Published: December 10, 2024
WASHINGTON — The World Bank Board has approved $40 million for Liberia’s Resilient and Inclusive Growth Development Policy Financing to promote inclusive growth and enhance resilience by improving fiscal sustainability; enabling foundations for private sector development; and strengthening social, disaster, and climate resilience. Additionally, the operation includes a $20 million Catastrophe Deferred Drawdown Option (Cat DDO) – the first of its kind for the World Bank’s partnership with Liberia. The Cat DDO can provide immediate liquidity in the event of a declared natural disaster or health emergency and will also strengthen Liberia’s ongoing risk reduction efforts.
This Development Policy Financing marks the first in a programmatic series of three operations aimed at supporting Liberia’s efforts to foster inclusive growth and resilience. It is closely aligned with the objectives of Liberia’s forthcoming development strategy: the Agriculture, Roads, Rule of Law, Sanitation, and Tourism Agenda for Inclusive Development, and the World Bank Group’s Country Partnership Framework for Liberia.
“This new financing is designed to help Liberia address underlying drivers of fragility, including weak governance, limited economic and social inclusion, and youth unemployment,” said Georgia Wallen, World Bank Liberia Country Manager. “It will also strengthen institutions for inclusive and sustainable growth, build human capital to further engage emerging economic opportunities, and help address infrastructure gaps to foster more equitable development.”
The financing also aims to strengthen fiscal resilience by improving domestic revenue mobilization, enhancing transparency and efficiency in public procurement, and optimizing cash management practices. To enable private sector development, the operation promotes financial inclusion, lays the foundation for a digital economy, and improves transparency in the power sector. Additionally, it supports social, disaster, and climate resilience through measures aimed at advancing gender equity, improving climate resilience and disaster risk management, and implementing effective land use policies to ensure sustainable and inclusive development.
“The reforms under this DPO aim to promote inclusive and resilient private sector-led growth, enhancing economic stability and fostering sustainable development. In addition, the operation places strong emphasis on strengthening social systems and bolstering disaster and climate preparedness,” said Muhammad Waheed and Mary Elinor Boyer, Co-Task Team Leaders.
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