More aid urged for poor Muslim nations

[sonz]

Kuwait Emir Sheikh Sabah al-Ahmad al-Sabah opened a two-day conference of the board of governors of the Islamic Development Bank with a call for more aid to poor Muslim states, AFP reported.

"Many Muslim countries have suffered from unrest and turmoil which had its impact on the people. Our economic institutions should double their efforts to put in place development plans to improve their living standards," he said.

The Jeddah-based IDB is the economic arm of the 57-member Organization of the Islamic Conference and was set up in 1975. Its board of governors comprises finance or trade ministers of OIC member states.

Meanwhile, IDB president Ahmad Muhammad Ali called for "organizational reforms" to the bank in order to enable it to move from its traditional role of providing finance to promoting investments, trade and exports among member states.

The IDB, which gives low-interest loans, has so far extended a total of 38 billion dollars to Islamic countries.

On Tuesday, IDB members signed an accord establishing the International Islamic Trade Finance Corp aimed at expanding trade between Muslim states.

The body will have an authorized capital of three billion dollars, with a subscribed capital of 500 million dollars. It plans to raise trade among the 56 IDB member states to 20% of their total exchanges over the next 10 years from 13% now.

The Kuwait conference will also discuss proposals to expand the IDB authorized capital from about 22.5 billion dollars to 45 billion dollars. Current paid-up capital is about 12 billion dollars.

The meeting will also consider ways to operate an IDB fund to combat poverty.

AlJazeera