Table 1.1
Comparative Growth – Liberia and Sierra Leone Years after Peace Accord (Real GDP Growth (%) 0
1
2
3
4
5
6
7
Liberia (2003)
–31.3
2.6
5.3
7.8
9.4
7.1
NA
NA
Sierra Leone (2001)
18.2
27.4
9.5
7.4
7.2
7.3
6.4
5.5
Source: World Development Indicators. Note: GDP= gross domestic product; NA= not available.
To a large extent, the subdued performance reflects the sanctions on timber and diamond exports which were imposed in July 2001. These sanctions were not lifted until 2006 (timber) and 2007 (diamonds). There were also delays in the production of iron ore due to a renegotiation of the contract with ArcelorMittal, and the need to rehabilitate the railway. Exports of iron ore did not resume until November 2011. Timber production was held back by regulatory and logistical issues including inadequate roads, land disputes, and a revocation of forest concessions in 2006. Gender. Women have been the backbone of the economy. They account for 60 percent of agricultural production (food and cash crops) and 80 percent of trading activities in rural areas, which serve as a link between rural and urban markets. Nonetheless, with the exception of microcredit in the Monrovia area, women have less access than men to land, credit, training and technology (World Bank 2007). They have also been under-represented in politics, except during the war when they briefly established political authority within the camps for Internally Displaced Persons (IDP). Another exception is under the incumbent administration, where women are well represented as senior executives in key public agencies. Recent studies conducted in ten of the fifteen counties show a prevalence of gender-based violence (GBV), which appears to be rooted in cultural beliefs and exacerbated by a continuation of behavior prevalent during the war. Debt Relief. External debt accumulated since the 1980s stood at $4.8 billion in 2003 (800 percent of GDP), making Liberia one of the most heavily-indebted countries (see table 1.2 below). However, by June 2010 when Liberia reached the completion point under the Heavily-Indebted Poor Countries’ Initiative (HIPC), a variety of mechanisms for debt relief took effect. Thereafter, Liberia benefited from debt reduction provided by the World Bank Group, the International Monetary Fund (IMF), and the African Development Bank under the Multilateral Debt Relief Initiative (MDRI). The European Union (EU) also provided additional debt relief under its Special Debt Relief Initiative. In September 2010, Liberia reached agreement with the Paris Club (sovereign) creditors for a 100 percent cancellation of the remaining debt. Many bilateral agreements reduced the remaining debt. In all, 95 percent of the initial debt has been canceled.
8
Liberia Country Program Evaluation: 2004–2011