Ethnicity is considered to be an integral part of African society and it shapes economy and political structure. In Africa, ethnicity provides security perception, common history and culture, common language for communication and common vision. Modern Liberia was found by free American slaves in 1847. There are many ethnic groups in Liberia such as Krahn, Kpelle, Bassa, Kru, Mandingo, Mano, Konneh, Gio and other smaller groups. The ethnic conflict in Liberia is deep rooted between Americo-Liberians and indigenous Liberians. The Indigenous Liberians, who had been denied all social, political and economic freedom and other civil rights in independent Liberia became unhappy with new political arrangements and wanted to ensure inclusive political and economic affairs of the country. The small groups of Americo-Liberians held power until 1989 when Charles Taylor led National Patriotic Front of Liberia to oust the repressive regime of President Samuel Doe. But the demise of Americo-Liberians regime failed to bring peace and stable democratic government.

Liberia has consolidated democracy through UN Mission in Liberia, decentralization of government, justice and security reform, local participation in management of natural resources and decision making, national reconciliation, diversification and recovery of economy, impartiality of judiciary, independent national election commission, smooth political transition, civil society, youth leadership, iconic star leadership, large number of women participation in elections. This paper examines instruments and mechanism for the restoration of peace and consolidation of democracy in post-civil war Liberia.