As the world grows increasingly fragmented and the future uncertain, global leaders and financiers at the 48th Governing Council of the International Fund for Agricultural Development (IFAD) have emphasised the strategic importance of investing in rural areas of developing countries to achieve food and nutrition security, economic growth and stability.
Nearly half of the world's 8.2 billion people live in the rural areas of developing countries, where hunger and poverty are entrenched.
These regions are home to small-scale farmers who produce 70 per cent of the food consumed in low- and middle-income countries.
This makes rural areas the 'first mile' for reducing poverty and inequality, ensuring stability and feeding the world, said a media release on Wednesday.
"Stabilising , through investing in their productivity and their economies, is a major step to our common goal because it creates jobs, increases incomes and can be an engine of growth for the entire economy," said Alvaro Lario, President of IFAD, in his opening statement on Wednesday.
"At the core of our business model is the recognition that small farmers are business owners, part of a global and a local economy. And small farmers need what any other businesses need -- better technology, working capital, and access to markets," he said.
During the opening session, King Letsie III of the Kingdom of Lesotho highlighted the very high social and economic costs of all forms of malnutrition on developing and developed countries, calling it a long-term drain on development.
African countries lose between 1.9 per cent and 16.5 per cent of their annual GDP to child undernutrition. He asked member states to have the political will to increase the share of their national budget dedicated to nutrition, reads it.
"The overarching purpose of these investments should be to break the inter-generational cycle of poverty and malnutrition and to find long-lasting solutions that will help us create sustainable food systems that can delivr sustainable diets," said King Letsie.
Several leaders stressed the importance of investing in the 'first mile', where food production starts.
Estimates show that economic growth in agriculture is up to three times more effective at reducing poverty than growth generated in other sectors - and up to 11 times in sub-Saharan Africa. And they noted the cost of climate change on rural communities.
"We recognize IFAD's merit as a unique organization in the development landscape with its focus on the 'first mile,' where a real difference can be made," said Giancarlo Giorgetti, Minister for Economy and Finance of Italy.
"Rural economies are the backbone of Sierra Leone's economy. Yet they bear the brunt of climate change and other shocks. With the right support, rural populations have the potential to sustain themselves and their economies and their communities," said Julius Maada Wonie Bio, President of Sierra Leone.
Leaders acknowledged the power of collective action and partnerships. The IFAD Governing Council featured the Global Alliance Against Hunger and Poverty in a special session.
"The Global Alliance against hunger and poverty has a potential of contributing to stepping up results by combining actions to fight against hunger, food insecurity, poverty and the construction of resilience and social protection. We can indeed put together knowledge, policies, and funding in order to implement policies that can truly change realities," said Janja Lula da Silva, the First Lady of Brazil.
Financing development was also at the core of the discussions, with leaders calling on innovative solutions to channel more funding to rural areas.
"Multilateral development banks and development partners are stepping up efforts to support smallholder farmers. However, to scale impact we must prioritize deeper collaboration, mobilizing concessional financing to derisk rural investments and attract private sector participation," said Muhammad Al Jasser, President of the Islamic Development Bank. —UNB
