Sierra Leone

Sierra Leone is an extremely poor African nation with tremendous inequality in income distribution. While it possesses substantial mineral, agricultural, and fishery resources, its economic and social infrastructure is not well developed, and serious social disorders continue to hamper economic development. About two-thirds of the working-age population engages in subsistence agriculture. Manufacturing consists mainly of the processing of raw materials and of light manufacturing for the domestic market. Plans to reopen bauxite and rutile mines shut down during an 11 year civil war have not been implemented due to lack of foreign investment. Alluvial diamond mining remains the major source of hard currency earnings. The fate of the economy depends upon the maintenance of domestic peace and the continued receipt of substantial aid from abroad, which is essential to offset the severe trade imbalance and supplement government revenues. International financial institutions contributed over $600 million in development aid and budgetary support in 2003.

The 1991 to 2002 civil war between the government and the Revolutionary United Front (RUF) resulted in tens of thousands of deaths and the displacement of more than 2 million people (about one-third of the population), many of who are now refugees in neighbouring countries. With the support of the UN peacekeeping force and contributions from the World Bank and international community, demobilization and disarmament of the RUF and Civil Defence Forces (CDF) combatants has been completed. National elections were held in May 2002 and the government continues to slowly re-establish its authority. However, the gradual withdrawal of most UN Mission in Sierra Leone (UNAMSIL) peacekeepers in 2004 and early 2005, deteriorating political and economic conditions in Guinea, and the tenuous security situation in neighbouring Liberia may present challenges to the continuation of Sierra Leone's stability.