Aid Effectiveness in Fragile States: How Bad Is It and How Can It Improve?

Fragile states around the world are at risk of being left behind, making them a high priority for increased foreign assistance. But is the donor community capable of delivering that aid effectively? To explore this question, this report develops a set of aid effectiveness indicators that are relevant to aid-giving in fragile states and that allow a fair comparison of aid practices in fragile and stable countries. It then makes that comparison using different definitions of fragility. Under certain definitions, it shows that aid practices in fragile states are inferior to those in stable countries. It then turns the spotlight onto individual donors, revealing substantial variety in their performance in fragile settings. The patterns found among donors point to workable, though difficult, ways to raise the standard for aid in the countries that need effective aid the most. Chief among these is a call for the worst performing bilateral donors to withdraw themselves from fragile states and support a larger role for multilateral agencies in their place.