Poverty and the Policy Response to the Economic Crisis in Liberia

Abstract

The purpose of this study is to provide in one place a set of papers that were written at various points in time over the last four years on poverty and the response to the recent economic crisis in Liberia. More precisely, the objective of the study is twofold. First it is to provide a basic diagnostic of both consumption-based poverty and human development (especially education and health) in the country using the 2007 CWIQ (Core Welfare Indicators Questionnaire) survey. Second, it is to assess the likely impact on the poor of the recent economic crisis, and especially the increase in rice prices, and to document the targeting performance of measures taken by the government in 2008/09 to help the poor cope with the crisis. These measures included a reduction in import taxes for rice, a reform of the personal income tax, and the implementation of cash for work temporary employment program. This introductory chapter outlines the topics covered in the various chapters of the study and summarizes their main results. The study is structured in three parts. Part one consists of three basic diagnostic chapters for poverty, education, and health. Part two is devoted to assessing the likely impact on the poor of the recent economic crisis, and especially the increase in rice prices, and to document the targeting performance of fiscal measures taken by the government to help the poor cope with the crisis. Part three provides an evaluation of cash for work temporary employment program also put in place by the authorities to help the poor cope with the crisis.