Saudi Finance Minister Mohammad al-Jadaan at the World Economic Forum in Davos. (Credit: AFP)
It sounds like a warning. The announcement in Davos by the Saudi finance minister that he wants to make deposits and financial aid to third countries conditional on economic measures is intended to mark a break."We need to see reforms. We tax our own people, we expect others to do the same," Mohammad al-Jadaan justified himself on Jan. 18 at the World Economic Forum.At a time when Saudi Arabia is implementing far-reaching reforms aimed in particular at balancing its budget, the kingdom’s traditional policy of "giving without counting" is a thing of the past.For years now, Riyadh has been asking for a quid pro quo, be it political or financial.But the formalization of economic conditionality, in addition to political conditionality, is an embarrassment to allied countries that depend heavily on Saudi aid and are currently suffering the...
It sounds like a warning. The announcement in Davos by the Saudi finance minister that he wants to make deposits and financial aid to third countries conditional on economic measures is intended to mark a break."We need to see reforms. We tax our own people, we expect others to do the same," Mohammad al-Jadaan justified himself on Jan. 18 at the World Economic Forum.At a time when Saudi Arabia is implementing far-reaching reforms aimed in particular at balancing its budget, the kingdom’s traditional policy of "giving without counting" is a thing of the past.For years now, Riyadh has been asking for a quid pro quo, be it political or financial.But the formalization of economic conditionality, in addition to political conditionality, is an embarrassment to allied countries that depend heavily on Saudi aid and are currently suffering...