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                      LIBERIA: COUNTRY ASSISTANCESTRATEGY

                          CHAIRMAN'S CONCLUDING REMARKS

                              Meeting of Executive Directors of IDA

                                          April 21,2009


The Executive Directors discussed the Country Assistance Strategy (CAS) for Liberia.

         Directors commended the Authorities for their efforts to restore macroeconomic stability,
increase transparency and improve governance and accountability. In particular, they welcomed
the govemance reforms and anti-corruption efforts already undertaken and suggested further
strengthening in these areas. They noted however, that Liberia is still a fragile country with
immense development challenges. To this end, Directors stressed the importance of continued
support from the international community.         They agreed that rebuilding state institutions,
particularly public financial management and the civil service, ensuring pro-poor growth, as well
as restructuring the country's infrastructure are critical to the successful implementation of the
country's PRSP and the Bank's program.           On infrastructure, several Directors stressed the
importance of paying greater attention to projects in rural areas. Directors further underscored
the strategy's emphasis on the response to the global financial crisis and the need for increased
efforts to help Liberia mitigate the impact of a decline in private flows and FDI.

         Directors welcomed the joint CAS with the African Development Bank, building on the
successes in implementing the joint Interim Strategy Note and establishing an appropriate
division of labor across a number of priority areas, such as the water sector and economic
governance. They also noted the selective approach and the results focus of the strategy.
Directors broadly supported the proposed level and composition of World Bank Group assistance,
and the planned mix of lending and knowledge services.              Directors welcomed the CAS's
emphasis on governance and public financial management capacity, while ensuring that all Bank
fiduciary standards are observed. Directors underscored the large risks associated with the CAS
implementation, including a return to conflict, and regional instability, and urged the Government
and the Bank to continue to mitigate such risks.

         With regard to the private sector, Directors urged the IFC to step up its efforts including
catalyzing FDI flows, building capacity to strengthen the investment climate, and supporting
private investors and public-private partnerships in infrastructure. The importance of enhanced
support for Small and Medium-sized Enterprises was also stressed. They further suggested
Liberia could benefit from increased investment in the agricultural sector, given the large
potential for employment generation.      Several Directors underscored the need to ensure the
Bank's focus on gender continues and deepens throughout the CAS period. In particular, they
stressed the need to improve women's economic empowerment and access to resources,
especially in rural areas, and to address gender-based violence. A suggestion to include gender
outcomes and indicators in the results framework was agreed.

         Directors noted the close donor coordination in Liberia as evidenced by the concerted
action on economic governance and commitments to the Liberia Reconstruction Trust Fund for
infrastructure. They urged enhanced collaboration including adequate in-country coordination
and follow- through on aid commitments in a timely manner.


         Finally, Directors looked forward to the CAS Progress Report.