Arab states that ousted their dictators got a financial shot in the arm yesterday with promises of tens of billion of dollars to help their rocky transformation into modern democracies.

We are facing a historical transformational moment

G8 rich nations and institutions including the World Bank, the IMF, regional banks and the Arab Monetary Fund pledged nearly $80 billion in aid and loans over the next two years, doubling the amount promised earlier this year.

French Finance Minister François Baroin announced the massive increase at a Group of Eight finance ministers’ meeting in Marseille.

The money is earmarked to support reform and help new governments weather short-term economic instability in the wake of popular uprisings that began in Tunisia and toppled its strongman leader before spreading to Egypt and Libya.

“We are facing a historical transformational moment, and while there are downsides, there is enormous enthusiasm,” International Monetary Fund chief Christine Lagarde told reporters here.

Jordan and Morocco, which have not faced popular revolutions but whose kings have promised steps towards deeper democracy, joined the so-called Deauville Partnership after the initial members Egypt and Tunisia. Representatives from the four states were in Marseille yesterday to explain to donors and lenders how they planned to relaunch their economies and to hear what help they can expect from the world’s major economic powers.

Officials from Libya’s new government – whose fighters have taken control of most of their country but are still battling remnants of strongman Muammar Gaddafi’s forces – were also in the southern French city as observers. Libya is not yet a formal member of the Deauville Parternship – named after the French town that hosted the G8 meeting in May – but has been promised it will be added to the list soon.

Its transitional government got a boost Saturday when the IMF said it now formally recognises it, paving the way for the fledgling administration to benefit from the IMF’s financial help.

“The fund stands ready to help the authorities through technical assistance, policy advice, and financial support if requested, as they begin to rebuild Libya’s economy,” IMF chief Lagarde said.

“The new authorities will also need to quickly restore oil production to generate revenues, stabilise the currency, re-establish a payment system, introduce sound public financial management, and start reforms to foster a more inclusive and sustainable growth for the benefit of all Libyan citizens.”