Created in 2008, the State and Peacebuilding Trust Fund (SPF) is the World Bank Group’s (WBG) largest, global multi-donor trust fund established to finance innovative approaches to state and peace-building in regions affected by fragility, conflict and violence (FCV).

The SPF has emerged as the WBG’s primary instrument for first response, innovation, and engagement in FCV-affected countries for three reasons:

• First, the SPF is tremendously flexible in terms of where it can operate – all developing countries facing FCV challenges are eligible for funding regardless of geography, income level, or arrears status. The SPF can also operate in territories and non-members on a case-by-case basis.
• Second, the SPF can mobilize financing very quickly – whenever prompt interventions are required to address FCV, the SPF is the emergency vehicle to deliver technical assistance, advisory services, or lay the groundwork for large-scale operations.
• Third, the SPF can finance the full spectrum of country services – this includes innovations and pilot operations, cutting edge analytics, data and evidence collection, as well as seed funding for single-country multi-donor trust funds (MDTFs).

For all of these reasons–flexibility, speed, and scope—SPF is a versatile financing mechanism. Since its establishment in 2008, it has pursued two interrelated goals: statebuilding, which refers to improving governance and institutional performance in FCV-affected countries so as to boost resilience to internal and external stresses; and peacebuilding, which seeks to develop the socioeconomic conditions that foster peaceful, stable and sustainable development. As shown below, the current total SPF envelope since inception is $322.7 million. Between 2008 and 2018, the SPF has financed 180 grants and 8 transfers to single-country MDTFs in a total of 46 countries; 90 percent of available financing has been committed and disbursement is at 78 percent. Most of the grants are recipient-executed, although the SPF allows for Bank-executed projects. Contributions come from development partners and IBRD administrative budget, i.e. the Word Bank’s own resources.