Wednesday, June 8, 2011

The Ellen Johnson Sirleaf’s Administration and my take: A deeper look.


There have been numerous calls from many quarters requesting a deeper look into the Ellen Johnson-Sirleaf’s administration. Therefore, it is equally important that we zoom in on the administration from all sides of the leadership equation. If is safe to say that this is arguably one of the best governments we have seen. This does not in any manner or fashion suggests that the government is a saint. While it is not, it has demonstrated the willpower to make the much needed changes we Liberians so yearn. It has also helped revive our lost image among the comity of nations. Today, as Liberians, we are proud to state our nationality –something we could not do for fear of been branded as hoodlums, thugs and cannibals using the collective guilt syndrome. It excites me to see the many transformational changes we continue to see by the day. Liberia, through a process of incremental gradualism, is getting there in piecemeal. Can government do more? A resounding YES!

Unfortunately, Liberia unlike many developed countries, do not have a solid revenue-generating base that can are tie mainly to income generated through taxes. Sad enough, only a minute portion of our population bears the tax burden. Many can argue that people lack skills and career opportunities in order to be able to generate taxable income. Quite frankly, this is a legit argument since it is the sole responsibility of national government to create jobs and more jobs either within the public sector or relax the rigidities within the private sector so as to attract more foreign direct investments (FDIs). Let us note, this relaxation serves as boost to building investors’ confidence. These FDIs are essential components to building a sustained economic base through job securities and higher wages.

With Liberia, being an economic in frailties, it becomes very difficult to apportion this revenue based on areas of need since every sector within our economy is a case of “Urgent care”. Take for instance, if government decides to focus more on education and leave health or roads network behind, she would be solving one major problem yet leaving scores of equally important areas undone. In short, national government must develop a multidimensional approach strategy, which tackles all of the problems concisely. The road projects, the establishment of several universities in the leeward counties, the rehabilitation and renovation of hospitals and clinics plus the construction of new ones, the increment in disposable income (civil servant) plus much more are all efforts in the right direction….but, but.. Can we have an overwhelming number of capital projects giving the fact that government operates on a cash based budget? I would argue that it is not feasible for government because the meager generated is what we have as spending money and a greater portion of what she accrues goes towards the operational side (logistics, salary, petroleum, equipments, etc). So capital projects become increasingly difficult for government to undertake. This is why the need for foreign partnership is pivotal. This partnership does not come handy, it has to do which benchmarks, milestones and deliverables that the receiving government must meet in order to gain donor confidence. This is, it must demonstrate sound account management, fiscal discipline, show responsibility and accountability-something that this current administration has been doing through the Structural Adjustment Program (SAP) and the Governance Economic Management Action Plan (GEMAP) and other programs.

On the issue of the SAP, I personally believe that there were serious lapses. The government did not evaluate the aftermath of the program. While it thought it was solving the problem of over-staffing, it was creating unemployment either knowingly or unknowingly. What government needed to do in the short-run was to create in-service training programs for those deemed ineffective and lacking basic skills set in order for them to have a career path that would make them more career mobile.

More besides, government should have focus on private sector jobs creation by giving potential investment firms tax holiday as attraction incentives. If this had happened, jobs creation in the private sector subsequently attracting more workers from government too since these investment firms would offer better incentives. The downsize exercise would have been automatic given this scenario. Because of government’s failure to make use of this economic model, a greater portion of the current unemployment numbers is link to this. However, there is a way to begin with the unemployment numbers. Firstly, we can use university students as a case study. How? We can introduce community service as part of their academic curriculum. University students and assigning to agencies corporations and concessions as interns, are paid stipned, and get tuition deferment. Repayment will amortized over a period once he/she starts actual work. Therefore, you see, you are providing income (stipend), creating job path (job creation) and providing education (academics) simultaneously.

Secondly, government should increase spending on small-scale community projects to provide employment for these with technical skills and by extension, unskilled laborers. A robust mass community rehab program will also address quick impact needs. Thirdly, provide small-scale loans for market women petit traders, entrepreneur and farmers alike, these loans over a stipulated period are paid. Criteria for loan qualification should be less rigid in the pilot phase. This is, for instance, we will give you a loan of US$500.00 through an application and verification process. We could suggest for petit traders, that in order for them to qualify, they should have been in business for over a specific period, let us say, 1-3 years. This way, it demonstrates the creditor’s payback potential. Down the road, we would increase the requirement base on the size of the loan.

Fourthly, this is not a government’s approach but rather from the angle of Diaspora Liberians. Lest we forget, we represent the middle class that is lacking in Liberia. We play a significant role in job creation through small business initiatives. For example, if 5,000 Diaspora Liberians created small businesses and employed 10 local Liberians each, the result will be 50,000 new jobs (5,000 x 10) and if we assume that the dependency ratio is 10 to 1(employed), it means through the multiplier effect that we have empowered 500,000 Liberians at home. This initiative, I believe will greatly impact the landscape but it takes the passion, the courage and a business driven attitude to engage in such ventures…We ought to be thinking entrepreneurial!

Lastly, government must show the willpower, the tenacity and audacity to combat corruption. I do agree that she is making strides but I strongly believe we can do better. We must institute internal control measures and tighten loopholes that continue to gut out state resources. We should encourage public vetting processes for public officials. That is, we submit names of potentials to the citizenry and generate feedback and those findings used as a source document for appointments. The recent recall of a number of appointees by the president is clear indications of an effective public vetting procedure. The court of “public opinion” is an integral part in the fight against corruption. Moreover, audit reports properly assessed and where evidence is overwhelm, dismiss and forward for prosecution. This is not attainable without the involvement of the Legislature and Judiciary. They too, like the Executive, has a pivotal role in the creation of a fast track corruption court and enact robust laws to combat this menace, corruption respectively.

I am however positive that Liberia is on the right trajectory towards sustained socio-economic political growth, national renewal and nation building and that we all as Liberians should serve as a cushion to national government in its quest to ensure that Liberia is a better place. If we do this, we will be building for ourselves and future generation a Liberia we all can be proud. IN UNION STRONG, SUCCESS IS SURE!

Your friend along the way, Stephen Johnson!

No comments: