Meeting the challenge by delivering results: IFAD Matthew Wyatt Assistant President, EAD April th Replenishment

Outline The challenge … We are facing enormous challenges in meeting MDG1, complicated by soaring food prices and climate change. Agriculture is part of the solution … Boosting agricultural production and productivity are key to addressing these challenges. Around 400 million smallholder farmers and their families – about 2 billion people – can and must play their part in growing the world’s food and storing its carbon. They cannot be wished away. The contribution that IFAD can make … These are IFAD’s clients. IFAD has a clear role to play in working with partners to enable poor rural people to produce and earn more and to work themselves out of poverty. IFAD has the capacity to increase its programme of work, catalyse additional investments, and make a bigger contribution to the elimination of rural poverty.

The triple scourge – poverty People living on <$1 per day Agriculture main livelihood 720 million people Rural

The triple scourge – climate change By 2020, yields from rain-fed agriculture could be reduced by up to 50% in some African countries. Coastal areas in South, East and Southeast Asia will be at greatest risk of flooding. In Latin America, the number of people at risk of hunger is projected to increase due to the decline of crop and livestock productivity.

The triple scourge – rising food prices “… a doubling of food prices over the last three years could potentially push 100 million people in low-income countries deeper into poverty...”

Agriculture is key Agriculture is driver of growth of wider economy GDP growth generated by agriculture is up to 4 times more effective in reducing poverty than growth in other sectors Provides important environmental services Livelihood for majority of people living on less than $1 a day

Underinvestment in agriculture People living on <$1 per day Agriculture main livelihood Rural 75% Agriculture 2.9% in 2006 Agriculture 4% ODA (18% in 1979) Public spending

IFAD’s comparative advantage A unique partnership between OECD, OPEC & developing countries, with a mandate to -work with partners to develop and implement innovative projects -empower poor rural men and women individually and through their organizations -capturing lessons and using knowledge as a basis for engaging in dialogue

RESULTS and REFORM: THE ACTION PLAN -New Strategic Framework -New results-based COSOP -Improved project quality at entry – QA and QE -Direct supervision of projects -Country presence -New policies and strategies for targeting, innovation, knowledge management -Meeting Paris Agenda commitments and contributing to UN reform -Corporate planning and performance management system -Report on IFAD’s Development Effectiveness

Results and Impact IEE 2004 ARRI PPR Action Plan or RMF targets Relevance Effectiveness Efficiency Sustainability Innovation Impact

Combining results with growth To scale up and play greater role in global efforts to achieve MDG1 a) USD 590 million represents POW net of PDFF. Annual growth of 10% is based on POW gross of PDFF (i.e. USD 605 mln). After 2007, POW net of PDFF.

Some key figures $3 billion programme of work $6 billion with co-financing Directly help over 50 million poor rural women and men to overcome poverty Many more would also benefit indirectly

Call to action “I call upon the international community to invest in smallholder farmers to help them to address the triple scourge of poverty, climate change and rising food prices. Their lives – and our common future – depend on it.” Lennart Båge 2008 Governing Council