The sixth annual report on fragile states from the Organisation for Economic Co-operation and Development (OECD) analyzes the changing face of fragility, financial flows and future issues.
It notes that no fragile state has achieved a Millennium Development Goal (MDG), and cautions that climate change and environmental degradation will more directly and severely impact fragile states.
6 December 2012: The Organisation for Economic Co-operation and Development (OECD) has released its “Fragile States Report 2013: Resource flows and trends in a shifting world.” The report illustrates the many dimensions of fragility, including economic, environmental, political, security and social dimensions.
The report highlights that no fragile state has achieved a single Millennium Development Goal (MDG). Although almost half of the fragile states are middle-income countries, poverty is concentrated in fragile states, and income inequality remains high. The report also notes that conflicts and crises can cross borders, and “pockets of fragility” can exist in stable countries, threatening global and regional stability. Further, climate change and environmental degradation will more directly and severely impact fragile states.
Official development assistance (ODA) is the largest source of financing in fragile states, followed by remittances and foreign direct investment (FDI). The report finds that fragile states have reformed their tax administration and policies, with the average fragile state collecting 13% of its GDP from taxes in 2009 compared to 9% in 2000. The report expresses particular concern about the effects of declining ODA on Afghanistan, Chad, Kosovo, Nigeria and Sudan.
The report is organized around ten questions. The “changing face of fragility” chapter analyzes how fragile countries fare on economic growth, human development, violence and poverty, and how fragility matters. Another chapter considers: financial flows; evolution of aid flows; changes in aid quality; FDI and international trade; remittances; and tax revenue possibilities. The final chapter explores aid, growth and poverty prospects for fragile states, issues likely to shape fragility in the future, and future international engagement in fragile areas and states.
This report is part of OECD’s Development Assistance Committee (DAC) project on monitoring fragile states’ resource flows. It analyzes quantitative data from 47 fragile states and economies. The report will be launched at the World Bank on 11 December 2012 and at the International Peace Institute on 12 December. [Publication: Fragile States 2013: Resource Flows and Trends in a Shifting World]