A state-building strategy can act as the basis for agreement between international and domestic actors on priorities, sequencing and actions to maximize progress. Such a strategy would require revision of international practices such as resource mobilization, time periods of allocation, procurement, conditionalities, benchmarks and mechanisms for monitoring the implementation of strategy. This paper explains the need to fully understand this nexus before proceeding to policy prescriptions. It then identifies and explains the international community’s failure in responding to the challenges of failed and fragile states, the patterns of persistent conflict, the complicated nature of transitions from conflict to stability and the necessary functions of the state.