Other attendees to include the Director General of OPEC Fund for International Development (OFID) and the Secretary General of the Gulf Cooperation Council (GCC)

Rome – 12 February 2007– The Prime Minister of the Republic of Mozambique, Luisa Dias Diogo will deliver the keynote address at the 30th session of the Governing Council of the International Fund for Agricultural Development (IFAD) on 14-15 February at the Palazzo dei Congressi. Also in attendance will be the Finance Minister of Italy, Tommaso Padoa-Schioppa; the Secretary-General of the Gulf Cooperation Council, Abdul Rahman Bin Hamad Al Attiyah; and the Director-General of the OPEC Fund for International Development, Suleiman J. Al-Herbish.

Rural employment and livelihoods will be the focus of the meeting. Many of the world’s poorest countries are plagued by high rates of unemployment and underemployment. 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.

"The international community must scale up efforts to create economic opportunities in poor rural areas," explains IFAD President Lennart Båge. "The awarding of the Nobel Peace Prize to Professor Mohammed Yunus signals the community’s willingness to address poverty alleviation through a broader range of innovative income generating activities."

The Governing Council is IFAD’s highest decision-making authority, and its annual meeting serves as a forum for discussing policy and budget issues that relate to the global fight against rural poverty. Delegates from IFAD’s 165 member states, including ministers of finance, agriculture and rural development will attend.

Employment and rural poverty

Eight hundred million of the world’s 1.1 billion extremely poor people live in rural areas with sparse employment opportunities. As a result, many developing countries have witnessed a massive migration of people from rural communities to urban centres and neighbouring countries. Remittances from those migrant workers have become a major source of external funding for some developing countries. In 2005, money sent home by expatriate workers reached an estimated US$232 billion. A significant portion of these international funds flow to rural areas.

At the same time, rapid migration has robbed many rural areas of its skilled workers. Increasingly, women are joining the tides of migration — another aspect of migration that is changing the social and demographic face of rural life.

Unemployment and underemployment are particularly high among rural people between the ages of 15 and 24. Given the opportunity, rural youth can be productive members of society. But without employment, they can be a breeding ground for social unrest.

The ability of the international community to harness the power of the constructive aspects of migration and mitigate the detrimental aspects, is an important factor in meeting the Millennium Development Goal of halving the proportion of extremely poor and hungry people by 2015.

Round tables
 
On the first day of the Governing Council, IFAD will host three roundtable discussions on issues related to rural employment and livelihoods:

• Round table 1: "Migration and rural employment" will explore the consequences of rural migration to urban areas and to other countries. The discussion will cover policies and interventions that can support migrants, especially women given their growing participation in migration and in the labour force.
• Round table 2: "Rural employment promotion through the value chain approach" will look at how increased access to markets and the exchange of goods and services on fair terms can help smallholder farmers boost their incomes. The discussion will explore the technological, financial and commercial strategies needed to enhance poor rural people’s benefits from each activity required to bring a product to market.
• Round table 3: "Generating remunerative livelihood opportunities for rural youth" will explore how development policies can better support rural youth in their search for remunerative work. Panellists will discuss the various challenges associated with finding new ways to engage rural youth and enhance their capabilities, particularly through education and support services.

Record-breaking IFAD work programme reaches US$557 million in 2006

In 2006, IFAD completed its largest ever programme of work. The Executive Board approved new loans and grants for a total of US$557.0 million, an almost 10 per cent increase over last year. The Board approved a total of 27 new programmes and projects in as many countries.

At the end of 2006, IFAD had a total of 185 effective programmes and projects in 82 countries and one territory. IFAD’s investment in these activities was worth a total of nearly US$3 billion. Disbursements were also at a record high in 2006, reaching US$386.9 million.

WESTERN AND CENTRAL AFRICA

Although the Western and Central Africa region is undergoing a process of rapid urbanization, most people still live in rural areas. There are positive trends and opportunities to capitalize on including strong economic and agricultural sector growth in several countries.

In the region, IFAD continues to focus on: strengthening the capacity of poor rural people and their organizations; improving equitable access to productive natural resources and technologies; increasing access by poor rural people to financial services and markets; and reducing vulnerability to major threats to rural livelihoods.

At year-end, IFAD’s ongoing regional portfolio consisted of 42 programmes and projects in 18 countries, with a total IFAD investment of US$538.6 million.

EASTERN AND SOUTHERN AFRICA

Although a third of the countries in Eastern and Southern Africa have projected economic growth rates of over 5 per cent, only Mozambique and the United Republic of Tanzania look likely to meet the Millennium Development Goals. While the proportion of people living on less than US$1 a day is declining only marginally in the region, their absolute number continues to increase.

Last year in Eastern and Southern Africa, IFAD focused on enhancing poor rural people’s access of to: land and water, agricultural markets and value chains; financial services; and agricultural technologies and information systems; as well as strengthening management of these resources.

By year-end, IFAD’s ongoing regional portfolio consisted of 36 programmes and projects in 15 countries, with a total IFAD investment of US$546.7 million.

ASIA AND THE PACIFIC

The rate of economic growth in the Asia and the Pacific region rose to over 7 per cent in 2006, higher than any other region in the world. However, low performance in the areas of infant mortality, HIV prevalence, and access to basic sanitation in urban areas are cause for concern.

In 2006, in the Asia and the Pacific region, IFAD continued to focus on: developing less-favoured areas; enhancing women’s capabilities; enhancing the capabilities of indigenous peoples and other marginalized minorities; and building coalitions of poor rural people.

At year-end, IFAD’s ongoing regional portfolio consisted of 45 programmes and projects in 16 countries, with a total IFAD investment of US$886.8 million.

LATIN AMERICA AND THE CARIBBEAN

In 2006, Latin America and the Caribbean showed positive economic performance yet 60 per cent of the rural population live below the poverty line. The region as a whole is highly vulnerable to external factors such as the performance of the global economy and natural disasters, and continues to show one of the most unequal income distributions in the world.

The main objectives of IFAD’s regional strategy are to: empower poor rural people and promote demand-driven participatory approaches; enable poor rural people to take advantage of market opportunities at the local, regional and international levels; promote policy dialogue, engaging direct stakeholders, governments and the donor community; develop partnerships and coalitions; and harness and disseminate knowledge.

At year-end, IFAD’s ongoing regional portfolio consisted of 31 programmes and projects in 16 countries. Total IFAD investment in the ongoing portfolio is US$522.2 million.

NEAR EAST AND NORTH AFRICA, CENTRAL AND EASTERN EUROPE AND THE NEWLY INDEPENDENT STATES

In 2006, the Near East and North Africa (NENA) region continued to face major political and socio-economic challenges, including issues regarding decentralization and governance. Tackling rural unemployment is one of the most pressing challenges.

Countries in the Central and Eastern Europe (CEN) sub-region are attempting to catch up with market-oriented Western European economies. In the more advanced countries, the prospect of accession to the European Union is the prime driver of reform.

IFAD’s current strategies for the NENA region focus on: empowering poor rural people and their organizations; promoting gender equality; enabling poor rural people to diversify their incomes; and ensuring sustainable management of natural resources.

For the CEN region, they are: empowering poor rural people and their organizations; promoting gender equality; supporting the transition process and the move towards market-based economies; and facilitating market linkages in the agricultural sector.

At year-end, IFAD’s ongoing regional portfolio for both NENA and CEN countries consisted of 31 programmes and projects in 17 countries and Gaza and the West Bank, for a total IFAD investment of US$431.3 million.

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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.