The Sdgs: Much More Than a New Beginning No More “Business As Usual”

OCTOBER 2015 OCTOBER

The SDGs: Much more than a new beginning No more “business as usual”

OFID Corporate Plan looks to the future Energy access, the nexus & the SDGs

Report: Addis Ababa Action Agenda

INSTITUTIONS

AND STRONG AND PEACE, JUSTICE PEACE, OFID Quarterly is published COMMENT four times a year by the OPEC Fund for International More than fit for purpose 2 Development (OFID).

OFID is the development ﬁ nance agency established in January 1976 by the Member States of OPEC SPECIAL FEATURE (the Organization of the Petroleum Exporting Countries) to promote The SDGs: Much more than a new beginning 4 South-South cooperation by extend- Energy access, the nexus and the SDGs 10 ing development assistance to other, non-OPEC developing countries. The language code of SDG 5 OFID Quarterly is available What does the future hold for gender equality free-of-charge. If you wish to be and human rights? 13 included on the distribution list, please send your full mailing details Welcoming the SDGs: No more “business as usual” to the address below. Back issues of Interview with Dr Mahmoud Mohieldin, the magazine can be found on our Corporate Secretary of the World Bank 15 website in PDF format.

OFID Quarterly welcomes articles OFID in the Field 18 and photos on development-related Honduras: Promoting development topics, but cannot guarantee through the wind 20 publication. Manuscripts, together Philippines: Fostering rural productivity with a brief biographical note on 22 the author, may be submitted in the uplands to the Editor for consideration. Solutions for a thirsty and crowded Abidjan 24

The contents of this publication do not necessarily reﬂ ect the ofﬁ cial views of OFID or its Member NEWSROUND Countries. Any maps are for illustration purposes only and OFID and St Lucia resume cooperation 26 are not to be taken as accurate representations of borders. Editorial OFID and Madagascar continue longstanding material may be freely reproduced, partnership 28 providing the OFID Quarterly is credited as the source. A copy to the Road agreements pave the way for economic Editor would be appreciated. opportunity in Sri Lanka 30

OFID promises support to Nicaragua’s SDG aspirations 32

OFID Diary 34 Meetings attended by OFID 35 152nd Governing Board photo gallery 36 Loan and grant signature photo gallery 38

SPOTLIGHT

New Corporate Plan looks to the future 40 OCTOBER 2015 PERSPECTIVES

St Lucia: Small island, big dreams Interview with Prime Minister Anthony 42

CONFERENCE WATCH

Third Financing for Development Conference Addis Ababa summit agrees financing framework for post-2015 agenda 44 15 Alpbach Political Symposium Inequality: A force for bad or good? 47

MEMBER STATES FOCUS 20 Kuwait launches initiative to shore up local fisheries 50

Can Qatar grow 50 percent of its vegetables locally by 2023? 51

First Saudi Arabian women register for local elections 52

OPEC

50 years of sharing OPEC celebrates half century in Vienna as its home 53

PUBLISHERS THE OPEC FUND FOR INTERNATIONAL DEVELOPMENT (OFID) Parkring 8, P.O. Box 995, A-1010 Vienna, Austria 48 Tel: (+43-1) 51564-0; Fax: (+43-1) 51392-38 Email: [email protected] www.ofid.org

EXECUTIVE EDITOR Deyaa Alkhateeb

EDITOR Audrey Haylins CONTRIBUTORS Said Aissi, Mohammad Al-Sheha, Namat Abu Al-Soof, 56 Nadia Benamara, Damelys Delgado, Fatma Elshhati, Faris Hasan, Anna Ilaria-Mayrhofer, Nastaran Sharif, Fuad Siala, Geoffrey Skipper, Alesandra Solano, Arya Gunawan Usis, Justine Würtz

PHOTOGRAPHS Abdullah Alipour Jeddi, Carlos Opitz (unless otherwise credited)

PRODUCTION Susanne Dillinger

DESIGN etage.cc/krystian.bieniek

PRINTED IN AUSTRIA Ueberreuter Druckzentrum GmbH

This publication is printed on paper produced from responsibly managed forests. COMMENT

More than fit for purpose

t’s official: the international community has a I new development agenda—a 15-year roadmap to ending poverty, hunger and inequality and building a more sustainable planet. Broader, more inclusive and more integrated than the MDGs, the new agenda gets to the nitty-gritty of development and the issues that impede progress. It promotes a holistic approach, recognizing the inherent links among all 17 of its ambitious goals—the SDGs. And it acknowledges that different countries have different challenges and priorities. But the 2030 agenda is much more than just a makeover of the MDGs. It is the result of a prolonged and wide-reaching consultation process, involving a multi- tude of voices. Everyone—including civil society—had their say. This alone sets it apart and bodes well for its success. Of course, there were sacrifices and trade-offs along the way, as each party fought its corner. But at the end of the day, self-interest gave way to reason, and all 193 UN member states signed up to the agenda. The final document may have lost some of its bite because of the need for compromise, but its adoption in New York on September 25 was a triumph for international cooperation and understanding.

2 OFID QUARTERLY OCTOBER 2015 COMMENT

So, we have the roadmap. Now it’s a matter of ensuring Which begs the question: Is OFID fit for purpose? Is it that we get from A to B using the most effective route ready and able to shoulder the increased responsibilities possible. Nobody is expecting an easy ride. and demands of this ambitious new development paradigm? For a start, as well as the political will to see them through, the success of the new goals depends heavily The answer, in a word, is yes. OFID has been preparing on the gathering of data to measure the progress—or itself for this challenge for a long time. We have been otherwise—of their implementation. It is as yet unclear actively involved in the various processes leading up to exactly how this will be done. agenda 2030 and have a vested interest in its success. In fact, it was our advocacy that saw energy poverty eradi- Equally crucial is the question of financing, with experts cation adopted as SDG 7. citing requirements in the trillions of US dollars a year. Just how such resources could be provided was the topic We have also devoted time to restructuring and enhanc- of July’s financing for development conference in Addis ing our resources—financial and human; we have Ababa—the “how” to the “what” of the new agenda. expanded the diversity and outreach of our operations; we have built capacity and streamlined systems and pro- The conference had some sticky moments, especially cedures; and we have reinforced our partnership network. over the issue of official aid flows and in particular ODA, the most important source of development financing for And, in anticipation of the upcoming critical period for the poorest countries. However, agreement was reached development, we have drawn up a 10-year strategic plan on a comprehensive action plan—an integral compo- that will focus and guide our work from 2016 onwards. nent of agenda 2030—that speaks to innovation and This plan takes an integrated “nexus” approach to de- more effective financial engineering. velopment, and as such is fully aligned with the global While the details are still being elaborated, what’s cer- 2030 agenda. At its core are the closely intertwined chal- tain is that there will be a greater role for the private lenges of modern energy access, clean water and food sector and for development finance institutions like security—with transportation as a fourth, enabling OFID, both as sources of funding and as catalysts for component. We are convinced that these areas hold the technology transfer and knowledge sharing. key to poverty eradication and sustainable development. According to UN Secretary-General Ban Ki-moon, the So, yes, OFID is not just ready to take up its role in the glue that will hold the 2030 agenda together—and ulti- renewed global partnership. It is equipped to do so from mately determine its fate—is a renewed global partner- a position of considerable strength. ship. On the horizon—still distant but compelling nonethe- “The 2030 agenda compels us to look beyond national less—is the prospect of a world defined, not by inequal- boundaries and short-term interests and act in solidari- ity and poverty, but by inclusion, prosperity and dignity for the long term. Institutions will have to become fit ty for all. Now isn’t that worth fighting for? for purpose, a grand new purpose,” he stated, following

adoption of the new framework.

OFID QUARTERLY OCTOBER 2015 3 “We will either find a path, or make a new one.” Hannibal Barca 247 BC–182 BC

4 PHOTO: OMELCHENKO/SHUTTERSTOCK.COM SPECIAL FEATURE

The SDGs: Much more than a new beginning

With an ambitious 17 goals and 169 targets, the newly unveiled Sustainable Development Goals have already attracted more than their fair share of criticism. Some of the negativity may be justiﬁ ed, but no matter the results in 15 years’ time, the SDGs have already brought new approaches, ideas and solutions to the table.

by Mohammad Al-Sheha

5 SPECIAL FEATURE

hen world leaders announced the many to question how realistic the new roadmap W Millennium Development Goals actually is. Detractors also point to the sacrific- (MDGs) at the September 2000 Mil- es that have been made to reach a consensus, lennium Summit, they were united on the need leading to accusations of a set of goals that in- for a development agenda that would take action clude something for everyone and nothing for and make real progress. With eight goals and 21 anyone. targets, the MDGs provided for the first time a Several prominent stakeholders have voiced their clear guide to disbursing development aid and concern that the number of goals and targets is informing policy in order to free people from simply too many and lacks the coherence of the extreme poverty, provide education and im- MDGs. The previous agenda, although limited, prove health by 2015. was easier to understand and concentrated on the The new SDGs—approved by the UN Gen- needs of developing countries. The global nature eral Assembly at its specially convened summit of the SDGs means that countries must pick and on September 25–27—are intrinsically different choose and decide what is in their best interests; to their predecessors. While the MDGs identi- the targets do not necessarily apply to everyone. fied particular problems to be tackled, the SDGs The broad scope has also raised questions address the systemic issues that slow and hinder regarding data gathering. Even though it is an development. The SDGs are also a more integrat- integral part of the new agenda, setting up the Omitted under the ed structure, with a complex network of linkag- necessary infrastructure and systems to gather MDG process, data es among the 17 goals and their respective targets data will be a monumental task, requiring sub- highlighting the necessity of a holistic approach. stantial funding. A smaller more concentrated gathering is an integral Even though it can be demonstrated that set of goals and targets would have been easier part of the new agenda; the MDGs had a high degree of success, from the to implement and monitor, argue critics. deemed essential to beginning they suffered a number of shortcom- ensure that the goals ings. The SDGs have tried to deal with these Stakeholder network and targets are effectively deficiencies in order to ensure that the new development agenda is both more comprehensive Some of the criticism is valid but at the same monitored and assessed. and at the same time endowed with greater le- time fails to recognize a process that already gitimacy thanks to the extensive consultation began before the SDGs were finally agreed on by process that shaped it. the network of partners created by the MDGs. This network has become bigger, stronger and Building on lessons learnt more varied over the past 15 years, and the systemic approach that was chosen to formulate the On the face of it, there is much to applaud in the new goals and targets has only added to the need new agenda. In direct contrast to the MDGs, to work with others. It is now no longer simply which took a top-down approach, the SDGs a matter of projects and finance. Partnerships involved consultation with both developed and were and continue to be established among an developing country governments and all seg- eclectic range of stakeholders to come up with ments of society. As a result, they address whole the best possible solution for any one particular systems and cover a much broader range of is- problem. And what the SDGs have done is help sues than the MDGs. Another divergence be- with the understanding of who can and should tween the two agendas lies in the issue of data work together. It is now impossible for individu- gathering. Omitted under the MDG process, al stakeholders to concentrate only on what di- data gathering is an integral part of the new rectly involves them. agenda; deemed essential to ensure that the An excellent example of an integrated ap- goals and targets are effectively monitored and proach is the water-food-energy nexus, which assessed. In a similar vein, where the MDGs were responds to the need to balance environmental launched with no thought to the question of concerns with poverty reduction and economic funding, the financial resources required to growth. As revealed in a 2012 questionnaire on implement the SDGs were part of the process the SDGs completed by member states of the UN from the very beginning. General Assembly, these three sectors are con- In devising the SDGs, there has been a sidered of utmost priority, overriding other concerted effort to produce an agenda that important concerns such as health, education learns from and is a significant improvement on and poverty eradication. what was approved at the beginning of the Mil- Simplistically speaking, the water-food-en- lennium. However, it is this very desire to ad- ergy nexus suggests links between most of the dress all the criticisms of the MDGs that has led targets under Goal 2 (food security), Goal 6

6 OFID QUARTERLY OCTOBER 2015 SPECIAL FEATURE

End poverty in all its forms everywhere

End hunger, achieve food Ensure healthy lives and Ensure inclusive and quality Achieve gender equality security and improved promote well-being for education for all and and empower all women nutrition and promote all at all ages promote lifelong learning and girls sustainable agriculture

Ensure access to water Ensure access to affordable, Promote inclusive and Build resilient infrastruc- and sanitation for all reliable, sustainable and sustainable economic ture, promote sustainable modern energy for all growth, employment and industrialization and foster decent work for all innovation

Reduce inequality within and Make cities inclusive, safe, Ensure sustainable Take urgent action to among countries resilient and sustainable consumption and production combat climate change and patterns its impacts

PEACE, JUSTICE AND STRONG INSTITUTIONS

Conserve and sustainably Sustainably manage forests, Promote just, peaceful Revitalize the global use the oceans, seas and combat desertification, halt and inclusive societies partnership for sustainable marine resources and reverse land degrada- development tion, halt biodiversity loss

OFID QUARTERLY OCTOBER 2015 7 SPECIAL FEATURE

(water & sanitation) and Goal 7 (energy access). is a danger of presuming economic or physical However, these three goals on their own do not links that are simply not there and as a result take full account of all the relevant interconnec- producing flawed policies. 120,085 tions. To cover the nexus effectively requires Due to the interconnections and remain- attention to a much larger number of interac- ing gaps, it is also very difficult to discern an tions among all 17 goals and 169 targets. identity or a distinguishing characteristic of the SDGs. Unlike the MDGs which had a clear focus Mind the gap on combating extreme poverty, the SDGs have no, single stand-out aim. Although this has its It should also be noted that there are gaps in the advantages as it provides “something for every- SDGs that need to be filled at some point in time one,” it has left those who were seeking a clear for the system to work properly. Goal 7: “Ensure agenda very much wanting. access to affordable, reliable, sustainable and The Synthesis Report of the UN Secre- modern energy for all,” is a case in point. The tary-General, released in December 2014, iden- goal has been formulated in such a way as to tified six essential elements to development: focus on the needs of the individual without People, Dignity, Prosperity, Justice, Partnership considering productive needs, for example of and Planet. These are meant to bind the SDGs industry, a primary driver of economic growth. and enable the clustering of the disparate goals Access to a reliable source of energy offers and targets, ostensibly to make them easier to limited value if it is only to power a light bulb. follow and promote. How useful this is in help- 35,000 But if it also powers a sewing machine, that ing to understand the agenda is a matter for same energy source can raise an individual’s discussion, but it reinforces the idea of applying productivity and eventually help lift them out an integrated approach to development. of poverty. There can be no doubt that the implemen- 30,000 The above example illustrates how import- tation of the SDGs will have a significant impact ant it is not to jump to conclusions when inter- on global development in the coming years, preting the SDGs. Care should be taken not to whether directly or indirectly. However, it is also infer links that might appear obvious but which important to take note of the criticism, because 25,000 are not actually spelled out. The SDGs are the even accepting that a large agenda is necessary result of intergovernmental discussions; they and that clarity needs to be sacrificed, there are represent a political compromise reflecting the on-the-ground complications that cannot be multiple concerns of 193 countries. As such there ignored. 20,000

Actual vs. pledged ODA, 2013 (US$m)

15,000

10,000 Actual ODA

0.7% of GNI 5,000 Source: OECD

0 United States United Kingdom Germany Japan France Sweden Norway Netherlands Canada Australia Italy Switzerland Denmark Spain Belgium Korea Finland Austria Ireland Portugal Poland New Zealand Luxembourg Greece Czech Republic Slovak Republic Slovenia Iceland

8 OFID QUARTERLY OCTOBER 2015 SPECIAL FEATURE

COP21: friend or foe? has been stated in the outcome document does not necessarily mean it has been properly incor- One such difficulty is the synergies between the porated into the approved agenda. SDGs and the new agreement on climate, which will be concluded in Paris this December at the Managing the metrics 21st yearly session of the Conference of the Parties (COP21). The SDGs are critical for combating cli- The importance of data gathering should also mate change. Both agendas are mutually reinforc- not be underestimated. The legitimacy of the ing and are bound, in some respects, by a shared SDGs hinges on how the goals and targets will financing plan. However, the sums required are in be effectively monitored and assessed, especial- the trillions of US dollars per year, and there is a ly because of their global nature. One of the danger that more money will flow toward combat- main questions that will be asked is what is being climate change than providing for the needs ing done in developing countries and in partic- of the least developed countries (LDCs). ular LDCs. For instance, it will be of little value Perhaps the most worrying sign of things to produce global estimates only to later recog- to come is the outcome of the Financing for nize that most of the progress was realized in Development (FfD) Summit that was held in developed countries. The sheer number of goals Addis Ababa in July. The Addis Ababa Action and targets will make it even more difficult to Agenda was meant to lay out a financing plan set up an effective monitoring system. There are for the SDGs and climate change that would also cost considerations. According to a study spread the load across three sources: official by the Copenhagen Consensus Center: “A fu- development assistance (ODA), internal resource ture agenda with 169 targets has an estimated mobilization and the private sector. However cost that is almost two times the total annual only a watered-down agreement for the first two spend on official development assistance glob- was reached, leaving the FfD strategy even more ally.” heavily reliant on private sector involvement. The SDGs are not perfect, and the determi- This is bad news for the developing countries, nation to see them through will surely be tested especially LDCs, where ODA remains the most in the coming years. With the interests of so significant source of finance and private invest- many countries and groups to be considered and ment is limited. satisfied, the new agenda was bound to disap- point some. Nevertheless, the stage has been set Burden of responsibility and it is up to all those concerned to fill in the gaps and apply pressure where and when needed Another difficulty inherent in the SDGs is the to make the SDGs a success. We are all well aware Composition of absence of an accurate integration of common but of the pitfalls, so we can either use them to make financial flows to differentiated responsibilities (CBDR), a principle excuses for why we failed, or make sure to work developing countries that increases the liability of developed countries with others to find a way around them. in 2012 to global development while lowering that of developing countries. Even though the principle 100% is clearly stated in the outcome document of Sep- tember’s UN summit for the adoption of the post- 2015 development agenda, the global nature of 80% the goals makes it difficult to understand how effectively the principle might be applied. There is general agreement that the inter- 60% national legal framework is somewhat unclear regarding the application of CBDR to sustainable development and hence to the SDGs. Nev- 40% ertheless, the importance of the principle was stressed by Macharia Kamau, Co-Chair of the Open Working Group on the SDGS, when he 20% urged members during the process to consider whether a proposed goal spoke equitably to “north and south, east and west, and rich and 0% poor.” Whether member states have ensured LDCs LMICs UMICs that all the goals and targets take proper consid- ODA: Official Development Assistance OOF: Other Official Flows eration of CBDR is debatable. That fact that it LMICs: Lower Middle Income Countries UMICs: Upper Middle Income Countries Source: OECD

OFID QUARTERLY OCTOBER 2015 9 SPECIAL FEATURE

Energy access, the nexus and the SDGs

As the global community unites to implement the new development agenda, the Quarterly looks at the importance of an integrated approach to satisfying the three-pronged challenge of energy, water and food security. by Namat Abu Al-Soof and Fuad Siala

fter being omitted from the Millenni- able if it works within those constraints, over A um Development Goals, the eradica- time and across sectors and locations. tion of energy poverty has secured a A framework to achieve this must consider prominent place in the post-2015 development the ways that activities in different sectors in- agenda, where it is addressed under Sustainable teract, including their respective pressures on Development Goal 7. natural resources. A “nexus” approach can help SDG7 has three main targets: ensuring to formulate goals and targets that minimize universal access to affordable, reliable, sustain- trade-offs and maximize synergies between able and modern energy; substantially increas- goals, making the SDGs more cost-effective and ing the share of renewable energy in the global efficient, reducing the risk that progress towards energy mix; and doubling the global rate of one goal will undermine progress towards an- improvement in energy efficiency. other, and ensuring sustainable resource use. It further sets out to expand infrastructure The guiding principles of the nexus ap- and upgrade technology in order to supply mod- proach are to promote sustainable and efficient ern and sustainable energy services to develop- resource use; in other words, doing more with ing countries, particularly the least developed less to ensure access to resources for the most nations and small island developing states. And, vulnerable—especially the poor—and to main- it encourages international cooperation to facil- tain healthy and productive ecosystems. itate access and investment in clean energy re- A key principle of the SDGs is universality: search and technologies. that the goals will be relevant to all countries, The incorporation of energy as a stand- and all will contribute to achieving them, but alone goal in the new agenda is acknowledge- with differentiated targets and actions. The ment of its crucial role as an enabler of econom- bottom-up process and nexus approach are en- ic and human development. tirely compatible with this principle. Countries will face different trade-offs and Toward an integrated framework synergies, and find different ways to improve development outcomes, emphasizing different While the MDGs aimed to lift people out of pov- targets. The targets may be seen as building erty, the SDGs aim to keep them out of poverty blocks that each country will combine in its own by ensuring that development is both socially way, balancing the needs for access to resources, and environmentally sustainable. efficiency, and long-term sustainability to fit the Long-term sustainability requires acknowl- local context and capabilities. Through a bot- edging that many of the resources that support tom-up process and nexus approach, a suitable development—such as water, land and materi- set of actions for a specific country (or region) als—are finite and are also needed to support can be identified. ecosystems. Development can only be sustain-

10 OFID QUARTERLY OCTOBER 2015 SPECIAL FEATURE

OFID fully aligned

Traditionally, development planners In Tanzania, two pilot 87.5 kilowatt-hour environment. However, it gives prior- have often sought solutions to the solar farms are being installed for rent- ity to ensuring access to energy as an water, energy or food crises by ad- ing to the agro-food sector in an effort important element of sustainable dressing each problem separately. But to attract sufficient private sector in- development. tackling just one of the three elements vestment to finance the scale-up of the This position is in response to the can aggravate one or both of the oth- service to, potentially, 5.2 mega- Third OPEC Summit of November ers. As a development institution of watt-hour. 2007, which established the eradica- almost 40-years’ standing, OFID has OFID recognizes that strengthening tion of energy pover ty as a priority for extensive experience in addressing supply chains—including through co- OPEC aid institutions. OFID was fur- these connected challenges. ordinated investments in energy and ther convinced to pursue this strategy For example, OFID recently cooper- transport infrastructure—will enable by the fact that energy access is a ated with the Renewable Energy and efficient food processing and faster prerequisite to achieving the MDGs Energy Efficiency Network (REEEP) access to markets. Improved trans- and their successor the SDGs. to establish the “OFID-REEEP Revolv- port, storage, refrigeration and port Within the context of the SDGs, inter- ing Capital Pool.” In its first round in facilities will facilitate trade in food and ventions related to the energy-water- 2014, this pool partially funded two non-food products and reduce the food nexus will move higher up the energy access projects that impact the costs of fertilizers and other inputs. agenda of governments, development water and food sectors. Such conditions will lay the founda- finance institutions and project spon- In Kenya, solar irrigation pumps are tions for agriculture to be an expand- sors. It is for this very reason that OFID being installed on 825 smallholder ing, income-generating and profitable has adopted the water-food-energy farms, paving the way for private sec- business sector in low-income coun- nexus as the theme of its Corporate tor investment to unlock scale and tries where it is the backbone of the Plan 2016-2025. By aligning its strategic increase uptake of solar irrigation, economy. plan with the nexus, OFID has also potentially reaching 20,000 smallhold- In all its work, OFID seeks to ensure aligned itself with the new develop- er farmers through consumer financ- a balance between economic growth, ment agenda and global aspirations for ing of solar irrigation. social progress and protection of the the next 15 years. PHOTO: FUTUREPUMP PHOTO:

Under the OFID-REEEP energy access program, Kenyan smallholders are using solar powered pumps to irrigate their crops.

OFID QUARTERLY OCTOBER 2015 11 SPECIAL FEATURE

The energy-water-food nexus ments estimated to increase by over 50 percent. Meanwhile, the competing needs for limited Due to global transformational trends—such resources constrain the ability of existing water, as population growth, economic development energy and food systems to meet this growing and climate change— energy, water, land and demand. The challenge is further compounded human resources are increasingly under pressure by climate change impacts. to support societal development and to maintain Given their importance, water, food and necessary services. Decision makers need im- energy have been identified as priority areas for proved tools in order to be better informed about the SDGs, both in the Rio+20 outcome docu- trade-offs and synergies between different devel- ment and in the outcome document of the Unit- opment and management choices, and to help ed Nations Open Working Group (on the SDGs). them identify options on how to sustainably Under the post-2015 agenda, the wa- manage resources. ter-food-energy nexus suggests links between The interlinkage between the water, energy most of the targets under Goal 2 (food security), and food supply systems—the nexus—is a major Goal 6 (water & sanitation) and Goal 7 (energy consideration in countries’ sustainable develop- access). ment strategies. Rapid economic growth, ex- Clearly there are many connections be- panding populations and increasing prosperity tween water, food and energy targets. But, in are driving up demand for energy, water and order to be able to address them effectively, there food, especially in developing countries. is a need to understand the nature of those in- By 2050, the demand for energy will near- teractions as enablers of development. For ex- ly double globally, with water and food require- ample, food production requires water, land and energy. The analysis of the Stockholm Environ- ment Institute shows three main types of inter- Interactions between proposed water, actions. Some are interdependent: one target has energy and food targets to be realized in order for another to be viable, usually because access to water, energy or land for food production needs to be ensured. Other Balance targets impose conditions or constraints on one of water another. Some targets reinforce each other, withdrawals Ensuring Improving highlighting potential synergies. and supply access energy Achieving access to energy, for instance, to water efficency often depends (red arrow) on water access, while the targets on sustainable water withdrawal Improving levels and the ambition to increase the share of Sustainably water improve yields energy from renewable sources impose condi- use efficency tions (blue arrow) on how access to energy services can be ensured. Improved water efficiency and energy effi-

Increase ciency reinforces (green arrow) both the energy Ending the share access and the sustainable water withdrawals Hunger of renewable targets. Ending hunger, in turn, depends on energy access to energy services and water (as both are needed to produce food). Similarly, the targets on the sustainable improvement of yields, ad- Address Address land dressing land conversion for agriculture, and climate impact conversion sustainable food and agricultural systems set of agriculture to agriculture conditions for eradicating hunger. Integration through a nexus approach Sustainable Good could help the SDGs to manage complexity, and food and management make the goals easier to communicate and to agricultural Ensuring of water systems access resources implement. The approach may also support Dependent to energy more effective negotiations, by enabling coun- Imposes conditions services tries to see more clearly where their interests Reinforces coincide, where they diverge, and how they Source: Stockholm Environment Institute might reconcile their differences.

12 OFID QUARTERLY OCTOBER 2015 SPECIAL FEATURE The language code of SDG 5 What does the future hold for gender equality and human rights? PHOTO: PHILIPPE LISSAC/GODONG/CORBIS PHILIPPE PHOTO:

Despite progress under the MDGs, gaps are still very much in evidence when it comes to rights and opportunities for women and girls. Which begs the question: Can the SDGs make a difference? Here, the Quarterly examines the language of SDG 5 for clues.

by Nastaran Sharif

he Economist recently described In the midst of this tug of war, a closer look cation; the situation of women in waged T the 169 proposed targets of the at the language of the SDGs may offer employment in the non-agriculture sec- SDGs as “wasted opportunity” some direction. tor; and the representation of women in and so “sprawling and misconceived that parliament. Although this focus was based the entire enterprise is being set up to fail.” MDG 3 vs. SDG 5 on statistical needs, both critics and pro- The Heritage Foundation, a research think- ponents agreed that the targets fell short tank based in Washington DC, admitted MDG 3 committed to “promote gender of addressing gender inequalities. that the SDGs could be a useful tool to equality and empower women,” a formu- measure progress, but claimed that the lation that at first glance appears focused. Human rights: an “invisible” goals are “articulated in such imprecise SDG 5 aims to “achieve gender equality component? language that it makes them immeasurable.” and empower all women and girls.” The Critics consider the SDGs too vague differences are obvious. Whereas MDG 3 The human rights shortcomings of and indefinite; they favor the MDGs, pledged to “promote,” SDG 5 commits to the MDGs were widely criticized. Accord- which they believe were more fo- “achieve.” Moreover, the explicit inclusion ing to the UN Development Group “a set cused. Proponents of the SDGs, on the of “girls” and of the word “all” expands of indicators measuring the extent to other hand, defend the new targets as this right to include both age and number. which an enabling legal and policy envi- all-encompassing and the result of a fully Under closer scrutiny, MDG 3 appears re- ronment is present to promote and protect inclusive process. After all—they point duced in substance. the exercise of these rights and freedoms out—the SDGs, unlike their predecessor, Both goals have their attached tar- should be preserved as an indivisible [hu- are formulated through voices from devel- gets. Under MDG 3, these address gender man rights] component of the post-2015 oping countries and civil society. disparity in primary and secondary edu- framework.”

OFID QUARTERLY OCTOBER 2015 13 SPECIAL FEATURE

When compared to the substance of the SDG 5 sets out to achieve gender equality Legal reforms MDGs, the SDGs are more open and inclu- and address women’s rights. This is an am- sive. According to The Center for Economic bitious goal, which requires significant in- Also being promoted under SDG 5 are and Social Rights, the SDGs address the vestment. Under MDG 3, investment in legislative and administrative reforms to critical element of human rights much gender equality increased from US$8bn in ensure women’s equal right to economic more effectively, with a stronger focus on 2002 to US$28 billion in 2013. These re- and productive resources. Data and mon- gender targets. The six targets of Goal 5 do sources focused on education and health, itoring will be strengthened, and coun- this by addressing discrimination against and pointed to a single goal: MDG 3. tries will be able to track and publish women everywhere; violence against wom- public spending on gender equality. en and girls; child, early and forced mar- Investment: a shift in focus Governments are encouraged to cre- riage and female genital mutilation; unpaid ate an environment that is conducive to care and domestic work; women’s partici- SDG 5 will attempt to increase and expand the broad-based empowerment of women pation in decision-making; and their sex- investment in gender equality in the eco- and girls and receptive to gender equality. ual and reproductive health and reproduc- nomic and productive sectors. An OECD Government and donors are further en- tive rights, including HIV vulnerability. study describes how under SDG 5, there couraged to invest in women’s organiza- Nonetheless, despite the clear move will have to be intensified investment in tions, to enable their effective participa- toward a human rights-based approach, sectors such as energy, banking and finan- tion in countries’ national planning and SDG 5 is still limited by the absence of the cial services. In 2013, investment in those budgetary processes. word “human rights” itself. This omission sectors represented only two percent of all The international community has may—in the end—leave these targets with- investment in gender equality. been encouraged, and promises have been out teeth. Optimistically, progress will According to the IMF, investment in made, but do the SDGs voice a clear com- develop and the follow-up agenda to the the economic and productive sectors is mitment? The linguistic forecast does not SDGs post-2030 may transfer into to a new necessary for sustainable growth but is not show a significant shift from the MDGs. lingua franca of all-inclusive humanitar- sufficient on its own. Efforts must go be- Although SDG 5 mentions legal reforms ianism, turning the “invisible” compo- yond small investments in microcredit and technology (5.a, 5.b and 5.c), the top- nent of human rights into a “visible” one. and enterprise development. To this end, ic of funding remains untouched. Could All optimism aside, a final question a significant increase in gender-related the silence on funding be a negative indi- remains: where’s the fuel? Even if the SDG domestic public finance is necessary. In- cator on the level of commitment estab- 5 language was to be considered inclusive, vestments to strengthen access to health lished on initial consensus? In the end no it will still need to be implemented. Ac- and education, as well as infrastructure forecast can be made for the success of SDG cording to the European Parliament, one and its efficiency, would provide women 5, but the apparent global support and of the greatest setbacks in the implemen- with better access to finance and the gen- awareness alone qualifies as a paramount tation of the MDGs was the inadequacy of eral economy. achievement. funding, particularly for gender equality.

With access to financing, either individually or as a group, women are able to participate directly in the economy and enjoy a greater degree of independence. LISSAC/GODONG/CORBIS PHILIPPE PHOTO:

14 OFID QUARTERLY OCTOBER 2015 SPECIAL FEATURE

Welcoming the SDGs: No more “business as usual”

Developed through an extensive and inclusive consultation process lasting over three years, the SDGs are the broadest, most ambitious development agenda ever agreed at the global level. In his role as corporate secretary of the World Bank, Dr Mahmoud Mohieldin, led his institution in helping to shape the goals. Here, he outlines for the Quarterly his views on the new agenda. by Arya Gunawan Usis

OQ: As an expert involved throughout the process, OQ: How do you see the transition from the do you think the final document is the best that the Millennium Development Goals (MDGs) to the world can have? SDGs?

MM: The new development agenda is universal, MM: The progress achieved under the MDGs, calling for action by low-, middle- and high- which close at the end of the year, was substan- income countries alike. In the current draft tial. Global poverty, for example, was halved five document, Member States pledge that no one years before the deadline. This reduction, how- will be left behind. It focuses on people, planet, ever, occurred at the global level; at the country “As many have said, prosperity, peace and partnership (5 Ps) as indi- level, incidences of extreme poverty still persist. the 2030 agenda and the visible concepts. The new SDGs contain an In this context, the SDGs set out to finish the all-encompassing and nuanced set of targets that unfinished business of the MDGs. In comparison SDGs that it enshrines generate momentum and accountability for to the establishment of the MDGs, this process are a great step forward, sustainable development, including ending has been far more transparent, inclusive and but the real work lies poverty by 2030. discursive with much debate and compromise. ahead of us. ” In developing the SDGs, each country had the OQ: Were stakeholders forced to make many sac- opportunity to determine goals and targets that rifices for the sake of compromise? fit their national interests, to promote economic growth and investment with the intention of MM: Given the scale of this effort, it is natural ending poverty and protecting the planet. that there could be some reservations by some UN Member States. However, the overwhelming OQ: What are the most important lessons learned consensus is that it is the best possible outcome from the MDGs? and an important set of instructions to end poverty and preserve the planet. As many have said, MM: A very important lesson is that we can rally the 2030 agenda and the SDGs that it enshrines the world around a set of issues important for are a great step forward, but the real work lies development. In addition, the consensus reached ahead of us. on the 2030 agenda outcome document will

OFID QUARTERLY OCTOBER 2015 15 SPECIAL FEATURE

provide momentum for negotiations on a new (ECOSOC) and specialized agencies will also binding climate change treaty to culminate at be engaged in reviewing progress in specific the Paris Conference of the Parties (COP) climate areas. change conference later this year. OQ: One of the biggest challenges in the implemen- OQ: Given that the SDGs, with 17 goals, address tation of the SDGs is financing. How significant an even broader agenda than the MDGs, what was the recent Financing for Development Confer- would you consider to be the minimum requirements ence in Addis Ababa, Ethiopia, in refining the for countries to implement these goals? “how” of the new agenda?

MM: The SDGs identify and aim to tackle sys- MM: As you rightly point out, financing is criti- temic barriers to sustainable development such cal, and one of the key factors that will define the as inequality, unsustainable consumption and successful implementation of the SDGs. The production patterns, inadequate infrastructure infrastructure agenda alone will need an invest- and lack of decent jobs. Member States stressed ment of US$1tr a year, an amount seven times that the desired transformations will require a that currently available in official development departure from “business as usual” and that assistance (ODA). This necessitates strong part- intensified international cooperation on many nerships and innovative thinking, including fronts will be required. This includes a revital- domestic resource mobilization, smarter and ized global partnership for sustainable develop- more targeted use of ODA, a better environment ment encompassing multi-stakeholder partner- for the private sector to be able and willing to ships. invest in development, and the strategic use of Agenda 2030 also calls for increased capac- remittances, among others. ity-building and better data and evidence for The conference held in Addis Ababa in July measuring sustainable development. The High was a significant development with regard to the Level Political Forum on sustainable develop- means of implementation of the 2030 agenda. ment, set up after the Rio+20 Conference, will The language used in Addis is reflected in the serve as the apex forum for follow up and review 2030 agenda document and is very much and will thus play a central role. The UN Gen- aligned. Addis was a key stepping stone on the eral Assembly, the Economic and Social Council global development path, giving important

16 OFID QUARTERLY OCTOBER 2015 SPECIAL FEATURE

OQ: Data alignment, including metrics, on various aspects of development is another crucial issue when it comes to the implementation of the SDGs. What is the World Bank doing to address this particular challenge?

MM: Global expertise combined with country-level engagement is core to the way the World

PHOTO: RAWPIXEL/SHUTTERSTOCK.COM PHOTO: Bank Group operates, allowing us to tackle the toughest development challenges. At the beginning of the process and in the initial engagement PHOTO: WORLD BANK of our institution with the UN and the development community, the World Bank identified three areas of focus and work: finance, data, and implementation. Finance, data and implementation encap- sulate huge challenges, but steps are underway on all three fronts. We are in good shape with our work on data—with our Memorandum of Understanding with other multilateral development banks (MDBs) and the UN, as well as ongoing work on the data revolution. On finance, the World Bank Group is a “The private sector is “leveraging machine,” able to help countries unlock domestic public resources and crowd-in an indispensable force private domestic and foreign capital to raise the for sustainable develop- trillions needed to finance vital development. ment—it sparks the positive momentum to help conclude a critical On implementation, the World Bank Group innovation, improves year for multilateral consensus on a global and is positioned to build on its experience and track the productivity and universal development agenda. record to help clients achieve the SDGs in accordance with national priorities and via smart economic efficiency, OQ: There is wide acknowledgement of the impor- partnerships that pull in the wider development and creates the jobs tance of engaging the private sector in the new community, including the other MDBs, civil and growth.” agenda. How would you define its role? society, and the private sector.

MM: The importance of involving the private OQ: As an institution that has been labeled sector in the development agenda to address the the “champion” of energy poverty eradication, SDGs cannot be emphasized enough. The private OFID is greatly encouraged by the inclusion of sector is an indispensable force for sustainable universal energy access in the SDGs (Goal 7). As an development—it sparks the innovation, im- insider to the process, how would you describe proves the productivity and economic efficiency, the general understanding among stakeholders of and creates the jobs and growth needed to end energy as a catalyst for the success of the wider extreme poverty and boost shared prosperity. agenda? There needs to be a paradigm shift in that the private sector should be actively sought out MM: The interlinkages between climate change to be equal partners in the implementation of and energy issues is particularly significant, and the SDGs. The private sector could create oppor- it has been underscored that without solutions tunities and platforms for efficient funding. to climate change and energy poverty there can Similarly, we need to think outside the box and be no irreversible poverty eradication. Participa- chart smart and non-traditional avenues for tory processes are required to assess what kind of funding, involving the private sector as a part- services the end-users truly find most useful. It ner. But leveraging the power of the private has been the opinion of many that providing sector means mitigating risks—it’s imperative access and increasing the amount of renewable to balance the need for sufficient risk/reward energy should be seen as issues supporting each rates with the need for affordable services for all. other; small-scale options of renewable energy That requires governments and the private sec- could be solutions for sustainable rural energy tor to work closely together. production and access.

OFID QUARTERLY OCTOBER 2015 17 PHOTO: : IFAD/GMB AKASH OFID in the Field

In full alignment with the SDGs, OFID’s strategic plan for the period 2016–2025 takes an integrated approach to development, focusing on the critical water-food-energy nexus. In terms of poverty eradication and sustainable development, these three areas represent the defining challenges of the coming decades. While OFID has almost 40 years’ experience in tackling these issues, it is now doing so in a way that carefully considers their interrelated nature. In the following pages, Damelys Delgado highlights a recently completed OFID project from each component of the nexus.

19 OFID IN THE FIELD

PHOTOS: OFID/LUISCELA MORENO Honduras: Promoting development through the wind

Access to modern energy, no matter its source, is essential for almost every aspect of human life, including the basic needs of light, heat and food preparation. In Honduras, a successful private initiative has transformed life for 100,000 households in rural Choluteca through the use of wind power.

he share of oil and gas in the global an estimated eight million people, the equiva- T energy supply is estimated by the lent to 20 percent of the total population, do not World Energy Council to be around have access to electricity, with Guatemala, Hon- 50 percent. While fossil fuels are expected to duras and Nicaragua experiencing the biggest maintain their dominance until 2035, renew- gap. The majority of these people live far from able technologies will assume a growing share, urban centers and viable electrical grids. Because supplementing the provision of electricity from expanding the grid over long distances is eco- traditional sources. nomically unfeasible, on-site generation is the The 2014 Report of REN21 (Renewable En- most affordable option, given the region’s ergy Policy Network for the 21st Century) esti- wealth in renewable resources. mates that renewable resources currently con- stitute 19 percent of global energy consumption. A success story Wind power, a prime renewable, is an important for 100,000 families component of the energy mix in a world where all sources of energy are needed to find a way of This article describes a successful case of renew- serving the 1.3 billion people living without able energy provision in Honduras, one of the access to electricity. least-developed countries in Latin America. Clearly, the most affected by lack of energy Honduras experiences persistent poverty, food are the poorest countries. In Central America, insecurity and socioeconomic inequality. Close

20 OFID QUARTERLY OCTOBER 2015 OFID IN THE FIELD

to half of the total population of 8 million peo- carbons, the highest expenditure in Central ple, live in rural areas. Seventy percent of the America. rural population lives in poverty and 60 percent The San Marcos Wind Farm was co-financed live under conditions of extreme poverty. by OFID through a loan to the private company When the San Marcos Wind Farm opened Vientos de Electrotecnia (VESA), a supplier of elec- in February 2015 in Choluteca, the southern- tric power through wind conversion. VESA is most and poorest department of Honduras, more responsible for the generation, as well as the than 100,000 households gained reliable access construction, operation and maintenance of the to modern energy services. The launch of 25 power plants. The installation was rated the turbines with a combined 50MW of installed “Renewable Infrastructure of the Year 2015” by capacity has contributed to the efforts of the the 13th Latin American Leadership Forum on Honduran government to diversify the energy Infrastructure. mix by increasing the share of renewables. VESA is owned by Grupo Terra, a large re- OFID’s Luiscela Moreno, who is in charge gional group with extensive experience in re- of the project, said: “The wind farm provides newable energy projects in five countries, devel- energy to families that did not have access to oping thermoelectric, hydroelectric, wind and electricity, 1,100 direct jobs were created, roads solar projects, for a total capacity estimated at were built, the zone was reforested, one school over 563MW. refurbished.” She continued: “When I visited the VESA sells its energy to the Empresa Nacio- project, I had the opportunity to talk with the nal de Energía Eléctrica (ENEE), under a 20-year team and see the quality of the wind farm. I felt power purchase agreement, begun on comple- proud and more committed to keep working on tion of the project. Twenty years is the minimum projects like this with strong developmental life for a turbine engine, depending on the impact and benefiting mainly the poor commu- quality of the operation and the maintenance nities.” regime, as well as the wind forces it experiences. The country’s current generating capacity ENEE is the state-owned power company respon- is around 1,700MW, but Honduras remains sible for the transmission and distribution net- heavily dependent on fossil fuels which provide work in Honduras. 58 percent of its energy supplies. The National After the inauguration of the San Marcos Plan proposes that, by 2022, 60 percent of do- Wind Farm at the beginning of 2015 and its mestic demand will be supplied by renewable evident success, VESA requested a second OFID resources. The Honduran Association of Renew- loan to expand the facilities to between 12MW able Energy Producers highlights that, in addi- and 13.2MW. Based on these plans for a future tion to low and stable rates contributing to na- increase in energy provision through wind tional competitiveness, renewables bring other power, the Quarterly will soon be pleased to re- benefits, such as reducing the fossil fuels bill and port additional alleviation of energy poverty in providing foreign exchange savings. Currently, Honduras, supported by the private sector and the country spends 13 percent of GDP on hydro- OFID.

OFID’s Luiscela Moreno (left center) at the San Marcos wind farm, which gave 100,000 poor households access to electricity when it opened in February 2015.

OFID QUARTERLY OCTOBER 2015 21 OFID IN THE FIELD

Philippines: Fostering rural productivity in the uplands

The International Fund for Agricultural Devel- opment (IFAD) details the complexities of pov- No matter the severity of the constant threats from erty and agriculture in the country, an archipelago consisting of 7,107 islands, with widely nature, the Philippines remains wholly committed varying degrees of rural poverty. “Among the to pursuing a vibrant agriculture sector. causes of rural poverty are a decline in the productivity and profitability of farming, smaller farm sizes and unsustainable practices that have led to deforestation and depleted fishing waters,” An additional constraint is that poor people have little access to productive assets and business etter land governance and increased opportunities, microfinancing services or afford- B investment in agricultural infrastruc- able credit. ture are critical for higher productiv- The challenges are immense and the gov- ity, job generation, and the reduction of poverty ernment’s prolonged land reform program has in many parts of the Philippines. created uncertainty in rural markets. According This was the statement delivered by Arsen- to Balisacan, the Philippines probably has the io Balisacan, Socioeconomic Planning Secretary world’s longest land reform program—40 years. and Director-General of the Philippines’ Nation- It is still an unfinished business. al Economic and Development Authority, at the Rice, maize and cassava are the main sub- spring 2015 meetings of the World Bank. sistence crops, while coconuts, sugar cane, ba- Mr Balisacan highlighted that increasing nanas and pineapples are grown for export. The agricultural production without providing ac- sector is constrained by several factors, includ- cess to urban centers where produce can be ing inadequate infrastructure and irrigation transported to markets, can be counterproduc- systems, as well as inferior distribution facilities. tive for farmers. “Connectivity is the key to getting the rural communities to participate in A positive mindset the growth process,” he stated. According to the World Bank, agriculture The government remains upbeat, however, and accounted for 11 percent of the Philippines’ GDP is pursuing a policy to boost productivity, global in 2014. However, a large part of the sector op- competitiveness and food security, while allevi- erates at subsistence levels and is vulnerable to ating poverty and empowering the rural poor. yearly weather changes. The country, which is Within this framework, irrigation and farm-to- the world’s largest archipelago, is prone to nat- market roads have the highest priority. ural disasters and frequently battered by tropical Jointly with IFAD, the Asian Development storms. One of the most recent, Typhoon Haiyan Bank, the government of the Philippines and in November 2013, was recorded as the deadliest local authorities, OFID has co-financed a project of modern times. in the Cordillera Highlands, a northern region Approximately six out of ten people in rural marked by severe poverty. Targeting poverty areas depend on agriculture for their livelihood. reduction and livelihood improvements among Of the country’s 93 million population, more indigenous communities, the project concen- than 30 percent is rural. trated on the Abra, Apayao, Benguet, Ifugao,

22 OFID QUARTERLY OCTOBER 2015 OFID IN THE FIELD PHOTO: IFAD/GMB AKASH IFAD/GMB PHOTO:

An indigenous woman works on her orange orchard in the Philippines’ Kalinga and Mountain provinces. Altogether it OFID’s Iman Alshammari, who is responsible for Mountain Province. benefited over 190,000 people. public sector operations in the Philippines, The project set out to increase farm income shared her thoughts about the project: “Before I She is just one of some through sustainable agricultural development started working for OFID, hard work to me meant 190,000 people to benefit and to enhance living standards through im- sitting in front of a screen for a few hours, reading from the wide-reaching proved land tenure and food security, in addi- and writing in the comfort of my well-lit office. activities of the OFID/ tion to watershed conservation. For these farmers, hard work means rising with To reach its goals, the project pursued social the sun and pushing to the limits of their phys- IFAD/Asian Development mobilization and land titling for the ancestral ical strength.” Bank project. domains of the indigenous people. The project She continued: “Through this project, we achieved the support of the community to pre- have helped many people fulfil their dream of serve watersheds, to implement a wide reforesta- sending their children to school or building a tion plan and to promote agroforestry through roof so that they can sell their produce when it’s farmers’ field schools. raining. It is always gratifying to see that our Other components of the project were the efforts big or small are paying off.” promotion of agribusiness and marketing, mi- It will be a long time before the Philippines crofinancing, income-generating activities and achieves full agricultural development. Every small rural enterprise development. It also in- step taken, however, is a step toward reducing cluded the rehabilitation of roads and irrigation poverty and securing a better quality of life for schemes, as well as the construction of commu- its people. nity facilities such as day-care centers, clinics and schools.

OFID QUARTERLY OCTOBER 2015 23 OFID IN THE FIELD

PHOTO: REUTERS/THIERRY GOUEGNON Solutions for a thirsty and crowded Abidjan

As Côte d’Ivoire continues to pick up the pieces after years of political and civil unrest, for millions of citizens the word “water” has come to represent not only a survival issue, but the hope of building a sustainable future.

n the developed world, access to water the capital Abidjan. Inadequate at the best of I and sanitation systems is taken for times, the water supply system was ill prepared granted. In the developing countries, to accommodate an explosive and disorderly however, almost 900 million people have no population increase. access to safe drinking water and 2.5 billion lack basic sanitation services. During times of con- Struggling to move on flict, conditions deteriorate. The first civil war in Côte d’Ivoire began in The civil war disrupted the economic, social and 2002 and lasted about five years. This led to the political fabric of Côte d’Ivoire. According to the displacement of more than a hundred thousand World Bank, the level of poverty increased from people to neighboring countries, such as Liberia 35 percent in 1998 to about 50 percent ten years and Ghana. However, the most significant hu- later. man displacement occurred internally. When A second civil war in 2011 disrupted the the conflict ended, an estimated 1.5 million country’s path toward achieving the MDGs and people were forcibly settled in the outskirts of further endangered access to basic social services.

24 OFID QUARTERLY OCTOBER 2015 OFID IN THE FIELD

A bird’s eye view of Abidjan, where an OFID When the Ivoirians were again able to begin a with pumps, the construction of a water treat- project has extended reconstruction process, significant efforts were ment plant and an extension of the water supply water supply and sanita- undertaken to restore access, especially to water. network to include 75 standpipes and 2,000 tion services to thousands Water supply and sanitation have been private connections. The new facilities were prioritized in several of Côte d’Ivoire’s national inaugurated in December 2014. of families living in development plans. The country boasts a dense Women and children, who had previously informal settlements. hydrological network, and the World Health carried the burden of fetching water, have ben- Organization estimates that 80 percent of the efited most from the improvements. People are population enjoys sustainable access to im- also saving money, as they no longer have to pay proved drinking water sources. However, the the high prices demanded by water resellers. The same source states that just 24 percent of project has also reduced the risks associated with the population has access to proper sanitation the use of unsafe water sources and the inade- facilities. quate sewerage system. The direct impact on the people’s health was immediate. Reinforcement of Abidjan’s Asked about the project, Mona Alessa, OFID water supply system country officer for Côte d’Ivoire said: “I can’t describe how happy and excited I am that this At the end of the first civil war, 40 percent of the project is finally completed and the water treat- inhabitants of Abidjan—a highly industrialized ment plant operating. Children can now go to city with over 4.5 million inhabitants—were school and get an education instead of walking without a sustainable water supply. Rectifying long distances to fetch water, and women can this became a national emergency. work and earn an income and so improve living In April 2007, OFID received a formal re- standards for their families.” quest from the government for financial assis- With the support of the international com- tance and joined with the Islamic Development munity, Abidjan is today able to meet the water Bank to co-finance a project to provide safe and sanitation needs of its citizens. OFID’s share water and sanitation services to Abidjan, in par- has helped a crowded community achieve a ticular to the huge number of displaced people better quality of life. Without adequate water living in informal settlements. supply and sanitation systems, such an improve- The project consisted predominantly of ment would be impossible. civil works covering the installation of boreholes

OFID QUARTERLY OCTOBER 2015 25 NEWSROUND

OFID and St Lucia resume cooperation

After a gap of over twenty years, OFID and St Lucia are back in harness and working to bring a much-needed boost to the Caribbean island’s road sector. by Arya Gunawan Usis

he new project forms part of a priority The region in question holds around 55 percent T program to improve transport links of the island’s population and is a popular des- between St Lucia’s capital Castries and tination for rural and urban migration. As such, the town of Gros Islet in the northwest corner of its development is highly dependent on an effi- the island. Its ultimate aim is to open up trade cient road network. and other economic opportunities and bring As well as facilitating the distribution and direct benefits to the area’s 100,000 residents. marketing of industrial and agricultural prod- Specifically, the project will upgrade ucts, the improved and widened roads will also around 7km of main road to a four-lane dual have a positive impact on the tourism sector. carriageway with seven roundabout junctions St Lucia’s Prime Minister, Dr Kenny Antho- and bridges for pedestrian safety. Due for com- ny, signed the loan agreement with OFID Direc- pletion by the end of 2018, it will also improve tor-General, Suleiman J Al-Herbish, at OFID some 20km of secondary roads. Headquarters on June 29. OFID is sharing the

The new dual carriageway has reduced congestion and travel time and improved safety conditions for all road users. PHOTO: BENJAMIN HOWELL/ALAMY STOCK PHOTO

26 OFID QUARTERLY OCTOBER 2015 NEWSROUND

Prime Minister Dr Anthony (left) and Director-General Mr Al-Herbish initial the agreement, which marks a new phase in the partnership between St Lucia and OFID. cost of the project with the Kuwait Fund and the St Lucia, with a high flow of traffic and hazard- Government of St Lucia. ous curves. “This safety issue was an important Dr Anthony, who is also Minister of Fi- factor that we took into consideration when nance, Economic Affairs, Planning and Social assessing this project,” Senussi added. Security, has personally welcomed the project. Describing it as very valuable to citizens and the A good relationship corporate sector, he believes that it will improve moving forward the speed and efficiency of freight transfers, enable customer access, and increase workforce OFID’s early cooperation with St Lucia in- productivity. volved loans for projects covering the education, Speaking in the media, Dr Anthony ex- water supply and sanitation and transport sec- plained that the road network improvement and tors. All of these were successfully implemented expansion would help alleviate problems that and completed. have been mounting for decades, and which According to Senussi, the long break in re- have come to a head in the present day. lations was due to shifting priorities on OFID’s “Today, we are witnessing traffic volumes in part. Resuming cooperation had been a chal- excess of 24,000 vehicles per day, which in itself lenge but, after working closely with the govern- suggests that even an upgrade to four lanes will ment, a very good relationship had been estab- not provide completely free-flowing traffic con- lished with the country, she indicated. ditions. This investment, however, will reduce Already, the government has shown an the perennial crawling traffic and improve travel interest in submitting two new projects to OFID times considerably for commuters using this for consideration: another road project and one route,” he told Barbados’ Nation News newspaper. involving the rehabilitation of the old city of OFID’s interest in the project was sparked, Castries. in part, by the inherent benefits for the educa- “We welcome these new requests and will tion sector. Arij Senussi, who is responsible for consider them for funding. We are also looking OFID’s public sector operations in St Lucia, ex- at other ways to expand OFID’s presence in the plained: “Children in the project area face major country, including through activities that could constraints in reaching school. In many cases, be considered by our private sector team,” said students drop out of secondary school because Senussi. of the high cost of travel,” she said. But the main disincentive is the treacher- Read the full interview with St Lucian Prime ous road, which is one of the most dangerous in Minister Dr Kenny Anthony on page 42.

OFID QUARTERLY OCTOBER 2015 27 NEWSROUND

OFID and Madagascar continue longstanding partnership

With a relationship stretching back almost four “Madagascar has just overcome a crisis and there are a number of priority programs and projects decades and a milestone thirtieth loan secured in July, that need to be launched, primarily in the agri- Madagascar is looking forward to continued support cultural and energy sectors,” Rakotoarimanana said, referring to the freshly secured funding. from OFID as it addresses priority sectors in its national development strategy. An uphill struggle By Alesandra Solano The challenges remain daunting for a country classified by the World Bank as one of the world’s poorest. In its national development program, n June, OFID and Madagascar signed launched in 2014, the Malagasy government has I two new loan agreements—represent- pledged to “fight against poverty through inclu- ing the 30th and 31st approved oper- sive growth.” OFID’s latest round of financing— ations—in a fruitful partnership that has con- for a hydro-agriculture project and an energy tributed over many years to economic growth project—will support this vision. and poverty alleviation in the African island With per capita energy consumption nation. among the lowest in the world, Madagascar’s The agreements were signed at OFID head- energy sector faces significant challenges. Only quarters in Vienna by the Malagasy Minister of about 20 percent of the population has access to Finance and Budget, François Gervais Rakotoari- electricity, while the remainder relies primarily manana, and OFID Director General, Suleiman on biomass, mainly in the form of firewood. J Al-Herbish. Speaking at the ceremony, the Rakotoarimanana told the Quarterly that Minister described his country’s cooperation his government had already taken short-term with OFID as exemplary and praised the insti- measures to tackle the energy problem, but that tution’s long-term support. it would need the support of technical and

28 OFID QUARTERLY OCTOBER 2015 NEWSROUND

Despite its importance, rice production is beset with difficulties, largely due to the sub-sector’s inability to adapt to climate change. Previously self-sufficient, the country has been a net- importer of rice since 1980. The OFID-supported project focuses on the

PHOTO: IFAD/HORST PHOTO: WAGNER Melaky region, where farmers are especially vulnerable. The area enjoys plentiful fertile land, but this remains largely unexploited due primarily to the lack of water. As a result, poverty levels are extremely high, as is food and nutrition insecurity. The project involves the construction of a diversion dam on the Beboka River along with an irrigation scheme over some 1,600 ha of pad- dy fields. Also envisaged is support to farmers to help them sustainably manage both the land and water resources. The anticipated increase in production is expected to translate into a 70 percent boost to household incomes. With some 1,500 households representing roughly 8,000 people standing to benefit from the new infrastructure, the project represents an opportunity to break and reverse the long- term vicious cycle of poverty in the area.

financial partners. “It is of crucial importance for Madagascar to find suitable energy solutions; as we often say, we cannot create jobs in dark- ness,” he emphasized. OFID’s contribution to the sector is a US$15m loan toward a project that aims to improve the accessibility and reliability of electricity services. The project will foster the development of productive activities, while contributing to job creation and inclusive growth, ultimately benefiting around two million people.

Harnessing agricultural potential

The second of the two loans just signed is for a hydro-agricultural project in northwestern Mad- agascar, which seeks to contribute to rural poverty alleviation and boost food security. Agriculture accounts for roughly 30 percent of the country’s GDP, and the vast majority of households rely on an income derived from farming in some shape or form. The dominant food crop is rice, which is grown in the central plateau, eastern forests and lower river valleys and estuaries. Malagasy Minister of Finance and Budget François Gervais Rakotoarimanana (left) and OFID Director-General Suleiman J Al-Herbish conclude the agreements.

OFID QUARTERLY OCTOBER 2015 29 NEWSROUND PHOTO: LUKAS GOJDA/SHUTTERSTOCK.COM PHOTO:

Road agreements pave the way for economic opportunity in Sri Lanka

With the provision of new ﬁ nancing totaling his summer, OFID committed a total T of US$77m in two separate loans to Sri US$77m, OFID is staunchly behind Sri Lanka’s Lanka for projects involving the rehabilitation of important road infrastructure. The efforts to prioritize investment in infrastructure new agreements represent the latest in a raft of and boost the country’s transition to a modern funding approved by OFID over the past three years to support development of the country’s middle-income nation. transportation sector. by Fatma Elshhati The agreements were signed at OFID’s of- fices in Vienna by Ravi Karunanayake, Sri Lan- ka’s newly appointed finance minister, and OFID Director-General Suleiman Al-Herbish. “Transportation is a key investment area in our country,” Karunanayake stated, explaining that many of the roads and highways had not kept abreast of the demand triggered by Sri Lan- ka’s rapid economic growth. With one of the fastest expanding econo- mies in South East Asia, Sri Lanka has been a

30 OFID QUARTERLY OCTOBER 2015 NEWSROUND

model in the region, meeting nearly all the set potential,” he added, disclosing that by mobi- targets of the Millennium Development Goals, lizing donor assistance the government plans to which expire this year. Yet it has struggled to spend around US$1.5–2bn a year to complete its keep its infrastructure development up to pace, ambitious development plan. largely due to the years of civil conflict and With the post-2015 Sustainable Develop- military rule, which came to an end in 2009. ment Goals in place, Sri Lanka is gearing up for The new government, elected in early 2015 the path ahead, in particular for addressing Goal has embarked on an ambitious pro-poor devel- 9: Building quality, reliable and sustainable in- “If we want to lower the opment plan, which includes boosting industry frastructure. cost of our exports and and trade in the next five years by improving transportation routes between provinces. make them competitive, Delivering economic we need to prioritize the Industrial and agricultural exports are the and social benefits mainstay of the country’s economy, but the development of our inadequate transport infrastructure makes the The two OFID-sponsored projects have been transport network.” movement of goods both time-consuming and identified as critical to the country’s develop- expensive. ment. RAVI KARUNANAYAKE “If we want to lower the cost of our exports The rehabilitation of the A05 road corridor, and make them competitive, we need to priori- which OFID is co-financing to the tune of tize the development of our transport network,” US$60m, will upgrade and widen 151.3km of Karunanayake told the Quarterly. road that forms part of a major highway travers- In this context, the road sub-sector is key, ing the Central, Uva and Eastern provinces. accounting for all but a fraction of freight land Together, these high-poverty areas are home to transport. Although the network is dense and some three million people. well laid out, most roads were built more than The second project—supported with a 60 years ago. Maintenance, rehabilitation and US$17m loan—will upgrade 27km of roads in the new construction have not kept up with the Western province, one of the country’s most increased volumes of traffic, which now exceed populated regions. the design capacity of many roads. In terms of economic benefits, the upgrad- With the help of external donors, the gov- ed roads will stimulate manufacturing, mining, ernment hopes to advance the reform and de- tourism, agriculture and trade by lowering the velopment of the transport sector. “We are cost of goods and encouraging the production trying to maximize the limited resources that of higher-value consumables. By improving are coming from friends such as OFID,” connectivity for the country’s rural population, Karunanayake told the Quarterly. the two projects also promise extensive social “We aim to ensure that these infrastructur- benefits. al developments are used to the best of their

Sri Lankan Finance Minister Ravi Karunanayake (left) and OFID Director-General Suleiman Al-Herbish exchange remarks at the signature ceremony.

OFID QUARTERLY OCTOBER 2015 31 NEWSROUND

Nicaraguan Minister of Finance, Iván Acosta Montalván, met OFID Director-General Al-Herbish in his office to discuss his country’s development challenges and future cooperation with OFID.

OFID promises support to Nicaragua’s SDG aspirations

As Nicaragua prepares to embrace the SDGs, OFID has reiterated its commitment to the country, one of its most active partners in the Latin American and Caribbean region.

by Alesandra Solano

he pledge was made in a meeting at investments along the way which have made an T OFID headquarters in September be- impact on the growth of Nicaragua’s economy,” tween the Nicaraguan Minister of Fi- he said. nance and Public Credit, Iván Acosta Montalván, Nicaragua and OFID have been partners and OFID Director General, Suleiman J Al-Herbish. since 1979, with cooperation extending to the The Minister’s visit was a courtesy call in public sector, the private sector and trade, as well follow-up to the mission the Director-General as a large number of community level grant-fi- headed to Nicaragua in October 2014. nanced activities. Reiterating OFID’s support to the Central American nation, Mr Al-Herbish said that the Embracing the SDGs institution stood ready to streamline its cooperation with the government’s development Having successfully reduced its child and mater- priorities. nal mortality rates—ahead of the 2015 MDG The Minister described his country’s rela- deadline—and made progress in reducing mal- tionship with OFID as exceptional and ascribed nutrition, Nicaragua is preparing to embrace the its endurance to both partners being aligned upcoming SDGs. towards the same goal: the fight against poverty. However, the country faces many challeng- “Our relationship has been very important es. Acosta Montalván divides these into three since the beginning and continues to grow main areas: “First, we need to build an econom- stronger by the day. We have had important ic structure that brings competiveness to the

32 OFID QUARTERLY OCTOBER 2015 NEWSROUND country. We would then need to strengthen Ongoing Projects education within our population. And then we need to be open to more projects that will posi- OFID has three ongoing public sector operations tion the country in the global economy map,” in Nicaragua, one in the energy sector and two he said. in the transportation sector. The Minister pointed to education as one In the energy sector, OFID is co-financing of the most critical factors in promoting social the National Program for Sustainable and Re- and economic inclusion. “Our people are our newable Energy, which aims to increase access most important agents in generating employ- to electricity from 65 percent to 85 percent. ment and boosting productive capacities and so During his mission to Nicaragua last year, the contributing to our country’s economic devel- Director-General received an extensive briefing opment,” he stated. on the project’s implementation and positive Acosta Montalván went on explain that impact. Since that time, OFID has continued to Nicaragua wanted to open its doors to projects receiving encouraging feedback about the proj- that would transform the country and position ect’s progress. it on the global economy map. “We’re looking In the transport sector, OFID is co-financ- to boost economic growth by building a ing two rural roads in remote areas. The popu- long-lasting economic investment,” he said, lation is already benefitting from the projects as With its strategic referring to his country’s aspirations. both the labor and the cobblestone required to location on the Central One area of strong economic advantage, said build the roads is being sourced locally. Both American isthmus, the Minister, was Nicaragua’s experience in ex- projects are using a community-based imple- Nicaragua has ambitious porting raw materials. In the long run, he dis- mentation system that promotes a sense of en- closed, the country would like to become a world trepreneurship, belonging and the necessary plans to establish itself class logistics hub and set itself up as one of the technical know-how to ensure the projects’ as a world class most competitive countries in Latin America. long-term sustainability. logistics hub. PHOTO: HXDBZXY/SHUTTERSTOCK.COM PHOTO:

OFID QUARTERLY OCTOBER 2015 33 July–September 2015

30,000 people in Trinidad city JULY 22 SEPTEMBER 3 SEPTEMBER 15 and neighboring townships, thereby helping enhance Emergency aid grants Public sector loan 152nd Session of the health indicators and living approved agreement signed Governing Board conditions. Islamic Relief Switzerland Armenia. US$25m. Malawi. US$14.85m. (US$100,000) and Infrastructure and Rural Public Sector loans CARE Austria (US$150,000). Financial Support Program. To approved Integrated Urban Water and To support Islamic Relief reduce rural poverty by Sanitation Project for Mzimba China. US$15m. Switzerland‘s food assistance installing small and medium Town. To help raise health and operation in Aleppo and CARE‘s scale irrigation systems, Sichuan Healthcare. To improve living standards, as well as water, sanitation and hygiene providing household water the quality of healthcare deliv- improve livelihoods among services provision program to supplies, and setting up a rural ery by constructing a 13-story some 100,000 people by displaced communities in Idleb fi nance facility for smallholders inpatient building for a hospital rehabilitating and expanding governorate, Syria. and rural entrepreneurs. in Ziyang City. The new facility water supply infrastructure. will boost annual outpatient capacity to over half a million and Rwanda. US$15m. AUGUST 4 SEPTEMBER 8 accommodate around 35,000 Nyagatare-Byumba-Base Road. inpatients per year. To upgrade a 73km stretch of road that passes through key Private sector loan Emergency aid grant Cuba. US$25m. agricultural areas. Around 1.2 agreements signed approved Trinidad Water Supply and million people in the Northern Trade and Development Bank International Humanitarian Sanitation System Moderniza- and Eastern provinces are ex- of Mongolia. US$25m. Relief. US$20,000. To provide tion. To improve access to safe pected to benefi t from improved To help enhance the bank’s essential clothing items for drinking water and provide trade opportunities and access capacity in supporting local Syrian refugees in Austria. basic sanitation services for over to markets and social services. corporates and, in particular, SMEs with their foreign trade fi nance requirements.

ACLEDA Bank PLC. US$15m. The term loan will assist the bank in its lending operations to MSMEs in support of Cambodia’s socioeconomic development.

AUGUST 25

Grant agreement signed United Nations Industrial Development Organization. US$300,000. To improve productivity and competitiveness of ﬁ sheries value chains in the Latin America and Caribbe- an region with a focus on shrimp farming. Beneﬁ ciary countries include Colombia, Cuba, Dominican Republic and On July 22, Mr Al-Herbish received in his office Dr Ali Taieb Nia, Minister of Finance and Economic Affairs of Iran (center) Nicaragua. and Dr Mohammad Khazaee, Iranian Governor to OFID.

34 OFID QUARTERLY OCTOBER 2015 OFID DIARY

Grants approved Burkina Faso, Mali and Senegal. German Cooperation for Around 32,000 people will Meetings attended by OFID International Cooperation directly benefi t from the (GIZ). US$350,000. This grant initiative, which promotes the will cover the provision of use of the age-old “N ubian JULY 13–16 SEPTEMBER 3 OFID/GIZ scholarships to 10 Vault” construction technique young professionals from that uses earth bricks and ADDIS ABABA, ETHIOPIA VIENNA, AUSTRIA developing countries in the mortar. Third Financing for Austrian Federal Economic areas of renewable energy and United Nations Development Development Conference Chamber energy effi ciency. Program/Program of Assis- Forum on “Business and International Humana tance to the Palestinian Development” People to People Movement. People. US$400,000. AUG 30–SEP 1 US$500,000. This grant will To support early recovery efforts ALPBACH, AUSTRIA co-fund a project that will boost in Gaza through the creation of SEPTEMBER 10–11 access to quality education in employment opportunities for European Forum Alpbach BERLIN, GERMANY under-served rural populations young professionals. This will in DR Congo, Guinea-Bissau, be done by supporting short Meeting of senior offi cials Malawi and Mozambique by to medium term employment SEPTEMBER 1 of the Deauville Partnership opportunities for some 300 implementing a teachers’ train- VIENNA, AUSTRIA and “Promoting Job people, targeting skilled workers, ing program. Around 15,000 Creation in the MENA primary school children/year new graduates, persons with Austrian Development Region” conference are expected to directly benefi t disabilities and women. Agency High-Level Discus- from the scheme. sion: “Smart Development Instituto per la Cooperazione SEPTEMBER 22 Goals—How to Make Sense SEPTEMBER 14–24 Universitaria Onlus. of the SDGs” OXFORD, UK US$500,000. To enhance access Public sector loan 37th Oxford Energy Seminar to modern energy services in agreement signed four rural areas of Burundi by SEPTEMBER 3–4 rehabilitating four power plants Nepal. US$20m. and strengthening the capacity Small Towns Water Supply & MEXICO CITY, MEXICO SEPTEMBER 16–18 of the country’s rural electrifi - Sanitation Sector Project (Phase 8th Steering Committee BARCELONA, SPAIN III). To enhance water supply cation agency. As a result, nearly Meeting of the Global 3rd Congress of UN Habitat’s 46,000 people will enjoy better and sanitation services in a Partnership for Effective living standards and incomes. selected number of small towns Global Water Operators’ through the provision of water Development Cooperation Partnership Alliance Nubian Vault Association. supply networks, sanitation US$350,000. This grant will facilities and wastewater support a program aimed at treatment schemes, alongside enhancing access to affordable institution strengthening and www.ofid.org and sustainable housing in regulatory and policy support.

Ayesha Riyaza, Ambassador of Pakistan to Austria, visited Mr Al-Herbish receives Marion Paradas, Ambassador and Permanent Representative of France Mr Al-Herbish to discuss ongoing cooperation. to the UN and the International Organizations in Vienna.

OFID QUARTERLY OCTOBER 2015 35 OFID DIARY

152nd Session of the Governing Board

Meeting in its 152nd Session in Vienna on September 15, the Governing Board approved US$142m in new financing for development operations in over 20 partner countries. Of this total, US$70m was provided in public sector lending for projects in China (healthcare), Cuba and Malawi (water supply & sanitation) and Rwanda (roads). Two facilities, including a maiden equity participation in the healthcare sector, were approved through the private sector window; while US$25m was committed to support international trade finance activities in Turkey and Guatemala, the latter being a new country to OFID’s trade portfolio. Fresh grant funding of US$2.1m will help finance local capacity building and small-scale development schemes in a number of countries, including Palestine. Further details of pubic sector and grant approvals can be found in the Diary. Governing Board Chairman Abdulwahab A Al-Bader of Kuwait

36 OFID QUARTERLY OCTOBER 2015 OFID DIARY

Aisha S Omar Ad hoc Alternate Governor, Nigeria

Wilson Marcelo Pastor Morris Governor, Ecuador

Majed Ali Omran Governor, United Arab Emirates Dr Mohammad Khazaee Governor, Iran

OFID QUARTERLY OCTOBER 2015 37 OFID DIARY

LOAN & GRANT SIGNATURE

Bolivia receives US$70m for road construction Bolivian Chargé d’Affaires Ricardo Martinez signed the agreement for a highway construction project that will open up rural areas and connect important urban centers.

US$50m for water supply and waste management in Maldives Mr Al-Herbish and Abdulla Jihad, Minister of Finance and Treasury of the Maldives, sign the agreement for a project to construct water supply systems and solid waste management facilities in the archipelago.

38 OFID QUARTERLY OCTOBER 2015 OFID DIARY

The full list of loan and grant signatures can be found on pages 34-35.

US$300,000 grant for UNRoD activities in Palestine Vlademir Goryayev, Executive Director of UNRoD welcomed OFID’s continued support to his organization, which is mandated to protect the legal rights of Palestinians affected by the separation wall. Armenia receives US$25m for rural development Armenian Finance Minister Gagik Khachatryan concluded the agreement for a project to promote living standards and income generation by improving rural water supply and irrigation services.

US$300,000 to support shrimp farming in Latin America UNIDO Director-General Li Yong and OFID Director-General Al-Herbish conclude the grant agreement, which will help boost the productivity and competitiveness of the shrimp value chain in Colombia, Cuba, Dominican Republic and Nicaragua.

OFID QUARTERLY OCTOBER 2015 39 SPOTLIGHT PHOTO: PRESSMASTER/SHUTTERSTOCK.COM PHOTO:

New Corporate Plan looks to the future

Featuring four mutually reinforcing objectives, OFID’s recently approved strategic plan represents a comprehensive framework to guide the institution through the challenging decade ahead.

by Faris Hasan and Geoffrey Skipper

hen the first 10-year Corporate nexus approach, which makes a direct and borrowers to obtain affordable trade fi- W Plan was launched in 2006, it significant difference in living standards nance. was OFID’s initial attempt at a in many poor countries. The plan includes While the plan identified these op- structured approach to long-term planning transportation as a fourth component to portunities, it also examined OFID’s supported by financial analysis. The new the nexus, recognizing the importance strengths and achievements. The last de- OFID Corporate Plan 2016-2025, approved adequate roads and ports play in the effort cade saw OFID notch up numerous at the 36th Session of the Ministerial Coun- to increase food security and farmers’ in- achievements, including an annual 15 cil on July 21, builds on the achievements comes. Nexus-related investment lowers percent growth in operations, extended and lessons of the original, while laying out costs, improves access to power and mar- cooperation with other development fi- an ambitious and concrete roadmap for the kets, and facilitates further development nance institutions and cooperation agree- critical upcoming decade of development. of the industrial and service sectors. ments with 10 partner institutions. Among As evidenced by the recent approval Strengthening the nexus plays an essen- the lessons learned from the previous plan of the United Nation’s Sustainable Devel- tial role in achieving nearly all of the SDGs. were the need for adaptability to deal with opment Goals (SDGs), the next 10 years The lack of financing available to changing environments, the need to grow will be especially important in the fight to private companies presents another op- sustainably, the importance of value add- eradicate extreme poverty. The new Cor- portunity. By providing funds to small ed and of investing in well-trained and porate Plan defines itself by placing an and medium-sized enterprises (SMEs) and motivated human resources, and the use- emphasis on the integrated “nexus” ap- microfinance via lending to domestic fulness of widening the network of OFID’s proach to provide access to modern energy, banks, OFID will support the primary relationships. clean water and adequate nutrition, a fo- drivers of employment in the developing The Corporate Plan’s analytical ap- cus that was welcomed by the ministers. world. Direct corporate loans allow larger proach to these issues has been distilled to One of the coming decade’s many companies to expand operations, while four objectives: optimal resources deploy- opportunities lies in strengthening this guarantees increase the ability of local ment, financial stability, development

40 OFID QUARTERLY OCTOBER 2015 SPOTLIGHT

effectiveness, and enhanced visibility for the second objective of ensuring financial take. Close engagement with all stages of the organization. As the heart of the Plan, stability was crafted to takes this into ac- a project and benchmarking performance each of these objectives feeds into and count. As a safeguard against any future are also important in boosting effective- strengthens the others. financial slowdown, the Corporate Plan ness. As operations grow and expand, 2016-2025 now includes multiple scenari- enhancing professional training and de- Focus on the four objectives os including a prudent financial case as veloping junior members of staff is anoth- well as scenarios for both weak economy er key component of this objective. This The first objective deals with the deploy- and proactive lending situations. will be in line with OFID’s active support ment of optimal resources. To fulfil OFID’s “In many ways, OFID has moved up of the Global Partnership for Effective poverty eradication mandate, public sector, the learning curve since the last crisis,” Development Cooperation private sector, trade finance and grant said OFID Director-General Suleiman J The fourth and final objective in- operations will all expand. If normal eco- Al-Herbish, as he introduced the new Plan volves enhancing OFID’s visibility to nomic conditions prevail, OFID’s resourc- to the Ministerial Council. strengthen engagement with the organi- es will grow by 50 percent to over US$10bn Financial stability will permit con- zation’s stakeholders as well as co-finan- by 2025. The allocation of these resources tinued growth by implementing risk con- ciers. This importantly enhances the will continually adapt to meet the needs of trols to keep OFID’s assets liquid and by Fund’s credibility by demonstrating suc- OFID’s partner countries. Both private maintaining sustainable growth through cess stories from the “on the ground” ac- sector and trade finance lending will grow returns from operations and investments. tivities. Greater visibility also increases at a faster rate than that of the public sector Preparations are also underway that would the likelihood of attracting more co-finan- to cover support for SMEs as well as manu- allow OFID to borrow funds if additional ciers. This step is especially important as facturing and trading companies. resources are needed. OFID consolidates its role as a develop- The global financial crisis had a sig- The selection and approval of good ment and financial institution. nificant impact on sustainable develop- projects forms the basis of the third objec- ment in the past decade. The worldwide tive: promoting effectiveness. OFID’s well- economic downturn prevented the full known record of performance in the Finding a balance implementation of the previous plan and transportation sector and its recent, grow- made OFID’s mission to eradicate poverty ing credibility in the energy sector are Striking a balance between the four objec- all the more difficult to achieve. Therefore, examples of the shape this objective can tives is critical to the success of the new Plan. Putting too much emphasis on expanding operations, for example, might OFID’s Corporate Plan comprises come at the expense of financial stability. four interdependent objectives Similarly, a focus purely on maintaining stability might reduce the opportunities for visibility and the selection of effective projects. How successfully these objectives are reached, is set by performance evaluations and key performance indicators for each department. The KPIs provide a gauge to measure progress and allow all employees to remain on track toward achieving the objectives. Having an effective way to monitor performance ensures that the goals of the Corporate Plan will be realized in the most efficient way. Through the joint work between the Management and the Governing Board, the Corporate Plan 2016-2025 builds on OFID’s nearly 40-year legacy and puts the organization’s resources and experience to the best use. As with any machine, the key to success is the proper functioning of each of its parts. By providing a list of KPIs and a mechanism to measure how they are met, the plan lays out a roadmap for a meaningful impact in the eradication of Source: OFID, CPES Unit poverty in the poorest countries.

OFID QUARTERLY OCTOBER 2015 41 PERSPECTIVES

St Lucia: Small island, big dreams

As a small island developing state, St Lucia faces a unique set of challenges. Here, Prime Minister Dr Kenny Anthony, talks to the Quarterly about managing the shift to a tourism-based economy and OFID’s role in supporting his country’s development.

Interview by Arya Gunawan Usis

that we have all experienced in the last few years. Thirdly, there is the broader issue of infrastructure and creating a platform for further investment. Investment and infrastructure walk hand- in-hand. If investors see that you have modern infrastructure, capable of coping with the volume of traffic and allowing easy movement from one place to another, then they are more likely to see investment opportunities. We are also working to improve our health infrastructure and have constructed two modern hospitals. So we are in a period of transformation, a period of adjustment.

OQ: Is there any plan to revitalize the agricultural sector? Dr Kenny Anthony, Prime Minister and Minister of Finance of St Lucia KA: We are making adjustments. It has been difficult, because our farmers have abandoned OQ: What are the key development challenges the banana industry, because of the collapse of confronting St Lucia and how are you addressing the sector. So we’ve had to reduce the banana them? industry to the most efficient farmers. We are trying to encourage young people to return to KA: We’ve been forced to convert our economy agriculture. We have a university agriculture to one based on tourism. We are a tourism- program that has brought several hundred young dependent economy now. Some fourteen percent people into the sector. And there is land avail- of our GDP is derived from tourism-related ser- able. The whole idea now is to redesign agricul- vices. This shift happened very quickly, largely ture, ensure that we convince our farmers and because of the collapse of the agriculture sector. our young people to handle agriculture as a We lost our strength in the banana industry; it business. That is what they have been lacking. virtually collapsed right before our eyes. So we’ve The people need to appreciate and understand had to manage the transition from an agricul- that you cannot have agriculture in the tradition- ture-based to a service economy. Another major al way. Essentially, it is a business. We need to challenge is unemployment, which currently explore linkages between the agriculture sector stands at around 23 percent. This, of course, is a and tourism. With the redesign of the agricul- direct consequence of the economic meltdown tural sector—where we produce essentially for

42 OFID QUARTERLY OCTOBER 2015 PERSPECTIVES PHOTO: ATGIMAGES/SHUTTERSTOCK.COM PHOTO:

the tourism sector—we can reduce all food im- activity: the capital Castries and the tourism ports and become more self-sustainable. sector in the North, where most of the hotels are located. Some 27,000 people use the road on a OQ: It has been reported that the tourism sector daily basis, so there’s massive congestion. What recorded a six percent increase in the first five this project will do is to make the movement of months of this year. What policies are you imple- traffic much easier, reduce travel time and—sure- menting to maintain this growth? ly—increase productivity. It will also provide the crucial tourism sector with badly-needed infra- KA: We have a range of policies. First, aggressive structure and at the same time allow us to in- marketing. Tourism cannot survive without mar- crease investment in the sector. There are other “If investors see that you keting. We have to continue to attract visitors benefits to be derived as well: the project will have modern infrastruc- from our traditional markets and also explore offer significant employment opportunities for ture, capable of coping new markets. Tourism becomes boring very the people of Saint Lucia, who are very anxious with the volume of traffic quickly, because you are competing not only to get to work. against your neighbors but the entire world com- and allowing easy move- munity. Therefore, you need to constantly im- OQ: How do you see the relationship between St ment from one place to prove your product, upgrade it, change it. So, Lucia and OFID moving forward? another, then they are whoever comes to St Lucia, they feel that there more likely to see invest- is a different kind of experience. And, of course, KA: We are pleased to have renewed our relation- ment opportunities.” what matters fundamentally in tourism is not ship with OFID, which has handled my small just the beauty of the island, or the quality of the state with the utmost civility, respect and sensi- hotels; it is really about the people who manage tivity. It may seem a simple point to make, but it the industry. So we are investing a lot in training is important to us. We are a small country with our people so that they can be very responsive. just 180,000 people. And for all practical purpos- There is a lot to be done, but marketing remains es, we are insignificant in the world community. the key. And the marketing has to be very strate- We are grateful that OFID could reach out to us gic to make visitors appreciate the uniqueness of and work with us to make this project a reality. the island. It is an important statement of the major friend- ship that we have. It is exceedingly difficult for OQ: You have just signed an agreement with OFID the smallest states like ours to get funding from for a road project. How will this project contribute multilateral sources, so it is to OFID’s credit that to the socioeconomic development of your country? it is willing to extend support to us. I am pretty certain that we are going to be approaching OFID KA: This project seeks to rehabilitate a very sig- with other projects in the near future. There is nificant section of the road network in St Lucia, great potential for us to strengthen our relation- which links the two key centres of economic ship.

OFID QUARTERLY OCTOBER 2015 43 CONFERENCE WATCH

Event: Third International Conference on Financing for Development (FfD) Theme: Time for global action Hosted by: Government of Ethiopia United Nations Department of Economic and Social Affairs Venue: Addis Ababa, Ethiopia Date: July 13–16 2015

by Said Aissi Addis Ababa summit agrees financing framework for post-2015 agenda

With more than 100 concrete measures that draw upon all sources of ﬁ nance, technology, innovation, trade and data, the Addis Ababa Action Agenda lays out a comprehensive global framework for implementing the SDGs.

ne hundred and thirty-eight terrey Consensus and the Doha Declara- O high level government officials, tion on Financing for Development despite including eighteen heads of state a number of crises and downturns in eco- and government, addressed the ground- nomic growth. They pledged to develop breaking conference, which was the first in the current and the potential sources of a series of landmark events leading up to the financing and to promote a more vigorous formal adoption in late September of the international cooperation framework. new post-2015 sustainable development The conference agreed a multi-stake- agenda: “Transforming our world: the 2030 holder universal plan based on five pillars: Agenda for Sustainable Development.” people, peace, planet, prosperity and part- The Third FfD, which was also attend- nership. Applicable to developed as well ed by development finance institutions, as developing countries, the plan’s overar- civil society and the business sector, built ching object is to eradicate poverty, restore on the intensive groundwork launched at dignity and promote shared prosperity. the 2012 Rio+20 summit, notably the in- The plan was endorsed by the UN and is sight of the intergovernmental group of now a key component of the post-2015 experts on financing for development. transformational agenda. Participants took note of the progress The conference recognized that the made in the implementation of the Mon- agreed SDGs and their target were set at a

44 OFID QUARTERLY OCTOBER 2015 CONFERENCE WATCH

much higher level than ever considered developing global opportunities for shared and concluded that the means of imple- prosperity and for the preservation of the mentation must be comparably ambitious. planet’s natural resources. Equally import- The Addis Ababa Action Agenda under- ant in the context of international solidar- scores the financial interconnection of the ity is the principle of common but differ- SDGs and spells out the optimal condi- entiated responsibilities and the principle tions of their rollout. that each country has prime responsibili- The Agenda cautions that achieving ty for its development. the SDGs requires a transformational vision that builds on the lessons of the Sources of funding MDGs and guards against “business as usual’’ mindsets. It calls on a solid and The Addis Agenda acknowledges the need accountable global partnership because to mobilize more financial resources, pub- “nobody can do it alone.” lic and private, domestic and external, and It recalls the Monterrey Consensus underscores the critical importance of and the Doha Declaration which high- developing countries accessing private lighted the mutual dependence of the savings. It calls for innovative approaches development framework and the means of that alleviate obstacles and reduce risks, implementation. These conferences, held and stresses the importance of other means in 2002 and 2008 respectively, also set In his opening statement to the of development such as trade, technology principles for the much-needed and often- Third FfD, UN Secretary-Gener- and knowledge-sharing. Regarding the advocated global partnership. al Ban Ki-moon urged states to effective use of these resources, the confer- Of particular importance are the reboot commitments and bolster ence underscored the need to enable and principles of solidarity with the poorest empower the national institutions in- and the most vulnerable, and the need for inclusive growth. volved in the SDG processes. The experts reported broad estimates of the funding required, notably for specific sectors. They emphasized the inter- sectoral linkages, which make estimates hazardous, and guarded against “fit-all solutions.” Pragmatically, the experts and the stakeholders agreed to focus on mobi- lizing more of the current sources and gaining more effectiveness in their use. Noting the inherent limitations of official flows, including official development assistance (ODA), the governments and their partners subscribed to the need for more effective financial engineering to help channel world private savings to support SDGs in developing countries. PHOTOS: MINASSE WONDIMU HAILU/ANADOLU AGENCY/AFP According to a report by the multilateral development banks (MDBs) to the Development Committee of the World Bank, current external development flows amount to about US$1tr. They include ODA estimated at US$138bn as well philan- thropy, remittances, South-South flows and foreign direct investment. As to domestic resources, they have always been the major source of financing national development plans. There is ample evidence that more of these resources can be mobilized for national development, even in the least developed countries; ideas to this effect are among the options identified by the experts.

OFID QUARTERLY OCTOBER 2015 45 CONFERENCE WATCH

The Third FfD called on development finance institutions (DFIs) to be more innovative and to enhance their catalyst role in developing policies and structuring operations. In this context, the MDBs are expected to scale up their support to the SDGs and more particularly to play a role in the financing infrastructure for which the Addis outcome suggests a dedicated forum. To be responsive, the DFIs believe that “the global community needs to

PHOTO:BENOIT DOPPAGNE / BELGA MAG / BELGA/AFP move the discussion from billions in ODA to trillions in investments of all kinds: public and private, national and global, in both capital and capacity.” The summit also addressed the critical importance of reporting progress and highlighted the need for relevant and timely data. A UN interagency task force will undertake this mission based on countries’ official data. Other stakeholders, notably non-governmental, will contribute to showcasing progress and to pointing out actions needed to help The Addis Summit brought together developed and developing nations to thrash out a financing agenda for the SDGs. Pictured from left: Beninese President Thomas Boni, Ethiopian Prime Minister Hailemariam Desaleg achieve the SDGs. A stocktaking confer- and Belgian Deputy Prime Minister and Minister of Development Cooperation Alexander De Croo. ence will be called by 2019.

OFID confirms allegiance to Addis action agenda

In a statement delivered on behalf of and long lasting relations with its part- OFID at the FfD’s seventh plenary ner countries and its understanding of session, Fuad Albassam, Assistant- their development objectives. “We Director General, Operations, wel- agree that an effective global partner- comed the conclusions and the out- ship is an essential requisite of the come document of the Summit. In post-2015 agenda,” he stated, adding particular, he applauded “the empha- that OFID was committed to helping sis on inclusive social contracts and on its partner countries assume their le- the recognition of the aspirations of gitimate role. developing countries to a higher stan- “OFID will continue supporting—tech- dard of living through social, econom- nically and financially—the public and Fuad Albassam, ic and environmental programs.” Assistant-Director General, OFID. private investments of its partner Albassam noted the convergence of countries and their trade, as well as Albassam stressed OFID’s commit- OFID’s policies and procedures with their efforts to develop their capaci- ment to the principle that no one the deliberations and the conclusions ties,” he told delegates. “We will would be left behind in the new agen- of the conference and observed the consult with our partner countries in da, stating: “We commit to dialogue focus of the SDGs on food, water, and how we can help them achieve their with all our partners to enhance the energy, some of OFID’s core activities. SDGs and deploy all resources avail- relevance and the effectiveness of all He went on to highlight OFID’s strong able to them.” our operations.”

46 OFID QUARTERLY OCTOBER 2015 CONFERENCE WATCH

Event: Alpbach Political Symposium at European Forum Alpbach 2015 Theme: How Much InEquality can Europe Bear? Venue: Erwin-Schrödinger Saal, Alpbach, Austria Date: August 30–September 1, 2015

by Namat Abu Al-Soof Inequality: A force for bad or good?

At a time of turmoil in Europe, this year’s Alpbach Forum looked at the theme of “InEquality” from two sides: as a deﬁ ciency hampering opportunities and reducing resources, and as a driver for change and diversity.

s part of the wider Forum, the complex refugee crisis. Addressing dele- on the EU to cooperate with Russia on re- A Alpbach Political Symposium gates, Austrian President Heinz Fischer said solving the situation in Syria, which had brought together international that Europe and the world were facing the become one of the causes of the refugee decision makers from all sectors of society worst refugee crisis since World War II. crisis in Europe. Urging European leaders to debate the impact of inequality on de- “This is not someone else’s suffering that to action, she said they should “coordinate mocracy, European integration, sustain- does not concern us,” he declared. “On the their actions, rather than isolate them- able development and energy access, contrary, it is our moral obligation—and selves from each other.” among other issues. an investment in peace—to treat those Borut Pahor, President of Slovenia said The opening ceremony focused on refugees with dignity.” he was convinced that the EU could solve the European Union and—in the light of Contributing to the debate, Croatian the refugee—and other—problems if it had current events—explored the increasingly President Kolinda Grabar-Kitarovic called more joint management mechanisms PHOTO: PHILIPP NADERER

Austrian President Heinz Fischer (sixth from left) accompanied by some of the high level politicians who attended the forum.

OFID QUARTERLY OCTOBER 2015 47 CONFERENCE WATCH

OFID at Alpbach

At Alpbach, OFID Director-General Suleiman J Al-Herbish, “From experience, we know that the biggest need in the chaired an OFID breakout session titled “Eradication of fight against energy poverty is investment on the ground. Energy Poverty: A Key to Reducing Inequality”. The session To achieve this, we partner with the public sector, the addressed the following questions: private sector and civil society,” he explained, adding that • Is the world community on the right track to achieve OFID had found the synergies from these partnerships universal access to modern energy by 2030? very positive. • How can we move from promises to concrete action? OFID’s Faris Hasan, Director, Corporate Planning and Economic Services, also spoke at the session, making points • What is the scale of the required investment? about inequality in energy consumption and its conse- • What is the business case for fighting energy poverty? quences for peace, political instability and economic pros- • What are the roles of the different stakeholders? perity. He also elaborated more on OFID’s approaches in fighting energy poverty and the level of required invest- In introductory remarks, Al-Herbish reiterated that erad- ment to achieve universal energy access. icating energy poverty was crucial to realizing inclusive and sustainable development. He acknowledged that the chal- Other speakers included: UNIDO’s Dr Pradeep Monga, lenge was daunting, but that “finding solutions for this harsh Director, Energy Branch, and Special Representative of the reality is something that drives me every day as a devel- Director General on Energy, who talked about public opment practitioner and as a responsible global citizen.” policy and UNIDO’s role in the Sustainable Energy for All initiative; Edu Willemse, External Relations Manager, SNV He continued: “To borrow the words of Mr Ban Ki Moon: Netherlands Development Organization, who spoke on Energy is the golden thread that connects economic the role of NGOs and energy access as a business oppor- growth, social equity, and environmental sustainability.” tunity; and Marcus Wiemann, Executive Director, Alliance Mr Al-Herbish outlined OFID’s instrumental role in push- for Rural Electrification, who presented the roles of the ing energy poverty up the global action agenda and high- private sector, entrepreneurs and youth, including as ex- lighted the institution’s fruitful partnerships with a wide amples SNV work in Africa and OFID/SNV projects. range of stakeholders. The goal, the Direc- tor-General said, was not just to leverage resources but also to pool expertise and pursue new opportunities. “Our objective is ensuring access to modern energy services in a technology-neutral man- ner,” he said. “From our experience, there is PHOTO: OFID/NAMAT A AL-SOOF no one-size-fits-all solution. The energy mix should satisfy the basic energy needs of the poor in accordance with the conditions of each country.” The Director-General informed participants that OFID’s priority was energy access, especially in delivering it to rural areas, which vastly outweighed the urban sector in terms of energy poverty. He also emphasized OFID’s strategy of tapping into a variety of mechanisms in order to meet the diverse Director-General Suleiman Al-Herbish (center) and Director of Corporate Planning range of energy needs. Faris Hasan (second from right) with representatives from UNIDO, ARE and SNV.

48 OFID QUARTERLY OCTOBER 2015 CONFERENCE WATCH PHOTO:PHILIPP NADERER

From left: Croatian President Kolinda Grabar-Kitarovic, moderator Anke Plättner, Austrian President Heinz Fischer, and Slovenian President Borut Pahor.

and coherent policies. He further ventured: agenda as the first real answer to global the next 15 years far outweigh the risks of “A sustainable solution to the current refugee development and the most inclusive pro- political squabbling in the coming crisis is a peaceful solution to the conflict in cess in human history. Referring to the months,” she said. the areas of origin of the refugees.” broadness and transparency of the process Ms Mohammed continued: “We have of developing the goals, she said: “What to deal with the tough choices and the The three trillion dollar we’ve had with the SDGs is a paradigm push back that we will get, but we need to planet rescue plan shift in the way we form an agenda.” argue and negotiate it through until such Noting that the dozens—or even hun- time as everyone sees that the red line is The Symposium also examined the dreds—of indicators through which the the sustainable development agenda and new Sustainable Development Goals and, SDGs will be measured would not be ready a more just, peaceful and equal world. In- specifically, how to meet the challenges until March 2016, Ms Mohammed conced- equality and exclusion are just so deadly; involved in making the transformation to ed: “I suspect the next years will be a ca- we can’t leave people or countries behind. sustainability a reality. cophony and what we’ll be working on is It’s incredibly dangerous.” Speaking at the final plenary session, making it a symphony.” She stressed, how- Jeffrey D Sachs, Director of the Earth Amina J Mohammed, the UN secretary ever, that it was important to strive for Institute at Columbia University and Spe- general’s special adviser on post-2015 de- optimism over cynicism. “The risks of cial Advisor to Ban Ki-Moon, also gave his velopment planning, described the new failing to agree a coherent commitment for views. Urging accelerated progress in order to complete the 15-year task, he said there would have to be “deliberate, cooperative, global efforts.” This would have to be done “country by country and city by city all over the world.” He added: “[we have to] … draw attention to what is important and convince

PHOTO: MICHAEL STEINDORFER creative people all over the world to work on these problems to find solutions and then implement them to spread the best practices globally.” On financing the SDGs, Professor Sachs, an economist, estimated that the costs would account for approximately three percent of the world’s annual income and production. “That is about three trillion dollars, which is a big number, of course. The key point here is that we can Addressing the forum, Amina J Mohammed, Special Advisor of the UN Secretary-General on Post-2015 afford this and should afford it because it’s Development Planning. a good deal.”

OFID QUARTERLY OCTOBER 2015 49 MEMBER STATES FOCUS

KISR’s aquaculture program is also work- Kuwait launches initiative to ing to strengthen the local fishing industry and bridge gaps between supply and shore up local fisheries demand through advanced research and data collection. A fluorescent color code was, for ex- Between August 17 and September 8, the Kuwait Institute for ample, injected into the spines of the Scientiﬁ c Research (KISR) released some 120,000 juvenile 120,000 juvenile fish. ﬁ sh into Kuwaiti coastal waters as part of a broader cam- Specifying site, date and weight upon paign to protect and enrich the country’s marine resources. release, it will allow researchers to determine growth rates, movement patterns BY NADIA BENAMARA and program efficacy when some fish are recovered at a future time. Having developed numerous com- aised by KISR’s aquaculture ture program manager, Dr Khaled Al Ab- mercial hatchery technologies, the aqua- R marine fish hatchery team, two dul Elah in a statement to the Quarterly. culture program claims the world’s first types of fish (blue- and yel- Fishing was a leading industry prior reported success in breeding Hamoor (or- low-finned sea bream) were initially select- to the discovery of oil in Kuwait. Overfish- ange spotted grouper), Sobaity (blue-finned ed based on local popularity and price. ing and environmental degradation have sea bream) and Zobaity (white pomfret) Members of the public helped release since impacted fish stocks and driven up under domestic aquaculture conditions. twelve batches into the sea at various lo- the price of seafood. Dr Abdul Elah told the Quarterly: cations in hope the fish will enter vacant According to the country’s central “Producing farmed market-sized fish such ecological niches and eventually enlarge statistical bureau, Kuwaiti fisheries met as hamoor, sobaity and sheam [yellow- wild stocks of the same species. merely 30 percent of the country’s de- finned sea bream]…for local consumption “Educating the public side by side mand for fresh fish (including shrimp) in will ease the pressure on wild stocks and with this initiative is an important prereq- 2013. The remaining 70 percent was im- together with our initiative help enhance uisite for its success,” said KISR’s aquacul- ported. future food supply for Kuwait.” PHOTO: KISR PHOTO:

Assisted by members of the public, the KISR team released a dozen batches of young fish into the ocean.

50 OFID QUARTERLY OCTOBER 2015 MEMBER STATES FOCUS PHOTO: GEMENACOM/SHUTTERSTOCK.COM PHOTO:

Can Qatar grow 50 percent of its vegetables locally by 2023? BY NADIA BENAMARA

carce water, limited arable land “The technology proved to be perfectly tion costs would be lower than imported S and scorching heat make do- suited for Qatar’s climate,” said Hajri. “It products of the same quality. mestic crop cultivation a highly also exceeded expectations regarding Zulal Oasis board member Hamad Al challenging proposition for Qatar, which yield and quality, producing more than Hajri told Qatar Today: “In our strategic currently imports up to 90 percent of its 37kg per square meter of highest quality plans, we have targeted bringing 1,000 food. Now agricultural technology com- European standard.” hectares under cultivation using this tech- pany Zulal Oasis is promising to help local Farm specialists, private investors nology by 2023, which will cater to 50–70 farmers overcome constrictive climate and members of the press were invited to percent of the local demand for vegetables.” conditions. tour the Zulal Oasis test facilities at Al The company hopes to achieve this Zulal Oasis—a joint venture between Shahanyiah, 60km west of Doha, three goal by licensing its technology to local Qatar’s agricultural investment fund, Has- days later. farmers and private investors, to whom it sad Food, and the Primaflor group of Housed within a purpose-built 800 will offer complete technical services, Spain—recently developed an integrated square meter greenhouse, the company’s training and other support. hydroponic growing system. state-of-the-art growing system requires “While we immediately started pro- Company officials claim it will neither soil nor substrate and recycles 100 motion activities, the response hasn’t enable farmers to cultivate fresh, high percent of irrigation water into a closed been what we had hoped for, primarily quality produce year round whilst reduc- circuit cooling system that automatically due to the lack of knowledge in such in- ing groundwater use by as much as 90 adjusts to outside temperatures. vestments and the absence of major percent. Supporting fruit, vegetable, herb and agro-businesses in the country,” said Hajri. Hassad Food Chairman and Manag- flower production, the Zulal Oasis model Still, he’s hopeful that the Kingdom, ing Director Nasser Mohamed Al Hajri would also enable farmers to diversify which has already begun implementing announced the results of its pilot project crops according to local demand. the Qatar National Food Security Program, involving several varieties of tomato on Zulal Oasis did not release any finan- will give sustainable production models August 24. cials, but company officials insist produc- such as this serious consideration.

OFID QUARTERLY OCTOBER 2015 51 MEMBER STATES FOCUS

told the Saudi Gazette he would be voting for a female candidate come December and hoped to see women attain council membership through polling rather than appointment. PHOTO: AFP PHOTO/STR “Women candidates will have a great chance to win, especially since several businesswomen, medical doctors, university teachers and journalists are in the fray,” said Al-Junaidi. A final list of approved candidates won’t be released until November 29, but election officials reported 16 percent of all registered candidates as female. For Haifa al-Hababi, an architecture professor at Prince Sultan University in Riyadh, campaigning is all about setting a precedent. “I work with a lot of Saudi female students,” said Hababi in an interview with Al Arabiya News. “I’d like to give them more opportunities. By running, I’m setting myself as a role model and example A Saudi woman holds an application as she heads to register to vote for these girls’ fathers that they can do in the port city of Jeddah on August 30, 2015. anything they want in the future.” A Saudi woman’s right to vote was first decreed by the late King Abdullah in 2011. His successor, the current King Sal- First Saudi Arabian women man bin Abdulaziz Al Saud, has publicly supported women voting, calling women crucial partners in the country’s ongoing register for local elections development, according to the Saudi Press Agency. Women have exercised their right to register as voters and One of the Kingdom’s best known candidates in upcoming municipal elections for the ﬁ rst women’s rights activists, Dr Hatoon Al time in Saudi Arabia’s history. by Nadia Benamara Fassi, framed recent developments for an international audience on Washington DC’s National Public Radio. “A woman, in order to reach these cen- afina Abu Al-Shamat, a school other third will be appointed by the Min- ters and register, she’s breaking so many S teacher, and Jamal Al-Saadi, a ister of Municipal and Rural Affairs. barriers and so many taboos,” said Fassi. businesswoman, were first in According to the government’s official “You won’t believe the determination Saudi line at designated (women only) centers in election site (www.intekhab.gov.sa), wom- women are having. Here we are, exercising Mecca and Medina, August 16. en made up 22 percent of new voter regis- our citizenship for the first time. It’s just “The participation of Saudi women… trations, which totaled over half a million. amazing and we are not letting it down.” was a dream for us,” said Saadi to the Sau- Altogether some 1.7 million Saudis Nationwide voter registration took di Gazette. “[It] will enable [us] to have a are now registered to vote. Prior municipal place August 22 to September 14. It began say in the process of decision-making.” elections, held in 2005 and 2011, were re- and ended a week early in the two holy Saudi voters are to elect two-thirds of stricted to male voters and candidates. cities of Mecca and Medina in order to an estimated 3,160 officeholders to 284 Abdul Malik Al-Junaidi, current pres- keep streets free for Islam’s annual Haj municipal councils on December 12. The ident of the Jeddah municipal council, pilgrimage.

52 OFID QUARTERLY OCTOBER 2015 OPEC PHOTO: OPEC OPEC PHOTO:

50 years of sharing OPEC celebrates half century of Vienna as its home

On September 1, 2015, the OPEC Secretariat celebrated ﬁ ve decades of residence in Vienna. Here, OPEC Editor Maureen MacNeill looks back to the roots of a relationship that has matured, endured and eventually created its own identity. Courtesy of the OPEC Bulletin

OFID QUARTERLY OCTOBER 2015 53 OPEC PHOTOS: OPEC OPEC PHOTOS:

The Host Agreement between the Republic of Austria and OPEC was signed on September 1, 1965, by then Secretary-General, the late Ashraf T Lutfi (right) of Kuwait, and Austrian Foreign Minister, the late Dr Bruno Kreisky (left).

ifty years ago, OPEC met the City of ful relationship continue as we tackle the chal- F Vienna. Perhaps it was not the most lenges and opportunities that lie ahead.” romantic first date. No gentle words The OPEC Secretariat has been housed of persuasion were needed. Over time though, in various locations around Vienna over the these two entities have come to know each oth- years. Its headquarters was first appointed in er in a personal way—the characters, the events, two small buildings along Möllwaldplatz 5 in the stories—and have developed a shared histo- the city’s fourth district. It then moved to Dr- ry and a deep and mutual respect. Karl-Lueger-Ring 10 (renamed Universitätsring The OPEC Secretariat was originally estab- in 2012) in the city’s historic first district before lished in 1961 in Geneva, Switzerland. In April moving in 1977 to Obere Donaustrasse 93, along- 1965, the Eighth (Extraordinary) Meeting of the side the Danube Canal, in Vienna’s second OPEC Conference approved a Host Agreement district. with the Government of Austria, effectively In November 2009, the OPEC Secretariat moving the Organization’s headquarters to the returned to the city’s first district near the for- city of Vienna on September 1, 1965. mer headquarters of the Vienna Stock Exchange “When the Secretariat moved to Vienna in at Helferstorferstrasse 17—its present home. 1965, OPEC was still a very young organization— The original Host Agreement was signed by only five years old—and unknown to many. Ashraf Lutfi, then OPEC Secretary-General, and Over the past 50 years, it has faced and overcome Dr Bruno Kreisky, the Austrian Foreign Minister many obstacles and challenges, it has grown in at that time. It marked the beginning of a rela- stature and is now a major stakeholder in the tionship that has grown and strengthened over global oil market,” says OPEC Secretary-Gener- the years. al, Abdalla Salem El-Badri. Many OPEC members of staff—past and He adds: “I would like to thank the Austri- present—have come to Vienna from far away, an people for their support and the City of Vi- just to work at the Organization. They have enna for being excellent hosts and fully support- shared their lives with Austrians and their fam- ive of our Organization as it has grown in size, ilies have grown up together and gone to the expertise and influence. Long may our success- same schools. They have learned the local lan-

54 OFID QUARTERLY OCTOBER 2015 OPEC guage and culture and often decided to make Revisiting old faces Austria their permanent home. Enis Al-Attar, now 81, was employed at “He had a sense of humor,” states Djemal Berrou- OPEC for 26 years until he retired in 1996. He ka, speaking of Ali Jaidah, OPEC Secretary-Gen- describes his time at the Organization as being eral 1977–78. Berrouka enthusiastically discuss- “the best years of my life.” He says with affection: es the Secretaries-General he knows from the “I retired 20 years ago, but I still dream about life photos that adorn the walls of the press room at in OPEC.” the OPEC Secretariat. It’s his first visit to the new Born in Austria of an Austrian mother and Secretariat and his face brightens as he relives Iraqi father, Attar spent most of his childhood old times. growing up in Iraq—the peaceful and lovely Iraq Berrouka, 82, joined OPEC on June 21, 1972, of old. during the last six months of the term of the After leaving Baghdad in 1961, due to dete- then Secretary-General, Dr Nadim Pachachi of riorating conditions there, he landed a job in Iraq. The trained lawyer was offered a position Middle East Airlines as the company’s top man as Attendant Legal Studies Officer in the Orga- in Austria. Through this connection, he got to nization’s Legal Department and left his job at know many of the staff at OPEC when it moved the Foreign Office in his native Algeria to travel to Vienna in 1965. to Vienna. “OPEC was known to the Arab world, there- Berrouka spent eight years at OPEC and had First premises, Möllwaldplatz 5, fore, it was known to me,” he stresses. “The a front-row seat during the formative years that in Vienna’s fourth district. Secretary-General was a very nice man. I visited made OPEC the Organization it is today; at the him and introduced myself and the airline. We time it was evolving quickly and went through were providing services to OPEC Countries. I a great many changes. developed a personal relationship with many He also served as Senior Legislation and and became good friends.” Contracts Officer as of August 1974 and finally A job as Administrative Assistant was creat- as Head, Office of the Secretary-General after ed for him in OPEC in 1976. The title then 1974 until his tenure ended in 1980. changed to Administrator, a position Attar occu- “It was a very exciting time, pivotal histor- pied until his retirement. “I did many tasks that ical moments. When I joined, there were about were not part of the job description because of 50 people on staff,” he recalls. That is in contrast my knowledge of language and contacts,” he says. to today’s total staff of around 150. “Fluency in Arabic was appreciated by many.” Berrouka was instrumental in preparing With OPEC, he traveled a lot, supervised the first Summit of OPEC Heads of State and Second office, Dr-Karl-Lueger-Ringer 10, conferences and had a large scope of work, in- Government, which was held in Algiers in 1975. in Vienna’s first district. cluding being involved in three changes of staff This landmark meeting addressed the regulations. “It was an honor to be in Member plight of the poorer nations and called for a new Countries and to know Governors who became era of cooperation in international relations in Secretary-General.” the interests of world economic development In fact, ‘Attaché Attar’—a title he received and stability. It led to the Algiers Solemn Decla- because of the role he played in relaying a mes- ration, which “reaffirmed the natural solidarity sage during the 1975 siege on OPEC by the infa- which unites OPEC Countries with other devel- mous Carlos the Jackal—received a medal from oping countries in their struggle to overcome the Austrian government a few months after his underdevelopment” and called for measures to retirement, in part because of his role in that strengthen cooperation between these coun- incident, but also because of other work he did tries. that improved relations between the Austrian It was as a result of this that the OPEC Spe- government and OPEC. cial Fund (later to be renamed the OPEC Fund “I was a contact person between the two … for International Development) was established nothing official, but being Austrian and speak- in January 1976 by the then 13 Member Coun- ing German makes it easier to do the job,” he tries of OPEC. explains. “All media the world over became focused It was Kreisky himself who gave Attar the on this Organization called OPEC. This (first The third Secretariat building at nickname ‘Attaché Attar’ after he was escorted summit) caused ten times more press,” com- Obere Donaustrasse 93, in Vienna’s second district. to the Interior Ministry with a message from ments Berrouka. Carlos. “I sat next to Kreisky. I didn’t have a title, “It was a fantastic opportunity for me. The so he called me ‘Herr Attaché,’ and the title stuck older I am, the more I realize the importance of with me throughout my career at OPEC.” this. I was at the time just rolling along, not

OFID QUARTERLY OCTOBER 2015 55 OPEC

realizing the importance. The solidarity of In fact, it was Berrouka who called to the atten- this union was so strong that nobody could tion of OPEC Secretary General, Dr Abderrah- move it, despite the cultural and ethnic differ- man Khène, of Algeria (1973–74) the need to ences. It was an economic organization that open negotiations on the diplomatic status of became the society of OPEC. OPEC with the host authorities under the prin- “It was also so good to know different na- ciples of the most favored organizations clause. tionalities. Not a superficial connection, but The high level of cooperation with the deep. I gained so many things knowing such Austrian authorities was great, he says. “They varied people from different nationalities and gave such a satisfactory answer to our various civilizations,” observes Berrouka. requests for improvement. They were very, very He still remembers organizing and taking cooperative. This showed in their ‘Gastfreund- Enis Al-Attar, former Administrator, the trip to Paris that January in 1976 when the schaft’ (hospitality) ... I am still enjoying this describes his time at OPEC as “the best years of my life.” OPEC Special Fund was made concrete at a hospitality today. north-south dialogue there. That year saw many “OPEC was one of the first to make its head- more meetings, to set up the Fund. Fund meet- quarters here. First there was the International ings were held at the OPEC Secretariat until May Atomic Energy Agency (IAEA), then the United 1980, when the institution was endowed with Nations Industrial Development Organization financial and legal authority and its new name. (UNIDO), and then OPEC,” says Attar, adding It thus became a permanent organization, with that many international organizations came to the same status as the Secretariat. Vienna after OPEC, perhaps also encouraged by In September 1980, Berrouka was appoint- the Organization’s presence. ed Secretary of the Fund and tasked with the job “The existence of OPEC brings many advan- of finding a building for the fledgling institu- tages to Vienna. It has even encouraged tourism,” tion, as well as negotiating a separate agreement maintains Attar. “A few days ago there was a with the Austrian authorities. He stayed at the report that Arab tourism to Austria has increased OPEC Fund until his retirement. by 180 percent.” “I came with 17 proposals (for a building). They kept two … the ad-hoc Committee for the OPEC Fund Governing Board decided to select Vienna 50 years ago the Deutschmeister Palais.” This building on Parkring 8 in the first district was designed in Attar also says that Austria has changed a lot 1864–68 by the Danish-Austrian architect, The- during 50 years. After settling in the city in 1957, ophil von Hansen, as a residence for Archduke he saw a lot of improvement even by 1965. Wilhelm Franz of Austria (1827–94). Attar notes that the city already had an international feel about it by 1965 when OPEC arrived. “Vienna never lost its jolliness. It was OPEC’s move to Vienna also a city loved by the Arabs historically—I don’t know why.” When OPEC came to Vienna, Austria was recov- There is a very famous Arabic song called ering from the war and seeking to attract inter- ‘Layali Al onns fi Vienna’ (Merry Nights in Vien- national organizations to set up their headquar- na) from a 1945 film, which OFID Director-Gen- ters in the country. “It was a neutral state like eral Suleiman J Al-Herbish has traditionally Switzerland and Sweden. It was the cleverness brought someone to sing whenever he hosts a of the foreign ministry to turn this into a posi- reception. “Every Arab knows it,” says Attar. tive thing,” affirms Berrouka. Austria had the Aside from that, there is an endless amount required conditions to turn Vienna into an in- of cultural attractions to choose from, he says. ternational center. “I think Vienna has 22,000 seats available every Another reason OPEC chose Vienna as its night at the opera, orchestras, small theaters, home is that the country was willing to grant and so on.” Djemal Berrouka, former Head of diplomatic status to the Organization and its After 50 years of activities in Vienna, OPEC the Secretary-General’s Office, was officers, states Attar, elaborating: “Kreisky gave extends its warmest thanks to its host city, as instrumental in preparations for the first OPEC Summit in Algiers diplomatic status and advantages … there were well as to the country of Austria. And on behalf in 1975. financial benefits to OPEC. The headquarters of its 12 Member Countries and the staff of the agreement was redone a few times with improve- Secretariat, the Organization wishes to thank ments so that OPEC staff had the same privileg- the City of Vienna and its officials for their hos- es as the UN. Now it is the same as all diplomat- pitality — and looks forward to many more years ic missions here.” in this beautiful city.

56 OFID QUARTERLY OCTOBER 2015

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