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Programme Management Department January 2002

Programme Management Department January 2002. Regional Poverty Assessment . Conference in Santiago de Chile and Managua . Internal IFAD Workshops and Management Review. IFAD Framework 2002-2006. DRAFS STRATEGY. Latin America and the Caribbean Retreat, Rome, January 2002.

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Programme Management Department January 2002

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  1. Programme Management DepartmentJanuary 2002

  2. Regional Poverty Assessment Conference in Santiago de Chileand Managua Internal IFADWorkshops and Management Review IFADFramework 2002-2006 DRAFS STRATEGY Latin America and the Caribbean Retreat, Rome, January 2002 IFAD Governing Council, Rome, February 2002 Seminar in Central America,June 2002 FINAL STRATEGY INTRODUCTION The Strategy Formulation Process • Introduction • Regional Overview • Rural Poverty • IFAD Experience • IFAD Strategy 1

  3. REGIONAL OVERVIEW 1950s to 1970s: Import Substitution It 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 Adjustment • “The Lost decade”,GDP’s annual average rate of growth: -1% 1990s: • Modest recovery • Withdrawal of the state created an institutional vacuum • Globalization - greater opportunities but increased in vulnerability • Little progress on poverty reduction 2

  4. REGIONAL OVERVIEW Six main features characterise the Region: • 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 3

  5. RURAL POVERTY 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. 4

  6. Source: ECLAC, Social Panorama of Latin America, 2000-2001. Table 1 RURAL POVERTY Poverty and Extreme Poverty in Rural Areas 5

  7. RURAL 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 6

  8. RURAL POVERTY - Who are the poor? Two main types of poverty in rural areas: Structural • indigenous communities and groups • rural women • ethnic minorities Transitory 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 7

  9. RURAL POVERTY - Who are the poor? • Andean herder • Small farmers • Subsistence and landless farmers • Rural labourers • Small indigenous communities • Indigenous peoples from tropical rainforests • Small-scale fishermen There are seven main types of productive and reproductive systems in the Region In absolute terms, the largest group, 33% of the rural poor population of the Region, is made up of rural indigenous communities 8

  10. RURAL POVERTY - Location of Rural Poverty More than 90% of the rural poor population of the Region is concentrated in four major ecological areas: • mountain slopes in subtropical zones and arid and semiarid plateaux; • humid and semi-humid tropics; • subtropical valleys; and • coastal plains. 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 9

  11. IFAD EXPERIENCE 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. 10

  12. IFAD 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: • 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 11

  13. Opportunities 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 12

  14. IFAD STRATEGY IFAD’s strategy in the Region includes the following elements: • Empowerment of the rural poor • Taking advantage of market opportunities • Engaging in Policy Dialogue • Partnership • Cross-fertilization Two cross-cutting themes • Gender • Sustainable agricultural production and natural resource use 13

  15. IFAD STRATEGY Constraints Projects and Programmes • Adverse macroeconomic policies TAGs: MERCOSUR, FIDAMERICA • Lack of access to assets such as land, water and financial assets Projects, supported by TAGs FINCA and SERFIRURAL • Poor investment in human and social capital, poor infrastructure and insufficient access and development of support services Projects, supported by TAGs RUTA, SETEDER, PROCASUR, CIARA and CARUTA, PROMER and PREVAL • Problems in the management of heterogeneity, gender and ethnic issues PROGENDER, PRAIA, TAG Camelids 14

  16. OUR CHALLENGE • 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. 15

  17. a IFADINTERNATIONAL FUND FOR AGRICULTURAL DEVELOPMENT LATIN AMERICA AND THE CARIBBEAN DIVISION

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