DEVELOPMENT COMMITTEE
            (Joint Ministerial Committee
                       of the
   Boards of Governors of the Bank and the Fund
                       on the
Transfer of Real Resources to Developing Countries)

ONE HUNDRED AND ELEVENTH MEETING
   WASHINGTON, DC – APRIL 24, 2025


                                                      DC/S/2025-0019
                                                       April 24, 2025




                   Statement by

                   Alvaro Lario
                    President

 International Fund for Agricultural Development
                                                Statement by

                                                Alvaro Lario
                                                 President

                           International Fund for Agricultural Development

                              111th Meeting of the Development Committee

                                               April 24, 2025
                                              Washington, DC

We live in a world grappling with persistent development challenges such as hunger and poverty,
compounded by escalating uncertainties in the global development system and development finance.

Challenging times also bring opportunities. International Financial Institutions (IFIs), with their leverage-
based financial models, are pivotal in scaling up financing to tackle our most urgent development obstacles.
Enhanced collaboration among IFIs, catalysing further their unique strengths, is essential.

While numerous development needs demand attention, reversing the alarming rise in hunger and food
insecurity must be a top priority. In this context, I congratulate President Banga and the World Bank Group
for their bold commitment last fall to double investments in agribusiness and finance by 2030. This
commitment is both timely and crucial.

IFAD is ready to further expand and deepen our collaboration with IDA and the World Bank Group. IFAD's
investments in local capacities, smallholder-based value chains, involving rural businesses and agricultural
enterprises, and our expertise on the poorest and most vulnerable, bring significant added value to the efforts
of other IFIs. Greater collaboration among IFIs is vital to amplify the overall impact of the development
financial architecture. We know that if you want to go far, go together.

IFIs must optimise their balance sheets to significantly scale up development finance. Like IDA, IFAD
utilizes its balance sheet capacities and highest credit rating to mobilize sustainable financing from private
capital markets. Our credit rating has enabled us to diversify our funding sources and expansion of our
financial products, including executing capital market issuances in the form of private bond placements,
which complement Member State core contributions.

By enhancing financial sustainability and operational efficiency, and by assembling finance from donors,
national governments, private sector partners, and rural beneficiaries themselves, IFAD ensures that every
donor dollar generates a substantial multiplier effect and delivers maximum impact.

This catalytic effect is precisely what the development finance system urgently needs today: delivering
more impact for taxpayers’ dollars.
We recognize that today’s challenges are immense, but band-aids won't cure food insecurity or bring peace
and security. We need long-term solutions that address the underlying causes and foster self-reliance. When
we focus on addressing the root causes of food insecurity, we unlock the potential for sustainable growth,
development, and a brighter future for all.

Strategic partnerships and targeted investments by IFIs must empower communities to build resilient
economies, secure sustainable livelihoods, and improve food security. These efforts not only alleviate
poverty and hunger but also foster stability, reducing the risk of conflict and migration, thus increasing
national and regional security.

At IFAD, we believe that collaboration and partnerships with the private sector are particularly crucial to
effectively support the rural poor. Rural micro, small, and medium enterprises play a key role through their
work in processing, transport, and market access, which are essential for delivering nutritious food to
consumers and diversifying incomes. Private sector partnerships also bring in much-needed investment,
innovation, and expertise that can drive sustainable development in rural areas.

These partnerships help create job opportunities, improve market access, and foster entrepreneurship among
rural communities. Ultimately, working with the private sector enables us to address the root causes of
poverty and hunger more effectively, leading to stronger, more resilient rural economies.

IFAD welcomes the Development Committee’s focus on the private sector and job creation because,
without business investment, economies and people will continue to suffer under the weight of global
challenges.

IFAD was created to address the challenges in the "last mile" of rural areas but we have discovered that
investing in these regions is actually the "first mile" towards achieving lasting development.




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