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The Additional Plenipotentiary Conference (APP) (Geneva, 1992) recognized the need 
and importance of enhanced participation in ITU activities of entities and 
organizations other than Administrations. The APP introduced new categories of 
participants and instructed the Council to study, develop and recommend Criteria 
and Procedures to govern the participation of these Entities and Organizations in 
the activities of the Union
The Council approved, at its session in 1993, the criteria and procedures. These 
have been applied since. It however decided to refer to the Council Working Group 
on Strategic Policies and Plans the examination of the issues of members' Rights 
and Obligations associated with their participation in ITU sectoral activities.
The report by the Chairman of the Council Working Group on "Rights and Obligations 
of Entities and Organizations other than Administrations" was presented to the 1994 
Council together with a study on options for enhancing their "Financial 
Participation". This study was conducted, at the request of the Working Group, by 
the General Secretariat.
Council, while approving some recommendations contained in the Report of the 
Working Group regarding Rights and Obligations decided to refer some issues to the 
Plenipotentiary Conference. These relate to Proposals for Conference Agendas , the 
Right to Vote, the Right to Accept and the issue of Financial Contributions. It was 
agreed that these questions need to be studied further and that the General 
Secretariat should organize a representative survey to find out the wishes of 
"members" on the issue. 
In order to better appreciate "members" concerns, the General Secretariat conducted 
a preliminary survey on ITU Products and Services (from September 1993 to June 
1994). The findings of this survey, particularly with respect to "members" Rights 
and Obligations, are summarized in Annex I. 
Council Considerations on Rights and Obligations

The following Working Group recommendations have been approved by the Council :

	(a)	Participation in all the activities of the Sector as the CS/CV permit. 
	(b)	Access to Documents of the Sectors' Study Groups, Assemblies and 
Conferences under procedures established by the Sector. 
	(c)	Submission of Proposals and Contributions except in relation to the 
structure and functioning of the Union. 
	(d)	Oral Intervention except in relation to procedural matters. 
	(e) 	Motions and Points of Order - only Members have the right to make or 
raise points of order. 
	(f)	Representation and Credentials - no additional provisions were required. 
Further refinement possible by sectoral Study Groups and/or Conferences. 
	(g)	Suspension, Exclusion and Denunciation of Participation - the Secretary-
General to act in accordance with approved Criteria and Procedures.
The Council referred some other Working Group recommendations to the 
Plenipotentiary Conference for decision. 
	A.	Proposals for Conference Agendas 
	The Working Group proposed to Council:
-		that participants admitted to Conferences may propose agenda items 
except in relation to the structure and functioning of the Union; 
	and sought guidance on two further issues :
-		whether proposals were to be submitted to the Secretary-General or the 
Directors of the Bureau or whether the proposals by "members" should 
be submitted through their national Administrations;
-		whether agenda proposals should be transmitted to the Council. 
	B.	Submission of Proposals 
	The Working Group proposed to Council
-		that in addition to Members, participants admitted to Conferences may 
submit proposals and contributions, except in relation to the 
structure and functioning of the Union.
	C.	The Right to Vote and The Right to Accept 
	The Working Group proposed to Council:
-		that only Members have the right to vote under the prevailing 
provision of the Constitution and Convention; 
-		not to establish a right for "members" to express their acceptance of 
recommendations and the summary records of conferences and assemblies.
	Council decided that the question of the right to vote would be studied 
further. The General Secretariat (assisted by the Directors of the three Sectors) 
was asked to organize a more representative survey to find out the wishes of 
"members". 
	D.	Financial Contributions 
	The Working Group proposed in its report that:
-		members should be able to make voluntary contributions, in cash or in 
kind, to specific Sectors in order to support their activities;
-		the present system of contributory units as it applies to "members" 
should be reviewed taking into consideration the full cost of sectoral 
activities, including costs reallocated from the General Secretariat ;
-		consideration should be given to establishing mechanisms which would 
permit participation in Union activities by individuals or companies 
which are too small to make the contributions required of "members"; 
-		consideration should be given to the impact of any changes in the 
system of contributory units on the financial capacities of the three 
Sectors, so that any new measures adopted will ensure that the Union 
maintains a balanced capability to carry out all elements of its 
mission
-	"members" should be consulted on measures being contemplated and 
options being considered before final decisions are taken, in order to 
ensure that new arrangements regarding financial contributions would 
effectively encourage greater participation by "members" in the 
activities of the Union. 
On the basis of these principles, the General Secretariat prepared a report on 
"Financial Contributions by members" which was presented to Council in 1994. The 
Council discussed the report but decided that it was premature to take a decision. 
It instructed the General Secretariat to draw up a report reflecting the opinions 
voiced for submission to the Kyoto Plenipotentiary Conference. Opinions expressed 
by Councillors are briefly summarized as follows :
Contributory Unit
(a)	The Union is now in a position to obtain a more detailed assessment of costs. 
Council recommends that the Plenipotentiary Conference continue to apply the 
principle whereby the participation of "members'" should be based on the real cost 
of the Sectors concerned.
(b)	While the principle of contributions based on costs is a sound one, account 
should be taken of the competition which exists for "members" contributions between 
the ITU and other organizations, especially in the field of standardization.
Voluntary Contributions
(a)	Sectors' "members" are aware of the benefits they derive from their 
contributions and are prepared to make contributions in cash and in kind for 
allocation to the priority studies of each Sector. However, "members" would only be 
interested in making voluntary contributions if they were convinced that their 
contributions would be used for the purpose for which they were interested. The 
contribution system should be given publicity and the General Secretariat and the 
Sectors should undertake studies or measures to promote such contributions.
(b)	Proper procedures and priorities should be developed for utilization of 
voluntary contributions.
(c)	Conclusions reached on this issue should be consistent with the provisions of 
the Convention and Financial Regulations.
(d)	Voluntary contributions in the ITU-D Sector should be discussed in the light 
of the results of the Buenos Aires Conference, which expressed the wish that extra-
budgetary income should be used for the benefit of the least developed countries 
and asked Council to draw up a procedure to that end.
Participation of very small "members"

(a)	The possibility of participation by very small members can be considered, 
subject to adoption of precise criteria and procedures as to eligibility.

(b)	The minimum financial contribution should be at least equal to the cost of 
documentation and associated management.

(c)	The Union should encourage such members to join forces to form a kind of 
consortium with common interests if the participation of some small "members" was 
hampered by their limited financial capacity. 
Issues for further consideration

In the application of the criteria and procedures adopted by Council in 1993 
governing the participation of entities and organizations, instances have come to 
light in which the status of prospective participants does not match with any of 
the categories currently defined in the Convention. One of the prime issues to be 
clarified relates to the criteria for characterizing an entity as an international 
organization or an organization of an international character. The Plenipotentiary 
Conference may wish to consider possible amendments to Article 19 with a view to 
avoiding such types of difficulty in the application of criteria and procedures. 
Questions related to "members" rights and obligations as well as the criteria and 
procedures governing their participation are closely related to the multiple 
aspects of financial contributions and financing of Union's activities in general. 
Since none of these issues could be treated in isolation, it seems preferable to 
address them in a broader perspective of the ongoing reform of the Union's 
structures and functioning. More proactive decisions are needed where the Union's 
policy, based on the draft Strategic Plan (1995-1999), should determine the common 
denominator where Governments and other members could efficiently implement their 
distinctive roles and share their responsibilities in performing the mission of the 
Union.
In order to make the ITU a more effective and efficient organization offering wider 
opportunities for participation in sectoral activities, further synergies must to 
be sought and strategic alliances established with other organizations worldwide. 
The Union's creativity has been enhanced considerably by members participating in 
the global processes. The unprecedented value of their contribution and the 
environmental changes that in the past decade have influenced the role of 
Governments should further stimulate the projected openness.
The creation of the Development Sector, the changing profiles of Governments in 
performing the activities in the various Sectors, market requirements, business 
oriented practices and the changed and decentralized management in ITU Headquarters 
are new elements that suggest the search for new models.
As to members' financial contributions, one cannot ignore the difficulties 
associated with its multifaceted properties. Nevertheless, the relevant provisions 
of the current Convention on voluntary contributions are opening new possibilities, 
but require systematic and structured approaches in search of feasible and 
pragmatic solutions. 
In the light of Council's comments and taking account of the complexity and 
sensitivity of the issues related to enhanced participation by "members", there is 
a need to address them in a systematic manner. In so doing, the Union's 
intergovernmental character and Members' sovereign rights must be safeguarded. At 
the same time, and following the objectives as defined in the draft Strategic Plan, 
it is equally important to meet the concerns of members and satisfy their 
interests, based on the ITU's policy of openness and universality. Scope for 
strategic considerations may include studies on :

a)	Contributory unit(s) as a system;
		b)	Voluntary program contributions scheme and associated
	management arrangements;
c)	Specific sectoral features and operational requirements;
d)	Impact on corporate management and its harmonization;
e)	Constitutional and Conventional aspects.
In an effort to further strengthen the Union's effectiveness, it is important to 
recognize the strong correlation between enhanced participation and the implicit 
need for harmonious relations among the membership. Desire for opening the 
organization with adequate repartition of primary responsibilities in performing 
its missions may be a point of departure. 
In doing that, one may wish to go beyond the traditional approaches with a view to 
finding workable, efficient and responsive models. Study programmes that the 
Plenipotentiary Conference may wish to launch to this end, should include the above 
elements and should result in concrete solutions to be progressively implemented 
through appropriate mechanisms that Council may wish to establish.

Financial contribution system for non-administrations
The Council Working Group on Strategic Policies and Plans at its first meeting in 
Madrid, December 1993, agreed that:
*	"members" of the Sectors should be able to make voluntary contributions 
to support the activities of the Sectors to facilitate the accomplishment 
of specified tasks, or to complement provisions in the ordinary budget;
*	the present system of contributory units as it applies to "members" should 
be reviewed. While the system should remain voluntary and contributions 
should continue to be treated as income for the Union as a whole, the full 
cost of sectoral activities, including costs reallocated from the General 
Secretariat, should be considered in establishing contributory units for 
"members";
*	in conducting this review, consideration should be given to establishing 
mechanisms which would permit participation in Union activities by 
individuals or companies which are too small to make the contributions 
required of "members", but whose expertise would be of value to the work 
of ITU Sectors;
*	the impact of any change in the system of contributory units on the 
financial capacities of the three Sectors should be evaluated; 
consideration should also be given to the impact of the introduction of 
the system of voluntary contributions (referred to in the first indent) 
and the impact of any changes in the system of contributory units on the 
financial capacities of the three Sectors, so that any new measures 
adopted will ensure that the Union maintains a balanced capability to 
carry out all elements of its mission;
*	to ensure that new arrangements regarding financial contributions will 
effectively encourage greater participation by "members" in the 
activities of the Union, they should be consulted on measures being 
contemplated and options being considered before the working group's 
recommendations are finalized for transmittal to Council.
The opinions expressed by the Councillors at the 1994 session of the Council on 
these recommendations related to the financial contributory system, criteria and 
procedures to enable participation of very small members and the procedures and 
priorities for utilization of voluntary funds.
Part A of this document discusses the contributory unit as it applies to "members" 
of the Sectors focusing on the principles underlying the contributory system, 
determination of the contributory unit, an analysis of how the free choice has 
been exercised and possible changes to the system. Part B discusses the possible 
introduction of a mechanism to attract very small entities or individuals. Part C 
discusses the background to the issue of a voluntary contributions scheme and 
suggests some options to establish criteria for the implementation of such a 
scheme. Finally, the conclusions and recommendations are presented.
A. 	Contributory unit as it applies to "members" of the Sectors: the issues
The participation of entities other than Member administrations in the activities 
of the ITU is a distinguishing feature of the Union which sets it apart from other 
inter-governmental organizations. The knowledge and expertise the entities bring 
to the process of development of Recommendations is crucial to the growth of world 
telecommunications. While the entities derive advantages from participating in 
Union activities, it is recognized that the Union as a whole benefits from their 
participation by virtue of their technical contributions.
In monetary terms the ITU's barriers to participation are relatively low and 
participation has been increasing. In 1993, 115 recognized operating agencies 
(ROAs), 159 scientific and industrial organizations (SIOs), 49 regional and 
international organizations (including regional telecommunication organizations) 
and 6 inter-governmental organizations operating satellite systems participated in 
ITU activities. Given that the majority of the regional and international 
organizations are exempted from making financial contributions, this analysis will 
focus on the recognized operating agencies and scientific and industrial 
organizations The financial contributions of the "members" of the Sector are 
considered as the Union's income and not that of a particular Sector. Such 
contributions currently constitute about 11% of the Union's income and account for 
a significant part of the expenses of the ITU-R and ITU-T (35% and 45% 
respectively).

The provisions relating to the financial contributions of "members" have been in 
place, with minor modifications, for at least 40 years and closely resemble those 
of the Members. The basic feature - voluntary choice of unit class - applies to 
the "members" as well. 
DETERMINATION OF THE CONTRIBUTORY UNIT PAYABLE BY "MEMBERS"
There are three principles underlying this system: 
(a)		that "members" are free to choose the unit of contribution; 
(b)	that the value of the contributory unit has a relationship with the 
expenses of the Sectors in which they participate, and 
(c)	that the contributory unit bears a relationship with that of the Members 
and thus to the overall budget of the Union. 
Given the ratio of the units of Members and "members" the monetary value ascribed 
to a unit is fixed by the Council in establishing the budget of the Union on an 
annual basis. Fixing the ratio of the contributory unit payable by "members" over 
a Plenipotentiary cycle has the advantage of being simple to administer and 
ensures a stable and predictable income during a financial period. On the other 
hand, activities of the Sectors are cyclical in nature. There are peaks and 
troughs in Study Group activities, gathering pace towards the end of the study 
period and peaking with assemblies or conferences. In the meantime, support costs 
are relatively constant. In addition the relationship of "members" vis-à-vis the 
Sectors is a long term one, spanning a period between two conferences/assemblies. 
Thus a system of fixed relationship between the Member's unit and that of the 
"members" over a financial period has the advantage of ensuring stability as well 
as the element of evening out variable costs over a study period.
The relationship of a Sector's expenses to the overall budget of the Union as a 
basis for determining the ratio of the unit is closely related to the structure of 
the Union. The 1/5 ratio to determine the unit payable by "members" has its basis 
in historical experience of expenses of the two CCIs over a period of time. The 
question may be asked whether this ratio accurately reflects the proportion of the 
Sectors' expenses today. The principle now remains a "rule-of-the thumb" yard 
stick to estimate the "members" unit. The Council Working Group on Strategic 
Policies and Plans suggested that full costs of Sectoral activities including the 
costs reallocated from the General Secretariat should be considered in 
establishing contributory units for "members". This was reinforced at the 1994 
Council in which opinions were expressed that since the Union is now in a position 
to obtain detailed assessment of costs, participation by "members" should be based 
on real costs of the Sectors. 
EXERCISE OF FREE CHOICE OF CLASS OF CONTRIBUTORY UNIT BY "MEMBERS"
The provision of free choice rests on the premise that the "members" would assess 
the importance which they attach to their participation in the activities of the 
Union. There is also the premise that "members" derive benefits from their 
participation and that their contribution should in some way relate to those 
benefits. The underlying assumption is that the best judges of the benefits they 
derive and the contributions they should pay are the "members" themselves, within 
the constraints of the fact that the choice of class of contribution cannot be less 
than 1/2 unit (with the exception of the Development Sector) and the value of the 
unit is estimated by the provisions of the Convention. The provisions relating to 
financial contribution to the ITU-D lay down a minimum unit class of 1/16 in order 
to encourage the participation of entities from developing countries. Among leading 
telecommunication firms in terms of turnover, the norm is the 1/2 unit class. The 
contributory behaviour of ROAs is not significantly different from that of the 
SIOs. Out of 79 ROAs participating in the ITU-R, 60 (76%) chose 1/2 unit; 12 (15%) 
chose 1 unit; 6 (8%) chose 2 units, and only one chose 5 units. In the case of ITU-
T, 71 (80%) chose 1/2 unit; and 17 (20%) chose between 1 and 3 units. One ROA chose 
the 5 unit class.
In terms of the size of ROAs, of the world's ten largest carriers the top five 
contributed 2 and 3 units to ITU-R and ITU-T respectively, with the exception of 
one which chose the 5 unit class. The next five big carriers contributed no more 
than 1/2 unit. On the basis of observations it can be hypothesized that the choice 
of unit class of contribution (a) is determined by the availability of the lowest 
class of contribution; (b) does not necessarily bear any relation to the size and 
financial capacities of the firms; and (c) may have some relationship with the 
"members"' assessment of the scale of its interest in the overall activities. It 
can also be surmised that while some major firms with a larger spectrum of interest 
choose a higher than minimum unit class, in absolute terms such a contribution may 
not bear a relationship with the benefits they would derive from participation. 
It should be stressed that for ROAs, SIOs and other organizations, participation in 
the ITU is one vital link in the innovation-investment chain. These organizations 
make substantial investment in participation in terms of human and financial 
resources. The actual financial contribution constitutes a very small proportion of 
both the direct and indirect costs of participation. While they benefit from 
participation, the participants bring proprietary knowledge to ITU fora and 
transform it into a 'public good' by developing recommendations which form the 
basis of global telecommunications. In short these organizations contribute 
significantly to the objectives of the Union.  The benefits the "members" derive 
range from influencing the shape of global standards to acquiring information on 
future developments in the area of telecommunications.
A review of the system of financial contributions needs to balance the objective of 
increasing the revenue from "members" with the need for enlarged participation. As 
a first step, such an exercise would require determining the value of participation 
relative to cost for different types of "members".
POSSIBLE CHANGES IN THE SYSTEM OF CONTRIBUTORY UNITS
Increasing the ratio of the unit or increasing the minimum class 
Consideration of options for revising the minimum contributory class have to 
contend with the basic fact that in 1993, 55% of the ITU-R and 63% of the ITU-T 
unit contributions came from 1/2 unit class. This would suggest that there are a 
large number of small organizations (or organizations with thin participation and 
interest in the ITU activities in spite of their size) whose participation would be 
sensitive to significant increases in the unit size and value. Such a course may be 
counterproductive if one of the major objectives is to enhance the participation of 
entities in the work of the ITU. While increases in general may be unpopular, 
entities and organizations participating on a large scale in ITU activities may not 
be averse to increased contribution provided that such increases are linked to 
significant gains in terms of quality and timeliness of products and services 
delivered. An option worth exploring is a differential system depending on the 
Sector of participation and size of the organization with measures for favourable 
treatment for small organizations. 
A variant of the option may involve establishing a baseline of unit class depending 
on the size of the entity involved. Indicators such as telecommunications-related 
turnover or number of employees may be used to determine the eligibility to 
contribute lower unit classes. It may still be practicable to maintain free choice 
if exceptions relating to size of the entity are built into these provisions. Such 
an option, however, would mean dependence on means such as certification which may 
add to administrative costs, but would increase the flexibility inasmuch as small 
organizations are not excluded because of financial barriers. 
Given the fact that increases in contributory unit may have differential effect on 
the participation of different entities two possible options may be raised.
*	linking the number of units to services consumed;
*	linking the number of units to actual participation in Study Groups;
LINKING CONTRIBUTORY UNIT TO SERVICES CONSUMED
This option would have the advantage that the indicators required would be ITU-
related. Likely candidates for indicators are the number of meetings attended, 
number of delegates, number of documents submitted, etc. A priori, such measures 
are not uniform and comparable. Given the type of meetings (inclusive or exclusive) 
those who contribute by attending are likely to be penalised. Similarly, it would 
hardly be just to penalise those entities which have submitted documents or 
participated in the meetings. This method may distort normal working methods, would 
be impracticable and would discourage participation, inasmuch as experts would be 
discouraged from taking on official responsibilities such as Rapporteurships and 
Chairmanships of the Working Groups and Committees. Finally, it would not be 
possible to maintain the principle of free choice.
LINKING CONTRIBUTORY UNIT TO PARTICIPATION IN STUDY GROUPS
Under this option, choice of unit class would be related to the number of Study 
Groups in which the member participates. (For example, 1/2 unit for participation 
in two Study Groups; 1 unit for four Study Groups and so on). This option has to 
contend with the fact that there are a large number of Study Groups, Working 
Parties and Joint Coordination Groups, and Intersectoral Coordination Groups under 
the management of different Sectors. A variant of the option would be to fix the 
amount of contribution for each Study Group, Working Party or Committee. This 
approach was considered in 1973 and not retained on the grounds that (a) it would 
have to take into account facts such as differences in volume of work, 
documentation, and the fact that expenditures are not identical; (b) extremely 
detailed breakdown of operating accounts would be essential for the purpose of 
fixing contributions; (c) in the absence of a breakdown, a system of contributions 
for each Committee may lead to arbitrary figures. It has to be pointed out that the 
financial management system now in place does not ease such concerns.
Retain the existing system with modifications
In spite of limitations, the present system has worked well. Table 3 in the Annex 
presents data on the ROA, SIO membership of ITU-R and ITU-T for the years 1984 and 
1993. Between 1984 and 1993 the total contributory units increased from 193.5 to 
248.5, an increase of 28%. The increase in the unit contributions to ITU-R has been 
a significant 51% together with an increase in membership of 42%. The increase in 
membership and contributory units of ITU-T has been 20% and 18%. As a proportion of 
the overall budget of the ITU, "members" contributions have increased from about 
8%, to 10.7%. The contributory units of "members" have increased from 62.5 to 94.5 
for ITU-R and 131 to 158.5 for ITU-T between 1984 and 1993 by virtue of increased 
membership. In view of the difficulties and uncertainties associated with other 
options, a possible course of action may be to maintain the principles underlying 
the status quo.
From a broader perspective, the issue of financing is inseparable from much deeper 
issues relating to the structure of ITU and the relative roles of "Members" and 
"members". Enhancing the participation of "members", across industry, across 
geographical divides and status of development is crucial to the role of ITU as a 
global organization. Financial participation and the principles on which it is 
based is one aspect. In the short term any adjustments to the system of "members" 
contributions should be allied with demonstrated improvements in the manner in 
which products and services are delivered. In the longer term, there may be merit 
in revisiting the basis for determining contributory units as part of a broader re-
examination of the structure and functioning of the Union.
In the short-term, it may be desirable to provide for flexibility in the operation 
of a free choice system which may give favourable treatment to small entities by 
lowering the minimum unit class and those exposed to vagaries of the market by 
reducing the period required for denunciation to less than one year. At the same 
time, adequate safeguards have to be built in to ensure that the system is not 
misused.
B.	Participation of very small "members": financial issues 
The Council Working Group on Strategic Policies and Plans suggested that 
consideration should be given to establishing mechanisms which would permit 
participation in Union activities by individuals or companies which are too small 
to make the contributions required of "members", but whose expertise would be of 
value to the work of the ITU Sectors. Councillors participating in the discussion 
on this issue at the 1994 Council Session suggested that: 
a)	the possibility of participation by very small members can be 
considered subject to adoption of precise criteria and procedures 
as to eligibility; and
b)	the minimum contribution should be at least equal to the cost of 
documentation and related management costs. 
The introduction of such a mechanism would involve:
a)	de-linking participation from long-term financial commitments of 
membership of a Sector; and 
b) introducing criteria related to the size of the firm to determine 
eligibility for exception to the rules governing participation. 
Development of criteria of eligibility for ad hoc participation may be developed on 
the basis of indicators such as telecommunication-related turnover and number of 
employees or a combination of the two. Both these indicators have limitations: 
turnover may need to be related to telecommunications, the definition of which may 
prove difficult if not intractable. The number of employees as an indicator is not 
comparable across countries. (For example, in country A, a company may have a 
turnover of $ 5 million with 5 employees, whereas in country B, a company with 50 
employees may turn over $ 1 million.) In addition, in order to make this principle 
applicable to potential participants across countries, account needs to be taken of 
purchasing power parity.
In view of the requirement of detailed conditions and procedures such as precise 
criteria to determine which "member" would be eligible and consideration of 
possible negative effects such as migration of current "members" to the new 
category, a detailed study by an expert group may be called for. On the other hand, 
ad hoc procedures in broader terms could be developed to introduce this system on 
an experimental basis, the experience of which may be reviewed over a period of 
four years with a view to either streamlining or discontinuing the scheme. 
An experimental scheme may be based on certification by an administration as to the 
size of the firm or expertise of the individual and authorization as to its 
participation before detailed criteria are determined for the identification of 
small firms. 
Identification of the costs of such participation on the basis of indices such as 
number of meetings, and taking into account costs of documentation and management 
overheads has to have measures to equalise the costs over a Study Group 
period/financial period. In the short-term, a rough approximation of the cost of 
meetings may be developed without being set at a too deterrent level.
C.	Voluntary contributions
Funding of ITU activities through voluntary contributions has been an element of 
the technical cooperation programme for several years and has constituted a major 
proportion of the Centre for Telecommunication Development's expenditure. Table 4 
shows trends in voluntary contributions between 1984 -1993. Voluntary 
contributions as a percentage of the ordinary budget rose from 0.1% in 1984 to a 
peak of 3.46% in 1990 to decline to 0.26% in 1993. 
The objective of voluntary contributions is not to replace the existing resources 
for the regular activities but to permit additional activities or reinforce 
activities for which there is insufficient funding and to accelerate the 
implementation of activities considered to be of high priority but which cannot be 
taken up in view of the limited availability of funding. In general, it appears 
that by virtue of its activities and mandate the ITU-D is more suited to attract 
and utilize voluntary contributions both in cash and in kind. Under the present 
work practices the scope for the ITU-R and ITU-T to attract voluntary 
contributions may be limited to contributions in kind. The extent of the 
possibility of voluntary contributions and the implications for the work practices 
of the different Sectors bear an in-depth evaluation.
If voluntary contributions become a significant factor in financing the activities 
of the Union, this may result in a higher proportion of unstable income vis-à-vis 
stable income, necessitating, on the one hand, that Members ensure against 
negative effects and on the other hand that appropriate staffing rules be 
developed. It may also be advisable to fix a minimum acceptable voluntary 
contribution in order to avoid recurring overhead costs which exceed the value of 
the voluntary contributions, determine priority areas for attracting such 
contributions, and limit the proportion of voluntary contributions in the total 
budget of a Sector in a given year so that existing resources can smoothly absorb 
additional funds. 
Following identification of priority areas for voluntary contributions explicit 
measures to promote a voluntary contribution scheme would involve:
*	recognizing activities undertaken through this scheme as official 
activities of the ITU;
*	integrating the activities funded by the ordinary budget and the 
activities funded by voluntary contributions ;
*	harmonizing the donor's wishes and the working methods of the Sectors;
*	developing criteria for reviewing proposals from donors.
In addition, the ITU Secretariat's efforts to attract voluntary contributions may 
involve:
*	establishing a promotion team;
*	publishing information for potential donors;
*	suggesting examples of voluntary contributions to raise potential 
donors' awareness;
*	establishing ITU's contact points and associating them with the 
mandate.
Conclusions and Recommendations
CONTRIBUTORY UNIT AS IT APPLIES TO "MEMBERS"
Discussion of the issue of the participation of "members" being based on full costs 
of the Sectors has to take into account two factors. First, whether the "members" 
share the expenses, based on the total share of the old CCIs in the Union budget 
and bearing a relationship with the Members' unit. Second, whether the point of 
reference is the individual share of a "member" or collective share of "members". 
Collectively at present the "members" contribute in notional terms about 35-45% of 
the ITU-R and ITU-T. 
The foregoing analysis suggests that the contributory behaviour of members seems to 
indicate that while 1/2 unit is the rule, the choice bears some relationship with 
the breadth and intensity of a member's interest in the activities of the Sector 
concerned. In other words, the scale of interest and stake in the Sector differs 
from one entity to another.  
Given that the category of "members" hides vast differences in the interests, 
investment capacities and strength of participation of members, a "least common 
denominator approach" would entail foregone revenue from "members". On the other 
hand an across the board increase either in the minimum unit size, or the ratio of 
the "members" unit to the Member's unit would adversely affect the participation of 
some members, particularly those with limited interest in the activities of a 
Sector. In addition, the issue of the narrow geographical spread of membership and 
revenue base has to be considered. Increases are likely to effect members from 
developing countries more severely than others. The negative effects of increased 
unit size or value may include either withdrawal from membership or an increased 
tendency of members participating in the activities as part of national 
delegations. It is also important to take account of the competition that exists, 
for "member" participation, especially in the field of standardization. 
The inherent trade-offs between changing the system of contributory units and 
enhancing participation by entities other than administrations may suggest that the 
principles and mechanisms underlying the present system should be maintained with 
modifications to ensure that greater flexibility is introduced to take into account 
factors such as the size of the firm in order to encourage participation of 
entities. As long as the present "rules of the game" insofar as they cover the 
terms and conditions of "members" participation continue, measures to secure 
simplicity of rule application and flexibility in participation seem to be 
warranted. Should the Union wish to contemplate changing these rules, it might be 
appropriate to re-consider this issue. Whatever approach is taken, however, it is 
important to bear in mind that financial contributions are only one aspect of 
participation by non-administration entities. Excessive focus on this issue may 
cloud the basic objectives of encouraging participation, with the underlying 
principle that expertise of all sectors of activity both public and private have a 
role in strengthening global communication.
PARTICIPATION OF VERY SMALL MEMBERS
Introduction of a mechanism to enable the participation of very small members in 
their own right in the activities of the Sectors would imply a) de-linking 
participation from long-term financial commitments and b) introducing an exception 
based on the size of the firm. The system may be introduced on a provisional basis 
and reviewed after a period of four years.
VOLUNTARY CONTRIBUTIONS
The objective of voluntary contributions is to enable undertaking of additional 
activities or strengthening existing activities which are of high priority but for 
which there is insufficient funding. While a mechanism to attract such funding for 
activities has to be set up, it is equally important to ensure that priority areas 
to attract such funding are identified and principles are established so that 
resources may be absorbed smoothly.
In the final analysis a review of financial contributions by "members" of the 
Sectors suggests the advisability of ensuring that the system is simple (rules can 
be interpreted easily), flexible (in order to enhance participation of diverse set 
of entities in the activities of the Sectors), ensures that adequate safeguards are 
incorporated to minimize inappropriate uses and does not demand excessive 
administrative resources.


ANNEX
Survey on Products and Services 
In preparing this program of studies, Members may wish to take note of the findings 
of a survey conducted by the Strategic Planning Unit. The purpose of this survey was 
to explore the current and projected needs and requirements of "members" and to 
elicit members' responses regarding ITU products, services and its overall 
performances. Among the "members" surveyed were telecommunication operators, service 
providers, manufacturers, user organizations, as well as international and regional 
organizations. The survey was conducted in two phases with an overall 17% response 
rate (58 responses out of a total 346 "members"). 
What do "members" really want?
 *	Faster development and delivery of Recommendations and related documents; 
 *	Increased ITU responsiveness to the market demands and to innovative technology 
applications.
*	Streamlined working methods with an emphasis on priority setting, project-
oriented management, and coordination to avoid duplication;
 *	Greater electronic access to Recommendations and other information; 
 *	Greater coordination and cooperation: 1) between the Sectors; 2) with other 
International and Regional Standards Setting Bodies; and 3) with industry fora.
The results of the survey point to an overwhelming consensus among "members" on the 
issues of direct concern to them and on what they consider to be the most valuable 
products and services. They are primarily interested in the ITU's responsiveness to 
market demands and in the timeliness and quality of ITU Recommendations. The most 
valuable products are Recommendations and their related products. However, their 
opinions differ when commenting on their current ITU status and their vision of the 
ITU in the future.
 
What do "members" think about their current ITU status?
 *	Out of the 58 interviewees, 31% made no comments about their status, about 21% 
are satisfied, whilst 48% are unsatisfied. 
 *	Those who are satisfied seem to have close relations with their Administration 
and feel that their positions are adequately represented. 
*	Those who are unsatisfied wish greater participation in decision-making 
processes. In particular, they want more influence over which Study Programmes 
are to be undertaken and what priority they will be assigned. They also would 
like the right to approve final technical Recommendations, especially in the 
ITU-T Sector.  
*	Seven out of the 10 participants who are most active in almost all the Study 
Groups within ITU-T and ITU-R Sectors, identify their current status as a 
critical concern. 
The survey's results confirm a need for further, more detailed exploration of options 
for future possible changes in "members" participation in the Union's activities. 
Anticipating this need for further research, the ITU's 1994 Council recommended, 
inter alia, that Sectors should conduct surveys on their "members" views with an 
appreciation of their future role in the ITU activities. On the basis of our 
experience with this initial survey, it is recommended that the sectoral surveys to 
be performed should include respondents at the executive level as well as the 
technical level in order to ensure that overall issues of strategy and policy are 
appropriately addressed.


Table 1
Income by source
 

Table 2
Evolution of the Union income from 1985 to 1993
 


Table 3
Evolution of "members" in ITU-R and ITU-T


ITU-R

ITU-T


Year
ROA/SIO
Units
ROA/SIO
Units

1984
85
62.5
191
131

1993
123
91.5
226
158.5


Table 4
Trends in Voluntary Contributions 1984-93
(in thousands of Swiss francs, in historical values not corrected for inflation.)

Year
Regular 
Budget
Voluntary 
Contributions

Total, 84-93
1'202'113
20'374

Growth rate,84-
93 
3.70%
15.00%

Growth rate, 
89-93
4.00%
-44.60%


"Voluntary contributions" included here are contributions to the Centre for 
Telecommunications Development (CTD), the Special Voluntary Programme for 
technical cooperation, and other special contributions such as the Canadian 
International Development Agency contribution for the HLC report. It excludes 
contributions in kind. 
Table 5 
Contributors by size and share 
 
  	Participation is more than just membership.  In order to give it a concrete meaning account should be taken of the 
breadth and depth of interest of an organization in the activities of the Union.  Breadth of interest would refer to the 
number of Study Groups and depth would refer to the number of Questions that an organization is interested in.  An 
additional index could be the intensity of participation which could encompass the number of individuals participating, 
the assumption of official responsibility such as Chairmanship, Vice-Chairmanship and Rapporteurship.  All these are 
possible indicators of levels of commitment and interest.  These indicators have limitations in the sense that they cannot 
accurately reflect the inputs of other participants.
 	Of the 230 entities participating in the ITU-T, 80% belong to one or the other standardization organizations.  It is likely 
that an increase in contributions may affect participation of at least some of them.

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