Whereas most countries in fragile situations were low-income a decade ago, today almost half are middle-income. As aid is a small part of the development equation in middle-income economies, more attention is needed on how aid can leverage structural change and catalyse non-aid flows to promote development. In spite of this shift in income level, poverty remains concentrated in fragile states. It is estimated that by 2015, half of the world’s people surviving on less than 1.25 dollars a day will be found in fragile states. This is because the fight against poverty is slower in fragile states than elsewhere, and because of the high income inequality within such states. Beyond the humanitarian imperative to address global poverty where it is concentrated, fragility matters because of the risk it poses to regional and global stability. Addressing fragility as a driver of poverty and instability requires a more robust understanding of fragility, its causes and dimensions. In particular, it requires seeing fragility as a deeply political issue centred on the social contract between the state and society, and it requires greater consideration of the role of stress factors (internal or external).