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Corporate Information
Three quarters of the poorest people in the world live in the rural areas of developing countries. Most of them depend on agriculture for their livelihoods. Climate change, a growing global population, and volatile food and energy prices have the potential to push millions more vulnerable people into extreme poverty and hunger by 2030. At the International Fund for Agricultural Development (IFAD) we invest in rural people, empowering them to increase their food security, improve the nutrition of their families and increase their incomes. We help them build resilience, expand their businesses and take charge of their own development. IFAD is an international financial institution and specialized United Nations agency based in Rome, the UN’s food and agriculture hub. Since 1978, we have provided US$22.4 billion in grants and low-interest loans to projects that have reached an estimated 512 million people.
With a growing global population that will exceed 9 billion by 2050, a widening gap between rich and poor, and growing competition for resources, the major issues facing humanity cannot wait. IFAD works where poverty and hunger are deepest: in the most remote regions of developing countries and fragile situations, where few development agencies venture. We’ve developed a cost-effective, people-centered and partnership-oriented approach that delivers results. Small-scale agriculture is central to our development model, which connects farmers and poor rural women and men to markets and services so they can grow more and earn more.
Agriculture is a proven engine for poverty reduction. GDP growth generated by agriculture is more effective in reducing poverty than growth in any other sector. In sub-Saharan Africa, growth in agriculture reduces poverty up to 11 times faster than growth in other sectors. IFAD-supported projects have shown that − with access to finance, markets, technology and information − rural people can lift themselves out of poverty. But our work does more than help rural people grow and earn more. It also promotes gender equality and inclusiveness, builds the capacity of local organizations and communities, and strengthens resilience to climate change. By advocating for poor rural people and financing projects that transform rural areas, our work is critical to the achievement of the 2030 Agenda for Sustainable Development. The world faces massive economic, social and environmental challenges. In today’s globalized world, these problems cannot be solved by individual governments alone. IFAD’s Strategic Framework 2016-2025 sets out how we will work over the coming decade in order to play a crucial role in the inclusive and sustainable transformation of rural areas. It articulates our contribution to the 2030 Agenda, including the larger role IFAD will play in supporting countries to fulfil their priorities relative to the Agenda. The framework outlines that we will work in ways that are bigger, better and smarter: bigger, by mobilizing and leveraging substantially greater investment in rural areas; better, by strengthening the quality of countries’ rural development programs; and smarter, by further sharpening our efficiency and delivering results in a more cost-effective way. The Framework sets three strategic objectives:
increasing the productive capacity of poor rural people
increasing their benefits from market participation strengthening the environmental sustainability and climate resilience of their economic activities.
For 40 years, IFAD has worked directly with the world’s poorest people living in some of the most remote regions of the world. We pay particular attention to the disenfranchised: women, youth and indigenous people. Our pioneering work in empowering people to lead their own development — and to realize their own dreams — is now the norm. IFAD’s community-driven approach means we are trusted by millions of small family farmers the world over. They contribute to project design. They invest their time and even their own money in projects. And they have seen the results — higher production, better income, better nutrition and better lives. IFAD’s vast global experience of funding cost-effective and people-centered programs also makes us the partner of choice for governments, development agencies, the private sector and non-governmental organizations committed to ending poverty.
IFAD’s comparative advantage lies in its targeting of the poorest, the poor and the vulnerable peoples and those who are most likely to have little access to assets and opportunities due to social exclusion and marginalization. In line with the goal of Agenda 2030 and the Leave No One Behind framework, IFAD is committed to rural poverty reduction through well-focused and targeted efforts. Scaling-up the results of successful development is at the heart of what we do. To date, we have leveraged around US$26.1 billion and contributed an additional US$18.5 billion for agriculture and rural development. IFAD’s investments reduce poverty by an estimated 5.6 to 9.9 per cent (compared with 3 to 7 per cent for cash transfer programs). Co-financing from our partners, governments and program participants leverages our investments.
The performance-based allocation system (PBAS) is rules-based using a formula that incorporates measures of country need and country performance. This allocates IFAD's loan and country grant resources to country programs on the basis of country performance (the broad policy framework, rural development policy and portfolio performance), and need, (population and per capita gross national income-GNI). IFAD's approach includes special provision for rural sector performance. Three quarters of the world's poorest and most undernourished people live in rural areas in developing countries. Most of these women and men depend on small-scale agriculture for their livelihoods. These smallholders confront the challenges of poverty, hunger – and often conflict and climate change – on a daily basis with very limited resources.
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