{
  "title": "Countries Hurt by War and Fragility Need Strong Global Partnerships, Resources",
  "publication": "IMF Blog, December 22, 2022",
  "sourceUrl": "https://www.imf.org/en/blogs/articles/2022/12/21/countries-hurt-by-war-and-fragility-need-strong-global-partnerships-resources",
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  "summary": "Supporting fragile and conflict-affected states in an age of compound crises is essential for global stability",
  "sections": [
    {
      "heading": "Current situation and risks",
      "content": "- Fragile and conflict-affected states (FCS) are home to 1 billion people across more than 40 countries.\n- These countries face long-standing challenges: poverty, low-capacity institutions, governance challenges, violence, and recent shocks from the pandemic and Russia’s invasion of Ukraine.\n- Income per capita in fragile states is projected not to recover to 2019 levels until 2024.\n- United Nations estimate: the number of forcibly displaced people increased to 100 million due to Russia’s war in Ukraine.\n- The influx of almost 8 million Ukrainian refugees into neighboring European countries creates short-term fiscal costs and policy challenges for labor market integration and access to social services."
    },
    {
      "heading": "Regional impacts and key statistics",
      "content": "- Sub-Saharan Africa\n  - Home to about half of countries in the FCS category.\n  - Consumer prices have increased by more than 20 percent on average this year.\n  - Public debt is approaching 60 percent of gross domestic product.\n  - Forecast: economic growth in seven countries—Burkina Faso, Central African Republic, Comoros, Eritrea, Mali, Nigeria, and Zimbabwe—will be below the regional average of 3.6 percent this year.\n  - Food insecurity: 123 million people, or 12 percent of the region’s population, face acute food insecurity, equivalent to two-thirds of the worldwide total.\n- Middle East and North Africa (MENA)\n  - More than one-third of countries in the region are FCS.\n  - Growth has remained sluggish at less than 1 percent.\n  - Per capita GDP continues to decline.\n  - Consumer prices are projected to rise by more than 30 percent on average this year.\n  - Inflation will remain in double digits in 2023.\n  - Public debt as a share of GDP is forecast above 60 percent."
    },
    {
      "heading": "Priority 1 — Tailored multilateral engagement",
      "content": "- International financial institutions (IFIs) should remain engaged in stabilizing fragile and conflict-affected economies and fostering inclusive growth.\n- Recent institutional developments:\n  - African Development Bank updated its fragile states strategy.\n  - European Investment Bank adopted its first fragile-states strategy.\n  - World Bank and Asian Development Bank have taken similar steps since 2020.\n  - IMF launched its Strategy for Fragile and Conflict-Affected States in March to strengthen support tailored to constrained policy space in these countries.\n- Examples of IMF support:\n  - Mozambique: program supports vulnerable households through cash transfers, including people forcibly displaced by conflict in the North.\n  - Somalia: support to rebuild key economic institutions and foster stability and growth, including forthcoming debt relief under the Heavily Indebted Poor Countries Initiative with the World Bank.\n  - Yemen: policy advice to help stabilize its economy and reduce food insecurity."
    },
    {
      "heading": "Priority 2 — Financing is key",
      "content": "- Scale up financing to match challenges faced by FCS.\n- IMF and global initiatives provided support during the pandemic:\n  - FCS received $14.3 billion in IMF financing.\n  - An additional $26 billion from last year’s IMF general allocation of special drawing rights.\n- New and existing IMF instruments:\n  - Resilience and Sustainability Trust to provide longer-term affordable financing to address structural challenges such as those brought about by climate change; potential additional source for eligible FCS.\n  - Food Shock Window approved by the IMF’s Executive Board in September to help countries faced with food cost-related balance of payment problems.\n- IMF policy advice, capacity development assistance, and financial support are coordinated with international partners."
    },
    {
      "heading": "Priority 3 — Treating fragility as a global public good",
      "content": "- Fragility evolves and can affect middle-income countries via spillovers from neighboring conflicts.\n- Scaled-up international support is critical for countries providing a global public good by hosting refugees and absorbing spillovers.\n- Multilateral development banks have expanded assistance, including concessional financing to middle-income countries affected by spillovers, with examples cited including Colombia, Ecuador, Jordan, Lebanon, and Moldova.\n- The international community must join forces to manage interconnected risks and strengthen its social contract with the most vulnerable countries.\n\nSource: Countries Hurt by War and Fragility Need Strong Global Partnerships, Resources (IMF blog, December 22, 2022).\n\n---\n\n\n References\n\n- Fragile and conflict-affected states\n- global public good\n- projected\n- Consumer prices have increased\n- make policy decisions\n- Strategy for Fragile and Conflict-Affected States\n- Mozambique\n- Somalia\n- Heavily Indebted Poor Countries Initiative\n- Yemen\n- special drawing rights\n- Food Shock Window\n- coordinated with our international partners\n\nSource: https://www.imf.org/en/blogs/articles/2022/12/21/countries-hurt-by-war-and-fragility-need-strong-global-partnerships-resources"
    }
  ],
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    "Authors: Jihad Azour, Franck Bousquet, Abebe Aemro Selassie",
    "Published: December 22, 2022",
    "Fragile and conflict-affected states (FCS) are home to 1 billion people across more than 40 countries.",
    "These countries face long-standing challenges: poverty, low-capacity institutions, governance challenges, violence, and recent shocks from the pandemic and Russia’s invasion of Ukraine.",
    "Income per capita in fragile states is projected not to recover to 2019 levels until 2024.",
    "United Nations estimate: the number of forcibly displaced people increased to 100 million due to Russia’s war in Ukraine.",
    "The influx of almost 8 million Ukrainian refugees into neighboring European countries creates short-term fiscal costs and policy challenges for labor market integration and access to social services.",
    "Sub-Saharan Africa",
    "Middle East and North Africa (MENA)",
    "International financial institutions (IFIs) should remain engaged in stabilizing fragile and conflict-affected economies and fostering inclusive growth.",
    "Recent institutional developments:",
    "Examples of IMF support:",
    "Scale up financing to match challenges faced by FCS.",
    "IMF and global initiatives provided support during the pandemic:",
    "New and existing IMF instruments:",
    "IMF policy advice, capacity development assistance, and financial support are coordinated with international partners.",
    "Fragility evolves and can affect middle-income countries via spillovers from neighboring conflicts.",
    "Scaled-up international support is critical for countries providing a global public good by hosting refugees and absorbing spillovers.",
    "Multilateral development banks have expanded assistance, including concessional financing to middle-income countries affected by spillovers, with examples cited including Colombia, Ecuador, Jordan, Lebanon, and Moldova.",
    "The international community must join forces to manage interconnected risks and strengthen its social contract with the most vulnerable countries.",
    "[Fragile and conflict-affected states](https://www.imf.org/en/Topics/fragile-and-conflict-affected-states/work-on-fcs)",
    "[global public good](https://www.imf.org/en/Publications/fandd/issues/2021/12/Global-Public-Goods-Chin-basics)",
    "[projected](https://www.imf.org/en/Blogs/Articles/2022/01/21/fragile-and-conflict-affected-economies-are-falling-further-behind)",
    "[Consumer prices have increased](https://www.imf.org/en/Publications/REO/SSA/Issues/2022/10/14/regional-economic-outlook-for-sub-saharan-africa-october-2022)",
    "[make policy decisions](https://www.imf.org/en/Blogs/Articles/2022/12/15/europe-could-do-even-more-to-support-ukrainian-refugees)",
    "[Strategy for Fragile and Conflict-Affected States](https://www.imf.org/en/News/Seminars/Conferences/2022/03/18/strengthening-support-for-fragile-and-conflict-affected-states-fcs)",
    "[Mozambique](https://www.imf.org/en/Countries/MOZ)",
    "[Somalia](https://www.imf.org/en/Countries/SOM)",
    "[Heavily Indebted Poor Countries Initiative](https://www.imf.org/en/About/Factsheets/Sheets/2016/08/01/16/11/Debt-Relief-Under-the-Heavily-Indebted-Poor-Countries-Initiative)",
    "[Yemen](https://www.imf.org/en/Countries/YEM)",
    "[special drawing rights](https://www.imf.org/en/About/Factsheets/Sheets/2016/08/01/14/51/Special-Drawing-Right-SDR)",
    "[Food Shock Window](https://www.imf.org/en/About/FAQ/global-food-crisis-and-food-shock-window)",
    "[coordinated with our international partners](https://www.imf.org/en/News/Articles/2022/09/21/pr22313-second-joint-statement-by-the-heads-of-fao-imf-wb-wfp-and-wto-on-the-global-food-security)"
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