Monrovia – The three leading opposition parties in Liberia have proffered alternative solutions that could fix the economic woes the country is currently faced with, while at the same time criticizing President George Weah for failing to provide a serious detailed plan for the structural transformation of the Liberian economy in his recent address on the state of the economy.
Report by Lennart Dodoo, ldodoo@frontpageafricaonline.com
The collaborating opposition parties including the former ruling Unity Party (UP), Liberia Party (LP) and the Alternative National Congress (ANC) in a press conference held Friday, July 20 at the headquarters of the ANC, said it is alarming that Liberians now have to pay 25 percent extra for whatever they consume.
“The President told us that since he assumed office in January 2018, the Liberian Dollar has depreciated by 25 percent. He further explained that this depreciation in the value of the Liberian Dollar, which occurred under his watch, ‘has increased inflation by 4 percentage points to 21 percent from 17 percent back in February 2018,” the joint statement noted.
The statement was read by the political leader of the ANC, Mr. Alexander Cummings.
The opposition bloc underscored the need for serious policy responses that would stimulate economic growth and roll back inflation.
Acknowledging Pres. Weah’s plea with his citizens to be patient for the completion of a long-term development strategy, while some short-term fixes are being implemented, Cummings noted that it is troubling for a political party that contested election on three consecutive occasions, winning on the term, not to have an already prepared plan on how to govern and lead economic prosperity.
He, however, noted that given the immensity of the economic challenges the country is faced with, it would be prudent that the President’s long-term strategy is completed soon for robust public debate and implementation.
“We, therefore, look forward to engaging the President and his administration on their plan, whenever it is released, and offering our ideas and thoughts to make it more responsive to the challenges we face as a nation,” he said.
Alternative Economic Solutions
The opposition parties believe rather than looking at short-term fixes to the economy, it would be necessary to consider policy options that can produce immediate positive results while simultaneously addressing long-term structural impediments to growth and development.
The three parties called on the government to maintain fiscal discipline by living within its means and avoid unnecessary debts the country cannot afford.
“There are some indications that the sharp decline in the Liberian Dollar since the President came to office is a result of financial markets already taking into account the strain that servicing over $1 billion in new debt sought by the government will place on our meager national budget. We should thus look to smartly grow—and not borrow—ourselves out of the country’s current economic morass.”
Cummings further asserted on behalf of his cohorts that there’s the need to end the maintenance of relatively high tariffs regime and other taxes that stymie growth.
“Moreover, tariffs on essential imported commodities are among the most regressive taxes, adversely affecting the poor whose cause the President claims to champion. Smart tax policies, including targeted reductions in tariffs and other taxes, can stimulate growth and, in the process, add more revenues to the government’s coffers than the current regressive tax regime,” he said.
He noted that there’s no net benefit for the country by allowing on an individual or a few groups of individuals to import essential commodities. Granting monopoly right gives corridor to the importation of inferior goods and self-determined prices since there would be competition.
“Opening the market to more people with focus on Liberian business people, would result in lower prices and better product choices for consumers,” he said.
Other suggestions proffered by the three parties include implementing land reform, enhancing environment for export/import substitution by adopting cost-effective regulations and policies to increase local and foreign investment.
They also called for the creation of food safety inspection unit, establishment of industrial parks in coastal cities like Buchanan, Harper and Monrovia which are at an advantage with the presence of harbors and airport and improving the value chain for key agricultural products.
The opposition further underscored the need to implement reforms that would make it easy to move goods in and out of the ports.
Cummings, however, noted that implementing these suggestions would require the political will and technical and technical know-how.
“We therefore hope the government will quickly move to adopt and implement these proposals as we look forward to further engaging our counterparts in government on the way forward for the Liberian economy,” he said.
