52002 IDA At Work Sierra Leone: From Conflict to Democratic Rule S even years after the end of a brutal civil conflict, Sierra Leone is now a peaceful and stable country. It has already had two successful elections for President, Parliament and Local Councils, including the 2007 elections where political power passed peacefully from one party to the other. Sierra Leone's civil war destroyed infrastructure, businesses and the most basic social fabric of the society. Near the end of the war, the average citizen survived on the equivalent of 38 cents (US) a day, and 2 million people, nearly a third of the population, had been displaced. But solid macroeconomic performance following the cease-fire led to strong economic rebound. Income rose substantially--from an annual average of US$150 per capita in 1999 to US$287 by 2007. International support helped restore many basic services such as education which saw a 146 percent rise in primary school enrollment between 1999 and 2007. The last United Nations (UN) peacekeepers withdrew in December 2005, leaving full responsibility for security with domestic forces. A civilian UN office remains to support the government. Country Indicators 1999 2005 2007 GDP per capita (US$) 150 220 287 Real GDP growth (%) -8.1 7.3 6.4 Inflation rate (%) 34.1 12.1 11.7 External debt (% of GDP) 194 132 32.1 Poverty incidence (%) -- 70 66 Gross primary school enrollment rate (%) 65 160 135 Infant mortality rate (per 1,000) 170 (1999) 170 (2002) 159 Under-five child mortality (per 1,000) 286 (2000) 283 (2004) 270 Population (millions) 4 5.5 5.8 Sources: World Bank and UNICEF. The International Development Association (IDA), the World Bank's fund for the world's poorest countries, has been at the core of the international partnership working with Sierra Leone as it emerged from conflict, helping it to set priorities for recovery and rehabilitation. International assistance was crucial to delivering tangible benefits to the population to consolidate the peace and helped pave the way for reconstruction and public sector reforms. nnn COUNTRY ACHIEVEMENTS cratic system is gradually being established. The international community commended Sierra Leone is emerging from the the successful presidential and parliamentary ravages of war. elections held in September 2007, which saw the former ruling Sierra Leone Peoples Party Eleven years of civil war. (SLPP) conceding defeat and handing over power peacefully to the then opposition All Civil conflict between 1991 and 2001 con- Peoples Congress (APC) party that had won the cluded with a 1999 peace agreement, fol- elections. Under the new APC leadership, the lowed by UN peacekeeping support and a local council elections held nine months later formal declaration of peace in January 2002. in July 2008 were heralded as peaceful and IDA had ceased lending for new projects and successful by the international committee. programs in 1997--following the breakdown of the first peace agreement and the ensu- A peace and reconciliation process, including ing coup d'état--but had retained a presence a special court, has largely completed the during the conflict years, keeping ongoing task of bringing closure to the atrocities of development projects afloat where possible. the conflict period. However, the situation A crisis point was reached in January 1999 remains fragile, as demonstrated by repeated when the resurgent rebel forces invaded clashes in urban centers between SLPP and Freetown, leaving thousands dead and devas- APC supporters. tating the capital before being driven out by West African regional forces (ECOMOG). Post conflict economic progress has been robust. In May 1999, the rebels agreed to a cease-fire and in July signed the Lome Peace Agree- Sierra Leone's GDP per capita fell to 38 cents ment. In November, the arrival of UN troops (US) a day near the end of the conflict in 2000. proved to be the turning point in consolidat- Following the peace accord, it grew rapidly ing the peace and returning to stability. The to US$287 per capita by 2007. Sierra Leone's UN troops set the stage for new IDA support recovery, which began in 2000, continued for focused on the root causes of the conflict-- nine unbroken years into 2008, when GDP alienation and corruption. grew by an estimated 5.5 percent despite an unusual simultaneous spike in the world prices Return to democratic rule and stability. of food and fuel commodities. The average real growth rate for the period 2000­2008 Recent political events provide reason for was 10 percent while the population grew at optimism that a sustainable pluralistic demo- a rate just over 2 percent per year. 2 The main sources of growth have been agri- Progress in human development. culture and services. Agriculture employs about 70 percent of the population and Achievements in human development have accounts for about 44 percent of the GDP. included a significant increase in primary However, food-poverty and unemployment school enrollment, especially of girls, and remain pervasive, with little reduction in success in limiting the prevalence of tuber- unemployment. Growth in agricultural output culosis and HIV/AIDS. A significant number of remains constrained by a poor transportation schools and clinics have been rehabilitated especially access roads. after the war, and are now providing services. Access to primary education has increased, Sierra Leone has also broadened its exports-- and 70 percent of primary and junior second- moving away from an almost exclusive reli- ary schools reach basic operational level. ance on diamonds to include rutile, bauxite, A new education sector strategy is under and cash crops. implementation and has received support from EFA-FTI. Health care has improved, but Sierra Leone's fiscal performance has improved remains short of some targets established in in the past seven years, but growth in recur- the Sierra Leone's Country Assistance Strat- rent spending caused in part by a temporary egy (CAS). Access to a primary health center subsidy to the power sector as well as higher within 5 km has increased to 58 percent. international food and fuel prices led to a Immunization levels, use of treated bed nets high fiscal deficit in 2008 (4 percent of GDP). and treatment of TB have all improved, but only the targets for TB cases cured and HIV/ Governance is improving. AIDS prevalence among youth are likely to achieve CAS objectives. The task of building an efficient and capable state in Sierra Leone is a major challenge, The poverty headcount has fallen by 5 percent following the erosion of institution during the between 2005 and 2007 (although the recent years of conflict. Good governance continues food price increases may have reversed that to be a key underlying principle of the second progress). Government budget allocations to Poverty Reduction Strategy Paper (PRSP II), education and health are now around 20 per- launched in June 2009. cent and 40 percent respectively, a significant increase. However, budgetary limitations in The government has enacted key legislation 2007 resulted in significant cuts in real trans- to support the decentralization process, and fers to these sectors. The country is near the significant responsibilities have devolved to bottom in international Human Development district councils. Public financial management Index indicators. has been strengthened through the introduc- tion of modern budgeting and accounting IDA CONTRIBUTIONS systems. Government has also adopted a new Chart of Accounts and requires donors to use IDA continues to be a major contributor to not it for regular reporting. However the govern- only maintaining the country's post-conflict ment still struggles to attract and retain recovery momentum and accomplishments, skilled staff. but also in supporting a number of projects 3 and advisory services that help with the transi- ment through community development initia- tion from fragility to development and cushion tives and income generating activities. IDA's the effects of the global financial crisis. National Social Action project sought to assist war-affected communities restore infrastruc- This support has come through various spe- ture and services, and to build local capacity cialized Trust Funds provided by the country's for collective action. By the end of 2008, 600 key development partners. As of July 20 2009, micro-projects had been approved; 908 hous- IDA's portfolio in Sierra Leone included eight ing units had been built and nearly 161 km of operations (7 projects and one technical feeder roads had been rehabilitated. In addi- assistance operation) for a total commit- tion, 145,000 person-days of employment had ment amount of US$219.5 million. This was been created on the rural roads component complemented by Trust Fund commitments of the public works program. Because the of US$64.2 million. beneficiaries drive and manage these activi- ties, many communities in project areas now Promoting post-conflict recovery. demonstrate higher levels of trust and more effective collective action." IDA re-engagement following the 1999 Peace Agreement focused on: (i) supporting the Supporting governance return of displaced people and ex-combatants and decentralization. to their communities and helping them rees- tablish normal economic and social activity; IDA has supported the fiscal decentraliza- (ii) quick-disbursing budget support, policy tion and devolution of state service delivery reform, and capacity-building; and (iii) improv- functions through the Institutional Reform ing access to health and education services. and Capacity Building project (ICRBP), co- financed by the United Kingdom and the IDA's partnership with Sierra Leone helped European Commission the National Social consolidate peace through various opera- Action project as well as general budget sup- tions including a multi-donor trust fund that port. Transparency of funding local councils financed the disarmament and demobiliza- is maintained through an openly publicized tion of 72,000 ex-combatants. Building on allocation formula. UN peacekeeping efforts, IDA was at the center of a closely coordinated effort among IRCB provided intensive training, technical development partners to support the govern- assistance and investment to help build the ment's efforts to rehabilitate community management capacity of local councils and schools, health clinics, markets, and roads. establish a transparent and accountable The rebuilding effort created the conditions governance process. Since the election of for the return of internally displaced persons, local councils in 2004, local governments refugees, as well as former combatants. have adopted basic budgeting, procurement and accounting procedures. Starting in 2005, Empowering vulnerable communities several services have been devolved to local in remote rural areas. councils including: fire prevention, education, youth and sports, solid waste management, IDA has been successful in strengthening and health care, social welfare, gender and chil- empowering communities and local govern- dren affairs, agriculture and food security, 4 fisheries and marine resources. Access and Health. Together with other development citizen satisfaction with primary education partners, IDA helped the government restore and health services improved between 2005 essential functions of the health delivery sys- and 2007, and a large number of community tem, rehabilitating basic health facilities in sub-projects have been implemented as part priority districts of the country. The program of a strengthening of local initiatives. provided improved equipment, supplies, and training for health workers in rural areas, All elected local councils received assistance especially in caring for pregnant women. IDA to develop three-year rolling development also helped the Ministry of Health improve its plans prepared through participatory pro- management efficiency. The ministry is now cesses; and all local councils prepared FY07 better able to assist district health teams budgets that complied with the content that deliver key services such as tuberculosis requirements of the Local Council Act of control and distributing treated bed nets 2004. against malaria. Promoting education and health. Data from 2005 and 2007 provide evidence of increased access to health care services and IDA has continued to support operations co- improved satisfaction with these services. financed by other development partners that Infant mortality and under-five child mortal- focus specifically on education and health. ity rates have begun to decline but remain very high: for every 1,000 live births, 179 Education. IDA's Rehabilitation of Basic children died in infancy and 270 died before Education Project has helped many students the age of 5 in 2007. acquire a basic education in Sierra Leone. The primary gross enrollment ratio (GER) Promoting private sector development. increased from 64 percent in 2004 to 101 percent in 2007. Enrollment in junior second- IDA and IFC have been instrumental in pro- ary school reached 44 percent in 2007. The moting structural reforms for private sector percentage of girls enrolled was 47 percent development, notably the public enterprise in primary and 41 percent in junior secondary reform and the Investment Promotion Act. schools. This success is attributed primarily To help Sierra Leone ramp up desperately to the abolition of school fees, the introduc- needed export earnings, IDA focused on the tion of school feeding programs in selected mining sector, working with the government areas, and improvements in educational to revise its mining policy to promote formal infrastructure. IDA has supported the govern- activity and attract private investment. The ment in rebuilding and operating schools in Foreign Investment Advisory Service has been areas of high demand (about 100 schools by involved in a program aimed at reducing the end of 2008), and in establishing teacher- administrative barriers and export promo- training programs. IDA also helped strengthen tion. As a result, Sierra Leone's ranking in the the capacity of the Ministry of Education to Doing Business report for 2009 has improved plan and manage the delivery of education in four key areas: starting a business; dealing services to rural areas. with construction permits; registering prop- erty; and trading across borders. 5 Improving energy access. projects with its development partners. In addition, development partners co-finance Sierra Leone's long-term strategy for increased a number of IDA projects through Trust Fund power generation has been hampered by resources. weak implementation. The production of power by the Sierra Leone National Power CHALLENGES AHEAD Authority (NPA) declined from a very low 14 megawatts in 2002 to 3.7 megawatts in 2008. Although Sierra Leone has passed the immedi- In 2007 IDA was instrumental in supporting ate post-conflict phase, the country still faces the rental of emergency power generators daunting challenges. High unemployment, for 12 months. The emergency power project low literacy and some of the worst health provided 15MW of continuous power through indicators in the world contribute to a high diesel generation in 2008, and was intended poverty rate of 66 percent. Life expectancy to bridge the delayed arrival of continuous is only 48 years. Sierra Leone, a country with power from the Bumbuna hydro-electric dam vast agricultural and mineral resources, has a which is expected in September 2009. In GDP of only about US$1.7 billion. Sierra Leone close collaboration with other development continues to need substantial investments in partners, IDA funded the capacity and energy order to build on its post-conflict recovery. charges for the rental generators through a reallocation of credit proceeds of the Power The country's challenges include: and Water project. Meeting the MDGs. Sierra Leone's maternal, PARTNERSHIPS infant, and under-five child mortality rates are among the highest in the world: 286 Sierra Leone is a signatory to the Paris Decla- children out of 1,000 die before the age of ration, and its PRSP provides the framework five. To bring health indicators up to accept- for alignment and harmonization of donor able standards, the government will need interventions. A Government Aid Policy docu- to invest in water and sanitation, improve ment is currently being discussed with devel- delivery systems, and upgrade infrastructure, opment partners and is due to be adopted particularly roads. Only 60 percent of urban before the end of 2009. Under a multi-donor populations and less than 15 percent of rural budget support framework involving the Africa populations have access to clean water. Free- Development Bank (AfDB), IDA, the European town's water system has not been expanded Commission and the United Kingdom's DFID, since before the conflict when the city was coordination among members and with the only a third of its present size. government has improved. An integrated Public Financial Management program is Infrastructure. Lack of power, water and being designed by the four donor partners. transportation also prevent the growth of the Sharing of analytical works among members private sector and creation of jobs. In order has also yielded positive results. to tackle these and other challenges, Sierra Leone has prepared its second Poverty Reduc- IDA has also sought to coordinate the design tion Strategy Paper (PRSP II) covering the and implementation of health and education period 2008-2012. The focus of PRSP II is to 6 reduce poverty through increased economic In order to support Sierra Leone as it struggles growth, with an emphasis on private sector to consolidate the hard-won gains of the past development. seven years and to advance its new develop- ment strategy, IDA and other partners will The PRSP II emphasizes the following four need to continue to provide sustained sup- priorities: port in the crucial years ahead. The United Kingdom has offered to host a Consultative i. providing reliable power supply in the Group meeting with development partners in country; November 2009 in London. ii. raising quantity and value-added pro- ductivity in agriculture and fisheries, August 2009. emphasizing productive capacities of the http://www.worldbank.org/ida poor and vulnerable; iii. developing a national transportation net- work to enable the movement of goods and people and thereby facilitate increases in investment and economic activity; and iv. ensuring sustainable human develop- ment through the provision of improved coverage of the basic social services and social protection needs of the poor and vulnerable. 7