Multinational - Fragile states fund allocation ADF-12

The Bank’s enhanced assistance to fragile states is justified by the uncertain global environment that is characterized by instability in international prices of food and fuel, as well as the threat posed by climate change, youth unemployment and the need to create broad-based economic systems in Africa. These challenges have further placed an enormous development burden on fragile states that continue to rank at the bottom quintile of the UN Human Development Index and account for the majority of the Millennium Development Goals (MDGs) deficits. Indeed, as revealed by the 2011 World Development Report and the September 2010 UN Summit on the Millennium Development Goals no low-income country coping with fragility and conflict has yet achieved a single Millennium Development Goal and generally lag 40% to 60% behind other low and middle income countries in MDG achievement. For MDGs 1, 5, 6 and 7 (reducing poverty, improving maternal health, combating HIV/AIDs and other diseases and ensuring environmental sustainability) only three percent (3%) to seventeen percent (17%) of the thirty two (32) fragile and conflict-affected countries globally assessed are on track to achieving these goals, versus twenty seven percent (27%) to forty eight percent (48%) for non-fragile states. Enhanced support from partners, including the Bank is therefore essential in alleviating the daunting development challenges and accelerating the pace of achieving the MDGs by fragile states in the remaining five (5) years to the deadline of 2015. Accordingly, the FSF was allocated grant resources in the amount of UA 764 million for supporting fragile states in the ADF 12 cycle, representing 87.3% increase over-and-above the UA 408 million allocated to it in ADF 11. Total FSF operational resources available in the ADF 12 cycle, 2011-13 therefore amounts to UA 829.59 million, as at end December 2010, of which UA 764 million are from the ADF 12 allocation and UA 63.19 million from the balance of FSF resources at the end of ADF 11, including the 2008 Net Income allocation from the Bank Group of UA 60 million to the FSF in 2009.