Security sector (SS) spending in Sierra Leone needs to be integrated into all aspects of the country’s public finance management (PFM) system. This report, authored by Peter Middlebrook and Sharon Miller, was commissioned by the United Kingdom (UK) Department for International Development (DFID). It charts the current level and structure of security-related expenditures and assesses their strategic coherence, consistency and fiscal sustainability. Without external support, the government of Sierra Leone lacks the fiscal resources to establish sustainable funding of its security sector.
Absence of security and law and order negatively impacts economic growth and delivery of public services. Unless a state is able to deliver services and enable the development of the private sector, a strong formal economy will never materialise.
The SL Government’s ability to deliver services in an affordable and sustainable manner is hampered by structural budget formulation and implementation weaknesses. When projected off-budget security spending is included, total SL security spending for 2006 represents 29% of the country’s budget. Unless government and donors get a handle on rising security costs, sustainability of both the sector and service delivery may be undermined.
The following are findings of the review:
- The SL macroeconomic and fiscal situation has improved greatly, but risks of remission remain high.
- In 2006, the SS employed 33% of total public sector employees, reflecting recent downsizing in defence staffing.
- PFM principles require that instituting a development approach in the SS is vital. The national security budget should be prepared against clear national security policy and strategies.
- Different SS budget entities do not collaborate sufficiently in budget formulation; large flows of off-budget finance hinder the establishment of a comprehensive and integrated budget.
- UK support of the SS provides a fiscal lifeline towards the creation of a sustainable enabling policy and strategy environment. The Office of National Security, supported by DFID, has made considerable efforts to align SS strategy to meet current and emerging security threats.
- The underlying trend is an increase in development spending for the entire sector towards meeting established security delivery benchmarks.
- Security spending is increasing, but as a declining function of the gross national product. Fiscal sustainability of the SS is a considerable issue for the UK Government as the largest single donor to the sector.
- Security spending is the highest single spending sector, recording an 18.1% of total on-budget spending between 2003-06.
The following are recommendations of the review:
The SL Government should:
- Integrate the SS into all aspects of its PFM system;
- Ensure that stakeholders understand the importance of reform measures that support an affordable security strategy; and
- Update its SS reform threat assessment, improve its SS information base and review fiscal implications of ongoing SS expansion and reforms.
DFID should:
- Assist SL in developing a national security policy and security strategy, enhance the capacity of oversight actors, and support measures to improve budget comprehensiveness and predictability; and
- Support establishment of baseline service delivery targets and indicators for justice and security systems.
Other donors should:
- Clarify availability of external resources for the SS, clearly delineating between off- and on-budget spending; and
- Consider that high levels of donor support risk making the SL SS unaffordable, pushing back options for early exit.
Author: Peter J Middlebrook | Sharon M Miller
Source: Middlebrook,P. & Miller,S., 2006, ‘Sierra Leone Security Sector Expenditure Review’, Prepared for the UK Department for International Development (UK-DFID) Sierra Leone Country Office, Middlebrook & Miller, London, UK
Size: 64 pages (887 KB)
