Lessons from foreign investments in Liberia

Conclusion 4:

The modern economy needs foreign funds to survive



The continued exploitation of the country’s natural resources by foreign private investors appears indispensable at this stage of the country’s economic development if the Government wants to avoid the immediate collapse of the modern economy.1 The fact that Liberians have not prepared themselves to take over from the foreign investors adds another argument to this conclusion.

This point of view does not necessarily exclude future active participation of Liberians or the Liberian Government in the exploitation of the country’s natural resources. However, the latter’s role should be handled extremely carefully. The creation of state owned enterprises will not provide a solution to Liberia’s problems. Any decision in this respect taken by the Government of Liberia must include provisions to reduce the large number of malperforming public corporations in order to stop the unwise spending of public funds. Funds will thus be freed and manpower made available for other activities.

In any case such a reorganization of the public sector is highly recommended. Above all, what is needed is sound management of companies which above all have clearly defined objectives and which protect the interests of the Liberian people.




1) The civil war and subsequent shutdown of foreign companies and the withdrawal of foreign investors confirmed this view: the modern economy had virtually disappeared when the war was over with an empty Treasury, unemployment rates of over
90%, and a National Product per capita which made Liberia one of the poorest countries on this planet.









Lessons from Foreign Investments



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