-Says 1 million Liberians live in extreme poverty
By: B. Leila Gbati
As Liberians continue to cry about the economy and hardship in the country, the World Bank has released the Liberia Poverty Assessment Report (PAR) revealing that roughly 1 million Liberians live in extreme poverty and 2.5 million in absolute poverty.
The Liberia Poverty Assessment Report (PAR) World Bank leverages a diverse array of data sources to gain insights into the complexity of poverty and equity.
The report aims to pinpoint both the obstacles to and opportunities for poverty reduction in Liberia. It offers comprehensive analyses that can serve as a baseline to monitor government policies and assess how well outcomes are aligned with development plans.
Recognizing that poverty is multifaceted, the report delves into both monetary and non-monetary dimensions of welfare and living conditions, examining factors such as educational attainment, school attendance, and access to essential services like water and electricity.
Speaking at the launch of the PA on Monday, March 18, 2024, in Monrovia, the World Bank Country Manager, Georgia Wallen said that the 2020 Liberia Poverty Assessment Report (PAR) finds that nearly 6 out of every 10 Liberians live in poverty based on the national poverty line emphasizing that in the context of multiple crises, the plight of the poor has worsened, and the number of people in poverty has increased.
Madam Wallen also stated that roughly 1,000,000 Liberians live in extreme poverty and 2.5 million in absolute poverty.
Madam Wallen stated that the 2020 Liberia Poverty Assessment comes at an important time for Liberia.
According to her, this is a moment of transition, in the very early days of the new Administration with six years left to deliver on Liberia’s Vision 2030 and the target date for the Sustainable Development Goals.
“As we look to crucial years ahead, the Poverty Assessment can be valuable input for the new National Development Strategy and the Bank’s new Country Partnership Framework,” she said.
She indicated that the findings of the PA are stark and sobering which they hope will be useful for driving intensified action to address the worsening situation of poverty facing millions of Liberians particularly the most vulnerable.
Madam Wallen highlighted that the World Bank and the Government of Liberia share a common ambition, rooted in the Bank’s mission to end extreme poverty and promote shared prosperity on a livable planet.
She proposed three reminders for the working group to consider as they deliberate on the report.
“As a backdrop to today’s discussion, I want to step back and add perspective. I’d like to propose three reminders for your reflection: first, remember Liberia’s strengths; second, remember that beyond the facts, figures, and statistics, there is a human face; third, remember that our ultimate purpose of knowledge for action.
She cautioned participants at the ceremony to consider the intense and urgent challenges of poverty in Liberia, they should remember Liberia’s strength and the richness of its heritage.
She reminded them that Liberia is resource-rich with regionally and globally significant natural endowments and it is a proud heritage as Africa’s first Republic.
The World Bank Country Manager stated that Liberia has provided an example and a beacon of hope for cherishing peace and democratic values, commanding the attention of the world despite the many challenges whether longstanding impacts of civil conflict, cascading impacts of multiple recent crises, emerging risks, and as well as climate change, Liberia shows potential to beat the odds.
Speaking further, she emphasized that the capacity to tackle and overcome the complex development challenges discussed in the Poverty Assessment will come from harnessing and leveraging Liberia’s strengths, and will demand managing Liberia’s resources well including agriculture, enhanced land administration, and investing in the people which is fundamental for Liberian now and in the future.
She noted that “it also means leveraging data and knowledge, including this report to guide well-informed policy action. Remember the human face. The report finds that nearly 6 out of every 10 Liberians live in poverty based on the national poverty line. And in the context of multiple crises, the plight of the poor has worsened, and the number of people in poverty has increased. Roughly, 1 million Liberians live in extreme poverty, and 2.5 million in absolute poverty. The large numbers can sometimes be hard to grasp. But behind the numbers are individuals”.
At the same time, she mentioned the Poverty Assessment shows that the face of poverty in Liberia is young as such it is more likely to be female, and much more likely to come from a rural area with the face of someone who has had little or no access to education, healthcare, and basic services like water and sanitation.
Madam Wallen believes that the Poverty Assessment is about translating knowledge into action and working towards a more resilient and inclusive recovery from the multiple shocks over the past decade will require addressing the many structural challenges facing Liberia as well as increased access to quality education is essential to reversing poverty and boosting income earning potential amongst others.
She said the World Bank is working with the government and all development partners to implement policies and projects for an inclusive and resilient recovery towards achieving the mission to end extreme poverty and promote shared prosperity on a livable planet.
She said the World Bank budget last year support of $US65 million aimed to help lay institutional and policy foundations in growth, supporting resilience-related sectors and promoting transparency and accountability in the public sector and the US$85 million Rural Economic Transformation Project (which included US$76 million from IDA and a US$9 million grant from the Liberia Reconstruction Trust Fund) is improving productivity and market access for smallholder farmers and agribusiness and supporting transformational road connectivity as well as the US$18 million Health Security Program, approved in December 2023, aims to boost regional collaboration and health system capacity to prevent detect and respond to health outbreaks and emergencies.
“We are working with the government on expanding cash transfers from Bomi, Maryland, Grand Cru, and River Gee to cover the entire country through the Social Protection Project. These initiatives together with ongoing support for education, social protection, and climate adaptation are part of the solution. As we reflect on all that is needed, let us remember Liberia’s strengths and the richness of its heritage. This is an essential foundation for moving forward. Let’s remember the human face behind all the numbers we’ll discuss. And let’s commit to proactive, well-informed action that makes a difference for the poor and the vulnerable,” she asserted.
For his part, World Bank Poverty Practice Manager Johan Mistiaen thanked the participants for joining the dissemination of the World Bank poverty assessment report for Liberia.
Mr. Mistiaen said that Poverty Assessments (PA) are one of the World Bank’s core diagnostics which the Bank’s Board of Directors requested be undertaken every five years in IDA countries to help inform and shape the Country Partnership Framework (CPF) in collaboration with their IDA client countries.
He stressed that poverty in Liberia remains a formidable challenge, with over half of the population still living below the poverty line as such understanding the underlying causes and potential pathways out of poverty is essential for making meaningful progress to improve living standards and livelihoods.
Mr. Mistiaen frowned that the lack of recently collected household living standards survey data presents a major obstacle to monitoring poverty incidence and informing policy.
He said the successful implementation of Liberia’s new population census last year is a great achievement but the most recent survey available to estimate monetary poverty was collected in 2016, almost 10 years ago as such currently poverty estimates are being forecasted based on macro-economic information, models, and assumptions and the lack of regularly collected survey data likewise makes it hard to understand which poverty reduction policies are working and which policies need to be reconsidered made them flying blind.
He recommended that a new benchmark household living standards survey be collected soonest.
Meanwhile, Mr. Mistiaen indicated that the World Bank recommends implementing an integrated household income and expenditure survey needed to estimate monetary poverty ideally at least every three years and not less than every five years.
“With a new survey under preparation by LISGIS, the Liberia PA should be updated as soon as the data become available. Designing, implementing, and analyzing a household income and expenditure survey is not a small feat. It’s a complex process requiring a variety of specialized skills including sampling, coding, fieldwork supervision, and data analysis, all of which need to be managed in a coordinated way. World Bank support for the next survey is available through the Regional Harmonizing and Improving Statistics in West Africa (HISWA) Project. With 30 million US$ in financing allocated for Liberia, the project supports Liberia’s Institute of Statistics and Geo-Information Services (LISGIS) to design and implement a variety of surveys and data collection and production programs and to build capacity and upgrade office infrastructure. There is thus financing and TA available to close these data gaps and opportunities to streamline more regular data collection programs to inform policy and monitor progress,” he said.
He added that the PA puts a particular focus on understanding the impact of shocks on poverty in Liberia and it documents what transpired between 2014 and 2016, while also acknowledging recent setbacks in poverty reduction, notably those resulting from the COVID-19 pandemic.
“Since 2019, many countries have experienced an uptick in poverty. Around the world, a multitude of shocks and the COVID-19 pandemic, armed conflict, and climate change are hitting the already-poor and economically insecure people hard, while also partly changing the profile of global poverty by creating millions of “new poor.” This triggered a renewed focus on the impact of shocks and which policies can help to build resilience and protect the poor and economically secure from poverty. Liberia can participate in the global effort to turn around the reversal of poverty reduction. There are challenges to overcome, yes, and the report we will launch today outlines some critical ones, but there are also many opportunities to seize in Liberia, and with the right policies, informed by data, progress can be made quickly to bolster economic growth and improve living standards,” he continued.
“Its timing could not be better, as the World Bank and Liberia embark on preparations for the next Country Partnership Framework (CPF) and extend support to the government in preparing the next Pro-Poor Agenda for Prosperity and Development (PAPD). I hope that this report will serve as a valuable core diagnostic to inform and guide these crucial planning processes,” Mr. Mistiaen said.
He used the occasion to express gratitude to the Liberia Institute of Statistics and Geo-Information Services (LISGIS) for availing the data underpinning the analysis presented in the report and for supporting the team in constructing the welfare aggregate and poverty numbers.
Mr. Mistiaen concluded by urging the participants to fully utilize the report, as it delves deeper into critical issues for Liberia, including the state of poverty, human capital, vulnerability to shocks, and importantly, identifies opportunities that can be seized on to make progress.
