The Experience of the Islamic Development Bank in Supporting Economic Development in Islamic Countries

(An evaluation study)

Abstract

Among the most important sources of financing that developing countries rely on to support the process of economic and social development and improve the standard of living of their population are multilateral flows, whether provided by international or regional bodies such as regional development banks. The funding provided by these bodies, especially regional ones, is considered complementary to bilateral aid. Given by some donor countries in the form of donations and grants to developing countries, it is also considered at the same time a complement and guarantee against the fluctuations and selectivity practiced by private capital in selecting its centers of activity in which profit opportunities are available and which are often lacking in the majority of developing countries, in addition to that often What these bodies work to develop a financing strategy for each of the member countries, so if the concerned country has the creditworthiness to borrow on market terms, then it is eligible to borrow from the regular resources of these banks, but if its circumstances do not allow it to do so, then it is eligible to benefit from soft assistance for funds and windows established for this purpose. These bodies have also become playing a pivotal role in formulating development strategies for developing countries and directly influencing the type of development programs and policies applied in these countries, by imposing some conditions that are often not in favor of the economies of developing countries, as imposed by the International Monetary Fund and the Bank. The International Organization for Reconstruction and Development is one of the harsh conditions that have direct effects on the economic and monetary complexes of countries in need of external financing. From the foregoing, it becomes clear to us the importance that multilateral financing agencies have become in the equation of the economies of developing countries, as an important source of development financing for developing countries on the one hand. We will try to address in this paper the experience of the Islamic Development Bank as a regional financing body by addressing the presentation and evaluation of the bank's development policies, development programs and activities, as well as its financing activity and its effects on economic development.