Discussions have been taking place dating back to 2008 among some of the key actors in the provision of budget aid (a term which encompasses both budget support operations and other sources of budget financing) in situations of fragility. At the core of these discussions is a belief that improving the coordination and pooling of risk management in providing budget aid in these environments strengthens the transition from fragility to resilience.

 

In February 2011 the World Bank and the African Development Bank produced a joint publication “Providing Budget Aid in Situations of Fragility”. The key premise behind this publication is a need for more predictable and targeted budget aid aimed at addressing the root causes of fragility and conflict. The International Monetary Fund was an important consultative partner, and the European Commission provided valuable guidance and support to the publication.

 

It should be noted that this publication is a "think piece" and as such it does not constitute official World Bank or African Development Bank policy advice, operational policy or guidance.

 

 

CAP Budget Aid in Fragile Situations.pdf [English]

 

For more information on World Bank operational policy and guidance on Development Policy Lending, please refer to the website here.