Press release No.: IFAD/60/08

Rome, 19 December 2008 – Despite the financial crisis capturing headlines around the world, the international community confirmed today its backing to a US$3 billion, three-year programme of the International Fund for Agricultural Development (IFAD).

Coupled with co-financing from IFAD’s many partners, this will mean as much as $7.5 billion for agriculture, poverty reduction and food security in the most vulnerable rural populations worldwide. 

As part of this funding package, IFAD’s Member States meeting here for consultations on the Eighth Replenishment of the Fund’s resources, agreed on a target of $1.2 billion in new contributions, to help poor rural people, already hurting from recent food and fuel price volatility.

Coming on the heels of the renewed commitments made in Doha, Qatar during the recent Financing for Development Conference, this new funding from Member States represents an unprecedented 67 percent increase over IFAD’s last replenishment and is the largest ever replenishment in the organisation’s history. It was led by the Kingdom of Saudi Arabia’s five-fold increase announced in April, followed by others from industrialized countries, OPEC and other developing countries.

“This significant increase from IFAD’s members, especially given these financially tough times, is an extraordinary expression of political resolve to support poor rural people,” said IFAD President Lennart Båge.

“It’s also a vote of confidence in the reforms we have undertaken to re-energize IFAD so it can help more poor people and have a greater impact on their lives,” Båge added.

With the new resources, IFAD will be able to reach an estimated 60 million poor rural women and men, creating and supporting economic opportunities.

Seventy-five per cent of the world's poorest people – some one billion women, children and men – live in rural areas and depend on agriculture and related activities for their livelihoods. Over the past two decades, investment in agriculture in developing countries has steadily declined.

“Agriculture must be a central part of the development agenda if we are to keep on track for the Millennium Development Goals,” said Båge.

IFAD is financed every three years when Member States replenish its resources, consult with its management and determine the organization’s policy direction.

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IFAD was created 30 years ago to tackle rural poverty, a key consequence of the droughts and famines of the early 1970s. Since 1978, IFAD has invested more than US$10 .6  billion in low-interest loans and grants that have helped over approximately  350  million very poor rural women and men increase their incomes and provide for their families. IFAD is an international financial institution and a specialized United Nations agency. It is a global partnership of OECD, OPEC and other developing countries. Today, IFAD supports close to 250 programmes and projects in 87 developing countries and one territory.