Download Aid and Power in the Arab World: World Bank and IMF by Jane Harrigan, Hamed El-Said (eds.) PDF

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By Jane Harrigan, Hamed El-Said (eds.)

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Extra info for Aid and Power in the Arab World: World Bank and IMF Policy-Based Lending in the Middle East and North Africa

Example text

The third World Bank US$ 80 million SECAL for the agricultural sector came only three months after the Wadi Araba Agreement was signed. In the same year, the USA wrote off US$ 833 million of Jordan’s debt and began providing Jordan with advanced weaponry. The fourth SECAL for the same amount came in October 1995, less than a month after Jordan’s support for the Oslo II Accord under which Israel agreed to a partial withdrawal from the West Bank with administrative powers to be given to the Palestinian Authority.

The third World Bank US$ 80 million SECAL for the agricultural sector came only three months after the Wadi Araba Agreement was signed. In the same year, the USA wrote off US$ 833 million of Jordan’s debt and began providing Jordan with advanced weaponry. The fourth SECAL for the same amount came in October 1995, less than a month after Jordan’s support for the Oslo II Accord under which Israel agreed to a partial withdrawal from the West Bank with administrative powers to be given to the Palestinian Authority.

However, two general factors help account for the outliers. Firstly, the problem of missing variables, that is, our model may exclude some important variables which are determining factors in individual cases. For example, the cases of IMF loans to Egypt in 1976 and Jordan in 1989 may be partially explained by the use of such loans by the US and other Western powers to help facilitate the peace process between these two countries and Israel. Jordan’s 1992 loan was largely the product of the Gulf War and Yemen in 1997 is a special case since its IMF loan took the form of an ESAF accompanied by a PRGF.

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