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Engaging with Fragile States : An IEG Review of World Bank Support to Low-Income Countries under Stress

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    Home to almost 500 million people, roughly half of whom earn less than a dollar a day, fragile states, until recently known in the World Bank as Low-Income Countries Under Stress (LICUS), have attracted increasing attention. The Bank identified 25 such countries in fiscal 2005 based on their income and Country Policy and Institutional Assessment (CPIA) rating. These 25 countries have a number of similarities: their infant mortality rate is a third higher than that of other low-income countries, life expectancy is 12 years lower, and their maternal mortality rate is about 20 percent higher. There are also important differences among LICUS. Some, Angola and Cambodia among them, grew at around 4 percent per annum during 1995-2003; others, such as the Solomon Islands, the Democratic Republic of Congo, and Guinea-Bissau, had negative growth rates of similar magnitude. Some, such as Angola, the Democratic Republic of Congo, Nigeria, and Papua New Guinea, have abundant natural resources, but others, such as Burundi and Haiti, are resource poor. This paper includes the following headings: effectiveness of the Bank's LICUS approach; operational utility of the LICUS identification; classification, and aid-allocation system; the Bank's internal support for LICUS Work; and conclusions, lessons, and recommendations.

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    File URL: https://openknowledge.worldbank.org/bitstream/handle/10986/7155/382850Revised01gile0states01PUBLIC1.pdf?sequence=1
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    This book is provided by The World Bank in its series World Bank Publications with number 7155 and published in 2006.
    ISBN: 978-0-8213-6847-3
    Handle: RePEc:wbk:wbpubs:7155
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    Web page: https://openknowledge.worldbank.org
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    1. Kanbur, Ravi, 2005. "Reforming the Formula: A Modest Proposal for Introducing Development Outcomes in IDA Allocation Procedures," Working Papers 127071, Cornell University, Department of Applied Economics and Management.
    2. R. Lensink & H. White, 2001. "Are There Negative Returns to Aid?," Journal of Development Studies, Taylor & Francis Journals, vol. 37(6), pages 42-65.
    3. P. Guillaumont & L. Chauvet, 2001. "Aid and Performance: A Reassessment," Journal of Development Studies, Taylor & Francis Journals, vol. 37(6), pages 66-92.
    4. Raghuram G. Rajan, 2005. "Aid and Growth: What Does The Cross-Country Evidence Really Show?," Working Papers id:54, eSocialSciences.
    5. Hansen, Henrik & Tarp, Finn, 2000. "Aid and Growth Regressions," MPRA Paper 62288, University Library of Munich, Germany.
    6. Brian Levy & Sahr Kpundeh, 2004. "Building State Capacity in Africa : New Approaches, Emerging Lessons," World Bank Publications, The World Bank, number 14878.
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