The urgent necessity for poverty alleviation in the Muslim World, received, in no unambiguous terms, maximum prioritization in the OIC’s work program through the establishment of the Poverty Alleviation Fund as a principal facet of the OIC’s New Vision adopted during the Third Extraordinary Summit of the OIC in Makkah in December 2005. Over the past year and half, tireless efforts by the Islamic Development Bank (IsDB), the OIC General Secretariat and indeed, the Member States, in an exemplary manifestation of Joint Islamic Action and solidarity, culminated in the official launch of the Poverty Alleviation Fund on the sidelines of the 32nd Annual Meeting of the IsDB Group on 29 May 2007 in Dakar, Senegal.  

Announcing the launch, H.E. President Abdoulaye Wade of Senegal confirmed that the fund should retain its original appellation of Poverty Alleviation Fund to respect the spirit and letter of the Makkah Summit and furthermore to avoid confusion with other funds that already exist. President Wade furthermore asked all the delegations that had announced their contributions to confirm their pledges and additionally requested other governments and delegations to step forward and announce new pledges.

With a current total contribution upwards of US $1.57 billion from Saudi Arabia, Kuwait, Iran, Qatar, Algeria, Malaysia, Pakistan, Sudan, Senegal, Morocco, Mauritania and Burkina Faso, the fund is well on its way to playing a major role in the reduction of extreme poverty, in congruence with the Millennium Development Goals (MDGs) of the United Nations. Indeed, seven of the eight MDGs are directly related to poverty alleviation while the eighth calls for a global partnership for development. Given that all 57 OIC Member States are categorized as developing, the Poverty Alleviation Fund consequently complements MDG Goal # 8 as a unique example of South-South Partnership in poverty alleviation and development.

Indeed, the dire need for poverty alleviation in the Muslim World is both evident and compelling. Of the 50 Least Developed Countries (LDCs) in the world today, where the majority of the populace live in extreme poverty, 22 are OIC Member States and 18 of them are in Africa. Additionally, 12 OIC Member States in Asia and Africa are Landlocked Developing States (LLDCs) while 6 others in Asia, Africa and the Americas are Small Island Developing States (SIDS). Both these groups face unique developmental challenges due to geographical limitations and urgently need scaled-up, targeted development assistance if they are to make progress towards the attainment of the MDGs.

Recognizing the specials needs of LDCs, LLDCs and SIDS, the New Vision calls for scaled up and sustained capacity building assistance for poverty alleviation projects and investment in the development of trade and industry. Technology transfer, cancellation of bilateral and multilateral debts by donor Member States and the promotion of the New Economic Partnership for African Development (NEPAD) have also been identified as necessary steps for poverty alleviation and economic development. Additionally, in line with MDG # 6, one of the priority action areas to be addressed by the Poverty Alleviation Fund is the combating of major diseases and epidemics to which LDC Member States are particularly susceptible. In this regard, the IsDB will collaboration with the World Health Organization (WHO) and other relevant institutions to design and implement appropriate programs.

While the establishment and launch of the Poverty Alleviation Fund provides a reinvigorated impetus for action, sustained financial commitment of all Member States that are in a position to contribute - particularly donor Member States - is necessary for the fund to have its desired long term impact. It is in this regard that the 34th Session of the Islamic Conference of Foreign Ministers (ICFM) held in Islamabad, Pakistan from 15-17 May 2007 adopted a Resolution urging OIC Member States that are yet to announce their financial contributions to the Poverty Alleviation Fund to do so expeditiously and furthermore called upon the OIC General Secretariat and the IDB to vigorously pursue the resource mobilization drive.

As we move forward towards the critical implementation phase, what has become evident is that for the Fund to have its desired impact, programs have to carefully designed taking into account the unique circumstances and developmental needs of each Member State. In this regard, the inputs of the Permanent Representatives and Ambassadors of Member States – who bring with them an unparalleled insight into the developmental needs of their own country as well those of their region – can serve as a major asset in the design and implementation of poverty alleviation programs. It is in recognition of this fact that the President of the IsDB has kindly accepted the proposal that a core group of Ambassadors from OIC Member States may assist the OIC in advising them on the Poverty Alleviation Fund.  

Only eight years remain for world leaders to come good on promises made towards the poverty alleviation goals of the MDG’s. In recognition of the fact that the alleviation of poverty impacts upon every aspect of national development, the New Vision charted a clear path for the Muslim Ummah to meet the MDGs through the establishment of the Poverty Alleviation Fund – a first albeit critical step towards a world without poverty. It is up to us – the individual Member States – to contribute to the best of our means and abilities to realize the additional steps necessary to reach humanity’s common goal.