We need to end the conflict and climate ‘fragility penalty’ that is stopping nations getting help

The UK will assume the G20 presidency next year at a pivotal moment for international development and global cooperation. For Somalia, this presents an important opportunity to deepen a longstanding partnership with the UK and to ensure that the priorities of fragile and climate-vulnerable countries are reflected in the G20 agenda.The UK has historically been a strong partner to Somalia, including on development, humanitarian response, climate finance, debt relief and institution building. But the context around this has changed significantly. Reduced foreign aid, alongside persistent geopolitical and climatic shocks, is creating new pressures for countries such as Somalia. We are seeking to consolidate hard-won gains and build sustainable economic resilience.The UK’s focus on climate security is one that Somalia strongly shares. We have seen how recurrent droughts and floods can rapidly translate into food insecurity, displacement, fiscal pressures and humanitarian crises. And these challenges are not unique to Somalia. The UK’s G20 presidency provides an opportunity to put fragility at the heart of the debate on reforming the international financial architecture.Somalia’s near decade-long debt relief process, which the UK championed, demonstrates that fragile states can deliver difficult reforms when there is national ownership, political continuity and sustained international support. But debt relief in 2023 did not remove Somalia’s underlying fragility. Why? Because the international financial architecture still does not adequately reflect the realities of fragile and conflict-affected states (FCAS).While all fragile states must rightly focus on fiscal sustainability, using domestic resources and undertaking structural reforms to their economies, they also need greater political and policy support to access the international financial architecture on terms that reflect their circumstances. This could be the real game changer.Access to international finance, including climate finance, remains disproportionately difficult for fragile states. Complex accreditation, fiduciary and project requirements often favour countries with stronger institutions, creating what some have called a “fragility penalty” for countries most exposed to shocks like Somalia.To address this, the UK should make the financing needs of fragile states a specific strand of its 2027 G20 agenda on reform of the international financial architecture – with a focus on how the system can better respond to countries facing repeated climate, economic and security shocks. This should include examining whether there is an appropriate balance of grants and highly concessional loans at affordable rates for countries facing these circumstances.A stronger voice in the institutions that design and allocate development finance is important for them to truly benefit. Somalia’s recent experience on the UN Security Council is a powerful reminder of the value of giving fragile states a seat at the table, bringing the perspective and experience of a country directly affected by conflict, fragility and climate insecurity into the Council’s deliberations. Fragility must be recognised not only in how finance is allocated, but also in who has a voice in designing the system. It is crucial that the UK use its G20 leadership and influence within the international financial institutions to strengthen the representation of fragile states, including exploring a more systematic voice in IDA replenishments and wider IFI governance structures. Fragility must be recognised not only in how finance is allocated, but also in who has a voice in designing the system. It is crucial that the UK use its G20 leadership and influence within the international financial institutions to strengthen the representation of fragile states, including exploring a more systematic voice in IDA replenishments and wider IFI governance structures.For Somalia, like most places in the Global South, climate security is not simply an environmental issue; it is about economic security, social stability and ultimately national security. The UK can use its G20 Presidency to examine how regional integration can be used to diversify economic risk in fragile regions, through alternative trade routes and markets, more resilient infrastructure and energy systems, diversified sources of food and agricultural inputs, and better information on climate, markets and supply chains.Private investment is essential to structural transformation, including moving away from reliance on grant aid for developing nations. However, conventional risk assessments (often based on perceptions of risk that can be greater than the underlying reality) can make viable investments prohibitively expensive or simply unavailable in frontier markets. To that end, the UK could use its G20 Presidency to develop a common approach to mobilising private capital in fragile states and regions, building on and scaling existing Multilateral Development Bank risk-sharing instruments and using the City of London’s strong financial heritage and performance to transfer skills, lessons and connect financing to the developing world in real time.There are also things the UK already does very well in fragile countries and across its development portfolio which must be redoubled and promoted within the G20. Chief among these is its significant investment in building strong institutions and supporting country systems through UK expertise. In Somalia, the UK has invested heavily in customs reforms to support the government in raising domestic revenue, Public Financial Management to strengthen transparency and accountability, and it continues to be a key ally in security sector development. Across the world, the UK is leading on climate finance access for the most vulnerable nations. This is a strong track record which it now has a platform to amplify as President of the G20.Liban Obsiye is the executive director of the Somali National Climate FundThis article has been produced as part of The Independent’s Rethinking Global Aid project