Release number IFAD/12/07

Rome, 15 February 2007 – The Governing Council of the International Fund for Agricultural Development (IFAD) closed its 30th session today at the Palazzo dei Congressi.

In his concluding statement, James Harvey of the United Kingdom, as Governing Council Chair, emphasized the importance of coordination and international cooperation – a message echoed by delegates throughout their statements at the meeting.

“The common thread running through these statements was clear – a collective effort and true partnership is fundamental to the success of any endeavour.”

Harvey highlighted the statement made by Tommaso Padoa Schioppa, Minister for Economy and Finance of the Republic of Italy, about the importance of an integrated and harmonized approach, as called for by the high-level panel for UN reform.

“IFAD has consistently benefited from the generous support of its host country – support which was reconfirmed by Minister Padoa Schioppa’s confirmation of Italy’s contribution to the Seventh Replenishment of IFAD’s resources with EUR 41.5 million,” Harvey said.

“Rural employment and livelihoods” was the theme of this year’s Governing Council meeting. Many of the world’s poorest countries are plagued by high rates of unemployment and underemployment, especially in rural areas. Higher incomes and better standards of living in some urban areas have encouraged a large number of poor rural people to migrate to nearby cities or other countries to find work. Those remaining in rural areas are facing new challenges that require renewed commitment to rural development. 

Three round-table discussions were held on topics related to the theme: migration and rural employment; rural employment promotion through the value chain approach; and, generating remunerative livelihood opportunities for rural youth.

Kevin Cleaver, IFAD Assistant President for Programme Management called attention to the universal support for IFAD expressed in the statements made by IFAD Governors and the irony that “such strong support exists while aid to agriculture and rural development continues to stagnate.”

The support from IFAD’s Governors, he continued, “enables IFAD to provide financial and technical support to a large number of projects in developing countries and provides legitimacy to the approach followed by IFAD in its projects.”

In his opening address, IFAD President Lennart Båge reported on IFAD’s highly successful 2006 work programme and the organization’s plans to further improve performance in the future.

“IFAD has, since its inception, supported hundreds of millions of poor rural people. But we could do more. The development impact of IFAD’s projects and programmes could and should be stronger,” said Båge.

To do so, IFAD accelerated its reform process and is working on the implementation of an Action Plan for Development Effectiveness.

“We are strengthening IFAD, to make it ready to meet the challenges ahead of us. We are determined to put agriculture and rural poverty back on the international agenda.”

In his first message to the IFAD Governing Council, the newly appointed UN Secretary-General Ban Ki-moon warned that progress towards meeting the Millennium Development Goals has been uneven. He highlighted the critical role that IFAD has to play in turning that tide.

“IFAD-supported projects not only contribute directly to reducing poverty in rural areas -- where three quarters of the world’s poorest people live -- but also generate lessons for all involved in the global effort to end poverty and hunger.”

Prime Minister of the Republic of Mozambique, Luisa Dias Diogo, delivered the keynote address at yesterday’s opening ceremony. In it she called for an end to the appalling conditions in which many people in developing countries live.

As co-chair of the high-level UN reform panel, Diogo also spoke about the importance of developing strong coherence and effectiveness across the UN system because “the UN plays an important role in our efforts to achieve sustainable development.”

The Council considered the report on the Seventh Replenishment of IFAD’s Resources and approved IFAD’s audited financial statements for 2005 and the administrative budget of IFAD for 2007 in the amount of US$67.49 million. The United States of America abstained on the Fund’s administrative budget. The Council also approved an administrative budget for the Office of Evaluation of US$5.69 million.

The Governing Council is IFAD’s highest decision-making authority. It convenes once a year, bringing together delegates from the organization’s 165 member countries.

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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 poor rural 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 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 77 million poor rural women and men to achieve better lives for themselves and their families. Since starting operations in 1978, IFAD has invested US$9.5 billion in 732 programmes and projects that have helped more than 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 US$9.1 billion, and multilateral, bilateral and other donors have provided another US$7.1 billion in cofinancing.