Programme Management DepartmentJanuary 2002

Programme Management DepartmentJanuary 2002

• Introduction

• Regional Overview

• Rural Poverty

• IFAD Experience

• IFAD Strategy

The Strategy Formulation Process

INTRODUCTIONINTRODUCTION

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Regional Poverty

Assessment

Conference in Santiago de Chile

and Managua

IFADFramework

2002-2006

Latin America and the Caribbean Retreat,

Rome, January 2002

Internal IFADWorkshops and Management

Review

IFAD Governing Council, Rome, February 2002

Seminar in Central America,

June 2002

DRAFS STRATEGY

FINAL STRATEGY

REGIONAL OVERVIEWREGIONAL OVERVIEW

1950s to 1970s: Import Substitution1950s to 1970s: Import SubstitutionIt 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 Adjustment1980s: Stabilization and Structural Adjustment “The Lost decade”,GDP’s annual average rate of growth: -1%

1990s:1990s: Modest recovery Withdrawal of the state created an institutional vacuum Globalization - greater opportunities but increased in vulnerability Little progress on poverty reduction

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High degree of inequality

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

Six main features characterise the Region:

REGIONAL OVERVIEWREGIONAL OVERVIEW

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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.

RURAL POVERTYRURAL POVERTY

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Poverty and Extreme Poverty in Rural Areas

5

0

10

20

30

40

50

60

70

%

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

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

1980 1990 1994 1997 1999

Source: ECLAC, Social Panorama of Latin America, 2000-2001. Table 1

RURAL POVERTYRURAL 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 POVERTYRURAL POVERTY

• indigenous communities and groups• rural women• ethnic minorities

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

Two main types of poverty in rural areas:

Structural

Transitory

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RURAL POVERTY - Who are the poor?RURAL POVERTY - Who are the poor?

There are seven main types of productive and reproductive systems in the Region

• Andean herder

• Small farmers

• Subsistence and landless farmers

• Rural labourers

• Small indigenous communities

• Indigenous peoples from tropical rainforests

• Small-scale fishermen

In absolute terms, the largest group, 33% of the rural poor population of the Region, is made up of rural indigenous communities

In absolute terms, the largest group, 33% of the rural poor population of the Region, is made up of rural indigenous communities

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RURAL POVERTY - Who are the poor?RURAL POVERTY - Who are the poor?

• mountain slopes in subtropical zones and arid and semiarid plateaux;• humid and semi-humid tropics;• subtropical valleys; and• coastal plains.

More than 90% of the rural poor population of the Region is concentrated in four major ecological areas:

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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RURAL POVERTY - Location of Rural PovertyRURAL POVERTY - Location of Rural Poverty

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 EXPERIENCEIFAD EXPERIENCE

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

IFAD EXPERIENCE- Lessons learnedIFAD 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:

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Opportunities to reduce rural poverty in the RegionOpportunities 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 Development and regulation of rural labour markets Access to land and property rights

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• Empowerment of the rural poor• Taking advantage of market opportunities• Engaging in Policy Dialogue• Partnership• Cross-fertilization

IFAD’s strategy in the Region includes the following elements:

• Gender• Sustainable agricultural production and natural resource use

Two cross-cutting themes

IFAD STRATEGYIFAD STRATEGY

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ConstraintsConstraints

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IFAD STRATEGYIFAD STRATEGY

TAGs: MERCOSUR, FIDAMERICA

Projects, supported by TAGs FINCA and SERFIRURAL

Projects, supported by TAGs RUTA, SETEDER, PROCASUR, CIARA and CARUTA, PROMER and PREVAL

PROGENDER, PRAIA, TAG Camelids

Projects and ProgrammesProjects and Programmes

Lack of access to assets such as land, water and financial assets

Adverse macroeconomic policies

Problems in the management of heterogeneity, gender and ethnic issues

Poor investment in human and social capital, poor infrastructure and insufficient access and development of support services

OUR CHALLENGEOUR CHALLENGE

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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.

IFADIFAD

INTERNATIONAL FUND INTERNATIONAL FUND FOR AGRICULTURAL FOR AGRICULTURAL

DEVELOPMENTDEVELOPMENT

LATIN AMERICA AND LATIN AMERICA AND THE CARIBBEAN THE CARIBBEAN

DIVISIONDIVISION