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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Strong thirsts in fragile countries: walking the water scarce path of refugees

syrian-refugee-kid-water-pointImagine that you must flee home at once. You may be fleeing violence, social tensions, poor environmental conditions, or even persecution. You and your loved ones may walk for several days to find safety, and may even go for periods without food.

What would you need to survive?

The answer is clean water. Finding drinkable water is one of the first steps in your journey to a new home. If you instead consume contaminated water, you risk exposure to several diseases. Drinking water unfit for consumption may not only harm your health in the short run — drinking unclean water may cause life-long health problems. And of course, these problems multiply if entire communities, or even cities, face these health problems.

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Why investors must take a chance in the world’s most fragile countries

untitledFragility, conflict and violence affect more than two billion people across the globe. And while poverty on the whole is declining, that’s not the case in countries affected by conflict. It is these countries plagued by near-constant political and economic instability that are often the ones most in need of private investment. Yet they are also the places few private investors are willing to go. The risks seem to outweigh the rewards.

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