Emerging and developing economies are increasingly exposed to fragmentation risks—from global trade and geopolitical tensions, supply chain disruptions, and financial decoupling. As these risks can threaten macroeconomic stability, fiscal and monetary policies must adapt to not only stabilize economies but also to promote resilient and sustainable growth and development. In particular, conventional policy frameworks may be less effective in an era of sustained and heightened uncertainty, where shocks are more frequent and global in scope. This calls for a re-examination of existing fiscal and monetary policies design, coordination, and transmission mechanisms amid increased fragmentation risks.