Knowledge Note

This brief, drawn from the evaluation World Bank Group Assistance to Low-Income Fragile and Conflict-Affected States by the Independent Evaluation Group (IEG), offers useful insights for practitioners who design or implement private sector development (PSD) strategies for FCS countries, including Bank Group staff, government officials, nongovernmental organizations, donors, and aid agencies. The IEG found that PSD as a primary vehicle for job creation has not borne results in the short run. The priority given by the Bank Group to investment climate reforms is necessary but insufficient for fostering longer-term growth and jobs in a high-risk environment. The evaluation's key insight for achieving successful engagement and inclusive growth and jobs in FCS is to “do things differently” by adapting assistance programs and instruments to the low capacity of governments and the informality of the private sector.

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