Liberia Economy In Collapse

Jefferson G. Togba

The government must be ashamed of itself for the shortage of its local currency. Isn’t that an economic sabotage?  No economy can function well in the absence of Monetary supply whether physical cash or cashless system.

Only money obtains available goods and services as well as for debts settlement. Even in a cashless society you must have money to pay for services and purchases of goods.  The holder of accounts have options in a cashless economy.

The Central Bank of Liberia fails to supply money into the economy as one of its keys functions. In other words, we don’t know the total money in circulation and depositors’ money is been held due to liquidity problems. How shortage of currency occurred in the economy when we have a CBL?

I think the board of directors are not reviewing well neither the governing management team. What  is the Central Bank of Liberia regulating and Monitoring through commercial banks? Was the 16 billion printed and brought into the country physically circulated like 25 million mop exercise?

Liberia isn’t moneyless country where people are working free then government provide free good and services. When people worked they get pay in order to provide for themselves.

If government have citizens working without pay then its equally cuts off government rewards from citizens who should pay taxes to keep the economy functioning.

After all government services and goods aren’t freed. The people must survive. It’s unthinkable to be in cues for several hours just to realize YOU can’t withdraw  because no money. In some instances, you wait two to three days if not week. Yet no chance neither hope of getting your remittance.

The “Change for Hope” swings to Hopeless in  governance structure and dysfunctional system. Even during wars times civil servants were paid before Christmas if government didn’t pay employees several months in arrears.

 

Remember Zimbabwe ,when President Robert Gabriel Mugabe continuously authorized printing of more currency. In fact in bigger denominators. It didn’t help but worsened Zimbabwe economy. If the Central Bank of Liberia and Ministry of Finance and Development Planning don’t act swiftly then Liberia is the next example.

Zimbabwe is more sophisticated by economic size and activities as compared to Liberia. Yet the economy suffered. The same has crept into Liberia. Print more money no value but higher cost of living while inflation rate increases.

The no money in the banks is having deep and adverse effect on general economy. This has caused diplomatic alerts. By all accounts, the banking system is under performing because the supply of money is at its minimal.

For the most, demand for money increases well about the supply curve.  Why is this not major concern to the CB?

With these situations, banking institutions are finding it very difficult to perform because their liquidity is not available to pay clients as needed. This was the exact ways President Mugabe killed one of Africa’s richest economies several years back. Even now, Zimbabwe economy is still suffering.

Liberia’s economy has been halted. The people can’t easily receive remittances from abroad. Also they’re have no confidence in the already struggling banking sector. Liberia’s current state of economy is upsetting because the country had so much potential but not performing well.

Liberia have so much resources to turn things around with the right person in power. The “Right leader and commitment” could solve some of the challenges if not all. Stop the blames and do what your administration have promised. Accept your weaknesses and act.

The Congress for Democratic Change/Coalition for Democratic Change (CDC) won the Liberian people confidence to do better then previous regimes.

Are Liberians living in war times that financial institutions can’t render fully banking services to its customers.  Why is it harder now for banks to release depositors money and more interestingly remittances?

Unemployment soaring every day, leaving transactions to be conducted in United States dollars meaningly against the local currency.  The worst economy since 2003. The president and his cabinet members have incessantly repudiated malpractice.

Instead of taking responsibility for its economic misconduct. The President shamelessly pointing at the Unity Party regime of 12 years. Excuses are incompetence.

The Liberian people gave you power because your team promise betterment. Any performance on the contrary is questionable and demands real attention.

Rather than growing the economy its becoming paucity.

Does the government know that the economy is heading more wrongly? Liberia is leaving from an official economy to a more aggressively informal economic activity. With more cash in hands it’s harder to measure the economy activity.

Most transactions are outside the system thereby supporting the Black Market. When the black market becomes trusted then macroeconomics leaks. At this point,  the economy performance, behavior and decision making turn to be ineffective and unaccounted for.

What is distinct is that Liberia’s economy has absolutely disintegrated under president Weah administration. Things are really worsen campared to 1997 and 2003.

As a result, business people and entrepreneurs are raising prices with government knowledge. Infact, no price control. Like Zimbabwe, Liberia is heavily dependent on exports of raw materials and largely import every basis commodity.

The government needs to transform Hopeless into prosperity. It’s a laziness argument to the CDC-WEAH administration to think “too young” to perform well. CDC was a major opposition for twelve solid years, so why attribute failure to being early? Didn’t the current administration have plans before contesting and now governing administration.

As always mentioned, Liberians deserve better. Stop playing elections sprees. The economy function before and after elections. Look throughout the length of Liberia.

With all your economic benefits enjoyed it’s still hard for you travel upcountry during campaign and other countries official visit. Imagine what the voters endure to live life.  The economic hardship requires improvement.

Politicians are the worsen citizens in Liberia. They promised without plans, actions and commitment. The economy manifest beyond statements. Why is liberia’s economy in perpetual mess at the hands of political administrators?

This leadership ineptitude must change to safe the economy and state.

Written by: JEFFERSON G TOGBA

(Visited 154 times, 1 visits today)
About Cholo Brooks 14342 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.

Be the first to comment

Leave a Reply

Your email address will not be published.


*