Developing Liberia’s Financial System

By: Lawrence Kennedy |

The need to develop Liberia’s financial system should be on the mind of every presidential candidate. Unfortunately, only a handful out of the dozens of presidential candidates appears to have the financial or economic perspicuity to offer a sound policy to develop the financial system.

HOW DO WE DEVELOP THE FINANCIAL SYSTEM?

There are six parts to a fully functional financial system, each of which will play a foundational role in Liberia’s economic model. Those parts are money, financial instruments, financial markets, financial institutions, government regulatory agencies and the Central Bank of Liberia (CBL).

We use the first part of the system, money, to pay for our purchases and to store the value or wealth we have accumulated. In Kenya, for example, hard currency or money has rapidly move to mobile phones. As a matter of fact, Kenya is leading the world in mobile money, particularly its use of M-Pesa.

In Liberia, an environment brimming with corruption, mobile money with its audit trail capabilities will be an immediate tactical solution to trace the illegal flow of money. All government purchases should be made using mobile money. The data from each transaction is immediately uploaded to the Ministry of Finance or an auditing agency for record keeping and to use in corruption cases.

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Source: Globe Afrique Media

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About Cholo Brooks 12197 Articles
Joel Cholo Brooks is a Liberian journalist who previously worked for several international news outlets including the BBC African Service. He is the CEO of the Global News Network which publishes two local weeklies, The Star and The GNN-Liberia Newspapers. He is a member of the Press Union Of Liberia (PUL) since 1986, and several other international organizations of journalists, and is currently contributing to the South Africa Broadcasting Corporation as Liberia Correspondent.