President Boakai's announcement that Liberia is eligible for a Millennium Challenge Corporation (MCC) compact is a significant milestone. Still, it comes with important caveats that ordinary Liberians need to understand. Eligibility does not guarantee funding; instead, it marks the beginning of a rigorous process toward potentially receiving development assistance [1][4].
Being declared eligible means Liberia has demonstrated progress on the MCC's eligibility criteria, which assess governance, economic freedom, and citizen investments. This reflects improvements in the country's governance and development indicators[9]. Liberia passed at least 10 of the 20 indicators required for MCC compact eligibility, including the critical "hard hurdles" of corruption control and democratic rights[9].
The MCC Board of Directors must still formally select Liberia to begin developing a compact based on three key factors: policy performance, the opportunity to reduce poverty and generate economic growth, and the availability of MCC funds[4]. Liberia will work with the MCC to design a program addressing key development challenges if selected. This phase can take two to three years and involves stakeholder consultations, technical analyses, and feasibility studies[4][8].
Liberia must maintain or improve its performance on MCC indicators throughout the development process. A decline in governance, corruption, or economic indicators could jeopardize the compact[4]. The MCC Board reevaluates selected countries based on policy performance, commitment to sector policy reform, and previous compact success[4].
If successfully implemented, MCC projects can significantly improve infrastructure, healthcare, education, and economic opportunities for ordinary Liberians. For instance, the first MCC compact rehabilitated the Mount Coffee Hydropower Plant, which enhanced electricity access and helped reduce electricity costs from over $0.50 per kWh to $0.35 per kWh[5][6]. However, citizens should know that compact funding is not immediate and involves years of preparation, negotiation, and compliance checks[8].
Accountability is crucial throughout this process. Liberia's government must demonstrate transparency, anti-corruption measures, and continued commitment to reform. Citizens should demand accountability to ensure the funds are effectively used[6]. The Boakai administration has emphasized transparency and accountability, citing ongoing audits of ministries and agencies, efforts to recover stolen assets, and forming an anti-corruption task force[9].
It's important to note that this would be Liberia's second compact, and MCC has stricter standards for subsequent compacts[4]. Only a few countries are selected for a second compact, emphasizing the importance of governance and efficient use of the first compact's funds[4].
President Boakai's announcement encourages Liberia, signaling international recognition of its progress. However, the government and citizens must remain committed to maintaining the standards required by the MCC. Success in securing and implementing the compact could bring transformative change, but mismanagement or political instability could derail this opportunity[9]. The government must address flagged weaknesses, particularly in health, education, and governance reforms, to maximize the benefits of a potential MCC compact and ensure sustainable development for all Liberians[9].
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References
[1] https://csa.gov.lr/liberia-passes-mcc-fy-2024-government-promises-improvement-in-all-sectors/
[2] https://www.mcc.gov/resources/doc/report-selection-criteria-methodology-fy24/
[3] https://crsreports.congress.gov/product/pdf/RL/RL32427/90
[4] https://allafrica.com/stories/202411220216.html
[5] https://www.mcc.gov/blog/entry/blog-040714-liberia/
[6] https://liberianinvestigator.com/business-news/economy/liberia-advances-toward-500m-mcc-compact-with-key-reforms/
[7] https://liberianinvestigator.com/featured/liberia-passes-mcc-scorecard-but-struggles-in-health-and-education/
[8] https://www.mcc.gov/publications-sections/story-cdg-introduction/
[9] https://www.mcc.gov/news-and-events/release/release-012121-mcc-liberia-compact-closeout/
[10] https://www.mfdp.gov.lr/index.php/component/k2/item/250-liberia-gets-256-7m-mcc-grant
[11] https://frontpageafricaonline.com/news/liberia-not-eligible-for-new-mcc-compact/
[12] https://www.mcc.gov/where-we-work/program/liberia-compact/
[13] https://www.voanews.com/a/millenium-challenge-compact-to-help-liberia-recover-from-ebola/3037838.html[1] https://inquirernewspaper.com/liberia-might-get-mccs-grant-in-2024/
[2] https://csa.gov.lr/liberia-passes-mcc-fy-2024-government-promises-improvement-in-all-sectors/Liberia's MCC Eligibility, Promise of Progress, Not a Guarantee of Funds
[3] https://www.mfdp.gov.lr/index.php/media-center/press-release/liberia-to-receive-256-million-mcc-grantLiberia's MCC Eligibility, Promise of Progress, Not a Guarantee of Funds
[4] https://www.mcc.gov/publications-sections/story-cdg-introduction/
[5] https://www.mcc.gov/blog/entry/blog-072318-success-of-mount-coffee-hydropower-plant-helps-liberia/Liberia's MCC Eligibility, Promise of Progress, Not a Guarantee of Funds
[6] https://www.mcc.gov/news-and-events/feature/liberia-closeout/
[7] https://www.mcc.gov/who-we-select/mcc-effect/
[8] https://www.undp.org/liberia/news/three-key-elements-bringing-citizens-center-democratic-governanceLiberia's MCC Eligibility, Promise of Progress, Not a Guarantee of FundsLiberia's MCC Eligibility, Promise of Progress, Not a Guarantee of Funds
[9] https://liberianinvestigator.com/featured/liberia-passes-mcc-scorecard-but-struggles-in-health-and-education/
[10] https://www.mcc.gov/resources/doc/report-selection-criteria-methodology-fy24/
[11] https://www.mathematica.org/publications/evaluation-of-the-liberia-compacts-mt-coffee-hydropower-plant
[12] https://www.mcc.gov/news-and-events/release/release-012121-mcc-liberia-compact-closeout/
[13] https://eeas.eu.com/sites/default/files/civil-society_new.pdf
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