The International Day for the Eradication of Poverty is observed every year on October 17

Three quarters of the world’s poor - some 900 million people - live in rural areas and depend on agriculture and related activities for their livelihoods. In 2025, when most of the world’s population may be living in urban areas, it is projected that 60 per cent of the world’s poor will still be rural.

This means that the fight to eradicate poverty must be focused where most poor people live – in rural areas.

There is a growing concern internationally that the key millennium development target of halving the number of people living in extreme poverty by the year 2015 will not be met unless poverty in rural areas is reduced.

In most poor countries, agriculture is the largest employer, job creator and export earner. It represents an important opportunity for economic development and poverty eradication. Yet, global investment in agriculture and rural development has fallen sharply – by almost 50% in the decade between 1988 and 1999. IFAD President, Mr Lennart Båge has pointed out that every dollar of increase in agricultural production generates more than two dollars for the national economy. ''Despite this, the share of ODA that goes to agriculture and the rural sector has been steadily falling, not rising,'' Mr Båge said. ''Today, only 8 percent of developed countries' total ODA goes to agriculture.This has to change if we are to reach the MDG of halving world poverty by 2015''.

If poverty is to be tackled effectively, the rural poor need better access to land, technology, health care, education, markets and economic services, such as credit and savings opportunities.

Since it started operations in 1978, IFAD has invested some USD 8.2 billion in more than 660 rural development projects in 115 countries and territories worldwide. Through low-interest loans and grants, these projects have enabled more than 250 million small farmers, herders, fisherfolk, workers and artisans to take steps to achieve a better life for themselves and their families.