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Managing Risks in Fragile and Transitional Contexts: The Price of Success?

OECD Publishing, April 2012, Pages: 164

From the anarchy of Somalia to the relative stability of Nepal, fragile and transitional situations represent a broad spectrum of contexts. However, they share some common features: these are risky environments – for the people who live there, for their governments, for neighbouring countries, and for those who seek to provide assistance. Positive outcomes are hard to achieve and the risk of regression in countries emerging from armed conflict is high.

International engagement in these situations presents significant risks for donors and implementing partners, but also holds the potential for substantial rewards in terms of improved results and outcomes. Indeed, more often than not, the risks associated with not engaging in these contexts – both for the countries themselves and for the international community – outweigh most of the risks of engaging in the first place. The question therefore is not whether to engage but how to engage in ways that are context-specific and do not come at an unacceptable cost.

This publication provides the evidence to help donors understand how to balance risks and opportunities in order to protect the integrity of their institutions while delivering better results to those who need it most.

Acronyms

Preface

Executive summary

Chapter 1. Aid, risk and state fragility
-What risks are involved? A new typology
-Concepts and definitions: fragility, transition, risk
-International principles, agendas and frameworks
-Tensions and contradictions

Chapter 2. Risk perceptions and analysis
-2.1. Risk in development and humanitarian policies
-2.2. How do donors assess and report risk?
-2.3. Bridging differences in risk perceptions and tolerance

Chapter 3. Approaches to managing risk in fragile states
-3.1 Institutional approaches to risk management
-3.2. Financing in risky settings
-3.3. Technical assistance

Chapter 4. Ways forward: taking appropriate risks
-4.1. Risk management: lessons from other sectors
-4.2. Understanding corruption and the risks it presents
-4.3. Local procurement: risk and opportunity

Chapter 5. Conclusions and recommendations
References

Annex A. Bases of risk analysis
Annex B. Some policy dilemmas of intervention in fragile contexts
Annex C. A typology of corruption-related risks
Annex D. List of interviews
Annex E. Conclusions and proposed next steps: “Risk and Results Management in Development Cooperation: Towards a Common Approach”. Copenhagen 26 November 2010
Annex F. Terms of reference: Framing Paper on Risks and Risk Management Strategies Associated with the Delivery of International Aid to Fragile and Conflict-Affected Countries

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