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First Story
Liberia Rising 2030: The Way to Socio-Economic and Political Emancipation
Introduction
The nation-state of Liberia was founded in 1821 by settlers from the United States of America who inhabited various colonies along the coastal line of the country between Cape Mount and Cape Palmas, and later founded the Commonwealth of Liberia which declared itself an independent and sovereign nation on July 26, 1847, becoming the first Negro Republic in sub-Sahara Africa.
For over three quarters of a century following independence, the Liberian economy greatly relied on trading with European merchant ships that were in search of grains, hot pepper, piassava, and palm kernels.
Prior to the signing of the Firestone Rubber Concession in 1926, Liberia’s legal tender was the British Pound Sterling. However, the United States dollar was introduced by Firestone between late 1920s and early 1930s, and its usage was popularized by the coming of Citibank Group which established the erstwhile Bank of Monrovia to expedite a US$5 million loan that Liberia had obtained from Harvey S. Firestone to carry out public infrastructural development and cater for the salaries of government officials and civil servants.
Meanwhile, during a visit to the United States by Liberia’s outgoing President Edwin Barclay and President-elect William V.S. Tubman at the latter part of 1943, President Tubman appealed to the US Government to send an exploratory mission to Liberia to determine the potential of the country’s natural resources. The US Government readily accepted the request and an exploratory mission was sent to Liberia, culminating in the discovery of diamond, gold, iron ore and other valuable minerals in the country.
Between 1944 when President Tubman was inaugurated as the 18th president of Liberia, and 1960, a number of European and American entrepreneurs invested in the exploration of iron ore, diamond, and gold. Like Harvey S. Firestone, Sr., others ventured in natural rubber cultivation while many went into the exploration of the forest - logging. Hence, within 15 years of Tubman’s administration and his promulgation of the “Open Door Policy”, Liberia’s GDP was second only to that of Japan, thereby making Liberia the fastest growing economy in the world.
Besides European and American concessionaires, the Liberian economy was dominated by the Asians, meanly Syrians and Lebanese and later the Indians from the Far East who took advantage of Tubman’s Open Door Policy and constituted the merchants, i.e. traders in the economy, and who made up the economic class to-date. In the face of such enormous economic growth spanning two to three decades, the country lagged behind in the corresponding rate of infrastructural and human resource development. In fact, the level of income for Liberians working in the agricultural, mining and domestic sectors was very low and in 1972, Tubman’s successor, President William R. Tolbert, was constrained to set a minimum wage of US$0.25 per hour for agriculture workers or US$2.00 per eight-hour day work.
The global economic recession of the 1970s adversely impacted Liberia to an extent that prices of essential commodities including the nation’s staple, rice, that had been stabled for well over two decades began to escalate without a corresponding increase in salaries and wages thereby sowing seed of rancor, enmity and bitterness between the government and workers in both the public and private sectors, a situation that led to the infamous April 14, 1979 Rice Riot, later used by a group of diehard progressives to call for the resignation of the Tolbert-led government on March 7, 1980, a situation which later culminated in the violent overthrow of the regime on April 12, 1980.
Notwithstanding, the over throw of President Tolbert by a military junta led by the late Master Sergeant Samuel K. Doe, the living condition of the masses continued to deteriorate and the people became very disenchanted owing to massive corruption, abuse of human rights, tribalism, nepotism, among other negative vices. This disturbing state of affairs led to the nefarious civil conflict that was ignited by the erstwhile National Patriotic Front of Liberia (NPFL) intended to address the wounds of ordinary citizens but later turned out to be a senseless affair.
However, after almost two decades of gratuitous destruction, the international community was successful in brokering peace in August 2003 which led to the formation of a transitional government that paved the way for a return to constitutional democracy in January 2006.
The victor in the Presidential elections of October 2005 is Madam Ellen Johnson Sirleaf, a Harvard-trained economist who held several prominent positions in government and at Briton Woods institutions i.e. the World Bank and the IMF. Mrs. Sirleaf dubbed “Liberia and Africa’s first female President”, without procrastination set to work immediately and by April 2008, the Government of Liberia launched an ambitious three-year development agenda known and styled the “Lift Liberia” or Poverty Reduction Strategy (PRS). The strategy is a set of priority interventions geared towards reducing poverty and achieving the Millennium Development Goals (MDGs).
Liberia’s PRS was developed through broad-based consultations with Liberians from every nook and corner of the country. As a prelude to the launch of the Lift Liberia strategy in 2007, Liberians from every village and town met at district consultations to develop a district development agenda (DDA) which later fed into a county development agenda (CDA).
The PRS consists of four pillars: Peace and Security, Economic Revitalization, Governance and Rule of Law and Infrastructure and Basic Services. It has and continues to serve as a short-term development agenda for Liberia (April 2008-June 2011).
Estimated at US$1.6 billion, the PRS is a medium-term development agenda encompassing the entire country. The implementation of the “Lift Liberia” or Poverty Reduction Strategy commenced immediately following its launch in April 2008 with the Government of Liberia committing US$500 million through the national budget over the three-year period: 2008-2011, while the country’s development partners consented to fund the financing gap of US$1.1 billion.
Achievements
Although the PRS is at its climax, there are remarkable achievements and resounding successes recorded over the three-year period. There is no doubt that as a result of the enormous achievements made under the Lift Liberia agenda, the living conditions of ordinary citizens are indeed beginning to show positive improvements.
“All developmental, governance, and social indicators are showing year-over-year improvements. These improvements are not mere accidents; they are results of a more robust implementation strategy led by the Government with the support of development partners, civil society and private actors. Among the successes scored so far Liberians are seeing the construction of over 50 miles of paved roads; rehabilitation of over 1,000 miles of primary and secondary laterite roads; construction of both concrete and bailey bridges and the rehabilitation of dozens of health facilities; the construction and rehabilitation of over 175 educational facilities including primary, secondary and colleges; the provision of safe drinking water has increased with about 50 percent of the population having access; 32% increase in tele-density; 24% in primary school enrollment; increase in foreign direct investment with more than 10 mining and forest concessions ratified as well as a host of other public investments and projects, ” Planning and Economic Minister Amara Konneh told a news conference in Monrovia.
Konneh: “The general economic condition has increasingly improved with a 4.6 percent increase in GDP; 27 percent reduction in the balance of trade; real inflation decreased from 17.5 percent to 7.4 percent; average bank lending dropped to 14.2 percent; national budget increased to by more than 300 percent between 2005 and 2009; 72 percent reduction in foreign debt from 4.7 billion to 1.3 billion as at March 2010; more than 50 percent of the Liberian population are considered food secured; agriculture sector grew by 4 percent; and prevalence of poor food consumption dropped by 7 percent.”
Indeed, owing to these encouraging achievements of the three-year Lift Liberia development agenda due to expire at the end of this month, the Government has envisioned a long-term economic growth and development agenda called “LIBERIA RISING 2030”. It is worth noting that considering Liberia’s historical experiences, it is at a crossroads where its citizens can choose to remain committed to their recovery and reconstruction endeavors thereby transitioning to a more stable and economically vibrant country or they can stray from that path, risking a relapse into conflict. With this in mind, it is critical for Liberia that long-term goals are set for its society and the future development towards lasting peace.
In an effort to set these long-term development plans, the Government of Liberia, through the Ministry of Planning and Economic Affairs (MPEA) and the Governance Commission (GC), has begun holding discussions about a long-term sustainable economic growth and development strategy for Liberia.
“With the vision for wealth creation, Liberia Rising 2030 is expected to succeed the current development strategy – Lift Liberia. Similar to Liberia’s PRS, Liberia Rising 2030 embraces a strategy of broad participation and inclusion, allowing the human resource capacity needed while forging a stronger sense of citizenship, national cohesion and responsive governance. The goal is to develop and commit to a vision and strategy for reaching middle income status by 2030,” Minister Konneh further indicated at a news conference at S.K. Doe Sports Complex at the close of a weeklong workshop on the implementation of Vision 2030.
National Platform
This Liberia RISING 2030, embracing a strategy of broad participation and inclusive growth, will allow Liberia to build the human resource capacity it needs while forging a stronger sense of citizenship, national cohesion and responsive governance. The vision will produce a roadmap for addressing the social, political and economic challenges that confront Liberia on its path toward middle income status. It will lay out a set of programs for building a reconciled and unified nation with citizens who have a strong sense of shared identity and community, a commitment to ethical governance, and a sense of partnership with Government in pursuit of national development goals. The vision will aim to build upon current reforms and it will contain programs for the consolidation of institutions of transparent, accountable, just and democratic governance,” noted Dr. Sawyer.
The visioning exercise belongs to the Liberian people. It will define agreed parameters for political, economic and social development within which the Government and people of Liberia will undertake development initiatives without regard for which party or individual is in power. The process and content of the vision must transcend partisanship, sectarian interests and regional divisions. Although implemented under the leadership of the Government of Liberia, it will only succeed if all Liberians take ownership of the exercise and elevate it as a national platform that is non-partisan and all-inclusive.
The long-term vision concept, which seeks to identify the most binding constraints and set a roadmap for a long-term plan that underpins growth and poverty alleviation in Liberia when the PRS ends in June 2011, will reflect a sense of common and shared destiny around which all Liberians can rally to build a prosperous and successful nation. It will follow a similar but more inclusive process that was used in the development of the current Lift Liberia's Poverty Reduction Strategy and the County Development Agendas.
Just and Equitable Distribution
By 2030, Liberia should be a just and honest society. There should be an equitable distribution of income, and there should be nobody living in poverty. A strong social safety net should support those who are disadvantaged. Every citizen should have access to quality housing and health services within a reasonable distance. All people should grow up in strong and stable families that provide support and retain the social values that distinguish Liberia from other nations.
Liberia in 2030 should be an educated, informed society where all citizens will have the choice of continued education, whether in academic fields or in vocational and technical subjects. In eighteen years' time, Liberia should be an open, democratic and accountable society. The desire of community-oriented and decentralized democracy should be on a sound foundation for citizens and those in positions of leadership to hold themselves accountable for their actions, and to those they represent. The role of traditional leaders should also remain strong.
Moral and ethical society
Liberia in eighteen years should be a moral, ethical, fully reconciled, and tolerant society. The standards of personal morality of all citizens and leaders will be of the highest quality. No citizen should be disadvantaged as a result of gender, age, religion, ethnic origin or political opinions. Overall, the people of Liberia desire a democratic country with a vibrant traditional culture and a sustainable economy. They deserve a prosperous society with sufficient food, shelter, clothing and security for its people; a society where every town and village has access to clean water, adequate and appropriate roads, transport, electricity and communications, noted Dr. Sawyer and Minister Konneh.
They indicated that Liberians desire increased productivity in all sectors with job opportunities for all. To deliver on this vision, they noted that the citizenry must be literate, healthy, skilled and participating in the economic, social and political life of the nation. “The country needs stable prices for goods and services with sound and sustainable management of natural resources”. Liberia must be a nation committed to the rule of law and to managing its finances and the economy efficiently and transparently. It must be a place where the government, private sector, civil society and community leaders are fully responsible and accountable to the people.
The following highlight the achievable projections of Liberia RISING 2030:
1) Improved standard of living
2) Long-term growth trajectory
3) Medium and long-term planning framework to guide public investment programs
4) Equitable distribution of income
a) No Liberian living in abject poverty by 2030
b) Strong social safety net for the disadvantaged
5) Middle income country by 2030
• Per capita GNI between US$2000 - 3000
• Average annual growth rate of 12% - 15%
On the prospect of economic growth in Liberia, Minister Konneh says there is a need for a national vision and long-term plan for growth and poverty alleviation in Liberia. He urges the collective effort of Liberians to make the visioning process achievable. "Together we can develop Liberia and create wealth for everybody. I want you to see yourself as part of the process."
Minister Konneh, whose Ministry is leading the process along with the Governance Commission headed by Dr. Amos Claudius Sawyer, believes the current environment of sustained peace, visionary leadership and political stability presents a unique opportunity for Liberia to transform from a low income to a middle income status by 2030.
He says the new vision would be developed through broad-based consultations with Liberians from every part of the country. Mr. Konneh wants Liberians from every village and town to have a say in the process to resuscitate a struggling economy so that the wealth, resources, and prosperity of the nation are spread equitably across the country.
Dr. Sawyer: “Genuine reconciliation among Liberians is the portal to Liberia's national visioning process.” He expressively notes that one of the major socio-political goals of national visioning is having a strong sense of patriotism, citizenship, unity and cohesion. "We should consolidate institutions of good governance, reduce disparities and marginalization and ensure equity through policies of growth with development and strengthen commitment to moral, ethical and accountable governance as obligation of government, private sector and citizens."
Dr. Sawyer further noted that in developing a new Liberian vision and mission, the people should transcend competing historical identities: "Americo-Liberian" or "Congo" versus "indigenous" or "native" and develop sense of common or shared identity.
To rigorously push the visioning process, Minister Konneh habitually leads a team of professionals from his Ministry and the Governance Commission every morning to the Ministry's "War Room" to brainstorm the crafting of the new long-term development agenda. He chairs unspecified hours of meetings on a daily basis with the goal of laying the framework for the visioning agenda.
Conclusion
Indeed, rapid changes are taking place in Liberia and the need to set a long-term goal for economic development can't be overemphasized. The core national values of Love of Liberty, equality, and justice for all are as valid today as when they were first enunciated, and will need to be reemphasized. With these values guiding us, Liberia needs to set those long-term goals for how it would like the society to be. Therefore, Liberians should embrace the path to becoming a middle income nation by 2030. To assure a smooth and irreversible journey down that path the Government, through the Ministry of Planning and Economic Affairs and the Governance Commission, should be encouraged to continue discussions and consultations with Liberians both at home and in the Diaspora on the need to implement Liberia RISING 2030 void of partisanship because the goal is a genuine desire for a long-term sustainable economic growth and development strategy that should transcend party politics.
It is necessary that following years of conflict, suffering, and the loss of many lives, Liberians should not dream of relapsing along their clumsy past, hence the need to remain faithful to the recovery and reconstruction agenda by transitioning to a longer-term agenda for lasting peace, stability and development by adopting the strategies enshrined in Liberia RISING 2030 as the national platform above all political and partisans platform.
Photos:
Minister Amara Konneh
Dr. Amos Sawyerr. Chair GC
Some projects (Eight pictures in all)
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Changing Economic Situation In Changing Liberia: Ngafuan’s Success Story
-An Analytical view
It is an elementary calculation that Liberia is indeed rising under the limelight of economic recovery among other considerations that are vital to national growth and development following lengthened years of self destruction that left behind poverty, social disintegration among other stinging vices.
There was time when the nation stood far remove from unremitting economic activities since all nerves that are vital to national growth and development were redundant by the established situation the nation was faced with.
In the absence of legitimate economic activities no nation can realize the dream of prosperity including material and human resource development.
Sustained and defined economic activities are practically the cream of any nation since they are often associated with human growth and development including social and economic peace, joy and happiness without which the essence of life is never realized in the truest sense.
The prevailing changing time and condition in the country including gains made thus far in economic revolution answers the dream and prayers of the Liberian people in the face of national search for peace and prosperity.
It appears unarguable that the light at the end of the tunnel which remains the desire and expectation of the Liberian people is not far away given the signs and measurable indications spelt out in the gradual growth in national economic activities.
Indeed, there is growth in economic programs including attracting investment opportunities, a monitored incoming and outgoing cash flow, and an established system whereby the national coffer is not left vulnerable to rampant thievery among other acts that are potentially destructive to the social and economic health of the nation.
There is a common confirmation in many quarters that the Ministry of Finance under the dynamic leadership of Mr. Augustine Kpehe Ngafuan, is in the vanguard of the national economic healing process following successfully leading the nation’s march to the completion point of the Heavily Indebted Poor Countries Initiatives (HIPC) in June 2010, accruing for Liberia total debt waiver, and a spirit of National Renewal.
The astute Finance Minister spearheaded the country’s march to the HIPC Completion Point in June 2010 when over US$4.6 billion in external debt was waived and Liberia’s right to borrow was restored. In September 2010, he led the Liberian team that successfully negotiated with the Paris Club creditors (USA, UK, France, Norway, Germany, Japan, Sweden) in Paris, France, etc) and obtained a 100% debt waiver from all members of the Paris Club.
In November 2010 Minister Ngafuan and cream of financial gurus representing the Liberian government successfully concluded negotiations with Hamsah & Wall Capital, two holdout creditors (“vulture funds”) that were actively attempting to seize Liberian assets over a US$43M debt obligation. Hamsah & Wall had sued Liberia and won in New York, London, and was attempting to get similar judgment in Hong Kong. With active negotiation on the part of the Minister, coupled with pressure from international debt relief NGO, Hamsah & Wall finally accepted Liberia’s offer of 3 cents on a dollar, an offer that it had rejected in 2009 when Liberia bought back over US1.2bn in commercial debt from its commercial creditors.
Besides, leading Liberia through debt waiver and cancellation, the Finance Minister expanded the ‘Direct Deposit Scheme’ to all Monrovia-based ministries and agencies and the National Legislature. Additionally, the Direct Deposit Scheme which he introduced in late 2008 has now been expanded to some eight or more leeward counties. Under the Scheme, government employees are no longer paid through checks but are paid directly through their private accounts at commercial banks. This gives the employees an additional opportunity of accessing loans from banks to build houses and for other productive ventures.
Modernization Endeavors
In a relentless efforts to put Liberia Finance and Revenue administration on par with internationally accepted standards, he has introduced a number of programs, including the adoption of International Public Sector Accounting Standards (IPSAS) and Chart of Accounts for government for the first time ever in Liberia’s history. This will lead to the publication for the first time ever in Liberian history of financial statements for the Government of Liberia as per international standard.
The Finance Ministry has also Adopted an Internal Audit Strategy that will professionalize the functions of internal auditors across government, ensuring that they are hired through a competitive process and cannot be fired by heads of ministries and agencies. Under the Strategy crafted by the Ministry of Finance and endorsed by the Cabinet last year, there will be a five-member Internal Audit Governance Board that will include the Minister of Finance, the Auditor General, the Director General of Civil Service, the Chairman of the Public Procurement and Concessions Commission (PPCC), and one individual to be mutually agreed by both the Minister of Finance and the Auditor General. There will be an Executive Secretariat reporting to the Governance Board. The Secretariat’s responsibility will be to hire auditors under a competitive process and, where there are complaints emanating from ministries and agencies about the performance of a particular auditor, recommend appropriate actions to the Board.
Minister Ngafuan introduced Automation in the Revenue Collection & Expenditure Processes including the installation of ASYCUDA software at the Freeport of Monrovia and the Roberts International Airport that has led to reduction in the time of clearing containers and other goods from these ports. ASYCUDA is expected to be installed to all major ports in the not too distant future.
An Integrated Tax Administration System (ITAS) that will ensure real-time production of tax payer information and increase efficiency in tax administration thereby reducing processing time that create avenue for unwholesome practices has also been introduced under the watchful eyes of minister Ngafuan and his illustrious deputies.
Minister Ngafuan Signed a contract for the supplier of the Integrated Financial Management Information System (IFMIS) that will automate the budget preparation and execution processes. IFMIS which is expected to go live by July 2011.
Other Positive Initiatives
With funding and support provided by USAID, the Ministry of Finance had dedicated new custom facilities at BO Waterside, Ganta, Yealla, and Toe Town. The facilities serve as a one-stop shop that also houses other GoL security operatives assigned at these ports.
Since he assumed the top post at the ministry of Finance, Mr. Ngafuan has ensured that civil servants salaries were paid on time and as a way of ensuring a joyous Christmas, ensured that civil servants get their pay well in advance of Christmas.
In order to harness the professional performance of the Ministry, the Ngafuan administration has inaugurated a graduate scholarship scheme for staff members of the both locally and internationally. Currently more than 9 Ministry of Finance staffers are in the United States and Britain pursuing graduate studies in various financial disciplines. On the local scene, 143 employees are undergoing graduate studies at various universities courtesy of the MOF sponsorship.
Other Major International Achievements
In May 2010 Minister Ngafuan was elected as Chair of a five-member constituency at the African Development Bank (ADB) that includes Liberia, Ghana, Sudan, Sierra Leone, and the Gambia.
Post HIPC Achivements
Minister Ngafuan led negotiations and signed on behalf of the Liberian government a US$40M dollar Agreement with the African Development Bank | 
