Programme priorities for Latin America and the Caribbean

Josefina StubbsDirector of Latin America and the Caribbean, PMD

22-23 April 2008

8th Replenishment

The regional challenges and opportunities

Rural poverty and inequality have a negative effect on household and national economic growth

LAC holds 38% of the world’s tropical forests

Wide range of economies - IDA + MICs providing flexibility for pro-poor program and policy responses

Institutional development that allows for innovation at local level with global relevance

LAC generates knowledge and experience that is an asset for IFAD’s global program

IFAD’s comparative advantage in the region

IFAD reaches those marginalized areas as no other IFI does.

In Colombia, US$15 million helped 21 000 micro-entrepreneurs to increase their earnings by 23%, and generated 43 000 jobs.

33% of all beneficiaries of our program in Haiti are women.

22% of IFAD’s regional loan portfolio target indigenous people.

Responding to the emerging crisis in food prices

IFAD needs to step up its support selectively for the most affected Andean, Caribbean and Central American countries:

Expand availability of agricultural inputs (i.e. seeds) to increase food production and productivity

Strengthen synergies with other IFIs for higher impact and long term solutions

Increase investment in rural infrastructure and market institutions

2007-2008: Impact of projected food price increases on trade balances

Countries with TB losses shown in red

Countries with TB gains shown un blue

Addressing climate change

Community-based natural resource and forestry management

Market-based approaches (PES et al.) to conservation of forests and agricultural areas

Strengthen linkages between the PL portfolio and the climate change agenda, for example by setting up:

Risk insurance schemes, and establishment of commodity exchanges to enhance market transparency and predictability

Adaptation programmes to improve the resilience of the Caribbean islands which will be particularly affected by rising sea levels, to prevent

salinization of aquifers and continued availability of water irrigation

Leveraging remittances for rural poverty reduction

Replicate and upscale current programmes

Promote the development of financial services and institutions in rural areas

Scale-up innovative rural savings, micro-finance and micro-insurance schemes

Responding to the MICs agenda

Develop new financial instruments, tailored to characteristics of these countries, strengtheninglinks with the private sector

Build up additional knowledge-sharing instruments, including South-South cooperation schemes

Build on developments in information and communication technologies to further capacity-building schemes in rural areas