Kanayo F. Nwanze takes office

Rome, 1 April, 2009 – As leaders of the G20 gather in London to seek shared solutions to the global economic crisis, IFAD’s new President, Kanayo F. Nwanze, called on national governments to accelerate agricultural development.

The worldwide financial downturn is threatening to push millions of people into abject poverty, particularly poor rural people in developing countries, most of whom are smallholder farmers.

“We ignore the world’s poor farmers at our peril. As we strive to recover from the current turmoil, these farmers can be part of the solution. With the right support, they can drive wider economic growth and avert future food crises, like the one that shook the world last year,” Nwanze said.

“Only a renaissance in agriculture in developing countries can transform the lives of poor rural people and provide enough food for a growing population.”

Nwanze, an agricultural specialist with three decades of rural development experience across three continents, today began his term as the new IFAD President. IFAD is both an international financial institution and a specialized United Nations agency dedicated to helping rural poor people in developing countries overcome poverty.

There are some 500 million smallholder farms worldwide, which feed more than 2 billion people. When smallholder farmers earn more money, they stimulate local economies and generate improvement in the lives and livelihoods of rural populations.

“From Bhdiya, a small village in Chhattisgarh, India, to the mountain community of Raqchi, Peru, we know there is immense untapped potential among smallholder farmers,” said Nwanze. “Right now the energy that they have is being consumed in the daily struggle to feed their families.”

The start of Nwanze’s tenure at IFAD coincides with the meeting in London of the G20 - the eight leading industrialized nations (G8), eleven emerging market and smaller industrialized countries and the European Union -  where African leaders will be pressing for solutions to their countries economic needs.

In a letter to G20 members, UN Secretary-General Ban Ki-moon, said US$1 trillion was needed to help developing countries weather the financial crisis and warned that failure to act urgently would mean the risk of global instability.

The new IFAD President said: “We must make sure that agriculture remains a priority in the response to the financial crisis”.

“I call on national governments in Africa and elsewhere to invest more in agriculture and I urge developed countries to back that investment with development aid and by honouring their donor promises,” he added.

However, investment alone will not create the renaissance that is needed in agriculture, he warned.

“Policies must also be put in place to address specific obstacles faced by poor rural people, particularly lack of market linkages  and lack of access to financial services,” Nwanze said.

“With the world’s population due to double by 2050, guaranteeing food security involves us all. Small farmers in poor countries must be brought on board now, before the next food crisis alarm rings.”

Nwanze applauded the decision by Italy, which holds the rotating G8 presidency, to bring together for the first time Agriculture Ministers of G8 countries. They will meet from 18 to 20 April, near the Italian city of Treviso.

“This is a reflection of a growing consensus that agriculture must be at centre stage and a recognition that boosting agriculture and food production is in the interest of all – poor and rich nations alike,” Nwanze said.

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NOTES FOR EDITORS

• Remittances flows – a lifeline for many developing countries - are stagnating at their 2007 levels and in some cases dropping as much as 10 per cent compared to 2007 as a result of the financial crisis. 
  
  Compared to other financial flows to poor rural regions in Africa and Latin America, remittances in 2008 still ranked as the main source of income.

• Job losses are mounting, in some countries triggering mass
  movements from the cities to rural areas.  The ILO predicts more than 30 million jobs will be lost in 2009; if the situation worsens that could reach 50 million. (ILO Global Employment Trends Report Jan 2009)

• The global cereal situation has improved after record 2008 harvests, yet progress is uneven. The 2008 cereal output in developing countries is estimated at 12.3 percent higher than in the previous year, while in developing countries the expansion was just 2.3 per cent.  (FAO Crop Prospects Feb 2009)

• That means that where food is most needed production is not increasing. While food prices have eased over the past year, domestic prices still remain high in many developing countries, which impacts poor smallholders, many of whom are net food buyers.

 

Press release No.: IFAD/17/09