“Creating an environment at the national and international levels conducive to generating full and productive employment and decent work for all, and its impact on sustainable development”.

Statement by Lennart Båge President of IFAD delivered on behalf of thethree Rome-base UN agencies, FAO, IFAD and WFP

Mr. President,
Your Excellencies,
Distinguished Delegates,
Ladies and Gentlemen

It is my pleasure to address the ECOSOC High Level Segment today on behalf of the three Rome-based food and agricultural agencies, the Food and Agriculture Organization (FAO), the International Fund for Agricultural Development (IFAD), and the World Food Programme (WFP).
 
Labour is an important – and often the only - asset of poor people. Its full utilization and remuneration are essential for reducing poverty and hunger.  In most developing countries however, this vital resource is underutilized and undervalued.  The International Labour Organization (ILO) reported earlier this year that, despite strong economic growth in 2005, global unemployment reached an historic high, with 191.8 million people without work.  In addition, many more are underemployed or in exploitative jobs, with earnings below subsistence level.  In 2005, only three percent of the extreme working poor were able to rise above dollar-a-day poverty, according to the ILO. 

IFAD, FAO, and the WFP recognise the crucial role of rural employment for the attainment of the goal of full and productive employment. Our agencies fully support the commitment by leaders at the 2005 World Summit “to make the goals of full and productive employment and decent work for all a central objective of [their] relevant national and international policies,” and reaffirm our commitment to employment and decent work, as stated in the Ministerial declaration of the 2003 ECOSOC High Level Segment and in their joint input to the 2004 ECOSOC Coordination Segment.
 
The theme of this year’s High Level Segment focuses on an urgent development concern.  Within this global focus on employment, it is important that adequate consideration be given to agriculture and off-farm rural employment, in light of the fact that three-quarters of those living on less than a dollar a day live in rural areas and depend on agriculture for their livelihoods.  In fact, the world’s 450 million agricultural workers comprise 40 percent of the global labour force and in the poorest countries -- especially those in sub-Saharan Africa -- up to 80 percent of the population derive their livelihood from agriculture. 

 

There is considerable evidence that in many countries agricultural growth has a greater poverty reducing impact than growth in other sectors.  Indeed, the ILO’s World Employment Report for 2004–05, concluded that, “if there is a specific type of sectoral growth that will best directly assist in the achievement of the Millennium Development goals on poverty reduction, it is through the agricultural sector.” 

The lack of productive employment opportunities in rural areas has repercussions far beyond the local community. The interdependency of rural and urban areas means that major issues such as rural-urban migration, food security, and poverty need to be addressed through an integrated approach, with balanced attention to geographically differentiated needs. Full and productive employment and decent work in rural areas are crucial for reducing rural–urban migration.

Broadly speaking, rural employment is characterized by many of the same trends that characterize the overall employment situation in developing countries:   high levels of underemployment, low productivity, low wages, increasing levels of casual labour, employment insecurity, and poor working conditions. These have a specific manifestation in rural settings in developing countries, where 60 percent of rural households are self-employed in smallholder agriculture, and often work below their full employment potential. Rural employment is characterised by high seasonal fluctuations and seasonal migration, health and safety risks and low levels of protection and unionization. Those who are engaged as agricultural workers make up the bulk of the ‘working poor’ with incomes below one dollar a day.

Rural poor people try to cope with these insecurities by relying on diverse sources of income and support. Smallholders supplement their agricultural earnings by hiring themselves out as wage labourers. Poor rural people also supplement their agricultural earnings with off-farm enterprises. Overall, wage employment in rural areas is increasing. In addition to permanent wage labourers, there are growing levels of temporary, seasonal, casual, migrant, and contract work involving both landless and land-poor labourers.

Agricultural labourers are typically among the poorest workers. They are the most vulnerable, seldom receiving the legal and regulatory protection enjoyed by more organised labour in urban areas. The result too often is lower than minimum wages, long working hours and other forms of exploitation, and lack of recourse to enforceable labour rights. The agricultural sector also relies heavily on the labour of women and children. Women alone are responsible for producing, processing, and storing 80 percent of the food consumed in sub-Saharan Africa, and 60 percent of agricultural cultivation in South- and South-East Asia.  Agriculture, which is one of the most hazardous work sectors, is also the largest employer of child labourers. It is important that the poor quality and insecurity of jobs in the agricultural sector be addressed by policies and investments that give self-employed rural poor people the opportunities they need to upgrade their employment.

In light of these circumstances, our agencies endorse the need for concerted and strategic action to improve global employment.  We seek to contribute to efforts to secure productive and decent employment in agriculture and rural economies, in accordance to our mandates and drawing on our expertise and extensive experience, as part of the broader goal of achieving food security and poverty reduction.  Based on this experience, we would like to highlight some key elements that require priority attention. 

1.      Secure access to land and other resources contributes to increased productivity, earnings, and environmental sustainability.   A large majority of the poor rural people, however, have insecure access to land and other natural resources and productive assets. Such insecurity leads to low investment, low productivity, and low levels of employment. FAO, IFAD, and WFP strongly endorse the affirmation by the International Conference on Agrarian Reform and Development, held earlier this year in Brazil, that “wider, secure, and sustainable access to land, water, and other natural resources related to rural peoples’ livelihoods … is essential to hunger and poverty eradication, contributes to sustainable development and should therefore be an inherent part of national policies.”  We encourage countries and development organizations to make this issue a priority and to identify and implement specific actions that will contribute to wider and more secure access to these essential resources, especially for women and vulnerable groups.

2.     Agriculture and rural development policies should be formulated to reduce the vulnerability of agricultural labourers, including both landless and wage-dependent small farmers, and to enhance their capacity to gain productive employment.    FAO, IFAD, and WFP promote policies that support equity in the workplace, eliminate any form of discrimination, and ensure equal employment opportunities for women and men. We recognise the role of women as leaders, partners, and entrepreneurs in agriculture and rural development.  We advocate gender equity in wages and land ownership, consistent with the Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW), with special emphasis on the provisions of Article 14 addressing the needs of rural women.

We are resolute in promoting the effective participation in the labour market of indigenous peoples, minorities, and other vulnerable groups. We also seek to ensure that persons with disabilities have access to decent work and that the capacity of older men and women to work productively is valued, as stipulated in ILO Convention Number 100 on Equal Remuneration.   Finally, FAO, IFAD, and WFP are committed to the elimination of child labour in agriculture, especially in its worst forms, through collaboration with the ILO's International Programme on the Elimination of Child Labour (IPEC).

In light of the fact that education and training are the single most effective variable affecting productivity and poverty, the three agencies pledge their support for the FAO-UNESCO initiative “Education for Rural People,” which is working to overcome the rural-urban gap in education and training for rural people.

3.     Investments that increase land and labour productivity are needed to promote agricultural growth for employment generation and poverty reduction.  Increasing productivity of the smallholder farm is important for increasing farmers’ and workers’ incomes.  This is best achieved through a blend of traditional knowledge and modern pro-poor technology.  Where underemployment is the main problem, an approach that employs labour intensive technology is most appropriate. There is evidence that countries that pursue investments that both improve labour productivity and increase agricultural employment have seen the biggest decreases of poverty over a twenty year period from 1980 – 2001.    The future of rural economies, however,  lies in their ability to diversify and enhance the creation of backward and forward linkages with agricultural production and marketing.  This includes further enhancing the contribution of urban and peri-urban agriculture to food security and employment generation.

It is therefore equally important to support the creation of productive off-farm employment and to promote improved governance of supply chains so that producers can capture the benefits of the added value of their products.  Other effective pro-poor investments include gender-sensitive agricultural research and development geared to the needs of poor producers, rural infrastructure, irrigation and natural resource management, and skill development through formal and vocational education. Our agencies are lending full support to the Comprehensive Africa Agriculture Development Programme (CAADP) of NEPAD, which incorporates these strategies for increasing agricultural labour productivity in sub-Saharan Africa.

Enhancing soil fertility contributes to improving labour productivity and is an especially critical need in Africa. The three agencies wish to draw attention to the measurable and time-bound commitments undertaken last month by Member States of the African Union to accelerate the access of African farmers to fertilizer. 

4.         Creating access to markets and business development services for rural enterprises helps to mobilize entrepreneurship and provides important incentives for adding value to products and enhancing employment prospects.   Poor rural people – relying on their own labour and initiative - have demonstrated profound resourcefulness and innovation. Rural producers need expanded opportunities to harness these entrepreneurial qualities and build on demonstrated successes at the community level. Without appropriate policies, institutions, and services, the barriers to market access and low returns for agricultural production can trap rural producers in poverty. On the other hand, better market integration and incentive systems can promote and upgrade the productivity of smallholders and the informal sector and generate productive employment.

The development of rural financial services is essential to expand the capital base of the poor rural people.  Business support services, including information technology, can enable poor producers to capture greater earnings for their products, as they move along the value chain, and to explore new markets. Value chains that provide better terms for rural producers and entrepreneurs generate productive employment opportunities and can promote better working conditions. Policies that recognize the seasonal nature of rural employment can contribute to improved functioning of rural labour markets.

5.     The institutions of the poor rural people can play vital roles both in securing greater access to productive employment and ensuring decent working conditions.  Ultimately, sustainable agriculture and rural development can only be achieved with the active engagement of the poor rural people in establishing and implementing policies and programmes that serve their interests and enable them to improve their productive potential.  Collective action by the poor rural people through their own organizations, such as agricultural workers’ unions, farmers’ groups and cooperatives, can leverage greater employment security, better working conditions, and a better economic bargaining position.  They can also provide an important link in the search for and adoption of innovative solutions at the local level. To help amplify the voice of the poor rural people, FAO, IFAD, and WFP are actively supporting the capacity development of civil society and organizations of the poor to participate effectively in policy making processes. 

6.     There is an urgent need to expand the recent trend toward increased investment in agriculture and rural development by governments, donors, civil society organizations, and the private sector. 
The growth of decent rural employment cannot be accomplished without allocating more financial resources for rural development.  We call on all donors to increase their development assistance for the rural and the agricultural sectors and on governments for a more balanced sharing of national budgets. FAO, IFAD, and WFP resolve to work more closely with other sister agencies to ensure that the poor receive proper technical advice.  Similarly, we will work to promote the investment and effective use of remittance resources for improving the living conditions of the rural poor.  In Africa, we will continue to support country efforts to reach the NEPAD goal of achieving and sustaining a seven percent annual rate of economic growth.   Through the development of appropriate social safety nets and the promotion of innovative technology, our agencies are committed to helping to decrease the impact of disease, including HIV/AIDS and other diseases, on labour productivity.

Mr. President, the challenge of creating full and productive employment and decent work for all is a difficult one.  The success of our efforts will depend in a very large measure on the extent to which we give sufficient priority to agricultural and rural enterprise development, to the identification of appropriate pro-poor agricultural technologies, and to the reinforcement of rural member-based organisations.  Our agencies pledge full support for the actions outlined in the Ministerial Declaration and, consistent with our respective mandates, stand ready to commit our expertise to new and expanded initiatives to increase rural employment and upgrade rural jobs for poverty reduction and food security. 

Geneva, 5 July 2006