Press release number: IFAD 20/05

Rome, 18 February 2005 - For developing countries in both the Asia and the Pacific region and in the Western and Central Africa region to reach the Millennium Development Goals (MDGs) investment is needed in agriculture because farming and related activities employ the majority of rural poor people.

But the two regions face unique challenges, agreed participants at a roundtable entitled “Achieving the Millennium Development Goal of Halving Poverty by 2015: Sharing Experiences between Asia and the Pacific and Western and Central Africa.” The discussion was held today at the Palazzo dei Congressi in Rome during the 28th session of the IFAD Governing Council meeting and chaired by Rene C. Villa, minister of land reform in the Philippines.

Some countries in Asia have already reached the first MDG of halving poverty by 2015, notably in East and South-east, while growth needs to accelerate in south Asia. But rising inequality exists as growth based on rural and agricultural development shifts to growth in urban areas. “This will result in a far weaker impact on poverty reduction,” said Ganesh Thapa, regional economist for IFAD’s Asia and the Pacific Division.

According to Professor Raghav Gaiha of the University of Delhi, “careful attention must also be paid to strengthening voice and accountability mechanisms by, for example, facilitating access to official records, reinforcing producer groups and encouraging women’s associations, and to creating an ethos of fairness and reciprocity”. Gaiha further stated that “given the pervasiveness of coordination failures, partnerships need to be forged between public and private agencies, for instance, between governments and markets on the one hand and between NGOs and markets on the other”.

In Africa, many countries will have difficulty reaching the MDGs. While efforts have been successful in increasing food production, improving marketing and in other key areas, certain weaknesses weigh heavily on Africa’s ability to make strides in economic growth.

“Policies and institutions are needed that truly address growth and poverty reduction,” says IFAD’s director of Western and Central Africa Division Mohamed Béavogui. “And unless massive investment is made in infrastructure, including better roads, electricity and water, African nations will not have the tools they need to reach the MDGs”, he said. For instance transportation costs account for 60 per cent of the total price of cassava in Central African nations.

The countries in Asia that have already reached the first MDG include China, Indonesia and Viet Nam. Several other nations could also reach that goal if efforts are made to achieve moderate increases in growth coupled with a reduction of income inequality.

In Africa, another major constraint is the impact of conflict. Without peace, it will be difficult for African nations to put in place the types of efforts that could translate into strong, substantial growth.

In summarizing, the participants underlined the importance of investing in infrastructure, ensuring peace and stability, empowering rural poor people and their own institutions, and encouraging national and regional markets through the right policies. One of the most important lessons from Asia was the need to develop policies and institutions that are appropriate for the unique reality each region faces.

“In South-east Asia, countries have developed their own path of development,” reminded Béavogui. They persevered and now they are reaping the benefits.

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IFAD is a specialized agency of the United Nations dedicated to eradicating rural poverty in developing countries. Seventy-five per cent of the world's poorest people - 900 million women, children and men - live in rural areas and depend on agriculture and related activities for their livelihoods. Through low-interest loans and grants, IFAD works with governments to develop and finance programmes and projects that enable rural poor people to overcome poverty themselves.

There are close to 200 ongoing IFAD-supported rural poverty eradication programmes and projects, totaling US$ 6.5 billion. IFAD has invested about US$ 3 billion in these initiatives. Co-financing has been provided by governments, beneficiaries, multilateral and bilateral donors and other partners. At full development, these programmes will help more than 100 million rural poor women and men to achieve better lives for themselves and their families. Since starting operations in 1978, IFAD has invested US$ 8.5 billion in 676 projects and programmes that have helped more than 250 million poor rural men and women achieve better lives for themselves and their families.