The private sector—an engine for growth and stability in fragile countries

Fragility, conflict and violence (FCV) threaten to derail significant progress that has beenuntitled made in improving living standards and reducing poverty over the past decades. While extreme poverty is going down around the globe, it is increasing in countries impacted by fragility and conflict. The World Bank estimates that by 2030, almost half of the world’s poor will live in countries facing FCV challenges.

In countries affected by fragility, conflict and violence, the private sector plays a critical role in providing jobs and income.  Inclusive and sustainable economic growth can also help heal grievances stemming from economic exclusion. These countries likely already face high levels of public sector debt, so private sector investment can bring an infusion of capital without increasing the debt burden. But these volatile environments struggle greatly to attract and sustain the long-term private sector investment that is needed to help them break the “fragility trap.”

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Launching global consultations on the World Bank Group’s upcoming Strategy for Fragility, Conflict and Violence

April marked the official launch of global consultations to inform the World Bank Boys Play Football Near IDP Camp in MogadishuGroup’s first-ever Strategy for Fragility, Conflict and Violence (FCV). Over the next two months, World Bank Group teams will engage with civil society and government representatives, as well as partner organizations and the private sector to discuss priorities and challenges in FCV situations , building on the comparative advantage of the Bank Group in fragile settings. As we embark on this process, the most relevant question for us is how to build on progress made and optimize our interventions to be our most effective on the ground, with special focus on making a lasting difference for the most vulnerable populations. Furthermore, in FCV settings, we know that no single organization can act alone – as the World Bank Group, this strategy is about positioning our analytical, operational, and convening power to contribute to broader international efforts in support of peace and prosperity.

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“Real governance” in Fragile, Conflict-affected and Violent States – What is that?

The Fragility Forum was held in Washington D.C. from March 5 to 7. More than 1,000 people from over 90 different countries attended. At one of the events, ‘Real Governance in FCV settings: Engaging State and Non-State Actors in Development’ practitioners and policy-makers discussed which actors to work with in complex FCV situations, and what the choice of actors would mean from a human rights and social accountability perspective.

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