Prioritising support for fragile and conflict-affected contexts

More than half of the world’s poorest people live in fragile and conflict-affected contexts. It is often in such situations that development assistance could make the largest difference. The cost of not acting is potentially high, given that fragility, conflict and violence may threaten to reverse hard-won development gains. Norway works actively to keep the World Bank engaged in fragile and conflict-affected contexts and will continue its efforts to reduce poverty and inequality in keeping with its long-term development mandate and strategy for fragility, conflict and violence. It is vital both to uphold the ‘do no harm’ principle and to tailor solutions to suit individual national contexts. Prevention, conflict-sensitivity and integrated approaches are to be emphasised, along with private sector development and job creation, which may themselves have a stabilising effect. Norway supports the World Bank’s focus on job creation, framework conditions, investment and local private sector development in fragile and conflict-affected countries. In such countries the World Bank is an important cooperation partner due to its financing capabilities, its financial control systems and its ability to reinforce national systems and build institutional capacity. Cooperation with national and local actors, including local civil society organisations and providers of education and training, is crucial.

About 40 % of IDA funding goes to fragile and conflict-affected countries, with a particular emphasis on Africa.19 The primary model involves cooperating with a country’s authorities to build systems and institutions. When this is not possible, Norway is supportive of the World Bank working through a third party, such as UN organisations and international civil society actors.

The World Bank also plays a significant role supporting refugees and internally displaced persons in coordination with other actors, particularly through IDA’s Window for Host Communities and Refugees. Norway supports the continuation of this work, which is a key aspect of World Bank efforts to eliminate poverty and inequality. Earmarked support to country-based trust funds, which underpin the work of the World Bank in countries such as Afghanistan, Ukraine and Somalia, is also crucial. In especially vulnerable areas the World Bank relies on external consultants for third-party monitoring to control the use of funds and prevent corruption. These are important measures, which Norway supports subject to cost-effectiveness requirements.

Women and girls are disproportionately affected by conflicts and climate-related disasters but are also important contributors to resilience and reconstruction. Norway seeks to ensure that the work of the World Bank emphasises gender equality in accordance with Sustainable Development Goal 5 on gender equality and UN Security Council Resolution 1325 on women, peace and security. Norway supports the World Bank’s reconstruction efforts based on the domestic priorities of the countries involved and international consensus.20

In 2026 the World Bank will adopt a revision of its strategy for fragility, conflict and violence. The principle of remaining engaged in challenging situations will continue to guide the World Bank’s efforts, though with greater selectivity through a differentiated approach. Norway and the Nordic-Baltic constituency seek a continuation of the World Bank’s broad, integrated engagement, which is crucial in fragile, conflict-affected countries in Africa and Asia as well as in conflict-affected countries and countries in transition in the Middle East. Support for Ukraine occupies a unique position and carries important lessons applicable to other contexts.

Ukraine

The World Bank turned around quickly in the wake of Russia’s war of aggression and by January 2026 had mobilised USD 88 billion in support for Ukraine. The World Bank is a key channel for Norwegian development assistance and cooperation with Ukraine in accordance with guiding principles directing that Norwegian civilian support go through established and internationally recognised organisations with a proven ability to deliver results, ample capacity and effective control systems.21 By January 2026 Norway had channelled a total of NOK 13 billion in earmarked support to Ukraine hrough the World Bank, including NOK 11 billion via the Ukraine Relief, Recovery, Reconstruction and Reform Trust Fund (URTF). This support is directed towards government administration, crisis response and reconstruction and reforms associated with EU membership in addition to private-sector development measures through IFC and MIGA.

The World Bank serves a key coordinating role in Ukraine and provides important analyses, thematic expertise and capacity in close cooperation with the UN and other international financial institutions. Reforms associated with long-term development and EU membership are a major focus. The World Bank has extensive systems in place to manage the risk of corruption and financial irregularities and to ensure compliance with environmental and social standards and the inclusion of groups in vulnerable situations. The World Bank is also an important channel for supporting the private sector in Ukraine through the use of loans and risk mitigation, including for foreign companies that wish to invest in Ukraine. Norway will continue providing support for the World Bank’s efforts in Ukraine.

Palestine

For more than 30 years, the World Bank has been an important adviser to the Palestinian authorities on efforts to build Palestinian institutions, which are crucial to the pursuit of a two-state solution. The World Bank has also been an important adviser to Norway in its role as chair of the international donor group for Palestine (the Ad Hoc Liaison Committee, AHLC). It is vital that donor investments made over many years to help develop Palestinian institutions are not lost, as this would mean the de facto end of the potential for a two-state solution. The World Bank has been, and remains, of central importance to the Palestinian authorities, including with regard to implementing reforms. Continued support to the Palestinian authorities, both direct and through multilateral channels such as the World Bank, is therefore of major importance.

The reconstruction of Gaza will be one of the largest international projects of the years to come. The World Bank has the ability to play an important role providing advice, expertise and financing in close coordination with the UN and other humanitarian and development actors. Beyond the necessity of repairing damaged infrastructure is the need to create a viable and sustainable economy. This will require substantial resources and reliable financing mechanisms with sound management structures. There is broad international support for robust engagement by the World Bank in Gaza and the West Bank. Norway will continue its already close cooperation with the World Bank and will underscore the necessity of Palestinian ownership and territorial integrity.

The Government will :

• Prioritise support for fragile and conflict-affected contexts and strongly support World Bank engagement in line with the World Bank’s long-term development mandate.
• Emphasise the importance of good governance, gender equality, stronger institutions, anti-corruption efforts and conflict sensitivity in countries characterised by fragility, conflict and violence.
• Strengthen efforts to create sound frameworks for private sector development and mitigate risk for private investments in fragile and conflict-affected contexts.
• Encourage the World Bank to expand its presence in fragile and conflict-affected contexts, prioritise support for local private sector development, and work through third parties as necessary.
• Continue supporting the World Bank’s efforts in Ukraine with an emphasis on good governance, reforms for EU membership, long-term reconstruction and support for the private sector.
• Extend Norway’s close cooperation with the World Bank on support for Palestine and reconstruction of Gaza.