Press release number: IFAD 04/04

Rome, 17 February 2004 – Women farmers struggling to make ends meet, young girls with limited education and unemployed youth are among those who will benefit from a new IFAD-supported project in mountainous northern Algeria.

The USD 29.8 million project will be financed largely by a USD 17.6 million loan from the International Fund for Agricultural Development (IFAD) to the People’s Democratic Republic of Algeria.

The loan agreement was signed today at IFAD headquarters by IFAD President Lennart Båge and His Excellency Dr. Rachid Benaissa, Delegated Minister in Charge of Rural Development of the People’s Democratic Republic of Algeria.

“Mountain areas are among the harshest environments on earth,” said Mr Båge. “Steep slopes and fragile soils often limit agricultural potential and productivity.”

“In line with the Government of Algeria’s poverty reduction strategy, this project will help the region’s poor people develop alternatives to agriculture,” said Mr Båge.

Because of the challenging living conditions facing most mountain populations, they tend to be among the poorest of the world’s rural poor people. Politically and physically isolated from centres of power and commerce, they have little voice in the policies and decisions that influence their lives or authority over the resources they rely upon.

The project’s home base, north of the Wilaya of M’Sila, suffers precisely from such isolation. Inadequate socio-economic services, poor infrastructure and the mismanagement of land and water resources are the main causes of poverty in the area. Women, uneducated young girls and unskilled young men are particularly affected by the lack of opportunities to diversify their activities and sources of income.

“The project has three main objectives,” said Mounif Nourallah, IFAD’s Country Programme Manager for Algeria. “First, it promotes a participatory approach by starting at a grassroots level and encouraging people in the villages to identify their needs, priorities and problems, and then shape their own vision of the future through village development plans.” The project will be implemented over seven years.

“Second, the project will help poor people develop alternative sources of income by establishing accessible rural financial services and promoting the development of rural micro-enterprises,” said Mr Nourallah.

Non-agricultural activities not only diversify sources of income, but also help alleviate pressure on natural resources and promote better management of the environment. The third component of the project will specifically focus on limiting soil erosion, rehabilitating natural soil cover, and preserving water resources.

With this project, IFAD will have financed 5 projects in Algeria, totaling USD 65.5 million.

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IFAD is a specialized agency of the United Nations dedicated to eradicating rural poverty in developing countries. Since 1978, IFAD has financed 653 projects and programmes in 115 countries and territories for a total commitment of approximately USD 8.1 billion. Through these projects and programmes, about 250 million rural people have been supported in their efforts to overcome poverty.