Excellencies,
colleagues,
ladies and gentlemen,

Introductory remarks

Photo gallery

Let me say how delighted I am to have this opportunity to meet you this evening, and to share with you how IFAD is fairing in our mission to eradicate poverty. 

This is what I hope will be the first of several meetings with you, our Member States.  The majority of our Member State Permanent Representatives reside in Rome.  However, a good number (total of 13), live in Brussels.  And apart from the occasion of our Annual Governing Council meetings, there is little or no contact after the presentation of letters of accreditation. 

I held an event – a lunch – in Rome last month, for the Rome-based Permanent Representatives of IFAD Member States. As I said then, I fully appreciate the need to keep you informed of what we are doing so that you can continue to be IFAD’s advocates in your capitals.  

So this dinner is important to me.

One year on

Since I took up my position as President of IFAD, we’ve enjoyed an action-packed 12 months. And we’ve come a long way. You’ve entrusted us with a larger programme of work, and together we’ve laid the foundations to increase it still further. We’ve also improved the quality of our activities and boosted our results on the ground. We’ve forged ahead with our change and reform programme, and we’ve opened new country offices around the world.

Before I go any further, I would first like to take this opportunity to bring you all up to date on our progress since the Governing Council in February.

Haiti

First – Haiti. In an immediate response to the devastating earthquake in January, we rushed through a support programmeworth US$3.3 million (out of which US$2.5 million is a grant from IFAD) to boost food security and create jobs for some 60,000 people. And I hope to visit Haiti myself during the summer to see the ongoing work.

We have also moved swiftly ahead with proposals to provide relief for Haiti’s debt to IFAD. In line with the call for the forgiveness of the country’s external debt, and in response to Member States’ commitment to support IFAD in providing permanent debt forgiveness to Haiti, the Executive Board last month agreed a plan to set up an account to receive resources from external donors for paying off Haiti’s debt. This is currently estimated at US$58 million and is expected to reach US$78 million over the life of active loans.

Country presence

Second – country presence. Today, we have 25 operational country presence offices, an increase of 9 over the number in 2008.  And by the end of 2010, our plan is to increase the number to 30.

We have already seen that building our presence in-country is driving the improvement of results on the ground. It’s also facilitating the change-over to IFAD’s direct supervision. Last year saw our directly supervised portfolio increase substantially to 186 – well over 80 per cent of our ongoing programmes and projects.

Strategic Framework

Third – IFAD’s new Strategic Framework for 2011-2014. Developing this document is a top priority, as it will provide a road map to guide us well into the Ninth Replenishment period. It will cover three main issues:

• IFAD’s place in the post L’Aquila era and its impacts on agriculture and food security.
• our medium- to long-term resource requirements.
• the new paradigm that sees smallholder farming first and foremost as a business, and of the imperative of building a thriving rural economy.

The new Strategic Framework will also review what we do and how we do it. And it will factor in the major impacts of climate change, as well as the need to actively engage the private sector in rural development. The Strategic Framework will be presented to the December session of the Executive Board.

IFAD 8

Another area on which you will wish to be updated is the Eighth Replenishment. I’m glad to report that we’re on track to increase our operational programme by 50 per cent over the Seventh Replenishment, and to deliver a programme of work of US$3 billion over three years.

Let me assure you that we can do it. In 2008, we financed 30 programmes and projects in 29 countries for a total of US$566 million. In 2009, the respective figures were 33 programmes and projects in 30 countries for US$677 million. Our projections for 2010 are up to 43 programmes and projects in 39 countries estimated at up to US$1,010 million. Including cofinancing, we expect to mobilize about US$7 billion for investment in smallholder development in 2010 to 2012.

At the same time, we will be rigorous in keeping our administrative expenses down. On a yearly basis through the Eighth Replenishment period, our programme of work is projected to increase by 20 per cent, while annual expenses grow by just 4 per cent.

Progress on reform

We’ve also forged ahead in delivering IFAD’s reform agenda.

The keystone of our reform agenda is the corporate Medium-Term Plan, covering the period of the Eighth Replenishment.

The Medium-Term Plan – a first for IFAD – is based on three pillars:  (i) the programme of work, (ii) the strategic workforce plan and (iii) the zero-based budget. It sets out the steps we need to take to sharpen our focus on programme operations and to ensure that our resources make the maximum impact on rural poverty and food insecurity.  The MTP is expected to be discussed with the Executive Board in September 2010.

President’s travels and IFAD’s profile

Travel was a big part of my first twelve months as President, taking me to some 20 countries in the Americas, Africa, Asia and Europe.  And I continue to travel as I enter my second year – indeed, I’m just back from the regional World Economic Forum on Africa in Dar es Salaam.

Throughout the world, I will continue to be a voice advocating for smallholder farmers, fishers, pastoralists and other poor rural people.

And I will continue to use the opportunity of high-level forums to put agriculture and food security back where it belongs – at the top of the global agenda.  We cannot let it slip.

Our vision

You are familiar with the message that I take to all the people and places that I visit:

• farming – at whatever scale – is a business, and smallholder farmers must be treated as entrepreneurs.
• businesses need clear linkages along the value chain from production to processing, marketing, and ultimately to consumption.

Through the programmes and projects that we support, we are strengthening the ability of smallholder farmers and other rural workers to engage and compete in the rural business environment, at the same time as we work with governments and the private sector to nurture the overall rural environment – to invest in the rural economy and forge strong links with the urban economy.

While creating a vibrant rural economy, we must also invest in young rural people today, giving them the skills and confidence they need to run profitable farms, start businesses and become the community leaders of tomorrow.

But for this to happen and for this to be sustainable, governments and political leaders must champion and invest the political will and the political capital.  Financial assistance from the international community is important – and in that respect, the ongoing support we receive from the European Commission in the form of Supplementary Funds, is immensely valuable. But committed and functioning governments are also key.

IFAD 9

As we embark on the road to IFAD 9, our focus will remain on strengthening food security and strengthening the commercial and economic viability of smallholder farmers.

We will also promote new operational models, including public-private partnerships and public agricultural services that are provided by farmers’ organizations. Again, the work that we do in partnership with the EC, to strengthen the capacity of farmers organizations in Africa, is relevant here.

Conclusion

Before I close, let me reiterate my strong personal commitment to improving IFAD’s communication with our members. My letter to all of you between board sessions is a part of this. Tonight’s dinner is another, which I very much hope to repeat.

In the meantime, let me say again what a great pleasure it is for me to spend this evening with you. And thank you for your continuing support.

Thank you.

Crowne Plaza Hotel
Brussels 11 May 2010