Multilateral Foreign Aid

The International Fund for Agricultural Development underwrites projects designed to promote agricultural self-sufficiency in foreign countries. The amount of assistance is to be based on the countries' poverty levels and the need to boost food production and nutritional levels of the poorest individuals. Aid to small and landless farmers is a priority. This report (1) evaluates how the fund has conducted its operations, (2) evaluates the agency's funding outlook, (3) determines whether projects are experiencing any problems, and (4) reviews the relationship between the fund and the Agency for International Development.

GAO found that: (1) the U.S. government initially agreed to participate in IFAD with the understanding that IFAD would have limited involvement in project design and implementation and would maintain a small staff and limited administrative overhead expenses; (2) IFAD has become more involved in the development and implementation of its own projects to ensure that projects have an impact on targeted beneficiaries; (3) IFAD projects have had mixed results and face difficulties after assistance ends; (4) IFAD faces uncertainty over its funding in the future due to a decrease in donations; (5) IFAD administrative and operating expenses have increased by 60 percent and IFAD staff has increased significantly; (6) AID has had minimal involvement with IFAD projects at the field level due to other project priorities; and (7) IFAD would benefit from coordinating more projects with AID.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

Director: Benjamin F. Nelson Team: General Accounting Office: National Security and International Affairs Division Phone: (202) 512-4128