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Supporting Fragile and Conflict-Affected States

17 June 2011

Supporting Fragile and Conflict-Affected States As an organisation that strives to make a difference in even the most challenging circumstances, Crown Agents frequently takes on projects that most other development companies simply wouldn't touch. At any given time, we work on projects in over 100 countries, including fragile and conflict-affected states such as Afghanistan, Haiti, Pakistan, Palestine, Sierra Leone, South Sudan, Yemen and Zimbabwe.

Through our exclusive contract with CHASE OT, the Department of International Development's (DFID) Conflict, Humanitarian and Security Department, we provide 24-hour monitoring, response and management for disasters and emergencies.

Supporting fragile and conflict-affected states is a concern and priority for donors across the globe and as World Bank president Robert B Zoellick said: "Only by securing development can we put down roots deep enough to break the cycle of fragility and violence".

Earlier this year, DFID unveiled the results of its Bilateral, Multilateral and Humanitarian Response Aid Reviews, highlighting its four-year strategy to promote prosperity and reduce poverty across the world.

Aid workerFocusing aid on fewer countries where the need is greatest, putting more money behind effective international organisations and providing a coordinated, impartial response to humanitarian needs were key outcomes of the respective reviews. According to DFID, fragile and conflict-affected states are furthest behind on achieving the Millennium Development Goals with only 10% of them on track to halve poverty and hunger by 2015.

As well as the economic and social costs, armed conflict costs Africa around $18 billion per year, making progress in fragile states imperative to achieve change.

Crown Agents fully supports DFID's commitment to deliver results with transparency and accountability in order to achieve greater value-for-money, improve aid effectiveness and reduce poverty.
Our multi-disciplinary capacity is one of our key strengths, enabling us to provide broad expertise to support fragile states throughout different stages of crises.

Procurement and Supply Chain Services

Crown Agents specialises in delivering vital supplies to difficult environments, particularly those affected by the immediate aftermath of natural disasters and conflict.

Following the Haiti earthquake in 2010, we worked with the Republic of Haiti and the World Bank to rapidly rebuild essential infrastructure and institutions. This included drafting an accounting and financial procedures manual, developing project procurement plans and preparing the annual budget.

In post-conflict Sudan, Crown Agents undertook all procurement functions for goods, works and services on behalf of the government with contracts valued at US$700 million. During the project, which ran from 2007-2009, we also provided on-the-job training and mentoring to develop capacity within line ministries.

Aid Management and Aid Effectiveness

Effective aid management is especially important in fragile states, where the need to rebuild country systems is crucial. Crown Agents helps to strengthen government systems to ensure aid funds are managed effectively by advising donors on the design and management of grant facilities, pooled funds and other financial disbursement systems.

In 2006-2007, under the World Bank, we evaluated the Post-Conflict Fund (PCF), set up in 1997 to award grants for physical and social reconstruction initiatives in post-conflict environments. We organised reviews, surveys and focus groups to assess everything from childhood development services to the promotion of inter-ethnic dialogue, and we concluded that the PCF achieved satisfactory outcomes.

Prior to this, in 2001 Crown Agents Bank pioneered an innovative and transparent system with Da Afghanistan Bank, which enabled organisations to transfer funds via Crown Agents Bank to Kabul, where reconstruction project workers could withdraw cash rather than having to hand-carry it. Auditors were impressed by the transparency of the system and we further enhanced security by training bank staff in Kabul.

Governance and Institution Building

Crown Agents supports nascent governments in the transitional and rehabilitation phase by providing services tailored to suit clients' political, economic and administrative environments.

From 2005-2008, with DFID funding, we supported the Ministry of Interior flagship project under the Iraq Governance Framework Agreement, to support institutional reform by providing a legal and regulatory framework, procurement and contracting, IT and human resource management.

In Punjab, under the Public Resource Management Programme (PRMP), a whole-of-government reform initiative backed by the Asian Development Bank, we have since 2008 provided a range of consultancy services.

We have assisted with public financial management, reformed the Punjab Economic Research Institute (PERI) and since 2009, helped the Punjab Economic Opportunities Programme to tackle poverty in the poorest districts through skills development and livestock sector interventions.

Public Finance Management

Central to the construction of successful states is the establishment of well-functioning Public Financial Management (PFM) systems. We have extensive hands-on experience of state building through institutional strengthening and PFM reform, helping countries to reform and grow.

In Zimbabwe, we have been working with the Ministry of Finance since 2010 to implement its Three Year Macro-Economic Framework and the Government Work Programme. Working with local partners, we are helping to improve the budget preparation process by providing fiscal framework support, budget formulation and execution, aid coordination and capacity building for sustainable development.

Finally, in Sierra Leone we have supported the National Revenue Authority to implement a Goods and Services Tax (GST), as well as training and audit programmes, which have generated revenues in excess of Le 9.5 billion and doubled the GDP-to-tax ratio.

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