Energy for All – the Missing MDG

JULY 2011 JULY

Energy for All – the missing MDG

ViennaVi Energy E FForum: EEnergy ffor All – TiTime ffor AAction ti OFID Ministerial Council holds 32nd Annual Session OFID Annual Award 2011 goes to Emirates' Mazen Al-Hajri UN-LDC IV holds in Istanbul OFID Quarterly is published four times a year by the OPEC Fund for International Development (OFID).

OFID is the development finance agency established in January 1976 by the Member States of OPEC (the Organization of the Petroleum Exporting Countries) to promote South-South cooperation by extending development assistance to other, non-OPEC developing countries.

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EDITOR-IN-CHIEF Mauro Hoyer Romero

EDITORIAL COORDINATOR Sam Ifeagwu CONTRIBUTORS Reem Aljarbou, Damelys Delgado, Alvino-Mario Fantini, Audrey Haylins, Anna Ilaria-Mayrhofer, Silvia Mateyka, David Patterson, Ramina Samii, Geoffrey Skipper, Fatimah Zwanikken

PHOTOGRAPHS Rana Wintersteiner (unless otherwise credited) PRODUCTION Susanne Dillinger

DESIGN etage.cc/krystian.bieniek PRINTED IN AUSTRIA Stiepan & Partner Druck GmbH COMMENT Powering up the South: Towards universal energy access 2 JULY 2011 SPECIAL FEATURE Vienna Energy Forum targets Energy for the Poor 4 Words on Energy 8 Energy for the rural poor: Cooperation with Shell Foundation to bring solar lanterns to Kenya and Tanzania 10 Empowering a nation OFID partners with Jamaican electricity provider 13

OUTREACH OFID Ministerial Council holds 32nd Session in Vienna 16 Ministerial Council photo gallery 20 OFID Annual Award for Development 2011 4 goes to UAE’s Mazen Al-Hajri 24 OFID announces 2011 Scholars 25 Annual Report 2010 highlights commitments across focus areas and financial mechanisms 26 Art Exhibition: OFID Staff exhibits Works 28 OFID Diary 29 Meetings attended by OFID 31 135th Governing Board photo gallery 32 Loan signature photo gallery 34 OFID in the Field 36 Vietnam works at raising living standards 38 Bosnia-Herzegovina: A successful economic transition 40 24 Cape Verde: Progress toward improved health services 42 HIV: Legal service lifeline for prevention and treatment scale up 44 People update anywhere, anytime 46

DEVELOPMENT COOPERATION UN-LDC IV Istanbul Program of Action targets LDC graduation 47 OFID and AsDB: Enhancement of partnership 51 Commodities and Development: a close relationship 53 Corporate Social Responsibility Responsibilities of businesses to society and how they can be met 56

60 MEMBER STATES FOCUS Nigerian President Jonathan assumes office COVER PHOTO: SHUTTERSTOCK Presidential elections held in April 58 Art Exhibition: Indonesia exhibits Transformations of Nature 60

OPEC Book: I need to know An introduction to the Oil Industry and OPEC 62 COMMENT

Powering up the South: Towards universal energy access

nergy poverty is one of the biggest to reach the first MDG of reducing by half by obstacles to sustainable economic 2015 the proportion of people living in E growth and development in the extreme poverty and suffering from hunger. South, hindering efforts to reach the poverty Of particular concern is the situation in reduction and related United Nations (UN) sub-Saharan Africa (SSA), home of the major- Millennium Development Goals (MDGs). World- ity of the Least Developed Countries (LDCs), wide, 2.5 billion people rely on traditional most of which have suffered acute energy biomass such as fuelwood, charcoal or crop crises in the past. Unless rapid and concerted residues for cooking, agro-processing and action is taken towards improving electricity heating, and over 1.4 billion people lack generation and distribution in the sub-region, access to electricity. the number of people without electricity in According to some studies, problems of SSA will rise from 526 million in 2002 to an energy poverty will likely worsen as energy estimated 590 million in 2030, or about half demand rises by 45 percent by 2030 in tan- the 1.2 billion poor people worldwide who will dem with rapid population growth. Driven by still lack access to electricity two decades from China and India, some 70 percent of the now. At the Fourth UN Conference on the LDCs, demand increase will come from the South – Istanbul, Turkey, May 2011, world leaders mostly in urban areas – which has become the called upon the international community to main engine of global economic growth. assume part of the responsibility for improv- It is critical that just as economic growth ing access to basic energy services for the very rates pick up in Africa, energy access and sup- poor. The Istanbul Program of Action highlights ply should not be one of the major stumble the need to strengthen productive capacities blocks on the road towards realizing the in the world’s poorest countries, with energy region’s vast potential. Energy supply has among the top priorities within a new global emerged as a major bottleneck in most African partnership. The Program of Action further countries. With a population of about one bil- specifies that, in helping develop the energy lion people – a number expected to almost sector in LDCs, development partners are – double by 2050 – per capita electricity con- amongst others – to provide enhanced financial sumption on the continent is one of the lowest and technical support. in the world, and 70 percent the population is OFID welcomes the rising profile not connected to a power grid. Meanwhile, accorded to energy access for LDCs, the pri- Africa would need to grow by 7 percent a year mary beneficiaries of our assistance. As a

2 OFID QUARTERLY JULY 2011 COMMENT

development financing institution founded investment required to achieve 100 percent 35 years ago by OPEC Member Countries, electrification estimated at US$665 billion OFID has remained at the forefront of global through 2030. Multifaceted and creative inno- efforts to fight energy poverty under its Energy vation solutions will be needed in finance, for the Poor Initiative. In promoting universal technology and governance to mobilize these energy access, OFID fights energy poverty on resources, and meet the projected increase in two fronts. First, OFID is making every effort energy demand. The private sector also has a to give universal energy access the priority it direct interest in universal energy access, deserves in the global arena. On June 21-23, which will help improve the business climate OFID made a major contribution towards and create markets in the South, and has a moving energy poverty to the top of the global major role to play in the quest for financial agenda at the Vienna Energy Forum. This is a resources and sustainable energy solutions. high-level international forum supported by Conscious of the important role of the private United Nations (UN)-Energy, several national sector, OFID hosted a Crans Montana Forum governments, and international agencies, High Level Panel on energy poverty reduction at including OFID. Convened under the banner its Headquarters in Vienna, Austria, April 28- Energy for All: Time for Action, the Forum aimed 29, 2011. Organized under the sub-title Energy at agreeing on a strategy to enhance universal Poverty: can Industry Lead the Necessary Change access to modern energy services by 2030. the Panel examined market-based solutions Second, OFID is stepping up its assistance and public-private partnership for boosting to the energy sector. In 2010, 24 percent investment and developing sustainable busi- (US$324million) of resources committed were ness models for rural energy production and assigned to the energy sector. This is a signifi- distribution. cant increase vis-à-vis the 19 percent of public Progress towards broader energy access for sector lending OFID has dedicated to energy the poor is ongoing as we approach the year poverty reduction during the 35 years of its 2012 as the International Year of Sustainable existence, in addition to private sector and Energy for All. While global efforts coalesce grant financing. The lion’s share of this assis- around the high-level goal of Universal Energy tance has been dedicated to refurbishing and Access by 2030, OFID offers a broad range of expanding Africa’s energy infrastructure. solutions, capitalizing on and demonstrating More recently, OFID established a multi-year its unique strengths and dynamic capacity. enhanced grant program aimed exclusively at OFID Member Countries substantiated their providing basic energy access for poor popula- support for the Energy for the Poor Initiative with tions through off-grid and other solutions. the approval of a US$1 billion capital increase This grant program shall be carried out in part- at their Ministerial Council meeting on June nership with national governments, UN agen- 17, 2011. Backed by the staunch support of its cies, the energy industry and NGOs. Member Countries, OFID will continue to Meeting future energy demand will be deepen its presence, particularly in the poorest highly capital intensive. Global energy invest- countries, strengthening partnerships to power ment requirements are estimated at US$20 tril- broad-based sustainable growth and develop- lion through 2030, with the additional capital ment in the South.

OFID QUARTERLY JULY 2011 3 SPECIAL FEATURE

Vienna Energy Forum targets Energy for the Poor

The second biennial Vienna Energy Forum (VEF) took place in Vienna, Austria, June 21-23, 2011, attracting more than 1,200 participants from 110 countries, including heads of state, world-renowned energy PHOTOS: UNIDO/NANCY FALCON-CASTRO experts, policy-makers, and representatives from international organizations, the private sector, academia, and civil society. The VEF is a high- Dr. Kandeh Yumkella, Director-General of UNIDO level international forum supported by United Nations (UN)-Energy – a UN system-wide coordinating mechanism in energy issues – several national governments, and international agencies, including OFID. by Fatimah Zwanikken

4 OFID QUARTERLY JULY 2011 Addressing Forum delegates, OFID Director- General, Mr. Suleiman eld under the theme Energy for All: Time linkages between energy poverty and sustain- H for Action, the main objective of the able development: “If there is any measure J. Al-Herbish underscored Forum was to help achieve the UN targets of of poverty and inadequate development in the need for “enhanced universal energy access, a 40 percent increase in Africa, it is energy,” Mr. Obassanjo said, urging willingness and a genuine energy efficiency, and a 30 percent share of national governments and the private sector political will” from devel- renewables in the global energy mix by 2030. to “take the lead and blaze the trail.” oped countries vis-à-vis During the three-day event, participants dis- Addressing the first High-Level Panel on the universal objective of cussed the main policy issues and a course of Paving the Way for Universal Energy Access, OFID action for providing modern energy services to Director-General, Mr. Suleiman J. Al-Herbish, energy poverty reduction. the poor in two high-level panels, five plenary underscored the need for “enhanced willing- sessions, and six round tables. Subjects of dis- ness and a genuine political will” from devel- cussion included: prioritizing key policies and oped countries to the universal objective of strategies at the national, regional and interna- energy poverty reduction. “Energy poverty tional levels, identifying policy tools and reduction was not integrated into the MDGs financing mechanisms for sustainable energy due to a lack of political will,” Mr. Al-Herbish systems, including renewable sources of energy; said. “This objective should be given priority, as and building a consensus on a joint definition is being done at OFID, which concentrates its of energy access. efforts on finding sustainable solutions for poor In his video-message to the Opening people lacking access to electricity, particularly Ceremony on June 21, UN Secretary-General in Africa,” he stressed. Mr. Ban Ki-moon said the Forum constituted an He noted that the importance of energy important milestone on the road towards uni- for development had been previously recog- versal energy access, sustainable development, nized by the Group of Twenty (G-20) at its and poverty reduction. Former President of meetings in Pittsburg, USA, September 2009, OFID Member Country Nigeria, Mr. Olusegun and Seoul, Korea, November 2010, and at the Obasanjo, also highlighted the important UN Climate Change Conference in Cancun,

OFID QUARTERLY JULY 2011 5 SPECIAL FEATURE

Mexico, December 2010. “There is no short- access to modern energy sources. Conscious United Nations 2030 age of good intentions or promises…, however of the importance of energy for poverty reduc- Energy Targets the issue is the implementation on the tion and sustainable development and the mag- ground,” Mr. Al-Herbish opined. nitude of the resources required, OFID is scaling 1. Universal access to Mr. Al-Herbish highlighted that as a devel- up the level of its energy-related operations, modern energy services; opment practitioner, OFID plays a catalyst role assisted by the US$1 billion capital increase in enhancing access to modern energy services approved by its June 2011 Ministerial Council. 2. A 40 percent reduction for the extremely poor under its Energy for the In addition, OFID has established a multi-year in energy intensity; Poor Initiative (EPI), offering a diversified financ- enhanced grant program to help provide 3. Achieving 30 percent ing mix for projects ranging from providing basic energy access for poor populations, renewable energy in the basic lightening access to communities to Mr. Al-Herbish stated. overall energy mix. regional power projects through integrated He underscored that the energy targets can approaches. Since the 2007 Riyadh Declaration be achieved, provided the different players and the launch of the EPI in 2008, OFID has work together with a clear division of labor. To stepped up its assistance for the energy poor, strengthen aid harmonization and effective- raising the share of its energy operations from ness, OFID recently concluded a Memorandum 19 percent since its inception to 24 percent in of Understanding with the World Bank Group 2010, through 37 energy projects in 26 coun- with energy poverty reduction among the areas tries worldwide. of priority, the Director-General said. “History However, this assistance is not sufficient to is made by those who break the rules. Our meet the growing demand for basic energy serv- Member Countries are breaking the rules: they ices among rapidly growing populations in the are not waiting for others to act,” Mr. Al Herbish South, particularly in urban areas. Globally, an concluded. estimated US$34-40 billion will be needed each He added that OFID Member Countries are year until 2030 to achieve the goal of universal in favor of an orderly transition to renewable

Mr. Faris Hasan, Director of Corporate Planning and Economic Services, OFID (right), stressed the importance of leveraging collaboration from development finance institutions.

6 OFID QUARTERLY JULY 2011 SPECIAL FEATURE

sources of energy – fossil fuels being a finite source of energy – as evidenced by the Interna- tional Renewable Energy Agency (IRENA) Head- quarters based in Dubai, UAE, another OFID Member Country. This, he said, includes a commitment to research and development (R&D) for boosting hydro-capacity, and related renewable energy research. However, he cautioned against the production of first generation biofuels as conflicting with the global objective of food security embedded in the first MDG. Also addressing the high-level segment were: Mr. Marc Perrin de Brichambaut, Secre- tary General, Organization for Security and Cooperation in Europe; Ms. Rebeca Grynspan, Associate Administrator, UN Development Program; Friedrich Kitschelt, Director-General for Africa and Global and Sectoral Issues, Min- istry for Economic Cooperation and Develop- ment, Germany; Edison Lobao, Minister of Mines and Energy, Brazil; and Fabricio Hernán- dez Pampaloni, Secretary of State for Energy, Ministry of Industry, Tourism and Trade, Spain. in recent years. Mr. Faris Hasan, Director of Cor- OFID is playing a The High-Level Panel allowed for a fruitful porate Planning and Economic Services elabo- catalytic role in the exchange of knowledge and lessons from expe- rated on this issue, stressing the importance of global “Energy for the rience, followed by a lively debate. Participants leveraging DFI collaboration to share knowl- Poor” initiative, stepping agreed upon universal energy access as being edge, mitigate risks, diversify the investment up its own support and essential for achieving the eight MDGs and the portfolio, and attract private capital through broader goals of sustainable development. They public-private partnerships. mobilizing that of concluded that the 2030 energy goals and tar- The three-day Forum allowed for an others, including the gets can be achieved in partnership with all rel- important international dialogue on possible private sector. evant stakeholders, provided there is the neces- avenues and innovative technologies for allevi- sary political and strong leadership in support ating energy poverty through both top-down of the goals at the national, regional and inter- and bottom-up approaches. It helped map the national levels. energy-related work and define the respective Discussions continued into the following roles and responsibilities of key stakeholders in two days on a variety of topics, including reducing energy poverty, including specific renewable energy and its potential for energy courses of action for regional and international access; pathways to sustainable energy systems; cooperation, and public private partnerships. energy action to address climate change; energy In his closing statement, UNIDO Director- efficiency; low carbon transformational tech- General and UN-Energy Chair Mr. Kandeh nologies; mechanisms and partnerships for Yumkella said the conclusions and recommen- financing universal energy access; basic rural dations of the Forum shall serve as a basis for an electrification needs, and the way forward. international energy action agenda to be pre- The vital issue of financing universal sented to the UN Secretary-General by end energy access was explored in more detail dur- 2011. Quoting Jeremy Rifkin’s Empathic Civi- ing Plenary Session Five moderated by Dr. Vijay lization, he suggested that transformations in Iyer, Director, Sustainable Energy Department, energy and information communication tech- the World Bank. Mr. Iyer applauded the fact nologies will trigger a third industrial revolu- that some development financing institutions tion that shall bring individual freedom and (DFIs) – including OFID – had substantially dignity to all. The next biennial VEF will be increased their commitment to energy projects held in 2013.

OFID QUARTERLY JULY 2011 7 SPECIAL FEATURE WORDS on ENERGY

“Clean, modern and affordable energy services are intimately linked to poverty alleviation, women empowerment, climate change, and sustainable development, to justice and security. We need nothing short of a clean energy revolution.” Ban Ki-moon Secretary-General of the United Nations

“In our context of “There is a strong need for energy freedom, it is enhanced willingness and a about the individual, genuine political will from individual dignity, developed countries to help access to information, developing countries based and light. It is not on a better recognition of politics.” what is called the ‘climate “Our work is about getting political commit- debt’. That is the massive compensation owed to ments, about accepting universal goals, and the poor for suffering from the damage of climate about developing an action agenda.” change they have not caused. There is no shortage of good intentions or promises such as the ones “The lack of access to affordable, reliable energy made in Cancun in December 2010, however the services is a fundamental hindrance to human, issue is the implementation on the ground.” social, and economic development. Without access to modern forms of energy it is highly “OFID is fighting energy poverty on the ground. unlikely that any of the objectives of the Millen- This is what ultimately counts: it is about helping nium Development Goals will be achieved.” people with concrete projects to have access or better access to modern energy.” Kandeh Yumkella Director-General of UNIDO “There is a strong need for an enhanced coordination between DFIs for better efficiency on the ground. OFID would believe in the coalition of the willing against energy poverty.” Suleiman Al-Herbish Director-General of OFID

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“To achieve energy for all, “Energy development governments and the private requires adequate invest- sector of a few developed and ment. Such investment emerging countries need to needs an appropriate invest- take the lead and blaze the ment environment, consist- trail. Renewable energy is the ing of political stability, legal Africa region’s only option security and adequate social to achieve clean, efficient and adequate energy conditions such as more supply.” balanced societies.” HE Olusegun Obasanjo HE Julio Maria Sanguinetti Coirolo Former Nigerian President Former President of Uruguay

“Paving the way for universal energy access is a big task that many actors have to do together. International Development Organisa- tions such as OFID play a very important role because they can facilitate demonstration projects, they can leverage investments and they can work with national governments to develop plans. They have a very important role that no other actor can fulfil.” Irene Freudenschuss-Reichl Director General of the Austrian Development Cooperation, Austrian Federal Ministry for European and International Affairs, and Founder of the Global Forum on Sustainable Energy

“All the Development Partners need to appreciate that if we are to achieve the Millennium Development Goals and to make an impact “Energy was always at the on poverty, we must address heart of the political debates the issue of energy access and provide energy in the Ivory Coast. It is a which will fuel economic growth.” cross cutting issue in terms of the need for health, education and various other development projects. Mohamed Ibn Chambas Secretary General of the African All this cannot be met without having efficient, Caribbean Pacific Group of States reliable and affordable energy. We need a veritable plan for development, especially with regards to renewable energies.” HE Moussa Dosso Minister of Industry of Côte d’Ivoire

OFID QUARTERLY JULY 2011 9 SPECIAL FEATURE

PHOTOS: THEO STEEMERS/SHELL FOUNDATION

Energy for the rural poor: Cooperation with Shell Foundation to bring solar lanterns to Kenya and Tanzania

As innovative solutions are sought to bring clean, affordable energy to outlying populations worldwide, Africa included, OFID is teaming up with the Shell Foundation (a charitable institution) and solar-light manufacturer d.light (a social enterprise) to supply solar lanterns to thousands of rural poor in Kenya and Tanzania.

by Audrey Haylins

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T he project, which is a replication of a light instead of candles or kerosene lamps to The solar lantern scheme tried and tested throughout Asia, study. He attributes the success of the pro- scheme operates through will distribute solar lanterns to low-income, gram to the high quality of the products and a revolving capital pool, rural households in both countries where to the huge and growing demand from rural which makes financing whole communities without electricity con- households to move away from the use of nections are currently forced to use candles, expensive kerosene. “People want them and available to rural kerosene lamps or LED-powered torches as they can afford them,” he says, adding: distributors to enable their only alternative sources of lighting. “Equally important, however, is the efficiency them to buy large ship- Shell Foundation chief, Chris West, has of d.light in setting up effective links with ments of the inexpensive overseen implementation of the scheme in 40 local distributors who can get the products to and durable “d.light” other countries since 2007. He describes the market.” products. program, which couples the benefits of cheap, The partner countries involved in the user-friendly technology with an innovative project are two of the most severely energy- partnership between d.light, funders and local poor in Africa. In Tanzania, 90 percent of the distributors, as “an exciting departure from tra- 43 million-strong population does not have ditional practice.” The OFID-sponsored project access to electricity. The statistics are equally represents the scheme’s first push into Africa. grim for Kenya, where an estimated 34 million people are in the same situation. In both coun- Quick-fix for the rural poor tries, kerosene is the most widely used source In terms of the global drive to eradicate energy of lighting, costing up to US$7.50 per month poverty, rural electrification in Africa remains and placing considerable strain on households one of the greatest challenges. According to with a typical per capita income of just US$2 a the International Energy Agency, only 12 per- day. For most people, solar alternatives have cent of the rural population in sub-Saharan never been considered, either through lack of Africa has access to electricity. This equates to awareness or because they are deemed too 110 million households, or 550 million peo- expensive. ple, a number that is expected to grow to 630 million by 2015, unless more concerted efforts Marketing support are made. Potential distributors of the solar light are While international action is focusing on expected to be attracted not just by the low the goal of universal access to electricity by cost of borrowing from the respective capital 2030, it is widely recognized that more imme- pools (US$150,000 for Kenya and US$125,000 diate solutions are needed to reach those com- for Tanzania), but also by the support provided munities where connection to the grid is still a to help maximize sales. This will include tai- long way off. lored information campaigns in the targeted The solar lantern scheme operates through communities to raise awareness and under- a revolving capital pool, which makes financ- standing of the benefits of solar products, as ing available to rural distributors to enable well as assistance to the distributors to help them to buy large shipments of the inexpen- them develop more professional business sive and durable d.light products. At present, skills. rural distributors are hampered in their efforts Says Chris West: “There is a tremendous by the high cost of borrowing from local need for social marketing in all ventures of this banks to fund their working capital. This, in kind. One needs to make people aware that turn, inflates the pricing of the products and there is a solution out there and how they can makes selling them to poor users extremely get the best benefit from it.” In the Founda- difficult. tion’s experience, West explains, the best approach is to actually go out into the field Cheap, durable and efficient and allow potential customers to see and feel Chris West estimates that the innovative the product and understand how it works. scheme has already improved around three Mr. West says he is consistently surprised how million lives, including those of some quickly people are prepared to purchase some- 600,000 children, who are now using solar thing once they are convinced of its value.

OFID QUARTERLY JULY 2011 11 SPECIAL FEATURE

Sustainability factor “Deploying grant Under the scheme, all loan repayments, in- by up to 20 percent as a result of the extension funding in a way that cluding interest, will be re-injected into a re- of the working day. Also, children have more volving fund, which will continue to grow in time to study. There are equally numerous it can be revolved … is a value, thus allowing the project to expand with safety aspects to consider: switching from much smarter way of time far beyond the initial target group of kerosene to solar completely eliminates the risk using resources than a 130,000 families. For Chris West, this sustain- of accidental burns as well as the damage to single, repayable type ability factor is the real beauty of the scheme. health and life expectancy incurred through of instrument.” “Deploying grant funding in a way that it can the inhalation of harmful fumes. Chris West be revolved to allow social enterprises such as Chris West has witnessed the implementa- d.light to grow and test and then use that tion of the scheme in countless energy-starved money over and over again to roll out and communities and remains amazed at how such scale-up is a much smarter way of using re- a simple concept can transform lives literally sources than a single, repayable type of instru- overnight. “The continuation of community ment,” he told OFID Quarterly. life after nightfall, in villages where before dark- In addition to the money saved on can- ness meant bedtime, is a sight to behold,” he dles, batteries and kerosene, families who buy says. “Quite simply, it changes society so com- solar light can often see their income increase pletely, it is impossible to quantify.”

New Grant Program tackles grassroots energy access

The solar lighting project is the first “And this includes finding innovative initiative launched under the new ways to bring safe, clean, affordable Energy Poverty Grant Program, which energy directly into the homes of was approved by OFID finance ministers the rural poor.” at their June 2011 meeting in Vienna. He noted further that the partnership The program was set up specifically to with the Shell Foundation was in channel financing to grassroots energy direct response to the call made by schemes in communities which are OPEC Heads of State at their 2007 unlikely to benefit from the kind of Riyadh Summit for OFID to work large-scale power generation and with all stakeholders, including the distribution projects that are carried energy industry, in the battle to out through OFID’s other financing combat energy poverty. windows. The new grant program will seek OFID Director-General, Suleiman to work with experienced NGOs Al-Herbish, welcomed the move. “As and other partners to meet cooking, an institution we are fully committed heating and other household needs to the eradication of energy poverty as well as provide energy for tasks in all its manifestations,” he said. such as irrigation and crop processing.

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Empowering a nation OFID partners with Jamaican electricity provider

As CEO of the Jamaica Public Service Company (JPS), Damian Obiglio oversees the delivery of electricity to the island’s 2.8 million people; no mean task in a country without any natural energy resources, growing demand from the tourism and mining sectors and an annual hurricane season. In the following interview, Mr. Obiglio describes these challenges and explains how a new partnership with OFID is helping to tackle them. He spoke Mr. Damian Obiglio, to Audrey Haylins. CEO of the Jamaica Public Service Company.

OQ: What do you consider to be the main chal- we are working to make generation more effi- lenge of the energy sector in Jamaica? cient – this will be the first benefit that end users will see in terms of a reduction in electric- DO: Unlike other developing countries where ity bills. And third, and most significant, we are the problem is one of access, in Jamaica the trying to bring LNG (liquid natural gas) to problem is one of affordability. There is no Jamaica. The aim is to have LNG as the fuel shortage of electricity, but because the country source for 60 percent of electricity generated has no natural resources, the cost of producing by 2014. This will be tough, as we will have to it is very high, especially when compared to attract private investors to build the necessary income levels. This challenge is the main focus infrastructure. But, we have to persevere, as on of government concerns, as finding a solution top of the efficiency gains associated with LNG, is essential to the economic and social develop- there will be a real economic gain on the pric- ment of Jamaica. ing. However, no solution is immediate. In the * ROR projects are dramatically OQ: What kinds of solutions are being looked at? best case scenario, if we are successful, it will different in design and appearance take three to four years to transfer reductions in DO: Today the Jamaican energy mix is made up from conventional hydroelectric the electricity price to the end user. projects. Traditional hydro dams of 95 percent oil, three percent hydro power store enormous quantities of water and two percent wind power. In a bid to reduce OQ: What is being done to make energy more in reservoirs, necessitating the this dependence on oil, we are taking a number accessible to poor people that can’t afford it? flooding of large tracts of land. of steps. First, we hope to increase the share of DO: The charge structure in Jamaica is designed In contrast, most ROR projects do not require a large impoundment renewables to 15 percent by 2016. We did a around the social concept of electricity. Every of water, which is a key reason small hydro project last year and we are doing citizen has access to the same quality of service why they are often referred to as now a big run-of-river* hydro project. Second, and the same price, whether he lives on the “green power.”

OFID QUARTERLY JULY 2011 13 SPECIAL FEATURE

top of a mountain or in the middle of the growth in the illegal use of electricity in recent city. There is no discrimination. Already 96 per- years, with approximately 110,000 users – cent of people have access to electricity. For the mostly slum dwellers – stealing from the sys- other four percent, there is a rural electrification tem. Together with the government regulator, program, under which the government pro- JPS has embarked on a very aggressive program vides the electricity connection at a very subsi- to reduce this number at a rate of around dized cost. 20,000 per year. On the tariff side, the first 100 kW-hours The program is very innovative and per month have a special subsidized rate called involves JPS partially financing the cost of the lifeline tariff, which covers the basic needs internal wiring to these homes. Previous poli- “There is no shortage of of a family. When you consider that 530,000 of cies have failed because the customer didn’t JPS’s 569,000 customers consume less than 200 have the money to do this to the requisite stan- electricity [in Jamaica], kW-hours per month, it is easy to appreciate dard. We carry out the wiring and finance it but because the country how many people are benefitting from this with an interest free loan to the consumer over has no natural resources, social access to electricity. Yes, it is not a direct a period of up to ten years. These people have the cost of producing it subsidy from the government, but it is a cost not paid for electricity for almost two decades is very high, especially that has been spread over the entire commu- in some cases, so for many it is a cultural when compared to nity to guarantee access to electricity. The cost change. But it is a change that is becoming of 100 kW-hours is approximately US$25 per accepted – nobody likes the stigma of being a income levels.” month, and it is tax free. For people who cannot thief or of being really poor. We are also invest- afford even this basic level, the government has ing in state-of-the-art, anti-theft infrastructure. other social programs. OQ: How is the program going? OQ: Do system losses affect the pricing of electric- DO: Between 2010 and the first quarter of 2011, ity, and if so, what is being done about them? we converted 22,000 illegal users into paying DO: Yes, of course, and we are working to stem customers. More than that, though, we have technical losses through infrastructure upgrad- included these people as citizens of an orderly ing. However, the bigger problem in relation society. With a utility bill in their name, they to losses comes from theft. There has been a can now lay legitimate claim to property or

Power Supply System Fuel Mix in Jamaica SOURCE: JPS Wind Hydro 3% Heavy 3% 17% Fuel Oil

Automotive Heavy Fuel Oil Automotive Diesel Oil Diesel Oil

32% 2011 62% 2014 15% 60% 3% Hydro LNG 5% Wind

Currently 94 percent of electricity generated is from oil. In 2014 LNG is expected to be the fuel source for 60 percent of electricity generated.

14 OFID QUARTERLY JULY 2011 SPECIAL FEATURE

land inherited from parents or grandparents, and they can also get a credit rating, which means potential access to micro credits. If we PHOTO: JPS maintain this progress, we expect to reduce electricity theft to just four to five percent of the total distributed by 2014. OQ: How does JPS, as a public/private partnership, balance what can sometimes be the conflicting demands of its stakeholders? DO: I think we are no different to any other private company. However, as a public service, we have to put our customers first. The government is a demanding stakeholder, but it, like us, wants the best for Jamaica. If the country grows, JPS grows. We try to work together as much as we can, because we both serve the same master, namely the customer. Our majority share- holder, the Marubeni Corporation, has aligned its vision with that of JPS and Jamaica. Of course, Marubeni is looking at profitability and nally. We have all the spare parts to deal with a JPS will use the OFID how to maximize it. But it is very much aware category three hurricane without having to buy that long term profitability depends on the loan to help finance any new resources. After the last event, tropical expansion of its interests of the other stakeholders. storm Gustav, we restored the power to 95 per- OQ: Are you under pressure from any of your stake- cent of customers in less than 72 hours. run-of-river Maggotty Hydropower Plant, holders with regard to a cleaner fuel service? We have also invested a lot in mitigation meas- DO: Jamaica is a signatory of the Kyoto Proto- ures to make the infrastructure hurricane which forms part of col, but has very limited industry. So even if we strength four resistant. People are often sur- the company’s plans burn a lot of fuel, we are below any kind of stan- prised to learn that 99 percent of our distribu- to increase the use of dards. Jamaica has a strong vocation towards tion system is in overhead lines. Why not put it renewable energy. being as less a polluted country as possible. In underground, they say, to avoid hurricane the last ten years JPS has been marking the envi- damage? There are several reasons for this. ronmental standards in the country. We are Firstly, it takes more time to restore power in an under the close watch of environmental underground service. Second, to reconstruct or groups, but Marubeni is a very green and envi- construct an overhead system is seven times ronmentally friendly company, therefore the cheaper than an underground one. And the pressure is coming from the inside more than maintenance over a lifetime is five times the outside. cheaper. Jamaica is not a very rich country, so it OQ: How does JPS cope with the hurricanes and is basically a question of economics. tropical storms that hit Jamaica every year? OQ: JPS has just received a US$25 million loan from OFID. How will these funds be used? DO: When this happens, all other activities are suspended in order to restore power supplies as DO: The two main uses of the OFID loan are: quickly as possible. JPS has worked hard to first, the construction of a 6.7 MW run-of-river become efficient at this and we have developed hydropower plant; and second, support to our a very well oiled machinery to recover power theft reduction program. In a way, they are under any circumstances. In fact, in 2009 we both renewables projects, as the latter promotes won the disaster recovery award from the Edison the more efficient use of electricity. In the inner Electric Institute in the United States. We have a city communities, illegal users were consum- very detailed preparation plan for every hurri- ing 450 kW hours a month before conversion; cane season, and by the time it starts on June 1, after conversion, this fell to 150 kW hours. The we have already gone through several drills inter- difference was absolute waste.

OFID QUARTERLY JULY 2011 15 OFID Ministerial Council holds 32nd Session in Vienna

The Ministerial Council of the OPEC Fund for International Development (OFID), the highest policy-making body of the institution, met in its 32nd Annual Session, June 16, in Vienna.

16 OUTREACH

The Council elected the State of Qatar to the Chair, represented by HE Mr. Yousef Hussain Kamal, Minister of Finance; and the State of Kuwait as Vice-Chair, represented by HE Mr. Mustafa Al-Shamali, Minister of Finance – both for the period extending until the beginning of the 33rd Annual Session. They felt honored by their designation and pledged to work with the OFID Governing Board to establish required policy. by Sam Ifeagwu

17 Newly-elected Council Chairman, HE Mr. Yousef Hussain Kamal, Minister of Finance of Qatar (centre), together with fellow ministers and other participants, as well as Annual Award recipient, Dr. Mazen Al-Hajri (left).

pening the 32nd Session, Mr. Edward HE Mr. Jamal Nasser Lootah, Chairman of O Sanchez, Director of Fiscal Policy at the OFID’s Governing Board, addressing the Coun- Venezuelan Planning and Finance Ministry, cil, examined in similar vein the performance representing outgoing OFID Council Chairman of the global economy, hinting at the residual HE Dr Gustavo Hernandez, told the Council effects of the financial crisis. Despite the recov- that the agenda before the meeting captured ery in 2010, there remain several challenges. the challenges OFID faces in a rapidly changing These challenges include high rates of unem- and increasingly competitive global environ- ployment, recent economic indicators from the ment. He said the global economy was regain- European Union and the United States, cou- ing strength in the aftermath of the 2008-2009 pled with the sensitivity of the Developing financial crisis, but the recovery remained frag- Countries’ economies to the smallest changes, ile and uneven and also beset by uncertainties. which indicate the depth and complexity of Mr. Sanchez said recovery in the emerging the crisis. Mr. Lootah said this led the G-20 economies has been associated with rising countries during their recent meeting in Seoul inflation, and a run-up in commodity and food to highlight the importance of sustained eco- prices. More particularly, the Least Developed nomic growth and building infrastructure in Countries, the main focus of OFID development the Developing Countries. Further, the G-20 cooperation efforts, suffer disproportionately urged development institutions to increase from the consequences of the global food and their assistance to these countries to enable financial crisis, and the difficult access to inter- them to achieve the desired improvements in national financing for development. Hence, their economic growth and infrastructure. the relevance of international financial insti- Given all of the variables, said Mr. Lootah, it is tutions such as OFID in helping to provide this important for OFID to continue to play an access, and to address the basic needs and prior- active part in facing these challenges. ities of the poorest and most vulnerable seg- In his own statement to the Council, Mr. ments of our global community. Suleiman J. Al-Herbish, Director-General of Mr. Sanchez said the Bolivarian Republic OFID, said the year 2011 was an important mile- of Venezuela had no doubt that OFID would stone for OFID – the 35th Anniversary of its continue to play an important role in the social founding. He said it was remarkable how far and economic development of the poorer the institution had come since “those long-ago countries of the world. days of the OPEC Special Fund.” Much, he said,

18 OFID QUARTERLY JULY 2011 OUTREACH

had changed in the intervening years; not least approved in 2010, is clearly a significant step, the size, scope and standing of the institution. they represented 24 percent of committed He said it was all a transformation “in which we funds; a significant increase from 19 percent should take great pride.” He gave a brief since OFID’s inception. overview of OFID’s operations, mentioning the The Council Session took note of the 35th successful completion of OFID’s 17th Lending Anniversary of OFID, the observance of which Program, which ran from January 1, 2008 to has thus far included a number of activities, December 31, 2010. Including the Blend Facil- including Member-States and Staff art exhibi- ity, a total of close to US$1.9 billion was com- tions. Honorable Ministers witnessed the pres- mitted over the period, in support of 136 proj- entation of OFID’s Annual Award for Develop- ects in 72 countries. ment (2011) to Dr. Mazen Al-Hajri of the United Looking at OFID’s performance in 2010 Arab Emirates (story on page 21). Dr. Al-Hajri is alone – and across all financing mechanisms – renowned in the Middle-East and is widely rec- some US$1.4 billion was delivered in much- ognized amongst his peers for his dedication needed development financing, maintaining in operating on children and training surgeons the record level reached in 2009 (see separate in Gaza. story on OFID’s Annual Report, page 22). In Yet other items on the Council agenda terms of sectoral distribution, energy projects were reports on a Governing Board review com- featured strongly, attracting US$324 million in mittee; another on grants operations; and a funding for 18 operations in 11 countries. This is proposal on OFID’s resources and their fully consistent with OFID’s strategic focus vis- enhancement (see box). The Council approved à-vis the Energy for the Poor Initiative (EPI). Other the Annual Report 2010 which details OFID’s beneficiary sectors included transportation, operational performance that year, disclosing agriculture, water supply and sanitation, health the institution’s levels of activities in various and education, among others, in close align- sectors. ment with the MDGs. With regard to the EPI, the shift from words to action, as evidenced by The Council set the date for their next (33rd) the value and number of energy projects Session: June 14, 2012, in Austria.

Ministerial Council agrees on increase in OFID resources

Ministers agreed to increase OFIDs The additional resources will enable flagship role in the cooperation strat- resources in an additional amount OFID to step up its contributions to egy of OPEC Member Countries. of US$1.0 billion, subject to Member development over the next decade, “The fresh funding will provide the Countries completing the necessary in particular to the global Energy for needed impetus to OFID to buttress internal legal procedures. The action the Poor Initiative and related efforts its successes and drive forward its would be in direct response to the to achieve universal energy access by plans,” he declared. 2030. It is the first fresh commitment debilitating effect of the recent Held once a year, the Ministerial to the institution in 30 years. financial crisis on the economies of Council of OFID brings together OFID’s beneficiary countries. It also Director-General Suleiman Al-Her- the Finance Ministers and other would be a renewed gesture of bish told the Ministerial Council that High-Level Representatives of OFID South-South solidarity on the part additional financial support would Member Countries to review of OPEC Member Countries with back the institution’s aspirations to achievements and set the future their less privileged neighbours. discharge its mandate and play a policies of the institution.

OFID QUARTERLY JULY 2011 19 OUTREACH

HE Yousef Hussain Kamal, Qatari Minister of Economy and Finance and Chairman of the Ministerial Council.

32nd Session of the Ministerial Council

From left: HE Dr. Ibrahim Al-Assaf, Minister of Finance of Saudi Arabia; HH Prince Mansour Bin Khalid Al Saud, Ambassador of Saudi Arabia to Austria.

20 OFID QUARTERLY JULY 2011 OUTREACH

Mr. Mohamed Abdulbaki Mohamed, Alternate Governor of the United Arab Emirates to OFID.

HE Dr. Seyed Shamseddin Hosseini, Iranian Minister of Finance.

Mr. Omar Bougara, Governor of Algeria to OFID.

OFID QUARTERLY JULY 2011 21 OUTREACH

From left: HE Mustafa Al-Shamali, Minister of Finance of Kuwait; Mr. Abdul Wahab Ahmed Al-Bader, Kuwaiti Governor to OFID.

Mr. Eduard Sanchez, General Director of Fiscal Policy of the People’s Ministry for Planning and Finance of Venezuela (center).

From left: Mr. Muniru Abiodun Alao, Alternate Governor of Nigeria to OFID; Ms. Aisha Omar, Chief Administration Officer, Nigerian Federal Ministry of Finance.

22 OFID QUARTERLY JULY 2011 OUTREACH

From left: HE I. Gusti Agung Wesaka Puja, Ambassa- dor of the Republic of Indonesia to Austria; Mr. Rainer Louhanapessy, Counsellor, Embassy of Indonesia, Vienna.

From right: H.E. Dr. Fadhil Nabee Othman, Governor of Iraq to OFID; Mr. Diyaa Hassan Jameel, Iraqi Alternate Governor.

OFID QUARTERLY JULY 2011 23 OUTREACH

Dr. Mazen Al-Hajri received this year’s OFID Annual Award for Development in recognition of his philanthropic work with deaf children in Ghaza.

OFID Annual Award for Development 2011 goes to UAE’s Mazen Al-Hajri

by Reem Aljarbou

he OFID Annual Award for Devel- Mr. Al-Herbish said the award was in Dr. Al-Hajri disclosed that the Award T opment, 2011, went to Dr. Mazen recognition of Dr. Al-Hajri’s tireless prize will go toward conducting surgeries Al-Hajri, of the United Arab Emirates. The efforts in promoting and enhancing the on deaf children in Gaza. Each implant formal presentation of the Award was health condition of deaf children in costs €16,000. He has thus far performed made at the 32nd Annual Session of the Gaza. He said such efforts were in 670 surgeries on children, giving a total Ministerial Council of OFID, June 16. accord with OFID’s mission in scores of of 890 implants. Dr. Al-Hajri is in Gaza Dr. Al-Hajri, ear, nose and throat special- developing countries around the world. six times a year. When asked when his ist and philanthropist is a pioneer in his Dr. Al-Hajri’s aim, said Mr. Al-Herbish, interest in charity began, he stated: “as a field and well known across the Middle is to lift people out of lowly conditions child.” East for his charitable work, performing through the provision of healthcare; The OFID Annual Award for Devel- cochlear implant operations on Palestin- and this is at the core of OFID’s man- opment was instituted in 2006. It carries ian children, who have suffered hearing date. a prize of US$100,000. Over the last 35 damage. He also trains young and aspir- Accepting the Award, Dr. Al-Hajri years, OFID has provided more than ing surgeons in Gaza. thanked OFID for the recognition and US$126 million in assistance for more Initial announcement of the Award said the prize money would be used to than 400 projects and programs in the had been made in April by OFID Direc- further assist various programs that renew West Bank and Gaza. All of these have tor-General Suleiman Al-Herbish on hope for deaf children. He said working been implemented through partnerships the sidelines of high-level meetings in with medical communities in Palestine with international and regional develop- the UAE with H.E. Mr. Obaid Humaid aimed at providing Palestinian children ment organizations and some 77 Palestin- Al-Tayer, Minister of State for Financial with a better life and greater prospects for ian NGOs in the West Bank as well as 119 Affairs, and other senior officials. a sustainable future. NGOs operating in the Gaza Strip.

24 OFID QUARTERLY JULY 2011 OUTREACH

OFID announces 2011 Scholars

OFID’s focus on education is further enhanced by its Scholarship Award program which seeks to help guide the young from developing countries to make some difference through education. To mark its 35th Anniversary, OFID for the first time since the inauguration of the program in 2007, awarded the scholarship to two students, both from Africa. Didier Kadjo from Côte d’Ivoire Anthony Bayega from Uganda

The Award aims to support human capacity building in Didier’s uncle, who was in banana production, was forced developing countries through continuous support of out of the industry, resulting in his children not being academic aspiration. The first of the two 2011 Scholars able to complete their studies. This personal experience is Ugandan Anthony Bayega, who gained admission is the driver behind Didier’s dedication towards the to King’s College London to pursue a Master’s in overall development of agriculture in his community. Biomedical Sciences. Anthony’s determination to pursue Didier plans to focus on policy analysis of rural and a graduate degree in this field stems from his work sustainable development in agriculture. He is aiming to at the Uganda Virus Research Institute, where he con- create a dedicated response to the development of ducted research in HIV and AIDS Vaccine. He is export products and food security issues within Côte interested in dedicating himself to work on infectious d’Ivoire. He shared with OFID that having been raised diseases, specifically HIV which has detrimental effects within a farming community, education progress was in sub-Saharan Africa. always threatened, stating: “I am very pleased to have When informed about the Award, Anthony stated that the award. It is really a huge opportunity to attend this he was “so deeply honored and overjoyed by this Master’s program at Purdue University.” timely and wonderful news.” Coincidentally, OFID has The Scholarship Award program is currently in its worked closely with IAVI (the International AIDS fifth year with Scholars attending top academic institu- Vaccine Initiative) since 2010. OFID has assisted IAVI tions in fields related to development. OFID witnessed a through its Special Grants Account on HIV/AIDS with tremendous increase in applications for 2011, with over a total US$3.5 million in partnership for an effective 9,000 prospective students applying from developing AIDS vaccine. countries around the world.

The second Scholar is Didier Kadjo from Côte d’Ivoire, The OFID Scholarship Award program aims at supporting who plans to pursue a Master’s in Agricultural a highly motivated and academically driven individual, Economics at Purdue University. Didier’s interest in from a developing country to overcome one of the the effects of agriculture on his community began as a biggest challenges: the cost of advanced academic gradu- young child when he witnessed farmers experiencing ate training. Each year, the winner(s) of the OFID Award bankruptcy and food security issues which ultimately receive(s) a full scholarship towards the completion of a began to affect his country on a national scale. Master’s degree in a field related to development.

OFID QUARTERLY JULY 2011 25 OUTREACH

Annual Report 2010 highlights commitments across focus areas and financial mechanisms

hese and other figures are published in T OFID’s 2010 Annual Report, which was In 2010, OFID approved released on June 16 following its adoption by the Ministerial Council. Published in English, US$1.37 billion in fresh Arabic, French and Spanish, the Report details financing for develop- OFID’s performance during 2010, highlighting its activities by sector, geographical region and ment to 64 partner financial mechanism. countries. The resources In his Foreword to the Report, OFID Direc- tor-General, Mr. Suleiman J. Al-Herbish, high- were provided primarily lighted the importance of partnerships in opti- as concessional loans mizing the impact of OFID’s contribution to international development. “In 2010, OFID and trade financing, strengthened its ties with key strategic partners, signing cooperation agreements with the with significant amounts also going towards World Bank, the International Fund for Agricul- the private sector and grant operations. As of tural Development and the Andean Develop- ment Corporation.” Furthermore, he added December 31, 2010, OFID’s cumulative devel- that: “Working with our partners, we shall con- opment assistance stood at US$13.1 billion. tinue to strive towards realizing our vision of a world where sustainable development, centred on human capacity building is a reality for all.” The Director-General thanked OFID’s by Anna Ilaria-Mayrhofer Member Countries, whose support, despite the setbacks suffered in the global crisis, remained steadfast.

2010 commitments In the course of 2010, the total amount committed in development financing was US$1,374.3 million. Assistance to Africa represented the largest share, accounting for 54 percent of the total. The energy sector attracted the lion’s share (24 percent) of approvals, supporting 18 projects in 11 countries. In terms of

26 OFID QUARTERLY JULY 2011 OUTREACH

324.2 Energy 257.0 Transportation 251.6 Finance 186.2 Agriculture The energy sector accounted for almost 118.6 Water Supply one-quarter of total 90.8 Industry commitments in 2010, 73.5 Health as OFID scaled up its 32.7 Telecommunication Approvals in 2010 by sector efforts to address the 27.6 Education (in US$ million) pressing issue of energy 12.3 Palestine & Emergency poverty in its partner 1,374.3 Total approvals countries. distribution by financial mechanism, the The other regions were supported as follows: Public Sector continued to be the main channel Latin America and the Caribbean received of support, with approvals amounting to 25 percent of approvals, equivalent to US$343 US$673.9 million for projects in 38 countries. million, for 23 projects in 15 countries; Asia accounted for US$261.3 million, representing Focus Areas 19 percent of total commitments, distributed The report highlights OFID’s focus areas, link- among 18 countries for 28 operations; and four ing them to the Millennium Development emerging countries in Europe shared the Goals (MDGs). Worldwide, operations were dis- remaining US$29 million. tributed as follows: Energy took US$324.2 million; Transporta- Financial mechanisms tion US$257 million (18.7 percent); Agriculture While the Public Sector continued to attract US$187 million (13.5 percent); Water Supply the bulk (46 percent) of commitments in 2010, and Sanitation US$119 million (8.6 percent); substantial sums were also delivered through Industry and Telecommunications: US$123.7 the Private Sector (US$227.3 million) and Trade million (9 percent), and Health and Education Finance (US$481 million) Facilities. Private Sec- US$100 million (7.3 percent). tor operations included financing to enhance Commenting on OFID’s activities in 2010, the availability of credit to small and medium the Director-General pointed out that energy size enterprises, while the majority of trade access must be a global priority: “OFID agrees in transactions supported the import and export granting the goal of universal energy access by of energy and food products. Some US$28.1 mil- 2030 the priority it deserves, working towards heightening international recognition of lion was approved in outright grants for 45 energy poverty alleviation for growth and sus- projects across all developing regions of the tainable development.” OFID believes that uni- world. By far the largest share of this amount versal energy access should be the “missing went to HIV/AIDS operations and to activities ninth” MDG. in Palestine. Regional operations 17th Lending Program The Report also highlights the achievements of In keeping with OFID’s mandate to give The 2010 Annual Report is priority to the low-income countries, the the 17th Lending Program (2008–10), which available in Arabic, English, Africa region with US$737 million secured represents the framework for OFID’s Public Sec- French and Spanish and as a more than half of the total commitments for tor operations. Over the three year period, close CD-ROM in all four languages, the year. These funds supported 52 projects in to US$1.9 billion was committed in support of as well as in PDF format on the OFID website at www.ofid.org. 27 countries. 136 projects in 72 partner countries.

OFID QUARTERLY JULY 2011 27 OUTREACH

Guests examine the unique stamp collection of Ian Begg, which assembles stamps issued by all 12 OFID Member Countries in 1976, the year of the institution’s founding.

developed in the 12th century; Jaleh Ekhtiar’s contemporary fashion designs mixed with exotic textures and “complete excesses of volume,” with a sense of post-1950s-elegance; Jorge Gonçalves Romero’s work entitled “human being,” utilizing different techniques with the human figure appearing suspended or in areas where the term gravity is non-exis- tent, almost floating; Jorge Gonçalves Maldonado’s images with political messages inviting viewers to analyze and build a point of view; Suzanna Art Exhibition: Hamelink’s pictures of sculptures; Inno- cent Ikpefuran’s paintings inspired by nature and vivid memories of his youth; OFID Staff exhibits works Rachel Mohawege’s works capturing current feelings and statement allowing the viewer to live that specific moment through illustrations. n celebration of OFID’s 35th Anniver- nomic and social history behind the Yet other exhibitors include Alex I sary and following the success of the stamp issues of each country; Adam Meirone-Gómez who is inspired by the first OFID Staff Art Exhibition in 2006, Espelee Cohen’s acrylic painting of ele- process of searching for new paths and the second Staff Art Exhibition showcas- ments from his scientific background as experiencing adventure and aims to cap- ing the “artistic” side of OFID staff mem- an aquatic biologist; Jacobs Edo’s bronze ture moments in his works and commu- bers and their families was launched on sculptures done using tools and similar nicate them to facilitate an impact on the June 27, 2011. Some 17 artists decided to methodology in casting bronze and wax viewer; Mojgan Sanandaji who tries to share their work in this exhibition pre- capture “the truth in everyday form,” the senting jewelry, photography, sculpture, images of small lives with big meaning in painting, ceramics and mediums which her photographs; Micki Strick-Tadesse reflect the diversity and skill of the artists. presenting in his works different observa- Mr. Suleiman J. Al-Herbish, Director- tions from various destinations he has vis- General of OFID, told a gathering at the ited around the world; Nahal Tabatabai- opening of the exhibition that OFID’s Chury’s jewellery is inspired by the orient; staff constitutes the key resource of the Immanuel Tagger’s photos reveal an institution. Also in a foreword in the insider’s view of his visits to Venezuela, exhibit brochure, Mr. Al-Herbish noted Bolivia and Peru, while the photographer that it was “a special tribute to our staff, himself is “invisible” so as not to disturb whose dedication, creative talents and the environment he documents; and other personal attributes have helped Roberta Vranješ’s expressionist art make this institution what it is today.” strongly influenced by Van Gogh. The works of the artists are as diverse “Such social events can help give an as their disciplines. They include porce- insight to the more creative and artistic lains by Rima Al-Juburi exploring the big side of the OFID family, something that is Mesopotamian heritage; Shatha Al-Qal- not always visible during the regular work laf’s photographs conveying feelings and routine,” said Jorge Gonçalves Romero, emotions; Ian Begg’s collection of stamps Dr. Jorge Goncalves Romero, curator of the Curator of the exhibition. “It brings ideas providing insight into the political, eco- OFID Staff Art Exhibition. and people closer together.”

28 OFID QUARTERLY JULY 2011 April – June 2011

APRIL 4 APRIL 19 MAY 4 namely: A two-year Therapeutic Massage Course and a one-year International Computer Driving OFID Scholar visits OFID Participants from the OPEC Public sector loan Licence Course. Secretariat’s Multi-Disciplinary agreement signed Mr. Robert Pwazaga, OFID’s Training Course visited OFID to 2010 Scholar, conducted a work Vietnam. US$11.5 million. Akshaya Patra Foundation, receive an overview of the insti- visit to OFID. Mr. Pwazaga, Vietnam Healthcare Project. India. US$30,000. To help tution’s mandate, activities and purchase 5,000 meals to under- from Ghana, is studying for an To expand healthcare infrastruc- mission. The 27 attendees, all privileged children in the Puri MSc in Development Studies ture in the capital Hanoi and professionals from OPEC Mem- region, Orissa State, as part of at the London School of Tuyen Quang Province, which ber Countries, met with OFID the Foundation’s school meals Economics and Political Science. will benefit more than 250,000 Director-General, Mr. Suleiman program. Mr. Pwazaga obtained a BA in people. Geography and Rural Develop- J. Al-Herbish, who briefed them about the cooperation between ment from Ghana and plans on JUNE 6 returning to his home country OPEC and OFID, as well as MAY 26 to focus on developmental the history behind the creation of OFID by OPEC Member OFID receives high-level efforts there. OFID inaugurates art Countries. Colombian delegation exhibition OFID Director-General APRIL 12 As part of its in-house exhibition Al-Herbish welcomed a delega- APRIL 28-29 series, OFID inaugurated an exhi- tion from Colombia, which Public sector loan bition that showcased works of OFID hosts was headed by HE Freddy agreement signed Balinese artist Made Wianta. See Padilla de Leon, Ambassador Crans Montana Forum story page 60. Grenada. US$10.5 million. of Colombia to Austria. The Schools Rehabilitation. To OFID hosted a High Level Panel delegation, consisting of 29 high- reconstruct, rehabilitate and entitled Energy Poverty: Can Research grants approved ranking military officials, industry lead the necessary change? received a briefing on OFID’s equip 10 schools and seven Danish Committee for Aid to activities, in particular those school kitchens damaged by Afghan Refugees. US$100,000. concerning Latin America. hurricanes. MAY 2 To support a Development of Water Expertise and Training Pro- Minister of Finance of APRIL 13 MoU signed gram in Afghanistan, which will be offered to local community Honduras visits OFID On May 2, OFID Director-General groups, NGOs and relevant gov- University of Hamburg OFID Director-General Mr. Suleiman J. Al-Herbish ernmental departments. students visit OFID Al-Herbish received the Minister signed a memorandum of under- of Finance of Honduras, Twenty-seven Master’s Degree standing (MoU) with the Asian Saudi Center for Rehabilitation HE Mr. William Chong Wong. students from Germany’s IFSH Development Bank. and Training of Blind Girls, The meeting provided an oppor- Hamburg (Institute for Peace, See story page 51. Jordan. US$130,000. To support tunity for the Minister to review Research and Security Policy), the attendance of 22 visually the country’s partnership with visited OFID to learn about its impaired girls in two courses for OFID, including future areas mission and tour the premises. the academic years of 2011-2013; of cooperation.

OFID QUARTERLY JULY 2010 29 OFID DIARY

OFID Director-General, Mr. Al-Herbish (center), alongside fellow panellists at a High Level Panel of the Crans Montana Forum on energy poverty, which was hosted at OFID HQ.

JUNE 8 JUNE 16 Burundi. US$11.92 million. Mozambique. US$13.53 million. Agricultural Value Chain Devel- Artisanal Fisheries Promotion. opment Program. To help reduce To improve incomes and liveli- Armenian Prime Minister OFID Ministerial Council poverty and improve food secu- hoods of poor households, nd visits OFID holds 32 session in rity through the development of representing some 45,000 people Vienna, Austria The Prime Minister of the agricultural value chains. Activi- involved in artisanal fishing, Republic of Armenia, HE Mr. The Ministerial Council, OFID’s ties will be carried out in seven through the improvement of Tigran Sargsyan, met with highest policy-making body, provinces populated by some related infrastructure; develop- Mr. Suleiman J. Al-Herbish, adopted the Annual Report for 3.6 million people. ment of value chains; and, the OFID Director-General, to discuss 2010 and discussed a number establishment of financial present and potential areas of of key issues. See story page 16. Cameroon. US$10 million. services, among other activities. cooperation. The Prime Minister Bikoula – Djoum Road. To con- Paraguay. US$20 million. was accompanied by HE Vache 135th Session of the struct a 38 km road in order to open up rural areas situated along National Interconnected Gabrielyan, Armenian Minister Governing Board approves the road, and help improve the Electricity System Upgrading. of Finance. some US$116 million in fresh financing for living conditions of the popula- To improve the availability, tion by enhancing access to basic reliability and quality of electrical Public sector loan development social services and marketplaces. power supplies to poor and rural agreement signed Public sector project communities in 14 departments Armenia. US$20 million. Rural loans approved The Gambia. US$6 million. located in the Eastern Region, as Asset Creation. To help finance Energy Development and well as in the capital Asunción. Albania. US$20.4 million. the construction or rehabilitation Access Expansion. To expand Tirana – Elbasan Road To con- of public utilities as part of a the electricity grid to cover disad- Samoa. US$12 million. struct a 27-km long road that wide-reaching project aimed at vantaged areas in the Kanifing Petroleum Bulk Storage Facility will improve access to social improving incomes and raising Municipality and rural settle- (Phase IV). To help address the services and marketplaces, and living standards among poor, ments in the Western Kombo population’s basic energy needs help promote the country’s trade small-scale farmers. Central Region and install by strengthening related infra- opportunities. Around 750,000 new household and business structure, thereby enhancing people are expected to benefit connections. the country’s fuel supply chain, JUNE 9 from the project. benefiting an estimated 180,000 Kenya. US$15 million. people. Public sector loan Belize. US$8 million. Rural Electrification. To help agreement signed Golden – Stream Big Falls – boost Kenya’s socio-economic Technical assistance Guatemala Border Road development through the electri- grants approved Kyrgyz Republic. US$7.4 mil- Rehabilitation. To complete fication of 591 “load centers,” lion. Reconstruction of Bishkek- rehabilitation works on a road such as agricultural marketing Consultative Group on Torugart Road. To rehabilitate a located in the South Toledo and processing centers; tea and International Agricultural key stretch of road, which will District, thus helping promote coffee factories; health facilities Research. (CGIAR). US$1.2 mil- help enhance trade opportunities businesses and tourism. Some and educational institutions, as lion. To be divided among eight and ease the flow of passenger 30,000 people will benefit from well as installing new household research centers sponsored by and freight traffic. the project. connections. the CGIAR.

30 OFID QUARTERLY JULY 2011 OFID DIARY

Institut Pasteur. US$1 million. ment Congress, which will hold To help finance upgrading of a in Kuala Lumpur, Malaysia Meetings attended by OFID laboratory network for diagnos- November 21-24. ing tuberculosis (TB) and testing drug-resistant strains of TB in Mentor Arabia. US$100,000. APRIL 5-6 MAY 9-10 eight African Countries. To support the expansion of the DAMASCUS, SYRIA DOHA, QATAR project Unplugged, which will Annual Meeting of the 6th Annual Conference on International Fund for carry out activities aimed at pre- Arab Financial Institutions “Enriching the Middle East’s Agricultural Development. venting drug use among adoles- Economic Future US$1.5 million. To help finance cents in the Arab region. ” a food security and livelihood APRIL 11-12 enhancement program that will Preparatory Commission for MAY 13 carry out activities in Djibouti, the Comprehensive Nuclear- NEW YORK, USA Ethiopia and Somalia. Test-Ban Treaty Organization 2011 Growth Market Sum- PARIS, FRANCE (CTBTO). US$100,000. mit organized by Goldman International Energy Shell Foundation. US$250,000. To help finance the participation Sachs Agency conference entitled To help fund an initiative that of 10 experts from developing “Energy for all: financing aims at providing lighting for countries to attend the official access for the poor” low-income households in technical meetings of the CTBTO APRIL 13-19 Kenya and Tanzania. in 2011 and 2012. See story page 10. WASHINGTON DC, USA MAY 17-18 Spring Meetings of the JUNE 17 RIYADH, SAUDI ARABIA Grant approved under the World Bank and the Inter- Euromoney Saudi Arabia HIV/AIDS Special Account national Monetary Fund MoU signed with EDBI Conference 2011 World Health Organization. A Memorandum of Understand- US$2 million. To help finance ing (MoU) was signed with the APRIL 18-20 MAY 20-21 Phase I of a project that aims at eliminating mother-to-child Export Development Bank of Iran WASHINGTON DC, USA VIENNA, AUSTRIA transmission of HIV in Lesotho, (EDBI). The MoU was signed by Executive Forum for Senior Center for Global Dialogue Mr. Al-Herbish and Mr. Bahman South Africa, Zambia and Central Bankers and Official and Cooperation Confer- Vakili, Chairman and Managing Zimbabwe. Sector Asset Managers ence entitled “Dialogue and Director of the EDBI. Under the Cooperation for Change” agreement, EDBI and OFID will organized by the World Grant approved under work closely together to identify Bank the Special Grant Account projects of joint interest. for Palestine MAY 28 APRIL 28-29 BEIRUT, LEBANON United Nations Relief and JUNE 20 Works Agency. US$2 million. VIENNA, AUSTRIA Meeting of the Arab Energy To support a program that Crans Montana Forum’s Club Loan agreement signed implementing a job creation High Level Panel on “Energy program in the Gaza Strip. Laos. US$12 million. Poverty: can industry lead the JUNE 8-9 Second Northern Greater necessary change?” hosted by Mekong Subregion Transport VIENNA, AUSTRIA Research grants approved OFID Network Improvement. To im- World Economic Forum on Active for Humanity in Need prove a total of 143 km of roads Europe and Central Asia (Austria). US$100,000. To pro- that pass through Houaphanh 2011 vide dependable water supplies MAY 3-6 Province, and in turn help reduc- and safe sanitation, as well as ing poverty by increasing the HANOI, VIETNAM hygiene awareness training, population’s access to social 44th Annual Meeting of the JUNE 21-23 among pastoral communities services and marketplaces, as Asian Development Bank’s in Hurri Hills, northern Kenya, VIENNA, AUSTRIA well as promoting trade activities. benefiting some 1,750 people. Board of Governors Vienna Energy Forum 2011

International Water Associa- tion (IWA). US$100,000. To sponsor the attendance of www.ofid.org 40 participants from developing countries at the 2nd IWA Develop-

OFID QUARTERLY JULY 2011 31 OFID DIARY

135th Session of the Governing Board From right: Mr. Jamal Nasser Lootah, Governing Board Chairman; Mr. Suleiman J. Al-Herbish, Director- General; Mr. Fuad Albassam, At its 135th Session in Vienna, OFID’s Governing Board Acting Assistant Director-General, Public/Private Sector Operations. approved close to US$125 million in fresh financing for development. The bulk of this (US$117 million) will help finance a range of projects across nine partner countries. Focusing on the energy, transportation and agriculture sectors, these projects will enhance living standards for several million people. Other approvals at the meeting included six grants totalling around US$8 million.

Mr. Omar Bougara, Governor of Algeria to OFID

32 OFID QUARTERLY JULY 2011 OFID DIARY

Mr. Ahmed M. Al-Ghannam, Saudi Alternate Governor.

Mr. Mohamed Abdulbaki Mohamed, Alternate Governor, United Arab Emirates.

Iranian Governor, HE Dr. Behrouz Alishiri (left), with Alternate Governor, Saman Ghasemi.

OFID QUARTERLY JULY 2011 33 OFID DIARY LOAN SIGNATURE

May 4 Mr. Al-Herbish and HE Mr. Vu Van Ninh, Minister of Finance of Vietnam, signed a US$22.5 million loan agreement for a priority healthcare project involving the construction, renovation and equipping of two hospitals. The project will benefit more than 250,000 people.

June 9 HE Ms. Roza Otunbayeva, President of the Kyrgyz Republic (center), and HE Mr. Melis Mambetjanov Minister of Finance (right), with Mr. Al-Herbish following signature of a US$7.4 million agreement for a road project. Said Ms. Otunbayeva: “This project is crucial for our country’s development, as it will facilitate the movement of export and import goods.”

34 OFID QUARTERLY JULY 2011 OFID DIARY

June 8 HE Mr. Tigran Sargsyan, Prime Minister of Armenia (second from left), accompanied by HE Mr. Vache Gabrielyan, Minister of Finance (right), Mr. Ashot Hovakimian, Armenian Ambassador (second from right), and Mr. Al-Herbish (left). The country has procured a US$20 million loan from OFID for a rural asset creation project.

June 20 HE Khamkheuang Bounteum, Ambassador of Lao PDR to Austria, signed a loan agreement worth US$12 million. The funds will help finance the Second Northern Greater Mekong Subregion Transport Network Improvement Project.

The full list of loan signatures can be found on pages 29-31.

OFID QUARTERLY JULY 2011 35

OFID in the field

For OFID, development is all about making a real difference in the lives of people who are trying to build themselves a better future. It’s about simple things like preventing disease and putting food on the table, getting children to school and youth into jobs. And it’s about providing basic necessities such as clean water, proper sanitation and cheap, reliable energy.

OFID in the field hears from people for whom life is brighter thanks to the work of OFID and its partners.

OFID QUARTERLY JULY 2011 37 Vietnam works at raising living standards By Silvia Mateyka

he mountainous northern province boost farmers’ incomes, enhance access to Electricity changed the life of Phan dra- T of Thai Nguyen is one of the poorer basic services and improve the living con- matically. It brought power for light to provinces in Vietnam, with 27 percent of ditions for the population of this region. work, read, for TV and kitchen devices households living below the poverty line. such as electric stoves, rice cookers and Predominantly rural, the province has a Electricity for life refrigerators. “But electricity brought not total population of 1.2 million, who day Before the home of tea farmer Phan only changes that just made life safer and by day have to struggle with a lack of basic Quyet, located in a remote area in the Vo better but also increased my family’s social infrastructure such as electricity, Nhai district of the Thai Nguyen income” says Phan. With the instalment streets, schools, health centres and clean province was connected to the national of electric powered water pumps that drinking water. Recognizing the need for electricity grid through the newly con- enable more regular and controlled action, OFID co-financed with the structed transmission line, his life and watering, he managed to improve and Government of Vietnam a multipurpose that of his family was much more diffi- increase his harvest reliability. Further- poverty reduction project in 2006, aimed cult. “Now, when I turn on the switch more, with the use of an electric tea- at improving and rehabilitating rural there is light. My life is normal now, not processing machine, he is now able to infrastructure in order to increase agricul- like in the past when we could not see produce more tea of higher quality tural and non-agricultural productivity, well. That’s why I am happy.” much faster.

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Through this project, one transformation station and two power transmission lines have been constructed in the Vo Nhai and the Phu Luong district, delivering electricity to hundreds of rural households. Roads for development As well as the absence of electricity, the residents of the Thai Nguyen province had to live with poor road conditions. Kim Anh, a mother of two children living in the Phu Luong district, explains how her life has changed after the construction of a road and a bridge that connect her village to the neighbouring commune where her children go to school. “Now during the rainy season, the adverse weather does not anymore hinder my Having electricity has transformed daily life for Phan Quyet and his family. They now have power children to go to school and I am not wor- for lighting, kitchen appliances and even television. ried anymore”. It used to be a long and bumpy journey to the Vo Tranh commune and the streets were often inacces- have to go to the farther away district that contribute towards improved water sible during the rainy season as the river boarding school which it would not have control, availability and distribution. flooded them. been able to handle the demand” says With the upgrade of the Dong Hy Poly- With OFID’s support, the upgrading Duong’s mother. Now this school pro- clinic in the Dong Hy district with over and construction of more than 50km of vides primary education to more than 120,000 inhabitants, the health centre is rural roads and seven bridges have had an 250 pupils and jobs to roughly 25 teach- now able to bring life saving care within immediate impact on the people living ers. “Before, the school was built with reach of many families. “The conditions in the Thai Nguyen province, cutting bamboo and everything was very old. were very poor before the renovation and their driving times in half and making Equipment was short and there were upgrade and we could not meet the their journeys much safer. But roads are fewer teachers,” says Trinh Lo, the Direc- demand for healthcare of the people in not only a service to drive on. The tor of the school. “It is a revolution for all this area,” says the director of the hospi- upgrade of four inter-communal road of us” Trinh explains. “A revolution, tal. It was not possible to treat more than routes has also created economic oppor- because the bamboo classrooms have 100 patients. There was a lack of equip- tunities for many people living in this now become real buildings and the stu- ment and a shortage of staff. “OFID’s loan region, who have now easy access to the dents, their parents and teachers are very has helped us to expand from a 100-bed markets and can sell their products. happy because the learning environment health facility to a 200-bed polyclinic has improved tremendously.” being now able to offer services includ- Schools to fulfil dreams Nine schools with new classrooms, ing surgery, paediatric care and obstet- Kim’s children are no more hindered to equipment and accessories are now giv- rics” the director explains. In addition, go to school and Duong, her twelve year ing more than 3,000 young Vietnamese people from the neighbouring commu- old son, wants to study as much as he can the chance to complete their education nities are now coming to the Dong Hy to fulfil his dream of becoming a doctor and fulfil their dreams. Polyclinic to receive medical treatment one day and help the poor and the sick. because of the high standard of the health This dream would have been much Clean water and lifesaving centre. “The happiness of the patients is harder to achieve if there had been no pri- healthcare my happiness,” the director concludes. mary school near his home. With OFID’s Among the multifarious activities under- The Thai Nguyen Province Multipur- support, more than 100 new classrooms taken by this project, was also the con- pose Rural Development Project has ben- have been constructed in four districts struction and upgrade of 17 health clinics, efited over 380,000 inhabitants in 41 com- among which is the primary school of two health centres (polyclinics) with a munes of the four mountainous districts Duong in the Vo Tranh commune. “If this total capacity of 540 beds and the con- of the province. It has helped to stimulate school wasn’t built here, children would struction of four drinking water reservoirs rural economic development.

OFID QUARTERLY JULY 2011 39 A local market in Banja Luka. As a result of the OFID/IFAD co-financed project, peasant farmers can now access markets more easily and make a decent profit from sales of their produce.

PHOTO: IFAD/PAOLO MARCHETTI Bosnia-Herzegovina: A successful economic transition by Damelys Delgado

fter three years of war, 1992-1995, Since 1997, OFID has been taking part in tributed a public sector loan of US$6 mil- A which took 100,000 lives, dis- Bosnia’s recovery through support of lion, equivalent to 33 percent of the total placed over one million people and projects in education, infrastructure and cost. Enormous benefits have resulted caused damage estimated at more than agriculture. About half the rural popula- from the collaboration with the Min- US$100 billion, Bosnia-Herzegovina’s tion, estimated at two million people, istries of Agriculture, Forestry and Water economy has been dramatically trans- relies on the agriculture and livestock Resources, the International Fund for formed. Thanks to international assis- industry. These sectors have the poten- Agricultural Development and OFID. tance, the country has made great tial to play a major role in the rural eco- The project has been implemented in progress in economic and social devel- nomic revival of the country and in the the poorest areas to increase the incomes of opment. According to the World Bank, reduction of poverty. rural inhabitants in 14 municipalities. Bosnia-Herzegovina, a country of four Although the project is still ongoing, all million people, has directed massive Benefiting farmers and women civil works contracts have been completed efforts at recovery, deepening reforms Miguel Linares, OFID’s Officer-in-charge and OFID’s loan has been fully disbursed. and joining the European Union, of the Bosnia-Herzegovina projects, OFID financed the construction of “Market thus achieving a successful economic pointed at the success of a Rural Enterprise Linking Infrastructure” and “Enterprise transition. Enhancement Project, to which OFID con- Investments and Rural Finance.”

40 OFID QUARTERLY JULY 2011 OUTREACH

With regard to “Market Linking Infra- structure,” Mr. Linares explains that “the infrastructure investments financed were Fatima Gerzic screened against project selection criteria proudly displays the (such as number of poor beneficiaries, honey products that cost effectiveness, synergy with other make up her micro- projects, etc.) and from there a total of 47 infrastructure sub-projects were selected enterprise. With the to be co-financed by OFID”. He added help of a micro-loan that the co-financed investments enabled under the project, the upgrading and rehabilitation of 33 she has been able to roads, with a total length of approxi- diversify and expand mately 53km; nine water supply systems, production. two sewage systems and the rehabilitation of three multipurpose buildings.” The project is expected to benefit more than 20,000 households, positively impacting roughly 100,000 people. Thanks to the project, residents have increased access to markets, are able to reduce travel time and vehicle break- downs and children have much better access to schools. Additionally, new water delivery systems have improved community health with resulting savings in labor. Mr. Linares highlights the fact that PHOTO: IFAD/PAOLO MARCHETTI the project’s targets were exceeded by 40 percent, as 47 sub-projects were implemented, as compared to the 33 planned at the time of appraisal. Furthermore, through the “Enter- prise Investments and Rural Finance,” OFID also helped sponsor micro-financing to individual producers. The outcome has been the provision of 1,050 loans, with an average loan amount of approximately US$3,900. Some 97 percent of these loans have targeted animal production (dairy, meat and poultry) as well as the purchase of animals, mechanisation equipment and improvements in barn structures. The remaining three percent was used for fruit and vegetable production. With 51 percent of total loans extended to women, OFID has promoted gender equality and empowerment of women, the third of the United Nations’ Millennium Development Goals. OFID’s Miguel Linares (center back) with a group of rural Meanwhile, Bosnia-Herzegovina is producers, who have all benefited from micro-financing witness to the idea that peace and provided under the OFID/IFAD initiative. progress are possible for all human beings, without ethnic distinctions.

OFID QUARTERLY JULY 2011 41 OUTREACH

Cape Verde: Progress toward improved health services

n its effort to improve healthcare islands of Boa Vista, Maio, Fogo and San- islands are relatively distant from one I delivery, Cape Verde’s govern- tiago. A fifth centre in the municipality of another. The total area of the country is ment is working with OFID to address Santa Cruz, on the island of Santiago, 4,003 km2, of which approximately 10 some of the issues identified as con- required rehabilitation. Each new centre percent can be cultivated. In 2002, the straints on access to healthcare in the will serve a population ranging from total population of Cape Verde was esti- country. OFID stepped in to take on a approximately 4,500 to 24,000. The cen- mated at 460,000 inhabitants. Health Centres Project; the first such oper- tres will provide 24-hour emergency serv- Since independence in 1975, Cape ation to be financed by OFID in Cape ices, general curative care, preventive Verde has made considerable gains in eco- Verde’s health sector. care, public health activities, delivery nomic development and quality of life, The objective is access to, and units, medical services, dental care and despite scant natural resources. Cape improvement in the quality of primary hospitalization wards. The cost of the Verde has taken advantage of rapid eco- healthcare in five municipalities: Boa project is US$9 million of which OFID is nomic growth in the last two decades to Vista, Maio, Mosteiros, Tarrafal, and financing US$6.1 million. invest heavily in human development, Santa Cruz. Specifically, four health cen- Cape Verde, locate off the coast of particularly in education and health. ters were planned to be built in the West Africa, is an archipelago of 10 large Poverty has decreased sharply. In 1988, municipalities of Boa Vista, Maio, islands and several other smaller islands. almost half of the population was living Mosteiros, and Tarrafal, located in the Nine of the islands are inhabited. The in absolute poverty. In 2010, the figure

The new health centers provide 24-hour emergency services as well as treatment and preventive medicine. PHOTOS: LUISA GIL/OFID

Medical staff report that the new facilities are making the delivery of healthcare easier and more comfortable for patients.

42 OFID QUARTERLY JULY 2011 OUTREACH

Among the biggest improvements is the availability and quality of maternity care, both pre- and post-delivery, which will have a highly beneficial long-term impact on the country’s health indicators.

was 24 percent. Life expectancy at birth is which were rather small and poorly healthcare from the centre. The civil currently 71 years, the third highest in equipped to serve the population num- works have been completed but the Africa. Cape Verde is likely to achieve bers in the beneficiary areas. She was acquisition of equipment is still on-going. most of the Millennium Development informed that, as a result of the new and Some additional, basic equipment was Goals (MDGs) by 2015. much-improved centres, the local popu- provided by a non-governmental organi- A large proportion of the population lation is now able to consult a doctor zation, attracted by the works underway is young (60 percent); and the increasing whenever needed. as initiated by the OFID-Cape Verde coop- life expectancy with a rising number of A tragedy of much of the developing eration. Nonetheless, despite the tempo- people over 60 (seven percent) presents world is that huge population groups rary dearth in equipment supply, the cen- challenges to the health care system. exist without adequate medical care, no tres are functioning quite well. At OFID, Ms. Luisa Gil, Senior Oper- doctors in sight to consult and a gaping To date, OFID has extended 17 loans ations Officer, is in charge of Cape Verde lack of medication. From observations, it to Cape Verde, totalling almost projects. She told the Quarterly that OFID appears these problems are greatly US$35 million. Seven loans were for bal- is proud to have made some contribution reduced in the areas served by the OFID ance of payments support amounting to to these important improvements: OFID project. Pregnant women now obtain pre- US$8.1 million; one was a Commodity has financed two education projects (in natal care, which previously was lacking, Imports Program in the amount of addition to the health centers project) or the women had to travel great dis- US$1.5 million, and nine were project and improvement in water supply and tances to obtain. This was a major imped- loans in the total amount of US$25 mil- sanitation, as well infrastructure improve- iment in localities where there are trans- lion. The BOP loans have generated local ments. portation limitations. Indeed, in the new counterpart funds, which have partially Earlier this year, Ms. Gil had the priv- health centres visited, there are separate been utilised in five development proj- ilege of visiting Cape Verde to see two of wards for pre-natal and post-natal care ects. The project loans were extended to these health centres – in Tarrafal and and also for sick patients. There were finance two operations in the telecom- Mosteiros, on the islands of Santiago and enough hospital beds, kitchen facilities, munications sector; two in the education Fogo, respectively. She reported meeting offices, etc. sector; one in the transport sector and doctors at the health centres, who told The centre in Tarrafal is located on four in the water supply and sanitation her the project was already having “a top of a hill overlooking the sea. The doc- sector. The Telecommunications, Primary huge impact” on the population served tor-in-charge said the location and sur- School Construction and Sea Cable by the health centres. The centres, as rounding areas provided a pleasant back- Telecommunication Projects have been envisaged, replaced previous facilities drop and great relief to patients seeking successfully completed.

OFID QUARTERLY JULY 2011 43 OUTREACH

HIV: Legal service lifeline for prevention and treatment scale up

by David Patterson

t is recognized that people living with peer counseling based on an innovative serv- I the Human Immunodeficiency Virus ice model adopted following an official study (HIV) and vulnerable populations should be tour to Vietnam. free from discrimination and other abuses of The Center lawyer provides services their legal rights. Often, these rights are guar- through the Kunming office, and also through anteed in national constitutions and law. Dis- a telephone hotline, which serves clients who crimination impedes access to HIV preven- seek legal information without disclosing their tion services and creates obstacles to care, identity. Since 2009, the Center has trained treatment and support. But what if the law is more than 120 lawyers to offer services pro bono, silent, slow, or weak? What can a widow liv- and 25 peer counselors. Over 200 clients have ing with HIV do when she is denied her inher- received legal information or advice from the itance because of her HIV status? What can a Center in more than 300 legal counseling ses- drug user do if he cannot access a methadone sions, including over 200 hotline contacts. maintenance (MMT) program because he has Complaints include property matters, personal With financing from lost his identity papers, and is afraid to ap- injury, labor disputes, privacy, marriage and OFID and other partners, proach the police for help? What can a family issues, and inheritance. Most impor- mother do when she is blackmailed with tantly, case records and outcomes are recorded IDLO is running a pro- threats to disclose her HIV status and risk los- carefully (without names) to support evidence- gram in eight countries ing custody of her children? based legal and policy reform in Yunnan to help protect the legal In 2009, the International Development Province. rights of people living Law Organization (IDLO) and OFID launched In Egypt, the organization Justice and Free- with HIV. a three year program to strengthen legal serv- dom (not related to political organizations) pro- ices for people living with HIV in eight coun- vides legal information and advice to people tries. In 2011, the program expanded to 17 living with HIV in five governorates of Cairo. countries in Asia-Pacific, Central and West In one case, an HIV-positive widow faced Africa, Middle East/North Africa (MENA), and blackmail and the loss of custody of her two Latin America regions. Additional financial children. The Justice and Freedom lawyer pre- support for the program has come from the sented a letter in court from the Ministry of Ford Foundation, AusAID, UNAIDS, the Pan Health stating that HIV status should not affect American Health Organization and UNDP. child custody. As a result, the family remains Legal services are adapted to the local together. needs in each country. In Yunnan Province, In Benin, West Africa, IDLO works with China, IDLO and RTI International (funded by its local alumni association, the Benin Associ- USAID) provide technical and financial sup- ation for Law and Development (BADD), and port to the Yunnan University HIV Legal Aid the Association of Women Lawyers, to provide Center. The Center combines legal advice with legal information and advice to people living

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with HIV. However, before people will ac- has since been translated into French and Chi- As more people with tively seek legal advice, they need to be in- nese. Arabic and Spanish editions will be pub- HIV become aware of formed of their rights. The information ses- lished this year. the legal support avail- sions are often conducted at the hospital In China, IDLO provided financial and while they are waiting for medical services. technical support to Peking University and the able in each country, Peer counseling sessions address the non- China Academy of Social Science to map HIV- the demand for services legal concerns of clients, such as treatment related legal initiatives across the country. The grows. To scale up the adherence. Since June 2010, the project has research report was disseminated to 150 key response, legal services conducted over 90 legal information sessions, stakeholders through the national Red Ribbon must be integrated into mostly at HIV treatment centers. Over 120 Forum, a multi-sectoral committee which the government strategic persons have received legal advice and repre- brings together key figures from government, sentation, including court hearings. civil society, academia and the law to address plans on HIV/AIDS. As more people with HIV become aware of HIV-related discrimination. The research will the legal support available in each country, the improve access to HIV-related legal services demand for services grows. To scale up the re- across China. sponse, legal services must be integrated into OFID support for the IDLO Health Law the government strategic plans on HIV/AIDS. Program has enabled ground-breaking work in As a result of the project success in Benin, from new areas of health, law and development: 2011 legal services will be integrated into the pilot projects to expand HIV-related legal serv- Third National Strategic Plan on HIV/AIDS, en- ices; and research on legal service models and suring that the focus on legal rights will con- the links between legal services and HIV pre- tinue beyond the current project. vention and care. OFID support enabled IDLO, UNAIDS and UNDP to publish a practical guide to About the author: David Patterson manages the Health Law strengthen services, the ‘Toolkit: Scaling Up Program at the International Development Law Organiza- HIV-related Legal Services’ in 2009. The Toolkit tion, based in Rome. SOURCE: IDLO

OFID QUARTERLY JULY 2011 45 OUTREACH

People update anywhere, anytime by Damelys Delgado

ommunication is a major human popular social media networks: Twitter any given day. People spend over 700 bil- C endeavour. It has evolved through- and Facebook. Twitter is based on mes- lion minutes per month on this platform. out history in many different ways. sages (tweets) of 140 characters of maxi- (More numbers: There are over 900 mil- Speech, symbols and writing imply sev- mum length, typed as quickly as one can, lion objects with which people can inter- eral processes with the same ultimate in order to find people and organizations, act) The average user is connected to 80 goal: the exchange of messages. The star send brief messages and direct replies – a community pages, groups and events and of communication in the 21st century is sort of SMS on the Internet; and Facebook more than 30 billion pieces of content supported by the Internet and mobile is designed with features for finding peo- (web links, news stories, blog posts, notes, technologies: the social media. For what ple, making connections, sending and photo albums, etc.) purpose? Communicating! The needs receiving email, and for instant messag- As an additional advantage of this remain the same! ing and image/video sharing. ubiquitous availability, social media is Basically, social media simply refers Some of the figures are astronomi- free. Indeed, all it costs is time. to the millions of conversations people cal: Twitter started in 2006 and today it As part of OFID, please share with us are having across the world daily. In what services more than 100 million accounts. your experiences and send your photos could be called collective intelligence, the The number of Twitter users increases by to show the world OFID’s noble enter- web has turned into a global brain. And as 300,000 daily; it gets more than three bil- prises. a brain, there are thoughts, sentiments lion requests each day, generated by over OFID and the Social Media and facts to be shared with others. 180 million individual visitors, and its There are about 540,000 words in users send 55 million tweets per day. Twit- OFID’s projects and programs directly the English language, about five times as ter believes that it will have one billion benefit people – improving people’s lives many as during Shakespeare’s time. The users by 2012. If this comes true, Twitter through the building and rehabilitation verb to tweet is part, not just of English, will become the pulse of the planet. of vital infrastructure such as schools, but of every language around the world! Facebook started in 2004, and today hospitals and transport links, boosting As part of the “global brain,” OFID has more than 500 million active users, drinking water supplies and improving has opened two accounts on the most 50 percent of whom log on to Facebook in safe sanitation systems. OFID operations target irrigation systems and seek to PHOTOS: JOHANNES HERBERSTEIN/OFID increase food security and provide training to promote self-sufficiency. Social Media will enable OFID to connect more directly with people across the globe – whether they are communities in partner countries and Mem- ber Countries, staff or young people. OFID will be able to share people-cen- tered stories that explain how some of its development projects have improved quality of life. The reports will provide information about OFID’s regular activities and foster openness by encourag- ing direct communication between the On Facebook, find OFID On Twitter, look for OFID_OPEC_FUND and click on Like! and be a follower. global public.

46 OFID QUARTERLY JULY 2011 DEVELOPMENT COOPERATION HOTO: PHOTO: UN PHOTO/EVAN SCHNEIDER P

UN-LDC IV Istanbul Program of Action targets LDC graduation

Over 7,000 participants, including nearly 50 heads of state and government, 94 ministers and high-level representatives of multilateral, regional and bilateral organizations, the private sector and civil society organizations gathered in Istanbul, Turkey on May 9 – 13, 2011 for the Fourth United Nations (UN) Conference on the Least Developed Countries (LDC IV).

by Fatimah Zwanikken

he LDCs – today numbering 48 – acute susceptibility to external economic gram) was widely considered to be a com- T continue to be the poorest and shocks, climate change, disasters, and prehensive and results-oriented poverty most vulnerable segment of the interna- communicable diseases. The Conference reduction strategy for the decade. The tional community since the UN first iden- was the fourth in a series of ten-yearly UN main objectives of the LDC IV Confer- tified 25 countries as a category in need of meetings organized since 1981 to respond ence were to assess progress towards special attention and assistance in 1971. to the special needs of the LDCs. implementation of the Brussels Program, These countries are characterized not and to agree upon a new set of policies, only by widespread poverty, but also the Brussels Program strategies and measures to be imple- structural weakness of their economic, The Program of Action for the LDCs for the mented by national governments with institutional and human resources, severe Decade 2001-2010 adopted by the Third support of the international community infrastructure deficits, limited productive UN Conference on the LDCs (UN-LDC to spur sustainable growth and develop- capacities, low per capita income, and III), Brussels, May 2001 (the Brussels Pro- ment in LDCs over the coming decade.

OFID QUARTERLY JULY 2011 47 DEVELOPMENT COOPERATION

Istanbul Program Economic reforms in many LDCs over the on productive capacity is favored by LDCs At the Opening Session on May 9, 2011, past decade have led to more favorable as a means to modernize and diversify UN Secretary General, Mr. Ban Ki-moon, business environments, and the boom in their economies, create jobs and engage called upon participants to deliver an primary commodity prices in interna- in sustainable means to eradicate poverty Istanbul Program of Action that will help tional markets facilitated high growth and eventually graduate from the LDC the maximum number of LDCs to gradu- rates. However, performance has been category. ate from this category in the shortest uneven, and the expected dividends in As the Conference came to a close, time. “Instead of seeing LDCs as poor and terms of employment creation, improved participants adopted the Istanbul Political weak, let us recognize these 48 countries living standards, and poverty reduction Declaration and Program of Action for the as vast reservoirs of untapped potential”, did not materialize. Meanwhile, LDCs LDCs for the Decade 2011-2020, follow- Mr. Ban Ki-moon said. “Investing in LDCs suffered new setbacks, including the food ing several months of pre-Conference can provide the stimulus that will help to and financial crisis, as well as the rising negotiations. propel and sustain global economic re- threats posed by climate change and bio- covery and stability. This is not charity, it diversity loss. Declaration is smart investment,“ he added. During the five-day gathering, repre- The Declaration serves as preamble to the The Conference noted that progress sentatives from both national govern- Program of Action. Ministers and Heads toward implementation of the Brussels ments and parliaments, civil society and of Delegations from the 48 LDCs recog- Program has been mixed. The LDCs the private sector focused on ways to har- nized that sustainable economic growth remain marginalized from the main- ness the productive potential of these and development, poverty alleviation stream of the global economy, and are the poorest countries to help them overcome and full integration of the LDCs into the most off track towards achieving the UN the structural challenges that hinder their global economy are contingent, inter alia, Millennium Development Goals (MDGs). socio-economic advancement. The stress upon the realization of commitments

Least Developed Countries: facts and figures

The group of LDCs currently comprises 48 countries The population of LDCs is growing nearly twice as fast with a total population of 851 million. These include (at 2.2 percent annually) as that of the rest of the developing 33 sub-Saharan Africa, 14 in the Asia-Pacific region, countries, which are growing at 1.2 percent a year, and is forecast and one country in Latin America and the Caribbean to double before 2050. About 60 percent of the population is (Haiti). Sixteen LDCs are landlocked and 10 are under age 25. Although the LDCs contain only 12 percent of the Small Island Developing States (SIDS). world population, they will account for almost 40 percent of the 1. Africa: 33 countries global population growth during the next forty years. Angola, Benin, Burkina Faso, Burundi, Central African Republic, More than half the population in the LDCs lives in extreme Chad, Comoros, Democratic Republic of Congo, Djibouti, poverty, i.e. on less than US$1.25 a day. Women in LDCs have Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea, a one in 16 chance of dying in childbirth, compared to one in Guinea-Bissau, Lesotho, Liberia, Madagascar, Malawi, Mali, 3,500 in North America. Although agriculture employs as much Mauretania, Mozambique, Niger, Rwanda, Sao Tome and Principe, as 70 percent of workers in LDCs, more than 300 million Africans Senegal, Sierra Leone, Somalia, Sudan, Togo, Uganda, Tanzania, are food insecure, and more than 40 percent of children in LDCs and Zambia. have had their growth and development stunted by malnutrition. 2. Asia and the Pacific: 14 countries With 12 percent of the world population, LDCs accounted Afghanistan, Bangladesh, Bhutan, Cambodia, Kiribati, Lao Peoples for just 1.08 percent of international merchandise trade in 2008, Democratic Republic, Myanmar, Nepal, Samoa, Salomon Islands, and less than 2 percent of foreign direct investment (FDI) flows. Timor-Leste, Tuvalu, Vanuatu, and Yemen. FDI to LDCs remains concentrated on extractive industries with 3. Latin America and the Caribbean: one country; Haiti the remaining sectors receiving a limited share of global FDI flows.

48 OFID QUARTERLY JULY 2011 DEVELOPMENT COOPERATION

Objectives of the Istanbul Program of Action

LDC national policies and international support measures Priority Areas for Action during the decade 2011-2020 shall focus on the following The priority areas identified in the Istanbul Program specific objectives with the aim of enabling half the num- of Action are: ber of LDCs to meet the criteria for graduation by 2020 within a strengthened partnership for development: 1. Productive capacity

(a) Achieve sustained, equitable and inclusive economic • Infrastructure growth in least developed countries, to at least at the • Energy level of 7 percent per annum, by strengthening their pro- • Science, technology and innovation ductive capacity in all sectors through structural transfor- • Private sector development mation and overcoming their marginalization through 2. Agriculture, food security and rural development their effective integration into the global economy, including through regional integration; 3. Trade

(b) Build human capacities by fostering sustained, equi- 4. Commodities table and inclusive human and social development, gender 5. Human and social development equality and the empowerment of women; • Education and training (c) Reduce the vulnerability of least developed countries • Population and primary health to economic, natural and environmental shocks and disas- • Youth development ters, as well as climate change, and enhance their ability • Shelter to meet these and other challenges through strengthening • Water and sanitation their resilience; • Gender equality and empowerment of women (d) Ensure enhanced financial resources and their effec- • Social protection tive use for least developed countries’ development, 6. Multiple crises and other emerging challenges including through domestic resource mobilization, official • Economic shocks development assistance (ODA), external debt relief, for- • Climate change and environmental sustainability eign direct investment and remittances; • Disaster risk reduction (e) Enhance good governance at all levels, by strengthen- 7. Mobilizing financial resources for development ing democratic processes, institutions and the rule of law; and capacity-building increasing efficiency, coherence, transparency and participation; protecting and promoting human rights; and • Domestic resource mobilization reducing corruption, and strengthen least developed • Official development assistance country Governments’ capacity to play an effective role in • External debt their economic and social development. • Foreign direct investment • Remittances

8. Good governance at all levels

OFID QUARTERLY JULY 2011 49 DEVELOPMENT COOPERATION

PHOTO: UN PHOTO

José Manuel Barroso (right), President of the European Commission, addresses the 1st Plenary Meeting of the Conference. Seated left is Muhammad Shaaban, Conference Secretary and UN Under-Secretary-General for General Assembly Affairs and Conference Management.

by development partners, including boosting agriculture, food security and rural Consensus for Shared Growth and its Multi- through fulfillment of Official Develop- development, (iii) fostering trade expan- Year Action Plan are expected to con- ment Assistance (ODA) targets, all out- sion; (iv) reducing commodity dependence tribute to the attainment of inclusive, sus- standing debt cancellation, increased by broadening the economic base; (v) tainable and resilient growth in LDCs investment flows and unhindered mar- accelerating human and social develop- within a renewed and strengthened part- ket access and transfer of technology to ment; (vi) addressing multiple crisis and nership for development. LDCs. They strongly urged development other emerging challenges, (vii) mobilizing partners to fulfill their commitments in financial resources for development and Closing the economic, social and related fields so capacity building; and (viii) promoting In closing, Mr. Upendra Yadav, Deputy as to allow LDCs to achieve socio-eco- good governance at all levels. Prime Minister and Foreign Minister of nomic development and beneficially While LDCs carry primary responsi- Nepal and Chair of the Global Coordina- integrate into the global economy. bility, ownership, and leadership for their tion Bureau of the LDCs concluded that The 49-page Program of Action for own development, the private sector is the Program of Action “provides a clear the Decade 2011-2020 commits govern- called upon to play a more active role in road map for the future of almost one bil- ments to help half the number of LDCs the fight against poverty. Developed lion people living in LDCs.” Noting the meet the criteria for graduation by 2020. nations are amongst others urged to fulfill intensity of negotiations during the Con- The overarching goal is to overcome the all aid commitments to LDCs in line with ference and the compromises made, he structural challenges faced by LDCs in LDC national priorities, systems, and pro- stressed that following closing, all focus order to eradicate poverty, achieve inter- cedures, and to exercise individual best should be on timely fulfillment of the nationally agreed development goals and efforts to increase ODA to LDCs to at least commitments made, with a view to enable graduation from the LDC cate- 0.20 percent of their Gross National Prod- ensuring effective implementation of the gory. To strengthen the smooth transi- uct (GNP). Developing nations, for their Istanbul Program of Action. tion process towards graduation, the Pro- part, are encouraged to facilitate LDC Only three countries graduated from gram of Action specifies joint actions to access to technology through South- their LDC status since the UN classified be taken by LDCs and their development South cooperation, which is complemen- the group as the poorest and weakest seg- partners in eight priority areas. These tary to North-South cooperation and has ment of the international community in include: (i) strengthening productive an important role in LDC development, 1971. These are Botswana (1994), Cape capacities in both the public and private including through triangular approaches. Verde (2007) and the Maldives (January sectors, including infrastructure, energy Development initiatives such as the 2011). Samoa is scheduled to graduate on access, and science and technology; (ii) Group of 20 (G-20) Seoul Development January 1, 2014.

50 OFID QUARTERLY JULY 2011 DEVELOPMENT COOPERATION

OFID and AsDB: Enhancement of partnership

The need for Development Finance Institutions (DFIs) to cooperate closely to enhance aid effectiveness, better combat poverty and realize development objectives – such as the Millennium Development Goals (MDGs) – was again brought into sharp focus by the recent economic and financial crisis. Cooperation and harmonization with other like-minded institutions has always been at the heart of OFID’s working model. by Silvia Mateyka

n 2010, OFID signed two Memo- I randa of Understanding; one with the World Bank Group and the other with the International Fund for Agricultural Development (IFAD) to strengthen its strategic partnership network of leading banks and development finance institutions. In this spirit, OFID concluded, in May, 2011, a Memorandum of Under- standing (MoU) with the Asian Develop- ment Bank (AsDB) during the 44th Annual Meeting of the Bank’s Board of Governors held from May 3-6, 2011, in Hanoi, Vietnam. The MoU was signed on May 2 by OFID Director-General Suleiman J. Al- Herbish, and Mr. Haruhiko Kuroda, AsDB AsDB President Mr. Haruhiko Kuroda (right), and OFID Director-General Mr. Suleiman President. OFID and AsDB agreed to J. Al-Herbish signing the MoU. intensify their longstanding partnership and work more closely to identify proj- activities and hold consultations to dis- eral, and to the accomplishment of the ects with a view to jointly financing cuss issues of common interest, includ- Millennium Development Goals (MDGs) them. The agreement identified targets ing helping to provide the Asia region’s in particular. “We know that AsDB is very to strengthen the collaboration between poor access to energy to support socio- conscious of the need for the poor to have the two institutions in priority sectors economic development and improve access to reliable and affordable energy and in regional initiatives that they both livelihoods. services … and we [OFID] would be very share. These include transport, energy At the signing ceremony, Mr. happy to take the views of AsDB on the (in particular energy access), food secu- Suleiman J. Al-Herbish, Director-General of matter and draw from its experiences in this rity and urban services. The two institu- OFID, spoke of the importance of food area to enhance OFID’s work in Asia,” he tions further agreed to exchange infor- security and the lack of access to energy as continued. The Director-General pointed mation to better support each others’ a major constraint to development in gen- at the essential role that agriculture

OFID QUARTERLY JULY 2011 51 DEVELOPMENT COOPERATION

plays as a key element to help countries address food security, pointing out that development had to be promoted in areas where it had the greatest chance to alleviate poverty and end exclusion. In this context, Mr. Al-Herbish suggested that the operational teams of OFID and AsDB shall “for- mulate a program of cooperation in these fields, as priority objectives of the MoU.” The Director-General concluded: “OFID is determined to continue on a path of harmonisation, coordination and joint actions with AsDB for the good of our partner countries in Asia.” Mr. Haruhiko Kuroda, President of AsDB, said that the agreement builds on a very positive experience of cooperation between OFID and AsDB and com- mended OFID for the work it has accom- plished over the past three decades. “In working together, AsDB and OFID will OFID Director-General Mr. Al-Herbish with Dr. Johan Bastin, CEO of CapAsia Ltd after the improve coordination in development signing ceremony. activities in our common partner-countries and in those priority sectors that we AsDB and the eradication of energy established. To date, the two institutions both share,” he added. Mr. Kuroda fur- poverty is a clear objective of the MoU.” have jointly implemented more than 95 ther agreed with Mr. Al-Herbish, noting The MoU formalizes a long-standing projects amounting to over US$765 mil- that “food security and access to energy relationship between the two institutions lion in 18 countries: Afghanistan, Azer- are also one of the main objectives of dating back to 1976, when OFID was baijan, Bangladesh, Cambodia, India, the Kyrgyz Republic, Lao People’s Democratic Republic, the Maldives, Nepal, Pakistan, Asia and the Pacific Papua New Guinea, Philippines, Samoa, Solomon Islands, Sri Lanka, Tajikistan, Thailand and Uzbekistan. On the sidelines of the 44th AsDB According to AsDB’s Annual Report gross domestic product increased by Annual Meeting, OFID also signed a 2010, the Asia and Pacific region is nine percent in 2010, more than dou- participation agreement in the Islamic ble the global growth rate during the home to more than 900 million poor, Infrastructure Fund (IIF). The IIF which comprising more than two-thirds of same period and well above the 5.9 is managed by CapAsia Ltd., is a the world’s population in extreme percent rate recorded in the region a Shari’ah-compliant private equity fund poverty. Some 470 million people year earlier. While the region moves established to invest and facilitate have no clean water, which is more beyond economic recovery to sustain- investments in the infrastructure sectors than half of the world’s population able growth, the region must ensure of 12 Asian countries. Founded by the without clean water. The region also that growth is more inclusive and that Islamic Development Bank (IDB) and has 70 percent of the developing there is greater investment in educa- AsDB, the IIF seeks to promote the world’s people who have no basic san- tion, health and infrastructure to con- involvement of independent operators itation, two-thirds of the world’s nect the poor markets and enable and public-private partnerships in the undernourished children, and more them to “participate in the growth economic growth of the region. OFID’s than 60 percent of people infected process.” equity investment of US$25 million in with tuberculosis. However, AsDB the IIF will help to encourage productiv- estimates also show that the region’s ity and generate employment, thereby leading to greater prosperity for the countries and their populations.

52 OFID QUARTERLY JULY 2011 PHOTO: JIM BARBER/SHUTTERSTOCK Commodities and development: a close relationship by Geoffrey Skipper

he year 2011 has seen renewed higher investment in all sectors of the As shown in Table 1, the volatility of com- T volatility in commodity prices. In commodity value chain should be a prior- modity prices has doubled in the past five May, maize prices reached US$10/bushel ity with particular attention paid to the years. Metals and food commodities have in the United States; more than double lev- needs of small producers. shown the biggest increases. els of twelve months ago. Copper prices broke through all-time high levels to Volatility* of Commodity Prices Table 1 exceed US$10,000 per tonne in February and fell back to less than US$9,000 in May. Concern has been expressed at the 1992-2005 2006-2010 highest level of governments. Indeed the G20 Summit Meeting in Seoul agreed to All Commodities 11.5 % 23.3 % undertake “further work on regulation and supervision of commodity deriva- Food & Beverages 7.8 % 13.8 % tives markets.” The current French Presi- dency of the G20 has established “com- Agricultural Materials 9.5 % 13.2 % bating commodity price volatility” as a key priority. Metals 11.7 % 24.4 % Following are some of the complex factors which drive price volatility in the Oil 25.7 % 34.4 % overall context of commodities and * Standard statistical measure of annualized volatility Source: IMF development. The conclusion is that

OFID QUARTERLY JULY 2011 53 Volatility Instability in the OECD economies also Many factors explain this increase in impacted prices. After 2008, hugely volatility. One of the most important is expansionary fiscal and monetary poli- the reduction in the real price of com- cies in the US and EU increased global liq- modities between 1980 and 2005. In this uidity. Easy availability of credit (and the period, the reduction in the real purchas- weaker US dollar) encouraged stock building power of metal and oil producers was ing in the second half of 2009. Regarding about 20 percent whilst many agricul- food commodities, widespread bad tural products saw real price falls of 50 weather in 2010 and expectations of poor percent or more. harvests in the US and Europe have Considering the whole of the period pushed food prices higher in 2011. Policy from 1980 to 2005, Table 2 shows the measures to protect domestic consumers average annual rates of price change for (such as bans on exports) and mandates some important commodities. to support first generation biofuels have The effect of falling prices in real also reduced the supply of some food- terms was to discourage investment in stuffs to the markets. new equipment and techniques, particu- The rise in commodity prices since larly in agriculture. The trend to lower 2004 attracted pension funds and other investment was aggravated by a reduction financial investors. These institutions had in Overseas Development Assistance ample liquidity and sought to diversify (ODA). From 1990 to 2005, support for their portfolios away from uncertain agriculture from OECD ODA fell by 24 bond and equity markets. Commodities percent. became a mainstream investment asset, Lack of investment left many com- subject to fluctuations in other global modity producers short of capacity markets. Commodity-based derivatives when they needed it most. In 2004- provided efficient market exposure to 2007, total output growth in developing non-commercial investors, especially Asia averaged over 10 percent per annum hedge funds. Some hedge fund managers in real terms. The supply of vital raw employ trading strategies which tend to materials could not respond quickly amplify underlying price movements. enough. Prices rose in response to high The influence of these factors varied demand, shrinking margins of spare over the years and, considering their com- capacity and rising costs of exploration plex interactions, there is evidently no and production. straightforward solution to reduce price volatility.

Annualized Rates of Change in Commodity Prices Table 2

1980-2005 Nominal (US$) In Real Terms*

Metals +1.2 % -1.1 % Oil +1.4 % -0.8 % Cotton -2.1 % -4.3 % Maize -1.0 % -3.2 % Wheat -0.5 % -2.7 % Soybeans -0.7 % -2.9 %

* Relative to US Producer Price Index Source: IMF PHOTO: ELENA ELISSEEVA/SHUTTERSTOCK

54 OFID QUARTERLY JULY 2011 DEVELOPMENT COOPERATION

Regulation the new money raised is intended for tic and international markets. For OFID, Tougher regulation may appeal to some direct investment in productive assets a high priority is support for financial policymakers but the size and global in order to move up the supply chain. and physical infrastructure. Commod- scope of trading will make the effective The greater involvement of financial ity producers need access to finance – definition and regulation of speculation investors signals their appreciation of both to invest in their business and to extremely difficult. Consumers want liq- the huge profits to be made from own- finance trade. The OFID Trade Finance ing commodity assets (including agri- uid markets and many active traders to Facility has helped participants in agricultural land) in the new market envi- keep prices competitive. Since high vol- cultural supply chains expand trade in ronment. This concentration of supply ume traders will naturally gravitate to India and many African countries. OFID resources may have unpredictable con- the least regulated trading platforms, risk-sharing agreements with major sequences for price formation and will there is a conflict between regulation banks make it easier for owners of small certainly pose a threat to marginal pro- and market efficiency. farms and businesses to access credit in ducers. In markets with tight margins order to obtain supplies and capital between supply and demand, where Challenges equipment. additional capacity requires time and These challenges are not new but will OFID windows heavy investment of people and capital, become more severe. Producers that are unexpected fluctuations in demand will OFID Public and Private Sector loans not part of the favoured networks will inevitably lead to price volatility. enable improvements in telecommuni- have to compete for sales in the residual Effective measures to mitigate com- cations, energy systems, roads and markets. Regional marketing and modity price volatility should concen- ports. Commodity producers can profit finance arrangements are one solution trate on a stable framework for eco- from up-to-date market information to achieve the volume needed to negoti- and they need efficient and reliable nomic and monetary growth and the ate long-term contracts with large cus- energy supplies. Good inland and port encouragement of a diversified supply tomers and reduce costs of processing, transport systems are necessary to capability, which also rewards the con- transport and marketing. Consumer reduce costs and get their products to tribution of small producers from products can associate with established the buyers as quickly as possible. poorer countries. labelling schemes (such as the successful Higher investment throughout the Looking to the medium term, the “Fairtrade” mark) which will reduce the supply chain is the natural response to a positive outlook for commodities should sensitivity of demand to price changes. recovery in commodity demand and support investment in all parts of the Developing these strategies is grad- prices. The current episode will be no supply chain. Despite the uncertain per- ual and painstaking work. Indeed OFID exception – the difference is the scale of formance of OECD economies, the has been active in this area since 1977 the structural changes in both demand progress of middle-income countries will when the institution helped establish underpin demand as an increasing abil- IFAD – a specialist agency of the United and supply. Price volatility is funda- ity to afford better food and consumer Nations which works to improve rural mentally the result of supply-demand goods spreads throughout the develop- incomes and agricultural productivity. mismatch and it will surely fade as new ing world. OFID has contributed to numerous investments rebuild capacity. But good news for production will replenishments for IFAD. In 1989, OFID All developing countries deserve not help all producers. Market forces will also helped establish the Common Fund the chance to contribute to these new not distribute the gains fairly – indeed for Commodities. This Fund has been structures of supply. There is the dan- quite the reverse might happen as working to improve techniques of agri- ger that the new wave of private capital increasingly concentrated and powerful cultural production and marketing – will capture the markets and sweep buyers prefer to deal directly with large mainly for the benefit of smaller pro- aside the many smaller producers. OFID scale suppliers and trading companies ducers in the less developed countries. will continue to assist developing coun- on bilateral terms Research and small-scale pilot projects tries to prepare for these competitive Multinationals, investment banks have helped guide producers towards challenges. This task requires a diversi- and traders have certainly recognised more effective solutions. fied portfolio of capabilities and all the opportunities. In May, the com- Development finance institutions OFID windows (Public Sector, Private modities company Glencore was newly can make a vital contribution by work- Sector, Trade Finance and Grants) will listed on the London Stock Exchange ing with governments to help farmers continue to make a substantial contri- with a value of US$58 billion. Much of and commodity producers reach domes- bution.

About the author: Geoffrey Skipper is a Senior Economist in the Corporate Planning and Economic Services Unit, OFID.

OFID QUARTERLY JULY 2011 55 SOURCE: KENTCH/SHUTTERSTOCK

Corporate Social Responsibility Responsibilities of businesses to society and how they can be met by Ramina Samii

n the past decades, there has been It is widely accepted that governments competencies and the resources to solve I growing pressure on business to can no longer be solely responsible for societal problems; two requirements gov- meet its social obligations and address the entire needs of society, even in sec- ernments sometimes lack. society’s needs. Indeed, it is increasingly tors traditionally in their realm of no longer acceptable for business to limit authority, such as health and education. Nuts & bolts of CSR its responsibility to its shareholders. Busi- Although governments are doing what For decades, practitioners and scholars ness is expected to show responsibility they can in view of their being the first in have been churning out articles trying to toward other stakeholders, including the line of local, national and global capture the essence of corporate social future generations, not only at the local responsibility, addressing the require- responsibility (CSR) and its evolution or national level but also globally. More- ments of society cannot be left to gov- over time as well as across geographical over, although no business is expected to ernments alone. Other bodies should areas, enterprises and issues. As part of solve society’s problems or pick up the contribute; accordingly, society expects their advocacy role, multilateral institu- bill for doing so, its responsibility is no business to step in and step up its efforts. tions with global and regional outreach longer limited to minimizing its impact Should business fail to do so, as Peter such as the World Bank, the OECD and on society. The growing expectation is Drucker, the father of management the- the European Commission have tried to that it would contribute to the creation of ory suggested, “no other actor can or first define the concept and then ensure a better society and the resolution of will.” This conviction is supported by the its pursuance by corporations around the problems that are not of its own making. fact that companies often have both the world. Business schools, preparing the

56 OFID QUARTERLY JULY 2011 DEVELOPMENT COOPERATION

next generation of managers, have been about the social purpose of business. He tries. For example, the food sector is pressurized by their students, interested said: An enterprise gains its legitimacy, accused of marketing unhealthy products in providing solutions to society’s needs, thanks to how its management deals with and contributing to the problem of obe- to offer courses on the topic. Citizens its social responsibilities. In contrast to sity and the oil and mining sector of dam- across nations are increasingly sensitized Milton, he did not see profit making as aging the environment. The pharmaceu- to the issue by the NGO community and the sole responsibility of the enterprise, tical industry has come under pressure media particularly in times of crises and although he considered it primary. because of perceived excessive pricing. corporate scandals. Drucker proposed and differentiated Moreover, not all companies operat- As societies’ demand on corpora- between two other types of responsibili- ing in a specific industry are held to the tions increase and citizens and corporate ties: those to do with the impact of busi- same level of accountability toward soci- leaders take social issues on board, CSR ness on society and what business, thanks ety. More is expected of global companies moves up on the agenda of enterprises, to its resources and competencies, can do and rather less from smaller, national especially those with a global outreach. to alleviate societal problems. This goes firms. Oftentimes, the world’s problems However, is there a common understand- hand in hand with his view that ‘if busi- are expected to be solved by global corpo- ing of what the responsibilities of corpo- ness does not take responsibility of the rations, while the behavior of small com- rations to society are? Are all businesses common good, no one else can or will’. panies goes mostly unobserved. regarded equally in terms of their respon- By conducting its day-to-day activi- Similarly, some issues have received sibilities? If so, how are corporations ties and while operating within the legal more attention than others. Within the meeting these responsibilities? framework of a country, business may pharmaceutical industry, society’s expec- have unintended and undesired impact tation from a company holding a life-sav- Corporate responsibilities on society. According to Drucker, an ing drug and an off-the-shelf business Friedman versus Drucker enterprise has the responsibility to iden- concern is totally different when it comes Milton Friedman, the Nobel-awarded tify these negative impacts in order to to accessibility and pricing. American economist, argued in the eliminate or mitigate them. This would 1960s that “the business of business is also be with a view to protecting the Genuine response? business.” As such, in his view, business’ brand value; hence in the context of CSR literature is progressively more primary role is to satisfy its stakeholders enlightened self-interest. Drucker went a focused on how business can help provide – shareholders, employees, customers step further by suggesting that there was solutions to society’s pains while pursu- and government – by generating profit. nothing wrong with business creating yet ing its primary objective, profit. While the In other words, the corporation is another profit opportunity for itself, boundaries between the profit and non responsible to provide a return in form while eliminating an unintended adverse profit sectors are becoming more blurred of dividends to its shareholders, a fair impact on society. Similarly, business can with new types of organizations such as wage and decent working environment identify new opportunities while the social enterprise gaining ground (see to its employees, a quality product at a embracing and investing in a social cause story, page 10), there is more scepticism on fair price to its customers, and taxes to or need. the real intentions of the enterprise. In government. The corporation is also to Drucker did not suggest that busi- this sense, while some accept the concept operate within a country’s legal frame- ness’ obligations towards society were of enlightened self-interest and therefore work. Consequently, it is up to the dif- open-ended. He identified three sets of see no contradiction in the possibility of ferent stakeholders to decide whether boundaries: solution to the social prob- an enterprise making more profit while they want to support a social need and if lem should not negatively affect the sus- addressing a social need, others question so which cause by dispensing of their tainability of the business nor should it the rationale behind a corporation’s CSR income. exceed its competence, or go beyond its initiative. They may view it as a targeted Friedman’s thinking – a wall between legitimate authority. marketing effort rather than a genuine the role and responsibility of business and desire to address a social need. An associ- that of its stakeholders to society – marks Same for All? ated concern is related to the measure- the Anglo-Saxon tradition of establishing Society’s expectation from business has ment of (and hence comparison between) family foundations to address societal different nuances at the industry, firm different CSR initiatives. As long as there is needs. Examples include the Ford, Kel- and issue levels. Not all industries have no consensus on how CSR initiatives can logg, Rockefeller and the Melinda and Bill to withstand the same amount of pres- be evaluated and measured, societies can- Gates Foundations. sure from society. Those currently under not objectively reward those companies On the other side of the spectrum, observation include the food, tobacco, with higher or more ‘genuine’ levels of Peter Drucker as early as 1939, talked oil, mining and pharmaceutical indus- engagement.

About the author: Ramina Samii is a Private Sector Operations Officer at OFID.

OFID QUARTERLY JULY 2011 57 MEMBER STATES FOCUS

Nigerian President Jonathan assumes office Presidential elections held in April

he people of Nigeria, April 16, ated commitment to the resolution of Nigeria holds membership of most inter- T elected Dr. Goodluck Ebele Nigeria’s Niger Delta issue and to mak- national organizations, especially the Jonathan president. He was sworn in, ing Nigeria’s leading position in Africa a development finance institutions May 29, in a colorful ceremony at Eagle priority. among them charged with working with Square, Abuja, the nation’s capital. Dr. Dr. Jonathan paid tribute to Nige- poorer countries toward social and eco- Jonathan thanked Nigerians for the trust ria’s founding fathers, saying it was their nomic advancement. Nigeria is an OPEC and confidence reposed in him by their enduring sacrifice and abiding faith in Member State. mandate and pledged to begin and lead Nigeria’s unity and greatness that laid a journey of hope and transformation Nigeria’s foundation. “We take utmost Foreign representation for Nigeria. pride in their contributions and the piv- Some 26 Heads of State and Government He told Nigerians: Our unity today otal task of this generation is to lead our from across the world attended the is firm, our purpose is strong and our fatherland to the summit of greatness,’’ swearing-in ceremony. Nine foreign determination is unshakable. Together, the President said. He also expressed vice-presidents and six former Nigerian he said, Nigerians will unite the nation appreciation for the contributions of his leaders were also in attendance. Nigerian and improve upon living standards. “We parents to his success. “I hold a debt of news media reported that “Jonathan see a new beginning, a new direction, a gratitude to my mother and late father; I practically brought the world to new spirit. And I am confident that we cannot thank them enough,’’ the Presi- Nigeria” on his inauguration. A White have every reason to look to the future dent declared House presidential delegation specially with hope.” appointed by US President Barak Obama The swearing-in ceremony was Foreign policy was also present. Mr. Obama was one described as distinguished with military On foreign policy, the Dr. Jonathan said of the first world leaders to send mes- parades, callisthenics by school children, “we live in an age” where no country sages of congratulations to President aerial displays by the Nigerian Air Force can survive on its own; countries Jonathan, as did OFID Director-General, and a traditional 21-gun salute. depend on one another for economic Mr. Suleiman J. Al-Herbish. President Jonathan said the urgent well-being and Nigeria is no different. task of his administration would be to “Returns on investment in Nigeria Biography provide a suitable environment for pro- remain among the highest in the Goodluck Ebele Jonathan, Grand Com- ductive activities to flourish. He would world,” the President asserted, and the mander of the Order of the Niger pay special attention to the agricultural nation will continue to welcome sus- (GCON) and Commander-in-Chief of sector, to enable food security, and work tainable investment in the economy. the Federal Republic of Nigeria, was born at massive job creation for the people. Accordingly, his administration will November 20, 1957, to a close-knit Economic strategy will encompass promote programs and policies that will Nigerian family. He is described as hav- appropriate policy support to the real benefit both local and foreign busi- ing had “humble yet adventurous begin- sector, so that small and medium enter- nesses; the emphasis will be on mutual nings,” fascinated with nature and the prises may thrive. The president reiter- benefits and win-win relationships. shores of intertwining rivers and water-

58 OFID QUARTERLY JULY 2011 PHOTO: SHUTTERSTOCK/MESHAL ALAWADHI PHOTO: AFP PHOTOS/PIUS UTOMI EKPEI Nigerian President Goodluck Jonathan alongside his wife ways in his native Niger Delta. Biogra- substantive President on the passing of Patience. Following his election, phers speak of his honesty, simplicity, President Yar’Adua. charisma and quiet strength and deter- Dr. Jonathan has received numer- Dr. Jonathan said that the urgent mination. ous local and international awards. He task of his administration would Educated at the University of Port was voted Best performing Deputy Gover- be to provide a suitable environ- Harcourt, Nigeria, he was, indeed, one nor in 2002 and given the Democracy and ment for productive activities. of the pioneer students of that new uni- Good Governance Award by the Nigerian versity nestling on the shores of the Union of Journalists in 2004. The Africa Choba River. He holds a Master’s degree International News Magazine League and a Ph.D in, respectively, Hydro- and conferred on him the Niger Delta Devel- Fisheries Biology and Zoology. He served opment Award; while the Nigerian Bar as a Deputy Governor and subsequently Association accorded him the Distin- substantive Governor of Nigeria’s guished Personality Award in 2006. Also Bayelsa State. in 2006, he received the Africa Leader- After a keenly contested election in ship Award, 2006, from the All-African May, 2007, Dr. Jonathan won the Vice- Students Union in South Africa. Dr. Presidency of Nigeria on a ticket he shared Jonathan was also recognized by the with the late President Umaru Musa International Federation for World Yar’Adua. In February, 2010, Dr. Jonathan Peace (IIFWP) in July, 2006, with the assumed office as Nigeria’s Acting Presi- Ambassador for Peace Merit Award and the dent, following President Yar’Adua’s pro- Leadership and Good Governance Merit. Dr. tracted absence for medical treatment. In Jonathan is married to Dame Patience May, 2010, Dr. Jonathan was sworn-in as Goodluck Jonathan.

OFID QUARTERLY JULY 2011 59 Art Exhibition: Indonesia exhibits Transformations of Nature

anking government officials, distin- Wianta’s “unique voice of colour” as part of the R guished ambassadors and members of continuing series on OFID Member Country the diplomatic corps, along with other special and Partner Country in-house exhibitions. guests and staff of OFID, assembled May 26, Also addressing the gathering, HE Mr. 2011, for the opening ceremony of the Indone- I Gusti Agung Wesaka Puja, Ambassador of the sian art exhibition Transformations of Nature, Republic of Indonesia to Austria spoke of showcasing the artwork of the multitalented Wianta’s unique creations in which he shows Balinese artist Mr. Made Wianta. The exhibi- how human life and nature can walk hand in tion, which ran through June 10, was jointly hand creating durable harmony. The Ambas- organized by OFID and the Embassy of the sador said the exhibition would serve to inspire Republic of Indonesia in Austria. It came within all visitors with this spirit. the larger framework of celebrations marking While visiting the exhibition, many were OFID’s 35th Anniversary and its in-house exhibi- stunned by the creativity of the artist and the tion series aimed at bringing the rich cultural way he transmits the elements of nature onto heritage of OFID’s Member Countries to the his paintings. Mr. Wianta himself said “I hope heart of Europe, the host city Vienna. that my paintings can reflect the beauty of my The exhibition was opened with a cultural country and the importance of nature and its evening including traditional cuisine, music preservation for future generations.” and a dance performance from Indonesia. In The exhibition not only featured Indone- his opening address, Mr. Suleiman J. Al-Her- sian culture, it also presented the spirit of cre- bish, Director-General of OFID, said OFID was ativity and expressions of contemporary art in proud to present – for the first time – the art and Indonesia. The works of Made Wianta reflect culture of Member State Indonesia and the beauty and power of the colorful Balinese

60 OFID QUARTERLY JULY 2011 MEMBER STATES FOCUS

nature and the fundamental elements water, earth, wind, fire and ether (space). On display were 25 paintings portraying these elements of nature which Wianta per- ceives as the “alphabet” of creation. For Wianta, nature is the source of all fine art, providing the basic material to create. Nature is a “usefully put-together system,” and the Balinese artist finds his inspiration in the solid of the earth, the liquid of water, the breeze of wind, the fire and the sound of space. With all these elements, he forms a new reality: Art. Made Wianta’s art also aims at raising awareness and responsibility over the global environment. His strong sense of conscious- ness and social responsibility toward the environment prompted him to hold several exhibitions, donating his paintings for sale in support of various social causes. Contemporary artist Wianta was born in 1949 in the village of Apuan in the remote high- lands of Tabanan Regency in Bali, Indonesia. Wianta’s painting “Poems of Happiness”, an oil acrylic on canvas. He studied at the Indonesian School of Fine Art in Denpasar, and at the Indonesian Academy of Fine Arts in Yogyakarta, central Java, where he “Transformations of Nature” is the first exhibi- received his diploma in 1980. In decades of an tion held in Austria. Among the countries in artistic career, he has articulated himself in which he has exhibited his works or partici- many different styles and art forms including pated in group art shows have been paintings, installations and poems. He has cre- Bangladesh, Belgium, France, Germany, Italy, ated more than 14,000 pieces of artwork and Japan, Malaysia, the Netherlands, Russia, Singa- has exhibited nationally as well as internation- pore and the United States of America and now ally at prestigious galleries and museums. also Austria.

From left: HE Mr. I. Gusti Agung Wesaka Puja, Ambas- sador of the Republic of Indonesia to Austria; OFID Director-General, Mr. Suleiman J. Al-Herbish; and Mr. Made Wianta.

OFID QUARTERLY JULY 2011 61 OPEC

Book: I need to know An introduction to the Oil Industry and OPEC

by Alvino Mario Fantini

W hen OPEC celebrated its 50th anniversary last September, it marked the occasion with a variety of events, including the issuing of special postage stamps by the Organiza- tion’s Member Countries and an exhibition in Vienna that showcased their rich, diverse cultures. The Organization also embarked on the publication of an illustrated primer on oil for young readers entitled “I Need to Know: An Introduction to the Oil Indus- try and OPEC.” The 66-page book is divided into chapters on ‘Oil Basics’, ‘Finding Oil’ and ‘Refin- ing Oil’, and includes a final chapter focusing on the origins and history of the Organiza- tion of the Petroleum Export- ing Countries. This chapter also explains how the Orga- nization’s Member Coun- tries work together to keep the oil market well-supplied and achieve stability in the oil markets.

62 OFID QUARTERLY JULY 2011 OPEC

New OPEC publication seeks to teach young readers about the oil industry.

OFID QUARTERLY JULY 2011 63 OPEC

This colorful, large-format, hard-cover book marks OPEC's first effort ever to educate and inform young readers about “The challenges of our world will some- the workings and importance of day be yours; and the more you know

the oil industry, and to provide PHOTOS: OPEC/DIANA GOLPASHIN and understand about the world’s most a better understanding of the important energy source … the better pre- Organization's role. pared you will be to respond to the challenge of the future,” El-Badri says. The Secretary General expresses his hope in the Foreword that the young people who read the book will not only enjoy “I Need to Know: An Introduction to the book, but after reading it, will find the the Oil Industry and OPEC” gives readers industry as “compelling … as it has been basic information about the workings of for me and the many men and women the oil industry - explaining such things who have worked in it for many years.” as the nature, composition and the defi- Abdalla Salem El-Badri, OPEC Secretary General Although the objective of the book nition of the different grades of crude oil, is primarily to teach young readers and providing an overview of the fundamen- hard-cover book marks OPEC’s first ef- students about the oil industry, it will tals of exploration and production meth- fort ever to educate and inform young also profit mature readers with no indus- ods, as well as a look at the workings of readers about the workings and impor- try knowledge. Even young readers with an oil refinery, and generally outlining tance of the oil industry, and to provide no prior interest in energy matters will the main features of both the industry’s a better understanding of the Organiza- find the book informative and visually upstream and downstream sectors. The tion’s role. As OPEC Secretary General appealing. book also includes a Glossary of Terms of Abdalla Salem El-Badri says in his Fore- “I Need to Know: An Introduction frequently used technical words and ex- word, “[t]here is a first time for every- to the Oil Industry and OPEC” is cur- pressions - like “Christmas tree”, “distil- thing.” And this certainly is a first for the rently available in English. It will soon late yields” and “permeability”. Organization. be translated into Arabic, Farsi, Por- The colourful illustrations and de- Continuing in his Foreword, El- tuguese and Spanish - the main lan- signs were carried out by a Vienna-based Badri says that the book is “not only guages of the Organization’s twelve Graphic Designer/Illustrator, Michael about an industry that is central to the Member Countries - as well as German Haderer, in collaboration with the OPEC way we live today - and to the creation of for readers in the Organization’s host Secretariat. The book itself was printed economic opportunities around the country of Austria. OPEC will then dis- by Ueberreuter Print GmbH. world - it [also] addresses people who will tribute the book across its Member The culmination of more than a become the business and political leaders Countries, as well as to schools and in- year’s work, this colorful, large-format, of tomorrow. ternational organizations.

For more information on the book, please contact the Public Relations and Information Department at Helferstorferstrasse 17, A-1010 Vienna, Austria or send an email to prid@opec.org.

64 OFID QUARTERLY JULY 2011 www.ofid.org

Our vision To aspire to a world where Sustainable Development, centred on human capacity-building, is a reality for all.

Our mission To foster South-South Partnership with fellow developing countries worldwide with the aim of eradicating poverty. Parkring 8, A-1010 Vienna, Austria P.O. Box 995, A-1011 Vienna, Austria Telephone: (+43-1) 515 64-0 Fax: (+43-1) 513 92-38 www.ofid.org