Where a state consistently fails to meet the basic prerequisites of a sovereign government, how can this sovereignty gap be closed in order to improve its security and prosperity? This working paper from the Overseas Development Institute analyses the characteristics of fragile states and the role the international community has played thus far. International aid must shift its attention from the symptoms of state failure to its root causes. Greater emphasis should be placed on core functions that a sovereign state must perform.
The modern state can be expected to perform certain key functions. When they are performed well, the state creates a virtuous circle generating greater legitimacy and trust between the governing and the governed. The failure to perform one or a number of the functions well creates, by contrast, a vicious circle, leading in the end to varying degrees of state failure. Focusing on the ten key functions, listed below, provides a measurable framework for assessing the sovereignty gap in a state and facilitates the formation of policy interventions.
- Legitimate monopoly on the means of violence
- Administrative control
- Management of public finances
- Investment in human capital
- Delineation of citizen rights and duties
- Provision of infrastructure services
- Formation of the market
- Management of state’s assets
- International relations
- Rule of Law
International aid, in its efforts to improve economic and social development, has undermined the sovereignty of states through the creation of parallel structures, a lack of harmonisation, the non-state provision of services, and a lack of predictability in aid flows. To help close the sovereignty gap, the international aid system must be realigned to focus on building the capacity of states to perform the ten key state functions. A new recommended strategy would encompass three steps:
- Create a sovereignty index: By measuring a state’s relative effectiveness in performing each of the ten functions listed above, one could create an index for measuring the sovereignty gap and tracking a country’s sovereignty over time
- Agree a broad set of principles for state-building strategies: To effectively re-orient the international aid system towards a focus on sovereignty, agreement needs to be reached on key processes in aid. These include time horizon, financing arrangements, uses of funds, incentives, and the nature of the compact between donors, recipients, and other actors within the system.
- Tailor strategies to contexts: Understanding of the historical context and engendering trust are crucial elements to an effective state-building strategy. A fair, open process rooted in specific country knowledge increases the likelihood of successful implementation and long-term sustainability.
While this new approach would necessitate significant agreement among donors and the subordination of their existing processes and programs, there are some grounds for hope. In a post 9/11 world, state stability is critical to global security and prosperity. Implementing this state-building strategy will require effective leadership and the mobilisation of resources from across the international community.
