Governors,
Mr. President,
Ladies and Gentlemen,

It is a great pleasure and privilege for me to attend the 32nd Session of the Governing Council of IFAD on behalf of Austria.

We are meeting at a time of global economic uncertainty. Currently for the first time since the inception of IFAD the world economy is experiencing a major downturn. A global economic crisis has caused economic activity to slow down and dimmed the outlook for economic growth.

Industrialised countries are close to recession and the slowdown is already being felt around the planet.

Developing countries although to a lesser extent interlinked with the financial markets are nevertheless feeling the contagious effects of the financial crisis.

After the food price crisis which attracted all our attention one year ago we are today confronted with an economic problem of even greater magnitude.

All actors i.e. governments, international bodies and the International Financial Institutions are called upon to react to the issues confronting us.

IFAD has a role in this context.

In the face of last year’s high food prices and low food stocks IFAD has reacted quickly by reallocating funds from existing loans and grants to provide immediate boost to agricultural production in its hardest hit member countries. This was commendable.

In the context of the current financial crisis IFAD must again play its part. It will be important to help developing countries minimize disruption to ongoing development programs and projects. Where possible governments should be supported in the continuation of ongoing and planned development projects and programs.

Coming on the heels of the food and fuel price shock, the current financial crisis could significantly set back the fight against poverty. The poor are likely to be hit hardest.

IFAD as a rural knowledge organisation must use its proven comparative advantage by providing additional policy and practical advice to its target groups, the rural poor, to strengthen their resilience to the negative effects of the general degradation of the economic climate.

In cooperation with its partners – governments, civil society, NGOs, private sector players and the international development community – IFAD can leverage its own financial and knowledge input.

The prime event for IFAD of the past year was the consultation on the eighth replenishment of its resources. It took five sessions to successfully conclude the exercise.

The Fund and its membership can be congratulated on this achievement.

A broad consensus has emerged that agriculture must be accorded greater significance on the development agenda. Over the last twenty or more years we have witnessed a steady decline in aid being given to the agricultural sector. In the face of the MDGs there is now a common understanding that investment in agriculture and especially smallholder agriculture must be increased if poverty reduction and food security for the growing populations can be achieved.

The outcome of the eighth replenishment of the IFAD’s resources is therefore very encouraging. A broad consensus was achieved on the replenishment target of USD 1, 2 billion. This represents an increase of 50 percent over the seventh replenishment.

It will enable the institution to carry out a significantly greater programme of work during the period 2010 to 2012.

We expect that the Fund will make best use of these new resources.

The consultation held long discussions and gave guidance on various important issues which are all recorded in the Donors’ Report. The report is the manual for IFAD’s operations in the coming period. It contains the benchmarks against which the Fund’s work will be judged.

We encourage the Fund to pursue the operational priorities for the eighth replenishment period which were agreed upon by the consultation.

Delivering results through differentiated country approaches, achieving operational effectiveness through country ownership, collaboration and partnerships with other development players, engagement with the private sector, gender equality, women’s empowerment, engagement in climate change issues and sustainability of its development assistance must be the guiding principles for the Fund’s actions.

Given the size of the Institution and the huge investment needs for pro-poor rural development IFAD must concentrate on core issues such as raising agricultural productivity and production through improved technology and market access.

We expect the results measurement Framework to be operational as foreseen in 2010. As a results measurement tool it will enable the Fund to demonstrate its contribution to rural poverty reduction and development outcomes in a comprehensible way.

The mid-term review which was agreed upon will provide a useful opportunity to assess the Fund’s effectiveness half way through the replenishment period and how to move forward.

Some comments on the Programme of Work for 2009. We encourage IFAD to sharpen its focus on agricultural production, technology and resource management challenges, and knowledge sharing and collaboration and we support the proposed increase of the annual financing level.

We also can approve the proposed Budget for 2009.

I am glad to welcome the Marshall Islands as a new member of IFAD.

IFAD can be congratulated on its again growing membership.

Mr. President as your term of office is coming to a close soon I want to take this opportunity to thank you very much for your excellent leadership and work done for the Institution over your two tenures.

The timely and very successful conclusion of the eighth replenishment consultations is a proof of your able leadership.

The significant increase of the replenishment level reflects the respect and confidence of the membership in the Institution which you helped to build.

In this sense, Mr. President, every good wish for your future.

Now I want to welcome the new President of the Fund whom we elected today.

Mr. (Name of the new President)  please accept the congratulations from the Austrian government and my personal ones and welcome to the helm of the Fund. We wish you good luck and all the success for your new demanding function.

I also want to take this opportunity to thank the Italian government for providing IFAD with a very convenient new office building.

In conclusion my thanks go to the excellent staff of the institution for its professional work and proven dedication.