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Note: This document may not always reflect the actual appropriations determined by Congress. Final budget allocations for USAID's programs are not determined until after passage of an appropriations bill and preparation of the Operating Year Budget (OYB).

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LIBERIA

	FY 1997	FY 1998	FY 1999
	Actual	Estimate	Request
Child Survival and Disease..........	$1,000,000	$1,000,000	$1,000,000
Development Assistance..............	$6,500,000	$6,500,000	$6,500,000
Economic Support Funds..............	$1,000,000	---	$5,000,000
P.L. 480 Title II...........................	$23,142,000	$28,623,000	---

Introduction

Liberia's seven-year civil war ended and free and transparent elections were declared by international domestic observes on July 19, 1997. The United States has an interest in seeing the current fragile peace in Liberia hold, its young democracy grow stronger, and its battered economy reformed and revitalized. Successful national reconstruction and economic recovery programs will help reduce the likelihood of future emergency humanitarian and peacekeeping activities which tend to require substantial levels of U.S. assistance. A politically stable, economically viable Liberia supports the U. S. interest in a stable West Africa subregion. During the cold war, Liberia was an important, close U.S. ally. U.S. business interests in Liberia were also significant, including the large Harbel rubber plantation. When peace and stability are consolidated, the country may well become one of Africa's better performing developing states.

The Development Challenge

Liberia has two broad-based development challenges: (1) establishing a stable effective democracy, and (2) rehabilitating and reforming the country's economy. In his August 2 inaugural address, President Taylor promised to give high priority to national reconciliation, human rights, the rule of law, economic development, and eliminating government corruption. However, after an encouraging start, the human rights situation in Liberia has deteriorated with the recent killing of an opposition figure and numerous incidents of press harassment, including the closing of newspapers and radio stations. The reintegration of refugees and displaced persons is moving slowly.

There are a number of positive economic signs the Government of Liberia has made progress in working with the international financial institutions in developing a financial reform plan. The Government has also improved its fiscal discipline by enacting a balanced budget. However, Liberia has only just started the work that must be done to overcome the destruction of the civil war and years of mismanagement. The country has a high unemployment rate and owes approximately $2 billion in foreign debt. The depleted infrastructure cannot support a population needing housing, jobs, and social services.

Other Donors

The Donor Coordination Committee (DCC) in Monrovia includes the United States, the European Union, the United Nation (UN) and nongovernmental organizations working in Liberia. Donor activities include food aid, seeds and tools distribution, and public works activities that rehabilitate the social and economic infrastructure as well as generate jobs. The World Bank and the International Monetary Fund are providing guidance to the government in developing fiscal and monetary policies. The World Bank is considering providing grants in 1999 to assist with the rehabilitation of Liberia's social sectors.

The United States was Liberia's largest donor in 1997, followed by the European Union and UN agencies. Other donors assisting Liberia include the Netherlands, Denmark, Germany, France, Britain, Japan, China, and Canada.

The Ministry of Planning and Economic Affairs, in collaboration with the DCC, is preparing a document for a donor's conference tentatively set for April 7, 1998. The document will lay out the government's economic recovery program and seek donor cooperation in carrying out planned activities.

FY 1999 Program

In May 1997, USAID approved a post-crisis strategy for FY 1998 and FY 1999 designed to assist Liberia's transition from emergency assistance to sustainable development. The strategy calls for continued humanitarian and food aid assistance for vulnerable groups, strengthening of democratic institutions, support for the reintegration of displaced populations into society, and rehabilitation of the social and economic infrastructure.

To help consolidate democracy, USAID carried out a comprehensive democracy and governance assessment in January 1998. The assessment examined the role and effectiveness of key government and private institutions to identify potential areas for assistance. The assessment also looked at the judiciary, legislature, media, civil society, and the Human Rights Commission. Based on the assessment, USAID will develop a program, to be implemented in FYs 98-99, to promote participatory democracy, respect for human rights, rule of law, and good governance.

USAID will continue supporting repatriation and resettlement programs. Activities will include small-scale, labor-intensive projects identified, designed and implemented by local communities. These activities will focus on food production, potable water supply, establishment or rehabilitation of market places, repair of schools and health clinics. Programs that generate employment, training, education and rehabilitation of the estimated 33,000 ex-combatants will also be continued. USAID will also establish employment generating activities and a revolving fund which will finance private sector investment in rubber, cocoa, and coffee production. Modest investments in these sectors have enormous potential to generate employment, income, and foreign exchange in a short period of time.

USAID will continue child survival activities and will start new activities in primary health care. Minimum health care services are essential for the successful reintegration and resettlement of displaced Liberians. USAID's activities will include maternal and child health care, nutritional surveillance, and child immunization. The United States, the European Union and United Nations agencies are working closely with nongovernmental organizations (NGOs), communities, and the Government of Liberia on these activities.

Assessments carried out in FY 1998 will determine the timetable for phasing out humanitarian assistance for Liberia. During the 1998-1999 period, humanitarian assistance will focus on health care and agriculture, and P.L. 480 assistance will support repatriation and resettlement of internally displaced persons and refugees. Assistance will also continue for cash-crop farmers to increase food crop productivity, while food-for-work programs will generate employment and support infrastructure.

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LIBERIA
FY 1999 PROGRAM SUMMARY
(In Thousands of Dollars)

USAID Strategic and Special Objectives	Economic Growth & Agriculture	Population & Health	Environment	Democracy	Human Capacity Development	Humanitarian Assistance	TOTALS
S.O. 1. Successful democratic transition including free and fair elections - DA - ESF	--- ---	--- ---	--- ---	2,000 3,000	--- ---	--- ---	2,000 3,000
S.O. 2. Successful transition from relief to recovery through a community reintegration program - CSD - DA - ESF	--- 4,500 2,000	1,000 --- ---	--- --- ---	--- --- ---	--- --- ---	--- --- ---	1,000 4,500 2,000
Total - CSD - DA - ESF	--- 4,500 2,000	1,000 --- ---	--- --- ---	--- 2,000 3,000	--- --- ---	--- --- ---	1,000 6,500 5,000

USAID Representative: Rudolph Thomas

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ACTIVITY DATA SHEET
PROGRAM: LIBERIA
TITLE AND NUMBER: Successful Democratic Transition Including Free and Fairs Election, Human Rights, and Rule of Law 669-SO01
STATUS: NEW
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $2,000,000 DA; $3,000,000 ESF
INITIAL OBLIGATION: FY 1998; ESTIMATED COMPLETION DATE: FY 2000

Purpose: To consolidate the democratic transition in Liberia by creating favorable conditions for sound governance, respect for human rights, and the rule of law.

USAID's Role and Achievements to Date: USAID's overall program under this objective emphasizes rebuilding civil society, promoting conflict resolution, mediation, reconciliation, conducting media campaigns on democracy and human rights, and providing support for elections. The main result in FY 1997 was the conduct of national elections.

Under a USAID-funded grant, the International Foundation for Elections Systems (IFES) provided technical assistance to the Independent Elections Commission (IECOM). IFES assisted in the purchase of election commodities, party training, voter and civic education, communication/media support, and international and domestic monitoring assistance. IFES provided subgrants to other nongovernmental organizations (NGOs), including the Friends of Liberia, the African Leadership Forum, the African Refugee Policy Group, the Carter Center, and Search for Common Ground, which implemented elections projects. This assistance was coordinated with the National Democratic Institute (NDI), which established elections monitoring and groups, and with the International Republican Institute (IRI), which trained party agents as election monitors. These organizations helped Liberia hold its first competitive multi-party election in 12 years.

To promote democratization institutions in the post-elections environment, a comprehensive democracy and governance assessment was conducted in January 1998, to update and finalize USAID's activities in this sector. The assessment examined the new government's priorities, and identified obstacles to democracy building, including obstacles to the rule of law. In addition, the assessment evaluated the progress and mandate of the new Human Rights Commissions to determine possible USAID funding in FY 1998.

Description: USAID will continue: (1) seminars and workshops to re-enforce pre-election efforts to build a vigorous civil society, with the capacity to participate in the democratization process; (2) technical assistance to Liberian civic organizations that play a role in overseeing the work of governmental institutions and in improving aspects of the new democracy such as the electoral systems; (3) rule of law efforts; and (4) activities to strengthen national institutions, particularly the newly elected legislature.

Host Country and Other Donors: The United Nations has established a small political office in Liberia to monitor political developments and to provide technical assistance to domestic human rights groups. The European Union (EU) currently provides modest assistance in this area. The EU may increase its assistance in this area following a proposed joint U.S./EU assessment this spring.

Beneficiaries: Local NGOs and other organizations constituting civil society will be the primary direct beneficiaries. The ultimate beneficiaries will be the people of Liberia.

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Principal Contractors, Grantees or Agencies: IFES, NDI, IRI, the Carter Center, and other NGOs have indicated their willingness to help develop democracy and governance programs, including assistance to civic organizations and human rights groups, and strengthening political parties in the role of loyal opposition.

Major Results Indicators: To be determined following the January 1998 assessment.

ACTIVITY DATA SHEET

PROGRAM: LIBERIA
TITLE AND NUMBER: Successful Transition from Relief to Recovery Through A Community Reintegration Program (Better Health Practices), 669-S002.1
STATUS: NEW
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $1,000,000 CSD,
$1,000,000 DA
INITIAL OBLIGATION: FY 1999; ESTIMATED COMPLETION DATE: FY 2001

Purpose: To provide assistance in the revitalization of primary health care services in Liberia.

USAID's Role and Achievements to Date: The war caused a total collapse of both the public and private systems. Many hospitals and clinics were looted, and staff fled to safety in neighboring countries. The displacement of the general population created conditions for outbreaks of epidemic diseases and the lack of health care resulted in soaring rates of malaria, acute respiratory infections, diarrheal diseases, parasites and anemia. USAID, through nongovernmental organizations (NGOs), has funded health activities throughout the civil crisis which focus on basic health care, primary health care preventive services, including immunizations, reactivation of rural clinic networks, water and sanitation, health training, and nutritional feeding for malnourished children. The NGOs developed a health and nutritional surveillance system which has increased significantly their ability to identify and respond to emergencies as they occur.

In anticipation of the phase-out of humanitarian assistance by the end of FY 1998, USAID recently provided a grant to UNICEF to begin an immunization program for children. However, this is just the beginning of a long process to retrain veteran health workers and hire new ones, encourage the return of health specialists who fled the country, conduct an inventory of the health system and its needs, and design a new national health policy, including cost recovery issues. Moving back to a revolving drug fund approach to health care and way from the free care policy of the emergency period will also have to be a part of the recovery effort and will have to be linked to other interventions that stimulate economic growth and recovery at all levels of society.

Description: USAID will assist the health sector through a series of primary health care activities focusing on reproductive health (including family planning) and child survival. These areas are essential for successful reintegration and resettlement of Liberian refugees and internally displaced persons. With other donors interested in the southeastern counties, USAID will concentrate on central and northern Liberia.

Host Country and Other Donors: The Ministry of Health, donors and NGOs recently drafted an action plan for revitalizing the health sector in Liberia. Thus far, the Ministry of Health has reactivated county health teams in half of the country.

USAID, the European Union, and the United Nations (UN) are the main health sector donors. The EU provides technical support to the National Drug Service and is funding rural clinics and county hospitals. The UN provides county health teams, drugs and vaccines, and technical support to the Ministry of Health. The World Bank is considering assistance in this sector.

Beneficiaries: Direct beneficiaries will include vulnerable groups consisting of approximately 700,000 women and children in the central and northern regions of Liberia. Successful program implementation will improve the quality of health and life expectancy.

Principal Contractors, Grantees or Agencies: USAID will implement health activities through International and Liberian NGOs and UN agencies.

Major Results Indicators: Indicators and results will be identified during the development of the activity proposal.

ACTIVITY DATA SHEET

PROGRAM: LIBERIA
TITLE AND NUMBER: Successful Transition from Relief to Recovery Through A Community Reintegration Program (Rehabilitation of Liberia's Food Production Capacity), 669-SO02.2
STATUS: New
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $1,000,000 DA

INITIAL OBLIGATION: FY 1999; ESTIMATED COMPLETION DATE: FY 2000

Purpose: To increase food productivity and improve food security by rehabilitating key elements in he agriculture sector.

USAID Role and Achievements to Date: USAID has addressed the food insecurity crisis by providing roughly 75% of Liberia's food aid throughout the civil war. Nongovernmental organizations have assisted more than 120,000 farmers under USAID's seeds and tools distribution program. As a result, total food production will significantly increase in FY 1998. Programs of seed rice distribution, promotion of chicken raising and vegetable gardening are among the principal activities underway. As repatriation and reintegration takes places on a larger scale, this market area could be assisted to meet more of the consumption needs of the urban and semi-urban population by expanding on what as been done to date under the emergency programs and addressing some of the longer term issues of rice policy (including pricing policy), market networks, and improved technologies.

Description: The activity will increase Liberia's food production by replenishing the seed supply, introducing improved farming practices, resupplying the country's depleted poultry and livestock supply, improving the availability of agriculture inputs and services, and using food for work activities to rehabilitate the rural road network. The project will increase the prospects for the successful return and reintegration of refugees and internally displaced persons and lead to an increase in food security. Increasing food production and employment opportunities will decrease the dependency on international aid. The marriage of food-for-work activities (income generation for self sufficiency) and increasing food production (self sustaining) is important to Liberia's transition from emergency to sustainable development Consideration will be given to using P.L. 480 food assistance in support of this activity.

Host Country and Other Donors: USAID will work closely with Liberia's Ministry of Agriculture in developing and implementing this activity. Other donors include the European Union and the United Nations Development Program.

Beneficiaries: The primary beneficiaries will be the roughly 1.5 million refugees and internally displaced persons who will return to their rural areas to practice farming. The larger population will benefit from a more stable population and increased food security.

Principal Contractors, Grantees, or Agencies: The major implementing partners will include the World Food Program and the Catholic Relief Service, who could manage food for work programs under a P.L. 480 Title II program. Africare and other NGOs will introduce improved agricultural practices.

Major Results Indicators: Indicators and results will be identified during the development of the activity.

ACTIVITY DATA SHEET

PROGRAM: Liberia
TITLE AND NUMBER: Successful Transition from Relief to Recovery Through A Community Reintegration Program (Community Reintegration Assistance), 669-SO02.3
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1997: $2,500,000 DA
INITIAL OBLIGATION: FY 1997; ESTIMATED COMPLETION DATE: FY 2000

Purpose: To enable a successful transition from relief to recovery by supporting resettlement, reintegration, and repatriation activities.

USAID Role and Achievements to Date: Liberia faces the challenge of repatriating over 500,000 refugees, resettling approximately one million internally displaced persons, and reintegrating the 33,000 ex-combatants, into functioning communities. This effort is proceeding slowly. Although the Government Of Liberia does not have the resources to meet this challenge, it is essential that it take the lead in establishing a conducive atmosphere for the repatriation and reintegration of its people. Otherwise, the repatriation of refugees and reintegration of internally displaced persons may come to a standstill, particularly if they believe that security conditions are not conducive to their return.

USAID is implementing several activities under this objective. Under the War Affected Youth Support (WAYS) activity, the United Nations Children Fund (UNICEF) has assisted more than 3,800 demobilized child soldiers and other disadvantaged youth. Assistance includes: an immunization program to combat childhood diseases, trauma counseling, and vocational and literacy training. The WAYS activity also includes programs that care for young single mothers, young prostitutes, and abused girls. The Opportunities Industrialization Center International has trained more than 1,450 demobilized fighters and other young adults in tailoring, shoemaking, carpentry, and plumbing. This activity also provides trauma counseling and has a community sensitization component. In October 1997, the Phelps-Stokes Fund re-opened the Booker Washington Institute (BWI) under the Accelerated Rehabilitation Technical/Vocational Training activity. Five hundred students, 70% of whom are demobilized fighters, are being trained in agriculture (production/poultry), electricity, trades (carpentry, masonry, painting, plumbing), and home economics. Housing for 500 students is provided at BWI for students who live outside the immediate area.

In September 1997, USAID, the United Nations Development Program, and the Netherlands launched a National Reintegration program to support repatriation and resettlement. Over an 18-24 month period, approximately 366 schools, clinics and medical facilities will be reconstructed; access and farm-to-market roads will be repaired; and agricultural projects will be implemented, including swamp rice cultivation, warehousing, and food processing. The activity also includes more socially oriented activities, i.e., community organization, public forums, and conflict resolution workshops to strengthen civil society at the local level.

Description: In FY 1999, USAID will concentrate on the resettlement, reintegration, and repatriation effort, including programs that train, educate and rehabilitate the estimated 33,000 ex-combatants. Repatriation and resettlement activities include small-scale, labor-intensive projects identified, designed and implemented by local communities. These quick turn-around activities will focus on food production, water supply, establishment or rehabilitation of market places, repairing schools and refurbishing health clinics. USAID's micro-project activities will be complemented by a revolving fund which will finance inputs needed to rehabilitate rubber, cocoa, and coffee plantations. These activities have enormous potential to generate employment, income, and foreign exchange in a short period of time with a modest investment.

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Host Country and Other Donors: USAID, the Netherlands, and the United Nations Development Program co-fund this $12 million community reintegration program which operates in eight of Liberia's 13 counties. The European Union implements complementary activities in the remaining five counties.
Beneficiaries: Communities, local nongovernmental organizations (NGOs) , and other organizations constituting civil society in rural areas will be the main direct beneficiaries. The ultimate beneficiaries will be the demobilized ex-combatants, the resettled internally displaced persons and the repatriated refugee.

Principal Contractors, Grantees, or Agencies: Grantees include NGOs and UN agencies, including: Opportunities Industrialization Centers, International, United Nations Children Fund, the United Nations Development Program, Phelps-Stokes Fund, Save the Children, and Equator Bank. Liberian NGOs will receive support from international NGOs to ensure their participation in the reconstruction of Liberia.

Major Results Indicators: Baseline data was not available when the activities were started because of insecurity in the country. Below are illustrative targets:

		llustrative Target
		(FY 2000)

Micro-projects implemented 	    	 366
Reintegration Dev. Centers Established	       	 8
Children in school/training program            	 	60,000
Training Programs sites 	       	20
Adult Education Programs	         	10
Training-of-Trainers Programs	      	 17
Persons Resettled		1,500,000

ACTIVITY DATA SHEET

PROGRAM: LIBERIA
TITLE AND NUMBER: Successful Transition from Relief to Recovery Through A Community Reintegration Program (Government Institution Capacity Building), 669-SO02.4
STATUS: New
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $2,000,000 ESF
INITIAL OBLIGATION: FY 1999; ESTIMATED COMPLETION DATE: FY 2000

Purpose: To provide assistance to pertinent Government of Liberia (GOL) ministries to improve government practices to spur improved governance, private enterprise, trade and foreign investment

USAID Role and Achievements to Date: In July 1997, Liberia successfully concluded presidential and legislative elections which were determined free and transparent by international election monitors. The U.S. played an important role nurturing this process of democratization. Liberia now must immediately deal with two critical development challenges: (1) establishing a stable effective democracy, and (2) rehabilitating and reforming the national economy.

Liberia's seven year civil war has devastated the economy and reviving the economy presents an immense challenge. This will require Liberians to establish a transparent, conducive tax, investment and legal climate and develop a comprehensive economic plan that promotes private enterprise and reduces the government's role in the economy. The U.S. Government recognizes that sustainable development and economic growth require building individual, institutional and societal capacity. Assistance under this activity will support Liberia's efforts to rehabilitate and reform its economy.

Description: Through technical assistance, budgetary support and training for ministry staff (finance, commerce, planning, justice, and agriculture), this activity will facilitate: (1) policy formulation; (2) legal and regulatory reforms which promote decentralization, reduce bureaucracy and promote private sector investment; and (3) private sector interest in policy, legal, regulatory and judicial reforms. USAID will initially work to revitalize the rubber, cocoa, and coffee subsectors. These subsectors have the potential to create continued economic growth thereby improving the well-being of the vast majority of the country's population.

Host Country and Other Donors: USAID will work closely with Liberia's ministries in developing and implementing this activity. Other donors include the European Union and the United Nations Development Program.

Beneficiaries: The primary beneficiaries will be the private sector, social and legal groups and specific ministries (commerce, agriculture, justice, finance, planning). All Liberians are the ultimate beneficiaries.

Principal Contractors, Grantees, or Agencies: Implementers may include U.S. Departments of Commerce, Treasury, and Customs. International nongovernmental organizations may also participate.

Major Results Indicators: Indicators and results ill be identified during the development of the activity.

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