Mobilizing core resources to reduce rural poverty
IFAD’s core financing is drawn from several sources. These include contributions from Member States and other donors, investment income and loan reflows.
As a result of such a review, the Governing Council may deem it necessary or desirable to invite Members to make additional contributions to the Fund’s resources.
This year-long process, typically consisting of four main meetings is known as a replenishment consultation. It usually occurs every three years and serves three important functions:
- it is the process by which IFAD mobilizes its core resources;
- it is an exercise in accountability by which IFAD reports to its Member States on its strategy, reform and performance, usually at the mid-term of the previous replenishment period; and
- it provides an opportunity for feedback and strategic guidance from its Member States.
The Consultations on the Replenishments are now composed of Governors from 23 List A Member States, 10 List B Member States and 22 List C Member States. The representatives invited to participate in the Consultation sessions are the Governors, however they may designate others to represent them.
The process concludes with a report outlining the commitments that IFAD has agreed to undertake and the pledges of contributions from Member States. The report and a recommendation for its adoption are then submitted to the Governing Council for approval, through a specific Governing Council resolution on the replenishment.
IFAD's replenishments are unique in their high level of inclusivity – involving Member States from all Lists, and in the number of countries which contribute additional resources to the Fund – typically more than 100 countries in each replenishment cycle.
Evaluating IFAD replenishments
Replenishment consultations are critical for IFAD's financial sustainability. They provide a unique platform to ensure accountability for results and encourage collective reflection on IFAD policy and strategic priorities.
A Corporate-Level Evaluation on IFAD Replenishments was undertaken in 2014. It identified some areas for further development to improve the replenishment processes, as well as highlighting the need for IFAD to intensify its efforts to mobilize resources beyond replenishment contributions.
The evaluation also highlights the value of simplifying the current results measurement framework, including by more explicitly defining a theory of change for achieving rural transformation.