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Active Borrowing Countries

Explore IFAD's impact on poverty alleviation in Central and Eastern Europe & the Newly Independent States through projects and strategies. Discover lessons learned, investment profiles & rural poverty dimensions.

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Active Borrowing Countries

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  1. IFAD Experience and Strategyfor Poverty Alleviationin Central and Eastern Europe and the Newly Independent StatesSeminar on Policies for Achieving the Millennium Development Goals in the ECE Region: Reducing Extreme Income DisparitiesGeneva 2-3 October 2003

  2. Active Borrowing Countries • Albania • Armenia • Azerbaijan • Bosnia & Herzegovina • Georgia • Moldova • Romania • The Former Yugoslav Republic of Macedonia Geneva Seminar, 2-3 October 2003

  3. Outline of Presentation • Overview of IFAD’s portfolio • Lessons Learned as Related to Institutions & Policies • Dimensions of Rural Poverty • IFAD’s Strategy and Policies Geneva Seminar, 2-3 October 2003

  4. IFAD Portfolio in the CEN Region • Approved projects: 17 in 8 countries • 11 ongoing and 6 completed • Total IFAD investment USD 178 million • Total project costs USD 380 million • Each of IFAD’s Dollars has generated USD 1.14 from cofinancing • New project pipeline (2004-2006): 3 in 3 countries • Moldova (2004), Azerbaijan and Armenia (2005) for a total of USD 40 million Geneva Seminar, 2-3 October 2003

  5. Albania: USD 35 million for 3 projects in irrigation, rural finance and mountain areas development - in addition to cofinancing from ISDB, UNDP, SNV and DFID Armenia: USD 36 million for 3 projects in irrigation and rural finance - in addition to cofinancing from IDA Azerbaijan: USD 18 million for 2 projects in irrigation, rural finance and mountain areas development - in addition to cofinancing from IDA Bosnia & Herzegovina: USD 33 million for 3 projects in rural development, livestock and rural finance in addition to cofinancing to EU, ISDB, IDA and OPEC Fund Profile of IFAD Portfolio by Country Geneva Seminar, 2-3 October 2003

  6. IFAD Investment by Country • FYR Macedonia: USD 16 million for 2 projects in rural finance and SME development - in addition to cofinancing from SIDA • Georgia: USD 14 million for 2 projects in irrigation, rural finance and mountain areas development - in addition to cofinancing from IDA • Moldova: USD 8 million for 1 project in rural finance and SME development • Romania: USD 16 million for 1 project in rural finance and SME development in mountain areas - in addition to cofinancing from GTZ Geneva Seminar, 2-3 October 2003

  7. Lessons Learned as Related to Institutions & Policies • Institutional vacuum for support services to farmers • Policy change is needed to invest in private sector capacity-building • Weak rural financial services • Appropriate legal and institutional enabling environment is needed to promote MFI in rural areas Geneva Seminar, 2-3 October 2003

  8. Lessons Learned as Related to Institutions & Policies • Unreliable output markets • Market reforms are needed, to enable private sector investment • Weak government institutions in policy formulation and regulation • Policy change is needed to use loan funds for institution building Geneva Seminar, 2-3 October 2003

  9. Transitional economy requires a strong public-private partnership Policy reform is needed to promote devolution of responsibilities to end-users through local institutions and civil society (such as water users associations for maintenance and management of irrigation infrastructure) Empowering end-users requires investment in capacity-building Incomplete land reform (inefficient land distribution, inactive land market, slow and complex land registration) Institutional reforms are needed to encourage land consolidation, speed up registration and simplify land transactions Lessons Learned as Related to Institutions & Policies Geneva Seminar, 2-3 October 2003

  10. Dimensions of Rural Poverty:How Many Poor? • 4.0 million rural poor live on less than two dollars per day. • 12.3 million rural poor live on less than four dollars per day. Geneva Seminar, 2-3 October 2003

  11. Dimensions of Rural Poverty:Qualitative Aspects • Income is not an adequate measure of rural poverty in the region. • Lack of control over resources. • Lack of education and health facilities. • Poor water and sanitation. Geneva Seminar, 2-3 September 2003

  12. Dimensions of Rural Poverty: Vulnerable Groups • Mountain area communities • Rural wage earners • Rural women • The elderly • Ethnic minorities • Internally Displaced Peoples (IDPs) and refugees Geneva Seminar, 2-3 October 2003

  13. IFAD Strategy:Strategic Objectives • Support the transition with sustainable programmes in agriculture to contribute to rural poverty reduction. • Income diversification for the rural poor. • Increase competitiveness of small farmers through appropriate grassroots institutional development and policy advice to governments. • Rational utilisation of national resources. Geneva Seminar, 2-3 October 2003

  14. IFAD Strategy: Operational Approach • Investing in innovative projects and pilot schemes. • Targeting the poorest groups with focus on causes of rural poverty. • Transferring of management functions to end-user groups. • Supporting research and capacity building programmes through grant financing. • Leveraging financial resources through partnership with other donors. Geneva Seminar, 2-3October 2003

  15. IFAD Strategy:Opportunities for IFAD and Catalytic Role • Institutional development • Capacity building at many levels • Market linkages • Facilitate the building of private sector marketing institutions • On-farm investments • Capital and technological assets Geneva Seminar, 2-3 October 2003

  16. IFAD Strategy:Opportunities for IFAD and Catalytic Role • Non-farm rural economy • Community development for sustainable use of common resources. • Rural financial institutions • Responsive to the needs of small farmers, rural women and the landless. Geneva Seminar, 2-3 October 2003

  17. IFAD Contacts • A. Slama, PN Division Director, and/or for: • Albania, Armenia and FYR Macedonia • Henning Pedersen, Country Portfolio Manager, IFAD Rome • Tel: +3906-5459-2635, e-mail: h.pedersen@ifad.org • Azerbaijan, Georgia and Bosnia & Herzegovina • Abdalla Rahman, Country Portfolio Manager, IFAD Rome • Tel: +3906-5459-2348, e-mail: ab.rahman@ifad.org • Romania and Moldova • Pietro Turilli, Country Portfolio Manager, IFAD Rome • Tel: +3906-5459-2303, e-mail: p.turilli@ifad.org Geneva Seminar, 2-3 October 2003

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