Cote d'Ivoire has witnessedunprecedented instability since 1999 and political tensionsculminated in the civil conflict in 2002; while the warseems over, reconciliation has not been easy. The conflictresulted in a massive economic and social impact, affectingthe entire sub-region. In July 2003, the respectivemilitaries had signed a formal declaration of the end ofwar. An amnesty law was passed, overcoming a major roadblockto the disarmament process. Furthermore, there is agreementon a number of elements of the demobilization anddisarmament process. Also, during April-August, despitedifficulties, the government of national reconciliation hasshown that various parties could work together to implementthe peace accord. The authorities would like to lay thefoundation for a speedy recovery when the peace process isfully consolidated.To set the stage for acceleratedrecovery, a key policy challenge in Cote d'Ivoire isimproving public expenditure management, transparency andcontrols.This report provides a preliminary and selectiveanalysis of key post-conflict public expenditure managementissues facing the new government.This report is primarilyan operational document, envisaged to advance the dialoguewith the authorities and help strengthen post-conflictpublic expenditure management and speed the delivery ofemergency assistance. It will soon be followed by acompanion volume with a more traditional analysis of thestructure and efficiency of public expenditures and thesocial impact.The report is organized around three mainchapters, as follows: Chapter 1 provides background to themain body of the report (chapters 2 and 3) and brieflyreviews the post-conflict situation, including the impact ofthe crisis, the governance problems (e.g., in thecocoa/coffee sector), and an outline of the report'slinks with the Interim Transitional Support Strategy (I-TSS)under preparation; Chapter 2 analyses salient publicexpenditure management (PEM) issues, inter alia, usingstandard HIPC assessment indicators; and Chapter 3 analysesinstitutional and operational issues in expenditure control systems.