The Inquirer (Monrovia)
Morrison O.G. Sayon
28 March 2008
With the incoming of the Unity Party government under the leadership of a Howard University-trained economist, Ellen Johnson-Sirleaf, many thought that all would have been well in terms of stabilizing the nation's economy but with two years gone now prices of basic commodities continue to soar on the Liberian market.
The hike in the prices of basic commodities on the Liberian market is creating mounting concern amongst ordinary Liberians many of whom lived beyond the poverty line of less than US1.00 per day. The situation has also claimed the attention of members of the National Legislature who said that the astronomical increase in the price of basic commodities on the market has reached a proportion of an emergency. At its regular session yesterday, some members of that august body said the situation must be treated as an emergency.
The lawmakers want an immediate action taken to remedy the situation. This according to them would require citing those who were entrusted with the authorities to stabilize the nation's economy following years of devastating civil conflict.
A report which, was read outlined certain factors that are responsible for the hike of basic commodities on the Liberian market. The report which was drawn from authorities of LPRC, the Ministry of Commerce and other sources attributed the situation to scarcity, hike in petroleum products that is imported from Ivory Coast, the break down of equipment of the provider, high price on the world market and artificial increase in the price among others.
On the increase in the price of rice, the report also attributed it to government's lack of control of prices on the world market, delay in discharging rice from the Freeport of Monrovia, bad business practices by unscrupulous individuals, among others.
Considering the followings, plenary of the lower House has mandated the House Standing Committee on Utility head by Grand Gedeh County Representative Zoe Pennue to investigate the hike in the price of basic commodities and submit its findings in two weeks.
The price of rice, the nation's staple diet has hit a milestone, the price of fuel and gasoline are astronomically high thus leading to the massive increase in transportation fares around the country.
A bag of butter rice is presently sold for US$28 to US$30, while a bag of the American Parboil rice is being sold for US$40 to US$43.00 on the Liberian market, something impoverished ordinary Liberian cannot afford due to the unemployment rate and government's new policy that is terms as rightsizing.
The price of a gallon of gasoline is being sold for US$365 to US$410, while a gallon of fuel is sold for almost the same price at the various filling stations. Out of Monrovia, the prices of gasoline and fuel have climbed to almost US$5.00 or more thus, restricting the movement of the poor massive.
The astronomical increase in the prices of these basic commodities has also caused double increment in transportation fares across the country. Commercial drivers are charging passengers the amount of L$60 to L$75.00 from Broad Street to Barnesville Estate while (in Taxi) while drivers of commercial buses are charging L$30 L$40.00 for the same destination.
From Broad Street to Congo Town, drivers are charging L$30 L$35, and from Broad Street to ELWA Junction is now L$40.to L$45.00, while from Broad Street to the University of Liberia is now L$10 instead of the usual L$5.00.
On the other hand, CEMENCO, the only cement producing in the country has increased the price of the commodity with a bag of cement presently stands at US$15.00 though the bags are half filled due to what many say is re-bagging of the cement that is said to be going on. The price of building materials are skyrocketing though the need the reconstruct war ravaged Liberia is a paramount concern to all citizens.
In addressing the situation recently, President Ellen Johnson-Sirleaf blamed the high price and cost of living to prices on the world market and corruption at some government institutions though the very government at one time declared corruption as public enemy. She argued that her government has lost control over the price of rice.
"The waver of the two dollar tariff on a bag of rice by the government has had no impact on the situation," a downhearted middle aged woman told this paper. In the midst of this situation, Commerce Ministry officials remained tip-lipped.
Worst of all, the Tipoteh Commission that was set up to identify the cause of the escalating cost of basic commodities has not commence its task but said it has submitted a budget of L$10.4 million amounting to US$170.000 to carry out its works.
The Tipoteh Commission said upon the approval of its modest budget it would commence work even though prices continue to escalate on the Liberian market.
With no sign of price control in the country, ordinary citizens are getting angry with the situation as this old-man remembered the late 1970 fracas. "It was this rice price that led to the April 14 unfortunate situation and this has caused other governments to lost power so, let this government come to itself and solve the rice or else."
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Do not blame this poor reporter who sees or meets Ellen by chance. Take for instance George Bush, upon his return from Liberia, told an audience that Ellen graduated from University of Pennsylvania.
Economics is multi-dimensional. Price inflation is caused by the interfacing between supply and demand. With the new found peace in Liberia and the over-expectation that comes with it, an upward demand shift has occured for many locally produced and imported goods and services. You read about all this new construction and the rapid return of Liberians from abroad all wanting to be part of the new Liberia. Most of the returnees are consumers, few are producers. This trend is placing pressures on existing supply. If demand is outstripping supply, we will begin to encounter a tendency toward demand-pull inflation. Policy-makers… [Read Full Text]
It is embarassing to read an article from a newspaper that is claiming to be one of the critical analyst of information in a nation where most of the day to day issues discussion is disseminated to the masses by print, is incapable to get its fact correct. The lack of quality control in the print media such as this article shows the sad state the Country is in education wise. President Sirleaf is a Harvard graduate and not Howard as incorrectly stated.