDI is to be part of OASDA, and that CIDI, in entrusting mandates to SEDI, should do so by way of OASDA. The new text also underscores that the authority of CIDI to assign functions to the organs of the Organization must be exercised in accordance with the areas of competence assigned to those Organs under the Charter.

Article 32 Report of CEPCIDI on the Draft Program Budget

CEPCIDI, after receiving the recommendations of the OASDA Management Board, shall submit a report to CIDI on inter-American cooperation with its necessary recommendations for the annual Program-Budget.

Section Analysis

This is the former Article 30. The current text provides that CEPCIDI will present a report to CIDI on inter-American cooperation activities and recommendations for the program-budget. The amended text requires CEPCIDI to receive the recommendations of the OASDA Management Board before submitting that report.

Article 34 Rules of Procedure of CIDI and its Bodies

CIDI shall adopt its own Rules of Procedure, those of its Special Committees, and those of its subsidiary bodies, organs, and agencies; however, any such subsidiary body, organ or agency may adopt its own internal rules of procedure and other internal rules and regulations if so authorized under its Statute approved by CIDI and the General Assembly, or as otherwise delegated by CIDI, subject to the following conditions:

b) The subsidiary agency, organ, or body adopting such rules pursuant to its Statute must present those rules to CEPCIDI for its observations and inclusion in CEPCIDI's annual report to CIDI.

Section Analysis

This is the former Article 32. The present text simply provides that CIDI shall adopt its own rules and those of its subsidiary bodies. The amended text would allow CIDI to delegate the authority to certain subsidiary organs, including OASDA and CEPCIDI, the responsibility for approving their own Rules. Allowing an entity like OASDA to develop its own rules of procedure would not be inconsistent with past practice. Organs like CICAD, CIM, CITEL, the Rowe Fund Committee, and the Retirement and Pension Fund Committee have the authority to adopt their own rules of procedure under their respective statutes.

Subsections a and b of the amended text provide safeguards to assure that the rules adopted by OASDA or any other CIDI subsidiary organ authorized to develop its own rules of procedure will not be consistent with all other applicable norms and guidelines of the Organization.

Subsection a specifically requires that the rules adopted must be consistent with the Charter, the CIDI Statute, other CIDI rules and Statutes, the resolutions of the General Assembly and of CIDI, the inter-American treaties, the applicable General Standards, and the applicable resolutions of the Permanent Council. Rules that do not comply with that requirement will be void of any legal force. Subsection b requires OASDA and any other organ which adopts its own rules of procedure to submit them to CEPCIDI for its observations for inclusion in CEPCIDI's annual report to CIDI. The purpose of this provision is to assure that the superior political bodies will have knowledge of the rules adopted and will be able to order any remedial measures that may be necessary to conform those rules to existing guidelines and the other normative instruments of the Organization.

EXPLANATION OF TEXT OF
DRAFT CIDI RESOLUTION FOR CREATION OF THE ORGANIZATION OF
AMERICAN STATES DEVELOPMENT AGENCY ("OASDA")
WITH
SECTION BY SECTION ANALYSIS OF PROPOSED AMENDMENTS
TO CIDI'S RULES OF PROCEDURE AND THE
FEMCIDI STATUTE

I. INTRODUCTION

Thes Draft CIDI Resolution recommending the creation of OASDA is substantially similar to the Draft General Assembly ("GA") Resolution prepared for the General Assembly's creation of the Organization of American States Development Agency. The purpose of the Draft CIDI Resolution is two-fold: (1) to recommend to the General Assembly the creation of OASDA and the adoption of its statute, as required under Article 77 of the Charter; and (2) to adopt the necessary amendments to the FEMCIDI and CIDI Rules of Procedure, in accordance with Article 79 of the Charter and with the provisions in those legal instruments governing their modification.

Because of the similarities between the two documents, it is not necessary to repeat or reproduce in detail the Section by Section Analysis which has already been done for the Draft GA Resolution and its Annex A (the OAS Statute) and B (the Amendments to the CIDI Statute). For that reason, Part II of this Document, which is titled "The Body of the Resolution," will only highlight the slight differences (mostly editorial) between the text of the body of the CIDI Draft and the Draft of the GA Resolution.

The major difference between the Draft CIDI Resolution and the GA Resolution is that the Draft CIDI Resolution contains an Annex C. Annex C sets out the proposed amendments to the FEMCIDI Statute and CIDI Rules of Procedure which require CIDI approval but which do not require adoption by the General Assembly. A detailed Section Analysis of Annex C follows as Part III of this Document.

II. THE BODY OF THE RESOLUTION

A. "Having Seen" Recital

The only difference between this recital and the first recital of the Draft GA Resolution is that the latter includes a reference to this CIDI Resolution as having been seen by the General Assembly. Obviously, that reference is not appropriate here.

B. "Considering" Recitals

1. First and Second "Considering" Paragraphs

These paragraphs are identical to the first considering paragraph in the GA Resolution.

2. Third "Considering" Paragraph

The only difference between this text and the corresponding paragraph of the GA Resolution is editorial. In the first and second lines, the reference to the General Assembly has been eliminated because this is a CIDI Resolution.

3. Fourth and Fifth "Considering" Paragraphs

These paragraphs are identical to the fourth and fifth "considering" paragraphs of the GA Resolution.

C. Operative (Resolutive) Provisions

1. Operative Paragraph No. 1

This paragraph contains three subsections, which are operative paragraphs 1, 2, and 4 of the GA Resolution, edited to signify that these paragraphs are simply recommendations to the General Assembly, not the final decisions for the Organization.

a. Subsection a: This is the text of Article 1 of the GA Resolution, edited to read as a CIDI recommendation.

b. Subsection b: This is the text of Article 2 of the GA Resolution, edited to read as a CIDI recommendation.

c. Subsection c: This is the text of Article 4 of the GA Resolution, edited to read as a CIDI recommendation.

2. Operative Paragraph No. 2

This paragraph is similar in content to operative paragraph 3 of the GA Resolution. Whereas operative paragraph 3 of the GA resolution is a recommendation to CIDI to modify the FEMCIDI Statute and CIDI Rules of Procedure, this Operative Paragraph 2 of the CIDI Draft resolution actually adopts those amendments. Clearly, operative paragraph 3 of the GA Resolution will be unnecessary in the event CIDI adopts this Resolution. The Paragraph also provides that the amendments to the CIDI Rules of Procedure and FEMCIDI Statute will not enter into force unless and until the General Assembly creates OASDA. Thus, the amendments will spring into force on the date the General Assembly creates OASDA.

II. SECTION BY SECTION ANALYSIS: AMENDMENTS TO RULES OF PROCEDURE OF THE INTER-AMERICAN COUNCIL FOR INTEGRAL DEVELOPMENT ("CIDI") AND TO THE STATUTE OF THE SPECIAL MULTILATERAL FUND OF THE INTER-AMERICAN COUNCIL FOR INTEGRAL DEVELOPMENT "FEMCIDI")

A. AMENDMENTS TO CIDI RULES OF PROCEDURE

Article 57

Article 57. The General Secretariat, through the Executive Secretariat for Integral Development, with the support of all other pertinent offices, shall provide technical secretariat services and carry out the mandates and assignments entrusted to it by CIDI and its organs in accordance with the resources appropriated in the Program-Budget and other resources made available by CIDI and its organs for that purpose.

Section Analysis

The current text requires the General Secretariat to carry out the mandates of CIDI and its organs. The recommended addition of the word "other" before the words "pertinent offices" clarifies that the Executive Secretariat for Integral Development is also a dependency of the General Secretariat. In light of the expectancy that most of CIDI's mandates will be financed by CIDI's own funds in the future, the Secretariat should not be required to provide services to CIDI unless there are resources appropriated for that purpose in the Program Budget or available through other arrangements. The new language added to this Article is intended to underscore that the General Secretariat is not obligated to provide services in relation to mandates for which there is no approved financing.

B. AMENDMENTS TO FEMCIDI STATUTE

Article 11

Section Analysis

Article 11 of the current FEMCIDI Statute prohibits the utilization of FEMCIDI resources for financing career staff and further limits the use of those funds for specific purposes. Expectations are, however, that OASDA and other CIDI activities will have minimal financing, if any, from the Regular Fund in the future. Accordingly, the restrictions in this Article are unrealistic. FEMCIDI and other voluntary funds will have to be available to finance a wide variety of functions, services, and contracts if those expectations are realized. For that reason, the Article is eliminated by these amendments.

The remaining articles of the FEMCIDI Statute are renumbered to take into account the elimination of Article 11. Similarly, the references to the numbers of those articles throughout the Statute are hereby modified to reflect the new numbering.

Article 17:

Article 17 16. The partnership for development activities financed by FEMCIDI shall be regulated by a Programming Obligation and Execution Schedule with the following deadlines.

a) Voluntary contribution pledges to FEMCIDI shall be made from January 1 to July 15.

b) Voluntary contributions shall be paid to FEMCIDI from January 1 to September 15.

c) Proposals for partnership for development activities shall be submitted to the Executive Secretariat from January 1 to July 15.

d) The preparation by the Executive Secretariat of a Proposal for Programming Partnership for Development Activities (hereinafter "Programming Proposal" shall be carried out between July 16 to August 15 in terms specified in Article 18 17 of these Statutes.

e) CENPES shall have from August 16 to September 30 to analyze and evaluate the Integral Programming Proposal.

f) CEPCIDI The Management Board of the Organization of American States Development Agency ("OASDA")shall have from October 1 to 30 to approve the Integral Programming for Partnership for Development Activities.

g) The Executive Secretariat shall have from November 1 to 30 to authorize obligations.

h) Disbursements for implementation of partnership for development activities shall be made during the first ten working days of January.

i) The status of project implementation shall be monitored during the life of the project.

This Schedule may be amended by the OASDA Management Board ("Management Board") CEPCIDI, in accordance with its regulations. The Management Board shall notify CEPCIDI of its decision to make any such change within five working days following the date of that decision.

Section Analysis

The amendments to this Article, now renumbered Article 16, reflect the shift of the project approval, supervision, and evaluation functions from CEPCIDI to OASDA.

Section a: No change is required.

Section b: No change is required.

Section c: This section is amended to indicate where proposals for partnership for development activities should be submitted, i.e., to the Executive Secretariat for Integral Development.

Section d: The modifications to this Section are purely editorial.

Section e: No change is required.

Section f: This section is modified to reflect that the OASDA Management Board, not CEPCIDI, has responsibility for approving FEMCIDI projects.

Sections g-i: No change required.

Article 21:

Article 21 20. The Nonpermanent Specialized Committees (hereinafter "CENPES"), with the participation where appropriate of the National Liaison Agencies, shall analyze the proposed activities and shall submit to OASDA CEPCIDI, through the Executive Secretariat, a report giving their recommendations for projects and programming, and OASDA will immediately thereafter submit a copy that report to CEPCIDI. so that the Program, Budget, and Evaluation Subcommittee may take it to CEPCIDI, with its comments and recommendations. When preparing its recommendations on the use of the resources of the Sectoral Accounts, the CENPES will take into account which countries contributed to those accounts.

Section Analysis

This Article is to be renumbered Article 20. The amended text is necessary to reflect that the CENPES shall report on their project recommendations to OASDA, not CEPCIDI. This is logical because OASDA, not CEPCIDI, is to carry out the project approval function under the OASDA Statute and the amended CIDI Statute. Under the amended text, OASDA is required to submit a copy of the report to CEPCIDI. The report should be of some assistance to CEPCIDI in developing broader programming guidelines and recommendations for OASDA.

Article 22

Article 22 21. The OASDA Management Board CEPCIDI shall approve the Programming Proposal on an annual basis. It shall reflect an adequate balance in allocating available resources by thematic areas and regional needs.

Section Analysis

This Article is to be renumbered Article 21. The modification of the text is necessary to conform this Article to the OASDA and CIDI Statutes, which provide that the OASDA Management Board, not CEPCIDI, will approve the project programming proposal.

Article 23

Article 23 22. It will be is the responsibility of CENPES to evaluate, in accordance with the criteria established by the OASDA Management Board CEPCIDI itself, the progress of multiyear projects and to recommend to the Management Board CEPCIDI whether funding for the subsequent year should be obligated. Such projects which are positively evaluated and recommended by CENPES will have priority over new project proposals.

Section Analysis

This Article is to be renumbered Article 22. The modification of the text is necessary to conform this Article to the OASDA and CIDI Statutes which provide the OASDA Management Board, not CEPCIDI, is responsible for project-level funding decisions and project evaluation. Thus, CENPES project evaluations and recommendations for funding of projects in subsequent should be presented to the Management Board, and not CEPCIDI, as so provided in the amended text.

Article 26

Article 26 25. The purposes and limitations of these funds shall be defined in precise terms in accordance with the corresponding instruments establishing them, and CEPCIDI and the OASDA Management Board shall be informed thereof.

Section Analysis

This Article is to be renumbered Article 25. The modification is necessary to reflect that OASDA should be informed of the purposes and limitations of funds used for partnership in development activities because it is responsible, under its Statute, for the proper administration of those funds.

Article 27:

Article 27 26. Until alternative resources are identified and secured, the appropriations of the Regular Fund that are authorized for CIDI are intended to finance: (i) the regular operations of CIDI, its bodies, and subsidiary agencies,and; (ii) fellowships and training programs.

Section Analysis

This Article is to be renumbered Article 26. The amended language reflects the provisions on funds in Article 12 of the OASDA Statute. The expectation is that eventually, most of CIDI's financing project and operational financing will come from sources other than the Regular Fund. For the short term, however, the Regular Fund will continue to subsidize CIDI's operations, fellowships and training programs, and the activities of CIDI's subsidiary programs.

Article 29:

Article 29 28. Contributions, if any, to the Regular Fund for technical supervision and administrative support, to be made both by FEMCIDI and by other funds that finance partnership activities shall be made in accordance to with the terms established in the General Standards.

Section Analysis

This Article is to be renumbered Article 27. The amended language reflects the possibility that contributions to the Regular Fund from FEMCIDI and other voluntary funds may cease as OASDA becomes more self-supporting, and technical supervision and advisory services provided by SEDI to OASDA may be reimbursed to the General Secretariat on an actual cost basis instead of by way of a percentage contribution to the Regular Fund.

Article 30:

Article 30, 29. The Executive Secretariat shall be is responsible to CIDI, CEPCIDI, the OASDA Management Board, and the Secretary General for applying these Statutes, on the basis of the functions and responsibilities assigned to it under Articles 17, 19, and 20 19, 21, and 22 of the Statutes of the Inter-American Council for Integral Development (CIDI) and under the OASDA Statute.

Section Analysis

This Article is to be renumbered Article 29. The amended text, unlike the present version of this Article, specifies that SEDI is accountable to CIDI, CEPCIDI, the OASDA Management Board, and the Secretary General for carrying out the financial management functions. The text has also been amended to reflect that SEDI's financial management functions are enumerated not only in the CIDI Statute, but also in the OASDA Statute.

Article 32

Article 32 31. These Statutes may be amended by CIDI at its regular meetings as long as they are consistent with the General Standards, the CIDI Statute, and the OASDA Statute. OASDA CEPCIDI may modify the Programming Obligation and Execution Schedule of Partnership for Development Activities in the way that is established in Article 16.

Amendments to the Statutes may be proposed by the OASDA Management Board, CEPCIDI, the Secretary General, or the Executive Secretary General.

Section Analysis

This Article is to be renumbered Article 31. The modified text in the first sentence provides that not only must amendments to the FEMCIDI statute be consistent with the General Standards, as provided in the present text, but they must also be consistent with the CIDI Statute and OASDA Statutes, both of which contain provisions on financial resources and management.

The second sentence substitutes OASDA for CEPCIDI as the organ authorized to modify the Programming Obligation and Execution Schedule. That makes sense because after the creation of OASDA, that organ will have responsibility for administering the Schedule, not CEPCIDI.

The last sentence is modified to recognize that OASDA, as well as CEPCIDI, may propose amendments to the FEMCIDI Statute for CIDI's approval. The conferral of that right upon OASDA is important because OASDA is responsible, under its Statute, for the management of CIDI's partnership for development resources.

3. Operative Paragraph No. 3

4. Operative Paragraph No. 4

Subsection a: Subsection b:

DRAFT CIDI RESOLUTION
CREATION OF ORGANIZATION OF AMERICAN STATES DEVELOPMENT AGENCY ("OASDA")
(Documented presented by Chair)
THE INTER-AMERICAN COUNCIL FOR INTEGRAL DEVELOPMENT,

HAVING SEEN, The Report of the Special Joint Working Group of the Permanent Council and of the Inter-American Council for Integral Development on Strengthening and Modernization of the OAS ("GETC"); and the Document entitled "Legal Opinion: Points Arising out of the Proposal of the United States Government to Create a Subsidiary Organ Within CIDI to Replace the Current Apparatus for Administering CIDI Programs and Projects," GETC/FORMOEA-72/98.

CONSIDERING,

That the Member States are committed to the objectives of improving the administration of partnership for development projects and activities, creating effective mechanisms for capturing external resources for its technical cooperation programs, and coordinating the Organization's efforts for the promotion and development of cooperative relations with other international organizations, the international financial institutions, national development agencies, the permanent observers, universities, foundations, and other private sector entities;

That to achieve those objectives, the GETC has recommended the establishment of OASDA as a subsidiary organ of CIDI under Articles 77 and 93 of the Charter and Article 5 and 16 of the CIDI Statute, which shall be responsible to the CIDI ministerial meetings and the Permanent Executive Committee of the Inter-American Council for Integral Development ("CEPCIDI");

That the establishment of OASDA and its Statute, pursuant to Articles 53, 54(a), 77, and 93 of the Charter, must take into account Article 77 of the Charter, which requires that membership in the subsidiary organs of the Councils, "insofar as possible, shall follow the criteria of rotation and equitable geographic representation;" Articles 98 and 95(c) of the Charter regarding the respective responsibilities of CIDI and the Executive Secretariat for Integral Development in executing and coordinating CIDI's technical cooperation projects; Articles 112 and 111 of the Charter describing the role of the Secretary General and General Secretariat in technical cooperation and in establishing cooperative relations; Articles 109, 112, 113, and 117, specifying the Secretary General's authority to direct the General Secretariat, to serve as its legal representative, to appoint the Executive Secretary for Integral Development, and to take decisions regarding the staffing, structure and administration of the General Secretariat within the parameters of the general standards and budgetary provisions adopted by the General Assembly; and the inter-American treaties governing the OAS Specialized Organizations.

That to achieve the desired level of efficiency in administering CIDI's partnership for development and technical cooperation activities, OASDA, through its Management Board, must assume administrative functions currently carried out by CEPCIDI, particularly in the areas administrative rule-making and of project approval, supervision, and evaluation; and it must also assume, through the Executive Secretariat for Integral Development, administrative functions currently carried out by other areas of the General Secretariat, including management of financial resources and the application of its own operational, budgetary, and personnel rules within the programmatic, policy and normative guidelines established by the CIDI ministerial meetings, the Permanent Council, CEPCIDI, its own Management Board, and the Secretary General, each in accordance with their respective areas of competence;

That the normative provisions of the Organization, including the CIDI and FEMCIDI Statutes, CIDI's Rules of Procedure, the General Standards Governing the Operation of the General Secretariat ("General Standards"), the Staff Rules, and the Financial Rules, must be amended to assure consistency with the OASDA Statute and to enable OASDA to achieve its objectives and carry out its functions;

RESOLVES:

1. To recommend to the OAS General Assembly:

a. the creation of the Organization of American States Development Agency ("OASDA") as a subsidiary organ of CIDI and the adoption of its Statute attached as Annex A of this Resolution;

b. the adoption of the amendments to the CIDI Statute attached as Annex B of this Resolution; and

c. the adoption of the following additional transitory provisions to facilitate the timely initiation of OASDA's operations and activities.

(i) The Permanent Council shall be authorized to adopt and place into force amendments to the general standards which will permit the implementation of special personal, budgetary, operational and other administrative rules for OASDA, and it shall inform the General Assembly of those amendments at its next regular meeting;

(ii) Within ninety days of the date of this Resolution, the Secretary General, in consultation with the Executive Secretary for Integral Development and Administrator (also the "ES/Administrator"), shall present to the OASDA Management Board, CEPCIDI, and the Permanent Council a Work Plan and recommendations for implementing this Resolution, including provisions for sharing of services and resources with the OAS General Secretariat and for the transfer of personnel, resources, and projects to OASDA;

(iii) Within four months of the date of this Resolution, the Secretary General, in consultation with the ES/Administrator will submit to the corresponding political bodies proposed personnel, budgetary, operations and management rules for adoption, and those political bodies, within their respective spheres of competence, shall take action on those proposed rules within the sixty-day period following their receipt. Those rules may not enter into force until the corresponding provisions of the general standards are duly amended. Pending the entry into force of those new rules, the current rules of the General Secretariat, as amended during the interim, shall apply;

(iv) The Offices of the General Secretariat in the Member States ("National Offices") which cannot be integrated into the main-stream activities of OASDA and for which the Secretary General cannot find alternative external financing to fund fully all their operations shall be closed by December 31, 1999; and

(v) The Regular Fund shall support OASDA Fellowships in an amount not to exceed the amount in the entire approved Regular-Fund budget for OAS fellowships and training. Nonetheless, the amount expended from the Regular Fund shall be reduced each year by the amount of external funds obtained by OASDA for fellowships and training programs for the same year.

3. To adopt the amendments to the Special Multilateral Fund of the Inter-American Council for Integral Development ("FEMCIDI Statute") and to CIDI's Rules of Procedure, contained in Annex C of this Resolution. Those amendments shall enter into force on the date the General Assembly's resolution creating OASDA and adopting its Statute enters into force.

ANNEX C

AMENDMENTS TO RULES OF PROCEDURE OF THE INTER-AMERICAN
COUNCIL FOR INTEGRAL DEVELOPMENT ("CIDI") AND TO THE
STATUTE OF THE SPECIAL MULTILATERAL FUND OF THE
INTER-AMERICAN COUNCIL FOR INTEGRAL
DEVELOPMENT ("FEMCIDI")

(For Adoption by CIDI at its Next Regular Meeting)

I. AMENDMENTS TO CIDI RULES OF PROCEDURE

1. Article 57 is hereby modified as follows:

Article 57. The General Secretariat, through the Executive Secretariat for Integral Development, with the support of all pertinent offices, shall provide Secretariat services and carry out the mandates and assignments entrusted to it by CIDI and its organs in accordance with the resources appropiated in the Program-Budget and other resources made available by CIDI and its organs for that purpose.

II. AMENDMENTS TO FEMCIDI STATUTE

1. Article 11 is hereby eliminated.

Article 11 FEMCIDI resources many not be used to finance career service staff. FEMCIDI resources may only finance temporary personnel on contracts for limited time and firms and independent contractors using performance contracts, to implement a specific partnership for development activity approved by CEPCIDI and only for the duration of said specific activity.

2. The remaining articles of the FEMCIDI Statute are renumbered to take into account the elimination of Article 11. Similarly, the references to the numbers of those articles throughout the Statute are hereby modified to reflect the new numbering.

3. Article 17, which is now re-numbered Article 16, is hereby modified as follows:

Article 17 16. The partnership for development activities financed by FEMCIDI shall be regulated by a Programming Obligation and Execution Schedule with the following deadlines.

a) Voluntary contribution pledges to FEMCIDI shall be made from January 1 to July 15.

b) Voluntary contributions shall be paid to FEMCIDI from January 1 to September 15.

c) Proposals for partnership for development activities shall be submitted to the Executive Secretariat from January 1 to July 15.

d) The preparation by the Executive Secretariat of a Proposal for Programming Partnership for Development Activities (hereinafter "Programming Proposal" shall be carried out between July 16 to August 15 in terms specified in Article 18 17 of these Statutes.

e) CENPES shall have from August 16 to September 30 to analyze and evaluate the Integral Programming Proposal.

f) CEPCIDI The Management Board of the Organization of American States Development Agency ("OASDA")shall have from October 1 to 30 to approve the Integral Programming for Partnership for Development Activities.

g) The Executive Secretariat shall have from November 1 to 30 to authorize obligations.

h) Disbursements for implementation of partnership for development activities shall be made during the first ten working days of January.

i) The status of project implementation shall be monitored during the life of the project.

This Schedule may be amended by the OASDA Management Board ("Management Board") CEPCIDI, in accordance with its regulations. The Management Board shall notify CEPCIDI of its decision to make any such change within five working days following the date of that decision.

4. Article 21, now renumbered Article 20, is hereby modified as follows:

Article 21 20. The Nonpermanent Specialized Committees (hereinafter "CENPES"), with the participation where appropriate of the National Liaison Agencies, shall analyze the proposed activities and shall submit to OASDA CEPCIDI, through the Executive Secretariat, a report giving their recommendations for projects and programming, and OASDA will immediately thereafter submit a copy that report to CEPCIDI. so that the Program, Budget, and Evaluation Subcommittee may take it to CEPCIDI, with its comments and recommendations. When preparing its recommendations on the use of the resources of the Sectoral Accounts, the CENPES will take into account which countries contributed to those accounts.

5. Article 22, now renumbered Article 21, is hereby modified as follows:

Article 22 21. The OASDA Management Board CEPCIDI shall approve the Programming Proposal on an annual basis. It shall reflect an adequate balance in allocating available resources by thematic areas and regional needs.

6. The final paragraph of Article 23, now renumbered Article 22, is hereby modified as follows:

Article 23 22. It will be is the responsibility of CENPES to evaluate, in accordance with the criteria established by the OASDA Management Board CEPCIDI itself, the progress of multiyear projects and to recommend to the Management Board CEPCIDI whether funding for the subsequent year should be obligated. Such projects which are positively evaluated and recommended by CENPES will have priority over new project proposals.

7. The references to Articles 85 and 87 of the General Standards to Govern the Operation of the General Secretariat within the FEMCIDI Statute are hereby changed to Articles 66 and 68 respectively.

8. The penultimate paragraph of Article 26, now renumbered Article 25, is hereby modified as follows:

Article 26 25. The purposes and limitations of these funds shall be defined in precise terms in accordance with the corresponding instruments establishing them, and CEPCIDI and the OASDA Management Board shall be informed thereof.

9. Article 27, now renumbered Article 26, is hereby modified as follows:

Article 27 26. Until alternative resources are identified and secured, the appropriations of the Regular Fund that are authorized for CIDI are intended to finance: (i) the regular operations of CIDI, its bodies, and subsidiary agencies,and; (ii) fellowships and training programs.

10. Article 29, now renumbered Article 28, is hereby modified as follows:

Article 29 28. Contributions, if any, to the Regular Fund for technical supervision and administrative support, to be made both by FEMCIDI and by other funds that finance partnership activities shall be made in accordance to with the terms established in the General Standards.

11. Article 30, now renumbered Article 29, is hereby modified as follows:

Article 30, 29. The Executive Secretariat shall be is responsible to CIDI, CEPCIDI, the OASDA Management Board, and the Secretary General for applying these Statutes, on the basis of the functions and responsibilities assigned to it under Articles 17, 19, and 20 19, 21, and 22 of the Statutes of the Inter-American Council for Integral Development (CIDI) and under the OASDA Statute.

12. Article 32, now renumbered Article 31, is hereby modified as follows:

Article 32 31. These Statutes may be amended by CIDI at its regular meetings as long as they are consistent with the General Standards, the CIDI Statute, and the OASDA Statute.