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Home / IAS Preparation / Secularism

International Fund For Agricultural Development (IFAD) - History, Aim, Objectives, Members & Focus Area

Last Updated on May 15, 2025
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IFAD stands for International Fund for Agricultural Development. It is a specialized agency of the United Nations Organisation primarily working to pull out the rural poor population from the clutches of poverty. The core mission of the International Fund for Agricultural Development (IFAD) is to revolutionize rural economies and food systems, fostering inclusivity, productivity, resilience, and sustainability. Our focus lies in investing in the millions of individuals facing the greatest risk of exclusion: impoverished, small-scale food producers, women, young people, and other vulnerable groups residing in rural areas.

In this article, we will learn about the International Fund for Agricultural Development and its objectives, functions, member states, and India-specific strategy of the International Fund for Agricultural Development.

International organizations are important for the UPSC IAS Exam preparation, and the International Fund for Agricultural Development is covered under the International Relations segment of the General Studies Paper 2 Syllabus of the UPSC IAS mains exam.

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Why is it in the News?

Recently, the International Fund for Agricultural Development President Alvaro Lario, on the sidelines of the CoP-27 summit at Sharm el-Sheikh, Egypt, warned against the world’s fertilizer shortage that has the potential to cause a massive impact on smallholder farmers amid the deepening global food crisis.

Read an article on the United Nations Development Program (UNDP) here!

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What is International Fund for Agricultural Development (IFAD)?

The International Fund for Agricultural Development (IFAD) commits to supporting rural communities, enabling them to enhance food security, family nutrition, and incomes. We strive to enhance their ability to withstand challenges, grow their enterprises, and actively participate in their developmental journey. As a specialized United Nations agency and international financial institution headquartered in Rome, within the UN's focal point for food and agriculture, IFAD has delivered grants and low-interest loans since 1978, totaling an investment of US$23.2 billion.

IFAD History

The International Fund for Agricultural Development is one of the main outcomes of the World Food Conference organized in 1974 in Rome in the backdrop of the global food crisis in the early 1970s, when widespread famine and malnutrition occurred due to global food shortages, primarily in Sahelian Africa.

The problem was not a result of the failure of food production but was due to structural problems related to poverty.

As a result, it was decided to establish an ‘International Fund’ to finance development projects in the agriculture sector, primarily for food production in developing countries. As a result of this, the IFAD was formed in 1977.

Aim of the International Fund for Agricultural Development

It aims to catalyze rural populations' global and regional progress to help them overcome poverty and achieve food security through remunerative, resilient, and sustainable livelihood.

International Fund for Agricultural Development works closely with poor rural people, donors, NGOs, Governments, and many other partners to eradicate rural poverty.

International Fund for Agricultural Development mainly focuses on country-specific solutions that involve increasing the access of rural poor people to financial services, technology, markets, and natural resources, including land.

IFAD - Work

The International Fund for Agricultural Development works closely with National governments through low-interest loans and grants for developing and financing programs and projects focused on helping the rural poor overcome poverty.

  • Since its inception, the International Fund for Agricultural Development has invested over 12 billion dollars in over 860 projects and programs reaching out to around 370 million poor rural populations.
  • The International Fund for Agricultural Development provides an important global platform to discuss important issues influencing the lives of the rural poor.

Operations under IFAD

The International Fund for Agricultural Development designs and projects in different natural, socio-economic, and cultural environments. Local-level programs in more than 17 countries and territories keep IFAD in direct and continuous contact with the rural poor.

  • The International Fund for Agricultural Development essentially bridges the gap between bilateral and multilateral donors and civil society represented by community-based organizations (CBOs) and non-government organizations (NGOs).

9 Major areas supported by IFAD

  • Agriculture development.
  • Rural infrastructure.
  • Financial Services.
  • Fisheries.
  • Livestock.
  • Capacity and Institution building.
  • Research/Extension Training.
  • Storage/Food processing/Marketing.
  • Small and Medium-scale Enterprise Development.

Primary Issues Shaping IFAD’s work

  • Food security.
  • Climate change.
  • Management of water and natural resources.
  • Land tenure.
  • Gender issues in agriculture and natural resource management.
  • Indigenous people.
  • Rural Finance.
  • Remittances.
  • Knowledge management.

Read an article on the International Labour Organization (ILO) here!

Objectives of the International Fund for Agricultural Development

Here are the objectives of the International Fund for Agricultural Development (IFAD):

  • IFAD's main goal is to reduce poverty in rural areas. This is done by improving food security and increasing the incomes of small-scale farmers and rural poor.
  • IFAD aims to increase food production and availability in developing countries. It does this by supporting smallholder farmers and improving agricultural systems. 
  • IFAD works to boost the productivity and sustainability of agricultural production.
  • IFAD focuses on making rural livelihoods more resilient to climate change and other shocks. 
  • IFAD specifically targets and empowers disadvantaged groups like rural women and youth.

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Members Countries of the International Fund for Agricultural Development

At present, the International Fund for Agricultural Development has 177 member countries. The IFAD member countries are divided into three categories/ lists

  • List-A: Developed Countries
  • List-B: Oil-producing Countries
  • List-C: Developing Countries

List-C is further divided into the following sub-lists:

  • C-1: Africa
  • C-2: Europe and Asia Pacific
  • C-3: Latin America and the Caribbean

Read an article on The International Union for Conservation of Nature (IUCN) here!

India and the International Fund for Agricultural Development

India is a founding member of the International Fund for Agricultural Development and is categorized under list C-2. The International Fund for Agricultural Development has been working in India since 1979.

The Department of Economic Affairs, Ministry of Finance, Government of India, is the nodal agency for IFAD in India.

India-specific issues and challenges for IFAD

  • Relatively low crop yield by regional standards.
  • Over half of the total crop area and 40% of all crop production are vulnerable to monsoon variability.
  • Seasonal water scarcity.
  • Rising temperature.
  • More frequent risk of drought.

Therefore, promoting the widespread adoption of climate-smart techniques and other measures for sustaining production and productivity and ensuring continued national food and nutritional security remains a major challenge for India.

IFAD strategy for India

  • The current IFAD strategy for India is in full alignment with the government policy of doubling the farmers’ income in real terms.
  • From 2008-2024, the International Fund for Agricultural Development will complement the government's efforts in developing Producers’ Organizations to make the smallholders’ food and agriculture production system remunerative, resilient, and sustainable against Climate Change and price shocks.
  • IFAD particularly targets the poorest marginal farmers, youth, women, landless people, tribal communities, and scheduled castes.
  • IFAD also tackles structural issues such as lack of access to natural resources, socio-cultural exclusion, agricultural land and quality public services, market asymmetry, and weak bargaining power of smallholder producers.

Focus Areas

  • IFAD primarily focuses on strengthening people's ability to manage their development.
  • The IFAD’s approach features a planning and implementation process that is fully participatory, reflecting indigenous knowledge and taking into account the capacities and interests of the participants.

Women-specific approach

  • The IFAD projects empowered rural women to participate in resource allocation and decision-making in local communities.
  • Women’s groups, including Shaurya Dal, are effectively working towards reducing gender-based violence, enabling women to start up their businesses and change social attitudes.
  • IFAD projects also provide financial access to women using linking women’s self-help groups with commercial banks.

Additionally, IFAD also works with tribal communities, particularly those located in the most underdeveloped and remote areas of India. IFAD projects help tribals improve their natural resource management, agriculture production, access to land, and vocational skills, thus increasing their livelihood opportunities.

IFAD India Statistics

Total projects

32 (including land undergoing and closed projects)

Total project cost

3.86 billion dollars

Total IFAD funding

1.22 billion dollars

Total households impacted

6.34 million

Some Ongoing IFAD Projects in India

  • Rural Enterprise Acceleration Project.
  • Chhattisgarh Inclusive Rural and Accelerated Agriculture Growth Project.
  • Maharashtra Rural Women Enterprise Development Project (Nav Tejaswini).
  • Fostering Climate resilient Upland Farming Systems in North East (Mizoram and Nagaland).

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Opportunities

Agriculture as an engine for poverty reduction

GDP growth generated by agriculture is more effective in reducing poverty than growth in any other sector. In sub-Saharan Africa, agricultural growth reduces poverty up to 11 times faster. This shows the potential of agriculture to drive development.

Transforming rural livelihoods

IFAD-supported projects have shown that access to finance, markets, and technology can lift rural people out of poverty. This demonstrates the opportunity to transform rural areas. It shows how to improve rural livelihoods through the right interventions.

Promoting gender equality and inclusiveness

IFAD's work does more than help rural people grow and earn more. It also promotes gender equality and inclusion. It empowers disadvantaged groups like women and youth. This presents an opportunity to create truly transformative change.

Strengthening climate resilience

IFAD focuses on making rural livelihoods more resilient to climate change and other shocks. This presents an opportunity to build the adaptive capacity of poor rural communities. 

Contributing to the SDGs

IFAD advocates for poor rural people and finances projects that transform rural areas. It thus contributes to achieving the 2030 Agenda for Sustainable Development. This presents an opportunity to make progress on multiple development goals through rural transformation.

International Fund for Agricultural Development: Quick Facts for UPSC

Name of the Organization

International Fund for Agricultural Development

Outcome of

The World Food Conference 1974

Year of Formation

1977

IFAD Headquarters

Rome, Italy

Members

177 (India is a founding member)

Status

Specialized agency of the UNO

Objectives
  • Increasing the productive capacity of the poor people
  • Increasing benefits for them from market participation
  • Increasing climate resilience and environmental sustainability of their economic activities.

Hopefully, this article by Testbook has answered all your questions regarding the topic of the International Fund for Agricultural Development (IFAD). Here at Testbook, we are making constant endeavors to provide you with the best quality study material with all the current updates to help you in your exam preparations. Testbook provides online classes, test series, and study notes at the lowest prices. Download the Testbook App now!

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Secularism FAQs

Secularism means a religious community that does not dominate one another, freedom of religion, and people should not dominate other people of religious communities.

India is a secular country in which secularism refers to a religious community that does not dominate one another, freedom of religion, the state cannot take away the religious freedom of citizens and people should not dominate other people of religious communities.

India is called a secular state meaning it does not have any particular state religion and people have the freedom to practice any religion of their choice.

Secular state meaning implies that it should not have any legal or formal alliance with any specific religion and all the religious institutions should be separated from the state.

The three objectives of secularism include the non-imposition of religious rule. One religious community's members cannot rule over another religious community's members. The state neither imposes any religion nor restricts people's freedom of religion.
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