OPEC Fund Development Forum Unleashing the Power of Human Potential

Distinguished Friends,

It is a pleasure for me to address you today.

Thank you especially to the OPEC Fund for the invitation and for hosting us.

I stand here as President of IFAD and say to you with humility: there would be no IFAD without OPEC.

When IFAD was created in the 1970s, at a time of terrible famines, it was a new kind of organisation.

It was the first organisation be both a United Nations specialised agency and an International Financial Institution. It was the first partnership between OPEC, OECD and developing countries. And it was the first IFI to be focused exclusively on rural areas.

OPEC countries were among the first Member States to ratify the Agreement Establishing IFAD in 1977, and the Arab Gulf states contributed nearly 20% of IFAD’s initial resources.

Since then, IFAD has developed a valued and long-standing partnership with the OPEC Fund. Together, we have co-financed nearly 120 projects in over 90 communities, strengthening the resilience and food security of millions around the world.

Excellencies, Friends,

I was genuinely delighted to see the title of this forum.

Unleashing the power of human potential should be what drives us all: together we can build communities and societies that are prosperous, vibrant and sustainable.

And think also about what it means to unleash potential at the human level: almost two million babies will be born around the world this week – and every single one deserves the same chance to thrive and contribute.

The circumstances of their birth should not dictate everything about their life.

Unleashing human potential is what IFAD is all about.

Our investments seek not just to realize our vision sustainable development, but to hear from local rural communities about what they need – and then provide the tools and resources to make it happen.

To really show you what that looks like, I would like to take you now on a short virtual field visit.

Ladies and gentlemen,

As you can see, IFAD invests in the transformation of rural communities, economically, environmentally and socially.

We investment in rural people so they can overcome poverty and determine the direction of their own lives. This is whether their business is small-scale farming, fishing, herding, or any other form of agricultural production.

With our strong track record of delivering sustainable and lasting results, IFAD has become a trusted partner for governments, NGOs, development partners, and the private sector.

And most important of all: we are trusted by millions of small family farmers the world over.

This trust is the result of genuinely inclusive processes that are owned by the farmers and rural entrepreneurs who stand most to benefit from investments and policy decisions.

All of us here today are committed to creating a world where no one is left behind, and to doing our utmost to deliver on the Sustainable Development Goals by 2030.

How we take action will shape tomorrow’s world.

The problems we face together: hunger, climate change, entrenched poverty, the erosion of ecosystems and biodiversity – all have connections to agriculture.

Rural areas are home to 80 per cent of the world’s poorest people and most of the hungriest.

But the exciting thing is: the solutions can also be found in agriculture and in rural areas.

When it comes to poverty reduction, investments in agriculture are two to three times more effective than investments in any other sector.

For reducing hunger, small scale farmers play a critical role in providing affordable and nutritious food. In fact, half of the food we eat is grown on small farms of less than 5 hectares[1].

And farmers are vital allies in the battle against global warming, because their farms are biodiverse and act as carbon sinks, helping to sequester carbon in plants and soil.

Yet too often small-scale farmers are excluded from financing, social services, even electricity, and paved roads. Basic services that would help them grow more, earn more, and reach more markets – and provide affordable and sustainably grown food.

To fully unleash human potential, access to sufficient nutritious food is fundamental. Investing in smallholder farmers’ ability to grow and distribute that food is the first step to realising that most basic of human rights.

Friends,

Around 160 million children are undernourished. We know that a child's physical and mental development can be damaged forever by even a short period of inadequate nutrition in the first thousand days of life.

Unleashing human potential requires that we do whatever we can to get healthy and nutritious food to these children.

And it makes economic sense too: the cost to the global economy in lost economic productivity because of undernutrition is estimated at US$125 billion every year.

All children - and their pregnant mothers - need access to balanced, diversified and nutritious food right from the start. This is particularly important in Africa, where 30 per cent of children under five are stunted[2].

Agriculture provides half the jobs on the continent. It underpins food security and food sovereignty. It generates employment in trades and activities such as food processing, transportation, and marketing.

But agriculture has not yet reached its potential to drive sustainable development in Africa. With 25 per cent of the world’s arable land, the continent generates only 10 per cent of global agricultural output. Production cannot meet demand.

And climate change is already having a devastating impact on many of Africa’s farming communities.

This is why, in the next two years, we aim to increase IFAD’s investments in Africa from around 50 per cent to 60 percent.

This highlights IFAD’s commitment to directing our efforts where they are needed most. And it goes hand-in-hand with an increased focus on fragile and conflict-affected situations, along with greater resources for low-income countries.

Ladies and gentlemen,

In order to solve old problems we must try new solutions.

As you saw in the video, innovation and technology – new and old -- can play a key role in climate-smart agriculture that increases productivity while minimizing environmental impacts.

Sustainable farming methods such as agroecology, crop rotation, and integrated pest management can minimize environmental impact while maintaining or even increasing productivity. Combining climate smart practices and new technologies can even boost agricultural productivity despite the changing environment.

Whether it is solar-powered irrigation systems in Rwanda, real time data transfer in Morocco, or linking smallholders to financial services, and to crop and livestock insurance, IFAD is pioneering efforts to apply cutting edge solutions to local problems.

And our partnership with the OPEC Fund has powered much of this work – and the real world impact it has delivered.

Friends,

The world finds itself in a cycle of recurring crises, not unlike the situation when IFAD was founded.

We need ever more creative ways to direct finance and financial tools to the poorest and most vulnerable areas, the areas where food security and global stability are sown.

By strengthening the partnership between IFAD and the OPEC Fund even further, we can tackle evolving threats from climate change and other crises.

Together we have a far better chance to achieve our shared goals of a world without poverty and hunger – and we can unleash human potential for all, no matter where they live.

Thank you.