Efforts to reform the international financial architecture have gained urgency in recent years, reflecting rising debt burdens, growing inequality and concerns about the governance of major financial institutions. However, countries affected by conflict and fragility remain largely absent from these discussions, despite facing some of the most acute development challenges. These contexts are often treated as recipients of aid rather than as participants in shaping international financial reform.
This paper, part of UNU-CPR's Reimagining Global Economic Governance series to mark the Fourth International Conference on Financing for Development (FfD4), examines the relationship between international financial architecture reform and fragile and conflict-affected States. While recent global agreements such as the Compromiso de Sevilla and the Pact for the Future acknowledge the vulnerabilities of these countries, the paper argues that a more deliberate approach is needed.
Current financial mechanisms tend to apply uniform solutions that do not reflect the political, social and economic constraints in fragile settings. The paper explores how reform efforts can better respond to the specific needs of these States, including through more flexible finance, stronger alignment with national strategies and greater inclusion in global decision-making.
Read the paper here.