You are here: Home Knowledge Base Polity Repairing Failed States Solutions Transform aid delivery by establishing trust funds co-managed by the state and donors, developing sector-wide approaches where donors pool funds, and giving management of sector programs to the local government.
Symposium 2009

Solution for Repairing Failed States

The Challenge

In a number of territories primarily situated in the poorer parts of the world, the state no longer performs its basic security and development functions. Beyond causing hardship for their own citiz ...

In a number of territories primarily situated in the poorer parts of the world, the state no longer performs its basic security and development functions. Beyond causing hardship for their own citizens, failed states provide breeding grounds of organized crime and terrorism.

Transform aid delivery by establishing trust funds co-managed by the state and donors, developing sector-wide approaches where donors pool funds, and giving management of sector programs to the local government.

The consensus was to repair failed states not by way of development aid. Aid in general does not go into development, as the history of development show. But in failed states, international moneys go to non-state actor, usually NGO“s or agencies/companies of donor countries. This weakens these states even more.

Instead of bolstering the establishment of government systems for public finance and budgetary management, foreign aid often undermines them or preempts their creation. The channeling of aid to projects managed entirely by donors or non-governmental organizations (NGOs), although convenient and at time necessary, can have deleterious effects of enormous proportions in creating sites of patronage and decision-making beyond the reach of the state.

Budget support—or the direct transfer of resources to national treasuries in fragile states—is extremely difficult where skills are lacking and fiduciary risks are high. But the danger of establishing organizations “parallel to the state” (creating what is in effect a “dual public sector”) can preempt the creation of capacity within states and undermine states, including their representative organizations.

Donors should deploy aid in ways that enhance government systems of decisionmaking on resource deployment: establishing trust funds co-managed by the state and donors and developing sector-wide approaches where donors pool funds; but more importantly giving management of sector programs (health, education,and infrastructure) to the local government, ensuring that projects are managed by officials under adequate and audited systems.

At any rate, institutional development that furthers a fragile state“s ability to discharge the basic tasks—using force, using money, and protecting property—is the most important road out of failure and fragility.

    Implemen- tations

    Implementation
    Symposium 2009

    Liberia’s Health Sector Pool Fund

    Polity, Academia, Business, Civil Society

    Related Solutions

    Solution
    Symposium 2009

    Demand excellence in execution of promised reforms.

    Demand excellence in execution of promised reforms.

    Demand excellence in execution of promised reforms.

    Polity
    Solution
    Symposium 2009

    Target donor assistance and support at promoting economic production, especially in agriculture.

    Target donor assistance and support at promoting economic production, especially in agriculture.

    Target donor assistance and support at promoting economic production, especially in agriculture.

    Polity, Academia, Business, Civil Society
    Solution
    Symposium 2009

    Invest into research on the local socio-political context and unify donor assistance to leverage local capacities and social relationships to promote state-building.

    Invest into research on the local socio-political context and unify donor assistance to leverage local capacities and social relationships to promote state-building.

    Invest into research on the local socio-political context and unify donor assistance to leverage local capacities and social relationships to promote state-building.

    Polity, Academia, Business, Civil Society