Venezuela (Bolivarian Republic of)
US$ 155.06 million
Total Project Cost
US$ 79.96 million
Total IFAD financing
Venezuela is one of the most highly urbanized countries in Latin America. From the beginning of the past decade until late 2014, Venezuela benefited from historically high oil prices, which enabled increased public spending on ambitious programs. Economic growth and redistribution policies led to a significant decline in poverty, from 50 per cent in 1998 to approximately 30 per cent in 2013.
The collapse of international oil prices, along with the economic and political landscape, have significantly affected Venezuela’s social performance over the last few years. Poverty levels in rural areas have reached high levels, with unmet basic needs and economic dependency rates of up to three times the national averages. In 2015, the poverty rate raised again to 33.1 per cent.
Poverty, low productivity, and lack of access to markets, extension services and public amenities are the main challenges faced by people in rural areas.
Venezuela now faces issues related to the optimization of available economic resources to reduce inequalities and to generate a robust productive base, less dependent on oil and subsidies, while the national inflation rate is one of highest in the world. In view of the urgency of guaranteeing domestic food supply and reducing food imports, agriculture appears as a priority sector for Venezuela despite the various challenges it is facing: low production levels, arid soils, water scarcity and vulnerability to climate change.
In Venezuela, IFAD loans promote investment in infrastructure and processing equipment to improve added value on agricultural products and facilitate markets access.
Key activities include:
- promoting increased food security, boosting smallholder farmer productivity and quality of produce; and
- increasing the capacity of rural producers' organizations to participate in and benefit from inputs aimed at boosting production.
In addition to projects and programmes, Venezuela has benefited from technological innovations, knowledge dissemination initiatives, training and improved extension services along with capacity-building of community and producer organizations.
Venezuela is one of the most highly urbanized countries in Latin America, but poverty levels are very high in rural areas.
Economic growth and redistribution policies led to a significant decline in poverty, from 50 per cent in 1998 to approximately 30 per cent in 2013. However, due to the economic crisis, the poverty rate raised to 33.1 in 2015.
Since 1988, IFAD has invested a total of US$94.6 million in eight programmes and projects related to agricultural development in Venezuela, benefiting 104,840 households.
Projects and Programmes
Enabling poor rural people to overcome poverty in the Bolivarian Republic of Venezuela
IFAD has approved six loans to the Bolivarian Republic of Venezuela for an approximate total of US$80.0 million. The organization also approved two technical assistance grants in 1991 and 1998 for the Regional Training Programme in Rural Development, implemented by the Foundation for Training and Applied Research in Agrarian Reform (CIARA), which is part of the Ministry of Agriculture and Land.
IFAD’s mandate to reduce poverty by improving the living conditions and incomes of poor rural people faces vigorous challenges and opportunities. IFAD works in partnership with the government and other donors, financing programmes and projects that target the poorest of the poor, particularly small farmers, landless people, indigenous peoples and ethnic minorities, and rural women in general. CIARA, one of IFAD’s principal partners in recent rural development projects, plays an important role as administrator of decentralized development programmes for the country's Ministry of
Popular Power for Agriculture and Land.