Conflict and Fragility : Resource Flows to Fragile and Conflict-Affected States

This report serves as a tool to better monitor the levels, timing and composition of resource flows to fragile states, and presents salient facts on aid flows to fragile states, the impact on fragile states of the three crises and the need for a whole-of-government response.


Fragile states lag far behind meeting the Millennium Development Goals (MDGs) by 2015, representing 75% of the MDG deficit. Fragile states already lacked the institutional strength to adequately respond to both financial and environmental shocks. The effects of three consecutive and inter-related shocks – food, fuel and the secondary effects of the financial crisis – risk reversing progress achieved by some post-conflict states, and further entrenching insecurity in others. Although official development assistance to fragile states is growing in real terms, it is increasingly concentrated, and half of fragile states face the prospects of declining aid. There is a need to maintain aid levels and meet aid pledges, but also to improve the quality of support to fragile states.

Table of contents
Abbreviations
Executive summary
Introduction. Why fragile states matter
Bibliography
Part I. The impact of the global financial crisis on fragile states and the response
Chapter 1. Impacts of the crisis
Direct impact on fragile states: variations across countries
Secondary impacts on economic and human development
Implications for fragility, security and political stability
Bibliography
Chapter 2. Responses to the global crisis
Current responses
Looking forward
Bibliography
Part II. Aid flows to fragile states: disappointing projections in times of need
Chapter 3. Trends in official development assistance
Official development assistance flows to fragile states
Bibliography
Chapter 4. Aid effectiveness
Managing and spending aid resources, volatility and predictability
Bibliography
Chapter 5. OECD DAC member presence, concentration and fragmentation
A challenge for fragile states
Country-level fragmentation and concentration
Sector fragmentation
Bibliography
Chapter 6. ODA and non-ODA funds for security, statebuilding and peacekeeping
ODA funds for security, peacebuilding and statebuilding
Non-ODA for security-related activities
Combining ODA and non-ODA funds to address security needs
Sequencing of aid to post-conflict countries
Challenges to providing aid to post-conflict countries
Bibliography
Part III. The need for a whole-of-government response
Chapter 7. South-South co-operation, trade, investment and finance
A changing landscape
The wider context: developments in South-South investment, trade and finance
Growing volumes of development co-operation beyond the DAC membership group
Looking forward
Assistance to fragile states
Development partners providing humanitarian assistance beyond the DAC
Bibliography
Chapter 8. Global funds and foundations
Global funds
Bibliography
Chapter 9. Private resource flows
Foreign direct investment
Exports and imports
Remittances
Illicit flows
Bibliography
Chapter 10. Domestic revenue
Trends in domestic revenues
Bibliography
Annex A. Methodology
Gaps and constraints
Related initiatives
Annex B. Statistical annex
Annex C. Background

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