The idea for an International Fund for Agricultural Development (IFAD) arose at the 1974 World Food Conference. An agreement to establish the fund was adopted on June 13, 1976 and opened for signature on December 20th, once initial pledges of $1 billion had been received. The agreement took effect in 1977.
Aims and Activities
IFAD's main purpose is to mobilize resources for improved food production and better nutrition among low-income groups in developing countries. At least 20 per cent of the people in Africa, Asia and Latin America suffer the effects of chronic hunger and malnutrition, and the fund focuses its attention on the needs of the poorest rural communities, in particular small farmers, the landless, fishermen, livestock herders and poor rural women. The fund pays special attention to grassroots development and innovative approaches which build on local participation and the preservation of the natural resource base.
IFAD lends money, most of which is on highly concessional or low interest terms, and is concerned not only with raising agricultural production but with improving local prospects for employment, nutrition and income distribution. The fund works with many Cooperating Institutions, including the World Bank, regional development banks, other regional financial agencies and United Nations agencies. Many of these institutions co-finance IFAD projects.
For every dollar contributed by IFAD in support of its projects, it has mobilized over three dollars from other external donors. By April 30, 1995, IFAD had invested $4,215.1 million in loans for 402 projects in 104 developing countries. The total cost of these projects, including the contribution of beneficiary countries, exceeded $14.2 billion and on completion they should benefit about 150 million people. The projects were expected to generate additional food production of over 40 million metric tons in wheat equivalent.
Administration
The fund's operations are directed by a Governing Council, in which all 158 member states are represented. There are three categories of member states: developed countries (OECD), key contributor developing countries (OPEC) and other mainly recipient developing countries. However, IFAD's Governing Council in January 1995 adopted a resolution containing amendments to the Agreement Establishing IFAD. This would abolish the three category system of member groups, introducing a new voting system. Member countries would have two types of vote-their original membership votes and votes based on the size of contributions. These amendments will enter into force upon the completion of the Fourth Replenishment of the fund's resources.
Operations are overseen by the Executive Board, with 18 members and 17 alternates. The Board is chaired by the President of the Fund.
From Basic Facts About the United Nations. Published by United Nations Department of Public Information. Copyright 1995 United Nations.
