CONTEXT
While extreme poverty is going down around the world, it is increasing in countries affected by fragility, conflict and violence (FCV). It¡¯s estimated that by 2030,?up to two thirds of the world¡¯s extreme poor?will live in these situations.? These challenges threaten to reverse efforts to end extreme poverty, and they affect both low- and middle-income countries.?
The impacts on people and economies are stark. Violent conflict has spiked dramatically since 2010 -- conflicts now drive 80% of all humanitarian needs and reduce gross domestic product (GDP) growth by two percentage points per year, on average. Social and economic exclusion, climate change, gender and other inequalities, demographic challenges, illicit financial flows and other global trends contribute to this complexity. FCV challenges do not respect country borders and often spiral into multidimensional, regional or global crises.
This surge in violent conflict has also led to historically high levels of forced displacement. Of the? ?from their homes to escape violence, conflict and persecution, more than 26 million are refugees, the highest number recorded. Around 85% of these refugees are hosted by developing countries, and?76%?of them are still displaced after five years. Such long displacements can have a devastating toll on generations of refugees and deeply impact host communities.
Against this background, the?COVID-19?pandemic?adds even greater stress, threatening to reverse decades of advancements in poverty reduction and development:??
- Countries impacted by FCV will experience their worst recession in five decades.??
- ÐÓ°ÉÂÛ̳ estimates show that an additional?20 million people are living in extreme poverty in countries affected by FCV.
The increasingly protracted nature of FCV situations means that in addition to essential humanitarian support, long-term development investments are needed to protect human capital, build sustainable peace and ensure shared prosperity.
STRATEGY
ÐÓ°ÉÂÛ̳ was founded after World War II to support post-conflict reconstruction in Europe. It has since evolved to address challenges before, during and after crises. The 2020 ÐÓ°ÉÂÛ̳ Group (WBG) strategy for FCV, which applies to its work in low-and-middle income countries, articulates a development approach to FCV which emphasizes:
Helping to prevent crises by addressing root causes like climate change, government transparency and accountability, justice and the rule of law.
In areas of active conflict, staying engaged to preserve key institutions and access to basic services like health and education for the most marginalized.?
Supporting countries in their transition out of conflict.
Supporting refugees and host communities.
Enabling the growth of the local private sector, particularly small and medium enterprises, which provide 80% of jobs in fragile settings.
In the context of the COVID-19 crisis, our support needs to focus on the most vulnerable ¨C and this includes fragile and conflict-affected settings, and displaced populations. This support is focused on preventing, dete