Scaling Up the Fight Against Rural Poverty - FIDAfrique

eminently well suited to move from a short-duration project approach to a longer-term programmatic
approach that could support well-designed scaling up pathways. We understand that IFAD’s Executive
Board expressed its dissatisfaction with the FLM soon after its introduction and the instrument has
been in limbo since. The limited experience with FLMs should be reviewed and the option of
reactivation seriously considered. During interviews a number of CPMs told us that they would
welcome this as a way support scaling up approaches.
Budget support: IFAD traditionally has seen its core function in working with poor rural communities,
often in remote or disadvantaged regions. In recent years, however, budget support has become an
approach much favored by the donor community and by many recipient countries as representing an
efficient and effective way for donors to support developing countries’ own programs. While IFAD
recognizes the potential of budget support operations for influencing the broader budgetary allocation
mechanism – and hence a way to scale up the impact of its own limited financial resources – it is
concerned that this will remove it too far from its main role of on-the-ground engagement with poor
farmer. Hence, IFAD has generally not provided budget support. 31
Grant mechanisms: IFAD has long had the capacity to make grants in addition to loans. Grants have
been made for research and innovation, for capacity building and for investment projects (in countries
that cannot afford to borrow from IFAD). Recipients have typically been governments, research
institutions and NGOs. A recent revision of IFAD adapted the policy to include explicit reference to
support for scaling up. 32 The use of the grants instrument for this purpose could be reinforced by
setting up a special grant window that would provide grants specifically targeted at scaling up of
successful innovations or interventions. The new policy also stresses links of grants to country
programs. To the extent the COSOPs increasingly reflect scaling up pathways, it would be desirable to
give CPMs the freedom to apply grants in support of moving along these pathways (through
appropriate engagement with in-country partners, including communities, local authorities, research
institutions, etc.). An especially good use of grants is through competitive allocation mechanisms.
Such mechanisms can ensure not only more effective selection of recipients but also wider impact by
providing incentives for improved institutional learning and performance. (Zinnes 2009)
2. Operational modalities – from area-based to national and regional approaches
IFAD’s traditional mode of operation has been area-based, i.e., focused on specific areas in a country.
Over time it might expand the project into different areas or different target groups or thematic areas of
engagement as a way to scale up. The Peruvian program, which we described in Chapter 3 above, is an
example of scaling up in all these dimensions. IFAD’s area-based approach remains its predominant
modality in the larger countries due to the relatively small size of its projects.
development objectives; an iterative, phased design process over the extended period of the loan to allow for
greater flexibility in resource allocation and planning; a detailed design process for the initial cycle of project
activities, with a set of clearly-defined pre-conditions, or ‘triggers’, for proceeding on to subsequent cycles; and
an enhanced role for monitoring and evaluation (M&E) to ensure that the projects remain on-track in pursuit of
their immediate and long-term objectives. Approval of the initial loan envelope, project objectives and technical
approach will rest with the Executive Board, while the decision whether or not to proceed to subsequent cycles
will be taken by IFAD management.” (IFAD, 1998, p. 1)
31 Donors provide sectorally targeted budget support often in connection with “Sector Wide Approaches”
(SWAps); however, SWAps can also be designed to incorporate donors who do not provide budget support,
which allows IFAD to participate in SWAps where appropriate (see also next section).
32 IFAD, “IFAD Revised Policy for Grant Financing”, PowerPoint Slides for Informal Executive Board Seminar,
10 September 2009.
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