Latin America and the Caribbean

©IFAD/Délmer Membreño/Factstory

Context

Straddling a vast, geographically diverse area from the deserts of northern Mexico to the glaciers of Tierra del Fuego, Latin America and the Caribbean is a complex and captivating region.

Decades of economic progress have brought most of its countries into the middle-income range, buoyed by abundant natural resources and a dynamic population. Its extensive forests and savannahs play a significant role in shaping global weather patterns and mitigating climate change.

As the world’s largest net food exporter, the region plays a key role in stabilizing food prices and ensuring food security worldwide. Agriculture is an essential part of the region’s economic landscape, contributing significantly to GDP and employing millions of people in rural areas.

However, persistent challenges have prevented the region from achieving its full potential, including rural poverty, social inequality and environmental degradation. Its agrifood systems are predominantly informal and rely on the poorest and most vulnerable, often in remote and underserved areas.

There are numerous opportunities to achieve the transformative change needed for lasting, sustainable development.

Rising demand for agricultural commodities, both regionally and globally, presents a promising market for future generations of small-scale farmers. The young people of Latin America and the Caribbean are an exceptional resource, bringing energy, innovation, and fresh perspectives to the agricultural sector.

Indigenous communities across the region possess invaluable knowledge of sustainable agriculture practices. Integrated with modern techniques, these can boost productivity and resilience in farming systems.

Through targeted interventions to address knowledge gaps, financial exclusion and limited access to markets, these key opportunities can be unlocked – and the region can pave the way for a brighter future.

Strategy

IFAD has been active in the Latin America and the Caribbean region for nearly five decades, pioneering transformative approaches to community-driven development.

Currently, IFAD is financing 29 active projects in the region, with a total investment of US$486 million. These projects have already improved the livelihoods of 286,000 rural households and are expected to reach a total of 361,000 households by their completion date.

Our strategy is rooted in empowering local communities to forge their own paths to prosperity, providing them with the necessary resources and support to realize their aspirations.

We tailor our strategy to each unique context, boosting livelihoods and building resilience to external shocks through targeted interventions.

IFAD is dedicated to protecting the region's natural resources, being conscious that Latin America and the Caribbean region is home to over 40 per cent of the world’s biodiversity and 57 per cent of its primary forests. By prioritizing areas such as sustainable agriculture, climate-smart practices, and rural finance, we support productivity increases while at the same time, safeguarding the environment.

Our approach also focuses on ensuring that women, youth, and Indigenous Peoples have equal access to resources and opportunities for economic empowerment.

The dynamism of young people is a constant element in IFAD-supported projects, from overcoming systemic barriers for agroecological transition in Argentina to revitalizing and promoting their territories through gastronomy and tourism in Bolivia, Colombia, and Honduras.

Actions to empower women and tackle gender inequality include integrating the IFAD-developed Closing Gender Gaps methodology and creating entrepreneurial opportunities, with a collaborative approach to transforming gender norms that engages both women and men, such as through the Nicaraguan Dry Corridor Rural Family Sustainable Development Project (NICAVIDA).

Meanwhile, the perspectives of Indigenous People are integrated into project planning, for example through the Building Rural Entrepreneurial Capacities Programme: Trust and Opportunity (TOP) Project in Colombia.

For decades, IFAD has strived to make a lasting impact on poverty reduction, food security, and environmental sustainability in Latin America and the Caribbean. We will continue to work towards a brighter and more equitable future for rural communities, collaborating with partners across the public and private sectors, and harnessing the collective efforts of diverse stakeholders to catalyze sustainable rural development.