THE RISE (AND DECLINE?) OF ARAB AID: GENEROSITY AND ALLOCATION IN THE OIL ERA Debra L. Shushan College of William and Mary PO Box 8795 Williamsburg, VA 23187-8795 757-221-3479 Fax: 757-221-1868
[email protected] Christopher Marcoux College of William and Mary PO Box 8795 Williamsburg, VA 23187-8795 757-221-1416 Fax: 757-221-4650
[email protected] Abstract: Among non-DAC donors, wealthy Arab states are some of the most prolific contributors of foreign aid. Despite this, relatively little is known about Arab foreign aid. The OECD development database offers a paucity of information, aggregating data for “Arab countries” and “Arab agencies,” without identifying the constituent units of either. A further complication is that Arab donors are not uniformly transparent about their aid efforts, publicizing some of them while keeping other donations secret. In this paper, we advance the state of knowledge of Arab foreign aid in a number of ways. We use AidData1 to document the trends in reported donations from specific bilateral donors (Kuwait, Saudi Arabia, and the United Arab Emirates) and multilateral agencies (Arab Fund for Economic and Social Development, Arab Bank for Economic Development in Africa, OPEC’s Fund for International Development, and the Islamic Development Bank). Notably, Arab bilateral donors have given less generously over time with aid levels remaining relatively stable despite skyrocketing national wealth. We explore reasons for this decline, including that Arab donors have: shifted their giving from bilateral to multilateral channels, given less as DAC donors have given more, and increased domestic spending at the expense of foreign aid with a view to safeguarding regime security.