The development community agrees on the need to address conflict and fragility for global security and sustainable development. Peace is a global public good, the focus of the 16 th Sustainable Development Goal and a cross cutting ambition of the 2030 Agenda. Spurring virtuous, sustainable and peaceful growth in fragile contexts is even more crucial, considering that they represent almost a quarter of the global population. In such complex and unpredictable situations, development cooperation must consider the full range of tools available and strive to include multiple actors at various levels of society. Hence, the growing volume of cross-border private capital flows cannot be overlooked. Despite growing recognition, blending is often omitted in development cooperation strategies to address fragility The multilateral scene has broadly acknowledged the need to catalyse private capital, not only for development, but also for peacebuilding. Yet, national strategies for addressing fragility often bear no specific reference to the role of private investors. Those that do, often focus on capacity building and private sector development. Only a few strategies explicitly identify the private sector as a potential source of additional funding in fragile contexts. Certain multilateral development banks have adopted an explicit focus on mobilising additional private finance, commensurate to the presence of fragile and conflict situations. Most bilateral development finance institutions limit their interventions to private sector development and only a minority has explicitly committed to mobilising private finance in fragile contexts. This paper was prepared by the OECD Development Cooperation Directorate (DCD) under Director Jorge Moreira da Silva. Irene Basile, Policy Analyst, was the manager and lead author of the publication, under the supervision of Paul Horrocks, Head of the Private Finance for Sustainable Development Unit, and the strategic leadership from Haje Schütte, Head of Financing for Sustainable Development Division, DCD. Carolyn Neunuebel | 9

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