Prevention and Stabilization Fund

Description

The Prevention and Stabilization Fund (PSF) aims to avert violence, stabilize conflict-affected areas, and address the root causes of global fragility.

Use of Funds

Funding supports programs directed at inclusive conflict resolution processes, justice sector reform, transitional justice, good governance, inclusive and accountable service delivery, community policing and civilian security, and related programs. Funds also empower marginalized groups such as youth and women.

Justification

• The PSF supports “the implementation of the strategy under 2019 Global Fragility Act to (GFA) adopt a multi-pronged, multisectoral approach to strengthen the resilience of partner nations and civil society to address fragility challenges in countries at risk of or experiencing instability and conflict.”
• According to the Institute for Economics and Peace (IEP), the estimated economic cost of armed conflict, war, and violence to the global economy in 2020 was $14.96 trillion, or nearly 12% of the global GDP.
• Over the last 20 years, countries with the largest improvements on the Global Peace Index had 1.4% higher GDP growth per annum than the countries with the largest deterioration.
• The IEP found that every dollar invested in peacebuilding saves $16 in the cost of conflict.