Development Challenge Other Donors FY2001 Program / Activity & Budget Information Summary Tables Program Summary Work Force Data Program/Sector Summary USAID Search: Liberia Previous Years' Activities 2000, 1999, 1998, 1997 Thursday, 09-Nov-2000 13:57:55 EST

Introduction

In 2000, Liberia will be celebrating its third year since successful democratic presidential elections and its fourth year since the end of the civil war. These milestones are significant because each year of peace contributes to the healing of wounds inflicted by the civil war and lays a foundation for reconciliation, resettlement, and economic recovery. The United States continues to have an interest in seeing a consolidation of the peace and a strengthening of Liberia's democratic institutions and practices, a reduction of human suffering, and progress toward sustainable development. The United States has an interest in promoting stability and economic growth in West Africa and believes that stability and economic recovery in Liberia will contribute significantly to stability in the West Africa Region. The USAID strategic objectives of promoting Liberia's transition to democracy and the repatriation and resettlement of refugees and internally displaced persons, respectively, are key elements of the Mission Performance Plan and support U.S. national interest of promoting national security, economic prosperity, rule of law, democracy, and reduced human suffering.

The end of the civil war in 1997 brought significant peace dividends. Liberia, with the help of the international community, has made important progress in repatriating refugees, resettling refugees and internally displaced persons, and rehabilitating health, education, and productive facilities throughout the country. USAID support has been vital to the transition from emergency humanitarian relief to economic recovery. Liberia and its international partners will focus their future efforts on economic recovery and sustainable development.

The Government of Liberia has made progress getting its economic house in order. It has received technical assistance from the International Monetary Fund (IMF) to develop and implement economic and financial management reforms and has actively participated in reestablishing an IMF Staff Monitored Program. The Government has conducted audits of the National Bank and the Ministry of Finance and has recently established a new Central Bank and installed a new Governor and Board of Directors. The Government has put in place a respected and capable macroeconomic team with a new Minister of Planning and Economic Affairs, Minister of Finance, Minister of Commerce, Chairman of the Council of Economic Advisors, and Governor of the Central Bank. A multi-donor assessment mission to Liberia in November 1999 and the successful renegotiations of the IMF Staff Monitored Program complemented recent initiatives in the macroeconomic sector.

The Development Challenge

Liberia continues to face two broad-based development challenges: (1) establishing a stable and effective democracy, and (2) rehabilitating and reforming the economy. President Charles Taylor continues to make public statements, which commit his government to promoting national reconciliation, human rights, rule of law, and stimulating the economy. His government continues to produce mixed results. The print and electronic media are active and important participants in the national debate. Security in Monrovia has improved while tensions have been reduced with the elimination of most security checkpoints in the capital city. However, there are still frequent reports of human rights violations, harassment by security agents, government intimidation of the press and human rights leaders, and evidence of inappropriate and excessive influence of the executive branch over the judiciary and legislative branches.

Liberia continues to face difficult and overwhelming challenges. The country faces an 80% illiteracy rate, 80% unemployment in the formal sector, a low revenue base, significant destruction of public and private institutions and facilities, extremely limited public utilities, and massive corruption. The annual population growth rate of 3.3% offsets efforts to improve the standard of living. Although most health facilities looted and vandalized during the war have been renovated or replaced, much of the population still lives without access to primary health services. The national HIV/AIDS infection rate is 4.5% and rising, with one county registering an infection rate as high as 9%. The problem of Liberia's low productive capacity and small revenue base is compounded by the government's debt burden, which includes foreign debt of $2.5 billion and domestic debt of $124 million. Liberia has not been granted debt relief but hopes to qualify for special treatment from the IMF and World Bank as a heavily indebted poor country emerging from a post-conflict situation.

U.S. assistance has been critical to maintaining internal stability, by making social services available to the resettled population, training ex-combatants, reestablishing health and educational institutions, and feeding vulnerable groups. Over 135,000 farm families benefited from agricultural activities and over 397,594 primary school children participated in school feeding programs. In 1999, USAID was the largest contributor to Liberia's highly successful Polio Eradication Program, which vaccinated 528,000 children throughout the country.

Despite the significant accomplishments, FY 1999 was a year filled with major obstacles, which impeded progress in planning and implementing USAID activities. A violent conflict between government forces and an opposition group in September 1998 led to a six-month evacuation of American USAID personnel. There were incursions by dissidents in Lofa County in April and August 1999, resulting in the loss of vehicles, equipment and 1,200 tons of food aid, and the complete withdrawal of donors and NGOs from the county. The persistent insecurity in Lofa County has forced USAID and other donors to rethink their assistance strategies and redirect their assistance to other geographic areas. In addition, the role of the government of Liberia in regional instability led to congressional holds on democracy and governance programs.

Other Donors

The European Union is Liberia's largest donor, followed by the United States, which provides one third of the total assistance provided to Liberia. The two largest donors accounted for 90% of the $220 million pledged to Liberia for FYs 1998 and 1999. Other bilateral and multilateral donors include Britain, Canada, Denmark, France, the Netherlands, Sweden, Taiwan, the United Nations, the World Bank, and the International Monetary Fund. Donor activities include assistance to improve agriculture, support democracy and governance, revitalize primary education, public health and public works activities.

	Country Background Information Resources
	CIA Factbook Library of Congress	National Geographic Country Maps State Dept. Country Information