Reforming IFADTransforming lives

33

Breaking new ground

2009 - Change and Reform Agenda introduced- legal and administrative framework defined for IFAD CountryOffices (ICOs)

- IFAD’s new business model fully implemented through direct supervision, expansion of ICOs and more cofinancing

- revised Results Measurement Framework launched- comprehensive Human Resources reforms introduced- Environment and Climate Division created

2010 - Strategy and Knowledge Department established- new instruments introduced to align resources with strategic objectives:• first-ever Medium-term Plan• results-based budgeting system• strategic workforce planning

- new, innovative mechanisms developed for cofinancing- “scaling up” study by the Brookings Institution undertaken- Rural Poverty Report 2011 launched- Member States Interactive Platform created- new Policy on the Disclosure of Documents approved

2011 - Financial Operations Department created under a Chief Financial Officer

- Ethics Office established- Office of Partnership and Resource Mobilization (PRM) established- IFAD Strategic Framework 2011-2015 approved- Country Presence Policy and Strategy revised - first-ever job audit begun- first-ever mid-year budget review introduced

2012 - Adaptation for Smallholder Agriculture Programme (ASAP)established

- quality enhancement and quality assurance processes revised and improved

- Additional Resource Mobilization (ARM) initiative launched- IFAD Partnership Strategy approved- Budget and Organizational Development Unit created

2013 - first Global Forum of Indigenous Peoples hosted by IFAD- new Action Plan for Policy Dialogue - new Grants and Investments Projects System (GRIPS)- revised programme of institutional consolidation launched

2009 2010 2011 2012 2013

IFAD ongoing portfolio, 2009-2013Amounts in US$ billion

6

5

4

3

2

1

0

Source: IFAD

IFAD funds

domesticcontributions

cofinancing

1

CHANGINGLIVES IN ACHANGINGWORLDThe International Fund forAgricultural Development (IFAD) hasundergone a transformation inrecent years, adapting itself to anenvironment more complex andchallenging than at any other pointin its history: persistent hunger andfood insecurity; rising and morevolatile food prices; floods, droughtsand the ever-more apparent effects ofclimate change; increasingcompetition for land; global

financial crisis; and a growinghuman population that hassurpassed 7 billion.

Yet IFAD has delivered more, to morepeople, and delivered it better. At theend of 2013 there were 241 ongoingprogrammes and projects worldwidewith an IFAD investment ofUS$5.4 billion, compared withUS$3.9 billion for 217 programmesand projects at the end of 2009.

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Meeting change withinnovationIn a world in flux, IFAD’s mandatehasn’t wavered. The Fund remainsdedicated to investment in ruralpeople. IFAD-financed programmesand projects help people escape ruralpoverty and build better lives. Whileour work in the field is making adifference every day, we focus onsustainable benefits that persistthrough the medium and long term,to effect a real transformation of ruralareas. We offer financing, tools,knowledge and hope.

The confidence of IFAD’s Members inits mission and achievements wasreflected in the Ninth Replenishmentof the Fund’s resources. The targetcontribution level was set atUS$1.5 billion, in order to financeand implement a three-yearprogramme of loans and grants ofUS$2.95 billion.

CHANGE FOR THE BETTERBurundi: proportion of households having two meals a dayincreased from 13% (2000) to 69% (2009); 33,100 vulnerablehouseholds helped in restarting agricultural production activitiesGhana: US$2.3 million leveraged from 24 rural and communitybanks; local value-chain committees established in more than 40 rural districts Liberia: public-private partnership invested US$1 million torehabilitate 1,000 hectares of cocoa and coffee plantations

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But the members also urged IFAD toraise the quantity and quality of itsoperations by significantly increasingthe resources mobilized fromdomestic and international partners,in order to achieve investments inagricultural development, povertyreduction and improved food andnutrition security totallingUS$7.8 billion. This would allowIFAD to help lift 80 million peopleout of poverty and reach a total of90 million rural women and menwith its programmes.

It is the conviction that we must dobetter, reach further, get the most outof available resources and operatewith the greatest efficiency that droveIFAD’s Change and Reform Agendabeginning back in 2009, which wasfollowed by the revised programme ofinstitutional consolidation in 2013.IFAD has taken a number of steps toimprove the way it operates andachieve impact.

By any measure, the results have beendramatic. We see it in the confidenceof our partners, the results ofevaluations and, most importantly,the way in which beneficiaries’ livesare transformed. And we will continue to respond to the rapidlyevolving global environment, byasking hard questions and findinginnovative solutions.

“When we were young, forty or more years ago, it rained a lotmore than it does now, and there was grass all year round.There were many more trees. We have seen changes takingplace around us; the rain has become less abundant and theforests and grasslands are disappearing.“Bourgou [Echinochloa stagnina] is very important for us. We eat the grain, and we cut the grasses and feed them toour animals. The bourgou was disappearing and we did notknow how to cultivate it. The programme taught us how tocultivate, dry and store bourgou. When we store it and sell itlater we get excellent prices.” Hama Barry, Youwarou village, Mali

©IFAD/A. K

eita

5

SECURING ASUSTAINABLEFUTURE

The need to reduce poverty and foodinsecurity has never been more urgent.IFAD is positioning itself to meet thatneed more efficiently and on a largerscale. At a strategic and policy level, inthe context of the design of a globalpost-2015 development agenda IFADhas strived to make sure that theconcerns of rural people are heard.

IFAD-supported projects, with theirrelatively long lifecycles, areinherently transformative: they aimnot just to relieve present sufferingbut to introduce permanent changesthat build healthy, vibrant ruralcommunities. The benefits ofyesterday’s programmes and projectsare still being felt now, in thepresent, in the lives of millions ofindividuals. And what we do todaywill have an impact on millions ofpeople tomorrow.

Multiple, targeted approachesIFAD uses a multifaceted approach tocombat the multiple challengesfacing smallholder farmers. Poorfarmers need more secure access toland and water, better access tofinancial services, functioning

markets that provide incentives toinvest in improving production,better roads and transportation to gettheir products to market, and accessto technology for up-to-date andreliable market information. TheFund also supports agriculturalresearch and technology that willenable them to raise productivity and

76% of the world’s 1.2 billion extremely poorpeople live in rural areas

6

to improve their resilience to naturalresource degradation and climatechange. And they need strongerorganizations to pool their resources,manage risk and achieve bargainingpower, both in the marketplace andin policy forums.

IFAD’s transformation responds to anenormous need to increase the depthand breadth of support tosmallholder agriculture, both toimprove global food security and toreduce poverty.

IFAD works in some of the mostremote and environmentally fragilelocations, and often with particularlymarginalized and disenfranchisedpopulations.

The Fund is committed to reachingrural young people, who will migratein search of opportunity unless wemake agriculture an attractive andprofitable enterprise. IFAD also istargeting women – who make upalmost 50 per cent of the agriculturallabour force in Eastern Asia andsub- Saharan Africa and 20 per cent inLatin America – indigenous peoplesand other vulnerable groups. Despitethe austere economic climate oftoday, resources for rural agriculturaldevelopment must be expanded andused more effectively and strategically.

IFAD has invested US$15.6 billion to date in projects that have reached approximately 420 million peopleThe demand for IFAD’s programmes faroutstrips supply

When it comes to global food and nutrition security,increasing production is only part of the story. The fullstory is poverty, which lies at the heart of food andnutrition insecurity. Kanayo F. Nwanze, IFAD President”

“

7

IFAD has a distinct focus on empowering women andincreasing the voice of beneficiaries. DFID Multilateral Aid Review ”“

By scaling up and achieving furtherefficiencies, IFAD and its partners canreach more beneficiaries. Bothconcepts are embedded in IFAD’sbusiness model and planningmethodology. We know that we can’tdo it all alone; partnerships havealways been key to IFAD’s work.

The cofinancing agreementsconcluded in recent years bearwitness to the confidence that IFAD’spartners place in its ability to deliver.In 2010, an innovative cofinancingtrust fund worth €300 million wasagreed with the Government ofSpain. A US$1.5 billion frameworkagreement was signed with the

Islamic Development Bank toprovide funding for ruraldevelopment in 26 countries. IFADalso launched an enhancedpartnership with the OPEC Fund forInternational Development (OFID)in order to promote innovativefinancing mechanisms to attractprivate sector investment inagriculture, as well as developinclusive business models that bringbenefits both for investors and forlocal smallholder farmers.

CHANGE FOR THE BETTERArmenia: 230% growth in credit available to the agricultural sectorMorocco: 14,095 hectares of rangeland rehabilitated; 20,738 training and extension activities conductedSudan: in the Gash Delta project, 15,000 people trained, morethan half of them women; average area cultivated up 27%;household spending increased by an average of 160%Yemen: 16,000 women graduated from literacy classes

©BIRDP/IFAD

“One day I was listening to the radio, I heard a talk aboutmicrofinance, people in the village were also talking aboutfinancing Gum Arabic Producers Associations (GAPAs) toassist them in the production process. The women sentme to Elnuhood to learn about the opportunities availablefor small producers.” Halima was trained in microfinance and agroforestry,bought a piece of land and was able to buy a tractorthrough a loan.Halima Agib, Sudan

9

REFORMFORRESULTS

IFAD has been making a difference inthe lives of poor rural people formore than three decades. Butbeginning with the Change andReform Agenda, the organization haschallenged itself to be more effective,more efficient and more agile. Thisinitiative has included: • strengthening the organizationalstructure

• aligning human and financialresources more closely withstrategic objectives

• expanding our role as a knowledgeinstitution

• reforming human resources• redefining IFAD’s business model• strengthening financialmanagement

• increasing efficiency.

Organizational strengtheningThe introduction of new managementinstruments is allowing the Fund tobetter align its human and financialresources with its strategic objectives.This realignment is essential tomaking IFAD more effective andefficient, and is embodied in theStrategic Framework 2011-2015. Threekey instruments have been put inplace to achieve this:• first-ever Medium-term Plan (MTP)• Strategic Workforce Plan (SWP)• results-based budgeting system.

The MTP includes annual comparativereporting and a clear accountabilityframework for the execution of theprogramme of work and the use ofresources. The results-based budgetingsystem links resource allocation toimpact – results on the ground – and

IFAD has a strong results framework that covers the entireresults chain from input to impact and is used to track andimprove performance. DFID Multilateral Aid Review ”

“

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has been used to allocate a greatershare of the budget to countryprogrammes. Similarly, the SWPsupports optimal deployment of staffto meet country programme needs.

Changes in structure have enabled theFund to respond to emerging needs – the new Environment and ClimateDivision (2009) the Strategy andKnowledge Department (2010), theOffice of Partnership and ResourceMobilization (2011) and the Budgetand Organizational DevelopmentUnit (2012) – as well as to make itsfunctioning more efficient, forexample with the setting up of theFinancial Operations Department andCorporate Services Department. The Statistics and Studies forDevelopment Division was formed toensure that high-quality data andanalysis inform IFAD’s work.

Human resources reformStaff are the most vital resource ofthe institution and are crucial tosuccessfully delivering theprogramme of work.

The SWP has improved thematching of human resources tooperational objectives. It waspreceded by the job audit concludedin 2012 – the first of its kind byIFAD, or any comparable institution– that assessed job functions,qualifications and skillsrequirements in relation to theprogramme of work. Theperformance management systemalso has been revised and greaterattention given to building staffskills. To further enhanceperformance, in 2013 IFADlaunched a Rewards andRecognition Framework to recognize

Direct supervision

Directsupervision

JULY 2007�151 projects

32 directly supervised

JULY 2013�251 projects

236 directly supervised

18% 94%

Source: IFAD

11

excellent performance and motivatestaff to achieve continuouslystronger results. The Frameworktakes into account best practices ontalent and rewards managementfrom other organizations andinternational institutions.

Other actions in the area of humanresources include updating staff rulesand implementing procedures,establishing the Ethics Office (2011),and automating human resourcesprocesses for increased efficiency. In2013 a revised competency frameworkwas introduced that better respondsto the Fund’s performance needs.

IFAD’s new business modelDirect supervision and countrypresence are two of the pillars of

IFAD’s new business model. Takingresponsibility for supervising its ownprojects, rather than leavingsupervision in the hands ofcooperating institutions, has been akey transformation of the way IFADdoes business. Projects are nowsupervised more frequently andusually at a lower cost; the flow ofdisbursements has increased, while theresponse time for meeting the requestsof Member States has been shortened.

The establishment of IFAD countryoffices – which reached 40 by theend of 2013 – has brought benefitsfor Member States, partnerinstitutions and beneficiaries alike. As a result of the closer coordinationand greater efficiency offered bydirect supervision at the country

2013planned 2014-2015

Source: IFAD

Country presence 2014

12

level, IFAD has increased theprogramme of loans and grants,thereby extending the reach of itsservices to a larger population. Mostcountries with country offices haveperformed better than those without.

Financing investment in rural peopleThe implementation of the newbusiness model has helped mobilizeresources from both donors anddeveloping Member States, as well aspromoting higher and fasterdisbursement of IFAD funds. This hasadded further to IFAD’s impact on theground. In 2010, cofinancing fromexternal and domestic sourcesincreased by about 140 per cent over

2009. IFAD has stepped up its role asan advocate for poor rural people andfor agricultural development, which isyielding concrete results. The growth inIFAD’s financing has shown a strongupward trend in recent years. Domesticcontributions tripled in value between2007 and 2011, from US$274.2 millionto US$834.3 million. While the IFADprogramme of loans and grants wasUS$2.9 billion for the EighthReplenishment, due to the Fund’ssuccess in mobilizing cofinancing, thetotal of investment for the period wasworth US$7.0 billion.

In 2012, IFAD launched theAdaptation for SmallholderAgriculture Programme (ASAP), amulti-year and multi-donor financingwindow to drive a major scaling up ofsuccessful multiple-benefit approachesto smallholder agriculture. It blendstried-and-tested approaches to ruraldevelopment with relevant adaptationknow-how and technologies. ASAP isnow the single largest climate changeinitiative for smallholder farmersworldwide, whose focus is to buildtheir climate resilience.

2014 budget allocation

8.4%

25.6%

6%

1: Country programme development and implementation2: Policy dialogue, resource mobilization and strategic communication3: Corporate management, reform and administration4: Support to Members’ governance activities

60%

Source: IFAD

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The power of knowledgeIFAD’s new Strategy and KnowledgeDepartment has been active inpromoting the agenda of agriculturaldevelopment. The publication of theRural Poverty Report 2011 focusedattention on the critical importanceof agricultural development, the roleof smallholder farmers, and theurgent steps needed to improvelivelihoods and food security andreduce rural poverty.

IFAD’s strength in knowledgegeneration was confirmed by theassessment of the United Kingdom’sDepartment for InternationalDevelopment (DFID), which notedIFAD as “a recognized source ofspecialized knowledge in the UNsystem”. In 2013 IFAD updated itsknowledge management frameworkto foster the exchange of knowledgeboth internally and with partnersand clients.

IFAD has also strengthened itsengagement in global policymakingand advocacy forums, including itsinvolvement in processes related tothe evolving post-2015 developmentagenda, in order to ensure that theconcerns of rural people are heard. In 2013 IFAD supported civil societyinvolvement in preparation for the2014 International Year of FamilyFarming to foster national andregional policy change in favour ofsmallholder and family farming.IFAD is also supporting the AfricanUnion’s 2014 Year of Agriculture andFood Security, and is a member ofthe Steering Committee.

As outlined in the IFAD Policy on theDisclosure of Documents approvedby the Executive Board in 2010, IFADstarted implementing a regime of fulldisclosure as of 1 January 2012. Theimplementation of the new policyhas contributed to further enhancingIFAD’s transparency, as well ascontributing to the learning agendaof sharing lessons and challengesfrom IFAD-funded activities. By early2014 IFAD had disclosed over700 documents.

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Strengthening financialmanagementIn order to strengthen its financialoversight, in 2011 IFAD established aseparate Financial OperationsDepartment, headed by a ChiefFinancial Officer, which is distinctfrom the new Corporate ServicesDepartment. In addition, theController’s and Financial ServicesDivision was reorganized and theTreasury Services Division wasstrengthened. The first-ever mid-yearbudget review was conducted in 2011.These changes are leading to greatereffectiveness and efficiency.

More efficient and more effectiveAs a result of the focus oneffectiveness and efficiency in the newbusiness model, IFAD is reducingcosts while maintaining quality. Forexample, the 2011 Report on IFAD’s

Development Effectiveness (RIDE)showed that overall developmenteffectiveness increased despitereduction in administrative overheadcosts. The efficiency ratio for 2012was 11.4 per cent, significantly betterthan the target of 13.5 per cent in theResults Measurement Framework(RMF). IFAD was ranked fourthamong 31 donors in the area ofmaximizing efficiency by the Centrefor Global Development of theBrookings Institution.

The 2012 Annual Report on the Results

and Impact of IFAD Operations of theIndependent Office of Evaluation(IOE) suggested that the performanceof IFAD-funded projects was betterthan the agricultural-sectoroperations of several majorcomparator institutions. Thecorporate-level evaluation onefficiency in 2012—the firstevaluation of its kind carried out inmultilateral and bilateraldevelopment organizations—foundthat IFAD was making progress ininstilling a stronger budgetmanagement culture.

In IFAD’s EighthReplenishment period aprogramme of loans andgrants worth US$2.9 billionwas delivered – withcofinancing total investmentwas US$7.0 billion

“Before the project started we used to live on our meagreresources. We had some land and used to grow some localcrops and to own livestock, like cows and goats. And wewould live our lives using those resources. There’s no industryor factory in this area. There’s no college to help one progress.There’s no way of doing business here.“With the coming of this road and the coming of the project wewere given a way to progress. The project set up schools hereand also started businesses. It brought new ideas. When onesees and hears new things one learns from them.”Abdul Shakoor, sheep farmer, Pakistan

©IFAD/Asad Zaidi

16

©IFAD/A. Z

aidi

SEEING ISBELIEVING

A series of independent evaluationshave shown that IFAD’s change andreform programme is bearing fruit.The assessment of the MultilateralOrganisation PerformanceAssessment Network (MOPAN)carried out in 2010 recognized IFAD’sResults Measurement Framework forits use of quality indicators and clearhierarchy of results. Another MOPAN

assessment in 2013 found that theFund had made steady improvementover the previous three years, and wasinstilling a results-oriented culturethroughout the organization.

The United Kingdom’s Departmentfor International Development(DFID) conducted a Multilateral AidReview that recognized that IFAD has

IFAD’s key strengths include both its corporateand country focus on results. MOPAN assessment

“

100

80

60

40

20

0% o

f pro

ject

s m

oder

atel

y sa

tisfa

ctor

y or

bet

ter

Householdincome andnet assets

2006-2009

Agricultureand foodsecurity

Naturalresources andenvironment

Human, socialcapital and

empowerment

Institutionsand policies

Markets Overall ruralpoverty impact

2010-2013

Rural poverty impact at project completion

”

17

“a unique mandate that is critical toreaching the MillenniumDevelopment Goals”. It also singledout IFAD’s ability to change andtransform: “IFAD learns fromevaluation findings, implementsrecommendations, monitors andreports back to the Board”.Independent reviews have not onlyverified that IFAD is an institutionthat is able to reform itself, they havealso confirmed that the reforms nowunder way are taking IFAD in theright direction.

This is confirmed by the findings ofIFAD’s Independent Office ofEvaluation, which found that “Theshift to direct supervision andimplementation support has had ahuge impact on the work of CPMs[country programme managers], andhas set in motion a gradual shift of thecentre of gravity of IFAD’s work fromheadquarters to the field. Togetherwith the outposting of CPMs, thischange will create great opportunitiesin terms of enhancing efficiencies anddevelopment effectiveness”.

It has a fully independent Office of Evaluationthat strives to be at the forefront of goodpractice in evaluation. DFID Multilateral Aid Review

“

”

CHANGE FOR THE BETTERBangladesh: land titles approved for over 1,200 poor families onnewly accreted coastal landsChina: in Ningxia and Shanxi, 14,000 hectares of naturalpastureland restored Viet Nam: 2,500 village savings and credit groups established,serving 26,000 members

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In the key area of gender, theIndependent Office of Evaluation hasfound that “IFAD operations are verygood at promoting gender equalityand women’s empowerment, an areain which the Fund is developing acomparative advantage.”

The Australian multilateralassessment of 2012 highlighted IFADmanagement’s track record inorganizational change and ability tomake difficult decisions. It also gaveIFAD a strong rating for cost andvalue consciousness, as well as itsfocus on results. A 2011 Swedishassessment of IFAD noted that IFADworks in a results-focused way andcommended reforms such as theintroduction of the Managing forDevelopment Results framework.

IFAD’s results have received otherkinds of recognition as well. In 2013,The U.S. Treasury recognized IFADand the African Development Bankwith the Development ImpactHonors award for their work inUganda. Also in 2013, the UnitedNations Climate Change Secretariatbestowed the Momentum for ChangeLighthouse Activities award on ASAP.

Giving women the sameaccess as men to agriculturalresources and inputs couldincrease production onwomen's farms by 20-30%,reducing the number ofhungry people in the world by 100-150 million

80

60

40

20

0

People receiving services from IFAD-supported projects

2011

59.1million

2012

78.7million

2010

43.1million

milli

on

“Before the project, we didn’t know anything about lifeinsurance or savings. When a mother died, her children wereoften abandoned. I raised many of these abandonedchildren. When you are poor all you have to leave yourchildren is more poverty.“But this life insurance is very good for all of us. Now we willnot have to suffer as much.”Margarita Puma Taco, Sierra Sur project, Peru

©IFAD/Pablo Corral Vega

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THE FUTUREOF IFAD IN ACHANGINGWORLDDespite the serious fiscal constraintsfaced by donors and governments, it isclear that IFAD’s message is gettingthrough. IFAD’s Member States sent astrong signal when they decided tosubstantially increase the size of thetarget for the Fund’s programme forthe period of its Ninth Replenishment(2013-2015), which coincides with thefinal years of the global campaign toachieve the Millennium DevelopmentGoals (MDGs). IFAD received strongand renewed commitments fromtraditional donors, emergingeconomies and countries that aremore often aid recipients – a powerfulshow of support.

With its proven ability to deliverresults, IFAD has achieved new statureas a leader in combating rural poverty.Over the coming years the Fund willbuild on its successes to enlarge itsprogramme, its impact, its efficiencyand its presence in the field.

For IFAD’s Ninth Replenishment,Member States, recognizing that“IFAD is highly successful in reducingpoverty and food insecurity”, agreedto a Member contributions target ofUS$1.5 billion and a programme ofloans and grants of US$2.95 billionto be delivered over the period 2013-2015.

In addition, an ambitious set ofcommitments was agreed, which will both deepen and extend reformand also expand the impact IFADmakes on rural development, poverty reduction and food andnutrition security.

In the Ninth Replenishmentof its resources, MemberStates announced a targetof a 25% increase overIFAD’s Eighth Replenishment

21

©IFAD/D.A. H

arvey

Where we’re headedThe Brookings Institution report onIFAD found that “scaling up is acritical element of IFAD’s mission, inlight of independent evaluations ofits interventions, and its future role asan IFI and a UN agency”. Withenhanced resources and an enlargedprogramme of work, IFAD aims toreach 90 million people during theperiod of the Ninth Replenishment.

IFAD’s ability to scale up and reachmore beneficiaries is demonstratednot just in evaluations, but on theground, in communities and people’slives. The number of peopleobtaining services through IFAD-supported projects jumped from

29.2 million in 2007 to 59.1 millionin 2010 and to 78.7 million in 2012.In 2012, 4.46 million people receivedtraining in crop production(compared with 1.72 million in2008). In the same year, 1.51 millionpeople were trained in business andentrepreneurship, an eightfoldincrease over 2008. IFAD seestremendous untapped potential insmallholder agriculture, andespecially among some of its targetgroups, such as women and youth.They have the capacity to liftthemselves and others out of hungerand poverty, if given the chance.

Yes, we face a serious economic crisis. For much of theworld, fiscal austerity is the new order of the day. Yet evenin these difficult times, we cannot afford to cut loosethose who are hardest hit. We cannot break our solemnpact with the world's poor.United Nations Secretary-General Ban Ki-moon, 7 Billion Day, 31 October 2011

”

“

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Demand for IFAD-supportedprogrammes exceeds supply. This hasled to the exploration of alternativeand innovative financing to extendIFAD’s resources beyond what can begenerated through the replenishmentprocess. The Additional ResourceMobilization (ARM) initiative islooking at ways for IFAD to scale upinvestment in agriculture, bring abouttransformation in smallholderagriculture and promote equitableand resilient growth. Among themodalities under consideration aresupplementary funding, South-Southcooperation, Islamic finance andleveraging private-sector resources.

Partnerships and involvement of theprivate sector will continue to beessential parts of IFAD’s strategy.While an estimated nine out of tenjobs in the developing world are inthe private sector, the public sectorstill has a crucial role to play inproviding the appropriate policyenvironment and the infrastructureneeded for businesses to thrive andfor economies to grow.

Farming is a business, whatever the scale.When poor rural farmers are given the tools andknowledge they need to connect to valuechains and are able to organize themselveseffectively, there are significant gains inhousehold income and food and nutritionsecurity. Whole communities benefit. Kanayo F. Nwanze, IFAD President

“

”

23

CHANGE FOR THE BETTERBrazil: more than 15,000 households received technical training;4,500 people learned to read; 500 rural libraries were set up;14,000 women were assisted in having their citizenship recognizedHaiti: an IFAD-supported project enabled more than 400 community-based organizations to support 24,000 members,of whom 60% were womenPeru: 16,000 families reached, 500 business plans developedwith producer organizationsPlurinational State of Bolivia: 8 million trees planted and over800,000 hectares of terraces created to reduce erosion andminimize the effects of desertification

The period of the NinthReplenishment coincides with thefinal years before the 2015 target dateof the MDGs, and the developmentof a new post-2015 agenda. TheMember States have set operational,institutional and financial goals forthe Fund, which will strengthen itscontribution to achieving the firstMDG of reducing by half theproportion of poor and hungrypeople, as well as deepening its focuson gender equality and women’sempowerment. Reforms will alsocontinue enhancing IFAD’s efficiencyand value-for-money.

We believe – and have alwaysbelieved – that the interlocking goalsof food and nutrition security andpoverty reduction will be won orlost in the rural areas of developingcountries. IFAD will continue tofulfil its historical mandate and togrow as an organization in order tomeet the challenges in years to comeand to invest in rural people so that they can transform their livesand communities.

IFAD knows how to scale up and has done sosuccessfully many times. Brookings Institution ”“

24

Among the commitments for 2013-2015 are to:- Strengthen country leadership and ownership- Reduce delays in project implementation- Enhance IFAD’s efficiency, including through consolidationand deepening of human resources reforms

- Strengthen assessments of economic returns on investmentduring project design

- Increase focus on strategic long-term partnerships- Explore the scope for raising financing from other sources- Strengthen national monitoring and evaluation systems- Enhance IFAD’s results management system- Strengthen analysis of climate change and environmental issues in IFAD’s operations to supportinnovative approaches

- Promote expanded economic opportunities for rural women- Conduct impact evaluations to demonstrate value for money

These are some of the commitmentsthat will guide IFAD during thecoming years. They have been agreedupon with the Fund’s Member States,who recognize that investing insmallholder agricultural and ruraldevelopment on a long-term basis isone of the most powerful ways toeradicate poverty and hunger andstimulate sustainable and inclusiveeconomic growth. This is a strongendorsement of the mandate that hasguided the Fund since its inception.

With IFAD’s proven record ofdelivering value for money, itssuccessful business model and itscapacity to transform itself in responseto new challenges, it will continue toincrease its role as a leader in ruralagricultural development.

4

Despite the serious fiscal constraintsfaced by donors and governments, itis clear that IFAD’s message is gettingthrough. IFAD’s Member States sent astrong signal when they decided tosubstantially increase the size of thetarget for the Fund’s programme forthe period of its Ninth Replenishment(2013-2015), which coincides withthe final years of the global campaignto achieve the MillenniumDevelopment Goals. IFAD receivedstrong and renewed commitmentsfrom traditional donors, middle-income countries with emergingeconomies, and countries that aremore often aid recipients – apowerful show of support.

IFAD: replenished,reinvigorated, transformedWith its proven ability to deliverresults and the significant progressunder the Change and ReformAgenda, IFAD has achieved newstature as a leader in combattingrural poverty. Over the coming yearsthe Fund will build on its successesto enlarge its programme, its impact,its efficiency and its presence in the field. For IFAD’s Ninth Replenishment,Member States, recognizing that“IFAD is highly successful in reducingpoverty and food insecurity,” agreedto a Member contributions target ofUS$1.5 billion and a programme of loans and grants of nearly

Agricultural and rural development is essential forenduring food and nutrition security. It is a pathway toemployment, wealth creation and economic growth. It is the basis for social cohesion. It is the foundation forpolitical stability, gender equality and the precursor forglobal peace and security.Kanayo F. Nwanze, IFAD President ”

“

IFAD is an international financial institution and a specializedUnited Nations agency dedicated to enabling poor rural peopleto improve their food and nutrition security and escape poverty.IFAD champions smallholder farmers and rural entrepreneurs ininternational forums, providing a global platform to spurdiscussion of rural policy issues and increase awareness of why greater investment in agriculture and rural development is essential.

The Fund provides low-interest loans and grants to developingcountries to finance innovative agricultural and rural developmentprojects. It is among the top three multilateral institutions workingin agriculture in Africa. Since its creation in 1977 it has: • Mobilized over US$22 billion in cofinancing and funding fromdomestic sources for rural development, in addition to IFAD’sown contribution of about US$15.8 billion in loans and grants

• Supported 948 programmes and projects in partnership with120 recipient governments

• Empowered some 430 million people to grow more food, learnnew skills, start small businesses, build strong organizationsand gain a voice in the decisions that affect their lives

Cover photo: A fish vendor at Mbour harbour, Senegal. ©

Emmanuel B

akary

International Fund for Agricultural Development

Via Paolo di Dono, 44 - 00142 Rome, ItalyTel: +39 06 54591 - Fax: +39 06 5043463E-mail: ifad@ifad.orgwww.ifad.orgwww.ruralpovertyportal.org

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June 2014