IFAD 04/07

IFAD President to visit Argentina, Paraguay and Uruguay

Rome, 17 May 2007— The President of IFAD, Lennart Båge, will travel to
Argentina (21-22 May), Paraguay (23-24 May) and Uruguay (25 May) to meet with government officials and participate in the Seventh
Specialized Meeting for Small-scale Agriculture being hosted in Asunción by the South Common Market (MERCOSUR).

During his visit to the three countries, Båge will reiterate IFAD's support for the institutionalization of rural development policies as part of MERCOSUR’s agenda, and to encourage cooperation between MERCOSUR members and development organizations, such as IFAD.

“As the UN agency dedicated to the eradication of rural poverty, IFAD
is committed to ensuring that poor rural people can fully participate
in MERCOSUR and benefit from it – politically, economically and socially,”
Båge said.

Båge will also visit two IFAD-funded projects, one in Argentina and one in Paraguay. In Argentina, he will meet with smallholder producers in the northwest province of Tucumán. In Paraguay, he will meet with a cooperative of fruit and vegetable producers near Asunción.

Although some MERCOSUR countries are among the strongest economies in Latin America, poverty is still widespread in the region. The poorest and most vulnerable people are landless and smallholder farmers, rural women, youth and indigenous peoples.

“Poverty persists in the region because poor rural farmers often do not have access to the technologies, knowledge and productive assets they need to take advantage of national and global market opportunities,” Båge said.

“Poor people in rural areas also tend not to have a voice in policymaking, which further contributes to their social and economic exclusion,” said Båge. “Through our work with MERCOSUR, national governments and organizations of small farmers, we are working to change this situation.”

IFAD is has provided two grants to MERCOSUR for a total commitment of US$1.9 million. The first was to help member countries align their agendas on rural poverty; the second was to support dialogue between governments and associations of small farmers on policy making.

28 years of working together to reduce rural poverty

IFAD has worked in the region since 1979 to enable poor rural people to overcome poverty. IFAD works with governments to provide funding and technical assistance for rural development programmes; at the subregional level to consolidate a rural development strategy within the framework of MERCOSUR; and directly with poor farmers to support small-scale farming and to help them build their organizations, giving them, collectively, a stronger voice in economic and political matters.

To date, IFAD has financed 19 projects in Argentina, Brazil, Uruguay and Paraguay for a total commitment of US$291.5 million. With
cofinancing by partners, the total investment is US$786.1 million.
IFAD has also provided US$14.9 million in grants to the four countries.

In Argentina, two projects are ongoing in the northeast and northwest of the country. Another project is in its initial stage in Patagonia, and a national rural development programme will be established in 10 of the country’s central and eastern provinces.

In Brazil, IFAD supports three projects in the semi-arid northeast region, where there is the greatest concentration of poor rural people. These projects provide technical and financial services to small farmers and landless people, and promote alternative income-generating activities.

In Paraguay, IFAD supports a programme in the eastern region to improve the capacity of small farmers and their organizations to participate in development activities and policymaking processes.

In Uruguay, IFAD supports small farmers and their organizations in their efforts to be more competitive in local and national markets.
This project – Uruguay Rural – is the government’s main tool in fighting rural poverty.

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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.