Syndicate content

fragile states

Strengthening governance through the World Bank’s Fund for the 77 poorest countries

Deborah Wetzel's picture
Photo credit: Graham Crouch/World Bank

In my blog “The Governance Gap – can we bridge it?”, I stressed that strengthened institutions and improved governance are especially critical for the world’s most vulnerable countries in IDA, the World Bank’s Fund for the 77 poorest countries.

IDA is the single largest source of funds for basic social services for these governments and every three years, members representing IDA’s 173 donor and borrowing member countries meet to replenish its resources and refine its priorities.

Here are 3 surprising facts about doing business in fragile environments

Alua Kennedy's picture
It’s a secret to no one that getting things done in fragile and conflict-affected (FCS) situations is more difficult than in normal, peaceful environments.

A recent World Bank report “The Small Entrepreneur in Fragile and Conflict-Affected Situations” looked into the motives and challenges of small entrepreneurs in FCS countries and made a number of interesting discoveries. They found that compared to entrepreneurs elsewhere, entrepreneurs in FCS have different characteristics and face significantly different challenges. FCS enterprises tend to be small, informal and to be engaged in sectors that are trade and service oriented.

Three other things they found are illustrated in the charts below. These findings came as quite a surprise to us. 

1. The primary obstacle for entrepreneurs in FCS countries is poor access to finance