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Poverty Alleviation

Islamic Bank Launches Poverty Fund

THE Islamic Development Bank launched a $US10 billion ($12.23 billion) fund on 31st May 2007 to combat poverty in developing Muslim nations in Africa and other parts of the world.

The fund, which has an initial endowment of $US1.4 billion ($1.71 billion), will be dedicated to alleviating poverty, promoting health and universal education, and empowering women in the bank's 56 member countries.

"This launching ceremony of the IDB's Poverty Alleviation Fund symbolises a revitalisation of the Islamic community in a world where unmatched wealth is next to absolute poverty," the host of the bank's annual meeting, Senegalese President Abdoulaye Wade, told delegates.

Saudi Arabia has already pledged to contribute $US1 billion ($1.22 billion), Kuwait $US300 million ($366.99 million), Iran $US100 million ($122.33 million) and Senegal $US10 million ($12.23 million), bank officials said.

IDB Vice-President Amadou Babacar Cisse said the Saudi Arabian-based bank would be active across the whole of the African continent, not just in those countries where Islam was the predominant religion.

"For us the main goal on the African continent is the fight against poverty," said Mr Cisse. "We are not a religious-orientated institution."

Under Islamic law, the bank may not charge interest on its financial loans but it aims to cover its expenses in the projects it finances. It sees its operations complementing the activities of other multilateral lenders such as the World Bank.

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