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.
Stay up-to-date with more news on Trend News Agency's WhatsApp channel