FAO and IDB in $1 billion agreement
Investment will spur agriculture in poor countries
15 November 2009, Rome – On the eve of the World Summit on Food Security, FAO and the Islamic Development Bank (IDB) announced a $1 billion agreement to fund agricultural development in poor countries that belong to both organizations.
It is hoped that the framework agreement, concluded today in Rome by Dr Ahmad Mohamed Ali, President of IDB, and FAO Director-General Jacques Diouf, will help leverage additional resources and bring total investment in the IDB-FAO programme to $5.0 billion by 2012.
This agreement comes at a critical moment, when the international community recognizes it has neglected agriculture for many years. Today, sustained investment in agriculture—especially smallholder agriculture—is acknowledged as the key to food security.
Under the agreement, IDB will contribute $1 billion over the next three years (2010-2012) in the framework of Jeddah Declaration—approved by the IDB Board of Executive Directors in June 2008—to finance priority projects in 26 least-developed IDB member countries.
FAO will provide the necessary technical support for the formulation and implementation of projects. The two institutions share the same vision and strategy and will continue working together in improving rural infrastructure, promoting local economic development and enhancing food security while strengthening and revitalizing their cooperation.