updated: 25 April, 2008
IFAD
Operations
International Fund for Agricultural Development
No. 5: Agricultural technology choices for poor farmers in less-favoured Areas of South and East Asia
Between 1965 and 1990, improved bioagricultural technology and water control lifted hundreds of millions of people out of poverty in several countries of the Asia and the Pacific Region, mainly by raising employment and the production of food staples and making products more affordable.

However, this Green Revolution technology bypassed millions of rural people in less-favoured environments (uplands and mountains, marginal coastal areas and drylands). Rainfed agriculture dominates in these areas, which are also subject to critical socio-economic constraints such as poor access to markets, infrastructure and services. The incidence of poverty is high in many of these areas. Agricultural productivity growth is slow and declining due to natural resource degradation, particularly soil erosion and soil fertility decline, the overgrazing of livestock and the limited use of soil and water conservation measures.

The IFAD Strategic Framework 2007-2010 places a high priority on enhancing the access of rural poor people to improved agricultural technologies and effective production services. In Asia and the Pacific, IFAD’s focus has been on the development and dissemination of agricultural technologies for poor farmers in less-favoured areas.

This paper reviews the available evidence on the adoption and impacts of these technological approaches, the farm-level and community-level constraints and the policy and institutional issues. Based on this, the paper assesses the potential of these technological approaches to improve productivity and natural resource management and reduce poverty in the less-favoured areas of South and South East Asia. It then provides recommendations concerning technology strategies to reduce poverty among poor farmers in these areas.

This study was undertaken by the International Food Policy Research Institute, in collaboration with the Asia and the Pacific Division of IFAD. The findings and recommendations of the study might be of interest to policymakers, development practitioners, donors, academics and civil society.


 

No. 4: Supermarkets, smallholders and livelihood prospects in selected Asian countries
Recent literature has drawn attention to the speedy rise of supermarkets in different regions of the developing world and forecast their rapid spread. The emergence of supermarkets has transformed agrifood markets, but at different rates and to a different extent across regions and countries. This transformation is a challenge for smallholders. While the risk of their exclusion is real, it is argued that there are opportunities as well.

This paper first analyses the difficulties and comparative advantages of smallholders in supplying high-value agricultural commodities to supermarkets. It undertakes an econometric analysis of factors determining the expansion of supermarkets: per capita incomes, female participation rates, income inequality, urbanization and the openness of the economy. It concludes that, contrary to conventional wisdom, the growth of supermarkets and dramatic changes in the food supply chain will not lead to the demise of smallholders if appropriate measures are taken to address the constraints on smallholders. It further argues that smallholder participation in supermarkets can be promoted through mutually beneficial partnerships between supermarkets and smallholders, on the one hand, and a macropolicy framework that protects the economic interests of smallholders, on the other. Finally, it identifies some measures to promote public-private partnerships so that smallholders may benefit from supermarket expansion in Asian countries.


No. 3: History and spread of the self-help affinity group movement in India – the role played by IFAD
Experience worldwide shows that when microfinance services reach the rural poor, particularly women, there are considerable improvements in incomes, child nutrition and education, family health, and women’s empowerment. Self help groups (SHGs) were piloted by NGOs, notably MYRADA in India in the mid-1980s, to provide financial services to the rural poor. This has now become a movement for social empowerment in India, particularly for poor rural women.

This paper traces the origins and progress of the self-help group (SHG) movement in India from 1985 to 2006. It looks chronologically at the roles of non-governmental organizations (NGOs), the National Bank for Agriculture and Rural Development (NABARD) and, other banks, central and state governments, and IFAD as they entered into the movement. It also analyses major factors contributing to or limiting the rapid expansion of SHGs in India. It is believed that this paper will be of interest to policy makers, development practitioners, academics and civil society and will enrich the understanding of SHGs.


No. 2: A methodology for assessment of the impact of microfinance on empowerment and vulnerability
One of IFAD’s strategic objectives in contributing to the goal of reducing rural poverty is to provide improved financial and related non-financial services in rural areas. In fact, two thirds of the Fund’s current projects have a rural finance component and approximately one fifth of the Fund’s resources are dedicated to rural finance. Rural finance interventions provide small-scale credit and other financial services to poor households and very small, informal businesses. They provide a mechanism for the poor to smooth the effects of income shocks on consumption, find safe and affordable repositories for their savings, take advantage of profitable investment opportunities and insure against risk.

Experience worldwide shows that when microfinance services reach women, the benefits are particularly sustainable. Savings rates are higher; group life is more intensive; repayment rates are remarkable; enterprise growth and graduation are stronger; and there are measurable improvements in child nutrition and education, family health and household sanitation, shelter and general welfare.

The present paper offers a broad framework for assessing the impact of microfinance projects on the empowerment and vulnerability of the rural poor, going well beyond the conventional criteria of rates of return and financial sustainability of microfinance institutions. These are new and emerging strategic concerns in the Asia and the Pacific region, and we hope that the methodology proposed will enrich the criteria for IFAD’s interventions in microfinance through contextual adaptation. Empowerment is defined as “increasing poor people’s freedom of choice and action to shape their own lives”, while the addressing of vulnerability builds resilience to various shocks.

This study is based on a small but detailed survey of members of self-help groups in six villages in the Pune district of India, where the IFAD-supported Maharashtra Rural Credit Project was implemented. There is no dearth of studies that examine targeting accuracy in microfinance programmes, reduction in the transaction costs of borrowing by and lending to self-help groups, microenterprise development and capacity-building in self-help groups.

Rather than providing a checklist of impact indicators, this paper identifies a few key indicators that impinge on aspects of social capital, empowerment of the poorest and self-insurance. The indicators used are familiar and easy to construct. As there are few detailed empirical reviews, an attempt is made to propose a selective list of indicators that could be adapted, refined and extended through systematic application.


No. 1: Millennium Development Goal of halving poverty in Asia and the Pacific Region: Progress, prospects and priorities
The paper reviews progress towards attaining the MDG of poverty reduction, assesses the prospects for achieving it by 2015 and identifies priorities for accelerating process. Despite impressive gains in the Asia and the Pacific Region represented by high economic growth and poverty reduction over the last three decades, the region still accounts for two thirds of the world’s poor. Therefore, achievement of the goal to halve the proportion of the world’s extremely poor people by 2015 depends to a large extent on this region’s performance in further reducing poverty over the next 10 years.

Several studies have shown that the first MDG will be achieved overall in the region, as well as in many countries within the region. However, these studies are based on projections of past trends and do not consider how agricultural growth, trade and institutional factors influence poverty through their effects on overall income growth. Therefore, they do not offer useful policy insights. This study, based on an econometric analysis, was commissioned to fill that gap and to deepen our understanding of policy changes in attaining the MDG of poverty reduction.

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Contact information
Valentina Camaleonte
Asia and the Pacific Division
IFAD Via Paolo di Dono, 44
00142 Rome, Italy
Tel.: +39 06 5459 2670
Fax: +39 06 5459 3670
E-mail: v.camaleonte@ifad.org