Madam Secretary,
Excellencies,
Colleagues,
Ladies and Gentlemen,

I would like to thank the Government of the United States America, and particularly Secretary Clinton, for the kind invitation to be here.
The US government’s recognition that food security is the leading cause of our time, along with Secretary Clinton’s words today on the importance of diasporas to development, gives renewed hope to all of us working to eliminate poverty and hunger.

The International Fund for Agricultural Development is one of three Rome-based United Nations agencies. It is distinct in being an international financial institution focusing exclusively on smallholder farmers and poor people who live in the rural areas of developing countries.

IFAD attaches great importance to our work in post-conflict countries and fragile states where intolerable rural conditions are often the root cause of migration. We have seen that market-oriented agriculture has tremendous power to generate incomes and economic growth. And we know that when people are able to improve their standard of living, when young people can see a future for themselves where they live, most will choose to build their lives at home.

Together, IFAD and the U.S. Department of State believe that diaspora investment in agriculture can help bridge the period between the end of conflict and fragility, and the beginning of development. And together we stand ready to help the diaspora accomplish this vital goal. To that end, IFAD is proud to be a founding member of IdEA.

Migration and the role of diaspora in development

More than 215 million people around the globe live outside of the countries they call home, including myself. Some of us are lucky to have left for better opportunities; others are forced to leave to escape conflict, hunger or destitution. Whatever the reason, we all have a profound connection to our families, friends and communities back home.

The clearest expression of that connection is the 325 billion dollars in remittances that diasporas send home to developing nations every year.

These remittances provide the food, clothing and shelter for millions of families around the world.

The depth of the connection is also seen in the quick responses from diasporas to emergencies as we saw after the earthquake in Haiti last year, the massive flooding in Pakistan, and most recently after the unrest in Egypt and Tunisia. When there is a greater need at home, diasporas send home significantly more remittances to help their families.

But the role of the diaspora goes far beyond meeting short-term needs. Diasporas also play a vital role in long-term development.

Agriculture and investment

IFAD strongly believes that investment in agriculture is the most effective and efficient way to spur development, particularly in post-conflict countries and fragile states.

Growth generated by agriculture is at least twice as effective in reducing poverty as growth in any other area. It provides basic necessities, employment, and ultimately creates a stable base for broader economic growth.

Even relatively small investments in rural agriculture today will reap economic, social and political benefits tomorrow.

Experience in diaspora investment in agriculture

Despite the increasing attention that has been paid to the volume of remittances, some people still question whether diasporas can make an impact on development. 

At IFAD, we are certain that diasporas already do have a tremendous impact on their home communities. In addition, while foreign investors avoid fragile communities, diaspora investors are not only better informed about local opportunities, they are willing to invest when others won’t.
The real question is: how can we help diasporas leverage their hard-earned funds? The answer can be found in the new initiative, being launched here today by the U.S. Department of State and IFAD.

The Diaspora Investment in Agriculture initiative will work with those who wish to invest in agricultural projects in their home communities. The initiative will focus on post-conflict countries and fragile states with a collective diaspora of almost 20 million people.

Diaspora communities from developing nations save a total of $400 billion every year. Many would like to support their home countries through investment. Money is not the problem. Good opportunities and clear mechanisms for making those investments are what is required.

DIA will help identify opportunities and models for sustainable investment. It will build the capacity of individual investors, diaspora organizations and those implementing projects on the ground. And it will encourage lasting partnerships that achieve financial returns for investors, while fostering stability and opportunity.

At IFAD, we already have many examples of what works. In Italy, for instance, the Filipino Women’s Council and Atikha are helping Filipino women train each other in setting, and achieving basic financial goals. The women pool their resources and invest in agricultural cooperatives in their home communities. As a result, they have seen their investments grow, while also creating jobs in their home communities.

Some of the most inspirational examples of diaspora investment come from my colleague President Moreno’s institution. The Inter-American Development Bank’s “Mujeres de nopal” project for example, illustrates how diasporas can be a unique market for traditional goods, as well as a source of funds.

Experience clearly illustrates that investment across borders -great or small- can provide essential foods, create jobs, and even open-up lucrative export opportunities as well. Through the DIA initiative, we will build upon our existing track record to address the specific needs of post-conflict countries and fragile states.

Closing

Before I close, I would like you to consider the following: Over the next five years, diasporas throughout the world will send home more than 1.5 trillion dollars.

If together we can encourage the diaspora to invest a fraction of this money in rural agriculture, it will contribute significantly to creating jobs, enhancing food security and fostering stability in countries emerging from strife.

Last week, Secretary Clinton challenged the UN’s Rome-based-agencies to jointly deepen our commitment to long-term investment in agriculture and food security world-wide.

I would like to extend that challenge to those here today: let us deepen our commitment to long-term investment in agriculture and food security. Let us mobilize our expertise, our resources, and our dedication to invest in our home communities. Let us turn our backs on conflict and fragility and together lay the foundations of prosperity.

Let us create a world where migration is a matter of choice, not of necessity.

Thank you.

Washington D.C., 17 May 2011