Single-tranche and stand-alone policy-based programs can be an appropriate instrument to support reforms in fragile states provided that (i) these take place in the context of an ongoing, long-term development partnership; and (ii) there is a demonstrated government commitment to pursue substantial reforms over an extended time frame. Moreover, such programs need to be supported by ongoing capacity development in key agencies. In fragile states, the risks to implementing and sustaining reforms are amplified by external shocks and natural disasters. During those periods, development partners need to work flexibly with the government to respond not only to crises but also to limit the damage to long-term reform efforts.
Improved Fiscal Sustainability Reform Program