Fragile and Conflict-Affected States (FCS)

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Fragile and conflict-affected states (FCS) are home to nearly 1 billion people facing severe challenges, including weak institutions, limited public services, extreme poverty, forced displacement, and war.
Fragility and conflict are closely linked to climate change, food insecurity, and persistent gender inequalities.
FCS account for almost half the low-income countries, where intense conflicts along with institutional and social fragilities can hinder progress toward middle-income status.
Given their vulnerabilities, these countries are at a significant risk of falling behind in achieving their development objectives.

Fragility and conflict destabilize balance of payments positions, disrupt trade and financial flows, and hinder the development of productive resources.
Crises originating in FCS can affect economic outcomes in neighboring countries and regions.

The IMF has stepped up engagement with fragile states through its 2022 FCS Strategy.
The Strategy provides robust, tailored, and longer-term support to help vulnerable countries:
- achieve macroeconomic stability,
- build resilience,
- promote sustainable and inclusive growth,
- exit fragility.
The Strategy is also relevant for countries at risk of fragility or conflict because of domestic factors or external shocks and spillovers.

The IMF’s FCS strategy was developed through an extensive consultation process and received feedback from over 55 organizations, including the World Bank, regional development banks, the United Nations system, civil society organizations (CSOs), think tanks, and academia.
Since 2020, 25 FCS have received about US$50 billion in emergency financing or as commitments under UCT-quality arrangements.
Fund policy advice in Article IV consultations has taken into account capacity constraints that may limit the traction and feasibility of policy implementation.
CD has been made available to meet the demand and needs of FCS, responding to local circumstances and absorptive capacity.

Greater tailoring of Fund engagement and instruments to the country-specific manifestations of fragility and conflict:
- The Strategy asserts that the implications of fragility and conflict are macro-critical and directly relevant to the IMF’s mandate.
- It outlines principles of engagement to ensure the IMF’s comparative advantage is effectively leveraged to help country authorities in FCS achieve better macroeconomic outcomes.
Stepped-up capacity development to strengthen economic institutions in FCS and greater agility of the IMF’s lending toolkit.
Closer proximity to vulnerable members:
- The Strategy will lead to an expanded Fund presence in FCS to help country authorities respond to economic challenges associated with fragility and conflict, and deliver tailored support over the long run.

FY27 List of Fragile and Conflict-Affected States
- FY27 List of Fragile and Conflict-Affected States (Markdown version)
- FY27 List of Fragile and Conflict-Affected States (PDF)