World Bank report indicates that lack of regularly collected survey data makes it hard to understand which poverty reduction policies are working and which policies need to be reconsidered
On Monday, the World Bank Group released a report showing that poverty in Liberia remains a formidable challenge, with over half of the population still living below the poverty line. And with six years left to fulfill Liberia's Vision 2030 and the Sustainable Development Goals, all eyes are on the Boakai administration -- for leadership more than anything else -- to ensure that Africa's oldest independent republic reaches its development targets.
In its "Liberia Poverty Assessment Report 2023: Pathways towards economic security", the World Bank provides a set of policy recommendations organized into four pillars. The first pillar looks at the growth performance over the past few years with its impact on poverty and presents characteristics of the country's poor. The second pillar reviews what occurred during COVID-19 and its implication for the population. The third pillar analyzes Liberia's human capital and the potential risks faced by climate change. The fourth and last pillar discusses the role of agriculture and challenges for further agricultural development.
According to the Bank, the report aims to assess the extent and causes of poverty in the country and recommend strategies to reduce poverty and promote shared prosperity on a livable planet.
Georgia Wallen, World Bank Liberia Country Manager, in remarks at the launch of the report, said the 2023 Liberia Poverty Assessment comes at an important time for the country -- a moment of transition marking the early days of the new Administration, with six years left for delivering on Liberia's Vision 2030 and the target date for the Sustainable Development Goals.
According to her, the Poverty Assessment report is looking to crucial years ahead and can be valuable input for the new National Development Strategy and the Bank's new Country Partnership Framework, she said.
Indeed, the launch of the report comes as Liberia transitions from government administration to another, and also from one development agenda to another -- the Pro Poor Agenda for Prosperity and Development (PAPD) to the Agriculture, Roads, Rule of Law, Education, Sanitation, and Tourism (ARREST) agenda, respectively.
Ms. Wallen further stated that the Bank's Poverty Assessment shows that the face of poverty in Liberia is a young face. "It is more likely to be a female. And it is much more likely to come from a rural area. It is the face of someone who has had little or no access to education, healthcare, and basic services like water and sanitation."
"The report finds that nearly six out of every 10 Liberians live in poverty based on the national poverty line. And in the context of multiple crises, the plight of the poor has worsened, and the number of people in poverty have increased. Roughly one million Liberians live in extreme poverty and 2.5 million in absolute poverty. The large numbers can sometimes be hard to grasp. But behind the numbers are individuals," she said.
"The World Bank and the Government of Liberia share a common ambition, rooted in the Bank's mission to end extreme poverty and promote shared prosperity on a livable planet," she explains.
She noted that while the findings of the Poverty Assessment are stark and sobering, the report will be useful for driving intensified action to address the worsening situation of poverty facing millions of Liberians -- particularly the most vulnerable.
"As we reflect on all that is needed, let us remember Liberia's strengths and the richness of its heritage. This is an essential foundation for moving forward. Let's remember the human face behind all the numbers we'll discuss. And let's commit to proactive, well-informed action that makes a difference for the poor and the vulnerable," Ms. Wallen added.
Also speaking, Deputy Finance Minister for Economic Management, Dehpue Y. Zuo stated that the ARREST agenda of President Boakai is optimistic to take Liberia to the Finish line of Sustainable Development Goals. (SDG) following the World Bank Liberia Poverty Assessment report.
Speaking on behalf of Finance Minister Boima S. Kamara, Zuo thanked the World Bank for the report, and said it will be a resource tool for the successful implementation of the government's ARREST program.
"One of the key points in international development is to make that poverty is reduced. Liberia, being a resource-based country in terms of natural resources, we still experience high level of poverty, therefore is a contradiction to the rest of world in terms of development," the Deputy Finance Minister said.
Zuo, who once served as a Deputy Minister at the Ministry of Foreign Affairs, further said that under the Boakai Administration's vision, in order to develop Liberia, there are key areas, including agriculture, in which Liberia has competitive advantage. "That is his area of expertise; he has decided to prioritize agriculture under the ARREST Agenda."
For his part, Johan Mistiaen, Practice Manager, World Bank Office in Liberia, disclosed that the Bank's Board of Directors requests poverty assessments be undertaken every five years in countries to help inform and shape the Country Partnership Framework (CPF).
"Poverty in Liberia remains a formidable challenge, with over half of the population still living below the poverty line. Understanding the underlying causes and potential pathways out of poverty are essential for making meaningful progress to improve living standards and livelihoods.
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"The lack of recently collected household living standards survey data presents a major obstacle to monitor poverty incidence and inform policy. Liberia successfully implemented a new population census last year--this is a great achievement--but the most recent survey available to estimate monetary poverty was collected in 2016, almost 10 years ago," Mistiaen said.
Therefore, currently, poverty estimates are being forecasted based on macro-economic information, models, and assumptions, he added.
He observed that the lack of regularly collected survey data likewise makes it hard to understand which poverty reduction policies are working and which policies need to be reconsidered, adding that, "We are flying blind."
Mistiaen suggested that one key recommendation is that a new benchmark household living standards survey be collected soonest.
He concluded by saying that the World Bank recommends implementing an integrated household income and expenditure survey, the kind of survey needed to estimate monetary poverty, ideally at least every three years and not less than every five years. With a new survey under preparation by LISGIS, the Liberia Poverty Assessment should be updated as soon as the data become available.
