Annual mdbs meeting on debt issues 11 12 july 2007 washington dc
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Annual MDBs Meeting on Debt Issues 11-12 July, 2007 Washington, DC PowerPoint PPT Presentation

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"Building today, a better Africa tomorrow". Enhanced Engagement in Fragile States by the African Development Bank. Annual MDBs Meeting on Debt Issues 11-12 July, 2007 Washington, DC. Fragile States : Issues for Consideration. Africa on the move: A window of Opportunity

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Annual MDBs Meeting on Debt Issues 11-12 July, 2007 Washington, DC

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"Building today, a better Africa tomorrow"

Enhanced Engagement in Fragile Statesby the African Development Bank

Annual MDBs Meeting on Debt Issues

11-12 July, 2007

Washington, DC

Fragile States:Issues for Consideration ...

  • Africa on the move: A window of Opportunity

  • State of Fragility in a Continuum

  • Framework for Effective Engagement in Fragile States

  • Exit, Quality Management & Funding

  • Conclusion & Issues for further Consideration

Africa on the Move… but Challenges Persist

Dividends of debt relief beginning

to flow

Consensus that MDG targets will not be met

Consensus on the need to focus on results

a unique opportunity to make a collective push

Improved growth and performance in Africa

Increased focus of the global development community on Africa

18 RMCs at Completion Point – Mid May 07

Chart 1: RMCs by HIPC Status

Completion Point

Decision Point

Pre-Decision Point


Burkina Faso











Sao Tomé & Principe


Sierra Leone










Guinea Bissau



Côte d’Ivoire









Expected dates for HIPC Decision & Completion Points...

DSF/DSA Classification of RMCs as at

end-May 2007 ...

State of Fragility in a Continuum…

Development Challenges in Fragile States...

  • Key attributes of main focus: post-crisis/transition states

  • Poor governance structures, political instability andcorruption

  • Severely degraded institutional and administrative capacity

  • Physical infrastructure badly deteriorated or non-functioning,

    and social services are minimal or non-existent

  • Economic activity substantiallycontracted, and human develop

    ment indicators dropped from already low levels

  • Negative regional spill-over effects often large, with traditional

    commercial links severed or badly disrupted

  • .

Limited Current Support to Fragile States …

  • PCEF contribution in 2006 is only about 2.4% of total allocation

Proposed Framework for More Effective Engagement in Fragile States...

  • Provision of supplemental resources (i.e. beyond current ADF allocation)

    primarily for priority infrastructure investments and capacity building

  • Supplemental funding committed up-front for three years, and on grant

    terms, and Funds specifically dedicated from Bank’s ADF-X1 resources

  • Potential support for up to 2 ADF cycles, with exit expected after no more

    than 6 years

Eligibility criteria for supplemental support...

Supplemental Resource Pool (Fragile States Facility) to fund Incremental Assistance in Specific Cases

Supplemental Resource Pool

Eligibility and Engagement

based on limited number of

threshold indicators

to fund incremental assistance in specific cases

  • Eligibility Thresholds:

  • Peace and Security

  • Unmet Needs

Additional allocations for operations in selected post-crisis cases

UA 330 m

Selective capacity building support in other fragile circumstances

Engagement Threshold:

Country Commitment

UA 33 m

  • Supplemental allocations to be anchored in known PBA determined amounts

  • Countries continue to receive annual PBA under ADF-11

  • Supplemental funding of 2X a baseline PBA from ADF-10

  • Funding provided up-front for 3 years, on grant terms

Monitoring and Exit, Quality Management and Funding Mechanism

  • Regular performance assessmentand expected exit after 6 years

  • Annual CPIA exercise under ADF-11 PBA.

  • At close of 3 years, assessment of progress relative to initial


  • Subject to progress & funding, possible renewal for final 3 years

  • Reduction of delivery bottlenecks

  • Variety of improvements underway Bank-wide

  • Rapid response template built on already approved measures

  • Funds mainly derived from dedicated ADF-11 pool

  • Possible financing options remain

  • Preferred option: separate Fragile States Facility (FSF) including

    the PCCF




Conclusions & Issues for further Consideration …

  • Selection mechanism and initial pool of prospective beneficiaries

  • Allocation mechanism: amounts; terms; caps; PBA carve-out, exit

  • Supplemental pool for capacity building support in wider group of Fragile States

  • Track record with PCEF and other efforts to date

  • Implications for Post Conflict Country Facility

  • Relative merits of financing alternatives

  • How to treat / finance possible additional eligible countries

"Building today, a better Africa tomorrow"

Thank You

For Your Attention

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