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Aid flows

Ensuring fragile states are not left behind

Facts and figures on aid to fragile states

Authors: ; Development Assistance Committee, OECD (DAC)
Publisher: Organisation for Economic Co-operation and Development , 2007

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This fact sheet, from the DAC’s Fragile States Group, summarises the latest findings on aid flows to fragile states. It places aid in the broader context of other resources which are needed if the challenges of state building and peace building are to be addressed.

Globally, one billion of the world’s six billion people live in fragile states, with one third of all people surviving on less than USD 1 per day living in these countries. The fact sheet notes that the regional and international spillover effects from these countries: violent conflict, instability, organised crime, migration, and human trafficking, resonate widely beyond the development community.

Donors are responding to the above challenges with more aid. However, 75 percent of Official Development Assistance (ODA) for 38 fragile states benefits just 5 countries, a large part of which is debt relief. The fact sheet further highlights that: 

  • Historical experience suggests generating government revenues is critical to state building and developing state-society relations in the long term. 
  • Natural resource wealth has not induced growth and has been associated with corruption and violent conflict in several countries, including Angola, Chad, Democratic Republic of Congo, Nigeria and Sudan.
  • Remittances to fragile states nearly doubled between 2000 and 2005 and can thus play a positive role in improving the lives of ordinary people and the diaspora can also mobilise international support and attention.
  • Investment is a critical driver of growth and employment; key factors underpinning stability and peace.

Lastly, the fact sheet recognises aid is just one integral component in the international effort in fragile states and one part of the total resource envelope. As such, development, trade, finance, diplomatic and security policy communities must work together if the challenges of peace building and state building, which are often the preconditions for growth and poverty reduction, are to be addressed.