Peace and security
Peace and security are key requirements for sustainable development. Armed conflict and war destroys economic and social infrastructure, weakens state institutions and drives poverty levels up. Other forms of violence – such as urban crime or violence against women and children – actually cause considerably higher social costs, because they are far more widespread worldwide. Helping to shape the transition from crisis situations to sustainable state structures is a central task that KfW Development Bank takes short and long-term measures to promote on behalf of the Federal Government.
The OECD had previously classified 50 countries as fragile. In its latest States of Fragility 2016 report, the OECD has introduced a new multidimensional that now classifies 56 countries as having “fragile” status. KfW is involved in many of these countries; around one-sixth of our new commitments are destined for fragile states. One focal area of our commitment is preventing crises and promoting peace. Examples include the support for the establishment of peace in Colombia and the “Afghanistan Reconstruction Trust Fund”.
Refuge is a focal point of our commitment
Sixty-five million people are seeking refuge worldwide as a result of civil wars and sustained, recurring crises. On behalf of, and with the help of funds from, the Federal Government and other donors, KfW Development Bank provides support to refugees and the communities taking them in in developing countries.
Refugee aid in crisis regions
In times of crisis, Financial Cooperation can take measures at short notice to help make local living conditions more bearable by maintaining basic services, for example by providing food aid and helping with the labour-intensive reconstruction of basic infrastructure in affected areas, which also creates jobs and allows people to earn an income.
In the medium and long term, the financial cooperation projects can help to counteract the sources of conflict and refugees’ flight, which tend to be political, by reducing poverty and inequality and promoting good governance and transparency. This makes regions more resilient to all kinds of crisis, for example by improving basic services, taking disaster prevention measures and putting insurance cover in place to protect against events such as failed harvests due to drought:
As soon as the situation in the refugees’ regions of origin has stabilised, KfW Development Bank supports their voluntary return and reintegration on behalf of the Federal Government:
The information contained in this online Annual Report 2016 is based on KfW’s Financial Report 2016, which you can download Should this online Annual Report 2016, despite the great care taken in preparation of its content, contain any contradictions or errors compared to the Financial Report, the KfW Financial Report 2016 takes priority.