Foreign grants key to accelerating development in Liberia, study finds.
The paper explores ways to increase spending on infrastructure and human development in Liberia from 2013 to 2030. By using a model called MAMS, the researchers found that foreign grants and improved government efficiency are the best ways to create fiscal space. Taxes can have trade-offs, while increased borrowing may lead to more debt. A balanced approach of investing in both infrastructure and human development yields slightly better outcomes. The study shows that creating fiscal space is important regardless of mining export prices.