Agriculture and development international fund for agricultural development ifad
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AGRICULTURE AND DEVELOPMENT: INTERNATIONAL FUND FOR AGRICULTURAL DEVELOPMENT (IFAD). Muhammad Daaniyall bin Abd Rahman133539 Mohd Faizal bin Abdullah133575 Muhammad Hamdi bin Amir Hamzah133301 Ainih binti Md Yusof131236 Nor Ashikin binti Mohd Mokhtar131861

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  • Muhammad Daaniyall bin Abd Rahman133539

  • Mohd Faizal bin Abdullah133575

  • Muhammad Hamdi bin Amir Hamzah133301

  • Ainih binti Md Yusof131236

  • Nor Ashikin binti Mohd Mokhtar131861

  • Harnani binti Manan131832

Introduction:Agriculture and development

  • Agriculture is the production of food, feed, fiber and other goods by the systematic growing/harvesting of plants, animals and other life forms.

  • Agriculture has played a key role in the development of human civilization.

  • The agriculture sector continued to contribute to the overall development of the economy and remained resilient, despite the economic slowdown.

International Fund for Agricultural Development

The International Fund for Agricultural Development (IFAD), a specialized agency of the United Nations, was established as an international financial institution in 1977 as one of the major outcomes of the 1974 World Food Conference.

IFAD is dedicated to eradicate rural poverty in developing countries.

IFAD's goal is to empower poor rural women and men in developing countries to achieve higher incomes and improved food security.

IFAD will ensure that poor rural people have better access to, and the skills and organization they need to take advantage of:

  • Natural resources, especially secure access to land and water, and improved natural resource management and conservation practices

  • Improved agricultural technologies and effective production services

  • A broad range of financial services

  • Transparent and competitive markets for agricultural inputs and produce

  • Opportunities for rural off-farm employment and enterprise development

  • Local and national policy and programming processes

Agricultural and development:The issues

We have highlighted 4 major issues:

  • Fund

  • Technology

  • Investment

  • Development

Fund:Defining Rural Finance

  • Rural finance -comprises formal and informal financial institutions, small and large, that provide small-size financial services to the rural poor, as well as larger-size financial services to agro-processing and other small and medium rural enterprises.

The Purpose of Rural Finance

  • The purpose of IFAD’s rural finance policy is to render such interventions more effective, thereby alleviating poverty and making people, their institutions and their countries sustainably richer.

  • It does not define where we stand, but where we go.

The Experience Of IFAD And Other Donors:Selected Cases

  • Honduras : Rural Savings Bank ( Cajas Rurales ) For The Landless Poor

  • United Republic Of Tanzania : Reforming Savings And Credit Cooperatives (SACCOS)

  • Bank Rakyat Indonesia (BRI) : The Agricultural Bank That Revolutionized Rural Finance


Since the end of World War II, the public sector of developed countries has helped transfer agricultural technologies to developing countries. During this period, most developing countries in Latin America and Africa, as well as some countries in Asia (like India and Thailand), have depended heavily on agricultural production to support their economies. So general development activities were often aimed at modernizing the agricultural sector.

Technology had change since Technologies have become embodied in physical products, like farm machinery or agrochemicals. Exponential growth in such industries has led to a rapid expansion of private firms that create, manufacture and sell technology. Private firms have also seen opportunities to profit by using complex seed improvement research to create and then distribute new crop hybrids. And so, the role of the public sector has also had to change.

After World War II, the United States began a number of initiatives to build up agricultural science in developing countries and help transfer technology.

  • Many of these activities had enormous effects in the developing world

  • International research centers developed technologies for major global food crops such as rice, wheat, corn, cassava, potatoes, millets and beans.

  • National research institutes used applied research to adjust these technologies to fit relevant ecological and production conditions.

  • The national and international centers worked closely together, sharing training and frequently involving scientists from both sides in visits and seminars.

  • National centers then provided advice and counseling to local farmers, diffusing the new knowledge into the country's production system.

Technologies that exist as marketable products, like seeds, agrochemicals and agricultural machinery, have grown quickly.

This has, in turn, fuelled private investment in agricultural research and technology, particularly by international corporations that benefit from economies of scale, and have access to world markets. But research activities in the private sector have limited scope.

Boosting farmer profit trough better links to market

Poor farmers in Tanzania are using modern information and communication technologies like mobile phones and even the Internet to get access to market information, and to learn how to build better and more collaborative market chains from producer to consumer.

Trading commodities via SMS

Lack of access to reliable and up-to-date market price information is a serious problem for smallholder farmers across Africa. Without this information, they are vulnerable to unscrupulous traders giving them prices at below-market rates. Furthermore, they are reluctant to diversify into different cash crops for fear of not finding a profitable market for their output


  • ADB is dedicated to poverty reduction in Asia and the Pacific.

  • Established in 1966 and headquartered in Manila .

  • ADB owned and financed by its 67 member countries.

  • It contributes low interest loans, guarantees, grants, private sector investments, and knowledge and advice to help build infrastructure and improve essential services such as health and education to boost quality of life.

  • ADB's focus is on encouraging economic growth, social development, and good governance, while promoting regional cooperation and integration in partnership with governments, the private sector, and non-government and international organizations.

  • Although most lending is in the public sector - and to governments - ADB also provides direct assistance to private enterprises of developing countries through equity investments, and loans. In addition, its triple-A credit rating helps mobilize funds for development.


1.Reducing rural poverty

  • an engine of growth early in the development process.

  • major force for poverty reduction.

  • example: China rapid growth in agriculture and decline in rural poverty from 53% in 1981 to 8% in 2001.

  • many rural households move out of poverty through agricultural entrepreneurship.

    - diversified their farming activities.

    - improving the productivity of land.

2.Creating business opportunities

  • offered attractive business opportunities such as high value products for

    - domestic markets :

    - dairy farming in Kenya

    - aquaculture in Bangladesh

    - vegetables for supermarkets in Latin America.

    - international markets :

    - coffee in Rwanda

    - horticulture in Chile

3.Creating occupation

  • major occupation for rural households, especially for the poor.

  • Food and Agriculture Organization of the United Nation (FAO) estimates that agriculture provides employment to 1.3 billion people worldwide, 97% of them in developing countries.

  • major source of income for rural households.

    • income comes both from production for self-consumption and from sales of agriculture products to the market.

4.Women participation

  • in Africa, women have broadened and deepened their involvement in agricultural production in recent decades.

  • in Mozambique, Rwanda, Uganda and Egypt, women are more likely to participate in agriculture self-employment.

  • by contrast, in Latin America and South Asia, women reportedly work less in agriculture self-employment.

  • women have also become active participants in farmers’ organizations that have been put in place under various projects.

  • in the North-East Agricultural Improvement and Development Project, which create more than 400 professional association, women represent about 27% of the total of about 10000 members.

5.Environmental sustainability

  • agriculture contributes to shaping the environmental sustainability of the growth process, across the development spectrum.

  • major use of scarce natural resources

    - 85% of the developing worlds’ fresh water withdrawal and 42% of its lands.

  • largely unrecognized provider of environmental services

    - managing watershed and reducing deforestation.


  • Agricultural and development can be defined as “father and son” because from the agricultural, the multi-achievement in development can be experience in the world today.

  • The IFAD plays a good role to encourage the agricultural development in the developing countries.

  • Financial services through rural finance, fund and loan were effective instruments in using agriculture for development.

  • The modernization contributes to technology practice in agriculture whereas the farmer used new machineries to commercialized the production.

  • The investment enhanced through years as the investors found the golden opportunities incur in the developing countries.

  • The agriculture definitely increases the personal income, improve the life style, and also contribute to the nation economics growth.

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