Geneva, 17 July 2001 – The Secretariat of the Joint United Nations Programme on HIV/AIDS (UNAIDS) and the International Fund for Agricultural Development (IFAD) have concluded a Memorandum of Understanding (MOU) for a cooperation agreement.

''The MOU will provide a clear framework for the complementary roles which can be played by IFAD and UNAIDS,'' said Lennart Båge, President of IFAD. ''Our goals in working together are to alleviate the impact of HIV and AIDS on rural poverty and insecure livelihoods, and to reduce vulnerability to AIDS through sustainable rural development.''

The impact of AIDS on rural communities can be devastating. By striking people in their prime, AIDS will reduce economic activity as well as prevent knowledge and expertise from being passed on to future generations. Rural families hit by the epidemic may be forced to sell productive assets to pay for funerals and health care. Since 1985, AIDS has killed around seven million agricultural workers in the 25 worst-hit African countries.

''As links between urban and rural areas increase, trade and migration are rapidly pushing HIV prevalence rates upwards in rural areas,'' said Peter Piot, Executive Director of UNAIDS. ''Food insecurity is a major cause of vulnerability to HIV. The impact of HIV is felt in reduced agricultural production as well as increasing the fragility of affected households,'' he added.

Areas earmarked for joint effort under the cooperation agreement include IFAD field projects, applying best practice to IFAD's work, exchange of information on AIDS-related IFAD projects, and technical assistance by UNAIDS to IFAD.

By working together, UNAIDS and IFAD can help those whose lives are being devastated by the AIDS epidemic. UNAIDS is a joint United Nations programme that brings together the efforts of its seven cosponsoring organizations to supply high-level leadership, coordination and advocacy in the global AIDS response. It promotes rapid political and social mobilization related to the epidemic, and provides high quality information needed to pursue these objectives.

The Fund's objective is to help overcome rural poverty by empowering smallholder farmers and other rural poor groups, especially women, and help them to raise their output and incomes and work their way out of poverty.

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IFAD is a specialised agency of the United Nations with the specific mandate of combating hunger and poverty in the most disadvantaged regions of the world. Since 1978 IFAD has financed 584 projects in 114 recipient countries and in the West Bank and Gaza for a total commitment of approximately USD 7.2 billion in loans and grants. Through these projects, about 250 million rural people have had a chance to move out of poverty. IFAD makes the greater part of its resources available to low-income countries on very favourable terms, with up to 40 years for repayment and including a grace period of up to ten years and a service charge of 0.75% per year.