The announcement that Liberia has been approved for a second compact with the Millennium Challenge Corporation (MCC), with potential funding of up to $500 million, marks a milestone in the country’s development trajectory.
President Joseph Boakai, in a national address on December 18, 2024, heralded this approval as evidence of Liberia’s progress in governance, economic policy, and fiscal responsibility. While this is undoubtedly a moment for celebration, it also demands reflection and strategic planning to ensure that this opportunity translates into tangible benefits for the Liberians.
The MCC compact is not merely a financial windfall but a recognition of Liberia’s commitment to meeting global accountability and economic reform standards. Liberia’s performance on the MCC Scorecard, excelling in legal systems, trade openness, and fiscal responsibility, emphasizes the nation’s strides under President Boakai’s leadership. This achievement demonstrates that Liberia can pursue policies fostering transparency and sustainability, which are critical for long-term growth.
However, the importance of this approval goes beyond international accolades. Liberia’s first MCC compact, valued at $257 million and focused primarily on energy and roads, brought measurable benefits, including improved electricity access and infrastructure development. Yet, it also exposed the complexities of implementing large-scale projects in a country grappling with systemic challenges such as corruption, bureaucratic inefficiency, and weak institutional capacity. Lessons from the past must inform how this second compact is executed to avoid similar pitfalls.
President Boakai rightly emphasized this compact’s potential to address key barriers to economic growth. However, it is crucial to ask: What areas will this new compact prioritize? Will it focus on energy, infrastructure, education, or health care? While all these sectors are critical, transparency in decision-making and prioritization will be essential to ensure the compact’s resources are directed where they are needed most. Additionally, a comprehensive monitoring framework must be established to track progress, ensuring funds are used efficiently and with accountability.
Another critical consideration is the inclusion of all stakeholders in the planning and implementation phases. The success of the compact depends not only on government action but also on collaboration with private sector players, civil society organizations, and local communities. Such partnerships can ensure that the projects funded by the MCC resonate with the needs of ordinary Liberians, fostering ownership and sustainability.
At the same time, the government must guard against complacency. The approval of this compact is a testament to progress, but it does not absolve Liberia of its remaining challenges. High levels of unemployment, inadequate public services, and persistent corruption continue to undermine the well-being of many Liberians. The compact should be seen as a tool to accelerate reforms, not as an end in itself.
Critically, President Boakai’s administration must use this opportunity to restore public trust. Mismanagement of funds or lack of transparency in using this grant could erode the goodwill generated by this achievement. The government must communicate openly with citizens about how the funds are being allocated and the expected outcomes. Regular updates and independent audits should be standard practices to maintain accountability and credibility.
Liberia’s approval for a second MCC compact is a moment of pride and promise. It offers an unparalleled opportunity to address systemic issues and catalyze economic growth. But with this opportunity comes great responsibility. As President Boakai leads the nation in this endeavor, his administration must act with vision, integrity, and inclusivity to ensure that all Liberians feel the benefits of this compact. Only then can this achievement truly be celebrated as a milestone in Liberia’s journey toward sustainable development and prosperity.
