Peace and fragility are two of the main topics in international development cooperation. While the international community has seen the promotion of peace as a key element for achieving sustainable development since the last century, the concept of fragility has only become established since the turn of the millennium. Thereby, the term ‘fragility’ is generally used to denote those states in which institutional rules and regulations exhibit significant deficiencies regarding their monopoly in the use of force, capacity to deliver services and/or legitimacy. More specifically, fragile contexts are characterised by a heightened propensity to large-scale violent conflict. Acting on behalf of the German Federal Government and using Federal Government funds, KfW Development Bank is working to reduce fragility and promote peace via a wide range of short and longer-term measures.
KfW Development Bank is implementing a steadily growing number of projects in fragility contexts. As at 31 December 2019, with a volume of EUR 19.0 billion, the “PFD Portfolio” made up 35% of the total current FC portfolio, which is worth EUR 54.3 billion. The “PFD Portfolio” is composed of three interrelated fields:
(1) Involvement in states which OECD/DAC (2018) has classed as “fragile”
(2) Use of funds for projects with a concrete link to the topic of “forced displacement”
(3) Measures which aim to promote peace and/or reduce fragility (FS 1/FS 2)