المعرفة

This Progress Review evaluates the status of IFAD’s Adaptation to Smallholder Agriculture Programme (ASAP) at programme mid-term, 2.5 years after the first ASAP-investment has been approved by the IFAD Executive Board.

IFAD uses highly concessional loans in an innovative way in the Republic of Macedonia, the Republic of Armenia and the Republic of Moldova. Low-cost refinancing capital makes rural investments attractive and profitable for formal financial institutions and reduces rural poverty by stimulating economic growth.

In the past seven years, IFAD has successfully used refinancing facilities in economies in transition to stimulate investments on farms and in rural processing companies. The facilities have refinanced projects for a total value of over US$50 million in the Republic of Moldova, the Republic of Macedonia and the Republic of Armenia, with an excellent recovery performance. Refinancing operations have proved to be a viable alternative to established modes of financing rural investments through lines of credit and microfinance. And they have encouraged financial institutions to expand their rural networks and start investing in agro-projects from their own funds. 

Ban Ki-moon, United Nations Secretary-General

IFAD is unique in the very clear focus of its mandate, and this sharp focus that also gives IFAD great strength, your specialist knowledge of agriculture and rural development will be even more valuable in the years ahead. Speech to IFAD staff, Chief Executives Board for Coordination meeting, May 2014

Marisa Lago, Assistant Secretary for International Markets and Development, United States Department of Treasury

By taking an innovative, community-based approach to investing in smallholder farmers - the most vulnerable members in rural societies – IFAD is an important partner in the global fight against poverty and hunger. I’ve witnessed first-hand the positive impact of IFAD’s work in providing technical training, facilitating access to microfinance, and strengthening farmers’ organizations in countries ranging from Uruguay to Tanzania to Morocco. The United States was a founding member of IFAD and proudly remains a strong supporter.

Water lies at the heart of sustainable development and is essential for economic growth, poverty reduction and environmental sustainability. It is the basis of human and environmental health, energy security, sustainable urbanization and the ability of rural women and men in developing countries to pursue productive activities. 

But one billion people still lack access to safe water and even more lack access to basic sanitation. Around three quarters of the world’s poorest and hungriest people live in rural areas, often forgotten and bypassed by economic growth and development programmes. The majority of rural people depend on agriculture for their livelihoods, but face numerous barriers in accessing services and securing vital resources, including water.

Despite strong and sustained economic growth over the past two decades, and a considerable reduction in national poverty rates, poverty in rural LaoPeople’s Democratic Republic (PDR) affects 30 per cent of the population. IFAD’s engagement in Lao PDR is guided by a country strategy that focuses on three primary goals: improved community-based access to, and management of, land and natural resources; improved access to advisory services and inputs for sustainable, adaptive and integrated farming systems; and improved access to markets for selected products.

Tajikistan is the poorest of the former Soviet republics, and 77 per cent of its population lives in rural areas. Rural livelihoods typically depend on subsistence farming, livestock and remittances, with livestock ownership being a key component in income generation and diversification. In poor and remote agroecological regions the production of angora (which is processed into mohair) and cashgora goats often represents the only source of livelihood, particularly for poorer households. However, since the collapse of the Soviet Union, the sector has been constrained by the absence of goat breeding programmes, the limited harvesting and processing skills of small producers, and the lack of access to high-value markets. These factors have had direct impacts on the incomes of poor rural households, and particularly women, in Tajikistan.

This is a summary of the Ghana Country Report,  based on research carried out in 2014 in association with the Institute of Development Studies (IDS) as part of an IFAD-funded programme on the role of PPPs in agriculture.
It is one of the four IFAD project-supported Public-Private-Producer Partnerships analysed for the research report ‘Brokering Development: Enabling Factors for Public-Private-Producer Partnerships in Agricultural Value Chains’.

The report syntheses the four case studies and discuss the findings on how PPPPs in agricultural value chains can be designed and implemented to achieve more sustained increases in income for smallholder farmers and broader rural development.

A case study of the Oil Palm PPP in Kalangala, Uganda. The PPP aimed to establish oil palm production (a new cash crop in Uganda) through private sector-led agro-industrial  evelopment on Bugala Island, Lake Victoria. 

The study is mainly based on qualitative data collection through semi-structured key informant interviews and focus group discussions, and a document review. Researchers interviewed representatives of the main partners involved.

Although there have been improvements in YFS access, youth are still lagging significantly behind adults in being able to access financial tools. Across high- and low-income countries, young people are less likely than adults to have a formal account. There are even starker differences related to a country’s income level, with 21 per cent of youth in low-income economies having a formal account compared with 61 per cent in upper-middle-income economies (Demirguc-Kunt et al., 2013). 

Even with this data, determining the exact extent of youth access to financial services can be complicated because there is a lack of consistent data and definitions on youth (see Box 3). The lack of data is more limited for rural areas.
While there is some analysis of the urban-rural gap in access to financial services, with those living in cities significantly more likely to have an account than rural residents (Klapper, 2012), there are currently no comprehensive studies with disaggregated data for rural youth.

In 1977, IFAD made improving “the nutritional level of the poorest populations in developing countries” one of the principal objectives of its founding agreement. Since then, governments, civil society and development organizations also have come to recognize the central importance of nutrition – which comprises undernutrition, micronutrient deficiencies and overweight – to development.

When we look at the world today, we see impressive gains as well as daunting challenges. The Millennium Development Goal target of halving extreme poverty rates was met at the global level five years ahead of the 2015 deadline. There are now more than 100 middle-income countries, as diverse as Brazil, Lesotho and Vanuatu. It is estimated that developing countries’ share of the global middle-class population will rise from 55 per cent today to 78 per cent by 2025. 

However, amid rising affluence in some countries and regions, there is also growing inequality. In 2015, there will still be 970 million people living in poverty – the vast majority of them in South Asia and sub-Saharan Africa. And there remain 842 million chronically undernourished people in the world. Volatile commodity prices bring hunger to the poorest, and instability to markets and societies. Climate change and environmental degradation throw long shadows over all of humanity’s gains. Against this background, we must confront the question of how humankind is going to continue to feed and sustain itself in the future.

This new IFAD strategy responds to these global developments and calls for IFAD to be more systematic and proactive in engaging with the private sector.

The new strategy specifies how IFAD intends to deepen its engagement with the private sector (be it small, medium, or large; domestic, regional, or international companies) with the aim of creating markets for its target groups; improving their access to inputs, services, knowledge and technology; and increasing income-generating or job-creating opportunities for its target populations. For more information please click on the link below. 

This coming year could determine not only whether the world rises to the considerable challenges now facing it—climate change, persistent hunger, increasing inequality, stubborn poverty—but also affecting the fate of generations to come. With a growing population that will exceed 9 billion by 2050, the increasing effects of climate change, a widening gap between rich and poor, and growing competition for resources, the major issues facing humanity cannot wait. Deliberation must give way to deliberate action.

But the global political will to eradicate extreme poverty, hunger and malnutrition within a generation, and the conviction that this is achievable, are growing. An ambitious agenda is emerging in the process of identifying post-2015 development goals. It aims to end poverty everywhere in all its forms, and to end hunger and achieve food security. And it plans to do so sustainably. This would perhaps be one of the greatest steps ever taken to secure the future of humanity and the life of the planet.

IFAD has achieved significant results in promoting innovative gender mainstreaming and pro-poor approaches and processes in its operations, making this an area of IFAD’s comparative advantage. 

In Yemen, a community-led project for fostering women's empowerment has imporoved the food security of thousands of landless and smallholder famers living in the poorest areas of the country.  

From 2004 to late 2012, the Dhamar Participatory Rural Development Project, cofunded by IFAD and the Government of Yemen, addressed the needs of the rural population in the Dhamar Governorate.  By ensuring the participation of rural people in the decision-making processes and income-generating activities, the project improved the food security of substience farmers and their families in the villages of Dhamar.