IFAD views as the principal cause of poverty, especially in rural areas, not scarcity of productive resources so much as secure access to them. IFAD argues that in order to secure such access, which is equitable, efficient and sustainable, it must be market-based, subject to the following qualifications:

• The poor must have open access to markets (input, output and services). Markets at all levels must provide a level playing field.
• Since markets in themselves do not favour the poor, institutions and policies should be enacted and enforced that ensure market inclusiveness and non-concentration of power in the hands of the few.
• The poor must be organized into effective groups, or, where existing, such groups should be strengthened so that they can ensure that pro-poor policies are enforced; in the event that they do not exist, ensuring that such policies are enacted.
• Social safety nets, both informal (traditional systems) and formal (modern, state supported), should be revitalized or developed to take care of those who “slip through the gaps”, as will likely happen, no matter how careful one is.

Given its mandate and focus on empowering the poor to help themselves out of poverty through self organizing as well as institutional transformation, IFAD has adopted a strategy that has the following elements:

• capacity building of a wide range of organizations of the poor, especially at the grass roots and local levels, so as to enable them to choose between options and to influence decisions
• facilitating the development and transformation of the institutional landscape – rules, norms and policies – that empower the poor, especially women, and that enable secure access to productive resources, markets, technology, and financial and other services
• promoting and creating fora for dialogue between people and their organizations, governments, the private and civil-society sectors as well as donors, so as to ensure the establishment and enforcement of pro-poor policies
• coordinating with other donors so as to ensure “comprehensiveness and full complementarities in the coverage of pro-poor institutional transformation needs”.

Given IFAD’s mandate and impact objective, the implications are broadly twofold:

• IFAD needs to strengthen its own organizational competencies in institutional analysis and dialogue.
• IFAD needs to strengthen the capacities of the poor and their organizations to influence institutions relevant to poverty reduction.

Source: IFAD Source Book