MONROVIA – Liberia has made improvements in the ensuring rule of law and gender in economy, according to the new Millennium Challenge Corporation (MCC) scorecard expected to be released on Monday.
The MCC Compacts are based on the principle that the U.S. assistance is more effective in countries that have adopted policies promoting an environment for economic growth and poverty reduction. Every year, MCC publishes scorecards for all candidate countries, including countries such as Liberia with already signed, ongoing compacts. The scorecard assesses performance in three policy categories: ruling justly, investing in people, and encouraging economic freedom.
The Chargée d’Affaires of the United States Embassy in Monrovia, Alyson Grunder, in a communication to President Weah obtained by FrontPageAfrica informed the President
In a November 6, 2020 communication from the Alyson Grunder, Chargée d’Affaires of the United States Embassy in Monrovia to President George Manneh Weah, informing the Liberian leader of the Liberia’s “improved standing on the scorecard and applaud the work of the government’s MCC Eligibility Team Steering Committee to strengthen the flow of data to the scorecard indicator institutions. We encourage your government to redouble its efforts to concretely address the policy areas the indicators measure and look forward to improvements being reflected in stronger performances by Liberia on future MCC scorecards.”
MCC partner countries are expected to maintain a compact eligibility throughout the life of the compact, including passing scorecard, one of the key requirements considered by the MCC in awarding second compacts. In so doing, sustained and consistent policy performance is critical given the inherent time lags in the third-party data MCC uses in the scorecard.
Improvements, But Still Lags
This year, Liberia came close to the attaining the pass mark by passing nine of the 20 indicators compared to passing only eight last year. Countries are required to pass at least 10 of the indicators.
Newly passed indicators include Gender in Economy, which improved from 50th percentile to the 81st percentile and Rule of Law which also improved from 50th percentile to 52nd percentile.
Liberia, however, failed the Immunization Rate indicator, which declined from the 54th percentile to the 35th percentile.
“We appreciate Liberia’s improved standing on the scorecard and applaud the work of the government’s MCC’s Eligibility Team Steering Committee to strengthen the flow of data to scorecard indicator institutions. We encourage your government to redouble its efforts to concretely address the policy areas the indicators measure and look forward to improvements being reflected in stronger performances by Liberia on future MCC scorecards.”
– Alyson Grunder, Chargée d’Affaires, a.i.
Previous Performance
Liberia for the first time since 2009 fell sharply on the annual assessment of the Millennium Challenge Corporation.
Liberia fell slightly below the borderline regarding corruption, while scoring low on civil liberties and political rights, scoring 38 percent on Fiscal Policy, 23.5 percent on Inflation, 40 percent on Regulatory Quality, 28 percent on Trade policy and 31 percent on Government’s effectiveness.
The country also scored 50 on rule of law, 50 percent on Gender in the economy, 35 percent on Land Rights and Access, 24 percent on Primary Education Expenditures, 21 percent on Natural Resources Protection, 17 percent on Girls Primary Education Completion Rate and 42 percent on child health.
The country also did not fare well on health expenditure, with a borderline score of 52 percent. Access to credit score was at 53 percent, Immunization Rates at 54 percent and an impressive 64 percent on business start-up.
The MCC scorecards are a key component in the MCC’s annual competitive selection process that determines which countries are eligible to develop compacts – grant investments that last 5-years. The scorecard indicators can also be used by businesses, investors, and the private sector to inform investment decisions and better understand the operating environment in a specific country.
In 2016, Liberia received a grant of US$257 million from the United States through the MCC to enhance its electricity and road projects. A total of 85% of Compact funds have been committed in contracts, while 73% of total compact budget has been disbursed. Total Compact about $256.7 million. The five-year compact is already into its halfway stage and intends to impact an estimated half a million Liberians before ending in 2021.
Some of the achievements of the MCC Compact in Liberia include the completion of the Mount Coffee Hydropower Project; increased reliability and access to electricity; a trained and skilled energy workforce and stronger management of the Liberia Electricity Corporation; completion of a five-kilometer raw water pipeline from the Mount Coffee Hydropower Project to White Plains; establishment of the Liberia Energy Regulatory Commission; and creation of systems to more effectively managed the maintenance of Liberia’s roads.
Cautioned in 2018
In June this year, Jonathan Nash, the Chief Operating officer of MCC visited Liberia, held several meetings with top government officials and stressed the need for the government to successfully implement its part of the current compact and at the same time focus on maintaining its grades on the scorecard.
Mr. Nash also emphasized that if Liberia must regain another compact it must first perform on the upcoming scorecard.
Said Nash while in Monrovia in June 2018: “To obtain a second compact, the board looks at the extent at which a country was able to deliver and have a high-quality implementation of the first compact. The board generally looks for improved performance on the scorecard over time as well. I’m here to engage with President Weah and his administration to review the progress that has been made to date and to take a look ahead at the challenges and opportunities that lie ahead for the completion of the particular compact.”