ROME, Sept. 21, 2024 — In the face of challenges such as 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 emphasize 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 achievable goals that can be overcome if we share the abundant resources available and work collaboratively 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 stressed 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 wise. Finance must be directed to where it is most needed. The farm and the initial stages of the food supply chain 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 brings together 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 | | +39 366 576 3706

SOURCE International Fund for Agricultural Development