Knowledge

At a time when world attention is seized with the crises of migration and forced displacement, conflict, environmental degradation and climate change, FAO and IFAD are keenly aware that development must treat the underlying causes of desperation, inequality, and unsustainable ways of living on the planet.
FAO and IFAD have a shared vision, backed by technical expertise, which looks to the structural, longer-term causes of the scourges the world now aims to eradicate. Together and independently, our practices are geared toward providing sustainable solutions to food insecurity and lasting exits from the poverty trap. Together we are reaching marginalized and forgotten people who have too often been overlooked in development efforts.

The purpose of this publication is to provide IFAD CPMs, MFIs, and all technical and financial partners with a methodological tool that will facilitate efficient implementation of the institutional transformation or regrouping processes of microfinance institutions, especially those that serve rural populations – processes that a priori are highly complex. 

Despite the progress made in the microfinance sector, its expansion has been hindered in large measure by institutional and financial impediments. This situation has led some institutions to embark on an institutionalization, institutional transformation, or regrouping process to overcome the obstacles in their path.

Microfinance institutions (MFI) take various forms these days, among them: projects, credit union or village banking networks, savings and credit cooperatives and mutual institutions, associations, capital companies, etc.

This HTDN provides guidance for project design teams on how to design a 4P component and how to support the implementation of 4Ps within IFAD-funded projects.

It builds on findings and lessons learned from previous IFAD-supported projects, as summarized in the 2013 report, IFAD and Public-Private Partnerships: Selected Project Experiences, and the Institute of Development Studies (IDS)/IFAD publication, Brokering Development: Enabling Factors for Public-Private-Producer Partnerships in Agricultural Value Chains.

This HTDN begins by defining the 4P and related concepts and then analyses the basic elements that need to be considered when designing and establishing a 4P followed by recommendations for the implementation of 4Ps.

This policy brief argues that the post-2015 development agenda should be designed to encourage governments and other actors to facilitate the economic and social empowerment of the poor rural people, in particular, marginalized rural groups such as women and indigenous peoples. 

For the first time, the three Rome-based agencies of the United Nations have joined forces to raise awareness on the importance of food losses and to stimulate change and action in member countries to reduce them.

FAO, IFAD and WFP welcome this global commitment to end poverty, hunger and malnutrition by 2030. Our proposal on how to achieve zero hunger by 2030 is in the context of the proposed Sustainable Development Goal to eliminate hunger and malnutrition by 2030, which, in turn, goes hand-in-hand with the proposed Sustainable Development Goal 1 to eliminate poverty at the same time. With almost 800 million people suffering from hunger and almost four-fifths of the extreme poor living in rural areas, it is necessary to raise agricultural and rural incomes to achieve those two priority Sustainable Development Goals.

This note highlights the lessons learned in supporting smallholder institutions and organizations.