As the G20 gathers for high-level development talks, Alvaro Lario, President of the International Fund for Agricultural Development (IFAD), is urging member countries not to overlook rural communities—where 80 percent of the world’s poorest people live. Ahead of the G20 Development Working Group Ministerial, Lario stressed the need for direct investment in rural jobs, food systems, and small farms, according to the statement.
Lario argues that investing in rural areas pays off, even as aid budgets shrink. He notes that every dollar put into transforming food systems in developing countries can generate sixteen times that amount in social and environmental gains. With the right support—access to finance, technology, and markets—small farms can lift entire communities and spark wider economic growth.
“Supporting small-scale producers and stronger food systems is key for climate resilience, less inequality, and fighting hunger,” Lario said.
IFAD continues to push the G20 to make these rural investments a top priority because of their far-reaching benefits.
This year’s G20, led by South Africa, places development at the center of its agenda. Despite global commitments, almost half of the Sustainable Development Goal targets are moving too slowly, and 18 percent have slipped backward. With a yearly funding gap of up to $4.5 trillion, there is pressure to find new ways to keep progress on track in health, education, energy, and technology.
Lario is calling on G20 leaders to make better use of national and multilateral development banks, which already invest over $2.5 trillion each year. He says these banks play a vital role in building more resilient, fair, and modern food systems if their full potential is tapped.
