Press release number: IFAD 11/06

Rome, 16 February 2006: Participants at the 29th Governing Council of the International Fund for Agricultural Development (IFAD) met today for a round-table discussion on the importance of strengthening institutions for rural poor people.

''Institutions should build coalitions of poor people, strengthen community-driven development and transfer responsibilities and resources to communities'' said Dario Pulgar, chief technical advisor to the Canadian International Development Agency's programme in Ecuador.

Participants discussed the challenge of creating a policy environment that responds to the needs of rural poor people. Decentralization and strong rural institutions can help rural poor people to gain a voice in decisions affecting their lives, including public policies. Strengthening the capacity of rural poor people and their organizations is one of IFAD's strategic objectives.

According to panellist John Harriss, professor at the London School of Economics, ''states can facilitate local organizations and actions on the part of poor people by creating spaces for participation.” By participating in public debate, rural poor people help make governments more accountable to their needs, explained Harris.

Based on lessons it has learned in its programmes and projects, IFAD has developed instruments to enhance the resilience of community-based organizations and individuals and to support small farmers' participation in policy making and institutional change.

For instance, IFAD has found that rural institutions can build the capacity to manage financial resources, providing savings and credit services to their members so they can start income generating activities. Strong institutions are especially important in post-conflict situations, where few government services may be available, making it difficult for people to rebuild their lives. In indigenous communities, IFAD has helped traditional groups to supervise land use and maintain water points.

Through these activities, IFAD has confirmed that rural poor people can effectively organize themselves to identify community priorities and address local problems. This is only possible, however, if rural poor people have clear rules of the game, access to information and resources, strong capacity and financial support. Most importantly, it requires a significant shift in the development paradigm, from supply-side to demand driven interventions, and from top-down to bottom-up approaches, the roundtable participants heard.

IFAD is a specialized agency of the United Nations dedicated to eradicating poverty and hunger in rural areas of developing countries. Through low-interest loans and grants, it develops and finances projects that enable rural poor people to overcome poverty themselves. There are 185 ongoing IFAD-supported rural poverty eradication programmes and projects, totalling US$6.1 billion. IFAD has invested nearly US$2.9 billion in these initiatives. Cofinancing has been provided by governments, beneficiaries, multilateral and bilateral donors and other partners. At full development, these programmes will help nearly 80 million rural poor women and men to achieve better lives for themselves and their families. Since starting operations in 1978, IFAD has invested almost US$9.0 billion in 707 programmes and projects that have helped nearly 300 million poor rural men and women achieve better lives for themselves and their families. Governments and other financing sources in the recipient countries, including project participants, have contributed almost US$8.8 billion, and multilateral, bilateral and other donors have provided another US$7.0 billion in cofinancing.