By Othello B. Garblah
Last week, President Joseph N. Boakai launched an ambitious five-year development plan worth over $8 billion, with 70% of this funding expected to come from donor assistance, while his government shoulders 30%.
This announcement has sparked a renewed debate about Liberia’s persistent dependency on foreign aid and whether the nation can truly achieve sustainable development in such a framework.
The ambitious plan, titled the ARREST Agenda for Inclusive Development (AAID), outlines a comprehensive blueprint for the country’s growth and transformation over the next five years.
Poverty amidst plenty
Liberia is a country blessed with an abundance of natural resources, including iron ore, gold, diamonds, and timber. Despite this wealth, it was ranked the 8th poorest country in the world in 2024, a stark contrast to its potential. This is based on its GDP per capita (PPP), which was estimated to be $1,882.432 in 2024. This paradox of poverty amidst plenty raises critical questions about the management of resources and the country’s economic strategies over the years.
A History of Dependency
Liberia has had a history of dependency on donor or bilateral funding for most of its major projects in key sectors, including but not limited to electricity, roads, and health.
The United States Government, considered Liberia’s traditional ally, has often led in terms of donor assistance. Since the country’s founding, Liberia has enjoyed strong diplomatic and economic ties with the U.S., which have translated into significant bilateral aid. However, despite these generous contributions, the country has struggled to convert foreign aid into genuine economic progress.
The Boakai Regime’s Development Plan-The ARREST Agenda for Inclusive Development (AAID)
President Boakai’s development plan is undoubtedly ambitious. It aims to transform Liberia’s infrastructure, healthcare, education, and economic sectors within five years. However, the heavy reliance on donor funding, which constitutes 70% of the US$8.34 billion budget, is a significant concern. This dependency on foreign aid raises questions about the sustainability and sovereignty of Liberia’s development efforts.
The Greed and Corruption Challenge
One of the primary obstacles to the success of any development plan in Liberia is the pervasive issue of greed and corruption. Corruption has been a major impediment to progress, with resources often misappropriated and developmental projects left incomplete. For the Boakai administration’s plan to be achievable, there must be a concerted effort to address these systemic issues. Transparency, accountability, and effective governance are crucial to ensuring that the funds allocated for development are used appropriately and effectively.
Economic Diversification and Self-Sufficiency
To break free from the dependency syndrome, Liberia must focus on diversifying its economy and utilizing its natural resources more effectively. By investing in sectors such as agriculture, manufacturing, and tourism, the country can create jobs, increase revenue, and reduce its reliance on foreign aid. Additionally, improving the investment climate and attracting private sector participation is essential for sustainable economic growth.
The Role of International Partners
While reducing dependency on foreign aid is important, the role of international partners cannot be entirely dismissed. Strategic partnerships and collaborations can provide the necessary support, expertise, and investment needed for development. However, these relationships should be structured in a way that promotes self-sufficiency and empowers Liberians to take charge of their own development.
Conclusion
Liberia stands at a crossroads. The ambitious development plan proposed by President Boakai has the potential to transform the nation, but its heavy reliance on donor funding and the persistent issues of greed and corruption pose significant challenges. For Liberia to achieve sustainable development and break free from its dependency syndrome, there must be a focus on economic diversification, effective resource management, and transparent governance. Only then can the country harness its rich natural resources and realize its full potential.
