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Development & Economic Planning

The Department of Economic Management is charged with the responsibilities of formulating and monitoring the country's economic policies and programs, which have a bearing on internal and external aspects of economic management. It serves as the principal adviser to Government of Liberia on economic policy, and drives the Agenda for Economic Transformation. The department also deals with external financial institutions and partners, including the IMF, in developing macroeconomic forecast for the Liberian economy on issues relative to the Liberian economy, and collaborates with the Central Bank of Liberia (CBL) macroeconomic policies. Such collaborations involve matters concerning financial sector policies including banking, insurance and capital markets. In addition, the Department handles all matters relating to public debt management as well as foreign aid, including bilateral and multilateral aids.

The Department comprises two Divisions: Economic Policy, Macroeconomic and Financial Sector Policy Division, and External Resources and Debt Management Division.

1. Division of Economic Policy, Macroeconomic and Financial Sector Policy

The Division of Economic Policy, Macroeconomic and Financial sector is responsible for formulating economic policy, and driving the agenda for the country’s economic transformation.

Key functions of the Division include:

• Continuously monitoring and reviewing developments in the external and domestic sectors, including production trends in manufacturing, industrial, infrastructure and agriculture sectors, and movements in prices, and changes in investment climate.

• Periodically initiating a review of the state of the economy, including publication of an annual report covering analysis of performance of all sectors of the economy.

• Dealing with all issues concerning macroeconomic policies such as balance of payments, exchange rate, inflation management, monetary and credit trends, monetary policy and overall coordination with the Central Bank of Liberia.

• Advising on policy matters concerning supply management and liaising with the Central Bank on demand-side issues with a view to ensuring effective coordination between demand and supply issues for inflation management.

• Handling financial sector issues including government policies that have a bearing on working of commercial banks and insurance companies.•Coordinating with the Central Bank of Liberia on all issues concerning regulation of Banks, Insurance companies and capital markets in so far as they concern government policies

2. Division of External Resources and Debt Management

The Division of External Resources and Debt Management is responsible for coordinating all aid and debt related matters of the Government of Liberia. It has the duty of framing Liberia’s aid policy to ensure effectiveness in aid use, and managing Government’s debt operations. The Division leads the implementation of the agenda on aid alignment and harmonization in accordance with Domestic and International Aid Instruments such as the National Aid Policy of Liberia and the Paris Declaration on Aid Effectiveness; and manages the National Debt Portfolio. The Division coordinates aid related functions between the Government of Liberia and development partners in accordance with the Public Financial Management Act of 2009, and pursuant to the principles of the Accra Agenda for Action (AAA), and Paris Declaration on Aid Effectiveness.

Core functions of the Division include:

• Coordinating Liberia’s relations with multilateral and bilateral aid and development agencies including World Bank, IMF, Africa Development Bank, UNDP, IFAD, FAO, DFID, USAID, etc.

• Managing both internal and external debt, and dealing with policies for ensuring prudential debt management consistent with fiscal sustainability and advice on limits on public borrowings and policies concerning publicly guaranteed debt•Sourcing bilateral aid from donors, and allocating it to various agencies so that aid is effectively used to responds to the needs of the economy;

• Overseeing all aspects of bilateral aid, including donor engagement and policy formulation, and monitoring aid utilization;•Providing bilateral aid figures to the budget division for incorporation in the budget.

• Ensuring assistance from multilateral institutions are effectively used consistent with the development agenda;

•Serves as the nodal unit for managing and monitoring the borrowing program and related policy issues in relation to multilateral agencies;

• Providing inputs to the Budget Division on expected flow of funds from these sources.

 
 
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