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Acronyms ACP Africa, Caribbean, Pacific ACPA Accra Comprehensive Peace Agreement AfDB African Development Bank AFL Armed Forces of Liberia AGOA African Growth Opportunity Act APIS Agricultural Policy Initiative Statement AU African Union BCE Bureau of Customs and Excise BoB Bureau of the Budget BMA Bureau of Maritime Affairs BWI Bretton Woods Institutions CA Contribution Agreement CAFF Children Associated with Fighting Forces CAO Chief Authorising Office CAP Consolidated Appeals Process CBL Central Bank of Liberia CDC Congress for Democratic Change (Political Party) CDP Community Development Programme CESD Community Empowerment and Skills Development CFSP Common Foreign and Security Policy CMC Contracts and Monopolies Commission CMCo Cash Management Committee CRC County Rehabilitation Component CSA Civil Service Agency CSP Country Strategy Paper CSO Civil Society Organisation DDRR Disarmament, Demobilisation, Reinsertion and Reintegration DFID Department for International Development DRC Danish Refugees Council EC European Commission ECHO European Commission Humanitarian Office ECSEL European Community Support Programme for Education in Liberia ECOMOG ECOWAS Military Observer Group ECOWAS Economic Community of West African States EDF European Development Programme EGSC Economic Governance Steering Committee EIB European Investment Bank EPA Economic Partnership Agreement EnPA Environment Protection Agency EPP Emergency Power Project ETF Elections Trust Fund EU European Union EUMS European Union Member States FDA Forestry Development Authority FDI Foreign Direct Investment FLEGT Forestry Law Enforcement, Governance and Trade FS Focal Sector FY Financial Year GAO General Audit Office GBV Gender-Based Violence GDP Gross Domestic Product GEMAP Governance and Economic Management Assistance Programme GRC Governance Reform Commission HIPC Heavily Indebted Poor Countries HIV/AIDS Human Immunodeficiency Virus/Acquired Immune Deficiency Syndrome HRU Human Rights Unit IC International Community ICCPR International Covenant on Civil and Political Rights ICGL International Contract Group for Liberia ICS Institutional Strengthening Component IDA International Development Agency IDP Internally Displaced Person IF Investment Facility IMF International Monetary Fund INGO International Non-Governmental Organisation INHRC Independent National Human Rights Commission iPRS Interim Poverty Reduction Strategy IP Indicative Programme IPPPP Interim Public Procurement Policy Procedures IMF International Monetary Fund ImP Implementing Partner IRCL Inter-Religious Council of Liberia ISCBP Institutional Strengthening Capacity-Building Programme ITAC International Technical Advisory Committee JIU Joint Implementation Unit JNA Joint Needs Assessment LACE Liberian Agency Community Empowerment LCD Local Community Development LEC Liberian Electricity Cooperation LEGF Liberian Emergency Governance Fund LFI Liberian Forestry Initiative LIPA Liberian Institute of Public Administration LISGIS Liberian Institute for Statistic Geographical Information System LNP Liberia National Police LOIC Liberian Opportunities Industrialisation Centre LPRC Liberian Petroleum Refining Corporation LRDC Liberia Reconstruction and Development Committee LRRD Linking Relief, Rehabilitation and Development LTC Liberia Telecommunication Corporation LURD Liberians United for Reconciliation and Democracy LWSC Liberia Water and Sewage Cooperation MDG Millennium Development Goals MHSW Ministry of Health and Social Welfare MoCI Ministry of Commerce and Industry MoE Ministry of Education MoF Ministry of Finance MoLME Ministry of Lands, Energy and Mine MoPW Ministry of Public Work MODEL Movement for Democracy in Liberia MPEA Ministry of Planning and Economic Affairs MRU Mano River Union MW Mega Watt NAO National Authorising Office NCDDRR NationalCommissionforDisarmament/Demobilisation/Reinsertion/Reintegration NDS National Drug Service NEC National Elections Commission NFS Non-Focal Sector NGoL New Government of Liberia NGO Non-Government Organisation NHSWP National Health and Social Welfare Plan NIMAC National Information and Management Committee NPA National Ports Authority NPFL National Patriotic Front for Liberia NPP National Patriotic Party NPV Net Present Value NRRB National Reconciliation and Reunification Bureau NTGL National Transitional Government of Liberia NTLA National Transitional Legislative Assembly OPCAT Optional Protocol to the Convention Against Torture OECD Organisation for Economic Cooperation and Development PCRCBP Post-Conflict Reconstruction and Capacity-Building Programme PF Partners Forum ii PPCA Public Procurement and Concessions Act PPCC Public Procurement and Concessions Commission PRGF Poverty Reduction and Growth Facility RFTF Result-Focused Transitional Framework RIA Roberts International Airport RIMCO R(FTF) Implementation and Monitoring Committee RRM Rapid Reaction Mechanism SES Special Executive Service SIDA Swedish International Development Agency SMP Staff Monitoring Programme SOE State-Owned Enterprises SSS Special Security Service STI Sexually Transmitted Infection TA Technical Assistance TCF Technical Cooperation Facility TF Trust Fund TFT Task Force Trafficking TRC Truth and Reconciliation Commission TSA Transitional Safety Net Allowance UK United Kingdom UN United Nations UNDP United Nations Development Programme UNEP United Nations Environment Programme UNHCR United Nations High Commissioner for Refugees UNHDI United Nations Human Development Index UNICEF United Nations Children’s Fund UNIOSIL United Nation Integrated Office in Sierra Leone UNMIL United Nations Mission in Liberia UNOCI United Nations Operation in Côte d’Ivoire UNOHCR United Nations Office of the High Commissioner for Human Rights UNFPA United Nations Population Fund UNSC United Nation Security Council UP Unity Party (Political Party) USA United States of America USAID United States Agency for International Development USG United States Government VPA Voluntary Partnership Agreement WB World Bank WFP World Food Programme WHO World Health Organisation WTO World Trade Organisation iii Table of Contents Statement of Intent................................................................................Error! 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Acronyms............................................................................................................................................. i Table of Contents .............................................................................................................................. iv Summary............................................................................................................................................ vi PART 1: STRATEGY PAPER ............................................................................................................ 7 CHAPTER I: The framework of relations between the donor and the partner country ............... 7 I. 1 General objectives of the EC’s external policy........................................................................... 7 I. 2 Strategic objectives of cooperation with the partner country..................................................... 7 I. 3 Main bilateral agreements........................................................................................................... 8 CHAPTER II: COUNTRY DIAGNOSIS ........................................................................................... 9 II. 1 Analysis of the political, economic, social and environmental situation in the recipient country................................................................................................................................................ 9 II. 2 Economic and commercial situation....................................................................................... 12 II. 2.1 Economic Situation, Structure and Performance............................................................... 12 II. 2.2 Structure and Management of Public Finances................................................................. 14 II. 2.3 Assessment of the Reform Process ..................................................................................... 15 II. 2.4 Trade Policy and External Environment............................................................................ 16 II. 3 Social situation, including decent work and employment ...................................................... 17 II. 3.1 Humanitarian Situation...................................................................................................... 17 II. 3.2 Poverty and Social Situation.............................................................................................. 17 II. 4 Environmental situation .......................................................................................................... 18 II. 5 The country in the international context ................................................................................ 18 II. 5.1 Liberia in the Regional Context......................................................................................... 18 II. 5.2 Liberia in the International Context .................................................................................. 18 II. 5.3 Poverty Reduction Analysis ............................................................................................... 19 II. 6 The Recipient Country’s Development Strategy ..................................................................... 19 II. 6.1 Overall Development Strategy..........................................................................................