8th Replenishment Programme priorities for Latin America and the Caribbean Josefina Stubbs Director of Latin America and the Caribbean, PMD 22-23 April 2008
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