Excellencies, Ministers from African countries and Brazil; Ambassadors and Representatives of international institutions; distinguished delegates; ladies and gentlemen. It is with great pleasure that I stand here today on behalf of Kanayo Nwanze, the President of the International Fund for Agricultural Development, IFAD, before such a large gathering of distinguished guests and key decision makers on the occasion of the Brazil-Africa dialogue on food security, hunger and rural development. Our world – from the fields of Brazil and Burundi to the halls of government – has become global. This change is allowing us to be connected at all times particularly because of technological innovation. This new environment has its consequences, both positive and negative. The meeting today is an opportunity to take advantage of this globalization and is yet another testimony that we can all work together to create a conducive environment for agriculture-led economic growth.

We gather here today at very challenging times. The financial crises and the global economic slowdown of 2008 and 2009 are still felt deeply amongst us, especially by smallholder farmers in Africa and Brazil who produce around 70 per cent of the food consumed in those regions. The food crisis and global recession have negatively impacted the rural population. This was further exacerbated by climate change and various natural disasters around the globe. The Haiti earthquake, followed by more earthquakes in China and Chile, have made us ever more conscious of our need to create policies that directly address food security.

Sub-Saharan Africa was hard hit by the global economic crisis, with regional GDP growth at just 1.1 percent last year, according to the World Bank. This year, growth is expected to reach 4.8 percent in the region, but the strength of the recovery will largely depend on demand from key export markets and the ability of African countries to be competitive in those markets.

Meanwhile, yet another new crisis is looming in Europe, where the traditional donors to African countries have historically high government deficits. The recent trend of downgrades in Greek, Portuguese and Spanish Government bonds is equally disturbing. The problem can easily spread to other European countries, such as Ireland and Italy. While at the same time, the Eurozone is also under severe pressure, as are Japan and the UK. Clearly, the global economic situation we face today is totally different from what we have experienced before, highlighting the ever-increasing need for all of us to collaborate. This South-South Cooperation Meeting, therefore, could not have come at a better time. And by allowing the dialogue to focus on food security and rural development, we have a unique opportunity to create lasting mechanisms to end poverty worldwide.

Introducing South-South cooperation
The Accra Plan of Action states that South-South cooperation in the field of development is to ensure the principle of non-interference in countries' internal affairs, equality among developing partners and the respect for their independence, their national sovereignty, the diversity of cultures, local identity and context. It plays an important role in international cooperation for development and constitutes an invaluable complement to North-South cooperation.

A recent review by the United Nations on South-South cooperation concluded that (a) aid is only one factor among many others in the development landscape and (b) OECD countries no longer stand alone when it comes to financing poor countries with non-OECD donors such as China, India, Brazil, and the Gulf countries emerging to play key roles in increasing the volume of development assistance.

In this context, and under the form of economic and technical cooperation among developing countries and middle-income countries, South-South trade has intensified, and in 2006 it represented 46% of the total exports of developing countries. In terms of volume, foreign direct investments in developing countries increased by 17% in 2005. This trend is now being sustained and provides opportunities for both Brazil and Africa.

Brazil, along with China and India, is leading this trend as its trade volume with Africa rose from USD5 billion in 2002 to USD19.9 billion in 2007.

Part of the reason for this positive trend is the fact that the infrastructure sector has become a priority for development. We must not forget that without them, trade – and rural development - is difficult if not impossible. In the end, water, energy, roads, ports and telecommunication are essential elements to development and growth. Further, without infrastructure of any magnitude - from small feeder roads to large ports and highways, water for irrigation, energy for automation and telecommunication for access to market information - food security will not be achieved.

Building South-South Cooperation
As emphasized by the Chinese Alternate governor to the International Fund for Agricultural Development, IFAD, during the thirty-third session of the Fund’s Governing Council held in February 2010, developing countries have accumulated abundant experience in rural poverty reduction through their long-term anti-poverty endeavours. It has been proven by practice that it is easier for countries with similar stages, levels and philosophies of development to share experiences among themselves. South-South cooperation is undoubtedly a key mechanism for partnerships among developing countries.

South-South dialogue is a two-way process. Only by allowing for the fluid interchange of ideas, technologies and goods between the regions will we truly achieve sustainable results. At the same time, building on the experiences of policies that enable rural economic development, is an essential element in the successful transfer of know-how between regions.

Brazil offers technological know-how, strong grassroots organization, proven methods to bring products to market and well-planned resource-management practices. It has also become a major exporter in recent years, providing an exciting possibility of increased trade between the two regions.

On the technological front, the experience of institutions such as EMBRAPA provides a unique opportunity to transfer the latest agricultural technology, including better seeds, higher yield crops, enhanced planting techniques and overall improved farming systems. This will further enable rural farm operations in Africa to become true business ventures, generating income and creating wealth for poverty eradication.

On the other hand, Africa offers a great market for Brazilian products and technology; seeds, tools, machinery, financial resources, and the knowledge base that intensive agricultural research creates. At the same time the potential for mutual trading partnerships is enormous.

More importantly, Africa has a substantial potential for growth and increased external trade. The continent is blessed with abundant land and natural resources; a young labour force and close proximity to the European markets. The continent also enjoys a rapidly expanding regional market – much like Brazil – but lacks the necessary tools to bring products to market in an efficient and cost-effective way.

This dialogue should therefore concentrate on building the necessary mechanisms for development, in which countries from across the Southern Hemisphere come together to share their successes, failures, challenges and strengths.

We believe that local governments, ministries, grassroots organizations, as well as businesses and individuals from the private sector – especially the small-holder farmers themselves – need to be key stakeholders and drivers of this dialogue.

IFAD’s contribution to the dialogue
Multilateral cooperation in development, especially in the area of governance, is changing in a fundamental way, with the international community emphasizing sustainable smallholder agricultural and rural productivity, domestic consumption based growth, transfer of know-how over transfer of financial resources, country ownership and south-south cooperation.

A declaration drafted at the recent New Delhi Conference between Brazil, China, India and South Africa, which IFAD co-sponsored, is broadly consistent with IFAD’s policies and priorities. The declaration emphasizes the rural transformation of emerging economies as being critical to the successful implementation of the South-South cooperation agenda.

During the conference the Minister of Agrarian Development of Brazil, Mr. Cassel, also emphasized that the solution to the three main challenges facing the world (food security, energy security and environmental security) and the G8 failures to properly address them, is rooted in focussing our efforts in rural areas. To this end, the agreement in New Delhi indicates the way forward, in which the G20 needs to fully embrace the necessity of tackling rural development issues.

IFAD has engaged in this process with many activities that are designed to support south-south cooperation and knowledge management. These activities have been widely differentiated in terms of context, initiators, participants, approach, nature and content, compliance with the Development Assistance Committee (DAC) principles, funding sources and follow-up.

For over thirty-three years, IFAD has been helping poor rural people to overcome poverty by supporting small-scale agricultural production. Its knowledge base includes extensive experience in supporting technological innovation, organization building, and the creation of financial and marketing models that allow for sustainable development. This unique perspective gives IFAD the opportunity to serve as a key partner, mediator and facilitator for South-South Cooperation.

Partnership at all levels is the key to ensuring successful and tangible results. By creating mechanisms for development, trade and knowledge sharing, IFAD is committed to finding sustainable solutions to the common problems facing the rural population of Brazil and Africa.

Together, we have to be innovative and think outside the box, leveraging each others’ strengths in our effort to eradicate poverty. Can IFAD, for example, assist in channelling financial and technical resources from Brazil to Africa? Can we assist in reaching out to the poorest rural regions to help the smallholder farmers to not only become self-sufficient but also to grow as successful business people? Can we assist in creating value chain propositions that will help the rural population access markets?

We look forward to participating in the various discussions of this meeting, which we are certain will create positive outcomes. And we hope that this dialogue will generate key action plans that we can begin to implement immediately to foster sustainable economic growth.

Thank you very much for your kind attention.

IFAD Vice President, Yukiko Omura, addressed 50 African ministers and the Brazilian government in the Brazil-Africa Dialogue on Food Security, Fighting Hunger and Rural Development held this week in Brasilia.