Challenges to strengthening the economic potential of women in the informal economy have been clearly identified. They include infrastructural, institutional, and economic issues, as well as skills building for market women. In many post-conflict countries such as Liberia, where institutional and human resources have been seriously impaired by more than a decade of civil war, the general economic and social situation is especially aggravated. Over the last six or so years, Liberia has taken the lead on the international stage in promoting a gender-positive political environment. But despite many efforts in the policy arena since 2003, some groups, particularly the many petty traders, have not realized much benefit from the dividends of peace and reconciliation. The Government of Liberia has faced many challenges in its attempts to rebuild the economy and deal with the devastating impact of war. Basic infrastructure had been completely destroyed. There was no electricity, no running water, and roads were impassible throughout the country. Observers described the country’s post-conflict environment as dysfunctional, with diminished human and social capital, devastated municipal and public infrastructure and a government severely hampered in its capacity to deliver services. Per capita GDP plummeted from a high of US$800 in the 1970s to a low of around $50 in 1996 and has since been struggling to recover. The recent global economic crisis has affected formal economies; exports have contracted since 2007 and have yet to fully recover (World Development Indicators 2008 and International Monetary Fund 2009). With an estimated 50 percent of the population still living in extreme poverty (Republic of Liberia, 2007)41, the government’s development agenda has been largely defined by its 2008 Poverty Reduction Strategy (PRS), which focuses heavily on investment in the natural resource sector (Werker and Beganovic, 2011)42. As of late 2010, however, the government had only managed to complete 214 of the 473 objectives set out in this PRS, originally scheduled to expire in mid-2011 (Werker and Beganovic, 2011: 10). Liberia numbers among the top 10 countries for official development assistance as a percentage of Gross National Income (almost 70% in 2009, according to the World Bank). A current government challenge is posed by the urgent unmet demand for formal and informal employment, a key priority for Liberians (Werker and Beganovic, 2011: 10). According to a recent study, the total unemployment rate in Liberia is estimated at about 20 percent (World Bank, 2010) 43 . Among the employed, only 17 percent are found in formal sector employment, 47.8 percent are 41
Republic of Liberia, 2007. ‘Liberia Market Review’. World Food Programme, Ministry of Agriculture, and Liberia Marketing Association. 42 Werker, Eric and Jasmina Beganovic. 2011. ‘Liberia: a case study’. Prepared for the International Growth Center Workshop on Growth in Fragile States”. June 24, 2011. http://www.theigc.org/sites/default/files/presentation_slides/liberia_case_study.pdf 43 World Bank. 2010. ‘Liberia: Employment and pro-poor growth’. Poverty Reduction and Economic Management 4, Africa Region, Development Dialogue on Values and Ethics, Human Development Network, Country Department W1, Africa Region. Report No. 59124-LR.
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