USIPeace BriefingIs Liberia’s Governance and Economic Management Assistance Program a "Necessary Intrusion?"By Raymond Gilpin and Emily Hsu
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Improving economic management after almost two decades of violent conflict and civil unrest has been a top priority of Liberian President Ellen Johnson Sirleaf’s reform agenda since her January 2006 inauguration. In April 2008, her administration could point to appreciable improvements in fiscal performance and economic progress, signs that the desired enhancements in economic management may have started to materialize. Many observers speculate whether these developments could be attributed to the country’s multi-stakeholder Governance and Economic Management Assistance Program (GEMAP). If so, what lessons could be learned for other post-conflict countries? At an April 9, 2008 USIP event on the subject, the Liberian Finance Minister, the Honorable Antoinette Sayeh, reflected on GEMAP’s impact, highlighted some challenges and discussed its applicability as a model for other countries. While recognizing the program’s contributions, she emphasized that it is only one component of a much broader framework of reforms initiated since 2006. Sayeh also underscored the vital leadership role that President Sirleaf has played in the design and implementation of Liberia’s public expenditure reform program. Responding to Sayeh’s remarks were Eric Nelson, principal associate at Nathan Associates (Virginia, USA) and Raymond Gilpin, director of the Economies and Conflict Center of Innovation. Daniel Serwer, vice president of the Center for Post-Conflict Peace and Stability Operations, moderated. GEMAP OverviewAfter assuming office in 2003, the National Transitional Government of Liberia (NTGL), established under the Accra Comprehensive Peace Accord, failed to control public expenditures, generate adequate revenues or utilize the country’s resources in a judicious, transparent manner. Mindful of the centrality of sound economic policies and governance in peacebuilding, a consortium of regional and international stakeholders initiated a process of consultations with the NTGL to design a mechanism to ensure that donor and national resources are used efficiently and effectively. Following months of difficult negotiations, concerns about perceived infringements on Liberia’s sovereignty, the release of a comprehensive audit report on public enterprise financial mismanagement in Liberia (funded by the European Commission), an investigation of corruption within the office of the NTGL Chairman (funded by the Economic Community of West African States (ECOWAS)) and threats of major donors to withdraw all support, the NTGL signed the GEMAP agreement on September 9, 2005.1 GEMAP’s main focus areas are listed in Box 1. The most prominent feature of the program involves imposing rigorous controls on public expenditure by placing internationally recruited experts with co-signature authority in key ministries, agencies and state-owned enterprises. Many analysts consider GEMAP to be one of the most innovative experiments in economic intervention in recent history. The Economic Governance Steering Committee, chaired by the Liberian head of state with the U.S. ambassador to Liberia as deputy chair, provides oversight for GEMAP’s implementation. Finance Minister Assesses Progress in Economic GovernanceIn evaluating the impact of GEMAP in Liberia, Sayeh discussed the program’s successes and challenges within the context of much broader governance reforms instituted by the Sirleaf administration since 2006. She underscored the administration’s "extraordinary commitment to reform," emphasizing that GEMAP has been complementary to national efforts to reduce corruption, improve fiscal performance and build capacity, while promoting peace and prosperity for all Liberians. "Since the inauguration of President Sirleaf’s administration, Liberia has witnessed substantial progress in many of the areas targeted by GEMAP," Sayeh said. "However, it is difficult to disentangle which and to what extent progress has been a result of GEMAP’s measures or of the administration’s own commitment to significant public financial management reform, of which GEMAP has been one part." Some Progress
Overcoming Challenges
Moving Ahead The minister recognized that while GEMAP continues to face a number of challenges, the experience has been largely positive. She attributes the program’s achievements to two main factors. First, she emphasized President Sirleaf’s strident leadership and unwavering commitment to improved economic management—in contrast to the reluctance and intransigence of the previous administration. Second, the Sirleaf administration has not implemented GEMAP in isolation, nor has it been considered a panacea. GEMAP is part of a much broader, country-owned reform process. Sayeh concluded by recalling sentiments expressed in President Sirleaf’s 2006 inaugural speech: GEMAP is a "necessary intrusion," but one that the administration must "strive to render non-applicable in a reasonable period of time" by building competence and integrity in economic management. Considering GEMAP’s ApplicabilityWhile Liberia’s GEMAP has had mixed reviews, there is some consensus that other post-conflict states could learn a substantial amount from the experience.2 The discussants, who offered their perspectives after the minister’s remarks, echoed this idea. "GEMAP works, but it doesn’t work perfectly. There’s still a lot of corruption, more on the petty scale than on the grand scale, and there have been errors," said Nelson, who was involved in GEMAP negotiations and subsequent implementation. In his view, the biggest drawback has been insufficient attention to Liberian public opinion. He added that the design of GEMAP, which began as a technical process, soon became a heated political issue. Negotiators were "blindsided" by the ability of members of the NTGL to cast the dispute in the media as an issue of sovereignty. This action sowed the seeds of much of the current suspicion. While he emphasized that GEMAP is a unique program designed specifically for Liberia, Nelson identified key lessons from the experience that could be relevant elsewhere.
Gilpin believes the GEMAP experience offers select applicability for the urgent and unique context of conflict-affected regions. He emphasized the importance of ensuring a tangible "peace dividend" and demonstrating to the population that "peace makes sense" through effective economic management and enhanced prospects for economic development. Gilpin also highlighted the importance of GEMAP’s multilateral character, and stressed the value of the collaborative process that took place in negotiating and implementing the program. Gilpin identified key questions that must be answered when considering GEMAP as a model for other conflict-affected states. International partners must ask themselves:
Correspondingly, national authorities must ask themselves:
ConclusionAlthough the agreement was signed in 2005, GEMAP made notable inroads in economic governance after the Sirleaf administration assumed office in January 2006. On its own, GEMAP’s impact would have been more limited. Its achievements could be traced to Liberia’s political will to implement the program within the context of a much broader public sector reforms. Transplanting GEMAP wholesale is not a good idea. However, elements of the process and program could be helpful for other countries. Notes1. The GEMAP agreement was reached between the National Transitional Government of Liberia and bilateral partners (including the United States, Ghana and Nigeria) and multilateral/regional institutions (including the United Nations, African Union, World Bank, International Monetary Fund and Economic Community of West African States). See http://www.gemapliberia.org/files/GEMAP_Final_and_signed_by_NTGL.pdf 2. Examples are: "Liberia’s Governance and Economic Management Assistance Programme (GEMAP): A joint review by the UN Department of Peacekeeping Operations' Peacekeeping Best Practices Section and the World Bank’s Fragile States Group" by Renata Dwan and Laura Bailey (May 2006) http://www.gemapliberia.org/files/WB_Joint_review_of_GEMAP.pdf (accessed 04/24/08); and "An Update on Liberia’s Progress on GEMAP" by Friends of the Earth (May 2006) http://www.foe.org/camps/intl/africa/GEMAP.pdf (accessed 04/24/08) Of Related Interest
This USIPeace Briefing was written by Raymond Gilpin, director, Economies and Conflict Center of Innovation, and Emily Hsu, program specialist, in the Center for Post-Conflict Peace and Stability Operations at the United States Institute of Peace. The views expressed here are not necessarily those of USIP, which does not advocate specific policies. The United States Institute of Peace is an independent, nonpartisan institution established and funded by Congress. Its goals are to help prevent and resolve violent international conflicts, promote post-conflict stability and development, and increase conflict management capacity, tools, and intellectual capital worldwide. The Institute does this by empowering others with knowledge, skills, and resources, as well as by directly engaging in peacebuilding efforts around the globe. Briefings ArchivePublicationsUSIP Weekly BulletinReceive notices of USIP publications, events, and more via e-mail. |
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