USAID Promises to Improve Fiscal Openness in Liberia - FrontPageAfrica

Source: Front Page Africa

Monrovia -- The United States Agency for International Development (USAID), through its Local Empowerment for Accountability and Decentralization (LEAD) Activity in Liberia, has promised to advance fiscal transparency and public participation in the National Budget Process in Liberia.

By J.H. Webster Clayeh (0886729972)[email protected]

The event, held on Wednesday, March 20, 2024, at the Mamba Point Hotel, brought together government officials and development partners, including civil society organizations, to brainstorm ways to enhance fiscal openness in Liberia.

Raquel Ferreira, the Network Manager for the Global Initiative for Fiscal Transparency (GIFT), emphasized that the mission is focused on advancing global norms, promoting peer learning, collaborative assistance, and championing the use of digital tools for sustainable and measurable improvements in fiscal transparency and inclusive participation.

According to her, fiscal transparency transcends mere data disclosure, adding that it serves as a powerful catalyst for positive change within communities and governments alike.

"Countless studies have underscored its ability to empower stakeholders, ensure inclusivity in decision-making processes, and foster a climate of trust and accountability. By amplifying the voices of marginalized groups, fiscal openness not only safeguards public funds but also strengthens the very fabric of society."

Established in 2011, GIFT stands as a dynamic action-network with 58 members, bringing together ministries of finance, including the Ministry of Finance and Development Planning in Liberia, one of the newest stewards, civil society organizations, international financial institutions such as the IMF, World Bank, OECD, as well as other stakeholders. This multi-stakeholder network serves as a unique and vibrant forum for dialogue, peer-learning, cooperation, and collaboration, fostering an environment of camaraderie and mutual support.

"In our early years, we spearheaded a critical review of international standards, leading to the development of the High-Level Principles on Fiscal Transparency, Participation, and Accountability in 2012. These principles serve as a guide for policymakers and stakeholders striving to enhance fiscal transparency, participation, and accountability," she said.

George Aki, the Chief of Party for LEAD, told the gathering that fiscal transparency and public participation are the two critical pillars of accountable governance.

In the realm of governance, these principles he mentioned are not merely buzzwords but essential components for building trust, ensuring accountability, and fostering sustainable development.

"Public participation serves as both a means and an end to a functional democratic government and plays a critical role in promoting inclusivity in fiscal decision-making. Moreover, public participation is an important aspect of fiscal transparency, and it has received increased attention globally," he said.

"Direct public participation in fiscal policymaking and the budget-making process is a fundamental right. Open and inclusive public participation assures greater transparency and gives a voice to members of the public and civil society organizations (CSOs). This can only be achieved through open sharing of information on the part of the government as Government budgets and off-budget fiscal operations have far-reaching repercussions for economies and societies," he said.

Tanneh G. Brunson, Deputy Minister for Budget and Development Planning at the Ministry of Finance, said since 2006 Liberia has been making steady progress in demonstrating its commitment to fiscal transparency and public participation by making almost all its financial reports and documentation available, as well as providing formal opportunities for public engagement in financial management through the Open Budget Initiative (OBI).

"We have also formally subscribed to the principles of open governance and have joined different networks, including the Open Government Partnership (OGP), the International Budget Partnership (IBP), and most recently in 2022, the Global Initiative for Fiscal Transparency (GIFT). Since our ascendency to the IBP, Liberia has participated in seven (7) rounds of the Open Budget Survey (OBS), which is periodically conducted every two years," Madam Brunson said.

She added: "We have also subjected ourselves to other international assessments, including the US State Department Fiscal Transparency Report, the Public Expenditures and Financial Accountability (PEFA), the Millennium Challenge Corporation (MCC), and the OGP's Independent Review Mechanism (IRM)."