IFAD presents findings of Rural Poverty Report prior to the Islamic Development Bank annual meeting

Jeddah, 28 June 2011 – As Ministers of Finance, Economy and Planning from 56 Islamic Development Bank (IsDB) member states gather in Jeddah, Saudi Arabia, for the annual meeting of the Board of Governors, the International Fund for Agricultural Development (IFAD) hosted a discussion forum today on opportunities for rural communities in developing countries.

"IFAD is IsDB's strategic partner in combating hunger and poverty in OIC countries. Thirty years ago, IFAD pointed out that combating poverty and hunger should be on the global agenda," said IsDB Vice President Operations, Birama Sidibe. "Rural infrastructure is important in poverty reduction. IsDB is interested in how technology can make a difference in alleviating poverty and hunger.”

A number of seminars are being held in conjunction with the IsDB annual meeting on the key role that development financing institutions can play on economic empowerment and job creation for youth.

The IFAD Rural Poverty Report 2011 urges further action and support particularly in areas where the Organization of the Islamic Conference (OIC) countries have invested resources to bring about economic growth. The report argues that smallholder agriculture can lift millions out of poverty, but only if it is market-oriented, profitable and environmentally sustainable – and that national policies and investment approaches must fully recognize that farming of any scale is, first and foremost, a business.

“While we face enormous challenges to assure food security in developing countries, particularly in OIC countries, there are also great opportunities,” said IFAD Chief Development Strategist, Henock Kifle, who presented an overview of the themes and recommendations stated in the Rural Poverty Report.  “The degree of focus that the international community will place on smallholder agriculture will determine if we will succeed in achieving food security for all in the coming decades.”

The Rural Poverty Report 2011 was first launched at Chatham House, London in December 2010. Since then its findings have been presented in a number of capitals around the world. The report is most relevant to IsDB member states, many of which are heavily rural, and where the agricultural sector continues to play a critical role as a source of food security and incomes for the poor, and as an engine for growth in other sectors of the economy.

Lassine Bouare, Minister of Economy and Finance of Mali in his remarks during the event said: “Poverty and hunger are two challenges our countries are facing. Only increasing productivity is not enough to solve the issue of food security. We must invest in in all areas of sustainable agriculture.”

The panellists emphasized the importance of smallholder agriculture and the rural non-farm economy in driving poverty reduction and growth, and called for attention to issues concerning gender equity and youth.

IFAD President, Kanayo F Nwanze addressed the IsDB annual meeting in 2010 where he highlighted the long standing productive partnership between IFAD and the IsDB. IsDB member states and the Arab States of the Organization of the Petroleum Exporting Countries (OPEC) in particular, played a decisive role in the establishment of IFAD. In 2009, the two organizations signed a cofinancing agreement worth US$1.5 billion for 26 priority poverty reduction  programmes and projects in many of the member states.

As of April 2011, IFAD had invested US$ 5.3 billion of its own resources in 372 projects enabling a large number of poor rural family in OIC member states to escape poverty and achieve food security.

Press release No.: IFAD/44/2011

The International Fund for Agricultural Development (IFAD) works with poor rural people to enable them to grow and sell more food, increase their incomes and determine the direction of their own lives. Since 1978, IFAD has invested about US$12.9 billion in grants and low-interest loans to developing countries, empowering more than 370 million people to break out of poverty. IFAD is an international financial institution and a specialized UN agency based in Rome – the United Nation’s food and agricultural hub. It is a unique partnership of 166 members from the Organization of the Petroleum Exporting Countries (OPEC), other developing countries and the Organisation for Economic Co-operation and Development (OECD).