ROME: On the eve of the World Summit on Food Security, the Islamic Development Bank (IDB) and Food and Agriculture Organization (FAO) on Sunday announced a $1 billion agreement to fund agricultural development programs of poor countries that come under 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 program to $5 billion by 2012,” an official statement said.
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 Governors 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,” the statement said.
The Jeddah-based Islamic bank announced its food initiative during a meeting of its board of governors in Jeddah in June 2008. Twenty-six least developed Muslim countries including Afghanistan, Bangladesh, Palestinian Authority, Senegal, Sudan and Yemen are to benefit from the program.
The IDB initiative is significant as many Muslim countries, especially those in Africa, have been hit by an unprecedented food crisis as a result of growing commodity prices including rice and other foodstuff. Under the five-year initiative IDB would give soft loans to member countries to increase their agricultural production and make adequate stock of food grains.
