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Government of Liberia aims to achieve middle income status by 2030 through broad participation and inclusive growth. The country's growth strategy is one of accelerating the exploitation of natural resources, while maintaining sound macro policies, improving the business environment and prudently allocating and and commodity-based financing resources in key infrastructure areas. An Inclusive Growth Diagnostics framework is applied, which points out to severe human capital gaps and the existence of a vicious circle that prevents both the emergence of potentially attractive new economic activities and the take off of SMEs. Such vicious circle arises from information and coordination externalities, which compound to the inefficient allocation of the country's relatively scarce financial resources for building up the human and physical capital necessary for investments and growth.