The Group of Eight industrialised nations has agreed to mobilise $38bn for four countries affected by the political uprisings in the Middle East and North Africa.
At a meeting in Marseille, Egypt, Jordan, Tunisia and Morocco presented national action plans to help develop their economies. Libya also sent representatives to the meeting, hoping to join the Deauville Partnership.
In May, the G8 pledged to give $20bn in aid to Tunisia and Egypt (MEED 29:5:11).
The aid will support economic growth and create jobs.
“We are facing a historical transformational moment and while there are downsides, there’s enormous enthusiasm,” says Christine Lagarde, head of the International Monetary Fund (IMF). “It has to be focussed on job creation, especially for the young people.”
The IMF also recognises Libya’s new administration, the National Transitional Council as holding Libya’s IMF seat.
The European Investment Bank will lend $7.5bn to the four member countries up until 2013. Of this, $3bn will go to Egypt. The Washington-based World Bank says it will finance $10.7bn worth of projects, the African Development Bank will give $7.6bn and the Islamic Development Bank will give $5bn.