Press release number: IFAD 40/02
Indonesian Agriculture Minister calls for elimination of inequalities that divide the rich and the poor.
Medan, Indonesia. 26th September 2002. The Symposium on the Strategy for Rural Poverty Reduction in Asia and the Pacific organized by the International Fund for Agricultural Development, IFAD and the Ministry of Agriculture, Government of Indonesia, started in Medan this morning with a call by the Minister of Agriculture, Mr. Bungaran Saragih to eliminate inequalities that divide the rich and the poor. Talking to over 150 participants from the region who have gathered in Medan, the Minister emphasized that ''poverty reduction, peace and sustainable economic growth can be achieved by modifying the unequal power relations that contribute to generating poverty''.
Mr. Saragih raised critical questions in regard to persistent poverty in the rural areas and stated that the solution to poverty reduction lies in the empowerment of the rural poor. He cited Prof. G. Myrdel's words 'They are poor because they are poor'. ''In other words, poverty generates the other poverty and it is the international community that can break this vicious circle of poverty'', the Minister added. He further stated that ''The global commitment of reducing by half the proportion of people living in extreme poverty carries the promise of significantly increasing resources and policy support for overall poverty reduction''.
The discussions generated during the Symposium points to one single fact that increased resources are required now to ensure that lack of the same does not lead to further unfortunate global incidents that jeopardize international stability. In addressing the issues that emerged, the Assistant President of IFAD, Mr. Phrang Roy stated that despite the increased vulnerability in a changing world, the rural poor and in particular the rural women, can overcome poverty and plan their own future, provided that they are given a chance. He emphasized that the key to reduce rural poverty in the region encompasses : changing unequal gender relations to increase women's ownership and control of assets, and their effective participation in community management affairs; enhancing the productivity of staple food in less favored areas; reforming property and tenurial rights of various marginalized minorities and indigenous peoples; and expanding the capabilities of the poor and the vulnerable through greater access to self-help, local accumulation, new skills and technologies.
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Poverty hits women hardest. Women have unequal opportunities for access to :
On the role of women Mr. Roy drew attention to the fact that they are prime movers in rural society. He said '' I know of many rural women who have increased their sense of self esteem and dignity as they are able to deal with their community on their terms. This has been possible through their access to small loans and credit''. He gave an example from India '' I met Kusum, a member of a Self Help Group under the Maharashtra Rural Credit Project in India. She never ventured out of her house before joining the SHG; now, she feels comfortable discussing matters directly with the manager of the local bank. Women in this Project are no longer paralysed. Kusum is only one of many clear cases of enhanced human capital - an attribute apart from being instrumental in accelerating the process of development, is intrinsically important in itself''. Addressing a press conference later the same morning, Mr. Roy announced '' The poor are vulnerable to far too many uncertainties. A much larger volume of support that directly helps the rural poor to increase their productivity and incomes is essential. IFAD, as a financing institution depends on the investments made by many other partners, especially the countries themselves, which finance infrastructure, help develop financial and other institutions. We know from our experience that we can reach about 15 million people per year, a total 225 million over the next 15 year period. This would be IFAD's contribution to the Millenium Development Goals (MDGs) which envisage a reduction in the number of poor by about 600 million by 2015''. Over the last three decades, Asia and the Pacific region has experienced an unprecedented economic transformation and a significant reduction in poverty. From 1975 to 1995, poverty in East and South-East Asia was reduced by two thirds; in South Asia, where the economy grew more slowly and population growth had been more rapid, the incidence of poverty declined by one third. Despite this impressive achievement in poverty reduction, the Asia and the Pacific region still accounts for two thirds of the world's 1.2 billion poor. A sustainable reduction in poverty calls for the creation of a pro-poor policy environment, and allocation of greater volume of resources targeted to the poor with greater effectiveness. This needs to be complemented by better partnership among Government, civil society, and other stakeholders so that poor are empowered to take responsibility for their own development. The main objective of the Medan Symposium is to raise awareness among various stakeholders on the importance of rural poverty reduction in Asia and the Pacific. For this purpose, the highlights of IFAD's Assessment of Rural Poverty, and its Regional Strategy for Rural Poverty Reduction in Asia and the Pacific has been shared with major stakeholders from the region and their feedback obtained (www.ifad.org). Symposium participants include senior policy makers from countries of East Asia, South East Asia and the Pacific (China, Mongolia, DPR Korea, Cambodia, Laos, the Philippines, Indonesia, Vietnam, and Papua New Guinea), IFAD-funded project staff, regional and international organizations, civil society, academia, IFAD staff and representatives of other donor agencies. The International Fund for Agricultural Development, IFAD is a UN specialized agency. Since 1978 IFAD has financed 603 projects in 115 recipient countries and in the West Bank and Gaza for a total commitment of approximately USD 7.3 billion in loans and grants. Through these projects, about 250 million rural people have had a chance to move out poverty. IFAD makes the greater part of its resources available to low income countries on very favourable terms.
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