Due to Kuwait possessing roughly 10% of the world’s oil supply, even though it is very small, it has become one of the worlds’ richest countries. Therefore Kuwait’s has the potential to deliver lots of foreign aid, which is does, in large amounts. A significant part of Kuwait’s revenue gets invested in foreign aid every year, primarily to Arab states due to the well used Kuwait Fund for Arab Economic Development (KFAED), which was established in 1961. The main concern of KFAED is to help fellow developing countries, and to promote friendly relations between them and Kuwait.
During the Iraq-Iran war, KFAED began aiming their efforts towards Iraq. During the 1980s Kuwait lent an estimate of $13 billion dollars to Iraq, which is almost as much as the USAID lent (United States Agency for International Development). By 2004, they had lent $16 billion dollars to Iraq, and yet KFAED announced that they were prepared to wave away “a significant portion” of the debt owed to it by Iraq. The creation of KFAED set a benchmark as the first developing country with an aid agency. This argues that the less developed, rich countries can play a role in the international community and that they are not helpless. They are more than happy to come to the aid of their neighboring countries, just as America, the world’s superpower in our current unipolar international system, aids the rest of the world.
Kuwait is playing its part in the international community. More recently, as of March 2009, KFAED is loaning the Sudanese government a total of $217 million dollars to help build a hydroelectric dam, one of Sudan’s largest development project ever. Also recently, KFEAD agreed to loan Yemen $14 million towards their social development program which aims to combat unemployment, poverty and increase the income of low-income families. On top of this KFAED managed a $2.5 million dollar grant to Yemen to rebuild homes that were destroyed in an earthquake.
A significant change came in 1974 when they began to expand foreign aid to developing countries worldwide. In totally they have given aid to 101 countries around the globe including 40 African countries and 34 Asian and European countries. In general, loans are primarily targeted at the development of water, agriculture, transport and energy. In 2005 KFAED sponsored the building of a hospital in Bahrain, a power station in Jordan, an irrigation project in Albania and many road projects in several African countries. One of the most interesting distributions of aid from Kuwait was in fact the giving of $500 million dollars of aid in the form of oil products and humanitarian assistance, to US hurricane victims in 2005. This is particularly surprising because the majority of their aid is focused upon the middle east and Africa, and the US do not have a very good reputation with Muslim countries, arguably being perceived as a big bully to Muslim countries in the Middle East. Sheikh Ahmed said this was due to an opportunity “to express faithfulness to our friends and allies who stood on our side in difficult times”. I assume this is in reference to America’s assistance in the liberation of Kuwait, or when US military aid was sent to Kuwait in 1987 to help protect Kuwait from Iranian attacks.
There is also the Kuwait Red Crescent Society (KRCS), which also participated in aid to the United States after hurricane Katrina. The Red Cross reports that KRCS gave them a $25 million dollar donation in February 2006, after the devastating hurricane. At that time it was the single largest recorded donation ever received by the Red Cross from any group or any country. Dr. Hilal Al-Sayer, Vice President of the Kuwait Red Crescent Society, was apparently so moved by the hurricane destruction, he actually visited the Red Cross group in New Orleans. He was able to see, first hand, how the Kuwait aid was being spent. It was spent effectively on the manufacture of hundreds of new ERV’s (Emergency Response Vehicles), which enabled the Red Cross to deliver food and shelter and other humanitarian aid much more effectively to the needy population. Dr. Hilal Al-Sayer was passionately pleased with this use of their aid. The Chairman of the American Red Cross, Bonnie McElveen, is reported having said “How grateful we are in America to have the wonderful friendship of the magnificent people of Kuwait.” I never even knew this friendship existed, and I still find it quite strange, especially as Kuwait is so closely linked with Iraq, who is the primary recipient of their aid.
The Kuwait Red Crescent Society was founded in 1966 and it aims to achieve social and medical welfare for all needy people, without discrimination, and to provide help and rescue operations during crisis caused by natural or human disasters. One of their greatest achievements was the leading role they took in responding to the Tsunami of December 2004. Currently the KRCS are committed to supplying humanitarian aid to the displaced people of Darfur. In 2007 they delegated $1 million dollars for rehabilitating basic services in Darfur. Earlier, in 2002, Kuwait pledged $30 million dollars to help rebuild Afghanistan that had been plagued by 23 years of war and devastation. Kuwait has also been known to consistently send large portions of aid to Lebanon who is being afflicted by the Israeli war on their country. In particular, in 2006 KRCS sent a convoy of 440 tons of food supplies, tents and blankets to needy Lebanese families.
Kuwait gives out an impressive amount of aid, especially for a developing country, and especially due to the fact that it is a tax free state. In addition to this, the aid is aimed towards development, which helps less developed countries gradually become sustainable. However, one must consider whether or not this non-discriminatory, developmental based aid from Kuwait will be able to continue. After all, more than 90% of their wealthy economy is based on oil exports and oil is a worryingly nonrenewable energy source. Without their oil trade, there will be no budget surplus, therefore the deliverance of international aid will be much, much more difficult to achieve. Perhaps in the future they will be the ones in need of aid, and hopefully many will come to help them, just as they once helped to aid everyone else.