- Introduction
The following conclusions and recommendations are based on a study of
Liberia's experience with concession agreements granted to foreign investors
which covered more than 60 concession agreements.
Continued
- Conclusions
In the late 1970s Liberia had one of the best performing economies in
sub-Saharan Africa. After the occasionally even double-digit growth rates of
the 1950s and 1960s Liberia's economy began to slow down in the 1970s.
Also, it appeared that the social costs of the uneven distribution of the
results of the economic growth began to create serious political tensions.
Leaving the political consequences aside we will focus on the major
conclusions which have been grouped
as follows.
- Recommendations
Liberia is on the eve of a new phase in its economic development, which
very likely will again be based on external financing. This may be foreign
aid (Official Development Assistance, ODA), or Foreign Direct Investments (FDI).
For the sake of an independent national policy it may be useful to limit
the dependence on foreign aid because of the conditions inherent to these
funds. The Liberian Government may find it easier and more attractive to
impose its policies and views on foreign investors. This increases the need
to know what it wants, how it sees it can most effectively attract and deal
with foreign private investors.
The following recommendations may prove useful in this respect.
- Basic
changes in handling of concession affairs
-
Acquisition by Liberians of more skill and experience
- Improvement of the concession
policy
- A Plan of Action
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Concession agreements studied by the author:
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