KUALA LUMPUR — The Jeddah-based Islamic Development Bank (IDB) has been strongly urged to involve women directly in the key areas of the multilateral development bank (MDB’s) activities, and not to see women’s role as a marginal activity in the economic development of its member countries and the fight against poverty alleviation.
Dr Norraesah Mohamad, chairman of the World Islamic Economic Forum’s Businesswomen Network, warned that currently women play a marginal role in the MDB’s activities and that financing directed to projects are largely confined to micro-finance. The IDB set up a Women Advisory Panel in 2004. Last year the IDB also set up the IDB Prize for Women’s Contribution in Development, which is confined to small-scale projects geared toward “women’s areas”.
At the International Forum on the Makkah Declaration themed on “Implementing the Economic Agenda of the Muslim World” held last week in Kuala Lumpur, Mohamad stressed that there are many Muslim women in top jobs in financial services, government services, corporates, academia and in international agencies. As such there is no reason why women could not head IDB departments whether trade finance, treasury, project finance, human resources, etc.”
Sheikha Azza Al-Maskari, chairman of the Tricon Group of Companies in the UAE, similarly urged GCC countries to leverage the role of women in economic development in the region. However, she warned that women faced an uphill struggle in this respect, which is a huge opportunity cost lost given that there are many high-performing and high-achieving professional women in the GCC.
According to IDB sources, the MDB has started to employ women as administrative staff, albeit in junior positions. At the moment the IDB employs only four females out of a staff of 942 as of February 2007.
The IDB also has four women members in its board of governors. They are Mulyani Indrawati, minister of finance of Indonesia; Suhair Al-Ali, minister of planning and international cooperation of Jordan; Nenadi Usman, minister of finance of Nigeria and Hina Rabbani Khar, minister of state for economy of Pakistan.
IDB President Dr Ahmed Muhammad Ali, who was conferred with the title “Tan Sri” by the Malaysian government in June 2007 in recognition of his contribution to Islamic banking and development in Muslim countries, stressed that the “IDB considers women’s participation necessary for reducing poverty and achieving human development in its member countries. Indeed, the empowerment of women is one of the nine key strategic thrusts under the IDB Vision 2020.”
The IDB he added, also adopted in August 2007 the “IDB Group’s Strategy for Mainstreaming Women” which will be implemented by the bank over the next five years.
Tan Sri Dr Ali, who met Bank Negara Malaysia Governor Dr Zeti Akhtar Aziz for talks, also stressed that the Islamic Solidarity Fund for Development, launched by the IDB in May 2007 under the direction of the OIC Ten-Year Program of Action under the Makkah Declaration of 2005 to help poverty alleviation, is progressing well. The Fund has a target of $10 billion. “The operations under the Fund would be supported only through returns on the investment of its core resources. So far, 29 out of 57 members have announced their initial contributions amounting to $1.6 billion.”
Saudi Arabia alone has contributed $1 billion; followed by pledges from Kuwait and Iran. The IDB has also committed $1 billion from its own resources, but at an annual rate of $100 million over the next 10 years. Several least developed member countries (LDMCs), especially from sub-Saharan African Countries have also made symbolic contributions, albeit within their limited resources. Contributions to the Fund from the bank’s 57 member countries are voluntary.
“The Fund”, according to IDB President, “will finance programs and projects in pro-poor sectors such as health, education, agriculture and food security and infrastructure.” He also confirmed that the bank is in the midst of an internal reform process of streamlining operations, policy and building capacity.
