Second Government Reform & Growth Credit

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The Second Governance Reform and Growth Credit (GRGC-2) Project will be the second in a programmatic series in support of Sierra Leone's transition from post-conflict recovery to sustainable development. The operation supports reform measures to: (i) preserve the fiscal space needed for poverty reduction; (ii) promote efficiency, transparency and accountability in the use of public resources through enhanced public financial management and governance; and (iii) improve the investment climate and promote exports. The programmatic series is grounded upon the government's Poverty Reduction Strategy (PRS) and is consistent with the Bank's 2006-09 Country Assistance Strategy (CAS). The programmatic series also builds upon a wide range of analytical work on public financial management as well as sectoral policies and outcomes and complements similar support provided by the African Development Bank (AfDB), Department for International Development (DflD), and the European Commission (EC). Sierra Leone's civil war ended in January 2002, just over six years ago. The United Nations peacekeeping mission completed its phased withdrawal of troops in December 2005, as agreed by the United Nations Security Council. The United Nations, however, continues to support the country through its new Integrated Office. Parliamentary and presidential elections were held in August 2007, with a presidential run-off election in September 2007. The elections, judged to be free and fair, resulted in a transfer of power to the former opposition party. The new leadership has placed strong emphasis on a campaign against corruption and more investment in physical infrastructure to buttress ongoing programs in health and education. The challenge now is to deepen the reform program during a period of political consolidation following the 2007 elections, and to do so in the context of a difficult global economic environment of rapidly rising fuel and food prices.