The Effect of U.S., China New Engagement in Africa and the Impact of Foreign Aid

  Troublingly, it is too late for the world to turn a blind eye to the current raging friction between the world’s most economic powers-US and China. Already, the row has developed into a trade war with each lapping one another with tariff to the dismay and chilling pleasure of global economy. Amidst wailing concern, this study among others mainly compares the new dimension of China-U.S. engagement in Africa and goes further to discuss in detailed Washington and Beijing impact in Africa. Although some of the concerns cannot be ignored, this article focuses on China’s engagement with African governments and states, and the U.S. impact on Africa’s development. Moving the discussion further, this qualitative study looks at the effects for America, China and Africa exploration, development paths and experience. The article is authored by an assistant professor of International Studies, Professor Josephus Moses Gray of the University of Liberia Graduate Program of International studies.

    
   Besides, the article further discussed the effects of
America’s contemporary foreign policy towards African governments and
interestingly, this work argues if Africa riches are blessing or curse of
corruption and miserable poverty. On the other hand, it debates the advantages
and disadvantages of Africa relations with China and America, while the current
state of Africa’s development in alignment with AU’s agenda, 2063 is also
discussed. This work also assessed America and China’s direct investment to
African governments and states, and goes further to present some accurate data
regarding both countries foreign aid towards African states and governments.
While it is true that U.S. and China’s engagement in Africa has advanced the
continent’s growth rate, it has also created substantial disagreement.

    
 In the contemporary international sphere power politics is mainly being
driven by realism, although there is always conflict with liberalism which sees
power from a contrary view. These two theories usually swayed world leaders in
the areas of globalist and nationalist, depend on the prevailing situation that
involves a particular state’s national interest. But, this work considers
mostly structural realism which suggests that countries formed a structure by
their interactions and then being strongly affected by the structure of their
interactions.

        
Waltz (2003) indicated that inline with structural realism, balance of power
and lobby are the two main strategies that states use to gain protections
interaction with other states, and that the choice of one of these strategies
is directly influenced by the international structure. According to realism,
the possibilities of an alliance forming are related to major powers in
international politics while minor powers are only able to form coalition
mainly to balance the rising power or to lobby with the recognized influential
states.

  
   This study is very essential as it delved into triangular
relations of the Republic of Liberia, the United States of America and the
People’s Republic of China, especially when both the U.S. and China are caught
in a deadlock of a trade war.  The question is can African take advantage
of the trade war and maximizes its relations with both countries, and what does
African need to do?

       
The Chinese ties with African countries cannot be analyzed without the United
States of America being brought into the debate as an overbearing variable
regarding the bond of friendship and cooperation.  China has a major
diplomatic presence in Africa. In fact, Beijing is more widely represented in
Africa with missions on the ground than in the United States. Beijing, which
has diplomatic relations with Fifty-one continent’s fifty-three countries,
beijing maintains an embassy with an accredited ambassador in 48 of them. China
maintains offices of a commercial counselor in 40 of those countries and seven
consulates-general in five of them (China’s Daily, 2017).

  
     The phenomena of China and the United States in
the global arena are quite significant and it presents opportunities and
challenges for post-war Liberia’s development. But what is the ultimate push
behind Beijing and Washington’s new ties with Liberia and the impact of
Beijing and Washington’s foreign aid assistance towards Africa’s poorest states
including Liberia?  The new level of Beijing’s influence has ignited
political competition between China and the United States.
     

      
According to the Chinese Ministry of Foreign Affairs (2016), China views
development and foreign aid as practical policy instruments to promote
relations, friendship and economic cooperation, while the U.S. attaches clearly
stated goals, stringent conditions, and strict criteria for its development
programs. Therefore, considering the balance of power approach, Liberia, U.S.
and China’s triangular relations placed the Liberia-state in a positive
position to singly exploit America and China’s coalition. What needed is to
balance the equation with both states, while at the same time benefit from the
African Union bloc interactions with the U.S. and China’s friendship.
     

     
Similarly, the colorful Africa-U.S. ties on one hand and amazing China- African
bond of exceptional friendship on the other-hand would be fractional if one
does not take into consideration both states’ engagement with Africa’s entire
five regions and 55 states. It is against this backdrop that this article
provides a vivid picture of Liberia, U.S. and China’s triangular relations, a
detailing of the three countries’ long-standing bilateral relations and the
socioeconomic and development impacts.  The three countries are known to
be democratic states but run different forms of governments- both Liberia and the
United States run a presidential system of government, while China, although
democratic, runs a socialist form of government.  The United States and
China have been chosen as a case study for several reasons. The two countries
are deemed as democratic nations,  stable, are the world’s economic powers
and  are actively engaged in Africa.  These countries have been
selected, as they depict and reflect an alteration in governance, resources and
economic powers.

    
However, the triangular concept has its own deep flaws. According to Ellis
(2012), the “triangle” concept does not consider other important actors in the
international arena; it treats Africa as a unitary actor. The triangular
relations approach also offers a comprehensive analysis of complex interactions
among the three states involved, therefore the study brings a focused approach
to three countries’ relations by assessing impact, challenges and implications
for Liberia.  The work considered triangular relationships in a plural,
nonexclusive style, considering a subcategory of the numerous imaginable
triangular relationships that hypothetically exist, without suggesting that the
relations of Africa.

    
Since there are three sides interacting, the conduct of their apparent
bilateral relations produces almost simultaneous effects among the three
states. it is against this background that Liberia, the first independent state
in African is brought into the narrative as the basis of this work since
Liberia was founded by freed slaves from America-the American Colonization
Society (ACS) in 1847, while Liberia and China to some extent share similar
historical experience having suffered imperialism.  Therefore, significant
effort has been devoted to evaluate the triangular relations involved Liberia,
particularly Africa, U.S., and China. Even though there have been several
publications, there is no such study regarding Liberia, U.S. and China’s
triangular relations and its impact. Therefore, the author deems it very
appropriate that the ties are put under investigation to contextualize the
framework of triangular relations, as the basis to present informed
conclusions.

  
     It is appropriate because the United States and
China’s relationship with Liberia is amazing and projects the much anticipated
social, political, economic and culture dividends, while at the same time it
also has the consequence in the context of gaps. China and U.S’s triangular
relations with Liberia and engagement with African states and governments is an
opportunity since the two states engaging in several projects, foreign aid
assistance, and other supports.  One can argue that the prevailing
political engagements and contacts between China and the African states, and
the interactions with the U.S, on the other hand, present an opportunity that
needs, with Africa suited at the middle of the power politics and completion
(MOFA, 2014). Both U.S. and China need Africa, while Africa also needs China
and U.S., especially considering both countries’ dynamics role in global
politics and their economic influence.

     
Chinese Embassy (2019) discloses that China’s GDP per capita had raised to
US$9,732 by the end of 2018, from around US$54 in 195, a 180-fold increase.
China was probably one of the world’s poorest countries at the time. According
to World Bank (2019), during the same period, US GDP per capita increased from
US$2,349, or 44 times China’s, to US$62,606, just 6.4 times. In terms of its
share of global GDP, China’s economy now makes up 16 percent of the world’s
total, from a mere 1.8 percent in 1952. Additionally, China’s population has
grown from 575 million in 1952 to nearly 1.4 billion at the end of 2018, an
increase of 140 percent in 66 years.

   
  China has gone from being a predominantly agricultural economy to
the world’s factory and beyond, with 27 percent of global manufacturing value,.
In 1952, a large part of China’s population struggled to feed themselves and
starvation was common. Then, the agricultural value-added accounted for 50.5
percent of the country’s GDP, with farmers making up 83.5 percent of the
workforce. By 2010, according to the World Bank, China’s manufacturing
value-added had become the largest in the world, and by 2017, it accounted for
27 percent of the global total (Chinese Embassy, 2017)..

    
According to Bachelet (2005), China is not a substitute to America’s global
dominance, but rather presents social, culture, economic and political
prospects for Liberia, a tiny West African state of less than 4 million
population, but have copious of resources.  But political pundits
viewed the mounting Chinese involvement on the continent as a potential
challenge to the U.S. long influence and interests, especially when America and
Liberia are traditional allies while China-Liberia are and strategic partners.

     
But what the phrase triangular relations depict? According to Ellis (2004),
triangular relations are interactions among three states that produce complex
processes of cooperation and conflicts among them. The term “triangular
relations” can suggest a new bond interrelating to Liberia, U.S., and China. “A
“sphere of influence” can be best described then as a geographic region
characterized by the high penetration of one superpower to the exclusion of
other powers and particularly of the rival superpower. Hast (2014) revealed
that the “sphere of influence” has two main elements: “exclusion of other
powers and limitation of the independence or sovereignty of the influenced
state”. According to Hast, the concept of the “sphere of influence” recognizes
a country that plays a significant role in influencing the alliances and
bilateral relations that other countries in this region may have.

      
Africa is classed as the richest continent in the world with gold, diamond,
copper, oil and vast forest, but yet, the continent is the poorest in the world
due to bad governance and corrupt leadership by political bureaucratese.
Scientists believe that Africa was the birthplace of mankind. By 100,000 BC
modern humans lived by hunting and gathering with stone tools. From Africa,
they spread to Europe. Meanwhile, about 3,200 BC writing was invented in
Northeast Africa, in Egypt (Work Bank, 206).  As a matter of fact, the
aftermath of colonialism is more serious in Africa than anywhere else.
Sub-Sahara Africa is especially hindered by its tropical location, high
prevalence of malaria, a small portion of people living near the coast, and low
coastal population density (Gallup, Sachs and Mellinger, 1999).

    
Some of the draw-backs for Sub-Sahara Africa’s poor development status include
weak institutions, miserable economic endowment, and widespread corruption and
abuse of state resources, ethnic, political and religious conflicts and the
patronage style of holding public offices of public trust. Africa is especially
vulnerable to terms of trade shocks, famines, political conflicts, drought and
floods (Morrisey, 2001).  It is found that African nations have aid-to-GNP
ratios more than ten times that of Latin America or East Asia, but still suffer
inferior economic performance. Ironically, within Africa, countries with poor
economic policies have received more aid per capita than those with responsible
policies (Graham and Hanlon, 2001).

     
 In the 16th century, Europeans began to transport African slaves across
the Atlantic. However, slavery was nothing new in Africa. For centuries,
Africans had sold other Africans to the Arabs as slaves. The trans-Atlantic
slave trade grew until it was huge. According to the World Bank, the current
population of Africa is more than 1.2 million Africa’s population is equivalent
to 16.14% of the total world population. The continent ranks two among regions
of the world. About 39.8 % of the population is urban while 61.2% is rural.

   
The emergence of China as a major player in the development of African
countries did heat up the competition with the U.S., especially in terms of
using foreign aid as a venue to strengthen the donor’s power among developing
countries. Chinese development assistance and other transcontinental
infrastructure projects to Africa, like US$900 billion to the One Belt One Road
Initiative, are growing, but the Trump administration aims to slash the foreign
aid budget in 2018, especially the aid to Africa, citing corruption as the main
reason. The proposed cut encountered fierce opposition in Congress and was
deemed simplistic and arbitrary by Senator Patrick Leahy, the Senate
Appropriations Committee’s top Democrat.

     
While for the U.S., foreign aid helped to place the U.S. in advance position to
project its national interest, at the same time to give the country’s leverages
to influence political and economic situations in Africa.  According to
OECD (2017), the U.S. foreign assistance includes loans, contracts, and grants,
while  Xi Jinping (2017) book title: The Governance of China, disclosed
that China-Africa relations are based on ten major pillars include Committed to
political equality and mutual trust, mutually beneficial economic cooperation,
enriching cultural exchanges, mutual assistance to security commented to solidarity
and coordination in international affairs. China-Africa comprehensive strategy
focused on industrialization program, Agricultural modernization program,
infrastructure program, financial program, green development program, trade and
investment program, peace and security, poverty reduction program, public
health program, cultural and people-to-people program.

    
Aid Data (2014) report
which cited William and Mary, claimed China committed US$350 billion in foreign aid between 2000 and
2014, while the U.S. gives US$394.6 billion for the period. According to the
Brooking Institute, from US$210 million in 2000 to US$3 billion in 2011, Chinese
investment in foreign aid to Africa experienced a dramatic increase. By 2009,
China gave about RMB 250 billion of foreign aid to the world, with almost half
(45.7 percent) of the total Chinese aid going to African countries.

   
China Africa Research (2018) argues that China is not Africa’s largest
“donor”, that honor still belongs to U.S, but other publications have
disproved that assertion. However, China is Africa’s number one partner since
2002, but USAID has gradually boosted the total foreign aid budget to a steady
amount that rests around $32 billion. According to USAID (2017) report, more
than two hundred countries have received U.S. foreign aid but said it unduly
goes to a few.  The top five countries are Iraq ($5.3 billion, Afghanistan
$5.1 billion, Israel $3.1 billion, Egypt $1.2 billion, and Jordan $1.2 billion.
 In the fiscal year 2017, the U.S. government allocated $49.87 in aid for
economic and military assistance.

    
Chinese State Council (2017)  discloses that the overseas Chinese aid
between 2000 and 2014 amounts to $354.4 billion while William & Mary (2016)
research claims that China has committed $350 billion to foreign aid between 2000
and 2014, parallel to the U.S. total of $394.6 billion reported by USAID.
 According to Chinese State Council “White Paper” (2016), China has given
about US$58 billion in development aid to 166 countries and international
organizations over the past years. During the fiscal year 2017, the U.S.
government allocated US$49.87 billion towards economic and military assistance
(USAID, 2017). A country by country report across Africa showed that the
Liberian-state, a traditional ally of the United States has received foreign
aid from the American government.

    
According to William & Mary (2013) research paper, between the period 2000
to 2013, sixty percent of the total aid went to transportation $29 billion,
energy $25 billion and communication $6.9 billion, but explained that the
Chinese investment in foreign aid to Africa experienced a dramatic increase. By
2009, China gave about US$48 billion of foreign aid to the world, with almost
half (45.7 percent) of the total Chinese aid going to African countries.
 The China’s development assistance and other transcontinental
infrastructure projects to Africa excluding the recent Chinese government US$60
billion development assistance has cut the world’s attention. Presently, the
U.S. has reduced its foreign aid budget to Africa.

   
Wan (2018) revealed that China’s phenomenal economic reform in the post-Mao
era, Beijing has built strong relationships with developing economies,
continuing to provide aid in a bid to promote South-South cooperation. Chinese
foreign aid is often referred to as having “no political strings
attached,” and therefore, a more attractive option for many non-Western
countries.  

     
China’s foreign aid expenditures increased steadily from 2003 to 2015, growing
from USD 631 million in 2003 to nearly USD 3 billion in 2015.  Foreign aid
expenditures fell by nearly USD 750 million from 2015 to 2016. Foreign aid
levels rose in 2017 to USD 2.45 billion. However, this amount is still less
than the annual aid expenditures from 2011 to 2015 (China Africa Research,
2018).

  
      According to China Africa Research (2018)
report, in 2017, the gross annual revenues of Chinese companies’ engineering
and construction projects in Africa totaled US$51.19 billion, a 0.5% decrease
from 2016. Bachelet (2005) explained that the top five countries are Algeria,
Angola, Ethiopia, Kenya, and Nigeria. These top five countries account for 53%
of all Chinese companies’ 2017 construction project gross annual revenues in
Africa; Algeria alone accounts for 15% and that the number of Chinese workers
in Africa by the end of 2017 was 202,689.  According to USAID (2012)
report, the U.S. gave out US$97.67 billion over 18 years in ODA to sub-Saharan
Africa, with infrastructure projects (48% of total aid) and humanitarian aid
(26 percent) being the top priorities. The health sector was given US$6
billion, the agriculture sector received US$4.2 billion and US$3.5 billion was
committed to education.

     
Contemporary China’s active rendezvous in Africa dates to the 1950s, while both
countries The People’s  Republic of China and the Republic of Liberia
entered bilateral relations on February 17, 1977, during the leadership of
former president William Richard Tolbert, Jr., a year after the death of
Premier Zhou and Chairman Mao Zedong’s deaths, with Hua Guofeng at the head of
the top offices of the state, government, and party.

      
State Department (2010) discloses that U.S.-Liberia relationship dates back
nearly 200 years and is stronger than ever as both countries continue working
together on several fronts. On September 23, 1862 U.S. recognized the Republic
of Liberia when the American Minister to England Charles F. Adams was empowered
to conclude a treaty of commerce and navigation with the Republic of Liberia 15
years after its establishment as a sovereign nation, and the two nations shared
very close diplomatic ties

    
According to New York Times (1962) edition, former President Abraham Lincoln in
his message to the present Congress stated:  that if there was any good
reason why the independence of Haiti and Liberia should not be recognized by
the United States. President Lincoln said he was not aware of it. President
Lincoln noted that: On the contrary, there are many very good reasons why it
should be recognized, and hence we are very glad that the Chairman of the
Senate Committee on Foreign Relations has brought in a bill for the appointment
of diplomatic representatives to these republics.   On October 25,
1862 the Treaty was signed by President Adams and the President of Warner

  
   Both countries belong to a number of the same international
organizations, including the United Nations, International Monetary Fund, World
Bank and World Trade organization. On February 23, 1864 Diplomatic Relations
and the American Legation at Monrovia were established during the
administration of Abraham Lincoln and Daniel B. Warner, when Abraham Hanson an English-born American pastor and diploma,
American Commissioner and Consul General presented his credentials to the
Liberian government. On May 6, 1949 U.S Legation in Monrovia was elevated
to Embassy status, when Edward Dudley, the first black American to lead a U.S.
Mission abroad with the rank of Ambassador presented his credentials to the
Liberian government (State Department, 2010).

     
China’s win-win policy of core principles is welcomed by Liberia’s former
leaderships and the current administration because it places socio-economic,
development and equality at the forefront of diplomatic ties and cooperation.
Recent trends confirmed that China-Liberia relations are moving ahead in a very
positive way, based on a vision of the community of a shared future, mutual
support and equality grounded on a common historical struggle against
imperialism and national independence.

  
   Liberia is a case study where China’s infrastructures are visible.
 China has provided aid to hundreds of projects in Africa which involved
agriculture, road, infrastructure, health, education, animal husbandry,
fishery, textile, energy, water conservancy, power generation, and other
sectors. Africa in recent years has come to be a major Geo-strategic importance
to the oil-dependent industrialized economies and giving attention that Africa
receives from state actors on the global stage in the context of international
politics, the idea of an African rebirth seems to be finding more and more
acceptance within the contemporary global politics.

   
For example, Chinese companies have been working in Liberia and have engaged in
visible bilateral projects including the construction of public buildings,
health delivery, and educational facilities across the country,
telecommunications sector, roads, awarding of hundreds of scholarship programs
for oversea studies, and has contributed to UN peacekeeping force in
Liberia.  China has completed the construction of US$55m Ministerial
Complex, about US$40m New Terminal at Roberts International Airport in Margibi
County, the multimillion Jackson F. Doe’s Hospital in Nimba County, and the
planned construction of a US$55m overpass Bridges. The figures regarding of
China aid to Liberia from 2006 to 2018 has ben be obtained despite of several
studies.

    
China also undertook millions dollars’ worth of projects in Liberia including
the “Chinese Building” University of Liberia Fendell Campuses, the Capitol
Building Annex, rehabilitation of the New Health Ministry and the Samuel K. Doe
Spoke Complex in Paynesville,  installation of Traffic lights in Monrovia
and its environs,  the Extension of MVTC, rehabilitations and refurbishing
of roads and bridges, support towards security, health, education,  human
development programs, public and private sectors development.

     
 President Xi Jinping, in his 2017 publication titled: The Governance of
China”, explained that China-Africa adopted the principles of sincerity,
affinity, and good faith and uphold the values of greater good and shared
interests. According to President Jinping, to ensure successful implementation
of China-Africa ten cooperation programs, Beijing provides financial support in
the tone of US$60 billion. According to the breakdown of the money, US$5
billion is allotted for grants and interest-free loans while US$35 billion
earmarked for concessionary loans and S$5 billion goes towards China-Africa
Development Fund and the Special Loan for the Development of Africa SME.
Additional, US$5 billion is targeted towards Africa-China Fund for Industrial
Cooperation. 

     
 The Chinese US$60 billion earmarked for Africa development alignment with
AU agenda 2063 China offered an alternative to the western style of cooperation,
which often required adherence to fiscal or other policy requirements as a
pre-condition for providing of funds (Trombly, 2010).   Borgenproject
(2018) reported that U.S. gave out $97.67 billion over 18 years in ODA to
Africa, with infrastructure projects taking 48 percent of total aid and 26
percent towards humanitarian aid being the top priorities. The analysis of the
content of the report showed that the health sector received $6 billion,
followed by the agriculture sector$4.2 billion and $3.5 billion was committed
to education.

    
During the regime of ex-president Johnson-Sirleaf, China’s waived Liberia’s
debt. The rehabilitation of major roads and fender roads including the Mount
Barclay-Ganta highway, Harper-Fish Town road, Cotton Tress-Buchanan highway
Tubman Boulevard and the construction of the Waterside bridge carried out by
Chinese companies. Nowadays, China is Liberia’s second trade partner, next to
Ivory Coast. While on the other-hand, Liberia has persistently received foreign
aid assistance from the American government. However, figures regarding U.S.
foreign aid to Liberia focusing on the period 2004-2017 amounts to US$3,701,080
billion. Africa receives about $133.7 billion each year from official aid,
grants, loans to the private sector (Worldatlas, 2018).

   
 The targeted areas covered under the U.S. foreign aid to Liberia include
energy sector project, forest incomes for environmental sustainability,
strengthening political parties Programs, advancing partners and
community-based, health care, basic education, good governance, agriculture
cooperative development, environmental protection, rule of law and justice,
social empowerment and support towards government programs.  The first
foreign aid Liberia received from the U.S. government through Congress approval
was US$100,000. The U.S. has emphasized that it is prioritizing investments to
restore and expand health services to address declines in maternal and child
health, declines in immunization rates, and increases in malaria. Liberia,
under the leadership of former President Ellen Johnson Sirleaf, has emerged
from over a decade of war to be a key champion of democracy, peace, and
development. The U.S. is Liberia’s leading partner, having invested over US$1
billion in bilateral assistance since 2003 (Whitehouse, 2011).

   
 In her remarks, Secretary Paulson (2007) said: I applaud these reform
efforts and we will work with the international community to find ways to
eliminate Liberia’s debt burden, which will allow Liberia to normalize its
relations with the the multilateral donor community, gain greater access to
desperately needed development assistance, and put its finances on a more sound
footing. We call on other countries to make similar commitments.

  
“I had the honor of meeting with Liberian President Johnson-Sirleaf this
week to discuss her strong efforts to rebuild Liberia after its devastating
civil war. Since her election in January 2006, President Johnson-Sirleaf’s
government has focused on Liberia’s reconstruction while demonstrating its
commitment to economic and political reforms (Paulson, Treasury Department,
2007).

     
According to the Treasury Department, Secretary Paulson on February 14, 2007,
requested Congress to authorize the use of up to $35 million in debt reduction
funds provided for in legislation now under consideration by Congress to help
fund the costs of forgiving Liberia’s debt to the international financial
institutions. The request was based on the Bush’s administration policy to
forgive $391 million in claims on Liberia under the Heavily Indebted Poor
Country (HIPC) framework, and requested funding in the fiscal year 2008 budget
to cover the start of that process, set aside $15 million to contribute to
forgiving Liberia’s debt to the African Development Bank and redirect more than
$150 million in funds held by the IMF as a contribution to forgiving Liberia’s
debt to the IMF, in consultation with Congress.

     
Besides, the U.S. government has also provided more than $500 million of
development assistance to Liberia over the past three years from 2005 to 2007,
accounting for more than half of total bilateral development assistance
received by Liberia during that time while in the fiscal year 2007 and
2008budgets, the U. S. government requested more than $200 million for Liberia.

    
Prior to the election of Madam Johnson-Sirleaf, Liberia’s debt equals $3.7
billion, but the full amount including the more than $1.5 billion of that debt
that was in arrears to the international financial institutions (World Bank,
IMF, and the African Development Bank) was waived. However, vast majority of
the arrears were eliminated using internal resources at these institutions
(Treasury Department, 2007).

    
In accordance with the Enhanced HIPC Initiative and the Multilateral Debt
Relief Initiative, the completion point brought the debt cancellation of an
estimated $2.7 billion in debt from the Paris Club, the IMF, World Bank,
African Development Bank and other creditors (Treasury Department, 2010). The
Treasury Department added that the U.S. also canceled 100 percent of its
remaining claims after the meeting of the Paris Club of international
creditors, bringing the total amount of U.S. debt relief for Liberia under HIPC
to more than $400 million.

   
The remarkable relations between Liberia and the U.S. further resulted in the
U.S. government in 2007 to provide $185 million as part of Liberian debt relief
financing at the IMF.  In its report published on November 13, 2007, the
Treasury Department disclosed that the U.S. also provided $15 million to the
African Development Bank for Liberian debt relief financing, and additional
$391 million in claims on Liberia under the Heavily Indebted Poor Country
(HIPC) framework.

       
Additionally, U.S. provided funding for Liberia’s required approximately $2.5
million contributions to clearance of its arrears at the African Development
Bank (AFDB) which brought the total U.S. contribution to clearing Liberia’s
arrears at the AFDB to about $17.5 million. Since 2008, Treasury technical
advisors have worked closely with Liberia’s Ministry of Finance to implement a
Code of Ethics, strengthen internal controls to deter and detect corruption,
and improve tax collection procedures. Author:  Josephus Moses Gray. Contacts: (231)880330299
or email:graymoses@yahoo.com

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