Fragile and Conflict-Affected States (FCS)

Fragile and conflict-affected states are home to nearly 1 billion people facing many challenges—from low-capacity institutions and the limited provision of public goods to extreme poverty, forced displacement, and even war. Fragility and conflict are also linked to trends such as climate change, food insecurity, and persistent gender inequalities. The economic impact of the COVID-19 pandemic has been most severe in FCS, where per capita incomes are estimated to recover to 2019 levels only after 2024. If these trends persist, 60 percent of the global poor may live in FCS by 2030. FCS are at thus a significant risk of falling behind in their post-pandemic recovery, but also in achieving the Sustainable Development Goals. In addition, spillovers originating in FCS can also threaten macroeconomic stability and inclusive growth prospects in neighboring countries and regions.

Therefore, the IMF is stepping up its engagement with fragile states, including by completing its first FCS Strategy. This Strategy aims to provide robust, well-tailored, and longer-term support to help these vulnerable countries achieve macroeconomic stability, strengthen resilience, promote sustainable and inclusive growth, and exit fragility. While the Strategy is primarily focused on FCS, it is also relevant for countries at risk of becoming fragile and conflict-affected—whether due to internal factors or external shocks and spillovers

The IMF’s new FCS strategy has been developed through an extensive consultation process. The Fund has received feedback from over 55 organizations including the World Bank and regional development banks, the United Nations system, civil society organizations (CSOs), think tanks, and academia.