USAID LEAD Holds Nat’l Dialogue on Decentralization, Transparency, and Resource Mobilization

In an effort to accelerate decentralization, enhance fiscal transparency, and mobilize resources for sustainable development, the USAID Local Empowerment for Accountability and Decentralization (LEAD) Activity held a one-day national dialogue in collaboration with the Ministry of Finance and Development Planning (MFDP).

The event, which took place on Thursday, April 4, 2024, at the Ministerial Complex in Congo Town, brought together stakeholders from across the government, including lawmakers from both houses and civil society, to address critical issues surrounding Liberia's economic progress and governance.

Catherine Rodriguez, Charge ‘d’Affaires of the U.S. Embassy in Liberia, opened the dialogue by expressing gratitude to Finance Minister Boima Kamara for the partnership in hosting the event.

“Throughout today’s workshop, in a series of dialogues, we will be going into more detail about this five-year USAID program,” she said. “Our objective with this initiative is to partner with the Government of Liberia to generate increased resources, improve fiscal transparency, and support decentralization to ensure basic services reach Liberians in even the most remote corners of the country.”

She emphasized the importance of supporting Liberia in generating internal revenue and ensuring its effective utilization for national development.

Madam Rodriguez outlined the objectives of the USAID LEAD program, which seeks to empower Liberia to increase resources, enhance fiscal transparency, and promote decentralization for improved service delivery.

She highlighted the role of the Liberian government in driving these initiatives, emphasizing the need for collaboration and commitment.

During her opening speech, Rodriguez commended Liberia's progress in three key areas. Firstly, she praised the government's support for the Value Added Tax (VAT) bill, citing its potential to boost domestic revenue significantly.

Madam Rodriguez, however, maintained that the goal is that by 2027, with the value-added tax, the national budget will increase by over 40 percent to reach $1 billion US dollars. If reached, this would be an outstanding achievement.

“The increased revenue, she said, could be used for so many of Liberia’s development needs—to pay teachers and doctors, improve schools and hospitals, build roads, and so much else.

“We want the legislature to pass this bill and look forward to working with the Ministry of Finance and Development Planning and the Liberia Revenue Authority to move forward its implementation,” she urges.

Secondly, Madam Rodriguez welcomed the administration's commitment to conducting audits across government agencies to ensure accountability and transparency.

She said, “There must also be concrete action taken on audit findings and recommendations to address identified deficiencies and make corrections. Most importantly, when individuals are found to have committed fraud, waste, or abuse of public resources, they must be held accountable.” 

According to her, the U.S. government looks forward to engaging with the new administration to help improve fiscal transparency through citizen engagement and audit follow-up, but the government of Liberia must do its part by ensuring that there are serious consequences for corruption and mismanagement. The government of Liberia must demonstrate a culture of accountability. 

She noted that decentralization will help the government provide essential basic services at the local level, adding that "it will ensure that all citizens see tangible benefits from the taxes they pay, even in the most remote corners of the country, whether it be a new school for their children, a functioning health clinic in their community, or electricity in their village."

The U.S. Charge’s d'Affaires said that as partners, they recognized the governance challenges at the local level, from the operational struggles of county service centers, which include limited resources, little or no functional equipment, and low employee capacity, to the effectiveness of county councils that do not have adequate office space, a lack of support staff to implement their mandates, and unclear roles and responsibilities, adding that “we look forward to engaging with the Government of Liberia to overcome these challenges in a way that benefits all citizens.

“These are the ideas, objectives, and challenges we have all brought you here today to discuss. We have called this event a “national dialogue” because we do indeed want it to be an exchange of ideas and best practices.”

“We want this to be a partnership to solve Liberia’s problems.  We want to hear from all of you across government and civil society, as well as from our international partners who have gathered here today.

Lastly, she applauded President Boakai's dedication to advancing decentralization, which aims to bring essential services to all corners of the country.

George Akl, USAID LEAD Chief of Party, reiterated the importance of decentralization in promoting inclusive governance and efficient service delivery.

At the same time, he said decentralization will also require that accountability and transparency are ensured at both the local government and central government levels, requiring efforts to promote good governance practices.

“Domestic resource mobilization is not merely a financial endeavor; it is the cornerstone of economic empowerment and sustainable development. By bolstering the capacity to generate revenue internally, the government can reduce dependency on external aid and pave the path towards fiscal independence.

“While the road ahead may be arduous, it is not insurmountable. Liberia must address inefficiencies in revenue collection and plug leakages to maximize its fiscal potential. Simultaneously, there are opportunities to explore innovative strategies and unlock untapped revenue streams,” Mr. Akl said.

Mr. Akl vowed that the USAID LEAD Activity will work towards improving revenue generation capacities, optimizing tax systems, and enhancing public financial management, with the ultimate target of supporting Liberia in financing its own development priorities.

He emphasized the need for fiscal transparency to build trust and attract investment, while also stressing the significance of domestic resource mobilization for Liberia's economic independence.

The Minister of Internal Affairs, Francis Sakila Nyumalin, Sr., reaffirmed the government's commitment to decentralization as a catalyst for national development.

He expressed appreciation for USAID's support through the LEAD program and called for continued collaboration to achieve Liberia's development goals.

For her part, Deputy Finance Minister for Budget, Madam Tanneh Brunson, echoed Nyumalin's sentiments, highlighting the importance of fiscal transparency and accountability in building public trust.

She emphasized the government's dedication to improving governance and welcomed USAID's initiatives to enhance revenue mobilization and local governance.

Throughout the dialogue, participants engaged in discussions on domestic resource mobilization, value-added tax implementation, tax expenditure, budget simplification and public participation, fiscal reporting, local government act implementation, and fiscal decentralization, among others.