Remarks by William V.S. Bull, Sr., Ambassador of the Republic of Liberia to the United States, to the Liberia forum sponsored by The Africa Society of the National Summit on Africa and Howard University's Ralph J. Bunche International Affairs Center.
Good afternoon, Ladies and Gentlemen:
I am pleased to join you at this Forum and wish to thank the organizers for inviting me to share my views on the progress in Liberia and the opportunity to learn from such distinguished colleagues, on issues of importance to Liberia's progress.
Democratic elections were held in Liberia and President Ellen Johnson Sirleaf was inaugurated as Africa's first female president on January 16, 2006. Although I bring a long list of accomplishments in Liberia, and much optimism about Liberia's progress, the Liberian recovery is not without its fragility. And if we are to continue the recovery and lock in the reforms, we will need sustained effort, more good leadership, continued partnerships, especially that of the United States, and -- of course – God's blessings.
Liberia's economic recovery is well on its way. But let us remember where we started from. Over the course of two decades of political instability and conflict, Liberia's GDP per capita experienced a fall of more than 90%. This may be the largest decline in the world since data on national incomes have been widely collected.
Real GDP growth is expected to have rebounded to 6.3% in 2010, up from its lower rate of 4.6 percent during 2009, the year of the global financial crisis, and consistent with rates of economic growth since President Sirleaf took office. This means that, since the election, per capita income in Liberia has risen by approximately one third. To regular Liberians, this means that they have returned to their farms and confidently planted a second or third variety of crop. It means they have begun to raise livestock like goats and chickens again. It means our market women have been able to bring back two containers of palm oil to sell in the local market, and not just one half. It means our government employees and our taxi drivers can now afford to put their children in school.
When the elected government took office in 2006, it inherited a budget of $80 million. In Liberia that translates into a mere $23 per person. Since then, the government has been able to increase revenue from a higher tax base, better revenue collection, and budget support from donors. The current fiscal year budget stands at $369 million. Each year thus far, the government has responsibly maintained a balanced budget.
Our infrastructure is gradually being rebuilt, from general revenues and with help from our partners. Only two-years into the implementation of our Poverty Reduction Strategy which began in March 2008, more than 1,260 miles of road have been built or rehabilitated; more than 175 schools have been constructed or renovated throughout the country and free primary education has been enforced; more than 50 health clinics and health centers have been constructed around the country and there is pipe borne water in Monrovia and its environs. Now 50% of the Liberian population has access to safe drinking water; up from 25% just two years ago. From zero power generation, 10 megawatts of electricity is now being provided with an additional 45 megawatts scheduled to be commissioned. A visit today to Monrovia is characterized by paved roads and street lights, whereas just a few years ago the city was dark and traffic on any major road was snarled due to potholes and puddles. Our hospitals and our schools are populated with citizens receiving care and education.
One of the biggest achievements on the revenue front of the last several years was achieving US $4.6 billion of debt relief through the Highly Indebted Poor Country (HIPC) process. We achieved 100% debt reduction from most of the multilateral lenders, 100% debt reduction from our bilateral lenders in the Paris Club, and 100% debt buyback (at three cents on the dollar) from our commercial creditors. This relief leaves us in a strong position to focus on investing for the future, not making reparations for the past.
Liberia has been able to attract the highest caliber of foreign investment. Our government has signed investment agreements with BHP Billiton, Arcelor Mittal, Severstal, Buchanan Renewable Energies, American-Liberia Mineral Company, Sime Darby, China Union, Chevron, and Anadarko. We have signed agreements with the two largest oil palm planters in the world, and renegotiated our Firestone agreement to better serve its workers in the country. The hotel sector, in particular the investment by American businessman, Robert Johnson, into a luxury hotel near Monrovia, is also seeing some $50 million in investments.
In total, more than $16 billion in Foreign Direct Investment (FDI) will result from the above deals being realized. The Government intends to use these investments as the catalyst for the growth of the Liberian middle-class, as the source of finance for our infrastructure and public services, and as a source for decent employment. We have worked from day one to make sure that foreign investment works to help all Liberians, and that it will not simply be a return to the Open Door policies of the past.
Fiscal management, debt relief, and attraction of FDI have been matched by conservative monetary policy that has kept our exchange rate stable and our inflation at single digits. Moreover, our legislature has passed a number of important acts that reform the business environment, provide for low and fair taxes, and ensure transparency in the public financial management system.
The executive and the legislature have also taken important strides to improve the governing institutions of the country. We have a General Auditing Commission, freedom of the press, an Anticorruption Commission, and a new Public Procurement and Concessions Commission. Liberia is the first country in Africa to become fully compliant with the Extractive Industries Transparency Initiative, and we are in the process of establishing a commercial court.
On the political front, I am happy to report to you that Liberia today is more stable. Liberians now see the ballot, and not the bullet, as the key to effecting political change. Unlike many countries in Africa, our top political parties have not been divided according to tribal or geographic lines. President Sirleaf's cabinet is made up of a broad coalition representing nearly all of Liberia's tribes and counties. Voter registration is now underway for the elections in October this year.
Under President Sirleaf's leadership, Liberia is now a respected member of the international community whose views are sought in regional and international fora.
Without a doubt, the Liberian people owe a debt of gratitude to the United Nations Mission in Liberia (UNMIL) for maintaining stability and security. The presence of this force helps to ensure that our politics are nonviolent and that disgruntled citizens do not resort to extralegal means of expressing themselves. We are fortunate that the last five years in Liberia have been characterized by only a few violent incidents. The presence of UN peacekeepers has had a stabilizing impact on peace and security.
This security is not just about avoiding war. It is about returning to normalcy. The rural areas, once scarred by conflict, are now producing bounties of crops. Monrovia is far from being perfectly safe, but it is much safer than many capital cities across the developing world today.
In addition, again with help from our partners including the United States, the new 2000-strong Armed Forces of Liberia is up and running. One tenth of our soldiers are women, all of them are high school graduates, all of our officers are college graduates, and each of our counties and ethnic groups is represented. A new culture of national service is being inculcated, and we are on our way to having our Armed Forces become a source of national pride, as they are training to participate in international peacekeeping operations.
Ladies and gentlemen, as I share with you today my pride in the accomplishments of the postwar government of Liberia under President Sirleaf's leadership, I will also share with you my concerns. While our recovery is vigorous, it remains fragile. While our reforms are bold, liberal, and in the interests of our population, they are not yet locked in. While our security and infrastructure investments are in the right direction, they remain dependent on the continued support of our partners. And while our own politics forges towards a new equilibrium, our neighbors in the sub region contemplate a different path that could threaten our own peace and stability.
Another concern is that the last assessment report submitted to the UN Security Council on UNMIL's mission in Liberia acknowledges that the security situation in Liberia is still fragile. The capacity of the reconstituted Armed Forces of Liberia, the National Police Force and the Immigration and Naturalization Service require strengthening since these entities are to eventually assume full responsibility for Liberia's security as UNMIL continues its drawdown of personnel that is expected to be accelerated after the October, 2011 elections.
The Liberian people, for the most part, share a consensus that our path of reconciliation, institution building, and economic recovery is the right one. The sentiment that we are doing the right thing is growing with each year as the dividends to peace and stability and sound macroeconomic management pay off.
I can confidently say that the priorities of the government match those of the people. That is because all of the growth and development policies of President Sirleaf's government are part of our national Poverty Reduction Strategy (PRS), a consensus document that was reached through extensive consultations across all of our counties. The Strategy referred to as "Lift Liberia" consist of four pillars: Pillar One: Consolidating Peace and Security; Pillar Two: Revitalizing the Economy; Pillar Three: Governance and Rule of Law; Pillar Four: Infrastructure and Basic Services.
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The PRS launched in April, 2008 was to be completed by June 2011 but has been extended to December 2011 to enable the completion of thirty vital infrastructural projects that will boost completion of the overall PRS from about 86% to 93%.
Another initiative, Vision 2030, which will go through the same rigorous process of consultations, will provide an 18-year development platform to accelerate Liberia's development into a middle income country.
One of our biggest challenges in implementation is the lag time between formulating a policy and its effects fully being experienced. We have to continue to work to manage expectations in this regard, since a policy must first be debated, written, formulated into law, applied and enforced, and only then will it begin to have its effects.
Overall, I believe that the combination of economic recovery, institution and infrastructure building, and political and physical security have been primarily responsible for getting our people to the point where they are best able to heal from the scourge of conflict. But we have also undertaken additional efforts in conflict resolution and nation-building over the last several years. The Truth and Reconciliation Commission has helped to identify some of the root causes of the Liberian conflict. It has also proposed measures such as the National Palava Hut programs and reparations as ways to promote reconciliation all of which have been endorsed by the Government. However, some of the recommendations have constitutional and legal implications requiring the consideration of the Ministry of Justice and Independent Human Rights Commission. Our Governance Commission is working to build a political consensus around the new Liberia, replacing our old narrative of settlements and conquests.
In conclusion, post-conflict recovery is an infinitely complicated task, and the consequences of getting it wrong are extraordinary. But the record of President Sirleaf's Government over the last five years is one that I and many Liberians are proud to stand by.
We have learned much from our past, and I hope that in today's session we can share the Liberian experience and draw lessons from it that may be of help to others. We are filled with hope because we know that Liberia's best days are ahead of her.
Thank you for your time.
