Press release number: IFAD 19/06

Rome, 23 April 2006 - The International Fund for Agricultural Development (IFAD) welcomed the pledge by the United States to contribute US$54.0 million to the Seventh Replenishment of its resources for the period 2007-2009. The contribution will benefit poor people who live in rural areas of developing countries and who depend on small-scale agriculture for their livelihoods.

"The US recognizes that creating economic opportunities in poor countries helps create a safer, more productive, healthier world," said IFAD President Lennart Båge. “Through its support for IFAD, the US can reach some of the poorest and most remote areas of developing countries."

"With contributions from the US and other member states, IFAD is helping rural poor people find new ways to increase their productivity, strengthen their economic leverage and join together to promote their interests," Mr. Båge said.

About 1.1 billion people live on less than one dollar a day, of whom 800 million, or 75 per cent, live in rural areas. IFAD works to increase poor rural people's food production, raise their incomes and thus improve their health, nutrition, and general well-being on a sustainable basis.  A specialized agency of the United Nations, it is the only UN entity dedicated exclusively to overcoming rural poverty.

"The US is the leading contributor to IFAD and an important advocate for approaches that demonstrate greater benefits for rural poor people," said Mr. Båge, who is in Washington to participate in the spring meeting of the World Bank's Development Committee.  

The United States was instrumental in IFAD's founding in 1977. Since then it has contributed nearly US$700 million to IFAD's operations.

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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 187 ongoing IFAD-supported rural poverty eradication programmes and projects, totalling US$6.2 billion. IFAD has invested more than 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 US$9.0 billion in 705 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.