Rome - The heads of the International Fund for Agricultural Development (IFAD) and AFD today signed an agreement to work together to develop rural areas, which includes the provision of a €200 million loan to IFAD.
This loan gives the opportunity to increase investment in rural areas of developing countries and help achieve the Sustainable Development Goals of ending hunger and poverty by 2030.
"This is an important agreement between IFAD and AFD,” said Kanayo F. Nwanze, President of IFAD. “At a time when governments face constraints on development funding, and with the demand for IFAD’s services higher than ever, this loan gives us the opportunity to increase investment in rural areas of developing countries and help achieve the Sustainable Development Goals of ending hunger and poverty by 2030.”
“Through AFD, France wanted be the first member of state to support, under IFAD's sovereign borrowing framework, its 2016-2018 programme. This sovereign loan of 200 million euros marks, I am convinced, a new step in the partnership relations between our institutions. We both share a common dedication to achieving the Sustainable Development Goals. Joining our forces for agricultural, rural and local development is a key step in this direction”, said AFD’s Director General Rémy Rioux.
AFD, a public financial institution that implements policy defined by the French government, seeks to combat poverty and promote sustainable development. IFAD is an international financial institution and specialized United Nations agency focused on eradicating rural poverty. Both organizations share a similar approach to agricultural and rural development and prioritize investments in small-scale farming and share the goals of achieving food security and sustainable rural development.
The two organizations have already collaborated on a number of initiatives including the development of weather insurance products and support to farmers’ organisations in Africa. Through the Memorandum of Understanding and the loan agreement signed today, the two organizations commit to working closely together in the future, with a focus on increasing investments in rural finance, adaptation to climate change, gender equality and stemming migration.
IFAD invests in rural people, empowering them to reduce poverty, increase food security, improve nutrition and strengthen resilience. Since 1978, we have provided US$18.4 billion in grants and low-interest loans to projects that have reached about 464 million people. IFAD is an international financial institution and a specialized United Nations agency based in Rome – the UN’s food and agriculture hub. www.ifad.org
The heads of the Cassa depositi e prestiti S.p.a.
(Cdp) and the Groupe AFD today signed an agreement to enhance coordination and dialogue on common strategic objectives related to development cooperation.
“This agreement is one of the first steps in order to increase the international development role of Cdp, in the framework of the European development cooperation system,” said Antonella Baldino, Chief Business Officer of Cdp. “Cdp is the youngest member of the international development financial institutions community even if the oldest of the institutions. We will bring our freshness but we are conscious that a relation with AFD will increase our expertise and knowledge of our partner countries and the capacity to deliver development driven projects. This agreement is a confirmation of the good relations between the public financial institutions of the two countries.”
“AFD Group has high expectations for this partnership. We are both committed to and aware of the responsibility that the development banks have in contributing to the financing and the implementation of the new international framework for sustainable development and climate action adopted by the United Nations in 2015. We also share a strong willingness to contribute to the consolidation of the European development cooperation system. Finally and importantly, we both are committed to strengthening the synergies between the financing of sustainable development at the international and the national levels, which will be facilitated in France with the current strategic rapprochement between AFD and the French Caisse des Dépôts et Consignations” said AFD’s Director General Rémy Rioux.
AFD Group, a public financial institution that implements policy defined by the French government, seeks to combat poverty and promote sustainable development. Cdp, the Italian National Promotional Institution supporting the country’s economy, is Italy’s Financial Institution for Development Cooperation since January 2016. Both organizations have already started a fruitful collaboration, particularly at the European level.
Through the Memorandum of Understanding, the two organizations commit to working closely together on different aspects of the international and the European aid agenda and to developing cofinancing in common sectors and regions of intervention, with a focus on climate finance, private sector and innovating financing mechanisms. Cdp and AFD Group intend also to promote joint communication, particularly in education on sustainable development.
Cassa depositi e prestiti (CDP) is the National Promotional Institution that has supported the Italian economy since 1850. It finances public investments, nurtures international cooperation and is the catalyst for the country’s infrastructure growth. It backs Italian enterprises, helping them innovate and grow, while fostering their exports and international expansion. As the primary operator in social and affordable housing, CDP contributes to the growth of the Italian real estate sector and promotes urban transformation. CDP’s important stimulative role in Italy’s economy is evident in its 2016-2020 Business Plan. During this five-year period, CDP will inject €160 billion, plus over €100 billion through public and private funds, into the economy to help drive Italian growth.
AFD and the French National Assembly Host Global Launch of World Bank Study on the Role of Governance and the Law in Promoting Development
AFD and the World Bank today co-hosted an international conference at the National Assembly to launch a new World Bank study which urged developing countries and international development agencies to rethink their approach to governance, as a key to overcoming challenges related to growth, equity, and security.
The 2017 World Development Report: Governance and the Law explores how the unequal distribution of power in a society interferes with the effectiveness of progressive policies, which aim to improve people’s lives. According to the report, power asymmetries help explain, for example, why model anti-corruption laws and agencies often fail to curb corruption, why decentralization does not always improve municipal services; or why well-crafted fiscal policies may not reduce volatility and generate long-term savings.
Using country examples of state building in Somalia, curbing corruption in Nigeria, growth challenges in China, and slums and exclusion in Indian cities, the report says there are three winning ingredients of effective policies: commitment, coordination, and cooperation. These should form the three core functions of institutions needed to produce better governance outcomes.
In thanking the National Assembly and AFD for hosting the Paris launch event, and for their long-running support of his agency’s development, mission, World Bank Chief Economist, Paul Romer, said he hoped that the 2017 World Development Report would make a significant contribution to better understanding of governance and practical ways to improve it:
“Government officials do not act in a vacuum. Their decisions reflect the bargaining power of citizens who jockey with each other to advance competing interests. We need to confront a complicated political process in every country where power can influence the outcome of that process and we have to ask how can make sure that process leads to progress for everyone,” said World Bank Chief Economist Paul Romer.
After a panel discussion with leading development practitioners and economists on how to implement the new governance findings, Rémy Rioux, the Chief Executive Officer of AFD delivered closing remarks in which he said that the new report complemented AFD’s own research and operational commitment to innovative, durable solutions which advanced the development ambitions of developing countries and their people worldwide.
“Governance is a cornerstone of development. Making institutions work better improves the delivery of public policies and services essential for the people. Building effective, accountable, and inclusive institutions is a fundamental Sustainable Development Goal that all countries, North and South, share in common. AFD now counts governance within its mission for development and will exercise this mandate in some 90 countries and territories, with all levels of government and society, to turn this agenda into reality. Today, I am delighted that the World Bank and AFD engage together in the conversation on governance. The official launch of World Development Report on the topic, for the first time ever in Paris, coincides with the presentation of AFD’s Roadmap on governance. As practitioners of sustainable development, we are convinced that sound governance drives peoples ever closer to a world in common” concluded Rémy Rioux, the Chief Executive Officer of AFD.
► For more information, please visit: http://www.worldbank.org/wdr2017