Building statistical capacity in fragile and conflict-affected states

This paper reviews the IMF’s efforts to improve statistical capacity in FCV states, highlighting challenges in data collection due to instability and offering case studies on capacity development and data quality improvement in FCV contexts.

In this working paper, Medina Cas, Alem, and Shirakawa (2022) review the International Monetary Fund’s (IMF) efforts in building statistical capacity within fragile and conflict-affected states (FCS), focusing on the role of statistical capacity building in helping these countries formulate macroeconomic policies. Given the weak institutional structures and persistent external shocks in FCS, enhancing statistical capacity remains challenging but critical. The paper provides insights into the nature of statistical capacity development (CD) delivery, highlighting the role of donor support, regional capacity development centres, and innovative approaches like remote learning and Big Data to address gaps in traditional data collection methods.

Key features

• Challenges of statistical CD in FCS: The resource identifies significant obstacles such as weak institutional capacity, inadequate resources, and political instability, which disrupt effective data collection and usage.
• Statistical innovation and Big Data: Examples from FCS demonstrate how countries have used alternative data sources like mobile money and administrative records to improve macroeconomic data collection, overcoming the difficulties of traditional methods.
• Tailored CD strategies: The paper emphasises the need for customised approaches to CD, varying according to each country’s fragility, and highlights the benefits of long-term, flexible support that adapts to emerging risks.
• Donor involvement and regional support: Donor-funded initiatives, particularly through regional capacity development centres (RCDCs), play a key role in providing long-term engagement and tailored CD in FCS.
• Case studies: Country case studies (Djibouti, Haiti, Kosovo, Madagascar, Myanmar) provide in-depth analysis of the impact of CD interventions in varying contexts of fragility.

How would you use the resource?

This resource is useful for M&E practitioners engaged in building or supporting data collection systems in fragile states, particularly those focused on economic and financial statistics. It can guide them in understanding how to tailor CD approaches based on the level of fragility and institutional capacity. The paper’s examples of statistical innovation (e.g., using Big Data and remote training) could inspire practical applications in regions where traditional data gathering is unreliable. Additionally, practitioners working with international donors or multi-partner organisations will find the insights on coordination and donor engagement helpful for strategising long-term statistical capacity-building programs.

Why are we recommending it?

This paper offers comprehensive insights into the unique challenges of building statistical capacity in fragile states and presents practical solutions that can be applied in varied conflict settings. It highlights the importance of tailoring capacity-building efforts and leveraging alternative data sources to address resource constraints and enhance decision-making.