Liberia: Sam Jackson Wants Economic Monitoring Committee

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The Inquirer (Monrovia)

9 October 2008
Posted to the web 10 October 2008

Mr. Sam Jackson, former Minister of State for Economic and Financial Affairs of the Republic of Liberia and Business Development Specialist is calling on the Liberian government to set up a special Economic Monitoring Committee composed of individuals from both the public and private sectors to devise creative means of minimizing the impact of the global financial meltdown on the country's fragile and struggling economy.

Mr. Jackson is appealing to Madam Ellen Johnson Sirleaf to call an extraordinary session of Liberia's national legislature to hold public hearings for experts, business organizations, and other stakeholders to proffer suggestions and legislative actions on measures to combat the global economic emergency.

Discussions out of these public hearings could lead to detailed policies and authority for the President to take actions necessary to protect the national interest. Mr. Jackson said these actions will provide adjunct support to the Government's Poverty Reduction Strategy (PRS).

Liberia's economic recovery is at stake. Donor funding in the form of Official Direct Assistance (ODA) from developed nations, such as grants, support to Non Governmental Organizations (NGO's) and budgetary support will be substantially reduced.

Support from multilateral agencies such as the World Bank, International Monetary Fund (IMF), African Development Bank (ADB), and the European Development Bank and others will be curtailed and highly selective.

Liberia's efforts to regain foreign credits will be difficult if not impossible under current circumstances. Liquidity in the banking sector will be greatly affected as inward remittance from relatives abroad, which have become a major source of foreign exchange, will be severely limited due to rising unemployment in the developed world, mainly the USA.

Prices for Liberia's primary exports such as rubber, coffee, cocoa and iron ore will plummet due to drastic reduction in demand for these products. In the case of iron ore, revitalization of this important industry could be obstructed in short to medium terms.

Benchmark cash prices of iron ore imported by China, the world's biggest buyer of the steelmaking materials, fell by 17 percent during the last week of September as steel mills cut production.

The financial meltdown that began on Wall Street is beginning to affect other world capital markets and is sure to have catastrophic consequences for developing economies.

Central bankers and finance ministers in Europe, Asia, and the Middle East are having emergency meetings and consultations to minimize the impact on their economies.

Mr. Jackson is urging the government and people of Liberia to take proactive measures as the global financial meltdown will be a precursor to a steep decline in worldwide economic activities.

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