Front Matter

Front Matter Page

Middle Eastern Department

Contents

  • Summary

  • I. Introduction

  • II. Contributions by Arab Donor Countries and National Agencies

    • A. General review

    • 1. Volume and composition

    • 2. National aid agencies

    • 3. Coordination and cofinancing with other aid agencies

    • 4. Multilateral contributions

    • B. Bilateral aid flows

    • 1. Algeria

    • 2. Iraq

    • 3. Kuwait

    • 4. The Libyan Arab Jamahiriya

    • 5. Qatar

    • 6. Saudi Arabia

    • 7. United Arab Emirates

  • III. Assistance by Arab/OPEC Multilateral Aid Agencies

    • 1. Arab Authority for Agricultural Investment and Development (AAAID)

    • 2. Arab Bank for Economic Development in Africa (BADEA)

    • 3. Arab Fund for Economic and Social Development (AFESD)

    • 4. Arab Fund for Technical Assistance to African and Arab Countries (AFTAAAC)

    • 5. Arab Gulf Program for United Nations Development Organizations (AGFUND)

    • 6. Arab Monetary Fund (AMF)

    • 7. The Gulf Organization for the Development of Egypt (GODE)

    • 8. Islamic Development Bank (IDB)

    • 9. Islamic Solidarity Fund (ISF)

    • 10. OAPEC Special Account

    • 11. OPEC Fund for International Development (OFID)

    • 12. The Special Arab Aid Fund for Africa (SAAFA)

  • IV. Net Disbursements of Official Assistance by Arab Countries and Agencies

    • A. Geographical distribution of Arab aid among recipients

    • 1. Bilateral concessional assistance

    • 2. Concessional assistance from Arab/OPEC multilateral institutions

    • 3. Total concessional Arab assistance

    • 4. Bilateral nonconcessional assistance

    • 5. Nonconcessional assistance from Arab/OPEC multilateral institutions

    • 6. Total official assistance

    • B. Sectoral distribution of Arab aid

    • 1. Bilateral aid

    • 2. Multilateral aid

  • V. Impact of the Financial Flows on the Economic Aggregates of Arab Aid Recipient Countries

    • A. Relations of financial flows to macroeconomic variables

    • 1. Total official Arab financial assistance

    • 2. Private unrequited transfers

    • 3. Total financial assistance and private unrequited transfers

    • B. Correlations of financial flows to macroeconomic variables

    • 1. Total official Arab financial assistance

    • 2. Net private unrequited transfers

    • 3. Total financial assistance and private unrequited transfers

  • VI. Conclusion

  • Text Tables

    • 1. Contribution of Aid by Arab Donor Countries

    • 2. Comparative Performance of Concessional Aid Donors in the World, 1973-1987

    • 3. Net Contribution of Official Development Assistance (ODA) as a percentage of GNP, 1973-87

    • 4. Contribution of Aid by Algeria

    • 5. Contribution of Aid by Iraq

    • 6. Assistance by the Iraqi Fund for External Development, 1973-1987

    • 7. Contribution of Aid by Kuwait

    • 8. Assistance by the Kuwait Fund for Arab Economic Development, 1973-1987

    • 9. Contribution of Aid by Libyan Arab Jamahiriya

    • 10. Contribution of Aid by Qatar

    • 11. Contribution of Aid by Saudi Arabia

    • 12. Assistance by the Saudi Fund for Development, 1973-87

    • 13. Contribution of Aid by the United Arab Emirates

    • 14. Assistance by the Abu Dhabi Fund for Arab Economic Development, 1973-1987

    • 15. Profile of Multilateral Arab/OPEC Aid Agencies

    • 16. Net disbursements of Official Assistance by Arab Countries and Arab/OPEC Multilateral Aid Agencies, 1973-1987

    • 17. Assistance by the Arab Bank for Economic Development in Africa (BADEA), 1973-87

    • 18. Assistance by the Arab Fund for Economic and Social Development (AFESD), 1973-1987

    • 19. Assistance by the Arab Monetary Fund (AMF), 1973-1987

    • 20. Assistance by the Islamic Development Bank (IDB), 1973-1987

    • 21. Assistance by the OPEC Fund for International Development, 1973-1987

    • 22. Geographic Distribution of Bilateral Concessional Assistance from Arab Donor Countries to Developing Countries and Territories, 1973-1987

    • 23 Geographic Distribution of Bilateral Concessional Assistance from Arab Donor Countries to Developing Countries and Territories, 1973-1987 (In percent)

    • 24. Geographic Distribution of Concessional Assistance from Arab/OPEC Multilateral Institutions to Developing Countries and Territories, 1973-1987

    • 25. Geographic Distribution of Concessional Assistance from Arab/OPEC Multilateral Institutions to Developing Countries and Territories, 1973-1987 (In percent)

    • 26. Geographic Distribution of Total Concessional Arab Assistance to Developing Countries and Territories, 1973-1987

    • 27. Geographic Distribution of Total Concessional Arab Assistance to Developing Countries and Territories, 1973-1987 (In percent)

    • 28. Geographic Distribution of Bilateral Nonconcessional Assistance from Arab Donor Countries to Developing Countries and Territories, 1973-1987

    • 29. Geographic Distribution of Bilateral Nonconcessional Assistance from Arab Donor Countries to Developing Countries and Territories, 1973-1987 (In percent)

    • 30. Geographic Distribution of Nonconcessional Assistance from Arab/OPEC Multilateral Institutions in Developing Countries and Territories, 1973-1987

    • 31. Geographic Distribution of Nonconcessional Assistance from Arab/OPEC Multilateral Institutions to Developing Countries and Territories, 1973-1987 (In percent)

    • 32. Geographic Distribution of Total Official Assistance from Arab Countries and Agencies to Developing Countries and Territories, 1973-1987

    • 33. Geographic Distribution of Total Official Assistance from Arab Countries and Agencies to Developing Countries and Territories, 1973-1987 (In percent)

    • 34. Sectoral Distribution of Cumulative Financing Commitments of Arab/OPEC National and Multilateral Development Financing Institutions (1973-1987)

    • 35. Private Unrequited Transfers (Net) to Arab Countries, 1973-1987

    • 36. Total Official Assistance from Arab Countries and Agencies and Private Unrequited Transfers (Net) to Arab Countries, 1973-1987

    • 37. GNP of Arab Aid Recipient Countries, 1973-1987

    • 38. Imports cif by Arab Aid Recipient Countries, 1973-1987

    • 39. Investment by Arab Aid Recipient Countries, 1973-1987

    • 40. Arab Aid Recipient Countries--Investment as Percent of GNP, 1973-1987

    • 41. Total Official Arab Assistance as a Percentage of GNP of Arab Aid Recipient Countries, 1973-1987

    • 42. Total Official Arab Assistance as a Percentage of Imports cif of Arab Aid Recipient Countries, 1973-1987

    • 43. Arab Aid Recipient Countries--Total Official Arab Assistance as a Percentage of Investment, 1973-1987

    • 44. Private Unrequited Transfers as a Percentage of GNP of Arab Aid Recipient Countries, 1973-1987

    • 45. Private Unrequited Transfers as a Percentage of Imports cif of Arab Aid Recipient Countries, 1973-1987

    • 46. Arab Aid Recipient Countries--Net Private Unrequited Transfers as a Percentage of Investment, 1973-1987

    • 47. Total Official Assistance from Arab Countries and Agencies and Private Unrequited Transfers as a Percentage of GNP of Arab Aid Recipient Countries, 1973-1987

    • 48. Total Official Assistance from Arab countries and Agencies and Private Unrequited Transfers as a Percentage of Imports cif of Arab Aid Recipient Countries, 1973-1987

    • 49. Arab Aid Recipient Countries--Total Financial Assistance and Net Private Unrequited Transfers as a Percentage of Investment, 1973-1987

    • 50. Correlation Between the Growth in Total Official Assistance from Arab Countries and Agencies and the GNP Growth of Arab Recipient Countries, 1974-1987

    • 51. Correlation Between the Growth in Total Official Assistance from Arab Countries and Agencies and the Growth of Imports of Arab Recipient Countries, 1974-1987

    • 52. Correlation between the Growth in Total Official Assistance from Arab Countries and Agencies and the Investment Growth of Arab Recipient Countries, 1974-1987

    • 53. Correlation Between the Growth in Net Private Unrequited Transfers and the GNP Growth of Arab Recipient Countries, 1974-1987

    • 54. Correlation Between the Growth in Net Private Unrequited Transfers and the Growth in Imports of Arab Recipient Countries, 1974-1987

    • 55. Correlation Between the Growth in Net Private Unrequited Transfers and Investment Growth of Arab Recipient Countries, 1974-1987

    • 56. Correlation Between the Growth in Total Official Assistance and Private Unrequited Transfers and the GNP Growth of Arab Recipient Countries, 1974-1987

    • 57. Correlation Between the Growth in Total Official Assistance and Private Unrequited Transfers and the Growth of Imports of Arab Recipient Countries, 1974-1987

    • 58. Correlation Between the Growth in Total Official Assistance and Private Unrequited Transfers and the Investment Growth of Arab Recipient Countries, 1974-1987

  • Chart

  • 1. Net Contribution of Official Development Assistance (ODA) as a Percentage of GNP, 1973-87

Summary

The paper examines the volume and distribution of concessional and nonconcessional financial flows from Arab countries and national agencies and from Arab/OPEC multilateral institutions to developing countries, with a special emphasis on Arab recipient countries, from 1973 to 1987. In line with the rapid rise in oil prices and government revenues, financial assistance increased very rapidly from 1973 through 1980. A large part of this assistance was granted unconditionally, and the geographic distribution widened over the years. Essentially because of the softer oil market, disbursements of financial assistance fell gradually in the 1980s. Nonetheless, the Arab contributions as a share of GNPs remain by far the most generous among the major donor groups and well above the target set by the United Nations. Arab multilateral agencies have flourished, and cooperation among them and the cofinancing of projects have increased over the years. All are now well equipped for appraising and administering their own lending programs.

Arab recipient countries received nearly 62 percent of total Arab financial assistance between 1973 and 1987. The bulk of this assistance was extended bilaterally, of which a significant part consisted of general support assistance. The economic development of the Arab world during this period was also heavily influenced by the migration of labor. As most of the imported labor in Arab donor countries was provided by nationals of the Arab recipient countries, total workers’ remittances were about one and a half times larger than total financial assistance extended by Arab donors between 1973 and 1987. The combination of these two flows represented a noticeably large part of most of these recipient countries GNPs, imports, and fixed investment, and thereby accelerated their economic development beyond what would have been otherwise possible.

Abbreviations

AAAID

Arab Authority for Agricultural Investment and Development

AAD

Arab Accounting Dinar

ACAPP

Arab Company for Agricultural Production and Processing

ADF

Abu Dhabi Fund for Arab Economic Development

AfDB

African Development Bank

AFESD

Arab Fund for Economic and Social Development

AFTAAAC

Arab Fund for Technical Assistance to African and Arab Countries

AGFUND

Arab Gulf Program for United Nations Development Organizations

AMF

Arab Monetary Fund

BADEA

Arab Bank for Economic Development in Africa

CMEA

Council for Mutual Economic Assistance

DAC

Development Assistance Committee (of the OECD)

Dh

U.A.E. dirhams

FADDA

First Arab Development Decade Account

GDP

Gross Domestic Product

GNP

Gross National Product

GODE

Gulf Organization for the Development of Egypt.

IBRD

International Bank for Reconstruction and Development (World Bank)

ID

Iraqi dinars

IDA

International Development Association

IDB

Islamic Development Bank

IFAD

International Fund for Agricultural Development

IFC

International Finance Corporation

IMF

International Monetary Fund

IsD

Islamic dinar

ISF

Islamic Solidarity Fund

KD

Kuwaiti dinar

KF

Kuwait Fund for Arab Economic Development

LAFICO

Libyan Arab Foreign Investment Company

OAPEC

Organization of Arab Petroleum Exporting Countries

OAU

Organization of African Unity

ODA

Official Development Assistance

OECD

Organization for Economic Cooperation and Development

OFID

OPEC Fund for International Development

OPEC

Organization of Petroleum Exporting Countries

PLO

Palestine Liberation Organization

SAAFA

Special Arab Aid Fund for Africa

SAMA

Saudi Arabian Monetary Agency

SDR

Special Drawing Right

SF

Saudi Fund for Development

SR

Saudi Arabian Riyal

UAE

United Arab Emirates

UN

United Nations

UNDP

United Nations Development Programme

The Composition and Distribution of Financial Assistance From Arab Countries and Arab Regional Institutions
Author: International Monetary Fund