Knowledge

Typically, IFAD’s approach to policy engagement is one of facilitating, supporting and informing nationally-owned policy processes, so as to enable governments and other national stakeholders to determine themselves the policy change required. 

In Benin, agriculture plays a central role in the national economy, contributing 32 per cent of GDP and employing a large part of the workforce. Despite significant productive potential and a diversified agricultural sector (crop production, livestock, non‑timber forest products, fisheries), the country relies heavily on imports of food products, which represent 25 per cent of the total value of imports.

Agriculture is the predominant economic activity in Tonga, contributing around 20 per cent of GDP. About 75 per cent of Tonga’s population lives in rural areas, and agriculture and fishing are the main sources of livelihoods. Fewer than 10 per cent of farmers are commercial producers and most of Tonga’s agriculture is thus still based on traditional/subsistence farming systems. The agriculture sector has been stagnant for a decade, with virtually no growth recorded between 2005 and 2012. Factors contributing to this situation include outmigration of the rural population, an ageing farmer population, declining export opportunities, and the increasing frequency and impact of climate change-related extreme weather events. Tonga’s export vulnerability lies in its reliance on very few commodities, such as squash, the exports of which have been falling since 2003. Rising production costs have contributed to a decline in export competitiveness, as has the difficulty in meeting quality and phytosanitary requirements for the principal markets of New Zealand and Australia.

Policies affect every dimension of the institutional and legal context in which poor rural people pursue their livelihoods; they shape the world they live in and the economic opportunities open to them. Supportive policies can go a long way towards providing the conditions in which people can lift themselves out of poverty. Conversely, policies that do not create opportunities, or that exclusively reflect the interests of other economic players, can be an insuperable barrier or an unbridgeable gulf – roadblocks barring the way out of the poverty trap. Thus, an enabling country-level policy environment for agriculture and rural development is not only critical for effective implementation of IFAD-supported projects, but also a precondition for enabling rural people to overcome poverty. As IFAD shifts its focus from exclusively project-specific goals to making a broader contribution to rural poverty reduction, engaging in country-level policy processes is becoming an increasingly important activity within country programmes, supported by dedicated services and products, and an important mechanism through which to scale up proven approaches and lessons learned at the project level. 

The Integrated Participatory Development and Management of Irrigation Project (IPDMIP) in Eastern and Western Indonesia is a major initiative supporting smallholder irrigated agriculture in that country. The project is expected to start in 2016, supporting smallholder farmers who depend on irrigation in up to 74 target districts in 16 provinces.

Describes what IFAD and the Policy and Technical Advisory division are supporting country-level policy engagement.

It also summarizes past experience and explains how Country Programme Managers can access funds to engage in country-level policy dialogue.