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Sierra Leone

A Fragile Country Tale: Restrictions, Trade Deficits, and Aid Dependence

Massimiliano Calì's picture

 Masaru Goto, World BankPart of the World Bank’s new vision is to step up its efforts to help fragile and conflict-afflicted states break the vicious cycle of poverty. But this is no easy task.
 
The destruction of productive assets and the restrictions on the capacity to produce are among the most severe economic impacts of conflicts and fragility. These effects explain why countries in conflict or emerging out of conflict typically have very large trade deficits. The productive sector is often particularly weak by international standards, so exports are low and domestic consumption has to rely on imports. Indeed, five of the ten countries with the largest trade deficit in the world (Timor-Leste, Liberia, the Palestinian territories, Kosovo and Haiti) are considered fragile by the World Bank and other regional development banks (figure 1).
 

Notes From the Field: Improving Sierra Leone's Ability to Trade

Julia Oliver's picture

About "Notes From the Field": With this occasional feature, we let World Bank professionals who are conducting interesting trade-related projects around the globe explain some of the challenges and triumphs of their day-to-day work. The views expressed here are personal and should not be attributed to the World Bank. All interviews have been edited for clarity.

Gozde Isik, Trade EconomistThe interview below was conducted with Gozde Isik, a Trade Economist in the Africa Region Poverty Reduction and Economic Management (PREM) network. She spoke with us about the Diagnostic Trade Integration Study (DTIS) Update for Sierra Leone and how these studies help Least Developed Countries (LDCs) prioritize and sequence trade-related interventions and integrate trade into poverty-reduction strategies. Gozde is part of the Africa Region's Trade Practice and co-author of “De-Fragmenting Africa: Deepening Regional Trade Integration in Goods and Services” and “Why Does Cargo Spend Weeks in Sub-Saharan African Ports?