The International Fund for Agricultural Development president Alvaro Lario on Friday said that rural areas of the world were vital for building a sustainable future.
鈥楬ome to 80 per cent of the world鈥檚 poorest people, the path to a sustainable future runs through rural areas. They remain rich in untapped potential and inclusive rural transformation will therefore supercharge global development across all other dimensions,鈥� he said ahead of the G20 Development Working Group ministerial meeting.
According to him, at a time when development budgets are shrinking, creating rural jobs through investment to improve food systems and agricultural value chains in the world鈥檚 developing countries has proven to be effective at lifting people out of poverty.
Every dollar invested in transforming food systems can yield up to $16 in social and environmental benefits. Small farms in rural areas can become a motor for economic growth if they have access to the financing, materials, technology, and markets they need to thrive instead of just survive.
鈥業FAD consistently advocates for small-scale producers and inclusive food systems at the G20 because investing in rural prosperity also drives resilience to climate change, reduces inequality, and reduces hunger,鈥� said Lario.
The G20 DWG brings together member countries and international organisations to chart a path for global development challenges and track progress on commitments. South Africa鈥檚 G20 presidency鈥攖he first on the African continent鈥攈as been dedicated to putting development cooperation at the heart of the G20 agenda.
The G20 DWG takes place at a time when progress toward achieving the Sustainable Development Goals is insufficient. The latest available data show that only 35 per cent of targets are on track or making moderate progress, while nearly half are moving too slowly and 18 per cent have regressed.
With an annual estimated financing gap of up to $4.5 trillion needed to achieve sustainable growth for all, financial innovation and partnerships are crucial to making sure that the gains achieved so far in health, education, energy, and digital connectivity do not slow to a halt.
IFAD president Lario will stress at the ministerial meeting that fully leveraging the potential of national Public Development Banks, Multinational Development Banks, and international financial institutions like IFAD is one of the most effective ways to close this financing gap.
PDBs invest more than $2.5 trillion annually, making them the backbone of the global financial architecture and of efforts to make food systems more sustainable, resilient and equitable.
