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This paper studies the role of fiscal policies and institutions in building resilience in sub-Saharan African countries during 1990-2013, with specific emphasis on a group of twenty-six countries that were deemed fragile in the 1990s. As the drivers of fragility and resilience are closely intertwined, we use GMM estimation as well as a probabilistic framework to address endogeneity and reverse causality. We find that fiscal institutions and fiscal space, namely the capacity to raise tax revenue and contain current spending, as well as lower military spending and, to some extent, higher social expenditure, are significantly and fairly robustly associated with building resilience. Similar conclusions arise from a study of the progression of a group of seven out of the twenty-six sub- Saharan African countries that managed to build resilience after years of civil unrest and/or violent conflict. These findings suggest relatively high returns to focusing on building sound fiscal institutions in fragile states. The international community can help this process through policy advice, technical assistance, and training on tax administration and budget reforms.

Macroeconomics --- Public Finance --- Taxation, Subsidies, and Revenue: General --- Fiscal Policy --- National Government Expenditures and Related Policies: General --- National Security and War --- Public finance & taxation --- Revenue administration --- Fiscal space --- Current spending --- Defense spending --- Fiscal policy --- Expenditure --- Revenue --- Expenditures, Public --- Mozambique, Republic of

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This paper analyzes the persistence of fragility in some sub-Saharan African states and the multiple dimensions of state weakness that are simultaneously at play. This study also provides an overview of the analytics of fragility, conflict, and international engagement with fragile states before turning to an assessment of the current state of affairs and the areas in which there has been progress in building resilience. The paper also looks at the role of fiscal policies and institutions and analyzes growth accelerations and decelerations. Seven country case studies help identify more concretely some key factors at play, and the diversity of paths followed, with an emphasis on the sequencing of reforms. The paper concludes with a summary of the main findings and policy implications.

Political stability --- Destabilization (Political science) --- Political instability --- Stability, Political --- Consensus (Social sciences) --- Legitimacy of governments --- Africa, Sub-Saharan --- Economic policy. --- E-books --- Political Stability --- Economic Development --- Africa --- Political Science --- Business & Economics --- Economic Stabilization --- Public Finance --- Natural Resources --- Taxation, Subsidies, and Revenue: General --- National Government Expenditures and Related Policies: General --- Fiscal Policy --- Agricultural and Natural Resource Economics --- Environmental and Ecological Economics: General --- Public finance & taxation --- Macroeconomics --- Environmental management --- Revenue administration --- Expenditure --- Fiscal policy --- Public financial management (PFM) --- Natural resources --- Environment --- Revenue --- Expenditures, Public --- Finance, Public --- Mozambique, Republic of