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Hardship Soaring!

The Analyst (Monrovia)
NEWS
May 3, 2007
Posted to the web May 3, 2007

In the 1970s, Liberia's economy was regarded as one of the strongest in the
world. In fact, it was compared to that of Japan. But that was changed in 1989
when the first devastating war to ever hit a West African nation struck,
leaving the once booming economy ruined.
Tried as past administrations did, not much was achieved.
Now the situation seems insurmountable despite the programs and policies being
put into place by the present administration, pushing the population more and
more to the edge of socio-economic exasperation.
The sign is on the wall that hardship is soaring. The lingering question in the
wake of recent sanctions and concessionary breakthroughs is "Will the recently
approved Mittal Steel Agreement and the lifting of the ban on diamonds make any
difference?"
Life in the City of Monrovia is reportedly becoming unbearable, let alone to
talk about the rest of the country, observers have said.
According to them, some citizens are finding it extremely tetchy to make ends
meet on a daily basis and that there is general apprehension that the situation
will change for the better unless the national government takes appropriate,
proactive steps to remedy the situation.
Or unless government reexamined the program and make critical adjustments. In
their estimation, the standard of living for ordinary Liberians has been
declining since the administration of Charles Taylor and continued through the
transitional administration of Gyude Bryant to date.
During his last visit to Liberia, now embattled World Bank President Paul
Wolfolwitz did not miss on the falling standards of living in Liberia. He noted
that said Liberians were living on 30 cent per day, the worst ever in the
country's history.
Wolfowitz's statement may have raised the plights of ordinary Liberians to
world attention, but it did practically nothing, according to observers, to
alleviate the falling standards of Liberians.
With unemployment 85% and soaring and the US-to-Liberian-dollar rate ever
spiraling upward despite government's efforts, there seems no immediate end to
the hardship Liberians have to endure, said one analyst.
In a recent The Analyst opinion sampling most Liberians blamed the current
trend of living on unavailability of jobs and uncontrollable prices of basic
commodities and consumer goods on government's inability to find appropriate
remedy to the hardship market forces add to the frustration of unemployed
Liberians.
According to those who claimed the problem is due to the hike in prices of
consumable goods on the market, such as rice.
The prices of the 50kg bags of the various grades of rice on the Liberian
market vary, ranging from US$22 - $23 or more. This is to say nothing about
arbitrary price hiking by unscrupulous merchants who take advantage of
sometimes artificially created commodity scarcity and consumer choice to enrich
themselves.
There is information that the rice brand called "Butter Rice", which is
preferred by ordinary Liberians for its high nutritional value and low
metabolic rate, sells for up to US$40 or 2,400.
At the current U.S. exchange rate of L$60 to 1, the variation and artificial
hiking amounts to L$1,380 or more per 50 or 45kg bag of rice for the average
working family that earn US$30.00 per month, if one follows government's recent
wage rise.
This high cost of the nation's staple diet, added to rental, medical and other
bills, school fees, and other food items, the saying amongst Liberian workers
that "my take home pay can't take me home" becomes resounding and graphic of
the rising desperation.
Many blamed the Commerce Ministry, the agency of government responsible for
price regulation for the problems. According to them, the authorities of the
ministry are reticent on the issue of prices for reasons yet unexplained.
John Suku, a resident of the Freeport Community on Bushrod Island and rice
dealer, told our reporter that the ministry is aware of the problem but is not
putting its foot down to correct it.
Suku failed to say why the Ministry was acting lukewarmly on the issue of price
regulation, especially with the nation's staple food, rice, but noted, "It
might have been that the government lost focus in this direction and is
contemplating on other nonessential things."
He argued that the problem could be corrected provided those charged with the
responsibility act properly, timely, and in accordance with the need of the
Liberian people instead of acting theoretically to satisfy some external
expectations.
Suku is worried that the rising cost of living may exacerbate dishonesty within
the Liberian working and non-working classes thereby leading to the upsurge of
corruption in the private sector and government ministries and agencies.
If that happens, he said, it would be an antithesis to government's current
effort to wipe out the culture of corruption and the culture of impunity that
fuels it.
"I feel for the brothers and sisters who are not doing anything at all. How are
they making ends meet?" he wondered. His view is being shared by rice dealer,
Beatrice Bortu of Sayon Town who also put the problem at the feet of the
government.
Although she praised President Johnson-Sirleaf for the strides she is making to
give Liberia an international honor, she urged the government to pay attention
mostly to domestic issues because according to her, they have the propensity to
undercut her efforts and dampen the focus of her government.
"I'm one of those who buys rice from importers. I don't understand what is
obtaining because I, at times, purchase at fluctuating prices, to my
displeasure," she said, adding that the Ministry of Commerce needed to take
bold steps against those who are violating its price control regulations.
While many respondents blamed rising prices and the ever-fluctuating rate of
Liberian to US$ others say the taxes and tariffs government put on threshold
import commodities contributed largely to the rising cost of living.
They gave no figures, but indicated that the cost of storage, inspection, and
certification impacted negatively on the end prices consumers have to pay.
"Government needs tax dollar to function, but it also needs to hold down
inflation in order to get the support of the citizens and consumers in general.
So it has to cast a delicate balance between the two.
Between handsome revenue and amendable citizens," said economic commentator
Jeremiah S. Pouleh. According to Pouleh, the bases of some tariff and taxes
were found wanting and therefore the tax structure needed reexamination for
adjustment and appropriation if the rising cost of living is to be ameliorated.
One businessman who prayed to remain anonymous told this paper yesterday that
as long as the government imposed huge taxes on their businesses, they would
pass the extra charges to the consumers.
"That is the only option opened to us as businessmen and foreigners in this
country. And it is normal business practice," he said. He then added, "We are
not realizing profit from these sales. It is just the amount used to purchase
the goods that we realize at the end of the day.
You know we too have resident taxes to pay to government in addition to
salaries for our employees." Vendors and middle traders told our reporter also
that the too many taxes they were paying to government to import and clear
their goods was contributing to the high cause of living in the country.
According to them, unless the government can make some adjustments in taxes,
the situation may increase and life may become more uncomfortable than it is
now a day.
Meanwhile, on yesterday's edition of Sky FM's Phone-In show, "50-50", most
Liberians criticized the government for the level of hardship confronting the
country, claiming that even though it was virtually doing nothing to alleviate
the suffering of the people, it brags of making strides.
The talk show focused on whether there would b any difference in the country in
the wake of the approval of the Mittal Steel Agreement and the lifting of
sanctions on diamond by the United Nations Security Council.
Appalled by the level of dehumanizing conditions, the callers argued that the
situation may not improve despite the coming into effects of the two Mittal and
the lifting of the sanctions.
Some based their contention against the backdrop that no single investor has
ever expressed interest in the timber industry since the UN lifted the ban on
timbers several months ago.
Apart from Mittal Steel, which is already on the grounds, they feared the
apparent fencing-sitting would continue.
Some callers though believed the signing of the Mittal Agreement would have no
immediate impact on the current citizens' desperation, while others say
disagreed, insisting that with some 3000 Liberians expected to get immediate
employment, the situation is expected to change dramatically.
Presidential Press Secretary Cyrus Badio told EM correspondents Monday that the
agreement in itself will not automatically end the problems at hand, though he
did not rule out its employment benefits.


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