By Festus Poquie
President Joseph Boakai appears to disagree with a report from the Central Bank of Liberia that indicated a decline in prices. Boakai said in an Independence Day’s speech Saturday that many households continue to struggle with the burden of high living costs.
“While our economy is making steady progress, our domestic revenue remains limited, and many families continue to feel the weight of high prices,” he said.
“Transportation costs are too high, and the prices of flour, sugar, and other essential goods remain burdensome. Building materials are still expensive, making it hard for ordinary Liberians to construct homes and businesses.”
The President’s remarks stand in stark contrast to the Central Bank’s earlier assessment. On July 23, the bank’s Monetary Policy Committee announced that inflation had moderated to 11.1 percent in the second quarter of the year, down from 12.5 percent in the first quarter, attributing this decline mainly to falling food prices and reduced costs for administered and market prices.
In response to the discrepancies between reduced import costs and persisting high market prices, President Boakai announced the formation of a High-Level Presidential Ad Hoc Committee to investigate these issues.
This committee, headed by Vice President Jeremiah Koung, is tasked with analyzing the underlying causes of these disparities and recommending immediate solutions.
The establishment of this committee raises questions about the effectiveness of the economic management team, which is chaired by President Boakai and includes Vice President Koung as a member.
On August 1, 2024, Boakai reactivated this Economic Management Team to address ongoing economic uncertainties, coordinate fiscal and monetary policies, accelerate reforms, and bolster regulatory oversight.
The Economic Management Team (EMT) also focuses on improving the oversight functions of various government ministries and agencies.
It aims to serve as a think tank on economic matters, developing policies that tackle immediate economic challenges and enhance the implementation of the Public Financial Management (PFM) law, which is vital for ensuring transparency and accountability in line with the ARREST Agenda for Inclusive Growth, the presidency said nearly one year ago. The team comprises:
- Minister of Finance and Development Planning (Co-Chair)
- Commissioner General of the Liberia Revenue Authority (Member)
- Minister of Commerce and Industry (Member)
- Chairman of the National Investment Commission (Member)
- Economic Advisers to the President (Members)
In June 2024, President Boakai inaugurated a committee to ensure rice availability and price stability.
