A history of poor governance culminated
in nearly fifteen years (1989-2003) of brutal conflict that
destroyed lives, key institutions and infrastructure, and
brought the Liberian economy to a halt. The origins of the
conflict were rooted in the marginalization and/or exclusion
over many years of a large part of the Liberian population
from political power and the economic wealth flowing from
the country s substantial natural resources. The new
government articulated a broad vision of a peaceful, secure,
and prosperous Liberia as described in lift Liberia-the
country s first poverty reduction strategy. During this
period, Liberia made good progress as the economy recovered
and growth was sustained, especially in the urban areas.
This was supported by macroeconomic stability characterized
by low inflation, essentially balanced budgets, and a
significant reduction in external debt as well as
significant inflows of foreign direct investment to the
agriculture and mining sectors. A second democratic election
took place in October 2011 with a run-off in November that
led to victory for the incumbent party, a process that was
conducted peacefully and benefited from United Nations
Mission in Liberia (UNMIL) and broad international support.
Liberia must overcome economic, institutional, and security
hurdles. Recognizing the positive impacts of peace and
security on Liberia, the World Bank in close collaboration
with UNMIL is assisting the government to identify the core
security functions and their associated costs as well as
options to ensure a smooth security transition. As such,
this report does not carry out an in-depth analysis of
public expenditure in the security sector. Instead, the
costing of the security is based on the draft transition
plan prepared jointly by the government and UNMIL, alongside
the relevant costs outlined in the Liberia peace building
program, a central component of which is the development of
regional justice and security hubs.