The World Bank has called on Liberia to implement a series of institutional and political reforms to unlock the country’s full economic potential and secure long-term prosperity. In its most recent report, the Bank warned that Liberia’s continued reliance on a resource-based economic model, primarily focused on mining, has resulted in cycles of stagnation and slow recovery, leaving the country vulnerable to external shocks.
According to the report, Liberia is at risk of failing to reach middle-income status by 2050 unless comprehensive reforms are introduced. The Bank underscored that without these changes, Liberia’s economic growth would remain insufficient to significantly reduce poverty or improve living standards for its population.
The report stresses the urgent need for macroeconomic stability by enhancing the country’s economic resilience and expanding income sources beyond the mining sector. Economic diversification is identified as a key factor to reduce Liberia’s dependence on mineral exports and foster sustainable growth in other industries such as agriculture, manufacturing, and services.
Private sector growth is also highlighted as a central driver of economic development. The Bank emphasized that businesses are vital for creating jobs, fostering innovation, and driving productivity. Encouraging entrepreneurship and expanding the private sector will be crucial for diversifying the economy and generating employment opportunities for Liberia’s young population.
The World Bank also recommended modernizing the public sector, particularly in education and healthcare, to improve service delivery and boost the efficiency of these vital sectors. Additionally, strategic investments in infrastructure, including roads, electricity, and digital networks, were cited as essential for supporting long-term economic growth and fostering a more competitive economy.
While Liberia has made some progress, the World Bank concluded that without these essential reforms, the country’s growth trajectory will remain too slow to significantly tackle poverty and improve the well-being of its citizens. The Bank emphasized that, with the right changes, Liberia has the potential to transition from its current resource-driven model to a more diversified and resilient economy that can provide lasting prosperity for future generations.
