IFAD urges leaders at global summit to reform financial systems

At the UN's Summit of the Future in New York on September 20, 2024, Alvaro Lario, President of the International Fund for Agricultural Development (IFAD), addressed global leaders about pressing issues such as hunger, debt, inequality, and climate change. He emphasized that the primary barrier to progress is not a lack of resources but rather the political will to invest in necessary solutions. Lario called for a reform of the global financial architecture to ensure adequate funding for climate adaptation and food systems transformation. Lario highlighted the plight of the 3 billion people living in rural areas, who are disproportionately affected by extreme poverty and hunger. He pointed out that small-scale farmers, who produce one-third of the world's food, require significantly increased financial support. The focus should be on smart investments in rural infrastructure, including roads, irrigation systems, and markets, to enhance the livelihoods of these farmers. The current financing gap for rural areas, particularly in climate adaptation, is substantial. Lario noted that wealthy countries spend approximately $630 billion annually on subsidy policies that distort markets and harm poor farmers. He proposed redirecting these funds to promote healthy and affordable food, thereby addressing both environmental and social issues. IFAD is leveraging innovative financial solutions, such as risk-sharing and guarantees, to channel private sector financing to rural populations. As the only UN specialized agency focused on development finance, IFAD aims to support small-scale producers and improve resilience in rural areas, ultimately working towards the goals of eradicating poverty and hunger.