Enabling poor rural people
to overcome poverty



Rome, 5-6 December 2001

The following project/programme proposals were approved by the Seventy-Fourth Session of the Executive Board:


Africa I (Western and Central Africa)

Benin

The Executive Board approved a loan of SDR7.8 million for the above programme. In doing so, the Board re-emphasized the need to lay the ground for an environmentally sound use of fisheries resources. It also stressed that fisherfolk households should be assisted to diversify their livelihood strategies through support to both fisheries-related and non-fisheries income-generating activities. The programme will provide information, training and technical backstopping on alternative income-generating activities in agriculture, marketing and small-scale rural enterprises. The Executive Board proposed that efforts be made to speed up implementation during the pilot phase to ensure immediate impact on the livelihoods of fisherfolk communities. The Board was informed that the pilot phase is critical for the success of the programme. As such, it has been thoroughly assessed, taking into consideration the necessary beneficiary participation and ownership and the need to scale up the sustainable livelihoods approach introduced by a regional project financed by the Department for International Development (DFID) in the artisanal fisheries sub-sector.

Ghana

In approving a loan of SDR9.75million, the Executive Board concurred with the programme strategy, objectives and approach. The Board enquired about the financing of the programme since the Government of Ghana is expected to provide USD5.7million from its regular national budget and will endeavour to secure USD38.2million from its Common Fund to Support Local Government as well as from donors. It was explained that the programme is aimed at operationalizing decentralization policies and systems in Ghana. In this regard, IFAD is playing a catalytic role by making the system more accountable downward to the communities and to the rural poor. The programme will support the decentralized planning process whereby substantial financial contributions will be mainstreamed in the district annual work plans and budgets (AWP/Bs). The level of resources planned to be committed through the district AWP/B is already substantial; it was noted that the programme estimates in this regard are rather conservative. Moreover, the programme will most likely benefit from substantial contributions as a result of the Debt Initiative for Heavily Indebted Poor Countries (HIPC) and the Poverty Reduction Strategy (PRS) process already under way. The Board was also informed that the institutional mechanisms of the programme include a programme review and resource coordination committee to enable all development partners to harmonize their interventions. It was also explained that the level of IFAD contributions will be adjusted to adapt to the level of the other financial contributions, and that IFAD’s approval of the AWP/Bs would be subject to the Government’s securing adequate levels of resources.

 

Africa II (Eastern and Southern Africa)

Ethiopia

In approving a loan of SDR20.15million for the above programme, the Executive Board emphasized the need to ensure effective coordination of programme implementation. In addition, it pointed out that emerging public policies outside rural finance should be monitored with a view to enhancing the long-term profitability and sustainability of investments made by poor rural households.

Rwanda

The Executive Board unanimously supported the above project and approved a loan of SDR9.4million. The Umutara Province is one of the safest provinces in Rwanda. It has been a major recipient of ‘old case-load’ returnees (those who left the country in the late 1950s) who, according to the Arusha peace accord, had no property rights on their previous land and dwellings. This proposed twin project will greatly contribute to establishing sustainable livelihood systems for the resettled population in the province and will further reinforce the country’s overall social and economic security.

Swaziland

The Executive Board approved a loan of SDR11.9million for the above project. The Board commended the project’s overall objective of reducing poverty and achieving sustained improvement in the standard of living of the smallholder population in the Lower Usuthu Basin. It also expressed satisfaction with the potential role of women and other vulnerable groups in the project design and commended the planned support for an appropriate policy and legal framework to enhance beneficiary access to land, water and other productive assets. In light of the environmental implications of the project, the Board reiterated its satisfaction with the importance accorded to the finalization of the resettlement action plan and the comprehensive mitigation plan, and to the planned establishment of nurseries to conserve endangered and rare plant species. However, in approving the loan, the Board emphasized the need for the early finalization of the financing package of the project, especially in view of the participation of a number of cofinanciers. In addition, in view of the generally poor soils in the project area, Executive Board members stressed the need to ensure that technical assistance will be provided to beneficiaries in order to sustain crop production.

United Republic of Tanzania

The Executive Board approved a loan of SDR12.95million for the above programme. The Board appreciated that this marketing programme has been identified as the most important and integral part of the PRS process and addresses the key challenges in rural development in the United Republic of Tanzania. The Board agreed that demand responsiveness should be the overall approach, as envisaged under the programme, through empowering producer groups, small traders and processors to be lead agents in marketing development processes. While the overall approach of the programme is correct, the Board expressed its concern about the financing gap. In this respect, an assurance was given that negotiations for filling the gap with relevant cofinanciers, including the Danish International Development Assistance (DANIDA) and the Swiss Agency for Development and Cooperation (SDC), will be pursued so that this issue can be resolved as quickly as possible. It was also agreed that in light of the suggestions made by the Board, the programme will give necessary emphasis to agricultural extension so that it can play a relevant and constructive role in marketing development in the United Republic of Tanzania.

 

Asia and the Pacific

Nepal

The Executive Board approved a loan of SDR15.6million and a grant of SDR290000 for the above project. In commending the project design, the Board raised two queries. In response, it was explained that the definition of the second-to-third phase triggers of the flexible lending mechanism (FLM) would best be finalized at the time of the first-phase review, which is when the second phase of the project will be designed in detail. It was further explained that the projected pace of demand-driven project implementation was contingent on the pace of social mobilization and institution-building under the project, and hence slightly slower than under conventional projects.

Philippines

The Executive Board reviewed the above project and approved a loan of SDR11.6million on highly concessional terms. Several Board Directors emphasized the timeliness of this initiative and the necessity for projects such as this one in conflict-affected areas. The project’s role of reducing the socio-economic vulnerability of the target group in the project area and enhancing their food security was commended.

Viet Nam

The Executive Board approved a loan of SDR16.4million for the above project. The Board requested clarification of how the project would deal with the issue of marketing. It was explained that marketing indeed plays a strategic role in the promotion of diversified income-generating microenterprises and that a specific microfinance and microenterprise unit will be established under the Viet Nam Bank for Agriculture and Rural Development for that purpose. This unit will be responsible, inter alia, for carrying out: (i)market surveys; (ii)development of market outlets; and (iii)support for the establishment of brand names of upland products.

 

Latin America and the Caribbean

El Salvador

The Executive Board reviewed the above programme, which focuses on reconstruction and rural modernization of the areas hit by the earthquakes that affected El Salvador in January and February2001. The Directors commended this reconstruction initiative and approved a loan of SDR15.65million without any additional comments.

Panama

The Executive Board approved a loan for SDR19.4million for the above-mentioned project.

 

Near East and North Africa

Algeria

The Executive Board approved a loan of SDR9.7million for the above project, without raising any specific issues or comments.

In addition, the following President’s Memorandum was approved by the Seventy-Fourth Session of the Executive Board:

Zambia: Forest Resource Management Project (Loan 520-ZM): Extension of Loan Effectiveness
EB 2001/74/R.35

The Executive Board approved the extension of the effectiveness date of Loan 520-ZM for the Forest Resource Management Project to 30 September 2002 to allow sufficient time for the fulfilment of conditions for loan effectiveness.

The following grant proposals were approved by the Seventy-Fourth Session of the Executive Board:

Grant to the Global Mechanism of the United Nations Convention to Combat Desertification in Those Countries Experiencing Serious Drought and/or Desertification, Particularly in Africa (UNCCD) to Support the Development and Implementation of Action Programmes and Related Initiatives
EB 2001/74/R.25

The Executive Board approved a grant in the amount of USD1.25million.
Technical Assistance Grant for Agricultural Research and Training by a Non-CGIAR-Supported International Centre
EB 2001/74/R.34

African Network for the Development of Horticulture (RADHORT): Programme for Sustainable Vegetable Production and Marketing in West Africa

The Executive Board approved a grant in the amount of USD1.25million.

Hot links

Read more