By Mustapha Sesay
World Bank country manager, Parminder Brar, has said that the Bank would support Sierra Leone’s efforts to create a strong social safety net system that would identify and assist extremely poor households.
Mr. Brar told journalists last week that the social safety net project would make a direct cash transfer of about Le 150, 000 to 23, 000 households in four districts. He said these four districts which comprise Kono, Bombali, Moyamba and Western Rural, were among the poorest districts in the country.
The World Bank manager said the project was made possible with the ratification of two World Bank grants by parliament in the sum of US$ 44.3m the same week.
Brar added that US$30m would be used for the Supplementary Emergency, Economic and Fiscal Support Operation to support the national budget, as a response to the severe economic setback occasioned by the Ebola outbreak. US$14.3m would be used for the social safety net, he said.
“This is critical time for the government of Sierra Leone in terms economic growth, there has been a drop in revenue, and a minus 21 percent drop in growth. It is [a] difficult scenario for government to deal with. ” Brar said.
The World Bank country boss noted that the sharp drop in iron ore prices had compounded the difficulty by “shuttering” the main iron ore mine, which had been contributing greatly to the economic growth of the country. Thus he added, because the country was constrained with money, the Bank was coming in to help fill the gap of shortfall within the budget and to also help with the fight against poverty in the country.
Brar said the World Bank would partner with the National Commission for Social Action (NaSCA) to reach the targeted beneficiaries under the social safety net. He said the approximated Le150, 000 would be given to women, who tend to spend the money in ways that would benefit the family, such as paying school fees, buying food stuff and the general management of the home.
Brar revealed that the safety net project would last until 2019 and that the cash payment for this phase would be completed in January 2016.
He acknowledged that there had been irregularities in the payment during the pilot phase but noted that the Anti-Corruption Commission (ACC) had arrested three individuals in connection with the irregularities. He said they would continue to work with the ACC to ensure that the process was corrupt-free.
But despite this effort made by the World Bank and other international organizations to mitigate the poverty level, Sierra Leone is still rated among the poorest nations in the world with estimated 50 percent of the population living below the Bank`s $1 poverty line.
The World Bank country economist, Yusuf Bob Foday, said they have used the 2011 government integrated households survey done by NaSCA to select the targeted beneficiaries.
Responding to questions from journalists in connection with the Mammah Airport project, Mr Foday dismissed suggestions that the Bank was “jealous” of the Chinese involvement.
“We have no concern with China`s involvement in any project, but we have to be concerned about the debt ceiling, and also concerned about the timing of the project,” he said, pointing out that even though Sierra Leone`s debt profile was not excessive, “if you combine it with the Mammah project it will take this country to debt distress.”
The World Bank economist maintained that the Bank was not in any way dictating to the government as it was the sole decision of the government to execute or to halt the project for now.
“We only advise as a bank” he emphasized.
(C) Politico 21/12/15
