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Programme Management

Department
January 2002
INTRODUCTION
The Strategy Formulation
Process
Internal IFAD IFAD
Regional Conference in
Workshops and Framework
Poverty Santiago de Chile
Management
Assessment and Managua 2002-2006
Review
•Introductio
n

•Regional
Overview DRAFS STRATEGY

•Rural
Poverty
Latin America and the IFAD Governing Seminar in Central
Caribbean Retreat, Council, Rome, America,
•IFAD Rome, January 2002 February 2002 June 2002

Experience

•IFAD
Strategy
FINAL STRATEGY

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REGIONAL
OVERVIEW

1950s to 1970s: Import Substitution


It had a number of weaknesses
➨ Urban bias at the expense of the rural sector
➨ Distorted allocation of resources
➨ Tax exemptions and subsidies created large
budget deficits
1980s: Stabilization and Structural Adjustment
➨ “The Lost decade”,GDP’s annual average rate of
growth: -1%
1990
s:
➨ Modest recovery
➨ Withdrawal of the state created an institutional
vacuum
➨ Globalization - greater opportunities but
increased in vulnerability
➨ Little progress on poverty reduction 2
REGIONAL
OVERVIEW

Seis principais caracteristicas da


regiao rural:
➨ Elevado grau de desqualificacao
➨ Indigenous populations represent the largest
group of the rural poor
➨ Rural areas are highly vulnerable to external
conditions
➨ Policy and institutional weaknesses
➨ Acute problem of access to land
➨ The region has been a place of experimentation of
economic development policies

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RURAL POVERTY

Poverty is a multidimensional
phenomena influenced by cultural,
social, and economic factors such
us:
● social and economic exclusion and
discrimination linked to ethnicity and
gender;
● lack of access, or limited access, to
services to meet basic needs of rural
families (health, education, housing, etc.);
and
● income levels below the minimum amount
needed to obtain the required set of goods
and services for the family. 63.7% of the
rural population is below the poverty line.
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RURAL POVERTY

Poverty and Extreme Poverty in Rural Areas

70
60
50
40
%
30
20
10
0
1980 1990 1994 1997 1999

Poverty % 59,9 65,4 65,1 63 63,7

Extreme poverty % 32,7 40,4 40,8 37,6 38,3

Source: ECLAC, Social Panorama of Latin America, 2000-


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2001. Table 1
RURAL POVERTY

• 77 million of rural people living under


the poverty line
• 46 million in extreme poverty
• 8 to 10 million of rural households are
headed by women
• 30 to 40 million women are partially or
totally responsible for agricultural
production and rural microenterprises
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RURAL POVERTY - Who are
the poor?

Two main types of poverty in rural areas:


Structural
•indigenous communities and groups
•rural women
•ethnic minorities

Transitory
Affects small farmers families and landless
people of both sexes, vulnerable to changes
resulting from structural reform processes,
economic crisis, social and political
instability, and globalization process 7
RURAL POVERTY - Who are
the poor?

• Andean herder
There are • Small farmers
seven main • Subsistence and landless
types of farmers
productive • Rural labourers
and • Small indigenous
reproductiv communities
e systems • Indigenous peoples from
in the tropical rainforests
Region
In absolute terms, the largestfishermen
• Small-scale group,
33% of the rural poor population of
the Region, is made up of rural
indigenous communities
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RURAL POVERTY - Location of
Rural Poverty

More than 90% of the rural poor


population of the Region is
concentrated
• mountain slopesin four major ecological
in subtropical zones and arid
areas:
and semiarid plateaux;
• humid and semi-humid tropics;
• subtropical valleys; and
• coastal plains.
The areas most extensively inhabited by
the rural poor are arid and semiarid
subtropical regions, which cover a total of
more than 9 million Km2 . 32% of the
total rural poor population of the
Region, lives in this area
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IFAD
EXPERIENCE

The main constraints in achieving


rural development and the
eradication of rural poverty are:
● Adverse macroeconomic policies.
● Political instability.
● Lack of access to assets such as land, water and
financial assets.
● Poor investment in human and social capital,
poor infrastructure and insufficient access and
development of support services.
● Problems in the management of heterogeneity,
gender and ethnic issues.
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IFAD EXPERIENCE- Lessons
learned
IFAD stands in a unique position to tackle
these constraints. Several lessons can be
identified from the evaluation of projects
financed by IFAD:

Reduction of rural poverty requires policies and
programmes that are clearly targeted

Efforts to improve incomes should focus not only on
agricultural production but also on generating
employment opportunities in rural and urban areas

The rural poor must be effectively involved in the
design and planning of rural development projects

The development of small towns and medium-sized
cities, and the promotion of economic corridors,
create an environment that is conducive to poverty
reduction

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Opportunities to reduce rural poverty
in the Region


Supporting native and minority ethnic
communities

Eliminating gender inequalities in rural
areas

Developing and strengthening social
capital

Competitiveness and globalization of
markets

Development technology for small
farmers and small rural businesses

Supplying effective technical assistance
services

Innovative local financial services

Microenterprises 1
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IFAD STRATEGY

IFAD’s strategy in the Region includes the following elem

• Empowerment of the rural poor


• Taking advantage of market
opportunities
• Engaging in Policy Dialogue
• Partnership
• Cross-fertilization

Two cross-cutting
themes
• Gender
• Sustainable agricultural production and
natural resource use

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IFAD STRATEGY

Constrai Projects and


nts Programmes
● Adverse macroeconomic policies TAGs: MERCOSUR, FIDAMERICA

● Lack of access to assets Projects, supported by TAGs


such as land, water and FINCA and SERFIRURAL
financial assets
● Poor investment in human and Projects, supported by TAGs
social capital, poor RUTA, SETEDER, PROCASUR,
infrastructure and insufficient CIARA and CARUTA, PROMER
access and development of and PREVAL
support services
● Problems in the management
of heterogeneity, gender and PROGENDER, PRAIA, TAG
ethnic issues Camelids

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OUR CHALLENGE


Programmes, Projects, Grants as integral part of
the Strategic Framework.

Create new Products/Instruments for:

Governments;

Grass root level Organization.

Facilitate the link between Knowledge/Processes
originating form projects activities with National,
Regional and Local Policies.

Handling of the Globalization Process.

IFAD trained Personnel to Manage these
Challenges.
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IFAD
INTERNATIONAL FUND
FOR AGRICULTURAL
DEVELOPMENT
LATIN AMERICA AND
THE CARIBBEAN
DIVISION