Shorouk Express
ALGIERS, Algeria, May 21. The existing
international financial architecture is clearly also not supporting
the transition of many of these middle-income countries, said
Álvaro Lario, President of the International Fund for Agricultural
Development (IFAD), Trend’s special correspondent reports.
Speaking at a panel discussion titled “Avoiding the
Middle-Income Trap: Accelerating SDGs Achievement in Middle-Income
Countries,” as part of the Islamic Development Bank’s (IsDB) Annual
Meetings in Algiers, Lario also touched on the growth in rural
areas.
“We will continue working with partners like ISDB and the member
states to make sure that the untapped potential of rural areas is
an engine of inclusive growth, but also job creation,” he said.
He noted that middle-income countries face well-known challenges
such as slowing economic growth, rising inequality, and innovation
barriers.
“At the same time, there has been tremendous progress for many
of these countries in eradicating extreme poverty, as well as
generally food insecurity. However, many of these countries still,
and I will focus my intervention on food insecurity, have many of
them, a big proportion of their populations actually working in
food systems and in food insecurity,” Lario added.
He cited Egypt as a successful example, highlighting the
country’s integrated approach to food, water, and energy
security—the so-called “nexus” model—that allows for coordinated
efforts across sectors to build resilience.
Lario also pointed to successful cooperation with the IsDB in
Pakistan, where interest-free loans have helped not only reduce
poverty but also increase the resilience of more than one million
people.
“But this is clearly not enough. I think one of the issues that
we have learned throughout time is that middle-income countries,
whether it’s lower-middle or upper-middle-income countries, need
very tailored solutions. The international financial architecture
is clearly also not supporting the transition of many of these
middle-income countries. They are deemed too rich for concessional
funding. At the same time, they have the challenge of continuing to
invest in sustainable development at a bigger scale,” Lario
added.
According to him, IFAD is focused on creating rural youth
employment, enhancing climate resilience, expanding digital access,
fostering innovation, and building inclusive value chains.
“Development does not end when you reach the middle-income
status. The journey continues with smarter financing, stronger
partnerships, and stronger institutions,” Lario concluded.
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