Download Geneva Seminar, 2-3 October 2003

IFAD Experience and Strategy
for Poverty Alleviation
in Central and Eastern Europe and the Newly
Independent States
Seminar on Policies for Achieving the Millennium Development Goals in
the ECE Region: Reducing Extreme Income Disparities
Geneva 2-3 October 2003
Active Borrowing
Countries
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Albania
Armenia
Azerbaijan
Bosnia & Herzegovina
Georgia
Moldova
Romania
The Former Yugoslav
Republic of Macedonia
Geneva Seminar, 2-3 October 2003
Outline of Presentation
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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
IFAD Portfolio in the
CEN Region
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Approved projects: 17 in 8 countries
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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
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Moldova (2004), Azerbaijan and Armenia (2005)
for a total of USD 40 million
Geneva Seminar, 2-3 October 2003
Profile of IFAD Portfolio
by Country
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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
Geneva Seminar, 2-3 October 2003
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
Lessons Learned as Related
to Institutions & Policies
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Institutional vacuum for
support services to farmers
Policy change is needed to
invest in private sector capacitybuilding
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Weak rural financial services
Appropriate legal and
institutional enabling
environment is needed to
promote MFI in rural areas
Geneva Seminar, 2-3 October 2003
Lessons Learned as Related
to Institutions & Policies
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Unreliable output markets
Market reforms are needed, to enable
private sector investment
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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
Lessons Learned as Related
to Institutions & Policies
• 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
Geneva Seminar, 2-3 October 2003
Dimensions of Rural Poverty:
How Many Poor?
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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
Dimensions of Rural Poverty:
Qualitative Aspects
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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
Dimensions of Rural Poverty:
Vulnerable Groups
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Mountain area communities
Rural wage earners
Rural women
The elderly
Ethnic minorities
Internally Displaced Peoples
(IDPs) and refugees
Geneva Seminar, 2-3 October 2003
IFAD Strategy:
Strategic Objectives
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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
IFAD Strategy:
Operational Approach
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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
IFAD Strategy:
Opportunities for IFAD
and Catalytic Role
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Institutional development
Capacity building at many levels
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Market linkages
Facilitate the building of private sector
marketing institutions
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On-farm investments
Capital and technological assets
Geneva Seminar, 2-3 October 2003
IFAD Strategy:
Opportunities for IFAD
and Catalytic Role
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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
IFAD Contacts
 A. Slama, PN Division Director, and/or for:
 Albania, Armenia and FYR Macedonia
 Henning Pedersen, Country Portfolio Manager, IFAD Rome
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• Tel: +3906-5459-2635, e-mail: [email protected]
Azerbaijan, Georgia and Bosnia & Herzegovina
 Abdalla Rahman, Country Portfolio Manager, IFAD Rome
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• Tel: +3906-5459-2348, e-mail: [email protected]
Romania and Moldova
 Pietro Turilli, Country Portfolio Manager, IFAD Rome
• Tel: +3906-5459-2303, e-mail: [email protected]
Geneva Seminar, 2-3 October 2003