Fragile States: Defining Difficult Environments for Poverty ... - INEE

Fragile States: Defining Difficult Environments for Poverty ReductionAnnex 1: Core Elements ofDevelopmental Capacity and WillingnessThe following tables present some key criteria for assessing state capacityand willingness. They are not measurement checklists or determinants ofcausality for difficult environments. They are intended as lists of factors thatindicate to what extent a state lacks the capacity and/or willingness tomobilise resources for poverty reduction. They may also serve as a first steptowards quantitative proxy indicators for measurement.Table 1: Indicators for the developmental capacity of a stateA) FOUNDATIONS OF STATE AUTHORITY►Territory control and • Control of external borders and internal territorypresence• Monopoly over legitimate use of violence andcoercion► Internationalsovereignty• Provision of human security• Juridical statehood: recognition of an entity(territorial and political) as a member of theinternational system► Rule of law • Ability to assert and enforce the primacy ofnational policies, laws, and norms of social andpolitical behaviour over all groups• Access to justice, particularly for the poorB) EFFECTIVE EXERCISE OF POLITICAL POWER► Formal andinformal distribution ofpower► Autonomy andstability of politicalinstitutions• Existence of effective checks (explicit orotherwise) on executive power• Autonomy: public institutions not used primarilyfor private gain• Stability: ability of public institutions to manageconflict (both at elite and wider social levels)• Ability of public institutions to engage withpopulation through some link of representation.► Engaging with thepopulationC) COMPETENCE IN MACRO-ECONOMIC MANAGEMENT► The building blocksfor monetary andfiscal policy► Regulatoryframework thatfacilitates economicactivity• A credible currency• A central bank (or similar authority withcompetence over monetary policy)• A ministry of finance (or equivalent organ withauthority over policy and distribution of resourceswithin government)• A consolidated and transparent budget process(formulation and execution)• A revenue base (budget envelope and some formof tax system)• Predictability in the use of productive assets foreconomic activityThis working paper is intended to stimulate public discussion. It is not necessarily DFID orUK Government policy26