A PRESENTATION AT THE MEKONG INSTITUTEAT THE INTERNATIONAL TRAINING COURSE FOR

INCOME GENERATION AND POVERTY REDUCTION FOR DEVELOPMENT

BY LEE SONNY MASON COURSE PARTICIPANT – LIBERIA

FEBUARY 21 – MARCH 19, 2010

ELLEN JOHNSON-SIRLEAFPRESIDENT OF THE REPUBLIC OF LIBERIAFIRST WOMAN TO BE ELECTED PRESIDENT OF AN AFRICAN COUNTRY

GENERAL INFORMATION OF LIBERIA IN BRIEFLocated in West Africa - bordered by Cote D’Ivoire,

Guinea, Sierra Leone and the Atlantic Ocean.

Established by y freed American slaves in 1821 and declared independence in 1847.

Landmass covers a total of 43,000 square miles Liberia’s

and the population is 3.4 million people with an annual growth rate of 2.1 that should double the population in 33 years.

.

GENERAL INFORMATION OF LIBERIA IN BRIEF

Liberia has a republican form of government, fashioned after that of the United States of America with three equal and coordinate branches of Government: Legislature, Judiciary and Executive.

Liberia has a multiparty system by law; there are sixteen (16) ethnic tribes in the country and 15 political sub-divisions called counties

GENERAL INFORMATION OF LIBERIA IN BRIEF

Liberia is a country in the period of recovery emerging from one of Africa’s most brutal civil wars that lasted from 1990 – 2003.

250,000 citizens killed and more than a million displaced internally & externally during 14 years of war

All Infrastructure completely destroyed during 14 years of civil war.

GENERAL INFORMATION OF LIBERIA IN BRIEF

Liberia is rich in minerals like diamond, iron ore, rubber, timber, cocoa and coffee, among others. It is reported to have up to 40% of West Africa’s rain forest. Has potential for oil – exploration ongoing.

The GDP per capital is estimated at approximately $ 190.00 and Liberia is one of poorest countries in the world

External debt of more than 4 billion dollars by 2006

THE POVERTY CONTEXT

63.8 percent of Liberians live below the poverty line. Life expectancy is 58 years. 1.7 % HIV prevalence rate.

1.7 million Liberians are living in poverty. Of these, about 1.3 million people are living in extreme poverty, equivalent to 48 percent of the population

Poverty is higher in rural areas (67.7 percent) than in urban areas (55 percent).

THE POVERTY CONTEXT

Low income and consumption. (80% Unemployment, illiteracy rate is 44%.

Poor nutrition and household food security.Very high maternal and child mortality at138 for

every 10,000 live births. (only 51 doctors in 2007)

Very limited basic social and economic infrastructures, mainly roads, electricity, water, hospitals, clinics, schools, etc.

25% access to safe drinking water, 14% access to latrines (2006)

GOVERNMENT INTERVENTIONS RELATED TO INCOME GENERATION AND POVERTY REDUCTION FOR

DEVELOPMENT

Foreign Direct Investment & Revitalization of the productive sector to stimulate economic growth and create jobs

Attracting concession to restart mining, rubber, forestry

Short-term Emergency Employment.Cash-for-work (17,000 @ $3/day @ 40 daysFood-for-workSocial cash transfer schemes – Pilot phase – 3,000

GOVERNMENT INTERVENTIONS RELATED TO INCOME GENERATION AND POVERTY REDUCTION FOR

DEVELOPMENT

Increasing access to micro-credit through commercial lenders. (3 up to 8) in 4 years)

In-kind grants to farmers - seeds and tools, small agro-processing plants

Improving market infrastructure and access by rural farmers.

NGOs INTERVENTIONS RELATED TO INCOME GENERATION AND POVERTY REDUCTION FOR

DEVELOPMENT

NGO intervention in income generation is from two prospective:

Income generation as the means to providing relief and tackling poverty.

Income generation as a means to facilitate other core interventions for specific target groups. Eg: Interventions in trauma counseling, peace-building, skills training and reintegration of ex-combatants and returning refugees.

NGOs INTERVENTIONS RELATED TO INCOME GENERATION AND POVERTY REDUCTION FOR

DEVELOPMENT

BEST PRACTICES CONCERNING INCOME GENERATION AND POVERTY REDUCTION

IMPLEMENTATIONS.

Government Yet to be determined as an evaluation on the PRS

NGOs The Umbrella Group (The Peer Pressure Approach)

Beneficiaries Targeting (HIV Aids and the conditionality)

Continuous Training & Monitoring of beneficiaries ( higher success level and repayment rate

PROBLEMS IN INCOME GENERATION AND POVERTY REDUCTION THE INTERVENTIONS IN LIBERIA

Wrong perceptions due to limited sensitization

Loan seen as free money

Collaterals by the rural poor

Phasing out of the NGO and the entry of commercial lenders will make access difficult

Limited Banking Services

Services still limited although expansion ongoing

PROBLEMS IN INCOME GENERATION AND POVERTY REDUCTION THE INTERVENTIONS IN LIBERIA

Exposure to both internal & external shocks

No contingencies built in to mitigate unforeseen measures

Project Cycle-based Interventions

NGO project duration not long to help beneficiary consolidate

gains

CHALLENGES IN INCOME GENERATION AND POVERTY REDUCTION THE INTERVENTIONS IN LIBERIA

Effective Government Oversight and Regulation.limited data and readied access to information

Lowering Overhead Costs (NGOs)the overhead cost per head per beneficiary

remains high

Measuring success in term of wealth creationemphasis is on rate of payback, not on savings and consumption as it relates to use of profits. Success is measure in term of rate of payback.

Targeting the poorest of the poor

OPPORTUNITIES IN INCOME GENERATION AND POVERTY REDUCTION THE INTERVENTIONS IN

LIBERIA

ongoing progress in the rebuilding of the country’s

infrastructure

The expansion of banking services in the rural parts

The expansion of cellular phone communication

The entry specialized NGOs in the field of micro-financing

AFTER 15 YEARS OF CIVIL WAR, & 6 YEAFRS OF PEACE, LIBERIA IS BEGINNING AGAIN AND THERE IS LIGHT AT THE END OF THE TUNNEL – THANK YOU!!!