Her Excellency Mrs. Kirsti Lintonen,
The Chairman of the Governing Council of IFAD,
His Excellency Dr. Fawzi Hamad Al-Sultan,
The President of IFAD,
Ladies and Gentlemen,

I would like at the outset to thank you for inviting me to participate in this important meeting that comes at a historic stage of the work of the International Fund for Agricultural Development (IFAD).

This is a time of escalating challenges and growing hopes for a bright future for humanity at large, coinciding with the beginning of a new millennium that will hopefully bring full prosperity to us and your friendly peoples.

Ladies and Gentlemen,

The international community now passes through a critical historical stage, in view of the recent world developments related to globalization and economic liberalization phenomena. The opportunities and challenges arising from such development are not confined to political, economic, social and cultural aspects but also gains growing importance in several sectors.

Of all sectors, the agricultural sector could be the most vulnerable to challenges in the coming period. However, all countries of the world, be they advanced, developing, net food-importing or net food-exporting countries, will be exposed, in varying degrees, to such challenges, particularly in view of the fact that challenges facing the agricultural sector have become more complicated and more interlaced with several other sectors and areas.

In the past year, the negotiations on the agricultural sector started under the World Trade Organization. These negotiations have been characteristically difficult and complex, given that they require the balancing of a wide array of interlaced and sometimes contradictory considerations.

This involves balancing between the interests of developing, advanced, net food-importing and net food-exporting countries, balancing between trade liberalization in agricultural commodities, on the one hand and the protection of small farmers and the fulfilment of food security on the other. Difficulties facing agricultural exports to developing countries in accessing markets as well as those confronting those countries in acquiring high agricultural technologies. All this must be carried out within a supportive framework for sustainable development, environmental and human health protection, particularly as diseases have become more dangerous and more easily communicable.

Rapid outbreak of mad cow disease and dioxin poisoning are but examples of problems that can face the world community in this field.

In addition, the world population has recently overstepped the threshold of 6 billion of whom 826 million, including 200 million children, suffer from famine. Still, one half of the population of the globe lives on less than two dollars a day.

Moreover, the world population is expected to increase by two billion during the two coming decades, adding a major burden on the international community in the way of redoubling agricultural production, alleviation of poverty and hunger, realizing food security and environmental protection. The achievement of these goals is considered an essential requirement to guarantee world peace, security and stability.

We all had asserted these goals in the Rome Declaration issued by the Food Summit of 1996. The Declaration highlighted every individual’s right to break away from hunger and set an essential target, namely to reduce down to half those who are suffering from food deficiency in the world by 2015. The Review Summit, scheduled to be held this autumn under the aegis of FAO, may provide an opportune chance to agree on redoubling efforts to achieve such end.

We have already expressed our firm determination in the UN Millennium Summit, to pursue serious endeavours to cut down to one half the number of those living in abject poverty by 2015.

In addition, the recent IFAD report on "Poverty in Rural Areas 2001" pointed out that three quarters of those living in abject poverty reside in rural areas. Accordingly, it is now required that rural development should be a high-priority issue on the world community’s agenda. It should be equally, if not more, important than the ongoing interest in urban development in order for us to achieve the aspired goal in due time.

Ladies and Gentlemen,

In view of the foregoing, IFAD’s activities gain an increasing importance in assisting the developing countries to fulfil their hopes and ambitions in eliminating hunger, alleviating poverty in rural areas and facing the adverse effects of open-door and economic liberalization policies.

I am sure that your esteemed council will proceed, as usual, developing innovative future strategies that could evolve in line with the successive developments on the economic arena in order to achieve the hoped-for goals within the framework of constructive dynamic cooperation between the beneficiary countries, financial and development institutions, non-governmental organizations and the private sector.

I am also sure that the strong underpinning of IFAD embodied in the select galaxy of efficient staff imbued with belief in the issue of rural and agricultural development will continue to undertake their responsibility in the upcoming critical stage on the same level of remarkable efficiency and ability they manifested under the Presidency of Dr. Fawzi Al-Sultan. Indeed, Dr. Al-Sultan’s outstanding scientific, professional and organizational capabilities have imparted a distinct imprint on IFAD’s work during his term of presidency. Notable were his contributions to revitalizing and supervising IFAD’s resources in addition to upgrading its lending mechanism so as to be more flexible in responding to the needs of the beneficiary countries, particularly the poor countries. Thus, they could benefit more from high technical expertise and technologies. This is apart from other successive achievements made throughout two consecutive terms of office which, I am sure, you duly appreciate.

I wish, in your presence, to express, on behalf of Egypt and myself, our sincere appreciation for his pioneering role in upgrading IFAD. I do wish him all success in the service of his home country; the brotherly State of Kuwait.

Ladies and Gentlemen,

In Egypt, special attention is given to the agricultural sector due to its significant position in the Egyptian national economy accounting for about 18% of the gross domestic product. It also employs nearly 34% of Egypt’s total labour force and contributes about 20% of the total exports.

Under an advanced strategy for agricultural development during the 80s and 90s, Egypt had eliminated all forms of governmental intervention in the agricultural sector that is at present governed by market mechanisms. Thus, today the role of the state is confined to conducting agricultural research and extension services as well as developing and implementing agricultural policies and legislation.

The agricultural sector was one of the pioneering sectors under the economic reform and liberalization programme. It has accomplished great achievements in agricultural development and maintained food security in Egypt.

Furthermore, the Egyptian farmer favourably responded to the liberalization and reform efforts resulting in an increase in the area of arable land and productivity per feddan. Moreover, the volume and growth rates of agricultural and livestock production increased.

Rates of self-sufficiency were improved and the volume of the Egyptian agricultural exports increased, raising the real incomes of farmers.

The distinguished relation between Egypt and IFAD played an important role in achieving such a leap in the field of agriculture. This was affected through the Fund’s initiative to finance projects that served the objectives of the Egyptian agricultural development plan and were compatible with the state socio-economic development plan through two main themes.

Theme One:

Support vertical expansion by focusing on integrated agricultural development projects to increase the crop return per feddan in the new arable lands. The fund cofinanced agricultural development projects in Minya and Fayoum governorates, a project for intensifying agricultural production in the governorates of northern Upper Egypt, in addition to an integrated rural development project under joint financing together with Egypt and the World Bank.

Theme Two:

Support states’efforts in reclaiming lands and vertical agricultural expansion in deserts within the framework of IFAD’s increasing interest in combating desertification by offering post-settlement services to land reclaimed by the state. Thus, the Fund contributes to West el-Behira settlement project and the agricultural services development project in the new lands in east and west Delta under a joint financing with the World Bank and the government of Egypt. The success of the Fund’s projects in Egypt was enhanced by the fact that they coincided with the overall state orientation in expanding the agricultural area and improving its productivity. This was demonstrated by the pioneering projects for reclaiming new 3.4 million feddans in east Owainat, south west of the Western Desert, Darb el-Arbéen, south east of the Western Desert up to the Sudanese borders, as-Salam Canal area, east and west of Suez Canal in addition to our mega project in Toshka aiming at utilizing the Nile water and the subterranean water to reclaim lands of the Southern Western Desert. Related to all these projects is the creation of agricultural, industrial and residential communities based on achieving the optimal exploitation of the project’s agricultural output. All these and other similar projects aim at encouraging relocation from the narrow Nile Valley to the vast expansion of the desert. This would be effected through creating new agricultural communities in order to overcome housing, over population and unemployment and other problems. This requires an increasing tendency towards vertical and horizontal agricultural and industrial expansion. It is also required to protect, by all means, agricultural land against scraping and letting it lie fallow with the purpose with the purpose of turning it into residential areas.

Our interest in agricultural and rural development was not only confined to the land of Egypt but was extended also to our brothers and sisters in the African continent. Indeed, we do take great pride in such belonging based on the experience we have gained from implementing projects of land reclamation, water resource regulating, modern irrigation, cooperatives, marketing and fisheries. Add to these our experience in the fields of livestock, poultry and fish production. Undoubtedly, such joint projects will yield not only mutual economic interest for us and our African brothers but also contribute in bringing about a rapprochement in the agricultural and consequently in economic thought. This also falls in line with our sustained endeavour to establish the African Economic Community. Needless to state that the main problem facing the deepening of such cooperation to the required level lies in providing necessary finance. This imposes an increasing responsibility on financing funds and organizations as well as donor states to pay more attention to agricultural development projects. One way is to allocate to the African continent more resources that may equally cope with its virgin arable lands and renewable water resources to allow the optimal exploitation of such lands in agriculture, thus yielding maximum economic benefit to contribute in eliminating hunger and poverty.

Relating to the Fund’s efforts in the field of agricultural development projects and programmes, I would like to hail, in particular, your initiative to establish a credit fund in order to finance new projects in Gaza and the Western Bank in response to the request of the Palestinian Authority. I would like also to express our support and backing to the Fund’s efforts in implementing agricultural development projects and programmes in Palestine. We hope these will redouble in the coming period so as to coincide with the establishment of the Palestinian state, thus providing agricultural and economic support necessary to realize welfare to the brotherly Palestinian people.

Similarly, I would like to pay tribute to the Fund’s contribution to the initiative of relieving debt burdens of heavily indebted poor countries, launched by the G-8 Summit in Germany in 1999. The IFAD will contribute US Dollars 60 million through a special fund established for that purpose under the auspices of the World Bank. Within the context of discussing special initiatives, I would like to hail the friendly Italian Government, not only for warmly hosting and facilitating the work of FAO, IFAD and World Food Programme but also for its recent initiative of the new millennium which aims to serve the issue of combating starvation through participating together with the World Bank, FAO and the World Food Programme in agricultural projects being implemented within the framework of the process of converting Italian bilateral indebtedness into investment in local projects in indebted countries. This initiative deserves all appreciation and praise on our part.

Ladies and Gentlemen,

In my speech before your esteemed council almost two decades ago, specifically in 1982, I asserted that "he who owns not his own means of livelihood has no control over his own freedom". Accordingly, developing the agricultural sector and maintaining food security has been a top priority of national action in Egypt. The result was a huge leap and I would like to present an overview of its major features.

Our production of grains rose from 8 million tons in 1982 to about 18.5 million tons in 2000, and fruit and vegetables from 11 million tons in 1982 to about 22 million tons in 2000. Today, Egypt ranks first among world countries in the productivity of rice per hectare, sugar cane and Guinea corn.

Egypt has succeeded in achieving self-sufficiency in poultry, eggs, dairy and fish production, where output rose at present to 650,000 ton from 222,000 ton in 1982. Self-sufficiency in wheat rose from 25% in 1982 to about 55% in 2000, while sugar to about 80% and red meat to about 75% despite an increase in population of more than 20 million and a rise in total consumption due to the improvement of the standard of living.

In addition, Egypt’s agricultural exports increased from about LE 470 million in 1982 to LE 2 billion in 2000, while agricultural investments rose from LE 370 million in 1982 to about LE 8 billion in 2000.

Besides, cultivated area in Egypt increased from 6.2 million feddans in 1982 to about 8 million feddans in 2000. About 277,000 feddans of new and reclaimed lands were distributed to young graduates. So far, about 66,000 young graduates benefited from this project.

Agricultural production growth rate rose to about 2.6% per annum during the 1980’s and about 3.4% per annum in the 1990’s.

Agricultrual development in Egypt up to 2017 aims at increasing annual growth rate of agricultural production to 4.1%, providing new job opportunities, improving the standard of living and the income of the farmers and achieving food security.

Our strategy for the coming phase focuses on rationalizing the use of irrigation water, protecting environment, supporting agricultural institutions in the fields of researches, especially in biotechnology, genetic engineering, extension services, marketing and agricultural cooperation, as well as supporting women’s role and the activities of non-governmental institutions in agricultural development.

Finally, this strategy aims at increasing the agrarian exports from LE 2 billion to LE 5 billion annually through commercial liberalization within the World Trade Organization. We also seek to make optimal use of the potential exports opportunities expected to arise from a number of Egypt’s Free Trade Agreements with the European Union, the sisterly Arab countries in the pursuit of achieving our dream of establishing a common Arab market, as well as with COMESA countries as a nucleus for establishing the African Economic Community by the year 2017.

His Excellency the Chairman of The Governing Council of IFAD,
His Excellency the President of IFAD,
Ladies and Gentlemen,

After reviewing our agricultural achievements through the past two decades since I assumed office, I must now pay homage to IFAD’s efforts to accelerate agricultural development in Egypt, Africa and developing countries in general.

I hope that the new millennium will be an auspicious starting point with all prospects of cooperation in the field of agricultural development and all other fields that contribute to raise the status of man everywhere.

I hope your esteemed council will succeed in realizing our peoples’ aspirations of progress and prosperity.

May Allah guide us to the right way and

May Allah’s Peace and Mercy be upon you.