Liberia, at the time of the programme formulation and design in 2006-07, had only recently emerged from a long period of strife – the economy had collapsed, poverty levels had dramatically increased, and the institutions of governance had been undermined.
The incoming government, elected in 2005, proceeded to prepare a national strategy to address these multiple problems, a key plank of which was to begin to create and empower representative local governments, and to reduce the centralized grip on decisionmaking that Monrovia had long held.
There is no history of elected local government in Monrovia and local administrations are all staffed by central appointees, at County and District level. Similarly, public expenditure management for basic service delivery has long been centralized and under the control of the sector ministries.
However in recent years government had moved to create two funding mechanisms for basic public infrastructure, the County, and later the Social, Development Funds (CDF and SDF), which for the first time allowed some local discretion in their management, but which also exhibited some serious management problems and badly needed reform.