IMF Conference

Supporting fragile and conflict-affected states (FCS) is an important priority for the international policy agenda. FCS are home to nearly 1 billion people facing a variety of challenges: from low-capacity institutions and the limited provision of public goods, to extreme poverty, forced displacement, and war. Fragility and conflict are also linked to trends such as climate change, food insecurity, and gender disparities. 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 a significant risk of falling behind in their post-pandemic recovery, but also in achieving the Sustainable Development Goals.

The IMF is stepping up its engagement with fragile states and conflict, including by completing its first FCS Strategy. This Strategy aims to enhance the Fund’s efforts 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. The Strategy also emphasizes the role of partnerships with humanitarian, development, peace and security actors, who play a key role in FCS.

The event will herald the official launch of the new IMF FCS Strategy. The panel discussion will focus on the importance of coordinated action in strengthening global support for FCS, and highlight how macroeconomic policy can contribute to existing efforts to support FCS.