IFAD President Urges Davos Leaders to Invest in Rural Areas for Global Stability
Amid the overlapping crises of climate change, economic instability, and global conflicts, Alvaro Lario, President of the UN’s International Fund for Agricultural Development (IFAD), has called on global leaders to prioritize investments in rural areas to address poverty, hunger, and inequalities. Speaking ahead of the World Economic Forum in Davos, Lario emphasized the critical role rural economies play in global food security and stability.
“With three billion people living in rural areas where poverty and hunger are most entrenched, addressing these challenges through targeted investments is not just a moral obligation but a pathway to global stability,” Lario stated.
Rural Investments: A Key to Poverty Reduction
Research shows that growth in agriculture is two to three times more effective at reducing poverty than in other sectors. However, rural development has long been underfunded despite its transformative potential. Official Development Assistance (ODA) to agriculture has stagnated at just 4-6% of total ODA, far below the levels needed to meet rising global demands and adapt to climate change.
Small-scale farmers, who produce one-third of the world’s food, receive less than 1% of global climate finance—about $5 billion annually—while their estimated needs exceed $75 billion per year.
Lario stressed the importance of redirecting resources to empower small-scale farmers, create decent jobs for rural youth, and stabilize the global food supply:
“All these challenges—forced migration, food price inflation, and accelerating climate change—can be tackled by investing in rural areas. Such investments will deliver shared prosperity and a more stable world.”
Innovative Solutions for Rural Development
IFAD is leveraging partnerships with governments, businesses, and innovators to reimagine rural growth. As the first UN specialized agency, apart from the World Bank, to receive a credit rating, IFAD has raised over $720 million from global pension funds and insurers through sustainable bonds to support rural development.
The organization is also integrating cutting-edge technologies to support small-scale farmers. Through initiatives like Moonshots for Development, IFAD is backing start-ups, such as one in Kenya using artificial intelligence (AI) to help farmers detect infestations and take corrective action. Other tools, including e-wallets, drones, and blockchain, are being tailored for rural populations to improve productivity and resilience.
A Call to Action
With nearly 735 million people suffering from hunger and over 3 billion unable to afford a healthy diet, the stakes are high. Food inflation is worsening, and inequalities persist, with 1.7 billion people living in highly unequal economies.
IFAD’s experience over the past 45 years has proven the transformative power of investments in agriculture and rural economies. Between 2019 and 2021, IFAD programs increased the incomes of 77 million people and improved food security for 57 million.
“We must harness emerging technologies and collaborate across sectors to drive meaningful change,” Lario concluded. “The cost of inaction is too great—a more unequal world risks deepening hunger, instability, and conflict for everyone.”
As leaders gather in Davos, Lario’s message is clear: investing in rural areas is not just a solution to current challenges but a foundation for a sustainable and equitable future.
