Liberia Pushes For MCC Compact Funding; Celebrates $15 Million Grant Signing

By Sidiki Trawally

The Government of President Ellen Johnson Sirleaf scored another major achievement in its ambitious drive to bring much needed development to the post-conflict nation.

Following the waiver of Liberia's external debt of $4.6 billion by the World Bank and the International Monetary Fund (IMF) after a successful HIPC (Heavily Indebted Poor Countries) completion point, the Liberian leader, on Tuesday, July 6th was joined by her cabinet and the visiting bi-partisan US Congressional delegation to celebrate yet another milestone with the historic signing of a $15 million dollar grant from the Millennium Challenge Corporation (MCC).

The signing ceremony was presided over by the Liberian leader while the Minister of Planning and Economic Affairs Amara Konneh, Millennium Challenge Corporation (MCC) Senior Advisor Cassandra Butts, and the US Agency for International Development (USAID) Mission Director Pamela White formalized the agreement at the Cecil Dennis auditorium at the Ministry of State in Monrovia.

The grant shows that Liberia is being recognized by the United States for its commitment to democracy, economic progress and development since recipient countries must meet certain progressive criteria to qualify for the program. The MCC's contribution will be funneled into projects that are already earmarked in the Poverty reduction Strategy or the Lift Liberia agenda.

The Grant will support efforts to improve trade policy and practices, specifically in harmonizing tariffs, engaging regional and global bodies, and strengthening the regulatory environment.  USAID will administer the Liberia threshold program and will be responsible for coordination, contracting, and financial management. MCC will maintain oversight of Liberia’s threshold program.

‘No Room for Complacency: U.S Ambassador Declares at $US15M Grant Signing

The United States Ambassador to Liberia, Linda Thomas-Greenfield said the Millennium Challenge Corporation (MCC) assistance to Liberia is due to the hard work from the government over the past five years. According to the outspoken American Ambassador, Liberia is now enjoying free press, political debate, open budgets and improving management of natural resources. She stressed that despite the government current efforts in putting citizens in school and the development process, more need to be done.

The Ambassador spoke Tuesday when a US$ 15M dollars grant was signed between the Liberian Government and the MCC for Threshold Program which is expected to last for three years. Ambassador Greenfield said the MCC Threshold Program should be handled by the government responsibly in all three areas, the land rights and access, girls’ primary education and trade policy.

“Ghana, Senegal and Mali have enjoyed this Threshold Program, Ghana coming as an example where U.S$ 500,000,000 where a lot were being done, and with such funds available to Liberia, a lot can be done in road constructions, health and even improve the lives of the citizens with some jobs creation,”  the Ambassador said.

She told the audience that “There will be no room for complacency” during the implementation of the funds, adding that many countries do not always complete the transition from Threshold to Compact status because they failed to control corruption, but she is confident that Liberia will pass that stage and reach to the compact status as expected.

For her part, the President Sirleaf said with the establishment of Girls Education Trust (GET), through the help of institutions from the United States and private individuals, more than 5,000 girls are on scholarships currently.

The Liberian Chief Executive disclosed there were rumors circulating that the Threshold program will not continue with the coming of President Barak Obama into office, She said those scary information came at the time the government was still working to meet MCC threshold eligibility. But with President Obama continuing the program, she extends thanks to him and the US Congress for allowing the program to stay alive.

She stressed all of the African nations have hoped over the years to have a trade policy instead of aid to put their natural  resources to work and sustain their own development process. She extended thanks to the US Congressional delegates and hoped that the grant will improve the development process of Liberia.

President Sirleaf said Liberians have demonstrated their commitment to creating opportunity in their country by developing a results-oriented program which reflects their priorities for poverty reduction and growth. Through this grant, MCC is proud to support Liberia’s efforts in implementing the three-year Threshold Program grant with Liberia.

“Madam President, you remain a beacon of optimism for Liberians and the model of progress for all of Africa,” declared MCC Senior Advisor Cassandra Butts.  She said that the current threshold program agreement embodies further proof of the friendship between people of Liberia and the United States and the valuable expertise of USAID, MCC’s constant focus on monitoring and evaluating for results, and the strong support from the U.S. congressional delegation.  

“The focus now must be on the program’s timely implementation and delivery of results to create long-term growth in Liberia,” noted MCC’s Executive Cassandra Butts, who hosted a press conference with Minister Konneh, following the signing event.

She added that the US Government, one of its most innovative models for the delivery of development assistance, the MCC invests in poor, but well-governed, countries. “Our partners share our commitment to good policies, to fighting corruption, to investing in their people and to broadening economic freedoms,” Madam Butts emphasized.

The Senior Advisor for MCC said Liberia and the United States of America share both history and hope for the future, relating to the 1820s when freed African-Americans and freed slaves from United States settled in Liberia. “Today, we remain partners on the number of fronts, from promoting democracy and good governance, to deepening security, to achieving sustainable development,” the Senior Advisor said.

Madam Butts said the three years threshold program will focus on the land rights and access, girls’ primary education and trade policy. Saying “The three areas of concentration are necessary since they represent key constraints to economic growth, identified by Liberians themselves and as part of their own national development.”

Madam Butts further said the United States Agency for Development (USAID), headed by Pamela White will bring valuable field presence and expertise and MCC will focus on results through rigorous, transparent monitoring and evaluation.

Meanwhile, there seems to be a converted passion for the Government, through the Ministry of Planning and Economic Affairs to lead another major drive to achieve MCC eligibility for the bigger swathe – the Compact Program. The Compact is a multi-year agreement between the Millennium Challenge Corporation and an eligible country to fund specific programs targeted at reducing poverty and stimulating economic growth.

These programs must be developed in consultation with a country's citizens, including women, non-governmental organizations, and the private sector; able to measure both economic growth and poverty reduction and such program must be implemented, managed and maintained by the country.

A country then drafts a Compact Proposal outlining the specifics of the programs to reduce poverty and stimulate economic growth. MCC works with the country to ensure the proposed programs are reasonable, measurable, and attainable.

In remarks, Minister Konneh highlighted the process through which the Liberian Government was able to reach the MCC Threshold agreement. “The MCC grant is hard to get, so it’s very important that we celebrate this achievement,” he told the audience.

Thrilled, the Liberian Minister who was lauded by President Sirleaf for his leadership in reaching the MCC’s agreement, declared, “The real work has just started.” He challenged the Government to ensure Liberia qualifies for the Millennium Challenge Compact program.

The MCC Threshold Program agreement with the Government of Liberia will invest in three areas: land rights and access, girls’ primary education, and trade policy.  These areas were identified by Liberians themselves as part of their national development strategy.