(CORRIGENDUM) Summit of the Future: IFAD calls for political determination to reform the global financial architecture

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International Fund for Agricultural Development

Sep 21, 2024, 14:52 ET

ROME, Sept. 21, 2024 /PRNewswire/ -- Amid challenges like hunger, debt, inequality, and climate change, Alvaro Lario, President of the UN's International Fund for Agricultural Development (IFAD), will urge world leaders at the UN's Summit of the Future in New York to "recognize that a lack of resources is not the greatest barrier – it is the political determination to invest in solutions at the scale needed". Lario will underscore the need to reform the global financial architecture to fund climate adaptation and food systems transformation, ensuring fairness and efficiency to build a better future.

"Global challenges such as hunger and poverty are realistic goals that can be overcome if we share the great wealth of resources available and work together to reverse growing inequalities," said Lario from IFAD headquarters.

At the Summit, the President of IFAD will also remind leaders that 3 billion people live in rural areas and are disproportionately affected by extreme poverty and hunger. He highlighted the need to significantly increase financial support to small-scale farmers – who produce one-third of the world's food.

"It's not just about the money, but about how we use existing resources. We need to be smart. Finance must flow to where it is needed most. The farm and the first mile are where we should be investing: in rural roads, in irrigation systems, in markets, as well as in public goods and people," said Lario.

There is a significant financing gap towards rural areas and specifically in climate adaptation. At the same time, wealthy countries spend US$630 billion annually on subsidy policies that distort markets, hurt poor farmers, and damage the environment. IFAD proposes redirecting these incentives to promote healthy, nutritious, and affordable food.

With a range of innovative financial solutions designed to bridge current funding gaps, IFAD is using methods like "risk-sharing" and guarantees to channel financing from the private sector to rural populations and food systems.

As the first UN specialized agency to receive a credit rating and issue sustainable bonds on capital markets, IFAD has raised over US$646 million since 2022 from pension funds and insurers interested in investing in a better world.

IFAD assembles development finance to meet SDG 1 (No poverty) and SDG 2 (Zero hunger), leveraging the Fund's unique expertise in supporting small-scale producers, boosting their resilience and improving livelihoods in rural areas.

Contact: Alberto Trillo Barca | [email protected] | +39 366 576 3706

SOURCE International Fund for Agricultural Development