Likening it to the fall of the Berlin Wall that changed Europe, G8 leaders ending an annual summit in France launched a partnership for North Africa and the Middle East that ties aid and development credits to progress on political and economic reforms by states which have thrown off autocratic rulers.
Most is in the form of loans rather than outright grants, to the two countries in the vanguard of protest movements which have swept the Arab world from the Atlantic to the Gulf. Egypt and Tunisia are planning to hold free elections this year. French President Nicolas Sarkozy said that on top of $20 billion of credits provided by the World Bank and similar regional lenders dominated by the major powers, there would be as much again from other sources - $10 billion from oil-rich Gulf Arab states and $10 billion from other governments.
Other countries could hope for aid in future. In a statement after the two-day summit in the northern resort of Deauville, the G8 leaders signalled they "strongly support the aspirations of the Arab Spring as well as those of the Iranian people". "The changes under way in the Middle East and North Africa are historic and have the potential to open the door to the kind of transformation that occurred in Central and Eastern Europe after the fall of the Berlin Wall," the G8 said. Multilateral development banks "could provide over $20 billion, including 3.5 billion euros from the EIB, for Egypt and Tunisia for 2011-2013 in support of suitable reform efforts".
SUPPORT REQUESTED Senior Egyptian and Tunisian officials met the leaders of the G8, expanded from seven Western powers to include Russia and bridge the East-West divide after the end of the Cold War, to plead for massive support for their fragile economies.
Tourism, major sources of revenue for both Tunisia and Egypt, has been particularly badly hit by the popular uprisings that have also spooked investors. "We are truly very satisfied with the very strong, clear and precise statements proffered by all of the G8 nations, and the financial institutions," said Tunisian Finance Minister Jalloul Ayed told a news conference in Deauville.
"It's very clear that everybody wants to help us." An International Monetary Fund report on Thursday said the external financing needs of oil-importing Middle East and North African states would top $160 billion over the next three years. "More important than any numerical figure, I think, is the vision that it lays out," he added "This is largely a case of trade not aid, investment not assistance over time. It's really about establishing the conditions under which the private sectors in these economies can flourish and the benefits of growth are broadly shared."
"GADDAFI MUST GO" The World Bank on Tuesday unveiled $6 billion in new funding for Tunisia and Egypt, whose revolts have inspired popular uprisings in Yemen, Bahrain and Syria.