Madam Chairperson,
President Mr Fawzi Hamed Al-Sultan,
Distinguished Governors,
Ladies and Gentlemen,

I am very honoured indeed to address the twenty-fourth IFAD Governing Council on behalf of the Government of Japan.

First of all, I would like to pay my tribute to the outgoing President Mr Al-Sultan, who has made strenuous efforts toward the development of IFAD over the past eight years.

We have already entered the twenty-first century and we are now living in an age that we have never experienced before – an age of globalization, in which the fences hindering the movement of people, money and goods are being lowered, and economic activities and information are flowing around the world instantly. In this new age, it is important we be conscious of the fact that we are more involved, in some way or the other, in problems of the world and must therefore seriously tackle and help solve these problems. In particular, poverty is the biggest issue common to humankind that nobody can ignore.

There exists the harsh reality that at present 900 million people are living in poverty in Asia alone and many countries of Africa and other regions are not enjoying the benefits of development. We certainly cannot be optimistic about the future when looking at agriculture and food situation. Amid the problems of climate changes, the rapid increase of the world’s population and the tightness of food demand, it is likely that food production will decline in developing countries due to factors such as soil deterioration caused by slash-and-burn farming, inadequate use of water resources and irrigation control, and excessive grazing.

Under these circumstances, the role of IFAD is becoming increasingly important. In view of the fact that most people living in poverty are concentrated in rural areas, IFAD’s rural development is one of the most effective measures for poverty eradication. The rural development undertaken by IFAD attaches importance to the empowerment of stakeholders through a participatory process. This kind of approach brings out the various potentials of rural areas and enables sustainable development. Highly appreciating these activities of IFAD, Japan has pledged a contribution of USD 30 million for the Fifth Replenishment in spite of its serious economic situation compared to other developed nations.

However, the promise for Japan’s continued support to IFAD is that it must extend truly efficient and effective assistance. We have to note that, on the other hand, the situation surrounding IFAD, especially its financial condition, is certainly not favourable. With increasing financial demand for support to developing countries, including the enhanced highly indebted poor countries debt initiative, IFAD’s investment profits are noticeably lower in the year 2000 than initially forecast.

During the past 30 years, the ratio of people in Asia living under the poverty line has dropped from half of the total population to about one-third, average longevity has risen from 48 to 65 years, and the adult literacy rate has risen from 40 to 70%. I hope that in the twenty-first century the kind of large-scale economic and social improvements that have taken place in Asia will be achieved in Africa and other regions too.

At the beginning of this year, H.E. Mr Yoshiro Mori toured South Africa, Kenya and Nigeria and became the first Japanese Primer Minister to visit sub-Saharan African Countries. He held talks with the leaders of these three countries and engaged in exchange with the local people. During his tour, Prime Minister Mori also highlighted that "there will be no stability and prosperity in the world in the twenty-first century unless the problems of Africa are addressed and resolved". I would like to state that his appeal was that all people should enjoy the fruits of prosperity in the new age, and no region should be left behind.

Since its founding in 1978, IFAD has been involved in rural development in the poorest regions of developing countries, and it has accumulated wide knowledge on this issue. I indeed hope that this knowledge and experience of IFAD can be shared and effectively utilised by governments, international organizations, civic groups, and so on. Finally, I earnestly hope that regarding poverty eradication IFAD can develop additional innovative methods and further increase its raison d’etre.

Thank you.