“Home to 80 per cent of the world’s poorest people, the path to a sustainable future runs through rural areas. They remain rich in untapped potential - and inclusive rural transformation will therefore supercharge global development across all other dimensions,” said Alvaro Lario, President of the International Fund for Agricultural Development (IFAD) ahead of the G20 Development Working Group (DWG) Ministerial Meeting starting on Friday.

At a time when development budgets are shrinking, creating rural jobs through investment to improve food systems and agricultural value chains in the world’s developing countries has proven to be effective at lifting people out of poverty. Every dollar invested in transforming food systems can yield up to US$16 in social and environmental benefits. Small farms in rural areas can become a motor for economic growth if they have access to the financing, materials, technology, and markets they need to thrive instead of just survive.

“IFAD consistently advocates for small-scale producers and inclusive food systems at the G20 because investing in rural prosperity also drives resilience to climate change, reduces inequality, and reduces hunger,” said Lario.

The G20 Development Working Group (G20 DWG) brings together member countries and international organizations to chart a path for global development challenges and track progress on commitments. South Africa’s G20 Presidency—the first on the African continent—has been dedicated to putting development cooperation at the heart of the G20 agenda.

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The G20 DWG takes place at a time when progress toward achieving the Sustainable Development Goals (SDG) is insufficient. The latest available data show that only 35 per cent of targets are on track or making moderate progress, while nearly half are moving too slowly and 18 per cent have regressed. With an annual estimated financing gap of up to US$4.5 trillion needed to achieve sustainable growth for all, financial innovation and partnerships are crucial to making sure that the gains achieved so far in health, education, energy, and digital connectivity do not slow to a halt. 

IFAD President Lario will stress at the Ministerial meeting that fully leveraging the potential of national Public Development Banks (PDB), Multinational Development Banks (MDB), and international financial institutions like IFAD is one of the most effective ways to close this financing gap. For example, PDBs invest more than US$2.5 trillion annually, making them the backbone of the global financial architecture and of efforts to make food systems more sustainable, resilient and equitable.