Scaling up development finance can bring peace in fragile countries

  • Poverty, economic risk and uncertainty are linked to global problems, such as conflict, migration, terrorism and trafficking.
  • Development finance has a central role in catalyzing growth in fragile countries but insufficient incentives hinder investments with potential for peace building.
  • An all-system shift is needed from DFIs, their shareholders, private sector entities and the governments and civil society groups of fragile countries to improve investment outcomes for fragile states.

The number of people living in poverty in fragile and conflict-affected countries is estimated to reach 360 million by 2030. Lifting people out of poverty in places affected by low government capacity, poor infrastructure and high political and economic risk and uncertainty is a critical challenge and key to addressing global problems such as conflict, migration, terrorism and trafficking. Tackling this challenge is even more pressing in the face of looming food insecurity due to the worsening climate crisis and the soaring food and fuel prices brought on by the war in Ukraine.

I am the convenor of the Council on State Fragility, which brings together prominent global leaders who are passionate about addressing the challenges of state fragility. The Council recognizes private sector growth and the jobs, incomes, goods and services it provides as essential for countries to move out of fragility. Development finance has an especially central…

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