Press release number: IFAD 21/05

Delegates discussed links between rural development and the MDGs; President Lennart Båge re-elected

Rome, Friday, 18 February 2005 - The Governing Council of the International Fund for Agricultural Development (IFAD) ended its 28th session today. The Council approved all items on its agenda – including the membership application of the Republic of Kiribati, an island chain in the Pacific Ocean – and hosted many insightful discussions about the importance of rural development to achieving the Millennium Development Goals (MDGs).

The Governing Council is IFAD’s highest decision-making authority and consists of delegates from the organization’s 164 member states. During this year’s meeting, the Council approved US$ 53.3 million to finance the organization’s administration, as well as US$ 4.7 million to finance IFAD’s independent Office of Evaluation.

“Make Rural Poverty History” was the theme of the meeting. In his message to the delegation, UN Secretary-General Kofi Annan emphasized that 75 per cent of the world’s poorest people live in rural areas of the developing world and depend on agriculture-related activities for their survival.

Annan also stressed the importance of rural poverty eradication to meeting the MDGs.

In his opening address, IFAD President Lennart Båge reiterated this urgent need by warning that without increased investments in rural areas, “the world will continue to be off-track to meet the MDGs.”

“In the past decade, the development community has not placed a great deal of attention on rural development,” he said. “The time is ripe to redress the balance.”

In his keynote address, Belgian Prime Minister Guy Verhofstadt told delegates that the world must fulfil its official development assistance commitments. Thirty-five years ago, industrialized countries pledged to allocate 0.7 percent of their GDP to development cooperation.

To date, only five countries have achieved this target, he said.

''It is my firm intention to put the Millennium Development Goals and in particular, poverty in Africa, among the top priorities of the new strategic agenda of Europe and the United States.''

Ugandan President Yoweri Kaguta Museveni delivered the meeting’s inaugural address and stressed the importance of an integrated approach to agricultural development.

“We need to realize that the elimination of hunger, famine and poverty depends not only on agricultural production, but processing and marketing,” Museveni said.

In many developing countries, farmers’ organizations are successfully linking small producers with external partners that help them add value to their products or access efficient markets. In an IFAD-sponsored side event prior to the Council meeting, representatives from farmers’ and rural producers’ organizations from around the world met to exchange experiences and establish an annual Farmers’ Forum to coincide with future Council meetings.

Another side event highlighted the importance of linking indigenous peoples’ needs and perspectives with development policies and practices, and featured representatives from the United Nations and other organizations working on indigenous issues.

Indigenous peoples constitute about one third of the world’s poorest people and live in more than 70 countries.

One of the most notable events of this year’s meeting was the re-election of Lennart Båge. A Swedish national, Båge has served as the President of IFAD since April 2001. Båge will begin his second, four-year term on 1 April 2005.

In his opening statement to the delegation, Båge highlighted IFAD’s progress over the past four years and described his plans to further strengthen the institution and its programme of work.

This year’s meeting also kicked off the consultation process for IFAD’s 7th replenishment. Every three years, member state representatives consult with the organization’s management team and make new pledges to replenish IFAD’s regular resources.

About half of the organization’s funds come from these voluntary contributions.

In his message to the delegation, Gianfranco Fini, Italy’s Deputy Prime Minister and Minister for Foreign Affairs, announced his government’s plan to contribute an additional EUR 5 million to support IFAD’s work in microfinance.

Microfinance is a powerful tool to fight poverty in rural areas. A modest loan of even a few hundred dollars can help a poor family buy livestock or start up a new business – and mean the difference between destitution and a productive life. About 75 per cent of IFAD’s projects provide rural financial services, working with a wide range of institutions to develop financial systems that will meet the needs of rural poor people.

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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.