THE HISTORY OF THE OPEC FUND
book of the same title, with the US the sole remaining superpower. These events also had huge impacts for the developing world. Economically, private market capitalism had prevailed over the state-controlled command economy. The 1987 movie “Wall Street” came to characterize a whole era with its key message “Greed is good, greed is right, greed works.” Ideological supremacy combined with rapid
COVID-19 Response Action Plan Shortly after the outbreak of the COVID-19 pandemic, the OPEC Fund approved a US$1 billion action plan for recovery efforts in developing countries in the form of public and private sector as well as trade finance loans. As a member of the Arab Coordination Group, the OPEC Fund also committed to the joint US$10 billion pledge to help developing countries mitigate, contain and recover from the pandemic.
Examples of OPEC Fund financing:
technological advances (1991: the worldwide web is publicly launched; 1992: Nokia releases its 1011 model, the first mobile phone to achieve mass sales; 1993: Intel introduces the Pentium microprocessor, doubling performance capacity) paved the way for the triumph of globalization.
The OPEC Fund approved US$75 million
of new funding for developing countries. A US$15 million OPEC Fund public sector loan to Rwanda supported businesses affected by COVID-19. The OPEC Fund also approved US$60 million funding to support SMEs in Asia and Latin America.
A US$10 million public sector loan to support Guatemala’s COVID-19 emergency response and public health strategy. Emergency aid grants to support COVID-19-related World Health Organization (WHO) efforts in Latin America.
It was in this period that the OPEC Fund also opened up, broadened its offer and reconnected its activities thanks to the launch of its Private Sector Operations in 1999 with its first transaction. Designed to complement the OPEC Fund’s public sector lending, which often aims to create the infrastructure and enable the wider environment for a successful economy, the private sector window supports firms and entrepreneurs who drive growth, create jobs and power innovation. Tareq Alnassar, Vice President, Private Sector Operations, reflects: “The OPEC Fund realized that to achieve its vision of creating a world where sustainable development is a reality for all, partner country governments cannot do this alone. To fill that gap, we wanted to create a new financing window for privately- or state-owned, yet commercially-run companies in partner countries, enabling the private sector to operate in areas where
A US$20 million loan to support the Maldives’ Economic Recovery Plan aimed at mitigating the socio- economic impact of the pandemic.
OPEC Fund grants totaling US$1 million were channeled through the WHO to support the purchase and distribution of consumables and equipment related to the health crisis in Ecuador and Venezuela.
The OPEC Fund’s Private Sector Operations approved US$30 million
to support SMEs in Paraguay via a local financial institution.
Three loans totaling US$45 million were approved to support COVID-19 response efforts in Belarus, Belize and El Salvador. Bangladesh, Benin, Dominica and Guyana received support via four loans totaling US$115 million.
there were amplified economic and social development gains for the partner countries.”
Tareq Alnassar, Vice President, Private Sector, OPEC Fund
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