Together We Stand

[ 152 ] Fifty-four years of development cooperation Kuwait Fund for Arab Economic Development The share of Kuwait Fund loans for each region (left) and distribution by sector (right) at the end of 2015 Source: Kuwait Fund for Development I n 1961, a few months after gaining independence, the State of Kuwait established the Kuwait Fund for Arab Economic Development, the first development institu- tion created by a developing country to channel official development assistance to other developing nations. The fund’s main activity is lending at concessional terms to finance projects accorded high priority by developing-coun- try partners. It is the fund’s policy to respect the priorities of recipient countries. However, approval for financing a project depends on the outcome of a comprehensive feasibility study and the examination of economic, financial, technical, envi- ronmental and management aspects of the project, through a Kuwait Fund appraisal mission in consultation with the recipient country. The development operations of the fund cover projects in various sectors, including agriculture, transport, energy, communication, water and sanitation, health and education, in addition to supporting small and medium-scale projects implemented by the private sector through funding provided by the Kuwait Fund to national development banks and social funds. Cumulative loan commitments as at the end 2015 totalled about US$18.7 billion for financing about 900 projects in the aforementioned sectors. Guided by the broad perspective of development, including social, economic and environmental dimensions, the development projects included under each sector aim at achieving a set of goals, comprising reducing poverty and hunger through the implementation of projects in the agriculture sector to increase the production of food commodities. Transport, energy, water and sanitation and other social services projects, including health and educa- tion, are essential for improving the livelihoods of people, in addition to promoting overall growth and development. Additionally, such projects constitute an important aspect of an environment conducive to the development of the private sector and to encouraging its participation in the development process. Often, lack of infrastructure and social services hampers private sector initiatives and weakens their role in contributing to development in general. Up to the end of 2015, the fund has managed to reach out to 105 developing countries spanning different regions of the world, including 16 Arab countries, 40 African countries and 49 other countries in Asia, Europe, Latin America and the Caribbean. Besides these concessional loans, the fund provides tech- nical assistance grants for financing a variety of technical services aimed at helping recipients and institutions to undertake certain activities to facilitate the implementation of development projects. Such services include the prepara- tion of feasibility studies, special expert services and training, in addition to technical assistance for capacity-building. As of West African Central, South, East African countries Central Asian and European Latin America and the Caribbean Eastern, South Asia and the Pacific Arab countries Water and sewerage Agriculture Other Industry Energy Transport 56% 27% 11% 11% 34% 11% 6% 10% 7% 6% 3% 18% T ogether W e S tand