IFAD Strategic Framework 2011-2015 Concept Note

1. IFAD Strategic Framework 2011-2015 Concept Note Henock Kifle, CDS Kevin Cleaver, PMD September 2010

2. Background A new Strategic Framework (SF) covering 2011-2015 will be presented to the December 2010 Board A series of discussions have been held with IFAD staff and managers The aim today is to get your views on the major propositions around which the SF will be built.

3. Approach Followed The work on preparing the Strategic Framework: starts with the existing Strategic Framework; assesses global and regional developments as they affect IFAD’s mandate; analyses the opportunities and risks facing IFAD’s target populations; takes into account IFAD’s comparative advantages and results and lessons of recent years; and revises the current Strategic Framework taking into account the outcomes of the above analyses.

4. Presentation outline The scope and coverage of the Strategic Framework The new and evolving context for IFAD IFAD’s comparative advantage and role IFAD’s development objectives Principles of engagement Delivering the Strategic Framework Summary of Main Directions of Change

5. The Strategic Framework - Scope

6. The Strategic Framework - Coverage

7. PART II – The evolving context of the Strategic Framework

8. Factors determining rural poverty 8

9. The number of hungry people is rising

10. The goal of halving hunger is off-track (IFPRI)

11. The global development architecture is changing The general acceptance of the Aid Effectiveness Agenda (Paris and Accra) The “Delivering as One” initiative for UN system reform, the UN High Level Task Force on Food Security, World Bank Trust Fund (GAFSP-I), Committee on Food Security The “Delivering as One” initiative for UN system reform, the UN High Level Task Force on Food Security, World Bank Trust Fund (GAFSP-I), Committee on Food Security The emergence of new donor countries, such as Brazil and China, and the new South-South cooperation agenda The emergence of large foundations as major donors (e.g. Gates Foundation) Greater Private Sector investment/ private-public partnerships Greater Global Integration Remittances as a source of funding for rural development

12. Opportunities and Risks OPPORTUNITIES RISKS • Environmental degradation - the need to make agriculture both productive and sustainable • Climate change - the importance of adaptation & mitigation measures • Increasing competition for scarce resources: land & water • Slower growth of agriculture productivity in relation to growth of demand • Food price volatility • Aid fatigue & fiscal crisis • Smallholders pushed aside by corporate farms • Bio-fuels substitute for food • Increasing demand for agricultural products • Emergence of regional & global value chains • Biotechnology-driven agricultural research changing technology options • New markets for bio-fuels • More resources for agriculture in short term (L’Aquila, GAFSP, EU) • More commitment by governments, e.g. CAADP • Globalised trade & private investment in agriculture • Changing business models • Payment for environmental services more widespread 12

13. PART III – Implications for IFAD and IFAD’s comparative advantage and role

14. Implications for IFAD IFAD will need to: Consider smallholder farming as profit-making small businesses Promote integration of household economies into national, regional, and global markets Scale-up efforts to increase the assets, economic status, and decision-making roles of women Support programmes which create economic opportunities for rural youth Seek to reducing managerial, financial and marketing risks facing developing country agriculture by developing effective partnerships.

15. Implications for IFAD IFAD will: Take more of a leadership role, and provide program and project vehicles into which other donors and governments can invest Scale up its operations to have a larger impact on poor rural people Provide more agriculture policy advice Develop a more robust environmental policy to strengthen the positive environmental impact of projects, including in response to climate change Expand partnerships with the private sector, internationally and locally Strengthen its role as knowledge organization/broker providing knowledge products Facilitate South-South cooperation and knowledge sharing

16. IFAD’s comparative advantage • Clear and specific mandate recognized by all: targeted reduction of rural poverty and food insecurity • Accumulation over 30 years of experience, knowledge and skills in agricultural and rural development • Effectiveness increasing (80-90% of IFAD projects now effective at completion) • Trusted by developing countries 16

17. PART IV – IFAD’s development objectives

18. IFAD’s development objectives Overarching Goal IFAD’s overarching goal is to enable the rural poor to improve their lives by building viable and sustainable rural farm and non-farm enterprises that are integrated into national and global markets and value chains and that provide higher incomes and greater employment opportunities.

19. IFAD’s strategic objectives To achieve its overarching goal, IFAD will aim to ensure that, poor rural women, men and rural youth) have better and sustainable access to, and have developed the skills and organizational capacity they require to use effectively: • Natural resources (land, water, and biodiversity), that they manage efficiently and in a sustainable manner; • Improved agricultural technologies and effective production services; with which to enhance their productivity; • A broad range of financial services for productive and household needs; • Transparent and competitive agricultural input and produce markets, and integrationinto national and international value chains; • Opportunities for rural off-farm employment and enterprise development; which they can profitably exploit; • Local, national and international policy and programming processes, in which they participate effectively;

20. Outputs Results of IFAD-financed programmes and projects Policy changes at national and international level

21. Accountability Framework Direct local-level impact: increased incomes and enhanced food security Improved policy frameworks at national, regional and international levels Strengthened in-country capacities for pro-poor agriculture and rural development Strengthened organizations of farmers and rural people

22. Inputs Results-based COSOPs Projects Direct supervision and implementation support Enhanced country presence Structured knowledge sharing and knowledge products Policy dialogue Grants for global and regional initiatives

23. PART V – Principles of engagement

24. Principles of engagement – One size does not fit all • Low income countries • Basic agricultural and rural services, increasing public-private partnerships, farmer-led agriculture, private sector marketing and input supply, adaptation to climate change and rural environment, land issues, bringing women and vulnerable rural people into rural development remittances • Low-Income countries: • Basic agricultural and rural services • Increasing public-private partnerships • Private sector marketing and input supply • Adaptation to climate change • Land issues • Bringing women and vulnerable rural people into rural development • Fragile states • Institution building • Basic agriculture and rural services, • Country/sector-wide coverage • Focus on poor rural people in the poorestregions • Knowledge development and knowledge sharing • Private sector engagement • Middle income countries • Focus on poor rural people in the poorest regions; knowledge development and knowledge sharing; private sector engagement Differentiation between different regions and different country situations Differentiation by income and institutional development

25. Principles of engagement – Targeting • IFAD will: • Continue to target poor rural people who have the capacity to take advantage of economic opportunities; • Continue to employ specific targeting mechanisms to enable the poorer, women, indigenous people, the landless, to benefit; • Increase its focus on gender equality/women’s empowerment; • Increase its capacity to enable rural youth to engage in gainful economic activities • Co-finance programmes covering the entire rural sector and support measures to assure that benefits are oriented towards the poor and their participation in decisions; • Supplement its targeting policy with evidence-based guidance on targeting approaches

26. Principles of engagement – Empowering poor rural people Enabling rural people to build their assets, knowledge, skills and confidence Helping rural people to build their own collective and inclusive organizations; Increasing the decision-making and organizational capacity of the poor, especially of women and youth

27. Principles of engagement – Innovation, learning and scaling up Continued focus on developing innovative approaches Emphasis on knowledge generation and sharing Scaling up successful approaches and innovations and making it “mission critical”

28. Principles of engagement – Effective partnerships Strengthen key partnerships; Become an assembler of resources obtained from many sources and package them into larger programs; Eliminate non-performing partnerships;

29. Principles of engagement – Sustainability Continue improvements in project design quality to ensure sustainability of development impact Continue to promote national leadership of projects and programmes Ensure ownership of projects and programmes by rural people Scale up sustainable programs and projects Promote sustainable Public-Private Partnerships Focus more on the economics of its investments to assure more sustainable outcomes that contribute to agricultural and economic growth

30. PART VI – Delivering the Strategic Framework

31. Delivering the Strategic Framework –Managing for Development Results Implement a Medium-Term Plan (MTP) at all levels and across all units as the basis for all activities, budgets and staffing Align human and financial resources with strategic priorities Strengthen capacity to manage and monitor performance and instill a culture of accountability Work will be guided by country strategies and project designs, agreed with governments Use Results Measurement Framework (RMF) to measure the impact of work

32. Delivering the Strategic Framework – Managing Quality Continue to use and improve Quality Enhancement (QE) and Quality Assurance (QA) Support locally-developed approaches Ensure coherence of policies and guidelines Continue to develop Knowledge Management (KM) strategy to promote knowledge-sharing and innovation

33. Delivering the Strategic Framework: Managing Resources Refine and use the Medium Term Plan and zero-base budgeting Continue to develop Strategic Work Force Plan (SWP) Increase administrative expenditures for operations Benchmark process costs Explore outsourcing and service-sharing opportunities Strengthen Enterprise Risk Management Make better use and leverage information technology

34. Delivering the Strategic Framework: New Instruments • Traditional loans and grants will continue to be the main instruments but in addition: • Expand co-financing with the private sector • Set up investment funds to contribute to provide equity investments in private-public partnerships • Explore direct lending and/or equity investment in private enterprises; • Mobilize climate change funds and other funding sources.

35. Delivering the Strategic Framework – Communications and Advocacy Enhance role of communications and advocacy in corporate strategy, policy, programmes and projects Champion efforts to eradicate rural poverty and boost food security Advocate for increased investment in agriculture and rural development Amplify the voices of poor rural people particularly of women Share corporate objectives and results with key audiences Develop a corporate advocacy strategy and a corporate communications strategy

36. Conclusions: Main directions of change • New Paradigm for agricultural development: smallholder farming as a profit-making small business with potentials for integration into national and international value chains; • Holistic view of the rural economy: greater attention to enhancing the linkages between the farm and non-farm sectors and rural economic growth; • Empowering women; scale up efforts to increase their assets, economic status and decision making roles; • Rural youth: make farming attractive to the rural youth as a viable profit-making small-scale enterprise;

37. Conclusions: Main directions of change • Scaling Up: IFAD strategy to have broader impact on larger population of rural poor in developing countries; scale up • Policy Advocacy: IFAD to have impact on broader agriculture and food security policy • Assembler of Resources: IFAD to catalyse partnerships and resources for rural development with other donors, governments, rural organizations, private sector, NGOs • Knowledge Broker: IFAD to be a knowledge broker within and between countries • Environment and Climate Change Role: Higher Profile to focus more actively on rural environment issues and climate change 37

38. Thank you!