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.
Thursday, March 19, 2009
Monday, March 16, 2009
Exercising Power through Aid
It has been argued that US aid is given to reward political and military partners rather than to advance genuine economic and humanitarian causes abroad. Arguably, it has a two-fold purpose of furthering America’s foreign policy in expanding democracy and free markets, while conveniently it also improves the lives of those in the developing countries.
Additionally, USAID (United States agency for international development) only gave out 12.3% of its budget as humanitarian aid in 2004. However, impressively, 30.1% of it went to bilateral or developmental aid.
I don’t mean to be completely negative about the US commitment to aid because they are still the worlds’ greatest aid loaner. As it states in this BBC article, recently the US government gave out a very large sum of money ($900 million) to Gaza. Additionally, they are being extremely careful about making sure the aid does not go to their current ‘terrorist’ government (The Hamas). In fact, so careful, to the extent that some Congress members were hesitant about giving the large donation to Gaza just in case it ended up in the wrong hands. This proves that the US realizes the risk and how aid can be mistreated by corrupt governments.
Instead the aid will be shared between nongovernmental organizations (NGOs), the United Nations and the Palestinian President Mahmoud Abbas. I believe the UN is a great place to invest aid in because with more funds, they have the very possible potential to be a really significant peacekeeping force, just like they could have been if they were aided with the genocide in Rwanda.
The article describes the need for aid in Gaza, stating:
Last year there appeared a very interesting article about how the US had offered Cuba $5 million in relief aid after their hurricane, but they refused to receive it. After this refusal, they persisted and asked Cuba to reconsider, however they did not. But the US did not give at that, they licensed agricultural exports to Cuba worth $250 million to be used as lumber for reconstruction. This shows that the US does genuinely have their eyes on the lookout for humanity outside of its own, even humanity governed by a socialist regime.
However, the article didn’t say why Cuba insisted upon refusing aid from America. One can only be suspicious of political conditions that may or may not have been attached to the large aid package. It is possible however that the Cuban government simply didn’t want help from a country whose political ideology is different from their own.
This is a way that powerful countries exercise their power: through giving aid, or through giving aid with attachments or conditions. Dependency theorists argue that the giving of aid only increases states instability because they can no longer function on their own two feet; they become dependent on aid, dependant on the powerful. These countries that are dependent on aid arguably have no choice but to abide by the rules of the powerful and agree to their ideological system, because otherwise they may not survive.
Aid, a device originated for good, can be used as a tool for domination.
Additionally, USAID (United States agency for international development) only gave out 12.3% of its budget as humanitarian aid in 2004. However, impressively, 30.1% of it went to bilateral or developmental aid.
I don’t mean to be completely negative about the US commitment to aid because they are still the worlds’ greatest aid loaner. As it states in this BBC article, recently the US government gave out a very large sum of money ($900 million) to Gaza. Additionally, they are being extremely careful about making sure the aid does not go to their current ‘terrorist’ government (The Hamas). In fact, so careful, to the extent that some Congress members were hesitant about giving the large donation to Gaza just in case it ended up in the wrong hands. This proves that the US realizes the risk and how aid can be mistreated by corrupt governments.
Instead the aid will be shared between nongovernmental organizations (NGOs), the United Nations and the Palestinian President Mahmoud Abbas. I believe the UN is a great place to invest aid in because with more funds, they have the very possible potential to be a really significant peacekeeping force, just like they could have been if they were aided with the genocide in Rwanda.
The article describes the need for aid in Gaza, stating:
Around 1,300 Palestinians, of whom 412 were children, were killed during the
Israeli offensive on Gaza; 21,000 homes were destroyed or badly damaged.
Thirteen Israelis were killed during the three weeks of violence.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Last year there appeared a very interesting article about how the US had offered Cuba $5 million in relief aid after their hurricane, but they refused to receive it. After this refusal, they persisted and asked Cuba to reconsider, however they did not. But the US did not give at that, they licensed agricultural exports to Cuba worth $250 million to be used as lumber for reconstruction. This shows that the US does genuinely have their eyes on the lookout for humanity outside of its own, even humanity governed by a socialist regime.
However, the article didn’t say why Cuba insisted upon refusing aid from America. One can only be suspicious of political conditions that may or may not have been attached to the large aid package. It is possible however that the Cuban government simply didn’t want help from a country whose political ideology is different from their own.
This is a way that powerful countries exercise their power: through giving aid, or through giving aid with attachments or conditions. Dependency theorists argue that the giving of aid only increases states instability because they can no longer function on their own two feet; they become dependent on aid, dependant on the powerful. These countries that are dependent on aid arguably have no choice but to abide by the rules of the powerful and agree to their ideological system, because otherwise they may not survive.
Aid, a device originated for good, can be used as a tool for domination.
Kuwait
Kuwait is a small, rich, Islamic country in the Middle East, situated between Iraq and Saudi Arabia. As of July 2008 it has a population of 2,596,799 where almost half of them are non-nationals. Kuwait attained independence from the United Kingdom in June 1961.
Kuwait has a stable economy and is home to 8% of the worlds’ oil reserve. Petroleum counts for 95% of its export revenues and 80% of governmental income. Since 1946 it has been the world’s second largest oil exporter. Kuwait has been doing very well over the past few years and celebrated its 10th consecutive budget surplus. Occasionally the government gives out the surplus budget as a grant to all Kuwaiti citizens who apply, in 2006 a grant of 700$ (200 Kuwaiti dinars) was paid to every citizen. In addition to this, in 2007 they issued a debt forgiveness scheme for all Kuwaiti people, totaling 1 billion American dollars. However, non Kuwait citizens do not have the luxury of these benefits, and that makes a large portion of the population.
On the other hand, Kuwait is not all good; they have had a history of low paid, mistreated workers, and have been accused of not battling against human trafficking. To support this, an article in 2008 from the Kuwait Times reports that the US have warned Kuwait about dropping their trafficking level from Tier 2 to Tier 3 (Tier 3 countries receive the lowest ranking in trying to prevent human trafficking). The US has argued that Kuwait shows insufficient efforts to criminally prosecute and punish abusive employees and those who traffic women for sexual exploits. The government has promised for several years to strengthen the penalty on exploitation of foreign workers but so far they have failed to work towards this goal. And since this was reported in a Kuwait newspaper I doubt very much that they have dramatized the situation, if anything they would have made the situation seem less important.
Many people from countries all around (including India, Pakistan, Sri Lanka and Nepal) voluntarily move to Kuwait as a transit country to find labor. However, upon arrival, they are subject to forced working conditions, and sometimes their passports are withheld, or they must work with no pay or are forced into commercial sexual exploitation. The latter comes about because some women must resort to prostitution after fleeing abusive employers. And arguably Kuwait truly don’t care about creating a better working environment as this year Kuwait put a ban on withholding passports, but has not done anything to enforce it.
Since 2003 the Emir of Kuwait has been Sheikh Sabah al-Ahmed. The BBC report that they expect Sheikh Sabah to continue Kuwait’s pro western stance and pursue reforms. In May 2005 parliament gave women the right to vote and his government appointed the first female minister. Also, he has introduced laws that open the door to foreign investors. Sheikh Sabah hastily appointed his brother as the crown prince and his nephew as the prime minister. These jobs had traditionally been kept by one individual, but this was changed by him in 2003. Furthermore, members of the ruling family hold most of the key cabinet positions. In the past the ruling family would clash with the parliament, but these measures seem to make that less likely.
Kuwait has been a major source of economic development in other countries through the Kuwait Fund for Arab Economic Development (KFAED). In 1947 however they extended their funds to all non-Arab developing countries. Total loan disbursement comes up to around $15 billion. They are also responsible for $500 million worth of loans to Iraq to help the reconstruction efforts. In 2005 KFAED distributed $50 million for Hurricane Katrina relief and $50 million to Pakistani earthquake relief efforts. They are doing their part in the world.
Kuwait has a stable economy and is home to 8% of the worlds’ oil reserve. Petroleum counts for 95% of its export revenues and 80% of governmental income. Since 1946 it has been the world’s second largest oil exporter. Kuwait has been doing very well over the past few years and celebrated its 10th consecutive budget surplus. Occasionally the government gives out the surplus budget as a grant to all Kuwaiti citizens who apply, in 2006 a grant of 700$ (200 Kuwaiti dinars) was paid to every citizen. In addition to this, in 2007 they issued a debt forgiveness scheme for all Kuwaiti people, totaling 1 billion American dollars. However, non Kuwait citizens do not have the luxury of these benefits, and that makes a large portion of the population.
On the other hand, Kuwait is not all good; they have had a history of low paid, mistreated workers, and have been accused of not battling against human trafficking. To support this, an article in 2008 from the Kuwait Times reports that the US have warned Kuwait about dropping their trafficking level from Tier 2 to Tier 3 (Tier 3 countries receive the lowest ranking in trying to prevent human trafficking). The US has argued that Kuwait shows insufficient efforts to criminally prosecute and punish abusive employees and those who traffic women for sexual exploits. The government has promised for several years to strengthen the penalty on exploitation of foreign workers but so far they have failed to work towards this goal. And since this was reported in a Kuwait newspaper I doubt very much that they have dramatized the situation, if anything they would have made the situation seem less important.
Many people from countries all around (including India, Pakistan, Sri Lanka and Nepal) voluntarily move to Kuwait as a transit country to find labor. However, upon arrival, they are subject to forced working conditions, and sometimes their passports are withheld, or they must work with no pay or are forced into commercial sexual exploitation. The latter comes about because some women must resort to prostitution after fleeing abusive employers. And arguably Kuwait truly don’t care about creating a better working environment as this year Kuwait put a ban on withholding passports, but has not done anything to enforce it.
Since 2003 the Emir of Kuwait has been Sheikh Sabah al-Ahmed. The BBC report that they expect Sheikh Sabah to continue Kuwait’s pro western stance and pursue reforms. In May 2005 parliament gave women the right to vote and his government appointed the first female minister. Also, he has introduced laws that open the door to foreign investors. Sheikh Sabah hastily appointed his brother as the crown prince and his nephew as the prime minister. These jobs had traditionally been kept by one individual, but this was changed by him in 2003. Furthermore, members of the ruling family hold most of the key cabinet positions. In the past the ruling family would clash with the parliament, but these measures seem to make that less likely.
Kuwait has been a major source of economic development in other countries through the Kuwait Fund for Arab Economic Development (KFAED). In 1947 however they extended their funds to all non-Arab developing countries. Total loan disbursement comes up to around $15 billion. They are also responsible for $500 million worth of loans to Iraq to help the reconstruction efforts. In 2005 KFAED distributed $50 million for Hurricane Katrina relief and $50 million to Pakistani earthquake relief efforts. They are doing their part in the world.
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