Background
Liberia, the first independent African Republic (1847), played a crucial role in the continent’s decolonization process. Despite its historical significance, the country remains one of the world’s poorest, ranking 8th globally in poverty. This economic stagnation is largely due to systemic corruption, mismanagement of public resources, and weak governance structures.
By Dr. Clarence R. Pearson, Sr, contributing writer
With recent geopolitical shifts—such as the “Make America Great Again” policies under form U.S. President Donald Trump, which led to global aid reductions—Liberian policymakers and citizens are exploring sustainable solutions to transform the country’s economic trajectory.
Identified Problem
Liberia has suffered significant revenue losses and inefficiencies due to:
Leakages in revenue collection across multiple, often uncoordinated agencies, aasted aid, grants, and loans that fail to yield sustainable development, fragmented budgetary systems, where autonomous agencies operate with little transparency and accountability and weak fiscal discipline, allowing public spending inefficiencies to persist.
Call to Action
To address these challenges, this model proposes a comprehensive fiscal restructuring under the Liberia Rescue Revenue and Expenditure Model (LRREM), emphasizing:
Single-Source Electronic Revenue Collection – Establish a centralized revenue authority with a unified digital platform to track all public funds in real-time with no exception to any public entity.
One National Revenue Treasury Account – Mandate that all public revenues (taxes, aid, grants, loans, etc.) flow into a single treasury account to ensure accountability and transparency, and segregation can later be effected to satisfy other specialized accounts.
One National Spending Bill (Budget Reform) – Adopt a single, consolidated national budget to eliminate autonomous budgets that currently allow uncontrolled spending.
Automated Expenditure Tracking – Implement real-time expenditure monitoring systems to minimize mismanagement and corruption.
Public Financial Accountability Laws – Strengthen audit mechanisms, financial reporting, and penalties for non-compliance.
Expected Outcomes
Increased Revenue Efficiency – Reduction in financial leakages and enhanced revenue mobilization.
Improved Public Spending – Elimination of wasteful expenditures and better alignment with national development priorities. Greater Transparency & Accountability – Strengthened oversight mechanisms to combat corruption. Economic Growth & Development – Improved fiscal discipline leading to sustainable investments in infrastructure, education, and healthcare.
Next Steps
This proposal aims to initiate a national dialogue among the President and cabinet members of Liberia, policy makers and legislators and civil society organizations and citizens.
Given the controversial yet urgent nature of this proposal, a National Revenue Accounts Cash Flow Chart will be developed to illustrate how LRREM can optimize financial management for national growth.
It is time for Liberia to take decisive action to reclaim its economic potential.
