US$179.4 Million Funding Gap Threatens Liberia’s Decentralization Agenda 

By Amos Harris

A newly commissioned study has revealed that Liberia’s decentralization program faces a significant financial crisis that could undermine county-level development and service delivery if urgent corrective measures are not taken. The report, launched in Monrovia by Naymote Partners for Democratic Development, warns that counties could face a cumulative funding shortfall of approximately US$179.4 million by 2029, threatening the government’s efforts to bring governance and development closer to citizens.

The findings, presented during the launch of a policy brief on decentralization and local governance, paint a troubling picture of the gap between the government’s decentralization commitments and the resources actually reaching local communities. The study assessed the implementation of Liberia’s decentralization framework over 13 months and focused on Bong, Grand Bassa, and Margibi counties.

According to the report, while decentralization remains one of the government’s flagship governance reforms, inadequate fiscal transfers, institutional weaknesses, and procurement bottlenecks continue to hinder meaningful progress. Researchers found that despite strong alignment between county development priorities and citizens’ needs, local authorities lack the financial resources and administrative capacity required to deliver promised services.

Speaking at the launch, Naymote Executive Director Eddie D. Jarwolo said the study was intended to evaluate whether decentralization reforms are producing tangible development outcomes in local communities. He noted that while significant policy frameworks have been adopted over the years, implementation remains a major challenge. Jarwolo stressed that the report should not be viewed as an attack on government institutions but rather as an evidence-based assessment designed to improve accountability and strengthen local governance. He urged policymakers and development partners to confront the findings honestly and take action before the situation worsens.

The report indicates that County Development Agendas currently envision annual allocations of roughly US$35 million, amounting to nearly US$175 million over five years. However, researchers found little evidence that funding levels are keeping pace with those commitments, raising concerns about the viability of ongoing and future county projects. One of the most alarming findings is the disparity between government promises and actual investments. While the decentralization framework has created expectations among citizens for improved services and infrastructure, many counties continue to struggle with deteriorating roads, inadequate healthcare facilities, and limited access to essential public services.

The study notes that since the passage of the Local Government Act and the implementation of decentralization reforms, structures such as County Councils and County Development Steering Committees have been established across the country. However, the existence of these structures has not automatically translated into improved development outcomes. Researchers found that government allocations through mechanisms such as the County Development Fund, Social Development Fund, and County Service Centers remain insufficient to meet the growing demands of local communities.

In Bong, Grand Bassa, and Margibi Counties alone, fiscal year 2025 allocations totaled approximately US$22.29 million, far below development requirements. By contrast, citizens in those same counties identified development priorities valued at approximately US$55.9 million, creating an immediate funding gap estimated at more than 85 percent. The report warns that unless this trend is reversed, county authorities will find it increasingly difficult to implement critical infrastructure projects and social programs.

The assessment also highlights weaknesses in procurement systems, revealing that smaller projects are often implemented more quickly because they require less technical preparation. Larger and more impactful projects, however, frequently experience delays due to funding constraints, poor planning, and bureaucratic inefficiencies.

Consultant Benedict Kolubah, who presented key findings of the study, explained that the research examined Liberia’s fiscal and institutional readiness to implement decentralization effectively. According to him, the findings suggest that decentralization remains more of an aspiration than a reality in many parts of the country. Kolubah noted that while citizens are increasingly aware of County Development Steering Committees, many committee members themselves lack a clear understanding of their responsibilities, weakening accountability mechanisms and reducing public participation in local decision-making processes.

The report further identifies weak coordination among local government actors, irregular meetings, low public awareness, and political interference as major obstacles to effective local governance. These challenges, researchers argue, have contributed to poor oversight and weakened citizen confidence in decentralization efforts.

County-level development performance varied significantly among the three counties studied. Bong County recorded the highest level of alignment between development projects and county priorities at 88.2 percent, followed by Margibi at 85.7 percent, while Grand Bassa recorded 72.2 percent. Despite these positive indicators, researchers caution that strong alignment alone cannot compensate for chronic underfunding. Without adequate resources, counties may continue to identify priorities but remain unable to implement them.

To address the growing crisis, the study recommends adopting a needs-based fiscal transfer model that allocates resources according to county development priorities. It also calls for stronger operational systems, improved procurement planning, enhanced technical capacity, and greater citizen participation in governance processes. Furthermore, the report urges the government to strengthen County Development Steering Committees and County Councils while improving financial management, project monitoring, and accountability mechanisms at the local level. These reforms, it argues, are necessary to ensure that decentralization delivers tangible benefits to citizens.

Acting on behalf of the Governance Commission, Acting Chairperson Dr. Alaric K. Tokpa praised the study and described it as an important contribution to Liberia’s democratic development. He said decentralization remains central to efforts aimed at promoting inclusive governance and improving service delivery throughout the country. Tokpa warned, however, that without decisive reforms and predictable fiscal transfers, decentralization could deepen inequalities rather than reduce them. He emphasized that stronger political commitment and effective implementation mechanisms are essential if county governments are to respond effectively to citizens’ needs.

Officials from the Ministry of Local Government and representatives of civil society organizations welcomed the report, describing it as an important tool for identifying weaknesses and improving government performance. They acknowledged that many of the report’s findings mirror concerns raised during previous assessments and policy discussions.

The report concludes that while Liberia has made important progress in establishing local governance structures, meaningful decentralization remains far from guaranteed. Unless the government secures sustainable financing, strengthens institutions, and prioritizes accountability, the projected US$179.4 million funding gap could become one of the greatest threats to county development and citizen-centered governance by 2029.

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