Democracy News

Arab Spring Countries Slow to Receive Funds for Transition
September 12, 2011
By: Carlos Aramayo | Printer Friendly

On September 7, the Financial Times published an article that stated Arab Spring countries, like Tunisia and Egypt, had only received partial payments of previously promised economic aid packages from governments and multilateral agencies. According to the authors, Camilla Hall and Michael Peel, the funds were pledged by the international community to help support efforts towards democratic transition.

Tunisia’s Minister of Finance, Jalloul Ayed, said his country is still waiting on $20 billion (USD), which will be used to support plans for economic reform. The article cites that Tunisia’s GDP growth is expected to slow to 1 percent in 2011, down from 3.7 percent in 2010. Ayed stated that the country is looking to obtain $25 billion over five years to fund its reform plans.

In the case of Egypt, Hazem el-Beblawi, who serves as Minister of Finance stated that of “$7 billion in pledges from the United Arab Emirates and Saudi Arabia, $500 million had come through, and negotiations about the remaining funds were continuing and he expected a deal by the end of the year.”  The Financial Times also reported that Egypt’s current governing Military Council did not accept a $3 billion dollar loan from the International Monetary Fund earlier this year.

The international financial assistance disbursement delays will most likely complicate the delicate government transitions under way following the Arab Spring. According to the Financial Times, Tunisia presents a particular case, since the new government faces the need of creating sustainable jobs for the young graduates who protested against the former regime of Zine al-Abidine Ben Ali.

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