Liberia - Third Education Project

Document of FiLE COPY The World Bank FOR OFFICIAL USE ONLY Report No. P-2044-LBR REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE REPUBLIC OF LIBERIA FOR A THIRD EDUCATION PROJECT April 21, 1977 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS The official monetary unit is the Liberian dollar, with a par value equal to that of the US dollar. Apart from the Liberian dollar, the US dollar is legal tender in Liberia. FISCAL YEAR Government: July 1 - June 30 ABBREVIATIONS AITB - Agricultural and Industrial Training Board FTI - Forestry Training Institute LAMCO - Liberian-American Mining Company PIU - Project Implementation Unit, Ministry of Education TTC - WVS Tubman Teachers College, University of Liberia STC - Science and Technology Center (attached to Secondary Schools) VTC - Vocational Training Center NCVTET - National Council for Vocational and Technical Education and Training FDA - Forestry Development Authority  FOR OFFICIAL USE ONLY INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT REPORT AND RECOMMENDATION OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE REPUBLIC OF LIBERIA FOR A THIRD EDUCATION PROJECT 1. I submit the following report and recommendation on a proposed loan to the Republic of Liberia for the equivalent of US$6.3 million to help finance a third education project. The loan would have a term of 20 years, including 4-1/2 years of grace, with interest of 8.2 percent per annum. PART I: THE ECONOMY 2. A basic economic mission visited Liberia in March 1973. Its report "Liberia: Growth with Development - A Basic Economic Report" (No. 426a-LBR dated March 1, 1975) was distributed to the Executive Directors. An updating report entitled "Liberia: Economic Memorandum" (No. 873-LBR dated September 15, 1975) has also been distributed subsequently. An economic mission visited Liberia in November/December, 1976 to review the Four-Year Development Plan (1976-1980) and its report is in preparation. Country data sheets are con- tained in Annex I. Structural Characteristics 3. The growth of Liberia's economy remains heavily dependent on the performance of the enclave sector consisting mainly of: (a) iron ore mines; (b) rubber plantations; and (c) forestry concessions. These enclaves are the main source of export earnings and contribute a sizeable share of govern- ment revenues. Iron ore mining is by far the largest single activity in the enclave sector, accounting for about one third of gross domestic product at factor cost. There are only limited linkages between the enclaves and the rest of the economy; as a result, the benefits of economic growth have been unevenly distributed. Annual repatriation by foreigners of profits and savings is equivalent to about 20 percent of gross domestic product. 4. At the other extreme, traditional agriculture has minimal inter- action with the monetized economy; however, it supports the majority of the population - as much as 70 percent. With a population of about 1.5 million, average per capita GNP in 1975 was US$410; about 4 percent of Liberians have per capita income levels of about US$3,000 or more, while the majority live at or near subsistence level with income of about US$100 per annum. To help redress this imbalance the Government is trying to increase its earnings from the concessions and use the resources to diversify the economy with increased participation by Liberians. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without Worid Bank authorization.  -2- Development Plan 5. The Government has recently prepared a Four-Year Development Plan covering the period July 1, 1976 to June 30, 1980. In preparing the Plan the Government was assisted by a planning team financed jointly by the Bank, United Nations Development Program (UNDP), United States Agency for Inter- national Development (USAID) and the Government (Reference President's Memo- randum to the Executive Directors, No. R74-61 dated March 25, 1974). The Plan identifies the basic, long-term objectives of Liberia's socio-economic development as: (a) diversification of production; (b) dispersion of sustain- able socioeconomic activities throughout the country; (c) greater involvement of Liberians in development activities; and (d) equitable distribution of the benefits of economic growth so as to ensure an acceptable standard of living for the people throughout the country. The average annual growth of real GDP during the Plan period is envisaged at around 6.8 percent. However, because of delays in the implementation of expected investments in iron ore mining and some slackening in demand for the country's main exports, the recent Bank economic mission has estimated that real growth during the four- year period is unlikely to exceed 3-4 percent. Total development expenditure is projected at US$415 million, of which US$251 million would be financed from foreign sources and US$164 million financed domestically. Firm commitments accounted at the start of the Plan for almost 60 percent of the expected foreign financing. 6. The Development Plan attaches high priority to agriculture, parti- cularly integrated rural development, as the cornerstone of the Government's diversification strategy. The objective is to diversify and modernize agricultural production, increase productivity, improve associated rural economic activities such as marketing and processing, and provide social and physical infrastructure to improve the quality of life in the rural areas where most Liberians live. Recent Economic Developments 7. During 1973-1975, Liberia, like most other developing countries, was hit by higher import prices and international inflation. While strong world demand for Liberia's major export, iron ore, brought large gains in export prices in 1974, the 1975 recession in the industrialized countries significantly reduced the demand for the country's most important export commodities -- iron ore, rubber and timber. With growth performance con- tinuing to be largely a function of enclave activities, growth of real GDP - which averaged about 6.4 percent a year in the 1967-1970 period -- has slowed down significantly and is estimated to have been about 2.5 percent in 1976. 8. Liberia has had a long history of sound fiscal management and pub- lic sector resources have not come under undue pressure during the past decade. A satisfactory growth in government revenues averaging about 13.5 percent per year between 1970-1975 enabled the Government to finance increasing  -3 expenditures. Recurrent expenditures during this period grew by about 10 percent while development expenditures increased nearly fourfold. However, public sector finances may come under increased pressure in the medium term mainly because of an anticipated acceleration in the rate of growth of gov- ernment expenditures -- particularly current expenditure -- coupled with a more moderate rate of growth in revenues. The rate of growth of government revenues is likely to be moderate in view of the anticipated lower GDP growth rate as well as the uncertain future of world demand for iron ore and the fluid state of the current negotiations between the Government and the iron ore companies regarding the government's share in profits and future dividend distribution policies. Balance of Payments 9. During the 1964-1972 period, the value of merchandise exports grew by 10 percent and imports by 5.9 percent annually in current prices. There- after, from 1972-1974, mostly reflecting accelerated international inflation, imports rose by 29 percent annually, exceeding the 22 percent annual export growth. Oil imports increased from US$12 million in 1972 to US$56 million in 1974, but declined to US$48 million in 1975 due to reduced mining activities. Nevertheless, Liberia achieved a trade surplus of US$110 million in 1974, US$63 million in 1975 and an estimated US$99 million for 1976. During 1975, Liberia received aid commitments of US$93 million -- US$82 million in loans and about US$11 million in current transfers. The World Bank Group was the largest donor in terms of commitments (43 percent). The other major donors were United States, Italy and the African Development Bank. Creditworthiness 10. Liberia's external public debt outstanding and disbursed was esti- mated at about US$170 million as of December 1975. Debt service payments as a proportion of exports of goods and non-factor services were estimated at 5.1 percent in 1975 as compared to 5.7 and 7.7 percent for 1974 and 1972 respectively. Debt service payments as a percentage of government revenues have also declined from 24.3 percent in 1972 and 21.1 percent in 1974 to 17.3 percent in 1975. Both ratios are projected to decline further in the next few years as the final portion of the heavy debt incurred in the early 1960s is paid off. The Bank Group share of the public debt outstanding and disbursed is presently about 16 percent and, based on commitments of the aid agencies up to 1975, is projected to increase to about 30 percent by 1980; as a propor- tion of public debt servicing liability, the Bank Group share is projected to increase from its present level of about 12 percent to about 35 percent in 1980. Even with an expanded public borrowing program, Liberia's debt service ratio through the 1980s is expected to remain relatively modest unless there is an unexpected deterioration in external conditions. It should be noted, however, that Liberia's exports are highly concentrated in a few commodities (mainly iron ore and rubber) with unstable world market prices. Nevertheless, given the country's satisfactory performance in economic management and its modest debt service ratio, Liberia should be regarded as creditworthy for the proposed loan.  - 4 - PART II: BANK GROUP OPERATIONS IN LIBERIA 11. The Bank has made 13 loans (including one Third Window loan) for projects in Liberia totalling US$71.2 million; there have been 5 IDA credits totalling US$24 million, and one technical assistance grant of US$200,000 for development planning. IFC has made two equity investments totalling US$555,000 in the share capital of the Liberian Bank for Development and Investment (LBDI). The Bank loans have been for roads, port expansion, power and LBDI; IDA credits have been for education and agriculture. Annex II contains a summary statement of Bank loans, IDA credits and IFC investments as of February 28, 1977 and notes on the execution of ongoing projects. 12. The objectives of Bank Group operations in Liberia are: (a) to help increase the absorptive capacity of the economy and enable Liberians to take greater initiatives in developing their own resources for the benefit of their own people; (b) to support policies and programs leading to broader sharing of the fruits of economic progress; (c) to help the Government in broadening the economic base; and (d) to assist the Government in mobilizing development resources from other external agencies. 13. Consistent with these overall objectives, Bank Group lending for education in Liberia has been aimed at: (a) improving the quality of education by raising standards and enhancing its relevance to Liberian needs; (b) expanding the system, especially in rural areas, so as to promote geographical equity; and (c) meeting urgent manpower requirements. The proposed third education project would assist in achieving these objectives. It would help: (a) improve programs of science and technology in rural secondary schools in four counties; (b) strengthen secondary teacher training and administration and planning of secondary education; (c) strengthen the architectural services of the Ministry of Education for better preparation and implementation of projects; and (d) meet urgent needs for skilled manpower by supporting indus- trial, vocational and forestry training. 14. In line with the priorities established in the Government's Four-Year Development Plan, the Bank is also giving increasing emphasis to the agricul- tural sector. We are supporting two agricultural development projects in Lofa and Bong Counties under co-financing arrangements with the United States Agency for International Development (USAID). A rubber project is being prepared to assist small and medium size Liberian rubber farms in rehabilitating and planting rubber trees which would involve a total of about 60,000 acres throughout the country. Also under preparation is a forestry development project which would initiate a pulpwood plantation program and provide assis- tance to the newly established Forestry Development Authority for better management and development of Liberia's forest resources.  - 5 - 15. In infrastructure, a water supply project is under preparation which would extend the Monrovia water supply system and help strengthen the manage- ment and finances of the Liberia Water and Sewerage Corporation. A fourth highways project is also being considered which might include construction and improvement of high priority sections of selected primary and secondary roads, road maintenance and assistance to the domestic construction industry. In the power sector, an interim power project is being prepared which would include expansion of the Liberia Electricity Corporation's thermal power generating facilities until feasibility studies have been completed for a possible hydro-power development project. PART III: THE EDUCATION SECTOR Sector Background 16. The Ministry of Education controls general and technical education at the pre-university level. Vocational training for industry and training for agriculture and forestry is coordinated by the National Council for Vocational and Technical Education and Training (NCVTET). Higher education is provided by two institutions -- the autonomous state University of Liberia and the private state-aided Cuttington College. 17. The education sector has suffered from low quality and geographical inequities. With respect to quality, classrooms are usually crowded and schools often lack necessary teaching equipment and supplies. In addition, teaching has remained largely theoretical. Science and practical subjects have been neglected and only 2 percent of those enrolled in secondary schools in 1975 were in technical education programs. It is also difficult to attract and retain good teachers: only 25 percent of the primary teachers are trained and there are virtually no Liberian graduate teachers. Moreover, only about 14 percent of pupils entering grade 1 graduate from grade 12. The university experiences high attrition and repetition rates, especially in science-based programs among first-year students. Neglect of the rural areas is evidenced in several ways. The schools in Monrovia are better financed than rural schools and only in Monrovia is there a public school properly equipped for science and technology. With 15 percent of the total population, Monrovia has 34 percent of total lower secondary and 55 percent of total upper secondary enrollments. The high illiteracy rate (60 percent of males and 85 percent of females over 15 years of age) is almost entirely a rural phenomenon. 18. In recent years, Government has had some success in dealing with these problems. First, considerable progress has been made in improving access to education. Enrollment ratios of 65 percent at the primary and 15 percent at the secondary level represent a doubling during the period 1970-75; these, and pupil/teacher ratios of 35:1 at the primary and 26:1 at the secondary level, are about average for Africa. Second, Government has recently increased teachers' salaries, although at the primary level they remain at the equivalent of only twice per capita GNP, the lowest in Africa.  -6- Third, through projects such as the Bank Group-assisted First and Second Education Projects there has been improvement in educational planning, manpower planning and educational administration. There have also been extensions and improvement of teacher training and expansion of educational opportunities in rural areas. The proposed Third Education Project would deal further with sector problems by helping to improve planning and adminis- tation, make education more responsive to Liberia's manpower needs, and create new opportunities for science and technology education in rural areas. Manpower Requirements 19. As a result of the deficiencies in the country's educational and training systems, there is an acute shortage of Liberian manpower at all levels, requiring the country to depend extensively on expatriates. The Government has decided that public and private sector training programs and employment policies should aim at Liberianizing the work force as expedi- tiously as possible. It is estimated that the modern sector will require 14,000 new workers per year over the 1974-82 period, the greatest need being for industrial production and related workers (28 percent) and for agricul- tural, forestry and related workers (27 percent). Skilled workers from these two categories will comprise about 20 percent of total annual demand. It is also estimated that the forestry sub-sector will need over the 1975-1985 period an additional 5,000 vocational, 800 technical and 140 professional personnel, or an average yearly requirement of about 600 workers. Total annual demand for skilled workers in the electrical, automotive, mechanical and construction trades is about 1,700 with the Monrovia area requiring about 700. Education and Training Strategy 20. The Government's educational objectives, summarized in the 1976-80 National Development Plan, are to: (a) Improve the quality of education at all levels, in particular by: (i) diversifying primary and secondary level curricula, and increasing the emphasis on science, technical and practical subj ects; (ii) increasing the supply of trained teachers, training school supervisors, strengthening examinations and testing services, increasing teachers' salaries, producing and supplying suitable textbooks, and providing better school buildings; (iii) improving the programs and equipment for technical training and practical course work; (iv) improving the university by providing opportunities to develop the staff through training and research on local problems, improving remedial services, providing better screening of entrants and better physical facilities, and restricting the growth of new programs.  - 7 - (b) Reduce geographical inequities by concentrating the expansion of school places in rural areas, especially under a community schools program for primary and adult education, and by pro- viding laboratories and workshops in rural secondary schools. 21. With respect to manpower development, a National Council for Voca- tional and Technical Education and Training (NCVTET) has been established to coordinate national vocational training programs and policies. Its secretariat, the Manpower Planning Division of the Ministry of Planning and Economic Affairs, has undertaken manpower surveys and planning and has produced basic data on the distribution of employment in Liberia. An Agricul- tural and Industrial Training Board (AITB) is to be established under this proposed project to coordinate and implement policies and programs related to agricultural and industrial training in the public and private sectors. The Institue of Public Administration and the Civil Service Agency have been established to strengthen public administration and to improve training and personnel administration. Middle-level training programs are being organized, in collaboration with Sierra Leone, in such specialized fields as customs, forestry and telecommunications. In its plans for manpower development, the Government is particularly concerned with training Liberians for public and private sector jobs in skills that will bring immediate benefits, notably those associated with exploiting the country's agricultural, mineral and forestry resources. This approach is sound, as economic diversification and the more efficient use of resources are essential for the continuous growth of the economy over the long run. 22. In implementing its education sector development strategy, the Government is being assisted by several external agencies. The Bank Group, which is the largest source of external assistance, has financed two education projects (Annex II, page 5) aimed at improving secondary education and educa- tional planning and management, and at redressing geographical inequities. The First Education Project, signed in May 1972, provides US$7.2 million to: (a) construct two rural secondary schools, extensions to a rural primary teacher training institute, and a new College of Agriculture and Forestry; (b) provide equipment for science education and technical teacher training; and (c) finance technical assistance and fellowships for project administra- tion and manpower and educational planning. At the early stages of project implementation, there were delays in the construction program due to lack of experience in project administration, shortages of certain building materials, and limited capacity of the local construction industry. The initial dif- ficulties have subsequently been overcome mainly by breaking down civil works contracts into smaller packages which local contractors could execute more easily. The education and university planning components have proceeded satisfactorily, and the project is expected to be completed with a six- month delay and with only a modest cost overrun, to be financed by the Govern- ment. The Second Education Project, signed in June 1976, aims mostly at improving education in rural areas and continuing the support for educational administration and planning initiated under the first project. It provides US$4.0 million to: (a) construct community schools in 45 villages; (b) expand a teacher training institute; (c) finance technical assistance to strengthen  - 8 - curriculum development, textbook production, and educational administration and planning; and (d) prepare for the proposed third education project. Experience gained by the PIU in implementing the first project has markedly improved performance under the second project; since loan effectiveness in July 1976, construction contracts have been awarded and project implementation is on schedule. The third project would include further support for improving secondary education, and would meet specific manpower needs in the small industry and forestry sectors. Together, these three projects provide an integrated approach to balanced growth of the education sector. PART IV: THE PROJECT Project Background 23. The project was identified by the Government and the Bank and prepared jointly by the Government, the Bank and UNESCO. It was appraised in August 1976, and the Appraisal Report entitled "Appraisal of a Third Education Project in Liberia", No. 1358a-LBR dated April 8, 1977 is being distributed separately to the Executive Directors. A loan and project summary is given in Annex III to this report. Negotiations for the proposed loan were held in Washington from March 7 to 9, 1977 with the Liberian delegation led by Mrs. Johnson-Sirleaf, Deputy Minister of Finance. Project Objectives 24. The proposed third education project has been timed and designed to take account of ongoing projects and complement and reinforce them in accordance with sectoral objectives. As with the two earlier projects, it would include measures to improve the quality of education and meet man- power requirements. The project aims to provide skilled manpower in two crucial areas of economic development -- the modern industrial and service sectors and forestry. The project would also provide for improving programs in science and technology in rural secondary schools. Project Description 25. The proposed project would comprise: (a) Strengthening the Industrial Training System. The Project would finance construction, furniture and equipment for an Agricultural and Industrial Training Board (AITB) and a Vocational Training Center (VTC) in Monrovia; 8 man-years of technical assistance and 23 man-years of fellowships to help establish the Board and the Center; and 10 man-years of fellowships, together with equip- ment and vehicles, to develop manpower planning capability. The AITB would play a vital role in overseeing the industrial training system on a day-to-day basis, monitoring training standards and policy and administering the public sector industrial training  - 9 - centers. Evidence satisfactory to the Bank that AITB has been established would be a condition of disbursement for the con- struction of buildings for the AITB and the VTC (paragraph 4 (b), Schedule 1 to draft Loan Agreement). The VTC would train appren- tices, upgrade skilled workers and offer pre-employment training in mechanical, electrical, automotive and building construction trades. The Government agreed during negotiations to take the necessary measures to recruit and train instructors for the VTC (Section 3.04 of draft Loan Agreement). The Manpower Planning Division of the Ministry of Planning and Economic Affairs would be equipped to undertake micro-level planning for the public and private sectors. (b) Strengthening Forestry Training. This would include construct- ing, furnishing and equipping a Forestry Training Institute at Bomi Hills for forest rangers and forest workers; 2 man-years of technical assistance; and 7 man-years of fellowships to help establish the Institute. The Institute would be managed by the Training and Research Board established under the Mano River Union between Liberia and Sierra Leone and would include representatives of public and private sector bodies concerned with forestry in both countries. About 20 percent of the Institute's capacity would be for Sierra Leone and 80 percent for Liberia. The Liberian Government agreed during negotiations to provide the Institute with all the funds required to meet its operating costs (Section 4.05 of draft Loan Agreement). The Liberian Government would make arrangements with the Sierra Leone Government and the private sector to recover their shares of the training costs. (c) Improving Secondary Education. This would include constructing, furnishing and equipping four Science and Technology Centers (STC) at rural secondary schools in four counties and providing vehicles for transport of children from outlying schools to two of the Cen- ters (Sanniquellie and Buchanan); 16 man-years of technical assist- tance to help establish the new science programs and 1 man-year to prepare a school map; 36 man-years of fellowships to produce admin- istrators of science, technical and secondary education and second- ary teacher trainers; and equipment and vehicles for related field and office work and for strengthening science and technology teach- ing programs and secondary teacher training. Pupils would be bused to Sanniquellie and Buchanan STCs from village schools within a 30-mile radius on a pilot basis in order to determine the effective- ness of busing as a method of providing science and technology instruction to pupils from small village secondary schools. During negotiations Government agreed it would: (a) monitor and record the results of this pilot scheme for evaluation purposes; (b) train science and technology teachers in accordance with a timetable  - 10 - acceptable to the Bank; and (c) provide new classrooms and related facilities required for the schools in Greenville by the end of calendar year 1978 and Sanniquellie by the end of calendar year 1979; these are not included in the project but will be attached to the Science and Technology Centers in these two towns which are included in the project (Section 4.03 of draft Loan Agreement). (d) Strengthening Educational Architecture. The project would provide office equipment, vehicles for field work, 2 man-years of technical assistance and 7 man-years of fellowships to strengthen a newly established Division of Educational Facilities in the Ministry of Education. The new Division is responsible for the design and supervision of all construction work under the Ministry. It would also carry out architectural supervisory and design work for the Project Implementation Unit under Bank Group assisted education projects. During negotiations Government agreed that it would: (a) employ technical as- sistance personnel acceptable to the Bank; (b) award fellowships for training programs satisfactory to the Bank, provide appropriate positions to absorb the trained personnel and require the recipients to serve at least 2 years in the positions for which they were trained (Section 3.03 of draft Loan Agreement); and (c) make adequate and timely budgetary allocations to ensure the availabi- lity of funds for the operation of the educational institutions included in the project (Section 4.04 of draft Loan Agreement). Project Cost and Financing 26. The total cost of the project is estimated at US$9.5 million, includ- ing taxes totalling US$1.0 million. About US$6.3 million, or 74 percent of the net of tax cost, would represent foreign expenditures and would be financed by the proposed Bank loan. The balance would be financed by the Government. At full development in 1983, the project would increase government recurrent expenditures by US$700,000, or about 2 percent of estimated budgetary expendi- tures in that year. The cost of technical assistance is estimated to average US$36,000 per man-year. A detailed breakdown of the costs and the proposed financing plan are given in Annex III. Project Implementation 27. The Project Implementation Unit (PIU), established within the Ministry of Education to implement the first two education projects, would be responsible for implementing the third project. It would liaise with staff from other ministries and departments of government concerned with the project, notably the Ministry of Labor, Youth and Sports and the NCVTET for the Vocational Training Center and the Agricultural and Industrial Train- ing Board, the Ministry of Planning and Economic Affairs for manpower plan- ning, and the Ministry of Agriculture and Forestry for forestry training. Each of these agencies has already nominated liaison staff.  - 11 - 28. To handle the additional workload of the third project, PIU would be strengthened by the appointment of a third Deputy Project Director starting in May 1977. To ensure that PIU would be adequately staffed, Government has agreed that the staff would include: (a) a Project Director; (b) three Deputy Project Directors; (c) a Project Accountant; and (d) a Procurement Specialist. The qualifications and experience of all of the above shall be satisfactory to the Bank (Section 3.01 (c) of draft Loan Agreement). Procurement and Disbursement 29. Civil works for the Vocational Training Center, the Agricultural and Industrial Training Board, the Forestry Training Institute, and the Science and Technology Centers valued at US$3.8 million, furniture valued at US$0.3 million, and equipment valued at US$1.4 million would be procured on the basis of international competitive bidding in accordance with the Bank's Guidelines for Procurement. Furniture, equipment, vehicles and other items which cannot be grouped in packages of at least US$50,000 equivalent each, or which are not suitable for international competitive bidding, would be procured either on the basis of quotations or through local competitive bidding in accordance with procedures acceptable to the Bank. The aggregate value of such items is estimated at about US$0.2 million. Local manufacturers of furniture and equipment would be allowed a preferential margin of 15 percent of the c.i.f. price of competing imports, or the total applicable customs duties and import taxes, whichever is lower. 30. Disbursements from the loan would cover; (a) 55 percent of total expenditures for civil works including professional fees; (b) 100 percent of foreign expenditures for direct imports and 65 percent of total expenditures for locally procured furniture and equipment; (c) 85 percent of total expen- ditures for technical assistance; and (d) 100 percent of foreign expenditures for fellowships. Project Benefits and Risks 31. The shortage of trained manpower at all levels of the country's economy is one of the more serious development constraints in Liberia. As a result, the country is heavily dependent on foreign technical assistance, especially at the professional and managerial levels; this constitutes a significant element in the costs of development projects. Understandably, the Government wishes to increase the number of trained workers and reduce its heavy dependance on expatriates through appropriate training programs and employment policies in both the public and private sectors. 32. The proposed project would support the country's manpower develop- ment efforts by providing assistance for: (a) industrial and vocational training; (b) forestry training; (c) manpower planning; and (d) science and technology education at the secondary school level. Together with the Bank Group's on-going education projects, it would also assist the Government in correcting the traditional geographical imbalance in the distribution of school facilities. The project does not present any unusual risks.  - 12 - PART V: LEGAL INSTRUMENTS AND AUTHORITY 33. The draft Loan Agreement between the Republic of Liberia and the Bank, the Report of the Committee provided for in Article III, Section 4 (iii) of the Articles of Agreement and the text of a draft Resolution approving the proposed loan are being distributed to the Executive Directors separately. 34. Special conditions of the project are listed in Section III of Annex IV of this Report. A condition of disbursement of funds for construc- tion of the buildings for the AITB and VTC would be that the Bank has been furnished with evidence satisfactory to the Bank that the AITB has been established. 35. I am satisfied that the proposed loan would comply with the Articles of Agreement of the Bank. PART VI - RECOMMENDATION 36. I recommend that the Executive Directors approve the proposed loan. Robert S. McNamara President Attachments April 21, 1977  ANNEX I a-g-erof 4 pageo TABLE 3A LIBERIA - SOCIAL INDICATORS DATA SHEET LAND AREA (THOL KM2I -~-------- - - - LIBERIA REFERENCE COUNTRIES (19701 TOTAL 111.4 MOST RECENT AGRIC. 6.2 1960 1970 ESTIMATE GHANA IVORY COAST JAMAICA** GNP PER CAPITA (USA) 180.0 290.0 410.0 340.0 340.0 770.0 POPULATION ANO VITAL STATISTICS _______________________________ POPULATION (MID-YR. MILLION) 1.0 1.3 1.5 8.6 5.4 1.9 POPULATION DENSITY PER SQUARE KM. 9.0 12.0 14.0 36.0 16.0 170.0 PER SO. KM. AGRICULTURAL LAND 160.0 211.0 2U2.0 6 4.0 32.0 3684.0 VITAL STATISTICS CRUDE BIRTH RATE PER THOUSAND 44.4 42.8 43.6 49.8 46.1 38.5 CRUDE DEATH RATE PER THOUSAND 27.9 23.5 20.7 24.4 23.3 8.6 INFANT MORTALITY RATE (/THOU) .. 137.3 159.2 156.0 .. 32.2 LIFE PXPECTANCY AT BIRTH tYRSI 36.5 41.0 43.5 41.5 41.0 67.8 GRCSS REPRODUCTION RATE .. 2.6 2.7 3.2 3.1 2.7 POPULATION GROWTH RATE (2I TOTAL 3.3* 3.3* 3.3* 2.6 3 1.4 /a UQBAN .. .. 8.6 /a 5.0 8.7 _ 6.2 URBAN POPULATION (S OF TOTALI .. 26.2 27.6/d 29.0 28.0 37.0 AGF STRUCTURE (PERCENTS 0 TO 14 YEARS 37.2/a 40.7 41.6 46.9 42.5 45.9 15 TO 64 YEARS 58.B7- 56.0 55.0 49.5 514. 50.4 65 YEARS AND OVER 4.o7a 3.3 3.4 3.6 2.7 3.7 AGE DEPENDENCY RATIO 0.7 0.8 0.8 1.0 0.8 1.1 ECONCMIC DEPENDENCY RATIO 1.0/ab 1.0/a .. 1.4 0.9 /c 1.7 FAMILY PLANNING ACCEPTORS ICUMULATIVE, THOU) .. .. .. 10.9 .. 49.8 LSERS 1S OF MARRIED WOMEN) .. .. .. 2.0 EMPLOYMENT TnTAL LABOR FORCE ITHOUSANDI 410.0 /a 580.0 .. 3300.0 2600.0 600.0/f LABOR FORCE IN AGRICULTURE (IS 81.0 7a 72.0 .. 54.0 / 82.0 33.0 UNEMPLOYED IS OF LABOR FORCE) .. 20.0/b .. 6.2 .. 14.0 INCCME DISTRIBUTION r OF PRIVATE INcnME REC*D BY- HIGHFST 5 OF HOUSEHOLOS .. 61.7/c .. HIGHEST 203 CF HOUSEHOLDS .. 72.6 ... LOWEST 20 OF HOUSEHOLDS .. 5.3 .... LOWEST 40S OF HOUSEHOLDS .. 10.9 ..7. DISTRIOUTION OF LAND OWNERSHIP ______________________________ S OWNED BY TOP 102 OF OWNERS .. .. .. r OWNED EY SMALLEST 102 OWNERS .. .. .. HEALTH AND NUTRITION POPULATION PER PHYSICIAN 12000.0/c 10450.0 .. 12950.0 A 15320.0 d 2630.0 POPULATION PFR NURSING PERSON -5;o.u7T 4140.0 *- 1070.0 79 2830.0 /d 1720.0/b POPULATICN PER HOSPITAL BED 730.0 530.0 *. 760.0 1150.0 a 240.0 PER CAPITA SUPPLY OF - CALORIES It OF REQUIREMENTS) 86.0 88.0 94.0/b 96.0 108.0 103.0 PPOTEIN (GRAMS PER DAYS 35.0 36.0 39.On 46.0 60.0 56 0 -OF WHICH ANIMAL AND PULSE .. 10.0/d .. 10.0/c 18.0/e 29.0/0 DEATH RATE (/THOU) AGES 1-4 29.0/a .. 21.0 .. .L .2 EDUCATION ADJUSTED ENROLLMENT RATIO PRIMARY SCHOOL 38.0 43.0 52.0 58.0 76 0 101.0 SECONDARY SCHOOL 2.0 12.0 15.0 a/ 9.0 11.0 24.0 YEARS OF SCHOOLING PROVIDED (FIRST AND SECOND LEVELS 12.0 12.0 12.0 15.0 13.0 12.0 VOCATIONAL ENROLLMENT IS OF SECONDARYI 12.0 5.0 4.0 E 23.0 7.0 9.0 ADULT LITERACY RATE (2I 9.0 /a 15.0 .. 25.0 20.0 86.0 L HOUSING PERSCNS PER ROOM (AVERAGES 1.7 /d .. .. OCCUPIED DWELLINGS WITHOUT PIPED WATER (IS .. .. .. 78.0/e ACCESS TO ELECTRICITY 1S OF ALL DWELLINGS) .. .. .. .. .. 27.0 RURAL DWELLINGS CONNECTED TO ELECTRICITY I%) .. .. .. CONSUMPTION RADIO RECEIVERS (PER THOU POPS 77.0 132.0 .. 78.0 }7.0 376.0 PASSENGER CARS IPER THOU POP) 1.0 11.0 9.0o 4 0 10 0 38.0 ELECTRICITY IKWH/YR PER CAP) 101.0 330.0 573-. 338.0 120.0 825.0 NEWSPRINT (KG/YR PER CAPS .. 0.1 0.1 0.4 0.2 4.3 sfe NOTES AND DEFINITIONS ON REVERSE  Page 2 of Ii pages Ijole- otherise noted, data for 1960 refer to any year between 1959 and 1961, for 1970 between 1968 and 1970, and for Mont Recent istimate betee.na 1971 nod 197';. e -b to lm p,aio, -nth rate In hither than rate of aet-orsi .onrean.. sn aaiah., been selected as an objectice rontey since I t. GNP per Capita is between tWo and three timno that of lberia; tto.enol atruotur depeoda hma1ly on the oingW -etor; both co-trie are enco..araing foreign ja-etes.ata; aod Liberia's employ .ent polioy obectiee is to reach the correct lend of macn apower traioiog. LIBRaIA 19~60 AIa y62; lb RaIo of populatio.n ade 15 and 65 and over no tonal labor force; Ic 1961,; Id 1956 house.holds, city of Moaroci oaiy. 1970 /A Ratio of populattoo uoder 151 and 65 and -ver to total labor force; /b Unem ployed and partially eaploynd; a. Paptla- tion, 1975 Banb Economic Report. Higha- ionsen owleulated as residual; incladen sopatriatsa; Id 1964-66. M00T RECENT RITIgATEI IA 1910-71; /b 1969-71 avrage; ac 1972; /d 1971. 2MRiA 1i70 /0 tecladiog uneeplayed; /b Regintered, oat all practicing; in the country; /0 1966-68. IVORY OAS011 1970 a Doe to tngain tin geouth rate in bIghor than the rate of natara1 iooreass.; /b 19165-70; ae Ratio of population acder 15 anod 65 enod over to total labor force; ad Govereent onily, innluding aidoives; Ia 16-66. .IARAICA Iyii Z. (be to emigration, the growh rate in lowe than the rate of catural increase; ab Persoanel in go-eranat services o-ly; ac 1961,-66; /d 1966; /I Inside only; If Data boned no official definltta which lnclodew those .lO1a;' to ecekb.ht not aoti-ely scebig nmployant_ Ri, Marco 2, 1977 DEFINlITtPN~ OF SOCIAL INDICATORS Load Area (then ha-I Popnu.ist pee -us'iaa persa - Popsiatico dicded by aaaber of posoticing Total -Total afceto area coprioiag Isad ...e an d inland waters. male and fonaiw gredeato or , "tesinad" ano etr sd-ess Aorio M-ca ce -cetio-o of agrioolt-ra are used teaporariiy or aunilacty peracuani with t-osinig oreoelne per-notiy for orapa, poatoca, marbet 6 bitchno gorde.. or to tie Pepiatian per hospitai bed - Population divded by owher of hoapitsi Redo faItw. -vailahie is publio sand prlc-te gen.eo -1and apeoilaifed hospital sad rehahfIitstin centear; -aiadoa noes iag ha-. and -taraLisboenta foe ii: pp; cap';p(79j -GNP poe topita ectistos on curant maket Prices, o osi,i sa-d pcevaatns cora. ,