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Governance and Public Management

Good governance is critical for development. ADB promotes good governance processes and practices for inclusive, participatory, and sustainable development in Asia and the Pacific.

Fragile and Conflict-Affected Situations (FCAS)

The Marshall Islands are coping with the effects of climate change and rising sea levels.
The Marshall Islands are coping with the effects of climate change and rising sea levels. Photo: Eric Sales/ADB

Many of the region’s poor and most vulnerable live in fragile, conflict-affected, and small island developing states (SIDS). These countries are uniquely susceptible to development challenges such as weak governance, economic and social disruption, geographic isolation, and insecurity. Public service delivery systems seldom function well, and the government's ability to guarantee the basic security of its people is often limited. Conflict and fragility not only impact countries where they occur, but also affect neighboring countries and the global community. The Asian Development Bank’s Strategy 2030 recognizes that fragile and conflict-affected situations (FCAS) and SIDS require special attention, given the risks they present and their larger need for institutional strengthening.

Tailored Approaches for FCAS and SIDS

The challenges facing FCAS and SIDS require long-term solutions, and building capable and legitimate institutions is critical. ADB’s support for fragile, conflict-affected, and small island developing member countries is guided by the FCAS and SIDS Approach (FSA). Consistent with the broader global dialogue on the peace-humanitarian nexus and aid effectiveness, the FSA prescribes tailored, context-sensitive approaches to doing business in FCAS and SIDS. The FSA supports the Sustainable Development Goals and has strong links with the seven operational priorities and the private sector operations plan of Strategy 2030.

Classifying Countries as FCAS

Since 2013, ADB has used a quantitative FCAS classification system harmonized with other multilateral development banks (MDBs). The classification of a country as FCAS qualifies it for additional funding under the Asian Development Fund 13 and the Technical Assistance Special Fund. This system is undergoing a review in 2021 with other MDBs for possible updating of the classification process.

ADB conducts a country performance assessment (CPA) using its country policy and institutional assessment questionnaire. Each country's performance is assessed based on the coherence of its macroeconomic and structural policies, quality of its governance and public sector management, degree to which its policies and institutions promote equity and inclusion, and performance of its portfolio of ongoing projects and programs.

A country is considered FCAS if it has an average rating of 3.2 or less based on the ADB CPA and the World Bank Group country policy and institutional assessment. A country is also considered FCAS if a United Nations and/or a regional peace-keeping or peace-building mission has been present during the previous 3 years.

2020 List of Countries Classified as FCAS

Based on 2020 CPAs, ADB’s approved list of 11 FCAS countries is as follows: Afghanistan, the Federated States of Micronesia, Kiribati, the Lao People’s Democratic Republic, the Marshall Islands, Myanmar, Nauru, Papua New Guinea, Solomon Islands, Timor-Leste, and Tuvalu. Vanuatu, while not officially listed, will remain under monitoring as its most recent score borders the threshold. The next fragile and conflict-affected country classification will take place in 2022 upon the completion of the annual CPA exercise.

Developing member country CPA/CPIA Average
Afghanistan 2.8
Federated States of Micronesia 2.8
Kiribati 3.0
Lao People’s Democratic Republic 3.2
Marshall Islands 2.7
Myanmar 3.2
Nauru 2.6
Papua New Guinea 2.9
Solomon Islands 3.1
Timor Leste 3.1
Tuvalu 2.9

CPA = country performance assessment, CPIA = country policy and institutional assessment.

For more information on the FCAS and SIDS Approach, visit the web page.

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