The recognition at the 1974 World food Confluence of the close link between food and poverty issues and the need for a concerted global approach to redress them had led to the establishment of IFAD in December 1977.

The Main objectives of IFAD are to inter tease food production in the poorest food deficit countries in particular and other developing countries in general to reduce rural poverty; and a improve the level of nutrition of the poorest population in developing countries and the conditions of their lives.

The strategies being pursued by the Fund are financing projects and programs specifically de-signed to introduce, expand or improve food production systems including marketing, storage and distribution aspects, in developing countries with special emphasis on increasing the output of food in the poorest food deficit developing countries, increasing the levels of nutrition among the poorest segments of the population in all developing countries by supporting projects and encouraging appropriate institutional and policy reforms, Mobilizing additional resources to be made available for agricultural development in developing member states, and adopting a generally flexible ant roach to the question of lending priorities and appraisal techniques.

As of 1 December 1985. IFAD had a total membership of 139 countries, of which 20 are in Category 1 (developed countries), 12 in category 11 (oil-exporting developing countries) and 107 in category III (other developing countries).

Focusing constantly at the three objectives, Viz, higher food production, reduced malnutrition and lower levels of rural poverty the fund increased its lending operations by 7% in real terms between 1979 and 1981.

Between 1978 and 1985, IFAD had provided loans for 177 projects in 87 countries for a total pf SDR 1,808.7 million and approved an additional SDR 88.6 million for technical assistance grants; increased Africa’s share in its lending from 20,2% (1978-80) to 31.9% (1981-83) to 39.4% in 1985. Concentrated in- low-income, food deficit countries, 59 of which have received 79% of all WAD lending, The 36 countries classified by the UN as “least developed” have received 25.5% of total Fund loans. Their share was 35% in the 1978-80 period, by 1985 the it shares reached 55.7%. and provided loans to 55 countries with the lowest highly concessional terms, i.e., service charge of I% p.a., 50-year repayment period with ten-year trace period.

IFAD had provided the following loans on highly concessional terms to Ethiopia during 1978-75.