PL-480 title I

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. PES covers the period 8/80-7/83 and is based on an attached special evaluation (XD-AAP-081-A). The Title I program (comprising 4 agreements) is unique in that it plays an integral role (with Economic Support Funds and Development Assistance programs) in overall U.S. (and other-donor) efforts to restore economic and financial stability in Liberia and to support the return to civilian rule following the 1980 military coup. The program has not been an undue disincentive to domestic rice production and the current annual funding level seems appropriate for the short-term. Factors which have negatively affected the program include: (1) a deteriorating Government of Liberia (GOL) financial situation which occasionally has delayed disbursements of sales proceeds to finance development projects; (2) lack of coordination among GOL ministries and inadequate compliance monitoring and reporting; (3) lack of agricultural data to determine the effect of P.L. 480 commodities on domestic production; and (4) lack of GOL regulation of commercial rice imports. However, with improved management the program could provide a model for other countries on integrating P.L. 480 aid into an overall U.S. assistance effort. Action decisions include for the GOL to: (1) establish a committee to determine policy with respect to P.L. 480 aid, to program counterpart funding, and to monitor self-help measures; (2) tighten Liberian Credit Marketing Corporation credit policies; (3) more closely regulate commercial rice imports; (3) deposit sales proceeds quarterly in the National Bank of Liberia"s P.L. 480 account; and (4) gradually increase producers" rice prices. USAID/L should seek authorization for a multiyear Title I rice program and should try to have P.L. 480 agreements signed early on (in November or December) so the GOL can buy when U.S. prices are seasonally low.