IFAD 14/07

Stockholm, 14 November 2007 – IFAD agrees with the World Development Report’s assessment of the “special power” of agriculture to overcome rural poverty, said IFAD President Lennart Båge, who is in Stockholm to present the 2008 World Development Report of the World Bank, Agriculture for Development. Båge will also meet with government officials to discuss rural development and poverty reduction measures.

During the regional launch of the World Bank report on 14 November, Båge will participate in a high level panel discussion at the Swedish International Development Agency (Sida) headquarters. The following evening, he will deliver a lecture titled “Can agriculture eradicate rural poverty?” at the Swedish Development Forum (FUF), moderated by FUF Rector Stefan De Vylde.

“The World Development Report provides a compelling case for higher investment in agriculture, which IFAD has been calling for many years,” Båge said. “The report puts agriculture back where it belongs – right at the centre of the fight against poverty.”

The regional launch has been organized by the World Bank and Sida, in collaboration with the Swedish Ministry of Foreign Affairs.

Agricultural development is essential for reducing world poverty, yet agriculture has suffered greatly from underinvestment in recent decades by developing country governments and by donors. Agriculture received 18 per cent of total overseas development assistance (ODA) in 1979; in 2004 it was just 3.5 per cent.

However, Sweden continues to be a firm supporter of agricultural development, and increased its level of ODA between 2005 and 2006. Sweden, as a valued member of IFAD is also a world leader of development aid.

Sweden contributes generously to the Least Developed Countries Fund for Climate Change and the Special Climate Change Fund. Both funds link adaptation to development. They are managed by the Global Environment Facility (GEF). IFAD is an executing agency of the GEF and has extensive experience working in areas where land degradation is a serious problem.

“The report states that four Millennium Development Goals (MDGs) – reducing poverty and hunger, gender equity, environmental sustainability, and equitable exchange in international trade – are closely linked to the agriculture-for-development agenda,” said Båge. “Donors must now heed the World Bank and IFAD’s call to significantly increase the share of investment in agriculture. This is the only way we will be able to meet the MDGs, as promised.”

Climate change a growing threat to agricultural development

Agricultural development is not only essential for meeting the MDGs, it has an important role to play in tackling climate change.

“Climate change is already having a devastating effect on agriculture,” Båge said. “Crop failures and livestock deaths are causing high economic losses and undermining food security with ever greater frequency, especially in parts of sub-Saharan Africa.”

Poor rural people in developing countries are the most vulnerable to the effects of climate change and the least able to adapt and cope. Many live on ecologically fragile land: mountains, coastal areas and deserts. They depend on vulnerable sectors: agriculture, fisheries and forestry.

Not only must we assist poor rural people as they adapt to climate change, we must enable them to be part of mitigation efforts. Poor rural people can be effective custodians of the natural resource base. But they must have access to the technology and financial resources they need to be part of the solution.

Working in partnership

IFAD works with national partners to design and implement innovative initiatives that fit within national policies and systems. These initiatives enable poor rural people to access the assets, services and opportunities they need to overcome poverty. We also help them build their knowledge, skills and organizations so that they can lead their own development and influence the policies that affect their lives.

IFAD is charged with reducing poverty and fostering household food security in rural areas. Its defining strengths are the promotion of community-based natural resource management and targeting of the world’s poorest people, especially in Africa.

IFAD works closely with the other Rome-based food agencies of the United Nations. FAO’s technical expertise supports institution building for agricultural and rural development, while WFP’s food programmes provide immediate nourishment, particularly in emergency situations.

“The three agencies are exploring ways of expanding our 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.