Program review of the International Fund for Agricultural Development (IFAD)

program evaluation concludes that the International Fund for Agricultural Development (IFAD) is making a significant contribution to improving the economic condition of the rural poor in developing countries. IFAD's performance has been shaped by its unique, sole focus on increasing food production and income of small farmers and the rural landless; its reliance on other development organizations to implement projects; its requirement to maximize co-financing with other donors; its relatively small staff and funding level; the broad range of countries IFAD helps; and its accountability despite limited direct project control. Over the past 7 years, IFAD has helped implement 160 integrated rural development, irrigation, credit, and agricultural production projects in 84 countries. Despite the newness of most projects, increased yields and incomes are already apparent and IFAD is emerging as a leader in designing credit projects, promoting donor involvement in higher risk projects, and introducing improved technologies. IFAD's most successful projects have: focused on well-specified target groups and had clear mechanisms for reaching them; introduced quick-yielding food production techniques adapted to poor farmers or comprehensive packages of integrated services; emphasized large-scale production of low-cost foods; and fostered on-farm employment. Less successful IFAD projects have emphasized large-scale infrastructure investments which only indirectly benefit the rural poor. IFAD needs to increase its emphasis on and range of institutions chosen for co-financing projects; improve project monitoring and evaluation; try to reach more women; increase emphasis on priority U.S. development assistance policies, especially on long-term institutionalization of project management; and focus aid in fewer countries. Three appendices give details on IFAD projects.