Fragile States

"Effectively supporting fragile and conflict-affected states is a key priority for the Fund. [...] We are developing country engagement strategies and focusing our extensive CD support on building institutional and human capacity. We also have in place or are discussing Fund programs in 25 of 42 fragile and conflict-affected states, aiming to provide better-tailored and more sustained financial support, including in the context of the recent review of LIC facilities."

–The Managing Director’s Global Policy Agenda, 2019


Pivotal Moments: Effective Intervention in Fragile States

While their circumstances vary, fragile states are generally characterized by weak institutions that fail to reliably deliver needed development outcomes to their population. How can national factors and the international community speed the path to resilience?

Opening Remarks: 

Mitsuhiro Furusawa, Deputy Managing Director, IMF


Rachelle Akuffo, Journalist, CGTN


Nazanin Ash, VP for Global Policy and Advocacy, International Rescue Committee  

Sir Timothy Besley, Professor of Economics of Political Science, London School of Economics 

Abdirahman Duale Beileh, Minister of Finance, Somalia and former Director of the AfDB 

Mthuli Ncube, Minister of Finance, Zimbabwe

Key Points:

Pivotal moments. Panelists agreed that while such moments are easier to identify in retrospect, they occur when the whole society recognizes the need for transformative action. Besley highlighted that they often occur in transitional times, such as at the time of a peace settlement or regime change. Beileh noted that for Somalia, a pivotal moment came in 2012, when, for the first time in twenty years, Somalia established a recognized government.

Steps to address fragility. Beileh stressed the importance of sound governance, trust of citizens, and support from the international community in addressing fragility. Ncube highlighted the need for a holistic approach to improve governance and enhance institutions, while strengthening sectors that are key sources of growth.   Al-Soswa and Ash underscored the key role that women, once engaged, can play in providing solutions to fragility.

International community. Panelists agreed that the issues faced by fragile states require strong involvement by donors and IFIs. Ash and Al-Soswa highlighted the criticality of a development mindset in IFIs to address the complex needs of fragile states in an inclusive way. Furusawa noted that the IMF is strengthening its engagement with fragile states, through financial support, policy advise, and capacity building. Ash and Besley stressed that the brightest and best IMF staff should work on issues related to fragile states.  Al-Soswa and Ash noted that solutions take time and Beileh stressed that without the IMF, the progress made in Somalia would have taken much longer.



Mobile Money in a Fragile State: Implications for Financial Stability and Development

Speaker : Mr. Abdi Mohamed Abdullahi, Governor of the Central Bank of Somalia
Moderator : Mr. Jihad Azour, Director of Middle East and Central Asia Department




How to Design Tax Policy in Fragile States

Publication Date: September 20, 2019 

The purpose of this note is to provide a framework for improving tax policy design in fragile and conflict-affected states, which face political and institutional constraints. 

Implementation Plan in Response to the Board-Endorsed Recommendations for the IEO Evaluation Report—"The IMF and Fragile States"

Publication Date: October 4, 2018

This management implementation plan (MIP) proposes actions to advance the Board-endorsed recommendations of the IEO evaluation “The IMF and Fragile States.”