By Vaye A. Lepolu
Monrovia — Actionaid Liberia, in collaboration with civil society organizations (CSOs) and key development stakeholders, is demanding urgent reforms to Liberia’s domestic resource mobilization strategy. The groups are calling for decisive government action to end the country’s dependence on harmful debt and austerity policies, which they say are driving poverty, inequality, and underdevelopment.
During a recent dialogue in Monrovia, participants highlighted the collapse of international aid and the rise of economic nationalism. Donor support has dwindled drastically — USAID funding alone has declined by over 90%, while other traditional partners, including the UK, have shifted their focus inward. This, they warned, is shrinking Liberia’s fiscal space and threatening critical public services.
The CSOs revealed that Liberia now spends more on debt servicing than on health and education combined. ActionAid’s 2024 report describes this as a direct result of an unjust global financial system that traps countries like Liberia in cycles of debt and inequality.
The crisis is compounded by environmental challenges. Liberia’s heavy debt obligations have intensified resource extraction, worsening environmental degradation and climate vulnerability. “Debt is both a driver and a consequence of the climate crisis, with frontline communities paying the highest price,” noted an ActionAid spokesperson.
Austerity measures have severely weakened Liberia’s health and education sectors. Women and girls, in particular, are bearing the burden as unpaid care work increases when public services fail.
Despite the extractive sector contributing over 50% of Liberia’s GDP, it generates only 16% of domestic revenue — the result of excessive tax breaks, weak enforcement, and opaque agreements.
CSOs are also raising alarm over illicit financial flows (IFFs), which they say are draining billions of dollars from Liberia each year — funds that could revitalize education, healthcare, and gender-responsive services.
ActionAid also highlighted findings from its report The Human Cost of Public Sector Cuts in Africa, documenting the hardships of frontline workers in Liberia and across the continent. Nurses, teachers, and other essential workers report stagnant wages, rising workloads, and worsening conditions, with many contemplating leaving their professions altogether.
One particularly tragic case recounted involved a young mother suffering postpartum hemorrhage. Her family, unable to provide fuel for an ambulance, watched helplessly until an ActionAid worker stepped in to transport her using a private vehicle.
ActionAid and its partners are demanding: Transparent and equitable public financing for health and education
Prosecution of perpetrators of IFFs, Gender-responsive budgeting to meet the needs of women and girls, Greater investment in frontline workers and infrastructure. They further urged international institutions to abandon austerity prescriptions and instead promote policies that strengthen public services and advance tax justice. “The fight against illicit financial flows is a fight for dignity and a future where public services work for all,” said one activist. “Liberia cannot afford further delay.”
