Fragile and Conflict-Affected Situations (FCAS)
ADB classifies 11 countries as FCAS: Afghanistan, the Federated States of Micronesia (FSM), Kiribati, the Lao People’s Democratic Republic, the Marshall Islands, Myanmar, Nauru, Papua New Guinea, Solomon Islands, Timor-Leste, and Tuvalu.
These countries are classified based on an assessment of quality of macroeconomic management, coherence of structural policies, degree to which policies and institutions promote equity and inclusion, quality of governance and public sector management, and performance of concessional assistance project portfolio.
FCAS DMCs are generally characterized by political instability, weak governance and institutional capacity, economic and social insecurity, and greater vulnerability to the effects of climate change and natural hazards. While an FCAS designation is typically ascribed to a country, it sometimes describes a subnational territory that has been destabilized due to fragility, conflict, and violence. In Asia and the Pacific, subnational conflict is the most common type of conflict involving violence.
Small Island Developing States (SIDS)
Small island developing states (SIDS)—as they self-identify—are a distinct group of DMCs with specific social, economic, and environmental vulnerabilities, including geographic remoteness and dispersion, small populations and markets, narrowly based economies, low fiscal revenue, high import and export costs for goods, and increasing exposure to natural hazards and climate change.
SIDS in Asia and the Pacific are affected by extreme fragility that can threaten lives and livelihoods, strain state capacity and service provision, and exacerbate local tensions over scarce land and other resources.
Sixteen ADB DMCs are SIDS: Cook Islands, the FSM, Fiji, Kiribati, the Marshall Islands, Maldives, Nauru, Niue, Palau, Papua New Guinea, Timor-Leste, Samoa, Solomon Islands, Tonga, Tuvalu, and Vanuatu.
SIDS generally share the same structural constraints, regardless of whether they also are categorized FCAS. The small size, remote locations, and narrow asset bases (often concentrated in resource extraction, agriculture, and/or tourism) of most SIDS complicate public service delivery and leave them exposed to external economic shocks, natural disasters, and the impacts of climate change, threatening lives and livelihoods and creating debt sustainability issues. For the four SIDS that are atolls, rising sea levels are an existential threat. SIDS can also be affected by instability or conflict—several Pacific SIDS have experienced periods of political instability or conflict in the 21st century. Gender inequality as both a cause and consequence of fragility and instability affects FCAS and SIDS, and some Pacific SIDS experience a high prevalence of gender-based violence.