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IDB’s Support for Fragile and Conflict-Affected States
IDB’s Support for Fragile and Conflict-Affected States
The Islamic Development Bank (IDB) recognises the importance of supporting fragile and conflict-affected States to help them cope with the negative effects resulting from the challenges of fragility, conflict, and violence. Such support is crucial for IDB to achieve its objectives of reducing extreme poverty and promoting prosperity in its member countries, especially that such efforts come within the context of implementing the SDGs, particularly SDG 16: peace, justice and strong institutions.
As such, IDB attaches great importance to supporting those of its MCs that suffer fragility, weak capacity to carry out basic governance functions, lack of ability to develop mutual constructive relations with the society, and extreme weakness in terms of coping with internal and external shocks, such as economic crises or natural disasters.
Since its inception, the IDB Group has provided more than US$ 2 billion to finance operations in 40 MCs and Muslim communities in 19 other countries, all of which were suffering the challenges of fragility and conflict. IDBG’s interventions have been mainly focused on reconstructing physical infrastructure and rejuvenating human and social capital.
On the other hand, IDB maintains and regularly updates a list of fragile countries based on a number of economic, social, and environmental criteria. The list currently includes Syria, Yemen, Libya, Palestine, Somalia, Nigeria, Mali, Niger, and Chad. Following is a brief overview of projects IDB is implementing to support those countries, as well as the most significant projects IDB is considering the possibility of contributing to the funding of in support of those countries.
1. In Somalia, IDB enjoys a long history of providing relief services to internally displaced persons and refugees since 1991, having implemented numerous projects in the areas of relief, health, and education. Following the collapse of the Somali government in 1991, IDBG approved financing for 85 projects in Somalia, totalling US$ 96 million. IDB provided support to early interventions to overcome the famine of 2011 by granting US$ 3.2 million worth of humanitarian aid to the country.
2. On 20/5/2012, IDB approved a grant of US$ 5 million to the Islamic Solidarity Fund for Development (ISFD) towards implementation of the drylands development project, which aims to help and build the capacities of the poor population living in pastoral areas within the project zones.
3. Under the “FaelKhair” scheme, there is currently a US$ 26 million programme in Somalia that aims to alleviate the root causes of water scarcity and drought that befall Somalia every decade and cause famines, such as the one that occurred in 2011 and led to the displacement of a large number of Somalis. The programme includes drilling 72 wells and building 35 schools in the most needy areas all over Somalia so as to help the internally displaced persons return to their villages of origin.
4. IDB signed a grant agreement on 14/10/2015 providing US$ 300,000 of support to the international anti-polio initiative so as to assist the efforts exerted to combat polio in the country.
5. IDB provided Somalia with a US$ 200,000 grant towards combating obstetric fistula.
6. IDB provided US$ 280,000 to support the efforts of the Somali government in the region of Puntland to enhance the efficiency of technical and vocational education and training to respond to labour market demand after the conflict comes to an end.
7. IDB is currently implementing a Waqf project for the University of Mogadishu in Kenya with a cost of US$ 3.6 million and is looking into funding another Waqf project for the university in Uganda.
8. In cooperation with OECD, IDB intends to help Somalia develop a national strategy for statistics that will greatly contribute to economic planning and monitoring in the country.
9. IDB is currently studying the possibility of providing a grant to help Somalia develop the regulatory and supervisory framework needed to promote financial and banking services.
10. IDB is currently preparing a proposal for an integrated project aimed at helping Somalis in the refugee camp of Dadaab, Kenya to return to Somalia and revive their economic activities so that they can participate effectively in the socioeconomic development of their country.
11. In cooperation with its MCs, IDB launched a campaign to mobilise US$ 10 million to provide immediate humanitarian assistance to vulnerable groups in Somalia. As to developmental interventions in the medium-term, IDB is also mobilising US$ 30 million in collaboration with other partners to fund such interventions.
12. Towards establishing long-term participation, IDB will support the promotion and stimulation of long-term development solutions in Somalia in collaboration with the Somali government, OIC MCs, and the international community. IDB will contribute to the development of infrastructure, trade, support for macro-economy policy development, and capacity development for the government and the private sector.
1. Over the past few years, IDB has financed a number of operations in the area of humanitarian support to the internally displaced persons and of reconstruction. The most notable among those were:
2. IDB approved the implementation of the “Urgent Support and Rehabilitation Programme for Yemen”, with an amount of US$ 52 million. This package is geared towards supporting Yemeni citizens who were internally displaced, fled to neighbouring countries as refugees, or placed in camps in a number of safe areas in Yemen. The package also included rehabilitation and support for the Zanzibar Hospital in the Abyan governorate, in addition to providing support in the areas of health (vaccines), education, and nutrition for children in camps of displaced persons. Within the framework of the IDB-managed FaelKhair programme, 6 mobile clinics have been manufactured and are currently in Turkish ports in anticipation of the issuance of necessary permits from the Yemeni government for the Turkish implementing institution to export them to Yemeni territories. These clinics will benefit the governorates of Aden, Lahij, Abyan, Dhale, Taiz, and Ma’rib.
3. The Youth Employment Support (YES) programme, which is IDB’s largest and most successful project in Yemen, provided support for youth employment and income-generating opportunities through intensive public works. YES has generated approximately 90,000 jobs for Yemeni youth in the areas of cultivation and harvesting of agricultural products, repair of irrigation canals, well-construction, rural roads, and capacity building for entrepreneurs.
4. This year, IDB allocated an amount US$ 2 million out of its 2017 annual work programme for humanitarian and relief assistance to the Yemeni people. Additionally, IDB is currently supporting the implementation of the “Business Resilience Assistance for Added-Value Enterprises (BRAVE)” project in cooperation with ICD. The project aims to catalyse the continuity of private sector establishments in the Republic of Yemen. The MENA Transformation Fund’s steering committee approved the project in May, 2016 at a value of US$ 6 million.
5. In view of the current situation in Yemen, the IDB BED agreed on exceptional basis, in its 318th meeting held on 26/3/2017, to lift the suspension that was previously imposed on the Republic of Yemen due to defaulting on overdues. The repayment period and all ongoing operations were extended for a year. This decision will allow the disbursement of around US$ 36 million within a year to provide support to various sectors, including youth employment programmes, integrated rural development, rural electrification, agricultural programmes, road construction, educational enrolment, water supply and sanitation, and fish wealth.
6. IDB is currently looking into the possibility of setting up special training areas to provide the workforce needed for the reconstruction of Yemen, and which can be absorbed in GCC countries.
1. IDB implemented a US$ 600,000 relief project through the Human Call Association and OIC to support Syrian refugees. The project includes the provision of foodstuff, infant food, medicine for Syrian refugees in Lebanon, Turkey, and Jordan.
2. In collaboration with a number of developmental partners, IDB provided support for classrooms and for the printing and distribution of approximately 10 million Syrian curriculum textbooks to refugee students in Lebanon, Jordan, and Turkey.
3. In March, 2016, IDB launched the e-learning initiative for Syrian students, which provided audiovisual materials prepared in accordance with the highest technical and educational standards. The initiative aims to provide some million Syrian students with access to education regardless of their locations and situations. They could be enrolled in formal schools or in a foreign country where there are no teachers, books, or classrooms for them.
4. Through its Special Funds department, IDB is preparing to sign an agreement with the Qatar Charity Association to implement projects worth US$ 3 million in the educational sector targeting Syrian refugees in Turkey and within Syria, with funding from the Arab Fund for Economic and Social Development.
5. In the “Supporting Syria and the Region” conference that was held in London on 4/2/2017, IDB announced its willingness to expand its scope of funding for affected countries in the Arab region up to US$ 9 million over the period 2016-2018 to help them build their capacities to cope with the current crisis that is rocking the whole area. Additionally, IDB joined hands with the World Bank and the UN to launch a concessional financing initiative to support countries affected by the Syrian refugees crisis and help them overcome the effects of that crisis and build their capacities to provide Syrian refugees and the local communities hosting them with basic services.
1. IDB’s 2017 work programme includes the following projects, which will be studied by IDB to explore the possibility of contributing to their funding in support of Chad:
1. IDB’s current operations included restricted Mudaraba and technical assistance (grant) for the youth employment project with an equivalent value of US$ 50.3 million, in addition to technical assistance (grant) in the area of developing Islamic banking for the Development Bank. No work has commenced on implementing this project due to the current situation in the country.
2. ICIEC provided the Libyan Foreign Bank with insurance services worth approximately US$ 10 million.
3. ITFC reached out to the Central Bank, with a view to introducing ITFC’s services and offering services that might be of use to the CB. It provided the CB with ideas related to means of supporting non-oil exports.
4. Within the context of supporting the Ministry of Economy’s efforts to establish five funds for SMEs, a cooperation agreement was signed with ICD in November, 2013. The strategy and administrative and legal regulations have been developed, and the third phase of the project has been implemented.
5. IDB provided urgent relief aid in January, 2015 that included 3,000 food packages for those who were affected and/or displaced from the areas of conflict. The food was distributed by the Red Crescent. IDB also delivered medical provisions to the Red Crescent, who delivered it in turn to the Benghazi Medical Centre and Al-Jalaa Hospital. IDB also provided urgent relief aid in April, 2016 in the form of 176 tons of food packaged into 8,800 family food baskets. Those were sent to Libya via the Salloum land border crossing in coordination with the Egyptian and Libya Red Crescent.
1. IDB works with UNDP and UNRWA to alleviate the suffering of Palestinian refugees, internally displaced persons, and victims of occupation. One of the major projects within this cooperation is the rehabilitation and renovation of 910 units that were partially damaged in the 2014 war. Implementation of this project is now 95% complete and work on the remaining 5% is underway.
2. Within the context of supporting poor families in Palestine, IDB finances the Economic Empowerment for Disadvantaged Families programme. This programme operates through intermediary NGOs, microfinance institutions, and private sector firms to provide a comprehensive suite of financial and non-financial services to meet the needs of poor and destitute families among displaced persons and refugees in the occupied Palestinian territories. The programme comprises two major service components for poor families: the microfinance (financial services) component, which targets poor families, and the economic empowerment grants components geared towards families living in extreme poverty.
1. In response to the government’s call for support for its recovery and stabilisation efforts in north-east Nigeria, in the short-term IDB will support the efforts directed to providing urgent food aid. In the medium-term, IDB will focus on supporting recovery and stabilisation projects to provide sustainable livelihoods. In the long-term, IDB will work on contributing to meeting the developmental economic and social needs of the country.
2. Currently, IDB is studying a proposal for a US$ 274,000 project aimed at providing urgent relief to famine-struck areas in north-east Nigeria.
3. The estimated cost for projects programmed for financing in Nigeria over the coming four years ranges between US$ 150 and 200 million, including US$ 10 million to finance projects aimed at meeting short-term needs so as to enhance livelihoods and provide basic services.
1. IDB is currently financing a US$ 20 million food security support project.
2. During the drought and food crisis that hit the Sahel area at the same time large numbers of were refugees pouring in from north Mali, IDB provided support to address the drought and food shortage in Niger. Specifically, IDB approved, in its 37th annual meeting that was held in Khartoum in 2012, the urgent food security programme for a number of Sahel countries, including US$ 0.4 million given to support Niger.
1. Since 2011, Mali has gone through successive crises. Following the signing of the peace agreement in May, 2015, the joint appraisal mission to north Mali (IDB, the World Bank, and the African Development Bank) identified priority projects that have to be implemented to ensure recovery and development in north Mali over the following six years (2016-2022). The appraisal mission set the total cost of these projects at US$ 4,947 million. IDB will look into the possibility of financing the rehabilitation of a number of roads and the construction of the Kidal airport.
2. IDB is currently funding a US$ 2.5 million project to combat the Ebola virus.
ISFD developed a proposal to establish an investment fund for inclusive economic empowerment to enhance entrepreneurship opportunities and investment opportunities for low-income persons and entrepreneurs who are members of disadvantaged communities in Afghanistan. The proposal has been communicated to the Afghan government for consideration.