The Organisation of Islamic Cooperation (OIC) recently held a meeting of foreign ministers where it was agreed to establish a humanitarian trust fund to tackle the escalating economic crisis in Afghanistan. This is seen as a major step as this meeting represents one of the largest conferences on Afghanistan following the downfall of the US-backed government.
The New Humanitarian Trust Fund
With an aim to address the burgeoning economic crisis that’s threatening to plunge Afghanistan into a severe winter famine, the OIC has decided to set up a Humanitarian Trust Fund under the Islamic Development Bank to direct aid to Afghanistan. The creation of such a fund is pivotal in preventing economic collapse and is expected to offer realistic ways to unfreeze billions of dollars in frozen central bank reserves.
Furthermore, the meeting called upon the international community to extend urgent and sustained humanitarian aid not only to Afghanistan, but also to countries providing refuge to Afghan immigrants.
The United Nations Special Trust Fund
The United Nations (UN) has also made strides to support Afghanistan by establishing a special trust fund. This aims to provide immediate cash to the Afghans through a system that makes use of donor funds, which has been frozen since the Taliban takeover in August. By injecting liquidity into Afghan households, it is hoped that they can endure the upcoming winter and stay in their homeland.
Germany is the first country to pledge its support to the fund with a contribution of 50 million euros or approximately USD58 million.
About The Organisation of Islamic Cooperation
The OIC, with the UN being the only larger intergovernmental organisation, has 57 member states. Serving as the collective voice of the Muslim world, the OIC was established in Rabat, the Kingdom of Morocco on September 25, 1969. It aims to safeguard and uphold the interests of the Muslim world while promoting international peace and harmony.
In 2018, during the 45th session of the Foreign Ministers’ Summit hosted by Bangladesh, India was suggested for Observer status. However, Pakistan opposed this proposal. Yet, in 2019, India made its inaugural appearance at the OIC Foreign Ministers’ meeting as a “guest of honour”, signifying an important diplomatic victory for the country.
India and OIC Relations
India isn’t an OIC member but was invited as a guest of honor at the 46th Session of the Council of Foreign Minister in 2019. Individually, India enjoys positive relations with nearly all OIC member nations and has seen significant improvement in its ties with UAE and Saudi Arabia in recent years. The Crown Prince of Abu Dhabi (UAE) was even a special chief guest at the 68th Republic Day celebrations in India in 2017.
About The Islamic Development Bank
Established in 1975 following the declaration of intent issued by the Conference of Finance Ministers of Muslim Countries held in Jeddah in December 1973, the Islamic Development Bank is an international financial institution. It aims to promote the economic development and social progress of member countries and Muslim communities individually as well as jointly in adherence with the principles of the Shari’ah i.e., Islamic Law.
Membership of the bank, which currently includes 56 countries, is dependent on being a member of the OIC, contributing to the capital of the bank and accepting terms and conditions as decided upon by the IDB Board of Governors.
