Knowledge

Sharing a vision: Partnership between the Netherlands and the International Fund for Agricultural Development A joint goal: Investing in rural people, contributing to global development Rural areas of poor countries are facing both new and continuing challenges. Among these are the world’s burgeoning population, volatile food prices, environmental degradation, climate change, diversion of farmland, declining public financing and inefficient production and trade chains. Food security and rural development, therefore, are among the top priorities of the Dutch development agenda and central to IFAD’s mandate. Over the coming decades, market oriented smallholder agriculture will be crucial to fulfilling the growing demand for food and related goods and services. It will also be fundamental to raising incomes of poor people, 70 per cent of whom live in rural areas, and protecting the environment. A shared desire to
support smallholder farmers in creating this future is at the heart of the partnership between the Netherlands and IFAD.

This paper challenges current thinking on the connection between rural transformation and food security & nutrition. It advocates that improving rural and structural transformation has a positive cyclical effect upon communities by improving food availability, access, supplies and utilization which in turn improves the health and education of communities. 

Using evidence from across the developing world, the paper creates a policy agenda to maximise potential for smallholder farming to transform local economies.

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.

The 2016 Rural Development Report focuses on inclusive rural transformation as a central element of the global efforts to eliminate poverty and hunger, and build inclusive and sustainable societies for all. It analyses global, regional and national pathways of rural transformation, and suggests four categories into which most countries and regions fall, each with distinct objectives for rural development strategies to promote inclusive rural transformation: to adapt, to amplify, to accelerate, and a combination of them.

Most of the world’s 1.2 billion very poor people live in precarious conditions, without the security of reliable income, shelter or food. Being able to save, receive, pay or borrow small amounts of money can make a big difference to their lives.

Since the introduction of a comprehensive set of economic reforms known as Đôi Mói (renovation) in 1986, Viet Nam’s economy has sustained strong economic growth. Over the last 20 years, GDP growth has averaged 7.2 per cent per annum, resulting in rapid poverty reduction. 

Since initiating its first project in the country in 1980, IFAD has provided a total of US$116.2 million in financing through eight loans and three grants for programmes and projects with a total cost of US$251.9 million. The investment has benefited 513,500 households. Operations were suspended during the civil war and resumed after it ended in 2002.

At that time, IFAD and the African Development Bank established a joint programme coordination unit to facilitate the management and increase the cost-effectiveness of operations in agriculture and the rural sector.

IFAD, paying special attention to the needs of disadvantaged groups such as women, youth and indigenous peoples, focuses on strengthening the capacities of rural organizations to assist smallholder farmers in developing profitable rural businesses and tools and strategies to help cope with the challenges posed by climate change.

To achieve this goal, IFAD, in partnership with the Government of Bolivia, designs programmes to develop the technical and business skills of rural organizations, introducing technological innovations to add value to agricultural products by improving their quality and helping smallholder producers to be more competitive.
Furthermore, IFAD-funded operations facilitate the development of public-private joint ventures that help smallholder producers to gain access to markets and value chains.