The Growing Crisis of Fragile Economies: A Call for Urgent Global Action

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Extreme poverty is rising at an alarming rate in countries plagued by conflict, fragility, and instability—marking a troubling reversal in global development trends. According to the latest Fragile and Conflict-Affected Situations (FCS) report by the World Bank, these 39 economies now account for nearly half of the world’s extreme poor. This indicates a severe development divergence, as these regions fall further behind in meeting critical goals like job creation, access to education, health services, and infrastructure development.

As of the latest estimates, 421 million people in FCS economies live on less than $3 a day, a staggering figure that exceeds the combined count of the rest of the world’s poorest. These countries are not just struggling—they are regressing on many development indicators. For instance, GDP per capita in FCS nations has declined by an average of 1.8% per year since 2020, signaling economic contraction while the rest of the developing world has, in many cases, resumed growth after the pandemic.

Perhaps more striking is the human cost of fragility. Life expectancy in these fragile economies is on average seven years lower than in other developing countries, and infant mortality rates are double the levels found elsewhere. This disparity highlights not just economic collapse but a fundamental breakdown in systems that sustain life and dignity.

The situation raises a critical question for global policymakers: how can the international community respond effectively to prevent further deterioration and support meaningful recovery? The answer lies in a combination of targeted policy measures, coordinated development aid, and inclusive governance that focuses on resilience rather than short-term fixes.

For example, rebuilding local economies must go beyond emergency relief. It requires long-term investments in human capital, such as education systems that can operate even during conflict, and health infrastructure resilient to shocks. Equally important is the promotion of peace-building and social cohesion initiatives that can stabilize communities and restore trust in institutions.

The World Bank’s report urges a global rethink: these economies cannot be left behind if the world hopes to achieve the Sustainable Development Goals (SDGs) by 2030. With nearly half the world’s extreme poor now living in FCS regions, progress in eradicating poverty globally hinges on targeted support to these fragile areas.

The road ahead is undeniably difficult, but it is not insurmountable. The evidence is clear: unless the growing inequalities between fragile economies and the rest of the developing world are addressed with urgency and empathy, the global development agenda risks becoming irrelevant for millions. The time to act is now—not only to reduce poverty but to uphold the universal values of equity, dignity, and shared prosperity.


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