17 June 2004
The Australian Government is in the process of withdrawing from the International Fund for Agricultural Development (IFAD).
IFAD is a small Rome-based agency set up in 1977 to provide loans and grants to alleviate rural poverty. Australia was a founding member and has committed a total of $50 million to IFAD.
Australia's reasons for withdrawing are based on IFAD's:
- Limited relevance to the Australian aid program's priority countries in South-East Asia and the Pacific
- Lack of comparative advantage and focus - other organisations are more strongly involved in rural development in our region
- Failure to respond to concerns that the Australian Government raised with IFAD senior management.
Increasingly the Asia-Pacific region is the focus of the Australian aid program for reasons of Australia's national interest and the persistence of widespread poverty in many countries in our region. The Australian Government builds partnerships with effective multilateral organisations that deliver results in our region.
IFAD is largely focused on Africa, with only a small proportion of lending going to the Australian aid program's priority countries in South-East Asia and the Pacific.
Australia remains strongly committed to rural development. Australia provides substantial and effective assistance for rural development, estimated at $255 million in 2004-2005.
Since IFAD is a treaty-based organisation, a formal process for treaty withdrawal is being undertaken which includes a report by Parliament's Joint Standing Committee on Treaties. This report, tabled in Parliament on 16 June, supports Australia's withdrawal from IFAD and recommends that binding treaty action be taken.
See also:
- National Interest Analysis (NIA) [PDF 98KB]
- Joint Standing Committee on Treaties Report [external website]
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