Fragility, Conflict and Violence

Success in fragile, conflict and violent (FCV) contexts has become mission-critical for the World Band Group (WBG) because poverty is increasingly concentrated in countries classified as fragile and conflict-affected situations (FCS): An estimated 400 million of the extreme poor will be living in fragile countries in the next 10 years.

Fragility interacts with other threats like food insecurity, climate change and macroeconomic challenges, posing a critical risk to development outcomes.

• Conflict exacerbates existing fragility in harmful ways, such as by undermining already weak institutions and worsening food insecurity—hunger due to conflict is estimated to have nearly doubled between 2018 and 2023.  75% of acutely food-insecure people live in FCS.
• Seventeen of the top 25 countries most vulnerable to climate-related impacts (Notre Dame Global Adaptation Initiative index) are FCS.
• Fragile and conflict-affected situations make up nearly two-thirds of low-income countries, where intense conflicts along with institutional and social fragilities hinder progress toward middle-income status.
• Severe conflicts are estimated to lower GDP per capita by about 15% after five years.
• Fragility is not confined to borders – instability and violence can spread throughout regions, displaced people can spill over into neighboring countries, and wars can have far-reaching economic and geopolitical implications. Forced displacement is a developing world crisis, which must be addressed with collective action. By June 2025, 117.3 million were forcibly displaced because of persecution, conflict, violence or human rights violations.

Born after World War II, the World Bank’s core expertise includes reconstruction and development to foster stability. In response to rising fragility, it is taking a broader FCV approach to address drivers of instability and build resilience, staying engaged through active conflict, recovery, and transition.

FCV remains a priority for the World Bank under the International Development Association’s (IDA) 21st replenishment round focusing on mitigating FCV drivers and building resilience through better crisis preparedness and response. Special IDA resources will help countries through all phases of conflict: preventing conflict escalation, staying engaged during crises, and creating development opportunities for refugees and host communities.

The World Bank Group’s 2020-2025 strategy to address the drivers of FCV in affected countries and their impact on vulnerable populations aims to contribute to peace and prosperity.

Our support builds on our analysis and strategy in each country affected by FCV, where we are committed to:

• addressing the root causes of fragility before they escalate into conflict;
• remaining engaged in crisis situations to preserve human capital and key institutions;
• strengthening the social contract between citizens and the state;
• ensuring inclusion of the most vulnerable and marginalized.

We are refreshing our strategy, focusing on four strategic shifts: better anticipation and monitoring of risks; a more differentiated approach focused on areas where we can have lasting impact; increased emphasis on jobs; and strengthened strategic partnerships.

Jobs are urgently needed for fast growing youth populations in FCV settings but creating them is harder in FCV settings. Collaboration across WBG is vital for catalyzing job-enabling private investment in these environments. By 2030, IFC aims for 40 percent of annual commitments in IDA-eligible and FCS countries. In FY25, MIGA issued a record $9.5 billion in guarantees across 44 projects, with 18% in FCS. IDA’s Private Sector Window enables IFC and MIGA to catalyze over $6 in commercial investment for every $1 invested.

Donor-funded trust funds are important funding sources supporting the World Bank’s effectiveness in the most insecure environments.

• The State and Peacebuilding  Fund (SPF) is a demand-driven, multisectoral fund that finances rapid, strategic and innovative approaches in FCV contexts across countries—including countries that may not have access World Bank financing—through Bank Executed or Recipient Executed grants.  SPF1.0 (2008-2022) disbursed over US$327 million through 286 grants.  SPF 2.0, established in 2022, with a current fund value of US$76.8 million, as of December 2025, has committed US$56 million through 85 grants.
• The Global Concessional Financing Facility (GCFF)supports middle-income countries hosting a significant number of refugees. Since its establishment, the GCFF has approved over US$ 1 billion in grants enabling over US$8.5 billion in loan financing on concessional terms from partner MDBs. It has supported 44 projects that cut across various sectors, benefiting at least 6.6 million refugees and 8.4 million host community members in job creation, expanding vital public services (such as health and education), policy reform and developing sustainable infrastructure.

The World Bank is helping the Government of Chad manage massive inflows of Sudanese refugees and affected hosts in the East. Through the Refugees and Host Communities Support Project, it has deployed emergency cash transfers to 30,000 vulnerable households and accelerated delivery of basic services—rehabilitating eight health centers, 25 schools, and two water towers in communities along the Chad-Sudan border—easing strains on local communities while improving access for displaced people. The Bank has also supported the government to improve its early warning systems, social registries and legal identity programs for refugees.

The Gulf of Guinea Northern Regions Social Cohesion project supports border communities in coastal West Africa to tackle the spread of extremism and climate risks from the Sahel region. By September 2025, the project had built or renovated over 1,500 climate-resilient structures, like water systems, schools, and health clinics. It created roughly 96,000 new jobs and improved access to services through an innovative community-driven development approach. These jobs offer young people a way to earn income instead of joining extremist groups.

In its first investment in Yemen’s health and education sector in almost 20 years, the International Finance Corporation, the World Bank Group’s private sector arm, in 2025 supported the country’s Al-Mawarid International Company with an $8 million Murabaha facility to build a teaching hospital that will serve over 160,000 patients annually. The investment is supported by a first-loss guarantee from the International Development Association Private Sector Window, and includes advisory services covering employability, financial management and other areas.

IFC and IDB Invest - the private sector arm of the Inter-American Development Bank (IDB) - have announced a $13.5 million investment in projects by Solengy Haiti S.A., a leading solar energy company that aims to provide increased access to electricity for Haitian households, schools, hospitals, and commercial customers. This project scales up a seed investment from the World Bank-Haiti energy fund in Solengy, which operates in a country where only about 47 per cent of the population have access to electricity.

The World Bank-financed Lebanon Roads and Employment project, supported by the Global Concessional Financing Facility, aims to improve transport connectivity along sections of paved roads and boost employment for Lebanese citizens and displaced Syrians by creating short-term jobs. The project supports road rehabilitation and routine maintenance across the country, improving transport connectivity and road safety through better drainage and slope stabilization. By fiscal 2025, more than 530 kilometers of roads had been rehabilitated across the country, creating approximately 1.3 million labor-days of short-term employment for Lebanese and Syrian workers. Moreover, the project is estimated to have benefited around 1.4 million people by enhancing connectivity and access to essential services and employment. The project also provided technical assistance toward a road safety program and introduced an innovative online citizen engagement platform for local communities to report any issues on site.

Partnerships are a central part of the World Bank Group’s work in Fragility, Conflict, and Violence (FCV) affected contexts. In line with this priority, the World Bank has deepened engagement with humanitarian, development, peacebuilding, security, and private sector actors to maximize impact.

In recent years, the World Bank has cultivated mission-driven partnerships that bring diverse stakeholders together to deliver better development outcomes in client countries. These partnerships have improved strategic coherence;, developed analytical tools to identify risks; , and enhanced capabilities in crisis preparedness, early response, and operational effectiveness.

The UN remains one of the World Bank’s key partners, with active collaboration in over 40 conflict- and crisis-affected contexts. The UN-WB partnership leverages each organization’s strengths to deliver complementary technical expertise and more effective interventions in fragile environments. This has enhanced understanding of political economy and security dynamics, improved operational and logistical support, and fostered stronger country-level coordination.

Engagement with multilateral and bilateral partners, non-governmental organizations (NGOs) and civil society organizations (CSOs), and the private sector has expanded. Notable examples include the Multilateral Development Bank Platform on Economic Migration and Forced Displacement, which enhances strategic alignment and operational coordination;  collaboration with bilateral partners that complements the World Bank’s development mandate in advancing policy dialogue, analytical work, and coherence on global public goods; and  partnerships with NGOs and CSOs, with on-the-ground presence in FCV settings, where few others can operate, strengthening the World Bank’s impact.

Looking ahead, the World Bank will prioritize partnerships that most affect  WBG program impact –providing leadership and strengthening alignment across development partners,  structuring partnerships with regional and international organizations with a political and security mandate; and contributing to global debates shaping the FCV landscape.