Working Group on Building States and Markets

State building—strengthening the legitimacy, robustness and resilience of the state—has steadily marched up the international community’s agenda in recent years. Unfortunately, the most common state building prescriptions— such as more aid, competitive elections and economic reform—do not seem to work well in practice.

The roots of state fragility lie in the combination of weak social cohesion and feeble state institutions. International action to combat fragility should therefore be first and foremost about encouraging institutional changes that foster a stronger sense of unity and a stronger sense of local ownership. Finding the right balance between decentralization and centralization is key, as is the use and development of indigenous capacities. Countries must be given the ability to solve their own problems.

The GES Working Group on Building States and Markets has two related goals: first, to reach consensus on how the international community can best contribute to state building in developing countries; and second, based on that consensus, to propose a series of practical projects that the GES network can undertake. Any and all recommendations are entertained provided they meet two criteria: they can be implemented by the GES network; and their implementation will help make states more inclusive, more cohesive and more development-oriented.