At the 48th Governing Council of the International Fund for Agricultural Development (IFAD), global leaders and financial experts underscored the strategic importance of investing in rural areas of developing countries to foster food security, economic growth, and stability.
Nearly half of the world’s 8.2 billion people reside in rural areas of developing nations, where hunger and poverty persist. These regions, primarily home to small-scale farmers, produce 70 percent of the food consumed in low- and middle-income countries, making rural areas the “first mile” for reducing poverty and ensuring global food security.
Alvaro Lario, President of IFAD, emphasized the critical role that stabilizing rural communities plays in achieving global development goals. In his opening remarks, Lario stated, “Investing in the productivity of rural economies creates jobs, increases incomes, and can serve as an engine of growth for entire nations.” He highlighted that small farmers are not only key players in local economies but also part of a global economy, and like any business, they need access to better technology, working capital, and markets.
King Letsie III of Lesotho, during the opening session, brought attention to the severe social and economic costs of malnutrition, which affect both developing and developed nations. He stressed that African nations lose between 1.9 percent and 16.5 percent of their annual GDP due to child undernutrition. Letisie called for increased political will to allocate a greater portion of national budgets to nutrition. “The overarching goal of these investments is to break the inter-generational cycle of poverty and malnutrition and create sustainable food systems,” he remarked.
Leaders at the session stressed the urgent need to invest in the ‘first mile’ of food production, where growth in agriculture has been proven to reduce poverty more effectively than growth in other sectors, especially in sub-Saharan Africa, where it is up to 11 times more impactful. Climate change was also a key concern, with leaders acknowledging its disproportionately negative impact on rural communities.
Giancarlo Giorgetti, Minister for Economy and Finance of Italy, highlighted IFAD’s unique focus on the “first mile,” noting its potential to drive real change in development efforts. “Rural economies are the backbone of Sierra Leone’s economy. With the right support, rural populations have the potential to sustain their economies and communities,” said Julius Maada Wonie Bio, President of Sierra Leone, emphasizing the need for climate-resilient solutions.
The council also highlighted the importance of collective action and partnerships to combat hunger, food insecurity, and poverty. Janja Lula da Silva, the First Lady of Brazil, discussed the potential of the Global Alliance Against Hunger and Poverty, emphasizing the importance of combining actions, policies, and funding to build resilience and social protection in rural areas.
Financing development took center stage, with leaders advocating for innovative financial solutions to channel more investments into rural areas. “To scale impact, we must prioritize deeper collaboration, mobilizing concessional financing to de-risk rural investments and attract private sector participation,” said Muhammad Al Jasser, President of the Islamic Development Bank, stressing the role of multilateral development banks in supporting smallholder farmers.
This session underscored the pivotal role that rural areas play in global food security and economic stability, calling for strengthened investments, better partnerships, and climate-resilient solutions to unlock their full potential.
Source :IFAD /Edited by Agriwatchgh
