LR-RRSP4 Budget Support

closed

Closed

The objective of the Fourth Re-engagement and Reform Support Program for Liberia is to support government-owned ongoing reforms to strengthen governance and improve the environment for private sector-led, inclusive growth. Poor governance and nearly fifteen years of brutal conflict destroyed lives, key institutions, infrastructure, and grounded the Liberian economy to a halt. Schools and hospitals were damaged or destroyed and key social services were severely disrupted. Major infrastructure including roads, railroads, electricity generation and transmission, potable water and sewage facilities were utterly destroyed. The origin of the conflict is largely blamed on the exclusion and marginalization of a large part of the Liberia population from political power and the economic wealth from the country's natural resources. Poor economic governance and weak public financial management in particular allowed public resources to be utilized for the benefit a small group of political elite which heightened inequality and social instability. The country is now at an inflection point, moving from the transitional post-conflict recovery phase to laying the foundations for long-term development. The government's main focus is on: (i) strengthening governance moving beyond moving beyond the transitional Governance and Economic Management Assisted Program (GEMAP) which ended at Heavily Indebted Poor Countries (HIPC) completion point in June 2010 to establishing and sustaining institutions and systems to address endemic corruption and secure the rule of law; (ii) promoting and sustaining broad-based economic growth getting major transport corridors functioning to open up trade and commerce, revitalizing agriculture to ensure job creation; (iii) rebuilding infrastructure ensure the delivery of basic services and improve the environment for investment; and (iv) rebuilding capacity in the public service to ensure effective delivery of key social services including health and education. The strong post-conflict recovery continued into 2008 but the global crisis towards the end of 2008 through most of 2009 created substantial challenges for Liberia's fledgling economy. At the macro level, the global crisis resulted in a much weaker economy than envisaged under the government's Poverty Reduction Strategy (PRS) framework.

FY17 - Industry, Trade and Services,FY17 - Public Administration

World Bank Group

Project

Road, Water Supply and Storage, Power Generation (CCGT), Waste Processing and Treatment, Raw Materials, Government, Education