IFAD 13/07

The Hague, 8 November 2007 – IFAD is concerned that the international development community says agriculture is an important tool for development, but it is not following through with enough financial investment, said IFAD President Lennart Båge. The UN agency head is in the Hague to meet with the Dutch government officials including the Minister of Development Cooperation, Albert Gerard Koenders and the Minister for Agriculture, Gerritje Verburg. While in the Hague, he will also deliver a public lecture titled ‘Revival of Agriculture in Development Aid’ at the Institute of Social Studies (ISS) on Monday,12 November at 15:15 hours. All media are invited to attend.

The recently published World Bank 2008 World Development Report on agriculture makes a compelling case for higher investment in the sector in poor countries.

“More than 75 per cent of the one billion poor people surviving on less than a dollar a day live in rural areas,” Båge said. “Yet, less than five per cent of all development assistance goes to the sector on which they depend for their livelihoods.”

“Investment in agriculture has remained stagnant for 20 years,” he said. “Now this renewed interest in agriculture is welcome, but must be backed up with the right volume of funds.”

At the ISS, Båge will participate in the launch of the book Polishing the Stone, a recently published book sharing some of IFAD’s knowledge and experience in promoting gender equity in rural development projects.
The book was produced with support from the Netherlands Government and the Centre for Latin American Research and Documentation (CEDLA).

Greater investment in agriculture is crucial if the Millennium Development Goals to cut world poverty are to be met

"International donors must significantly boost investment in agriculture, otherwise we are not going to meet the MDG targets to halve the proportion of people living in extreme poverty and hunger by 2015,” Båge said. "

Agriculture received just 18 per cent of total overseas development assistance (ODA) in 1979; in 2004 it was just 3.5 per cent. There has been a recent upturn in ODA, but this has been in the form of debt relief rather than sector assistance, and the principal growth area has been the social sector, not agriculture.

The Netherlands is one of the world’s most generous supporters of agricultural development. Between 1998 and 2005, the country was the fifth largest contributor of ODA to African agriculture and rural development. The Netherlands is also a valued member of IFAD.

Climate change: make the poor part of the solution

Båge warned that poor rural people, and in particular women who are often responsible for fetching water and keeping livestock, will pay the highest price for climatic changes. They also must be part of the solution.

"As managers of land, water and forests, they could have an important role to play in mitigation measures," he said.

Many IFAD-funded projects aim to assist poor rural people adopt better land-use practices that not only boost their incomes and help lift them out of poverty, but also maintain significant amounts of carbon in the soil.

For example, in Cameroon, IFAD supports the World Agroforestry Centre’s tree domestication programme, which has helped thousands of farmers benefit from the domestication, cultivation and sale of fruit and medicinal trees. Tree planting also has important environmental implications, as trees absorb carbon dioxide, one of the major greenhouse gasses.

“Poor rural people have shown they can be effective custodians of the natural resource base,” said Båge. “But they must be given access to the technology and financial resources they need.”

IFAD works with partners in the international development community, including the other Rome-based UN food agencies, the Food and Agriculture Organization and the World Food Programme.

“The three agencies are exploring ways of expanding collaboration, including at the country level, as a key aspect of our collective contribution to achievement of the MDGS,” said Båge.

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IFAD is an international financial institution and a specialized United Nations agency dedicated to eradicating poverty and hunger in rural areas of developing countries. Through low-interest loans and grants, IFAD develops and finances programmes and projects that enable poor rural people to overcome poverty themselves. There are 191 ongoing IFAD-supported rural poverty eradication programmes and projects, worth a total of US$6.6 billion. IFAD has invested US$3.1 billion, with cofinancing provided by partners including governments, project participants, multilateral and bilateral donors. These initiatives will help about 82 million poor rural women and men to achieve better lives for themselves and their families. Since starting operations in 1978, IFAD has invested US$9.8 billion in 751 programmes and projects that have reached more than 310 million poor rural women and men. Governments and other financing sources in recipient countries, including project participants, contributed US$9.2 billion, and multilateral, bilateral and other donors provided another US$7.2 billion in cofinancing.