Liberia : food aid : PL-480 Title I; program evaluation

480 Title I program to provide rice commodities to help Liberia meet its foreign exchange requirements and to generate funds for agricultural and rural development projects. Special evaluation covers the period 8/80-7/83 and is based on document review, site visits, and interviews with Government of Liberia (GOL), USAID/L, and other project personnel. As part of a larger U.S. assistance effort (including Emergency Support Funds), the program (comprising 4 agreements) has provided some economic stabilization in Liberia in the uncertain aftermath of the 1980 coup and had a positive effect on USAID/L"s development objectives. Supplying about half of Liberia"s rice import needs, the program has: helped meet the domestic rice production shortfall, but has not been an undue disincentive to domestic production; assured the urban population an ample supply of staple food; helped the GOL maintain its rice producer subsidy; generated sales proceeds to support GOL self-help development projects (17, mostly agricultural projects are underway); and provided U.S. leverage over GOL policies and programs. The program has been hampered by: the continuing decline of the Liberian economy; lack of GOL regulation of commercial rice import licenses which has impeded the timely sale of P.L. 480 rice; lack of communication and coordination among GOL agencies, especially in counterpart programming and implementation of self-help projects; tardy and incomplete GOL compliance reporting which has hindered project assessment; and slow generation and transfer of sales proceeds from the Liberian Produce Marketing Corporation to the GOL counterpart fund due in part to lack of a linking mechanism. The latter has caused the GOL to draw counterpart funds from its general fund, resulting in delayed and sometimes inadequate disbursements. Also, the GOL lost money on the 1980/1981 agreements because world market rice prices were higher than the GOL-subsidized retail price. Recommendations are to maintain the current funding level (higher funding might hinder domestic production) and seek authorization for a multiyear Title I rice program.