World Bank (Washington, DC)
12 February 2007
press release
Washington, D.C. — For more than two decades, the people of Liberia have known little but instability, violence, and armed conflict. Two hundred and fifty thousand Liberians, out of a population of three million, have been killed and many more have been made homeless. When peace finally came in 2003, the country was in chaos.
Now, after 20 years of destruction, the people of Liberia want and need real improvement in their lives. In response the government has acted to rebuild the infrastructure destroyed by war, and economic reforms have increased revenues by nearly 50 percent in the past year, with the economy growing by more than 7 percent.
The government has also taken steps to encourage trade and investment. In 2006, exports from Liberia increased by 25 percent, and the country has been declared eligible for membership under the US Africa Growth and Opportunity Act, facilitating American investment and opening US markets to Liberian exports.
Finally, areas which previously saw corruption are being reformed, with sound financial management procedures for the port and other public enterprises being put into place, and forestry concessions that fuelled corruption being cancelled.
A Forum for Rebuilding
While the international community's support for short-term relief to Liberia has been excellent, and coordination on the ground exceptional, lasting results for all Liberians must now be achieved. This means not only additional financing, but also faster and more flexible disbursement of existing commitments.
The Liberia Partners' Forum at Bank headquarters in Washington will give the Government of Liberia an occasion to brief current and potential donors on the progress made in the past year. The government has committed itself to fiscal discipline and using public finances appropriately. The government has also worked with an IMF staff monitored program, and they've completed a draft economic plan [I-PRSP] for the next three years.
For its part, the international community must reach agreement on a debt relief package that releases the country from the staggering $3.7 billion debt burden they carry, and addresses the question of accumulated debt to the multilateral institutions.
The forum will also focus on the challenges ahead, and the need for continued donor support to address not only the debt issue, but support for long-term economic development assistance that can be disbursed effectively and quickly. But t his path is blocked until arrears are cleared — Liberia needs to move quickly towards normalization of relations with multilateral creditors .
World Bank support
The World Bank's program in Liberia supports the government's reform agenda in three key areas: economic revitalization — through support of the Governance and Economic Management Assistance Program (GEMAP), forestry reform — governance/rule of law (public sector/civil service reform, legal reform), and infrastructure and basic services (emergency infrastructure, repair, technical assistance, community empowerment).
The Bank is trying to reach an agreement with shareholders that would allow the Bank to help Liberia secure access to more predictable development financing to address urgent needs of a population victimized by war and economic crisis
A country on its way back up
Liberia is a country rich in natural and human resources, and which was, in fact, a middle income country prior to 1980. Since the end of hostilities, it has organized and conducted a free and democratic election, and installed a government committed to reform and sound economic and social policies. Liberia's performance over the last year has been exceptional.
The international community must now work together and think creatively about ways to support the country's economic reform efforts as well as stimulate the re-emergence of a vibrant private sector that produces jobs and improves the lives of all Liberians.
Be the first to Write a Comment!
Copyright © 2007 World Bank. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.
AllAfrica aggregates and indexes content from over 125 African news organizations, plus more than 200 other sources, who are responsible for their own reporting and views. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica.
