- What are fragile states?
- What are conflict-affected states?
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- What is weak governance?
- How does the World Bank work on Fragile States?
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What are fragile states?
The World Bank defines a country as a Fragile State if it is a low income country or territory, IDA eligible, with a CPIA score of 3.2 (rounded) or below. Countries are considered core fragile states if their CPIA is below 3.0. Countries are considered marginal fragile states if their CPIA score is between 3.0 and 3.2. These designations are meant to provide guidance to policymakers in considering those countries with weak governance and limited institutional capacity for development. The CPIA scores provide guidance on the “spectrum” of fragility and should not be interpreted as hard and fast rules. Countries with CPIA below 3.2 may not exhibit fragility and there may be some aspects of fragility in countries with CPIA scores above 3.2. See How IDA Resources are Allocated for a discussion of the CPIA scoring process.
The definition “Fragile” was first adopted in Fiscal Year 2008. Previously, countries were classified as “Low Income Countries Under Stress” (LICUS) for World Bank Fiscal Years 2005 to 2007. Prior to the LICUS classification, there was no official designation for countries with weak governance and institutions that face particularly daunting challenges in development.
What are conflict-affected states?
The World Bank does not presently define conflict-affected states as such definitions could reflect a political bias (Governments of client countries may define conflict differently than international institutions such as the World Bank). A common academic definition of conflict is based on battle-deaths per year, as used in the Armed Conflict Database maintained by the International Peace Research Institute of Oslo (PRIO) and Uppsala University. Under this methodology, events resulting in more than 25 battle-deaths per year are defined as minor conflicts. Events resulting in more than 1,000 battle-deaths are defined as major conflicts. Research like the Armed Conflict Database also differentiates between international conflicts, intrastate conflicts (civil wars) and one-sided violence by state and non-state actors.
What is weak governance?
Weak governance can reflect:
- Low capacity in the form of human, social or physical capital for proper oversight and control of state resources. This limited capacity can result from recent conflict or state failure.
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- Low willingness on the part of those in government to provide public goods, security or basic social services. This can take the form of corruption or simple disinterest.
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- Low legitimacy because governing officials are not competitively selected through democratic processes or on the basis of other merits, suggesting that they do not truly reflect the will of the governed.
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Fragile states often have weak governance, but not all fragile states have corruption or low legitimacy. Many show improvements in governance, especially following elections or reforms associated with the end of conflicts and peace processes. For more information about the importance of governance, see the Governance Matters dataset.
How does the World Bank work on Fragile States?
The World Bank takes a differentiated approach to individual Fragile States, attempting to carefully attenuate interventions to the specific challenges being faced by each country (this is in accordance with the first of the OECD DAC Principles of Good International Engagement with Fragile States). Still, some classification is helpful in understanding the scope of the challenges and the Fragile and Conflict-Affected States Group has found it helpful to differentiate between four types of fragile states:
1. Post-Conflict Countries: Those countries which have recently experienced conflict and have made some commitment to peace through a credible peace event, such as a peace agreement, ceasefire or extensive political reforms. In these countries the Bank is often involved proactively in helping to encourage development and quick wins so that peace dividends are readily apparent.
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2. Re-engaging and Turnaround Countries: Those countries which have been disengaged from the Bank for an extended period of time, possibly have fallen into arrears, yet have made credible commitments to reform and to clearing debts. The Bank has developed special tools such as the HIPC and MDRI to assist these countries to become economically stable.
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3. Deteriorating Situations: Those countries in which political and security events may make Bank operations difficult, risky or impossible. In these countries the World Bank may protect investments by “ringfencing” interventions in certain sectors or regions which are less risky. Additionally, the Bank may restrict operations in these countries to watching and preparing to assist when conditions stabilize or improve.
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4. Prolonged Impasse: Those countries in which political or security concerns preclude any lending operations. In these countries the Bank may continue to assess developments until reengagement is possible.