This chapter shows how situations of fragility and conflict pose specific challenges for development and effective use of aid. In these situations, the Paris Declaration principles need to be complemented by the DAC principles for “good international engagement in fragile states and situations” and adapted to the specific contexts. Whole-of-government approaches are crucial. At the policy level, there has been significant progress over the past three years. DAC members have adopted the principles for good international engagement in fragile states and situations, and the European Union, the World Bank and others have endorsed these principles. Many policy statements acknowledge the challenge of peace-building and state-building, the importance of political settlement, elite negotiations and broad-based reconciliation, and also that in some cases it may take generations to make meaningful progress. Recognising this, whole-of-government strategies and mechanisms have been established, along with tools such as shadow and partial alignment.