1. A PRESENTATION AT THE MEKONG INSTITUTE AT THE INTERNATIONAL TRAINING COURSE FOR INCOME GENERATION AND POVERTY REDUCTION FOR DEVELOPMENT BY LEE SONNY MASON COURSE PARTICIPANT – LIBERIA FEBUARY 21 – MARCH 19, 2010

2. ELLEN JOHNSON-SIRLEAF PRESIDENT OF THE REPUBLIC OF LIBERIA FIRST WOMAN TO BE ELECTED PRESIDENT OF AN AFRICAN COUNTRY

4. GENERAL INFORMATION OF LIBERIA IN BRIEF Located in West Africa - bordered by Cote D’Ivoire, Guinea, Sierra Leone and the Atlantic Ocean. Established by y freed American slaves in 1821 and declared independence in 1847. Landmass covers a total of 43,000 square miles Liberia’s and the population is 3.4 million people with an annual growth rate of 2.1 that should double the population in 33 years..

5. GENERAL INFORMATION OF LIBERIA IN BRIEF Liberia has a republican form of government, fashioned after that of the United States of America with three equal and coordinate branches of Government: Legislature, Judiciary and Executive. Liberia has a multiparty system by law; there are sixteen (16) ethnic tribes in the country and 15 political sub-divisions called counties

6. GENERAL INFORMATION OF LIBERIA IN BRIEF Liberia is a country in the period of recovery emerging from one of Africa’s most brutal civil wars that lasted from 1990 – 2003. 250,000 citizens killed and more than a million displaced internally & externally during 14 years of war All Infrastructure completely destroyed during 14 years of civil war.

7. GENERAL INFORMATION OF LIBERIA IN BRIEF Liberia is rich in minerals like diamond, iron ore, rubber, timber, cocoa and coffee, among others. It is reported to have up to 40% of West Africa’s rain forest. Has potential for oil – exploration ongoing. The GDP per capital is estimated at approximately $ 190.00 and Liberia is one of poorest countries in the world External debt of more than 4 billion dollars by 2006

8. THE POVERTY CONTEXT 63.8 percent of Liberians live below the poverty line. Life expectancy is 58 years. 1.7 % HIV prevalence rate. 1.7 million Liberians are living in poverty. Of these, about 1.3 million people are living in extreme poverty, equivalent to 48 percent of the population Poverty is higher in rural areas (67.7 percent) than in urban areas (55 percent).

9. THE POVERTY CONTEXT L ow income and consumption. (80% Unemployment, illiteracy rate is 44%. Poor nutrition and household food security. Very high maternal and child mortality at138 for every 10,000 live births. (only 51 doctors in 2007) Very limited basic social and economic infrastructures, mainly roads, electricity, water, hospitals, clinics, schools, etc. 25% access to safe drinking water, 14% access to latrines (2006)

10. GOVERNMENT INTERVENTIONS RELATED TO INCOME GENERATION AND POVERTY REDUCTION FOR DEVELOPMENT Foreign Direct Investment & Revitalization of the productive sector to stimulate economic growth and create jobs Attracting concession to restart mining, rubber, forestry Short-term Emergency Employment. Cash-for-work (17,000 @ $3/day @ 40 days Food-for-work Social cash transfer schemes – Pilot phase – 3,000

11. GOVERNMENT INTERVENTIONS RELATED TO INCOME GENERATION AND POVERTY REDUCTION FOR DEVELOPMENT Increasing access to micro-credit through commercial lenders. (3 up to 8) in 4 years) In-kind grants to farmers - seeds and tools, small agro-processing plants Improving market infrastructure and access by rural farmers.

12. NGOs INTERVENTIONS RELATED TO INCOME GENERATION AND POVERTY REDUCTION FOR DEVELOPMENT NGO intervention in income generation is from two prospective: Income generation as the means to providing relief and tackling poverty. Income generation as a means to facilitate other core interventions for specific target groups. Eg: Interventions in trauma counseling, peace- building, skills training and reintegration of ex- combatants and returning refugees.

13. NGOs INTERVENTIONS RELATED TO INCOME GENERATION AND POVERTY REDUCTION FOR DEVELOPMENT Approaches: Soft loans with low interest rates. Ranging from $ 50.00 to $ 200.00, interest rate 10-15 % repayment period ( 6 – 12 months) Target low income women HH involved in commercial trading of local agriculture produce and manufactured good on local market. In-kind loans to support agriculture production for income generation purposes. Give to CBOs food processing plant for income generation and encourage food production. (rice mills, cassava mills) Cash-for-work & Food for work

14. BEST PRACTICES CONCERNING INCOME GENERATION AND POVERTY REDUCTION IMPLEMENTATIONS. Government Yet to be determined as an evaluation on the PRS NGOs The Umbrella Group (The Peer Pressure Approach) Beneficiaries Targeting (HIV Aids and the conditionality) Continuous Training & Monitoring of beneficiaries ( higher success level and repayment rate

15. PROBLEMS IN INCOME GENERATION AND POVERTY REDUCTION THE INTERVENTIONS IN LIBERIA Wrong perceptions due to limited sensitization Loan seen as free money Collaterals by the rural poor Phasing out of the NGO and the entry of commercial lenders will make access difficult Limited Banking Services Services still limited although expansion ongoing

16. PROBLEMS IN INCOME GENERATION AND POVERTY REDUCTION THE INTERVENTIONS IN LIBERIA Exposure to both internal & external shocks No contingencies built in to mitigate unforeseen measures Project Cycle-based Interventions NGO project duration not long to help beneficiary consolidate gains

17. CHALLENGES IN INCOME GENERATION AND POVERTY REDUCTION THE INTERVENTIONS IN LIBERIA Effective Government Oversight and Regulation. limited data and readied access to information Lowering Overhead Costs (NGOs) the overhead cost per head per beneficiary remains high Measuring success in term of wealth creation emphasis is on rate of payback, not on savings and consumption as it relates to use of profits. Success is measure in term of rate of payback. Targeting the poorest of the poor

18. OPPORTUNITIES IN INCOME GENERATION AND POVERTY REDUCTION THE INTERVENTIONS IN LIBERIA ongoing progress in the rebuilding of the country’s infrastructure The expansion of banking services in the rural parts The expansion of cellular phone communication The entry specialized NGOs in the field of micro-financing

19. AFTER 15 YEARS OF CIVIL WAR, & 6 YEAFRS OF PEACE, LIBERIA IS BEGINNING AGAIN AND THERE IS LIGHT AT THE END OF THE TUNNEL – THANK YOU!!!