Liberia At the Crossroads From Poverty to Prosperity Through Natural Capital

Liberia stands at a defining moment. Home to over 40% of the remaining Upper Guinean Forest and extraordinary biodiversity including 2,900 plant species, 150 mammals, and 600 bird species the country is a global ecological treasure (Conservation International, 2023).

Yet, Liberia remains among the world's poorest nations. 55.6% of its population lives in multidimensional poverty, with households experiencing more than half of the weighted deprivations in health, education, and living standards (UNDP, 2024).

This paradox of abundant natural wealth amid widespread human deprivation underscores Liberia's development dilemma: how to eradicate poverty while conserving forests and biodiversity to advance global climate goals.

Liberia's Human Development Index (HDI) ranks among the lowest globally, reflecting constraints in health, education, and income. Life expectancy is under 65 years, and the mean years of schooling remain below five (UNDP, 2024).

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Poverty is starkly uneven: urban poverty at 30%, rural poverty at 81%, and one million Liberians in extreme poverty (World Bank, 2024).

Women and youth bear the brunt 24.9% of women marry before 18, adolescent birth rates exceed 130 per 1,000, and youth unemployment remains high despite making up over 60% of the population.

Liberia's economy is fragile, heavily reliant on raw commodity exports iron ore, gold, and rubber leaving it vulnerable to global price shocks. Structural barriers compound this fragility: Infrastructure deficits poor roads and unreliable electricity inflate costs and hinder industrialization, limited fiscal space low domestic revenue and debt vulnerabilities restrict transformative public investment, governance gaps corruption and weak institutions erode investor confidence and slow reforms, and gender and youth exclusion women hold only 11% of parliamentary seats, and young people lack access to quality education and decent jobs.

Without bold reforms, Liberia risks remaining trapped in low-income status. Under a "business-as-usual" scenario, the World Bank warns Liberia will not achieve middle-income status by 2030.

Liberia's forests are not obstacles; they are economic lifelines. Conserving them aligns with global climate goals and opens pathways for climate finance.

The Country Climate and Development Report estimates that climate change could shrink Liberia's economy by 15% by 2050 if unchecked. Conversely, leveraging carbon markets and biodiversity finance could mobilize tens of millions annually, funding renewable energy, climate-resilient infrastructure, and sustainable agriculture.

But these opportunities require institutional readiness, a robust carbon framework and operational biodiversity financing mechanisms are urgent priorities.

To transition to lower-middle-income status, Liberia needs an integrated approach: Invest in Infrastructure Roads, energy systems, and ICT to reduce costs, connect markets, and enable industrialization, build human Capital, expand education, vocational training, and health systems, especially for women and youth, to turn demographic potential into economic strength, boost Private Sector Dynamism, Attract FDI, nurture SMEs, and promote green entrepreneurship to diversify beyond raw commodities, natural capital Monetize carbon credits, biodiversity offsets, and eco-tourism to transform forests into engines of inclusive growth, Strengthen Institutions accelerate governance reforms, enforce fiscal discipline, and combat corruption to build investor confidence and ensure transparent resource management.

Imagine a Liberia where communities earn from forest-friendly enterprises, women lead climate-smart agriculture, and youth drive green innovation.

Where carbon finance funds schools and clinics, and biodiversity becomes a driver of prosperity. This vision is achievable through partnerships among government, private sector, civil society, and global development actors.

Liberia's forests are the foundation of a new growth model one that reconciles poverty eradication with planetary stewardship.

The choice is clear: invest in nature, invest in people, and Liberia can move from the crossroads to the fast lane of sustainable progress.

UNDP is uniquely positioned to support this transformative journey bringing global expertise, innovative financing solutions, and technical assistance to accelerate reforms and investments.

Together, we can turn Liberia's vision of prosperity into reality, ensuring development that is rapid, resilient, and equitable.

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