Press release number: IFAD 39/04

Rome, 24 November 2004 - Rural development is the key to meeting the Millennium Development Goal (MDG) on poverty reduction, the President of the International Fund for Agricultural Development, Lennart Båge, said today at the Nordic Policy Seminar in Oslo.

There is an urgent need to do more and to do better if the MDG of halving the proportion of people living in extreme poverty by 2015 is to be achieved, Båge said.

''Unless more attention is given to removing the socio-economic constraints and increasing opportunities for rural poor people, most will not be able to escape poverty by 2015, or long after this target date,'' he said.

The seminar, entitled ''Securing a Better Future for the Rural Poor'', was held in preparation for the 2005 review of global progress towards the MDGs. Norway's Minister of International Development, Hilde F. Johnson, co-hosted the meeting with Båge. Participants also included officials from Denmark , Finland , Iceland and Sweden .

Of the 1.2 billion extremely poor people in the world, 75 per cent live in rural areas. While progress has been made in poverty reduction and some countries are well on the way to reaching the poverty reduction target, many lag behind. The greatest challenge to reaching the target is sub-Saharan Africa . Between 1990 and 2001, the number of people in this region living in extreme poverty increased from 44.6 per cent to 46.4 per cent. Poverty is also on the rise in some parts of Eastern Europe and central Asia .

Participants at the Nordic Policy Seminar agreed that efforts to reduce rural poverty must go beyond improving subsistence agriculture and production. Sustainable rural development requires increased household incomes through small-scale business opportunities and stronger links between farmers and markets. It also requires that rural poor people have access to land and water, reliable financial services, improved health and education.

Discussions at the seminar also focused on empowering rural poor people to benefit from globalization. Delegates recognized that farmers need technical and financial assistance to produce for the global market. They need assistance to improve food safety, product quality and production reliability.

Båge emphasized the need for countries to work together to remove the subsidies, protective tariffs and trade barriers that can work against the rural poor by making it impossible for them to compete in the international marketplace.

Seminar participants also agreed that strengthening rural poor people's organizations is a key aspect of poverty eradication. Local producer groups and trade associations often manage relationships with governments and the private sector on behalf of rural poor people. IFAD supports many such organizations through its work at the community level.

The seminar concluded with Norway , Denmark , Sweden , Finland and Iceland strengthening their commitment to reduce rural poverty as a way of achieving the poverty MDG.

Discussions at the seminar also focused on empowering rural poor people to benefit from globalization. Delegates recognized that farmers need technical and financial assistance to produce for the global market. They need assistance to improve food safety, product quality and production reliability.

Båge emphasized the need for countries to work together to remove the subsidies, protective tariffs and trade barriers that can work against the rural poor by making it impossible for them to compete in the international marketplace.

Seminar participants also agreed that strengthening rural poor people's organizations is a key aspect of poverty eradication. Local producer groups and trade associations often manage relationships with governments and the private sector on behalf of rural poor people. IFAD supports many such organizations through its work at the community level.

The seminar concluded with Norway , Denmark , Sweden , Finland and Iceland strengthening their commitment to reduce rural poverty as a way of achieving the poverty MDG.

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IFAD is a specialized agency of the United Nations dedicated to eradicating rural poverty. More than 200 IFAD-supported rural poverty eradication programmes are currently underway. IFAD has invested about US$ 3 billion in these programmes, which are worth a total of US$ 6.5 billion. At full development, these programmes will help more than 100 million rural poor men and women to achieve better lives for themselves and their families.