المعرفة

Improved Learning Initiative for the design of a Participatory Impact Assessment & Learning Approach (PIALA) in Viet Nam.

This Focus Note introduces some recent developments in this rapidly changing space. The featured case studies (i) identify traditional pain points in serving smallholder farmers (such as the cost and risk of making payments to farmers and delivering subsidized credit), (ii) discuss how DFS are being used to overcome these pain points, and (iii) highlight some initial obstacles and successes.

The objective of this Annual Progress Report is to review the activities of the Platform for Agricultural Risk Management (PARM) during its first year of life or, more precisely, thirteen months since its launch in December 2013.

In 2014, Kenya was newly classified as a lower-middle-income country, with financial services and infrastructure expected to drive growth of 5 to 6 percent annually over the next five years. At the same time, the country is still in protracted crisis, with recurrent natural disasters, conflict, severe drought and hunger affecting livelihoods. Overall, about 10 million Kenyans suffer from chronic food insecurity and poor nutrition. Recurring drought means that a larger number of people in a growing population are unable to meet their food needs. Good seasons between droughts are increasingly rare, making it difficult for households to recover from crisis to crisis. Severe land degradation, primarily caused by deforestation, unsuitable agricultural practices and flooding, has had a negative impact on agricultural production.

Among the world’s developing regions, Asia and the Pacific region has witnessed the deepest and fastest structural transformation. The Green Revolution that began in the 1960s spurred the rapid spread of improved varieties of cereal crops, accompanied by public investments in and policy support to the agricultural sector. As a result, productivity of wheat and rice increased dramatically, stimulating economic growth and reducing rural poverty. In the following decades, and especially since 2000, the structural transformation further accelerated, leading to a declined share of the sector in both output and GDP and, to a lesser extent, in the total employment. Facilitated by a conducive institutional and policy environment, the process brought about a more diversified, market-oriented and high-value agricultural production; the expansion of food processing, agribusiness, food retailing and exports; and increased domestic and international competitiveness of agriculture – albeit with country and subregional differences. Nevertheless, poverty, deprivation and hunger remain widespread. Two thirds of the world’s poor and hungry people live in the region, mostly in rural environments. Income inequality has been rising fast in a number of countries, especially between urban and rural areas, with adverse effects on poverty reduction and increased risk of social conflict and political instability. Moreover, the countries and subregions are at different stages of the structural transformation process. In most developing economies, labour productivity in agriculture is still low and the shift of the agricultural workforce to other sectors is yet to take place. Therefore, agriculture remains a critical livelihood option and the largest employer sector for most rural people. 

Read about IFAD's results and impact in the 2013 Annual Report. The Report also tells the stories of the rural women and men we invest in – their challenges and their successes. It covers our work to keep the needs of rural communities at the top of the international development agenda, because 76 per cent of the world's poorest people live in rural areas. And it provides the facts and figures that the Fund regularly shares with its Members States and partners.