LIBERIA : NIMBA COUNTY RL'F.&Z. TECHXOLOGY OPG with ...

LIBERIA : NIMBA COUNTY RL'F.&Z. TECHXOLOGY OPG with ... LIBERIA : NIMBA COUNTY RL'F.&Z. TECHXOLOGY OPG with ...

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LIBERIA : NIMBA COUNTY RL'F.&Z. TECHXOLOGY OPG with PARTNERSHIP for PRODUCTIVITY PROJECT No. 669-0154

<strong>LIBERIA</strong> :<br />

<strong>NIMBA</strong> <strong>COUNTY</strong> <strong>RL'F</strong>.&Z. <strong>TECHXOLOGY</strong><br />

<strong>OPG</strong> <strong>with</strong> PARTNERSHIP for PRODUCTIVITY<br />

PROJECT No. 669-0154


A. FUUOING SOURCE<br />

FIRST FY I L~FE OF DsOJEC-<br />

f 1. 00CzYE'<br />

I COCE<br />

C. F 1 I C - C I 3. -0T.L I C El 1 r L t i. r3-ri<br />

-


ExqcUTIVE SUMMARY<br />

of ~f~/~iberia <strong>OPG</strong> Proposal<br />

The proposed grant is designed to increase the income, economic po-<br />

tential, and s.tandtrd of living of rural and urban poor in Upper Nimba<br />

.. . . .. . co-ty,:hy., ef f ering, :t+e< .appropriate training and development tools that will<br />

. .enab&~~,$h+.,tpr achieve lasting benefits, and to become self-sufficient<br />

.. . .. - -.<br />

,;l-.by: . . -the, yean,.ZQ22,+n the LAMCO iron ore deposits will be exhausted.<br />

In-aetipn, +s&ng_the .present project as a base, the program will be ex-<br />

,p+cfed :to:an.in:tegrated economic development program by (1) accelerating<br />

: agricultur-e and, -rura&.development , (2) Liberianizing industrial and com-<br />

mercial development-,:. andr (3) diversifying the economic base of the project<br />

area..:. Preparatian.wil1 also be made to link up <strong>with</strong> the proposed German<br />

Wtegra-tedRura1 Development Programme for Central Nimba County.<br />

. _ .. Inorder t@:accomplish the above, it is proposed that a grant of<br />

.<br />

$3,.258,.70Q- be: made..to. Partnership for Productivity Foundation/~iberia over<br />

.- a period, of .five_-ye*- ,&arting in FY 1980 to plan and implement an inte-<br />

,-grated: developmen%-program in the Yarmein, Zor and Sehyi clans of Upper<br />

Nimba County.. Total estimated costs of the program is $4,590,300. b d -<br />

ing from: 0-ther . sources- in support of the program would approximate $1,300,000<br />

over;.the. five-year- period. Assistance would be provided for programs in<br />

the fol-low-ing general.:-areas: agricultural production, appropriate tech-<br />

.nology (har*are and software), low-cost, self-help construction, commercial<br />

andindustrial en,terprise development, and credit. As phase two of an on-<br />

.going.program, the grant will enable PfP to *engthen and expand the ap-<br />

propriate technical assistance and credit program to enterprises in Upper<br />

Nimba County.. The expansion will concentrate primarily on producers in


:.<br />

- agriculture, small industry, manufacturing and construction, and the<br />

creation of linkages between rural and urban areas. The program will es-<br />

tablish an integrated economic development approach in the project area<br />

which will include (1) appropriate credit both as an economic facilitator<br />

;. ..- and. :as;. a. develppmental device; ' (2) management and technical assistance;<br />

: :.,i-,c . (3:).. the..necegs.ary economic linkages between rural and urban areas, pro-<br />

- *<br />

'i. . . .: : .duc.ez:. and- wrket,~<br />

w&.l.esaler and re tailer, supplier and distributor , and<br />

:i..: . ..each: le-ye& .<strong>with</strong>... -the, nw+. level, all the way . through<br />

. the export level, both<br />

<strong>with</strong>in and outside the country.<br />

.. . . -.. .<br />

. ..: 1.-Active-participation from the beginning by all beneficiaries is basic<br />

to the success of the project. Initial, and all subsequent decision-<br />

_.= - : .making and: activity must include the. beneficiaries in order to assure<br />

-. their personal commitment (and development), <strong>with</strong>out which the viability<br />

; . of She. comnruniitp cannot. evolve. Such self-help participation is the only<br />

:: :I: assurance; 10:f:- pe?manent- pxoduc'tive results. In institutionalizing develop-<br />

- .: - , : -men&. in=:the:.are&.,: PfP will cooperate, coordinate and strengthen relation-<br />

.. ,... . .-ph%ps,- wi-th. o-ther de~elopmental- activities and organizations, i. e. GOL<br />

;.; ..,ministries, ,and. organiz&tians, particularly the Rural Development Task Force,<br />

L. 3..internationa1.developmen&..agencies such as AID and UNDP, economic concession-<br />

. . - - .<br />

. . . - ariss~ such: as;- LAMCOi private volunta&y agencies such as PACT (private<br />

. . ; Agencies~~ollabora,~: 'Together) -and World Education and most importantly,<br />

the people of the program area.<br />

>. . . . ... . .. ,. .L i As? an orgaqizati-on. ~f~/~iberia will expand and become stronger and<br />

, .,~ . , more,ind5genou~. :. As. .an area-wide organization, it will aim to have all .<br />

, :: -. - parts=. crf~ th.e area represented on its board of directors and on its operating<br />

staff.. PfP has already been established by act of the Liberian Congress.<br />

1t.wilL aim at indigenous self-sufficiency for itself and for the area it<br />

.<br />

i


. .currently assists toward that end. Over the five-year period of the pro-<br />

posal, .~ ~. ~fP/~iberia and P~P/usA will continually evaluate their effective-<br />

ness in offering developmental<br />

, -. opportunities to people who most need such<br />

opportunities, and in their effectiveness in gradually moving the Yekepa<br />

area .. toward self-sufficiency by the target date - 2022. Ongoing evalua-<br />

tio~ will indicate failures and successes and will lead~to pertinent revi-<br />

. - . . sions to be implemented in the ongoing operation.<br />

.5<br />

- . . . .. ~.<br />

. .<br />

. .~<br />

. .<br />

. .<br />

Targets for the end of the grant period are:, ,<br />

. . .---- . . 50% of- .the small farmers in the project area will be using<br />

-. ,<br />

highel- yielding rice varieties . .<br />

_.-,- 1,500.acres of undeveloped. swamp and flood plain will be<br />

brought into cultivation of rice<br />

. . . --42%<br />

~ of<br />

farmers<br />

.~ . currently growing traditional swamp rice will<br />

. be trained in improving swamp rice cultivation<br />

-~. -- impro-vgdvarieties and cultivation practices for coffee and<br />

~- -.<br />

. . . cocoa.will.be used-by farmers already growing these crops and 500 new<br />

farmers.wil1 have been introduced into tree crop production<br />

. .<br />

-- dry season crops and vegetables most suited to the project<br />

-<br />

area will have been determined by variety trials and 250 farmers will be<br />

receiving training annually at the demonstration farm<br />

.. . -- -. approximately 1,500 jobs will have been created and annual<br />

non-mining sales will have increased from the c vent $3,300,000 level to<br />

approximately $10,000,000.


<strong>OPG</strong> Proposal<br />

for<br />

Liberia


Project Purpose<br />

Project Background<br />

Host Country Activities<br />

Economic Effects<br />

Technology<br />

REES<br />

RMLS<br />

SDP<br />

Appropriate Management for -<br />

Appropriate Technology<br />

Sociocultural Factors and ImplementFng<br />

Agency Environment<br />

Location and Organization<br />

Guidelines Governing Funding for Private and<br />

Voluntary Organization in Connection<br />

<strong>with</strong> Development Assistance Under the<br />

Foreign Assistance Program<br />

Poorest Majority<br />

Ins ti tutionalizati on<br />

The Viable ~ conodc Community Model<br />

MNC Involvement<br />

The Program<br />

The Basic Model<br />

Project Implementation<br />

Agriculture Development<br />

Appropriate Technology<br />

Lou-cost Construction<br />

Industrial and Commercial Enterprise<br />

Development<br />

Credit<br />

Implementation Plan<br />

Imp1emen:ation Schedule<br />

Evaluation<br />

Logical Framework Summary<br />

Waivers<br />

Budget


APPENDICES<br />

Realizing the Development Opportunity Created<br />

by a n Iron Ore Concession in Liberia:<br />

The Yekepa Model<br />

Progress Report 1978<br />

Map References<br />

Economic References from German Study<br />

Farmer Preferences from German Study<br />

Letter from U s t r y of Finance<br />

The Principal Elements ofsthe Yekepa Model<br />

and Their Interrelationship (tetrahedron)<br />

Farm Production<br />

Low-costaousing<br />

GOL Rural Task Force<br />

GOL Policy Paper on Small Business Dewelopment<br />

German Study reference to PfP<br />

The Swedish Approach to Hining<br />

Initial Environmental Examination<br />

Environmental Assessment of Pesticide Use<br />

Credit Plan<br />

Linkages Between ~f~/~iberia<br />

and Related<br />

Agricultural Projects


i<br />

Pr,j-ct Title:<br />

Project Location:<br />

PVO Name & Location:<br />

Central Headquarters:<br />

Contact Person:<br />

Date of Submission:<br />

Pro.iect Furuose --. -<br />

PfP/~il,eria<br />

Nimba County, Liberia<br />

Partnership for Productivity<br />

2311 18th St., N.U., Washington, D.C.<br />

Andrew Oerke<br />

*Y .23, 1979<br />

The proposed grant is designed to increase the income, economic poten-<br />

- . .<br />

tial, and standard of li- of rural and urban poor in Upper Ximba County<br />

by offering the appropriate tr- and development tools that wili enable<br />

them to achieve lasting benefits as a result of the iron ore mining opera-<br />

tions of the multinational corporation, LAHCO, and to become self-sufficient<br />

by the year 2022 when the ;tmn ore will be exhausted. In addition, wing<br />

the present project as a base, it will be expanded to an integrated econo-<br />

mic development program by (1) acceleraizhg agriculture and rural develop-<br />

ment, (2) LiberianiziPg industrial and commercial development, and (3)<br />

diversif- the economic base of the proposed project area. Preparation<br />

will also be made to l3n.k up <strong>with</strong> the proposed German Integrated Ruraf<br />

Development Programme for Central Nimba County.<br />

In order to accomplish the above, it is proposed that a @ant of<br />

93,258,700 be made to Partnership for Productivity ~ormdatian/~iberfa over<br />

a period of five' years starting ia FY i980 to plan and jsplernent an iate-<br />

grated development program in the Yarn~eiin, Zor aad S w<br />

clans of Upper<br />

Wimba County. Totat estimate costs of the pmgrram w ill be j/4,590,300.<br />

Otfler frmding sources in support ob the pro- would appro-te $1,300,000<br />

over the five-year perfod. Assistance wodd be provided to assist<br />

in the folloniag general areas: agricultval production, appropriate tech-<br />

nology (hardware and software), low cost, sell-help construction, commercial<br />

and industrid entarprise development, and uedlt. AS phase fvo of an on-<br />

appropriate tecSIIlical assistaoce and credit. pr- to enterprises i;r<br />

1


. .<br />

Gpper Nimba County. The expansion will concentrate primarily on produ-<br />

cers in agriculture, small industry, maaufactLuing and construction,<br />

and the creation of liPkages between rural aad urban areas. The program<br />

will establish an integrated economic development approach in the pro-<br />

ject area which will ioclude (1) access to cred~t at compatible levels,<br />

(2) mazagernent assistance, azld (3) the necessary economic Linkages between,<br />

rural and urbaa areas, producer and market, wholesaler and retailer, sup-<br />

plier and distributor, and each level <strong>with</strong> the next level, all the way<br />

through the export level, both -thin and outside the country.<br />

The evolution of such l-es is the process of moviPg from a<br />

subsistence economy. into an exchappa economy vbich cap more fully serve<br />

the growing needs of the local population. In such an evoiution, PfP<br />

offers tec3mical assistance, i.e. deveiopment help in appropriate m g e -<br />

ment at several levels, the development and application of appropriate<br />

technology, and appropriate credit both as a. economic facilitator a d<br />

as a developmezrtdl device. All such tec-cal assistance emphasizes the<br />

importance of individual and gr~up decisioa-making, participation, and<br />

self-help as the basis for development of the people of the Yekepa area.<br />

Active participation from the begipning by all beneficiaries is<br />

basic to the success of the project. Initial, and a U subsequent, deci-<br />

sion-mAing. and activity must include the beneficiaries, in order to<br />

assure their personal commitment .(and development), -thou% which the<br />

viability of the cormmvlity cannot evolve. Such self-help participation<br />

is the only assurance of permanant productive results. In institution-<br />

a J i w development fm the area, PS will cooperate, coordinate and - -<br />

s bengthea relationships , xith other developmantdl<br />

activities a d organLzations, i.e. GOL ministries and organizations,<br />

particularly the Rural Developnent Task Force, Fnternatiod development<br />

agencies such as AID and UNDP, economic concessiowies scch as -0,


&d prikte voluntary agencies . such as PACT (Pr-vate Agencies Collab'6fatFng<br />

Together) and World Education and the people of the program area.<br />

As an organization, PfP/~iberia must continue to expand and become<br />

stronger and more indig*nous. As an area-wide organization, if will aim<br />

to have all parts of the area represented on its board of &-ectors aad<br />

on its operating staff. PfP has already been established by act of the<br />

Liberian Congress. It will aim at indigenous self-sufficiency for itself<br />

and the area it currently assists toward that end. Over tfie five-year<br />

. . .<br />

period of the proposal, PfP/Liberia and ~fF/USA'will contirmdlly evaluate<br />

their effectiveness in offering devdopmentdL opportrmitkes to people<br />

who most need such opportunities, and in their effectiveness ia gradually<br />

mo& the Yekepa area toward self-sufficiency by the target date - 2022.<br />

As evaluation. indicates failures and successes, pertinent revisions will<br />

be implementedin the ongoing operation.<br />

The t'.llowir,5 conditions are expected at the end of rhe grant period.<br />

Fifty per cent of the small farmers in the project area will be as*<br />

higher yielding rice varieties. One thuusand five hd-ed acres of uudeve-<br />

loped swamp and flood plain will be brought h to culzivation of rice. The 4296<br />

of farmers currently growing traditional swamp rice will be trained in<br />

-roving swaq rice cultivation. Improved varieties and cultivation<br />

practices for coffee and cocoa will be used by f-ers already 6g0vFng<br />

these crops and 500 new farmers will have been introduced into tree crop<br />

production. Dry season crops and vegetables most suited to '*ha project<br />

area will have been determined by variety trials and 250 farmers will be<br />

receiviag ta-a- annually at the demonstration farm. Appro-tely 1500<br />

jobs will have been created aad annual non-mining sales will: have increas&d-<br />

from the current $3,300,00 level to approximately $10,000,000.<br />

Pr0.i ect BaclcPround<br />

Partnership for Productivity, the Govetnment of Liberia and the<br />

Liberian American Swedish 'Xiniug Company ( UCO) and zhe local people<br />

-<br />

>


: &e currently collaborating to create lasting and sustainable benefits<br />

as a result of the iron ore concession in Upper Nimba County. While<br />

concessions frequently bring short-term benefits in the form of employ-<br />

ment, skill acquisition, housing, education, and medical care to resi-<br />

dents of the concession area, the continuation of these benefits is<br />

typically dependent on the continued operation of the concession. If<br />

for some reason, the concession abandons the project,\the people attracted<br />

to the region by employment opportunities are left <strong>with</strong> few alternative<br />

means of support, and have often been separated from their traditional<br />

support mechanisms.' This is especially disturbing in situations where the<br />

local residents might have achieved more sustainable development had<br />

their progress pro~eeded at its own pace rather than at the accelerated<br />

rate generated by the outside concession.<br />

Xnowing that the life of its operation was limited by the size of<br />

the ore body, LAMCO set out in 1973 to 1-7 its dominant impact on the<br />

conmatnity aad to develop the initiative and self-reliance of the local<br />

oztizens. Since 1964 the residents of the Yekepa azea had been almost<br />

totally dependent on LAMCO for economic sunival. PfP was selected by<br />

LAMCO, after company officials obsex-red the PfP/~enya program, as the<br />

agency best qualified to participate <strong>with</strong> UYCO in a joint conmrunity<br />

viability effort. Initial efforts of U C O and PfP to spin-off from<br />

rhe concession a variety of non-mining business enterprises and to sti-<br />

mulate formation of new agricultural, mufactwring, and commercial<br />

enterprises encouraged local residents to take advantage of other re-<br />

sources available in the concession area. In 1978, when LAMCO was struck<br />

-<br />

by a severe recession ip the world marker for iron ore, residents of -<br />

Nimba County, aware by this time that dependence on mixing was precarious,<br />

turned, ia large numbers, to PfT for assistace in realizing other oppor-<br />

tunities. This grassroots upsurge in non-mining economic activity is


-<br />

be- encouraged, channeled and assisted. PfP, *-A the avowed purpose<br />

of broadening and diversifying the economic base of the concession<br />

area, is in the righz place at the right time to encourage, guide and<br />

assist residents<br />

ment goals.<br />

in realizing their own potenzial to reach their develop-<br />

~f P/~iberi.a was created as a non-profit, Liberian development fouadation<br />

by act of the legislature signed by the president iil July 1974.<br />

. -<br />

It uas the result of a recommendation by a coPsultanz, 'he present Ge-<br />

neral .Xanager of Pf~/Liberia, that a Liberian non-profit agency would<br />

be the best organization fonn to implement a program aimed at preventing<br />

the UYCO Concession from becoming a ghost toun den zhe ore<br />

bodies approach depletion at the turn of the cenrt.<br />

All facets of the development process have been mzerdepeadent - in accor-<br />

dance vizh the objective of a viable economic commrmity. In late 1977,<br />

it became clear that PfP szaff and budget were inadequate, and that the<br />

program was spread so thin as to impair its impact. 'The Upited SA&tes<br />

Government, via ~ W/~iberla f'unds and assignment of Peace Corps volm-<br />

teers, strengzhened Pfl dviag 1978. Tbis JSA assistance will c2fl-y over<br />

znrough October 1979. At chat time, ~fP/~iberia rrill be prepared to em-<br />

bark on a five-year program <strong>with</strong> adequate staff and fbdnce. The m o u s<br />

functaons of PfP can then be properly coordinated wi-a the work of other<br />

agencies and integated into Wberia's county and national aeveloprnanz<br />

Four and a hdf years of PfP activity have creazed a solid base<br />

-<br />

on which the program outlined later here- vill build, PfP izself -<br />

presently manages and operares:<br />

-a mixed d emonstration/tw farm<br />

--a farmer tr- center <strong>with</strong> low- for ten<br />

--an agriculnral. exzension service


--a related integrated mral development program<br />

--a farm tool, equipment, seed, chemical and fertilizer<br />

distribution center<br />

-- a par-cly equipped appropriate Technology center<br />

--an intensxve Liberian contractor training effort<br />

--an industrial, commercial and agricultural revolving .<br />

loan fund<br />

PfP has been the ptimary force in creating enterprises owned and<br />

managed by Liberians including:<br />

--a multi-purpose farmers' cooperative <strong>with</strong> 81 members<br />

--a farm supply store and rice'mill<br />

--a piggery<br />

--a pouitry farm (broilers and eggs)<br />

--fifteen fanns (primarily irrigated rice <strong>with</strong> other mixed<br />

crops )<br />

--thirteen rural school agricultural programs <strong>with</strong> demon-<br />

stration and producing plots (either 4H, Young Farmers<br />

or Future Farmers Clubs)<br />

--a sawmilling and forestry enterprise<br />

--an automotive mechanical repair and machiae. shop (Austrian-<br />

Liberian partnership)<br />

--a brick marmfacturiPg enterprise<br />

-a charcoal, production enterprise<br />

-a cinema<br />

--a handicraft production workshop<br />

-an electrical contractor<br />

--four low-cost building construction contractors<br />

--a rural provision store<br />

--two restaurants


PfP assistance has helped to improve the viability, or stimulated<br />

the growth of enterprises which were i9 existence prior to mid 1974<br />

including:<br />

--%-do fiirniture manufac- and lumber sillwork CompaaLes<br />

--a transport company<br />

--a Liberian-Swedish forestation. joint venture<br />

--a supermarket<br />

--a contract tailoring epterprise<br />

--a hotel-bar-restaurant<br />

XlreadY organized and established by PfP are student intern<br />

(practical experience) programs <strong>with</strong> Cuttington College, the GniversiOf<br />

of Liberia, aad Booker Uashington Institute.<br />

The report, "Realizing the Development Opportunity Created by a<br />

Iron-Ore Mining Concession in Liberia: The Yekepa Xodel," and the end<br />

of 1978 progress report, both attached hereto, detail the successes and<br />

failures encormtared by ~fP/Liberia sufficiently to Fndicate the pro-<br />

blems which are typical of the concession-dominated apvLroplnent in wbich<br />

PfP works. (see Appendices A and B. )<br />

Host: Countrv Activities . . -. -. --<br />

LP the past there have been virtually no other o ~ a t i o o beaidee s<br />

PfP/Liberia in Liberia m lved in the rural Mtwtrp and appropriate<br />

technology sector. The Goverpmat of Liberia has oPly recantly -signed<br />

the responsibility for this sector to the Liberiaa Devalopmant Corporatiorr<br />

(LDC). LP the past the LDC has bean pzd.marUy ipvol~ad b major project8<br />

and izmestma~t attraction in the urban areas, and it will take s e v k<br />

y a m for thls orgsaization to "tool up" anl morieat its pro- to<br />

have any major impact on the rUral L-eas.<br />

At the same t ae we feel that<br />

-


-<br />

. ?f?Is past experience, both positive and negative, will be of great value<br />

to LDC as they reshape their organization and policies to address the*<br />

new role and dasion.<br />

In the past, the only area in Uben.a's "ferdle crescentn not<br />

covered by an existing or planned iategratad rural development project<br />

was Nimba County. The Government of Liberia is just be- to become<br />

involved in this area; they have appointed a County Development Officer<br />

for Nimba County.<br />

In the future we erpect even more gova&mnt participation in the<br />

project araa. There are plans for the gov-%nt to open a crad+t Fruti-<br />

tution in -queue, W b a CousWf.<br />

Linkages between PfP/~iberia and related agricultural projects are<br />

discussed in Appendix 4. Other factors which impinge on the selection of<br />

the project's location and a~2roaches are discussed as follows.<br />

Econ-mic Effects -- Prior to the LciMCO I- operation, the Upper<br />

Nimba County area was substaptidlly a subsistenca economy. Now, about a<br />

decade later, <strong>with</strong> 4,000 cash wage earners, 3,000 of which are LAMCO<br />

employees, the area is in traition toward a market economy. But there<br />

are still large subsisterrca aspects, mostly in the rural areas *ere<br />

subsistence agr!iculture domkrates. The god is to have a self-supportipg<br />

area economy by 2022, largely using local raw materials other than iron<br />

ore. The major available resource is unused local labor - nuuderemploymant."<br />

RecogPitio~ of this fact does not automatically mean that wemploymantw in<br />

wage-pa- jobs is the inevitable future of the area. Wage-pa* jobs<br />

result from capitd inosstmtme and market organization. As the employment<br />

by LIHCO'is raduced - we hope slowly - it is unlikely * At mudl of the<br />

underlying in-vestmenl can be shifted to other productive and .j~b-~rociac&- -<br />

invesaents. ?resumably, LAl4CO rill havo deprecaatad a e investment on<br />

its ovn books, and soma social infrastructure investment such as roada<br />

and houses vill continue to be usable.


"<br />

.<br />

However, the goal of this project is the evolution of an economy<br />

which fits comfor-cably into the local context - economic, social and po-<br />

litical. Hence, as Nimba Councy moves through zransition toa-d a aew<br />

form of regional subsistence, in contrast to family or village subsistence,<br />

evoluzion should provide for retention of -he local value systems, cus-<br />

toms, and organizational structures, except as people may decide to change<br />

them-for their owl purposes. PfP's development offeriPgs - management<br />

assistance, other technical assistance as requested, and creciit - are<br />

useful to whatever local social and orgddizational stmcture the people<br />

want. It is <strong>with</strong>in this framework of +Abkiag tbt PfP approaches the<br />

e&nomic aspects of the project.<br />

The long-range economic objective, seen as necessary for the conmru-<br />

nity to attain self-sufficiency, is to create n o n - W g employment for<br />

5,000 persons and enterprises <strong>with</strong> aggregate annual sales of $50,000,000<br />

by the time the iron ore m3siag ceases in Upper Nimba Cormtp. Since the<br />

beginning of PfP's invovement 4+ years ago, the community has reached ap-<br />

proximately 75 of that long-range objective. As a result of PfPts acti-<br />

vities, there have been approximately 420 non-minin.7 jobs created and<br />

approximately $3,300,000 of annual ~terprise sales. The proposed pant<br />

activities will result in a total of 1,100 jobs created and annual enter-<br />

prise sales of P10,000,000 by 1984.<br />

The target group is a31 the- indigenous people in the program area,<br />

but particularly the 5,000 subsistence farm families and the 10,000 up-<br />

employed. or underemployed people in and around the concession area. It<br />

-<br />

will include the non-salaried and casual laborers vho reside in Camp 4 -<br />

and who have. the worst of two possible worlds - the overcrowdiPg and sub-<br />

standard housing of urban slums - and none of -he posizive benefizs of<br />

an urban society. A large percentage, 70-805, of the popuLation or' uhe<br />

program area, are dependent on semi-subsistence -culnue wbich uses a


'wide variety of production patterns. The land is used for shifting cul-<br />

tivation of upland rice <strong>with</strong> long fallow periods, some subsidiary crops,<br />

cassava and greens, and a few cash crops such as cocoa and coffee. P~P/<br />

Liberia has begun to assist agricultural entrepreneurs, small farmers, wizh<br />

appropriate management and technical training to promote mixed farms<br />

ranging from 2 to 20 acres, particularly concenzrating on the product~on<br />

of natural swamp and flood plain rice. One acre of upland rice in Upper<br />

flood plain rice can produce 3 tons an acre valued at $1,500. Liberia's<br />

rice deficit is 33,OuO tons annually, 5,000 tons in Nimba County alone.<br />

The present political disturbances underscore the importance to Liberia<br />

of reducing the dependence on imported rice and PfP aims to promote and<br />

assist local farmers to produce approximately 2,000 tons by 1983 wbich wzll<br />

be valued at $500 per ton or $1,000,000. The project will<br />

attempt to introduce 500 new farmers into tree crop production (coffee and<br />

cocoa) and 250 farmers will receive training in cultivatzon of dry season<br />

crops and vegetables. The intensive nature of flood plain rice cultiva-<br />

t~on will necessitate the partLcipation of a greater number of farmers,<br />

members of their families, and additional hired workers. This iacreased<br />

participation will utilize more of the unemployed or largely underemployed<br />

labor pool in the rural areas around YBkepa. Evidence of the labor pro-<br />

blem in the rural area is the migration of a large number of rural poor<br />

to the U C O concession area ia search of employment. Camp 4 is a shanty<br />

town near Yekepathathas 11,000 of these migrants. It is expected tbat<br />

500 farm jobs w ill be created by PfP.over the 5-year grant period whlch<br />

will have a direct impact on at least 2,00b people in the rural area<br />

around Yekepa. In addition, a direct seed exchange program will introduce<br />

509 of the farmers (2,500 fanners) in the project area to improved LAC-23<br />

seed whach wall increase agricultural yields, and hence incomes.<br />

-


h a promotion of, and assistance to induszrial and conrmercial en-<br />

terprises will result in increased no=-- production, incomes, and<br />

employment in rhe rural areas as well as in and around Yekepa. Ippro-<br />

xirnately 100 small businesspersons will receive assiszance uncier -as<br />

project. Parz of the integration of the Appropriate Technology Center<br />

into the local economy and society will be to briag local smali-scale<br />

entrepreneurs, including artisans, into the Center to receive training<br />

. in business and. in the technical aspects - software as well as hardvare -<br />

of -1 industries. There are also a large d e r<br />

of young hi@ school<br />

graduates who have benefitted from the educational ad-tages of grovFng<br />

up in the concession. Unfortunately, *ere are insufficient jobs to<br />

absorb them and a special effort will be made to reach these gzaduates<br />

and to use their educational training in aeveloping rural-based business<br />

enterprises. The number of new businesses to be started by -he end of<br />

rhe grant period will be approximarely 20 wbich will annually poduce<br />

about 8145,000 of goods and services, and employ up zo 200 people. Also,<br />

4 additional construction contraczar businesses will be created <strong>with</strong> the<br />

owner/operators trained in the technical and business aspects of contruc-<br />

tion. The need for low-cost housing and other construction opponunities<br />

in and around the Yekepa conrmuPizy should provide aple room for growth<br />

of these businesses to an annual volume of $400,000 by zhe fif'A year of<br />

the grant.<br />

PfP is cmently supportjng a program to train women in cloth p a -<br />

ting and dressmaking. In the past they have provided considerable assis-<br />

tance to women entrepreneurs (See Appezidix A, p.38) ~flis assistance<br />

be continued and special courses will be carried out for woman at the<br />

farmer training center.


Sance its inception, PfP/~iberia has worked towards developing its<br />

indigenous staff. Under the proposed grant, there will be sufficient<br />

counterparts to replace mosc of the expatriate staff, thus leaving a<br />

Liberaan-staffed organization at the end of the grant period.<br />

The macroeconormc effects of the pro~am are inrended to closely<br />

follow the National Socio-Economic Developmenr, Plan (1976-1980) and the re-<br />

cently issued Execut~ve Order #1. The Development Plan's major objectives<br />

are to (1) raise the standard of living tbroughout Liberia; (2) diversify<br />

production; (3) disperse sustaFpable socio-economic activities throughout<br />

the country; (4) totally involve the entire populatjon ia the development<br />

effort; and (5) distribute the benefits of economic growth and diversifi-<br />

cation equitably. The activities of PfP address all. of these objectives.<br />

The concept of a viable Nimba society in 2022 will dormnate the eco-<br />

nomic approach of Pf~/Liberia. In addition to the actieties set forth<br />

already in this section, this means a continuing search for linkages a-<br />

mong the various parts of the economy, and a contiauous effort to strengthen<br />

chose linkages, particularly those wbich lead away from, or are outside<br />

of the LAMCO operation. However, this must be done <strong>with</strong>out completely<br />

destroying the traditional subsistence economy. Porty years is a short<br />

Time in the development process, and conscious preservation of a subsis-<br />

tence base for the bulk of the people is essential. Linkages wbich<br />

effectively replace subsistence evolve only over time.<br />

Technoloq -- In computer terms, the technology used, and useful<br />

in the project is largely "software" rather than "hardwara." The emphasis<br />

is, and will continue to be, on traFPzng . . and organization; and the support-<br />

of activities leading to a self-reliant community, particularly those of<br />

small independent entrepreneurs and grass-roots, self-help corm~~nLty gToups.<br />

In this capacity, technological devices become a secondary consideration,<br />

useful if they e a c e peoples' abilities to meec zheir own needs, borh<br />

as individuals and as groups.<br />

12


As already indicated, the Appropriate Technology Cenzer (A%) vill<br />

actively stimulate the people of the entire project area to develop ap-<br />

propriate and feasible technical solutions to problems whia arise in -&eir<br />

darrly activities, and then to work ~ 5th them in fLndj=kg ways to satisfy<br />

the expressed needs. Increased emphasis will be placed on fLaw Local<br />

technological solutions to local problems. In simations where imporced<br />

technology may have been used, the project proposes to move toward added<br />

. emphasis on labor intensive and less exotic technologies.<br />

In its programs in Xenya, Liberia, Botswana, Upper Volta and W avi,<br />

PfP has developed a variety of approaches, all aFmed at ePhancing small<br />

ente-rise development <strong>with</strong> appropriate techniques. All of these approaches<br />

will be utilized in the present program. F o l l o is ~ a brief description<br />

of the technologies that have been developed by PfP which will be drawn<br />

upon and adapted in this project:<br />

-<br />

REES (~ural Enterprise Extension service) -- XEES recruits<br />

and trains local personnel to become d l<br />

business field advi,sors. These<br />

advisors work <strong>with</strong> clients in the places of business to traia them in<br />

management skills looking. toward self-sufficiency of the entreprezIeur.<br />

REES was first developed in Kenya, modified for use in Botswana, and is<br />

berag adapted to conditions in Liberia, Upper Volta and .Halaw'-.<br />

-<br />

RiS (Rural Market Loan scheme) -- BHLS comprises small re-<br />

vol- loan funds a-stered by local market commitr;eesl It MS first<br />

developed in Kenya to complement training in managerid skills. Small<br />

loans are extended to local entrepreneurs who are clients of REES, by a<br />

loan comfittee made up of local btfsinesspeople. Peer pressure is used -<br />

as an Mluence effecting loan repawenti. RMW 2rovide.s r d<br />

business-<br />

people <strong>with</strong> their only source of reasonable credit and provides the train-<br />

ing and experience necessary for the small businessperson to oarticipaTe<br />

in broader economic activity.


The scheme is also being used in Botswana andhasbeen adapted for use<br />

in Upper Volta. in Botswana, Barclays Bank makes loans to small Batswana<br />

enzrepreneurs, the loans berng contingent upon the borrower becomrng a<br />

P ~ P zrauung cl~enz.<br />

-<br />

SDP (self-Developmenz Projeczs) -- PfP has e.xpenmented<br />

m managemenr adnsory servlces for Self-Development Village Projects .<br />

such as cottage iadustnes, cooperatives, and women's production socie-<br />

ties engaged in handicrafts, food presemation, vegetable production and .<br />

vocational skills training. The training and skills development PfP has<br />

tested include product design, quality control, costing, marketing, book-<br />

keeping, budgeting and plssnint,~. The local people choose their own goals<br />

and PfP helps them in creating a profiz-*oriented project in order to achieve<br />

these goals.<br />

Based on self-dezermination, the program gradually adds community<br />

development and a marketing focus to a rural quasi-subsistence economy<br />

wxthout sudden jolts to traditional w ap of life.<br />

AP~ro~ria+.e Management for Aourouriate Technologll -- PfP is ex-<br />

perimenting <strong>with</strong> adapting management practices to the local producers'<br />

limited level of experience. Too often technology and technical skills<br />

are not accompanied by the right level of management. m e small manu-<br />

facturer who is manager, technician and businessperson, and who may also<br />

be non-literate, needs specialized assistance in developing appropriate<br />

management tools.<br />

PfF has an eight-year history of developiag business management<br />

techniques appropriate to the lev& of beneficiary need, partacularly at- -<br />

the lower end of the economic scale and in rural areas. PfP has noticed<br />

that investments in agriculture, manufacture, and the wholesale and retail


-<br />

trades often fail because, no matter how appropriate, only the hardware<br />

aspects of technology are being utilized. It has become apparent a t<br />

however well-trained in, and equipped <strong>with</strong> hardware, il' the enrrepreneur<br />

does noz know how to make a business of such assecs, he or she hill fail.<br />

The rechnological soft-mre that PfP proposes is approprLaze saaag-nent.<br />

In che agriculzural sector the project will use the proven se-&tz&cal<br />

packages developed under the Lofa County Project and otaer development<br />

i projects.<br />

Sociocultural Factors and lmolementine Aesncv Environment - - - . - - - -<br />

Location -- Physically, PfP will be managed from<br />

its present Yekepa headquarters office. It will operate a indusrrial<br />

estate including a mechanicdl mabit-ce and repair vorkshop in Yekepa.<br />

Also in Yekepa, PfP will build and supervise a low-cost construction con-<br />

tractors' tr- center, headquarters office, storage warehouse, and<br />

equipment yard. At-Grassfields ( 1 miles ~ from Yekepa), ?S will operage<br />

a Famer's Training Center, ~emonstr.ation/~rahing Fasm and an Approgriate<br />

T.ecfmologp Training Center. In Unification Town, a town of ll,000 popu-<br />

lation, 2 miles from Yekepa, PfP rrill operate a small business advisory<br />

office.<br />

The territory covered by PfP development programs and s ehces<br />

can be generally- described as Upper Ximba Coun-cy including +&e Yarmein<br />

and Sehyi Edan areas designated as 7, 28 and 27 on map #3 ja Appendix C.<br />

It is estimated that this area is 1,800 square kilometers and ?.at it in-<br />

cludes 60 villages, 3 major towns (Yekepa, Sanniquellie, WEicatioa TO-) -<br />

and a population of approximately 90,000 people.<br />

Xore than half of the people in the area are small holder farse-rs,<br />

though the degree of urbanization is high, especially <strong>with</strong> the large<br />

conrmnity in Yekepa (22,600, of which 1,200 are ex-paeots), Sarmiquellie<br />

. ..<br />

(6,700 in 1974) and Unification Town (11,000),<br />

. .<br />

-


A major objective of the GOL rural development program is to create<br />

a broader distributxon of income by increasing the per Capita income of<br />

che rural poor. The G eman study for Ximba County reports a per capita<br />

income of about $42 among the rural poor target group, the estimate<br />

belng based on annual earnings for the small-scale farmers of abouz $32;<br />

and an average family size of 7.7.<br />

The favorable family economic impact would be appreciable; iacrease<br />

would be from about $325 to about $1,200 for a representative farmer <strong>with</strong><br />

4.5 acres, to about $5,000 for the largest scale fanners, employing 5<br />

laborers from outside the family and each <strong>with</strong> 25 acres of mixed farm.<br />

Expansion and diversification of agriculture, while based on exiszing -<br />

subsistence farming, will provide more nutritious diets for the rural<br />

poor and through the larger market, the urban population will have avail-<br />

able a wider varaety of food at lower costs. PfP stresses the role of<br />

women in agriculture, especially since they, traditionally, supply much<br />

of the productive labor involved. PfP training programs and facilit~es<br />

place the participation and developmenz of women on an equal footing<br />

<strong>with</strong> the men.<br />

A large proportion of the people PfP works vith are either rural<br />

or recent immigranzs to urban life. These people are traditional in<br />

outlook and PfP takes every precaution to preserve and work through the<br />

traditional way of life. In collaboration <strong>with</strong> World Education, PfP is<br />

presently designing methodologies for enhancing participation on the part<br />

of the beneficiaries. These methodologies will be descriptave and ex-<br />

perimental rather than proscriptive and rigid, even nth respect to tra:-<br />

ditional coinmuual and tribal values, for ia the interchange between the<br />

rural and urban, traditional and modern, and immigrants and town areas,<br />

we may find that new values are emerging which must also be taken into<br />

account.


*<br />

The emphasis on integrated economic development will resul: not<br />

only in greater ner: employment and purchasing power through increased<br />

production and more efficient process* and markezjng of a w%der varieq-<br />

of foods, bur: also the increase in cash purchasing power w ill lead to<br />

an increase in the quality of life wich respecc to education, health,<br />

transportation, and water and energy supply. In addition, there -dl1<br />

* be a significant increase in the skill level of farmers and small busi-<br />

nesspersons. PfP's experience in the area and tfle Ge- Study survey of<br />

fanners preferences strongly support this contention (see Axendix E ) .<br />

Guidelines Governina b d i for ~ Priivate and Voluntarv Orzanization in . -.<br />

Conneczion wich Develoument Assistance Gnder the Foreisrn Assiszance Pro-<br />

Poorest Xaioritv -- Historically, the PfP Viable Comnnmitp program<br />

began at the top, <strong>with</strong> an infusion of fiPaPcing and technical know-how<br />

from W CO, zhe la.fge iron-ore mininp venture ia Yekepa. The mediate<br />

need during the first phase was to develop the business iafrastz=c~e<br />

that could support the new town and mining activity and turn as much of<br />

thisinfrastructure as possible over to the Liberians. aut PfP realized<br />

from the beginning that it had also to work at &eating<br />

on a broader base to include the poorest majority.<br />

enterp- rise and<br />

To pursue these. objectives, several years ago PfP began to work<br />

<strong>with</strong> farmers vim a thirty-die radius of Yekepa to creace Li3lcs berxeen<br />

the rural and urban areas. Since Yekepa was not capable of raising its<br />

ova food, this was a reasonable area in which to begin. 9y settizlg up<br />

an Appropriate ~ l e c f i n o l o ~ / ~ ~ ~ r o Center ~ r i ia ~ t cor&Ltct~oa ~ ~ ~ e a ~ - -<br />

<strong>with</strong> a demoastation farm, PfP was able to combine agriculture, maaufac-<br />

ture, technology, management and market- in one operation. By i nclua


subs~stence agrzculture that expands to cash crop agriculture, Pfl is<br />

able to have a human as well as an econormc impact wi~h its programs.<br />

Ins titutionalization<br />

Alrrvdy more ~han half of the PfP staff of ~f~/~iberia, including<br />

the deputy, is Liberian. Promising Liberians have been, a d are being<br />

recruited as the program expands, are being trained and given experience<br />

0; the job, and are promoted accord- to their performance. ~f~/~iberia<br />

exists as a private Liberiaa corporation that was created by a special<br />

act of the Liberian Congress. The U s t e r of Agriculture is the Chair-<br />

man of the PfP Governing Council that includes UYCO officials as well as<br />

LLSerian Government officials and businesspersons.<br />

~fP/Liberia is the institutional mechanism already in place. It<br />

is a legally rncorporated Liberian entity. It is being guided by Liberians<br />

on its Governirrg Council and its staff is gradually becoming Liberianized.<br />

It has an additional advantage in that it enjoys the support of the Go-<br />

vernment of Liberia and at the same time, preserres a measure of independ-<br />

dace as an administrative unit. m e Ministry of Agriculture has contri-<br />

buted regularly in-kind to the progxam. The President of Liberia recently<br />

visited the Pf'P program, and warmly praised it; he has suggested direct<br />

GOL financial support for the program (see Appendix F for letter to<br />

the Deputy Minister of Finance for Fiscal Affairs.)<br />

Pf'P, as stated, is meationed in the Government plans both for rural<br />

development and small-scale enterprise development and in zhe Governmant's<br />

-<br />

.<br />

Lower N W a County integrated aal development plans. While PfF expects -<br />

-<br />

to fully cooperate <strong>with</strong> all of these efforts, it will preserve its own<br />

identity as PfP/Liberia. It: will strengiaen its own operational capa-<br />

bilities during the course of the grant by (a) hiring and trauzing more<br />

Liberian staff; (b) chargiag for its servzces so that approximately $100,000<br />

W a l l be raised - dly at the endof the project; (c) contuwag its pre-<br />

18


'sent relationship <strong>with</strong> WMCO and enjoyiag ongoing support from 'chat source;<br />

(d) adding zhe Government of Liberia and other aZerss~ea donors such as<br />

zhe 'Jorld Bank, the German Goverament to its lisz of financial supporters.<br />

All of the above strategies will combine to jrovide ?f?/iiber;-a<br />

wizh a strong base of supporz to carry on its development acrivi,=ies. Iz<br />

will be up to PfP zo determine by the end of the grsncperiod a% wtrac lsvel<br />

.<br />

of activity the funding and the capability of the organization will rea-<br />

listically merge. We will not be able to finish.the task ahead in five<br />

. .<br />

years, Fortunately, the estimated life of the ore bo y extends beyond<br />

$<br />

five years, and is building the kind of diversified economy that will<br />

not be dependent in the long nm on UCO. PfP is also pursuing macro-<br />

investments for the area <strong>with</strong> Swedish investors in a large forestation<br />

scheme, and w%th an American agribusiness company investigazing the via-<br />

bility of a large-scale rice project.<br />

Duriag the grant period, PfP will have made a dgnSica~t contri-<br />

bution to eliminating the rice deficit, will have substantially increased<br />

production in agriculture and small industry, and will have created the<br />

basis for a diversified economy and its infrastructure and linkages a t<br />

will be able to continue even <strong>with</strong>out a large invesmenr; compooent.<br />

7 3 Viable E onoaric Co -<br />

Historically, in Liberia, PfP1 s developmen$ efforts have been ?nade<br />

possible by the financial contributiops of UCO, among o*&en. Because<br />

UYCO's involvement has been beneficial, the model, thou& unique, re-<br />

presents tremendous potential for ?=eplicability. It can serve to d aw - -<br />

the privatesector directly into supporting development work and improve<br />

the psychological climate bet#een thmelves, the host goverullets and<br />

the local population. Ye vill describe the XNC brvolvemenr fi-st and<br />

separately as "WC Involvementn. However, it must be kept i;l miad '*hat<br />

the basic model of a viable economic cormrmnicy, '&ouglr an incegrazed


eFonomic development approach, is noc at all dependent on a multinational.<br />

A donor agency could easily substitute for, or work <strong>with</strong> the multinational.<br />

The concept or the basic model will be described under "The Basic Xodel"<br />

in this seczion.<br />

XNC Involvement -- The impact of the aczivities of multinational<br />

corporations (~cs) on develop- areas is a SubjeCZ of great current<br />

interest. The operation of a high-technology, fully-monetized sophisti-<br />

cated project in a low-technology, partly-monetized, traditional setting<br />

creates profound social and economic effects. The capacity of all concerned<br />

to cons%nzctively govern these effects may well determine the fate of<br />

future MNC operations in developing countries.<br />

The world economy needs to develop its resources and to construc-<br />

tively utilize capital. There are, at present, psychological factors of<br />

suspicion, hostility and f~llty communicatron, deeply rooted in painful<br />

history, on both sides. On rhe one hand there is the fear of expropria-<br />

tion and nationalization; on the other hand, the fear of exploitation and<br />

manipulation.<br />

Colonial histon provides many examples of exploitation. An ex-<br />

traction operataon, after a limited period, may abandon its activity<br />

leaving the affected area <strong>with</strong> its expectations raised and its means of<br />

fulfilling them lowered. A manufacmrcing or agribusiness operation may<br />

continue indefbitely, crystallizing social disruption into a permanent<br />

pattern. Modern history abounds <strong>with</strong> cases of appropriatiozr or nation-<br />

alization of large MNC operations by governments of developing countries<br />

<strong>with</strong>out adequate compensation. Is'there any framework in wflich MNCs -<br />

can operate in developing areas <strong>with</strong> lasting positive benefits among the<br />

interested parties: the HNC, the host government and the affected popu-<br />

lation? PfP believes the answer is affirmative. Although PIP is moving<br />

away from rts dependence on WCO, UMCO has played such a dominant role


in the pasc, thazwe feel it is useful to document that element which has<br />

provided the base for the present expansion. In %he ?fP Viable C o m t y<br />

Model in Liberia, a process is takLng place which poiilzs cite way zo an<br />

acceptable, posicive see of relationships.<br />

'be h-oeram -- In an isolaced rural siruazion, UXO, an XiC<br />

owned by the Liberian Government, Swedish intereszs, and the aethlehem<br />

Steel Corporation, started minillp iron ore in the 'sixzies in Liber'La on<br />

the Guinea border. LAMCO built, organized and operated a commurrity for<br />

che local employees, but in 1973 decided that such a ctinty was more appro-<br />

priate for a non-minjng organization. PfP was chosen to zake over me<br />

various established small enteqrises in 1974, so, the Yakepa prodecz<br />

is now about five years old.<br />

In its actions, UYCO was motivated to build a more desi,rable,<br />

effective and profitable set of relatiollships among the YXC, the hosz<br />

government and the people directly affected by the projecz. he projecz<br />

offers to che local people of the developing area a w c e zo LmPmve *air<br />

lifestyle in accordance wich their own perceptions.<br />

UYCO also obviously felt that the effort to establish a new set<br />

oS relationships would be helpxf to it, since it supported-and sfill *up-<br />

ports-the PfP operation financially. UYCO is demonstrating its commit-<br />

ment, on a continuing basis, to the people of Yekepa and izs envk-ons Ln<br />

supporting their efforts to construct an ongoing, self-relianz cow~~un%ty.<br />

The balance of the cost is being me= by the host govemet and by inter-<br />

national donors from both Europe and the United States.<br />

Pf? has learned a number of significanz lessons in its four pears -<br />

of experience in the Viable Comrmmity project. It is increwingly avid-t<br />

thaz people will actively participate in their own development and chat<br />

of their community to the extent thaz *Aey are bluded in *e decision-<br />

making abouz their own development activities. The close lidcages bemeen


'tbe develdpment of people in a town and the development of people in the<br />

surrounding rural area are becoming a major part of the PfP approach. We<br />

are assuming an increasingly critical attitude toward the initiation of<br />

specific developmencal activities. They should fit the existing local<br />

economic, social, political, cultural, and developmental programs. Having<br />

started <strong>with</strong> the emphasis on management training as a form of technical<br />

assistance to small rural enterprises, PfP is increasingly convinced that<br />

there must be an accompanying component of credit availability, not only<br />

as a support to business, but also as a LeeJning device for people who<br />

have had limited experience in financial matters.<br />

It is inevitable that the learning process for PfP will continue,<br />

as the learning process expands for UYCO, GOL, and the affected popu-<br />

lation. But it is now clear that the insertion of a "neutral" operating<br />

entity - PfP - has strengthened and expanded a development process which<br />

promises continuing advantages to a11 the interested parties. Success<br />

will not be unremitting, but a process has been established which, <strong>with</strong><br />

adequate financing, is creazing a new and helpful re1ar;ionsbap among the<br />

WC, the host government and the affected population.<br />

'The major elements of the PfT strateay for cooperating <strong>with</strong> MXCs<br />

in a developing area are listed in Appendir G and are based on identifying and<br />

then fusing together the primary concerns of the interested parties. Each<br />

party brings to the program: (1) a set of fairly well-defined goals; (2)<br />

some more or less explicit expectat~ons; and (3) many asswqtions about the<br />

overall operataon and the role of the other parties. Each party also pro-<br />

vides partrcular Fnputs, and this necessitates an appropriate blending -<br />

thereof. In the past, all too often, the validsty of each party's needs -<br />

and contributions have not been N l y ackncwledged. Consequently, fric-<br />

tion and misunderstandjngs have resulted to the detriment of all pasr;ies.<br />

It is only by working closely together that all concerned will be in a<br />

position to make a significant contributron to the pressing issues of<br />

development.<br />

22


underlying the viable economic community model are:<br />

-- zechnical assistance<br />

-- credit<br />

-- an integrated approach creating l u g e s at e vev level<br />

-- char- the most successrW clients for serrrices and re-<br />

cycling that contribution in the form of continuing tech-<br />

nical assistance to those at the boctom of the ladder.<br />

-- creating surplus over subsistence.producti0n uizhin af-<br />

fected area whiJ.0 relying on self-help<br />

-- maximum involvement, socially, culturally, financially on<br />

the beneficiaries<br />

-- institutionalization of the program as much as possible<br />

through self-sustainhg a d self-supporting mechanisms<br />

Perbaps the concept should be subtitled, "A Ladder of Oppo,--tunityn<br />

rather than "A Meld of Opp~r.sunity,~ in that %&e model closely appro-<br />

ximates the double ladder in the DNA double helix molecule- The a s c w<br />

ladder, or staircase, represents the ladder of opportunity. Economic<br />

opportunities, through technicd assistance and credit, are offered ac<br />

every level of group or individual capability wizhln the sociev, fzom<br />

subsistence to the creation of larger businesses and bdustri-as. T&e<br />

desc~dirrg ladder represents the recycling, through direct charges and<br />

membership fees and activities, of the anergies of the more successful<br />

enterprises, through the developipg agent (in th+s case, ?fF/Lii?aer"-a) to<br />

the people at the base aad lower nings of the ladder. The modal is flex^ -<br />

ible and adaptable to political and soCial zkeBds. -<br />

Basic to the model are the cmcepts of appropriacaress and l hkage.<br />

The zechaical assistance is offered at the level a?propr;-ate zo 'he ab-<br />

sorptive capacity of the people and their enT2onment. Then -es


are created from the smallest rural area to village to regional head-<br />

quarters to capital city to external markets rf necessary. Linkages are<br />

also formed between producers, supplrers, and consumers. An effort is<br />

thus made to integrate the Total productive capacity of an area, horizon-<br />

rally and vertically, so That the entire area operates together as an<br />

orgaruc system.<br />

The proposal is tunely in that the Government of Liberia has re-<br />

cently taken steps to encourage both rural development and small-scale<br />

enzerprise development. The GOL Rural Development Task Force, the GOL<br />

Policy Paper on the Development of Small-Scale Enterprises in Liberia,<br />

and the new large-scale G e m<br />

project for rural development in Nimba<br />

County, all mention PfP as one of the implementing agencies in their plans<br />

for rural and small-scale enterprise development. (See Appendices J, K,<br />

and L.)<br />

The Am Missaon in Laberia has expressed a strong interest in see-<br />

the Viable Community Model replicated m other areas in Liberia. Green-<br />

ville, Harper and several other sites have been suggested. As detaled in<br />

the proposal, the Viable Community Model describes a general approach to<br />

xnzegrated aconormc development and can use, but is not dependent on, a<br />

multraational for its development. As in the Harper area, <strong>with</strong> its ply-<br />

wood factory, a n external lavestment may be helpful, but if not present,<br />

attention is focused on strxctly increased productivity of local resources,<br />

partacularly agriculture. Smce the model works from the bottom up as well<br />

as from the top down, even trith investment from the top the overall eco-<br />

noatac drastructuse is developed'as the people are able to absorb tram-<br />

- -<br />

and dete-e the directions of thorr own development.


Project Implementation<br />

The major program areas during the five years will be agricultural<br />

production, appropriate technology (hardware and sofrware), 10s-cost<br />

self-help construction, commercial and industrial enterprise development,<br />

and an appropriate revolving loan fund credit source. These five areas<br />

are intimately interwoven, but each can be given some separate considera-<br />

tion.<br />

Apriculture Develo~ment -- A large number of quasi-subsistence<br />

peasants and smaller numbers of more sophisticated farmers comprise the<br />

. .<br />

agricultural population. PfP will maintain wide flexibility in assisting<br />

in the agriculture sector. A start has already been made in direct help<br />

to rural villages, in the establishment of a demonstration farm and in<br />

the initiation of an agriculture extension service.<br />

The operation and management of the demonstration farm, farmer<br />

training at the farm, theextension service and schools, garden clubs,<br />

4H and Young Farmers Clubs are closely related. Consequently, two senior<br />

agricultural advisors, one of whom will be an expatriate agronomist, will<br />

have overall responsibility <strong>with</strong> three Liberian counterparts, each con-<br />

centrating upon one of the three divisions. At the outset, the senior advisor<br />

will devote a considerable portion of his time to their intensive on-the-job<br />

training to complement their background in indigenous agricultural traditions<br />

and practices. In addition, the Liberian Senior Agriculture Advisor will<br />

attend an intensive course in Integrated Pest Management.<br />

Although the demo farm has a number of allied functions, its pri-<br />

mary purpose is to provide farmers <strong>with</strong> exposure to mixed farm management<br />

through practical experience and training. The demo farm is already con-<br />

structed, a curriculum to include visual aids in the local dialects is in<br />

the planning stages and considerable crop research and variety trials have<br />

been conducted. The mixed farm crops at the demo farm include upland rice,<br />

irrigated rice, tree crops and nursery, fish ponds, animal feed crops,<br />

vegetables, tubers and seed beds. Continued experimentation<br />

25


vzll focus on develop~lg better varieties of locally produced and consumed<br />

food staples such as cassava, collard greens and sweet potatoes in con-<br />

junction <strong>with</strong> other outside varietzes that could improve the nutrition in<br />

the local dlet. here is some reluctace on the part of local faxzers<br />

to accept unfarmliar varieties of crops such as garden vegatables and they<br />

say not find an immediate market in the Yekepa area. herefore, experi-<br />

ments will test the economic feasibility of maxketing the crops in the<br />

large urban centers of ~onrovia/Euchanan and the viable spinning-off of<br />

the enterprise to a Idbarfan entrepreneur. In its initial stages, Chis<br />

project would create revenue to help defray operating costs of the farm,<br />

and would provide seeds for the farm supply store.<br />

Villagers wanting to obtain assistance are called to PfP's atten-<br />

tion by others already receiving assistance. Often the first contact<br />

and subsequent follow-up visits are the responsibality of the extension<br />

aids. They visit rural subsistence farmers and introduce them to a va-<br />

riety of methods forobt- higher yields. They will concentrate on<br />

encouraging farmers to use the many small swamps in Upper Nimba County<br />

for at least a portion of their total rice production, and identifying<br />

farmers interested in cultivating larger scale (4 or 5 acres), higher-<br />

yielding flood plain rice. They will assist tree crop farmers to plan<br />

tree stand locations and to obtain and plant seedlings. There will be<br />

one person who will concentrate on organizfPg and assisting school and<br />

agriculture clubs. These activities 6 1<br />

be expanded and straagthan<br />

considerably by the addition of eight extension aides, brFaging the total<br />

to ten, five for Nimba East and fiye for Nimba Vest. PfP recognizes that<br />

part of the success of any extension s-ce stems from r eme, timely<br />

visits by the aides, together <strong>with</strong> a good level of comnuaAcation <strong>with</strong> the<br />

villagers thamselves. The aides will try to identify a few iadiriduals<br />

ra each village to reinforce the aide's efforts by expl- and assis-<br />

- -


ting ocher farmers in applying the new techniques. Women perform the buT-L<br />

of the work in the fields and they will have every oppor~unicy to parti-<br />

cxpate in the village togerher n th the extension aides.<br />

Eighvlocal farmers have established, n ch Pf? assiszace, tfle<br />

Laake Multi-Purpose Farmers Cooperazive. It is sho- early signs of<br />

. success in spite of deficiencies in the area of finacial management, pro-<br />

cedures and g ened organization and offers room for improvamenz and ex-<br />

pansion. Part of the overall strategy vilZ be to work prim far~ers through<br />

the cooperative using theco- spto distribute famu inputs, provide loans<br />

for suck inputs, collecting payments a= harvest time when the f mers sell<br />

their produce through the coop marketing system. As uizh all credit<br />

sch&es, there is the problem of ensuring repayment of zhe loans. Working<br />

only <strong>with</strong> farmers who are members of the coop provides coasiderably more<br />

leverage upon individuals to repay. Peer pressure, the use of sanctions<br />

where applicable, the cuzting off of loans to other members mil repay-<br />

ment is made are all well-tested methods. Co-op specialists vill be added<br />

zo Strengthen and assist tfris existing co-op to btegrate the PfP traia-<br />

ing operation into their activities, c oowte <strong>with</strong> the cradit officer in<br />

loan procedures and encourage the growth of a similar co-0p.k Yimba Easr;.<br />

An indigenous counterpart will be trained and it is hoped - at Zbe coun-<br />

tespa8.r: will help in the adaptation of the co-op to utilize =he local co-<br />

operative work practices such as eest for uplaPd.rice clearing. The<br />

co-op specialist and coaterpart willtrain local co-op mapagers and vi-<br />

talize the members and board and generally strengthen zhe concept and<br />

operation. of cooperatives. -<br />

Part of the first phase of the Pf'P operation has been to assist rural-<br />

villagers. Villagers often think in tern of community projects as a<br />

first priority, i.e. roads, schools, wells, market areas. Zbis is natural<br />

for a semi-subsistence society and such projects are helped as a par= of


the process of learning management techruques. The villagers indicate<br />

their seriousness by fo- a village development committee to organzze<br />

self-help labor participatzon, set and realize a village fundraiszng<br />

goal, and work out a plan of operatron and follow-up <strong>with</strong> PfF advisors.<br />

(Concurrently, income-geoeratutg projects are promoted, partacularly<br />

rrce producticn, as part of the program target of increasing local rice<br />

production by 1,500 - 2,000 tons and lessen the 5,000 ton deficit of<br />

Nimba County.) A senior nllage development advisor will:supervise this<br />

operation assisted by a Local counterpart to be trained in the locatxon<br />

of suitable agricultural land, surveying, and land clearing.<br />

Assistance to animal husbandry enterprises and larger-scale farms<br />

(5-20 acres) rests <strong>with</strong> the Liberian senior agricultural advisor/deputy<br />

general manager who has overall responsibility for the agricultural arm<br />

of the program. PfP will. assist in the expansion of the already esta-<br />

blished enterprises sucfl as poultry and piggery enterprises to supply<br />

I<br />

from local sources sufficient supplies for the Upper Nimba County market<br />

and earn a reasonable profit in the process.<br />

The creation of all sizes and mixes of farms, e.g. one-acre, three-<br />

acre, five-acre plots, up to about 20 acres comprised of flood plab<br />

rice, cash tree crops, vegetables, fish ponds will be promoted depending<br />

on the ability of a e individual or group concerned. Traditional rice<br />

production has been in tbe uplands using shifting cultivation giving<br />

low yields and contributing to leaclung and erosion. Every effort will<br />

be made to demonstrate the considerable advantages in flood plain and<br />

natural swamp cultivation. Floodplain rice can give two yields per - -<br />

aanum averaging at 2 to 3 tons per acre. Natural swamp provides one<br />

yield per annum but this is still greater than the 3/4 ton per acre from<br />

uplands <strong>with</strong>out subsequent ecological damage. The emphasis will be


--<br />

.placed on increasing rice production vhile o ffea levels of choice to<br />

accomplish this purpose. Not all farmers, of course, are suited to the<br />

larger u ndertw but PfP can already identify a number of fazzers who<br />

are ready to begin to develop farms of this kind. B e PfP cont,ibution<br />

comprises of identi- suitable lazid, clear- the land &d discussing<br />

and arranging repayment of the cost of this operation <strong>with</strong> the farmers.<br />

The land clearing can be done ia a number of ways and PfT is proposing<br />

to dispense <strong>with</strong> mechaalzed equipkt such as caterpillars and tractors<br />

. .<br />

as much as possible and instead apply more labor-intensive tecflniques by<br />

utilizing t h unemployed persons in damp Four as contract labor. These<br />

people have migrated from the rural areas to work as day laborers in the<br />

mine where there is insufficient emplopent. By organizing them on a<br />

daily basis into land clearing groups, PfP can offer the farper a cheaper<br />

alternative to the use of heayr equipmet and -increase the incomes of the<br />

unemployed and unskilled and possibly reintroduce some of these migZaS%ts<br />

to a farming livelihood. ~ppropkate mechanized equipmeat 3uc3 as the<br />

roto-tiller w ill be available for rental on a daily basis for tke far-<br />

mer. The projections for the revenue from the hire of appropriate tech-<br />

nical equipmet and land clearing operations can be found in Appendix H .<br />

Other personnel needed are: one farm tractor operator, a caterpil-<br />

lar operator, a farm me-c, one roto-tiller operator, demonsrration<br />

farm workers and watchmen.<br />

Commodity purchases include four roto-tillers<br />

which will be the bighest lev& of technological mechanization of rlce<br />

production, three pick-up vahicles, tan motorcycles, assorted equipmant<br />

for land clearing and preparation, .water pumps, soil-testa, -eying - -<br />

and radio and connmmication equipment.<br />

A~~rooriate Teehnoloa -- The appropriate technology P r o m will<br />

require strengthening the edstipg AT Canter, both in physical equipmet<br />

and in its small enterprise trabiag aspects. The center mas begun k


1978 and is located at the ~f~/~iberrra Small-Scale Industrial Estate in<br />

Yekepa. The objectives were and are: (1) to create a mechanical workshop<br />

to produce experimental appropriate technology devices for sale or bire<br />

to farmers, contractors, and rural industrialists; (2) to provide an ex-<br />

tension outreach capable of extend* into the rural area and assist-<br />

these people to become famaliar <strong>with</strong> AT devices and methods; (3) to<br />

create a worhhop to maintain and repair all of PfP macbiaery equipment<br />

and AT tools; and (4) to provide mechanical and AT trajning to Liberian<br />

trainees and apprentices. Good progress has been made towards these ob-<br />

jectives. The workshop is on the way to completion, needing additional<br />

machine and hand tools and equipment such as arc welders, drill pressers<br />

and'others. The Center has produced cinvaram block devices which are<br />

used by the Liberian low-cost housing contractors, as well as rakes, r im<br />

threshers, cultivators, charcoal and brick kilns and poultry brooders.<br />

The A'M: has an expatriate senior advisor in place and two apprentice<br />

AT trainers working on metal cutting welding and mechanical repair. Two shop<br />

foremen/trainers will be added, one for the AT side and one for the maintenanc<br />

side. A Liberian AT assistant will. be employed addition to a vehical and<br />

equipment maiat-ce supenrfsor assisted by a field maiatenance mechanic to<br />

conduct repairs on the spot in the nual areas. Two extension aides are<br />

to be employed, <strong>with</strong> the necessary transport (2 motorcycles), to reach<br />

out to the rural areas to i.dantify entrepreneurs for t-raining at the AT<br />

Center, to work on field se-ce problems and to promote the spread and<br />

use of AT tools. The long-term objective is to create a cadre of agri-<br />

zriLtural and AT extension aides rho, <strong>with</strong> the support of the A m, can -<br />

stimulate rural people to organize, plap and undertake a wide variety of -<br />

income-generating and conmamity projects.


-<br />

Low-cost Construction- Trainiw and Develonrnent -- Initial<br />

attempts by U YCO to "spin-off" Liberian-owned and managed construction<br />

firms proved unsuccessful due to the inexperience of t&e v e r s a d<br />

the sporadic volume of contracts. PfP used a different approach, be-<br />

lie* that it would be more realistic to assist in the establishment<br />

of successful small sub-contractors vho might, in time, develop into<br />

general contractors. To this end, PfP conducted evening courses in the<br />

rudiments of estimatiPg, bidding, work planning and job and financial<br />

management. T&e course also served to identify several contractors vith<br />

the basic desire and capacity to grow. PfP obtained +he s-ces of a<br />

Peace Corps construction specialist who assisted in getting and carry5-i<br />

out larger contracts,<br />

Sfncs the start of the program, considerable experimentation has<br />

been conducted b ed at reducing the cast per unit of low-cost busing<br />

to the point where it is affordable and liveable and consfructed w ith<br />

local materials as much as possible. .Xucb progress b s been made; much<br />

more remains to be dane. Tbe coat &as to be further reduced so as to be<br />

<strong>with</strong>in the rea;:b of people lower dovn t&e social and ecanomic scale.<br />

Ways of bcreasiag the degree of self-help participation are ta be fur-<br />

ther explored and implamentad, as are nev AT devices sucb as an increase<br />

the use of local materials, all of vhicb will be of help in further<br />

reducing the cost. The contractors, already progressing we=, w i l l con-<br />

tinue to receive advice and assistance as appropdatkvhile new contrac-<br />

tors, who can organize a successful operation, VFU be idantifid, trained<br />

and assisted in all aspects of low~coat hawing construction. - -<br />

The 11,-r- .;.st construction portion of the Appropriate Tecbaology<br />

Development m ill identify liksly antrepraneurs for on-the-job/clasrroom<br />

t w and train and assist them in e5tabliahin.g *&emselves as sub


general contractors, and explore and adapt the concept of low-cost housing<br />

constructaon along the lines of the cnzeria mentaoned above. m e Con-<br />

structzon Trarning Officer, an expatrrate, will recru~t and intensively traln<br />

two Lrberian counterparts. The intention is chat one of the two kill be able<br />

t> become the eventual re~lacement for the expatrrate advisor. The expansioz;<br />

of the constructaon program will require a bookkeeper/office clerk and a<br />

vehicle driver. As the prime function of the Pf? staff is management and<br />

technical assistance, the comodity inputs required are one light pick-up<br />

truck, office supplies plus some secondary equipment - hand tools, sur-<br />

veying and drafting materials and other training aids.<br />

.To,, e~f-rt: low-cost housing projects turn out to be too expensiva for<br />

low income people to afford or b d s to finance. And often, <strong>with</strong>out the<br />

participation of the people themselves, they turn into uncared-for slums.<br />

The PfP scheme reduces the cost to about $1,200 per unit and includes the<br />

beneficiaries in the planxchg process. See Appendix I for costs and<br />

designs.<br />

A new function of the Appropriate Technology Center nll be to bring<br />

in artisans and upgzada their teobpical skills while teaching them busi-<br />

ness skills. The Liberian artisan wall be trained in the entire tecbnolo-<br />

gy including business. skills. This will include: (1) design; (2) tools<br />

and equipment; (3) technical t r u ; (4) bookkeeping and accounting;<br />

(5) marketing. Emphasis will be placed on recruiting already-operat*<br />

Liberian artisans who exprasspn interest in, and a need for additional<br />

tra3ning. It is planaed to traia these potential entrepreneurs so that<br />

each will be capable of operating & aspects of a d l<br />

enterprise. Th-<br />

credit, via the revolving loan fund, will. be available, as needed, by able<br />

frainees in their own businesses. The Liberian artisan will pay back the<br />

?fP investment over approximately a five-year period through one' or a com-<br />

bination of the folloring: (1) down payment prior to t r w<br />

(<strong>with</strong> or


kLthouz credit); (2) installment payments; (3) percentage of soss sales;<br />

(4)labor contributed to the Center or the employment of apprentices f,wm<br />

the Center in the artisan's business.<br />

such activity could be carried out in steps: szart by ck-g- for<br />

materials, then for use of equipment, then for consultation and other<br />

labor, and finally for the establishment of a new produczion unic under<br />

indigenous control, <strong>with</strong> continuing consultation. Durjng such an evolution,<br />

~f~/~iberia will work out a method of s m . & the profitability of the<br />

projects in order to establish iZseLf as a.self-sustaixbg iastitution.<br />

An equity position, percentage of gross sales or contribution of apprentice<br />

train* . . are among possibilities being considered. It will be necessary<br />

to maintain great flexibility in implement* this program, e.g., tmder-<br />

standing and identifying the needs of under-privileged k&diuiduais aizd<br />

groups, avoiding the imposition of Western ideas and teclmiques, adapting<br />

the speed of impl-tation to the abilities of the recipients.<br />

Industrial and Commercial Enternrise Develoomenz -- In order zo<br />

develop employment opportrmity and income generation in Yekepa whicfl will<br />

be 'independent of iron ore ininjng and be able to use che -rastructure<br />

development (i. e. railroad, roads, housing, workshops, elececiCy, water<br />

system, etc.) which might eventually be abandoned, PfP encourages the de-<br />

velopment of industrid and commercial enterprises using locally available<br />

materids and s e w<br />

other markets as well as Yekepa. Host promising<br />

for long-term viability are the forestry, savmilliz2g, and aroodwor?cing<br />

enterprises.<br />

-<br />

Another category of anterprise encouraged by PfT are those which -<br />

sene the W O<br />

comuunity market primarily but can gradually become less<br />

and less dependenz on that marke t and finally a deve independence. Sood<br />

process-, mechanical serpices, transportation, metal workkg, hotels,<br />

restaurants, tailoring, handcrafts and some semice and retaLl enzeqrises<br />

belong in that category. Even though the enzerprise mig3z d epd for some<br />

33


time on the LAMCO-created community purchasing power, PfP regards it as<br />

worth encouraging because of the entrepreneurral training gained by its<br />

owners and employees wbch LS transferable to another location if ne-<br />

cessary.<br />

Therefore, PfP's marn thrust in the early years, 1973-1976, was to<br />

encowe formatron of industrial and commercial enterpnses in and around *<br />

Yekepa, some of which, like the sawmillirrg company, required foreign in-<br />

vestment and expertise and were, therefore, set up as foreidLiberian<br />

partnershps; others like the frrrnxture companies, were set up as Lzberian<br />

corporations and sole proprietorships.<br />

. The long-term objective is to create enough 'fidustrial and commer-<br />

cial enterprise to absorb the Yekepa conanunity manpower pool as, and when,<br />

iron ore mining winds down and co generate enough income to support the<br />

community.<br />

PfP must work at many different levels to accomplish the objective.<br />

PfP will continue to encourage GOL and other agencies to review small<br />

business regdations, and PfF will endeavor to be an information and<br />

guidance center on how to comply <strong>with</strong> GOL regulations. PfP has encouraged<br />

banks, finance companies and development agencies to open credit facili-<br />

txes in Upper Nimba County. PfP has twice been selected to prepare the<br />

feasibility studies pertinent to financial institution branches in Yekepa.<br />

The Liberian Bank for Development and Lnvestment (LBDI) and the Agricul-<br />

tural Cooperative Development Bank (ACDB) are both talking about opening<br />

branch offices in Yekepa <strong>with</strong>in the next t-so years.<br />

PfP endeavors to attract foreign capital to Yekepa in the form of- -<br />

joint ventures w ith Liberlan entrepreneurs or foreign/Liberian partner-<br />

ships. In this effort, PfF collaborates <strong>with</strong> the Liberian Development<br />

Corp (LDC) and an Association of Scandinavian industry which seeks such


.<br />

Via its revolving loan fund, PfP will make long-tern, low-interest<br />

development loans to entrepreneurs and provide managerial, accounting,<br />

and technical advisory services to them. Sometimes other agencies such<br />

as International Executive Service CO~~(IESC) and Swedish Coope-rative<br />

Center (SCC) are calied upon by PfP for short-term. consulting a ssi~-<br />

ments to specific entrepreneurs..<br />

The second phase of the Fndustrialand commercial program will ex-<br />

pand the range of the accounting, financial,..matkeFipg and rhaaagement<br />

training services. PfP's capacity to respond to. requests-for assis-<br />

. .<br />

tance trill be strengthened by the follorirrg staff: an expatriate Rural In-<br />

dustry Advisor to commence in the first year, one new and one existing Li-<br />

berian counterpart who will receive intensive on-the-job training. The Rural<br />

Lndustry Advisor will initially concentrate on regularizing internal<br />

controls and reporting of the program and then provide adpisorp services<br />

to locd enterprises. To date, the Ganeral Xanager has devoted a consi-<br />

derable portion of hls-time to tbis field. Two additional Liberiazis will<br />

be hired and trained as advisory aides to commercial/industrial enter-<br />

prises, increasipg the outreach to small enterprises in the rural areas.<br />

The proposed commodity expenditures include tuo small sedans for the<br />

additional staff and related office supplies, e.g., a photo-copy machine.-<br />

Creriit -- Credit is the final elemant of the PfP program in Upper<br />

Nimba Couaty. It is part of each of the dements described above and yet,<br />

as a specialized activity, needs to be dealt <strong>with</strong> sepately. Credit has<br />

been an informal part of ~fP/LLberia's. activities from its incept: -on. - -<br />

LAnCO exteuaed to PfP a $100,000 non-interest bearing loan re-<br />

papble in 1985 of vhich $70,000 has been used to develop an industrial<br />

estate and $J0,000 is being w ed as a revolving loan fund. These loan<br />

funds together <strong>with</strong> funds from other sources, have bean used to assist<br />

various individual busiaesses and colmrmpity projects in the rrtrd area<br />

around Yekepa.<br />

3 5


The credat operation now needs to be expanded, strengthened, forma-<br />

lazed and steps need to be taken to institutaodize it. A credit of-<br />

ficer vath two assistants are proposed to coordinate and manage the credit<br />

activitaes related to the various elements of the overall program. They<br />

-11 brrng znto focus the exast- informal loan satuataon and start<br />

lending to individuals and groups on a more orgazuzed basis. The credit<br />

operation will be established as a developmental tool as well as a facili-<br />

Lat,mp3 mechanism. Small businesspersons, small fanners, co-ops etc.<br />

wrll be learning how to borrow money, use it, and repay it. They wall,<br />

<strong>with</strong> this experience, develop to the point of gaining access to conven-<br />

tional credit and financial resources. The credit operation will experi-<br />

ment towards indigenous institutionaiizataon that wll continue to meet<br />

the needs of the people at the lower socio-economic levels throughout<br />

Upper Nimba County. Appropriate credit will be available and actively<br />

used for all Pf~/~iberaa activities. It nil1 be particularly directed<br />

toward inputs for quasi-subsistence farmers and processing and other ac-<br />

tivities related to their outputs, and toward establishing and strangthen-<br />

iPg Linkages betweea the naral and urban sectors. In its human develop-<br />

ment function, credit will also be channelled into small village income-<br />

generating community projects <strong>with</strong> the purpose of expanding the monetasy<br />

and loan knowledge of quasi-monetized people through the actual loan<br />

exp eri enc a.<br />

The following loan fund criteria have been developed and success-<br />

fully applied in other PfF programs in Africa. They will be adapted and<br />

instituted by the credit officer. .(1) Any entrepreneur or group of entre-<br />

preneurs proposiPg projects wuch satisfy the following conditions:<br />

-- are profit-making and therefore self-sustaining, or are<br />

community-oriented<br />

-- contribute to the general economic and social well-beof<br />

the ares<br />

. -- axuphasize increased productivity and self-sufficiency of<br />

the area<br />

36<br />

-


*<br />

-.(2) Existing entrepreneurs must submit a PfP/Liberia loan application<br />

form accompanied by an up to date Balance Sheet, a Profit aPd Loss State-<br />

ment and ~LI analysis of hov the loan vill affect izcome and cosrs. Xev<br />

entrepreneurs must submit the loan application f om wlth statemenzs de-<br />

tailing capital investment needs and estimates of monzhly income a d<br />

operating costs. (3) In keeping vith the nature of the project and in<br />

order to encourage high risks but potentially productive and useful enter-<br />

- priaes, loan collateral is not required. However, in order to emphasize<br />

the importance of timely loan rapayment,, each project proposal will be the<br />

object of a thorough feasibility study,.apd entrepreneurs receivFPg loans<br />

will receive regular PfPrnanage+ant consultation. A follow-up sel-vi-ce<br />

for all loan recipients will discourage late repayments and defaults.<br />

(4) Projects where the entrepreneur furnishes less than 20% of the total<br />

investment will generally not be considered. However, in exceptional<br />

cases, this rule may be waived when the PfP advisor believes the project<br />

vo-y or that it has a reasonable likelihood of success. (5) Money is<br />

to be lent at "going rates" of interest <strong>with</strong> rapaymant tenns to be an=nged<br />

by PfP advisors based on the expected financial perfo-ce of the enter-<br />

prise.<br />

It is understood that a Dutch-sponsored credit project is coatam-<br />

plated for all of Liberia. Also, the new Agriculture Cooperative Deve-<br />

lopment BaPk has mantioned a willingness to open a sub-branch in Yekepa<br />

sometime after 1980. -/Liberia w i l l coordinate its credit efforts vith<br />

any such project, but it believes tbat a PfP-cont;.olled credit source<br />

should be closely integrated <strong>with</strong>ethe other assistaace oifered by pfP/ - -<br />

Liberia. Institutional credit is aot currently available in Uppar Ximba<br />

County to the people rith whom PfP is, and vlLl contirme to be working.<br />

(For a more detailed description of the Credit Plan, see Appendix P.)


Imolementation Plan<br />

(a) The project will be carried out directly by the Partnership<br />

for Productivity (PfP) utilizing small and short-term contracts for con-<br />

sultants or support services as necessary.<br />

(b) PfP will provide the technical assistacce through the use of<br />

paid PfP staff personnel, possibly supplemented by consultancy services<br />

as necessary. Commodities will be provided as detailed in the text, in-<br />

eluding items for experimentation and for staff support.<br />

(c) PfP has connaenced the process of identifying and recruiting<br />

additional senior staff to be assigned -d..thin the t de proposed for start<br />

of klementation. Existing staff are identifying local personael for<br />

possible future recruitment.<br />

(d) Proposed disbursement and procurement procedures and controls:<br />

PfP project manager will be responsible for disbursements, procurement,<br />

accormtiag and control. Accounts will be subject to appual review by a<br />

competent independent auditor. Reports will be filed <strong>with</strong> USAP) in line<br />

<strong>with</strong> contract requirements.<br />

(e) Schedule of actions required:<br />

<strong>OPG</strong> signed august 1979<br />

New staff arrivals<br />

Project implementation Oct. 1979<br />

begins<br />

(f) Pf'P moaitor5ag plan: The project manager will be making quar-<br />

terly progress reports to the PfP director and Board, <strong>with</strong> copies to the<br />

Am Mission. The project vill be'vlszted regularly by PfP intenaatio@<br />

management. In addition, it is expected that close personal contact will<br />

be maintained betweea the project manager and the AID Kission Director<br />

or his appointed representative.<br />

.


Coo~erativee<br />

lilro coqwt "live specialist<br />

llire lorn1 counterpart<br />

Contfww on- the- Job training<br />

~r cwcnLerpart<br />

Cunrmtnrpart replscnd erpat.<br />

advinor<br />

Review exieting coopn<br />

Expand existing coop<br />

Continue to develop exi sting<br />

cool'<br />

Promote h rxpnnd new coops<br />

Mollitor axlstinp animal hue-<br />

bnndx y enterprison<br />

Promote add) tional enterprises<br />

Year 4 Year S


Assint <strong>with</strong> nmtnblislunont of new<br />

ontnrprinns<br />

Coldact mn~~lcnl:J~~(:<br />

stwlios Cor Im~tdJ<br />

crnct ~',",'ll,ctn


~dentli'y 6, rocnuit trsineea<br />

Conduct in1 tin1 training oouree<br />

neview d revise training course<br />

Conduct trninine courses<br />

llire d trait, AT oxtansion aidsa<br />

Deplrty extension aides to field<br />

Extennlovl Alrlnn work In fibld .<br />

otleoiwg 'tmlning of extensioy aidea<br />

Selection or AT proJecte<br />

Development "1' AT projects<br />

Froclectio#r of AT tools


Evaluation<br />

In accordance <strong>with</strong> AID evaluation policy, Pf? plans to carry<br />

on continuing evaluation during the life of the project. The logframe<br />

(means of verification) indicates the periodic documents uMch -%ill be<br />

used to report problems, adaptations, and progress.<br />

As is emphasized throughout this proposal, the projecz will<br />

concentrate on the development of people, as well as the production of<br />

material items. This fact, combined <strong>with</strong> efie well-known scarcity and<br />

usmeliability of most statistics in a largely skbsistence area, dictazes<br />

(1) limited scheduling of planned accomplishments and (2) an exploratory<br />

approach aimed at adapting the conceptual framework for evaluation of +his<br />

and other development programs. Such a framework will include:<br />

(1) The qualitative approach wbich places great import.ance<br />

on zhe subjective, dynamic nature of the development process. Development<br />

is seen as hunan development, meaaing principally the various manifesta-<br />

tions of people's attitudes, values and consciousness. Such a view em-<br />

phasizes the critical nature of the sociocultwal context of the program.<br />

(2) Quantitative Mysis: for e;rampJ.e, cost/benefit<br />

analysis, which seeks to reflect in quantitative tern the tgpe of goods<br />

and amount of monetary income the project will produce year by year, to-<br />

gether <strong>with</strong> CRYP and PQLI statistics.<br />

(3) The defiPition of relationships and lizrkages vhich are<br />

needed at a U levels, horizontal and vertical, forrard and ba&i, to<br />

create the holistic framework necessary for comwzication and economic<br />

progress, and to decrease dependencies on exogenous factors. m s<br />

-<br />

approach<br />

will take into account facts such as the economic ipfrastructure, appro-<br />

priateness of soft-&-e and hardware systems, and credit, factors --ch a-e<br />

not sufficient in and of themselves but wbich are imponanc by vinure of<br />

their relat~onship to other factors.


In order to initxate this evalua%ion strategy, an exper~enced con-<br />

sultant is to spend 3 to 4 months la- the methodological groundwork<br />

m conjunctxon wxzh ~f~/~iberia staff. Thereafter, a senior Program and<br />

Evaluatzon Officer will join the permaaent staff. He will commence by<br />

gathering and collating human and zechaical data on the area, particularly "<br />

in the subsistence agricultural sector, workhg towards a synthesis of<br />

the three levels as the program develop, recoarmending changes in the<br />

methods of operation, end reporting the progress of the project to USAID,<br />

~JXJ/~ashi.a~ton and ~fP/Washiagton. At least one independent evaluation<br />

will.be carried out duriq the life of the program preferably at the end<br />

of the first two years, and the results will be adapted and utilized by<br />

the staff evaluation officer.<br />

a


1. b.F-6.d PrP/LtbVII .LISr Up.(ilW.<br />

I. 0th.I rrp.P1d a..rlupo.uC .Ir.,r=l<br />

ash u cs-zp.x-au- rl-a th. Go- h-<br />

1-c for C a w X- Co. L P ~ a. ~OL<br />

nprrr tad Prom..<br />

3. x7ACzru.d 1.r.l or local krn... rnd<br />

b U V A S i d dPlld .ad -= fez P R<br />

S.dS..-<br />

)I.<br />

.I-. Co.<br />

.s-e asrzirr ~n sppu


I<br />

\&evemne ho9e lunambr-prsc<br />

LIMCO continues to suyporr Jev't. rctivi-<br />

Program pucumenta ,ties r;l the Y.lie?a area.<br />

mupl repofta .Pd audits 'GOL conthe8 50- supjjort growth ~f the<br />

GOL md business statistics able economic- co- Cy<br />

Independent .valuation formi. of indiviw, socisl d econo-.<br />

ic dw't. are in%--r.1at.d at a baaic<br />

level and r y w I holistic approach<br />

t .roarnous facroro, r. rrrth*r or<br />

olitical instability ~ 1 not 1 rander tha<br />

dw't. effaW indfoctLYe.


A. To allow a procurement source waiver from AID Geographic Code<br />

941 (U.S. only) to Geographic Code 93j (Free World) source countries as<br />

. Description of Commodity: small, lightweight irailbFkes<br />

of 175 CCs or less<br />

. Approximate Value: $27,600<br />

. Probable Source: Japan<br />

,. - -- - : ..<br />

. Discussion: ~f~/~iberia is requesting a source waiver to per-<br />

. .<br />

mit procurement of approximately 19 small, lightweight trailbikes from<br />

Code 935 countries as per the guideline #4~2(d) in Handbook $1, Supplement<br />

B, pages 4-8. The mo;torcycles are to enable the appropriate technology<br />

center extension aides and agriculture and rural development extension<br />

aides to reach out to the outlying rural areas. The distances, terrain and<br />

climate invalved necessitate the use of motorcycles as the cheapest and<br />

most efficient means of transport and preclude the use of other forms of<br />

transport, e.g. bicycles. The same applies in the case of the credit offi-<br />

cers and management advisors. The type of motorcycles to be used will be<br />

light trail bikes.<br />

The project already has a number of motorcycles from 935 source<br />

countries which have proved td be well-suited to their purp3ses. Servicing<br />

and spare parts are available for these machines whereas they are not avail-<br />

able for U.S. motorcycles. No motorcycles of the size and type required<br />

are manufactured in the U.S.<br />

B. To allow for a Proprietary Procurement Waiver as follows:<br />

. Description ofCommodity: Caterpillar Front Loader<br />

. Approximate Value: $60,000<br />

. Probable Source: Caterpillar Corporation or agent thereof


. Discussion: ~f~/~zberia is requesting a Proprietary Procure-<br />

ment Waiver for the purchase of one Caterpillar Front Loader as justified<br />

according toGuideline #3~4~(3) and (5) in Handbook #1, Supplement B, pages<br />

3-8 as follows:<br />

The Liberian American Mining Co. (LAYCO) uses Caterpillar .<br />

equipment and Caterpillar has opened the only fully stocked sales and ser-<br />

vice center in Yekepa. Also., due to their experience gained while working G<br />

..., for the Minin&Company, a pool..of machinery operators and mechanics skilled<br />

in the use of Caterpillar equipment exists <strong>with</strong>in the project area.<br />

To take advantage of these existing skills and facilities the<br />

project needs Caterpillar equipment. To use a non-Caterpillar Front-end<br />

Loader, the project would have to develop new channels for the supply of<br />

spare parts and retrain the local operators and mechanics. Th~s means<br />

that operation of the front-end loader would have to rely, at vest, upon<br />

Monrovia as a source of spare parts. If the supplier of the front-end<br />

loader does not have a service facility in Xonrovia, the use of this<br />

equipment would depend upon a supply channel stretching back to the U.S.<br />

Because of the limited nature of this procurement, it is not reasonable<br />

to expect a supplier to create or improve its ability to service a single<br />

front-end loader operating in the project area. This places the full bur-<br />

den for maintaining and operating the equipment upon the project staff.<br />

To avoid the problems and down time inherent in the retraining of<br />

operators and mechanics on unfamiliar equipment, and the need to create<br />

new support channels a proprietary procurement waiver has been requested.<br />

C. To allow for a Proprietary Procurement Waiver as follows:<br />

. Description of Commodity: Yanmar Roto-tillers <strong>with</strong> cage,<br />

wheels, blades and manuals<br />

. Approximate Value: $24,000<br />

. Probable Source: Japan


. Discussion: Pf~/~iberia is requesting a Proprietary Procure-<br />

ment Waiver to permit procurement of approximately 4 Yanmar Roto-tillers as<br />

justified according to Guideline #3~4~(1) (3) and (4) in Handbook 91, Sup-<br />

plement B, pages 3-8 as follows:<br />

PfP/Liberia has experimented <strong>with</strong> a variety of rozo-tillers<br />

., including the W roto-tiller of the Philippines during the past three years<br />

1<br />

-<br />

to test their application in the local conditions of Nimba County, Liberia.<br />

The results of this testing has shokn the Yanmar machine to be the most<br />

*. >.<br />

successful from all points of view - design, job performance and main-<br />

tenance.. As a result, ~f~/~iberia has standardized and is operating two<br />

Yanmar roto-tillers. Staff has been trained to operate, maintain and re-<br />

pair these machines in the field. Stocks of Yanmar spare parts are already<br />

on hand and savings in time and cost of maintenance will be realized.<br />

The roto-tillers are needed to introduce firsz stage mechanization<br />

into soil preparation and irrigation for grain, legume and tree crop pro-<br />

duction. The general shortage of available farm labor in Nimba County<br />

means that plarrs to increase agricultural production necessitazes the use<br />

of these roto-tillers.<br />

Note: Exclusion of procurement from Free World countries ocher than the<br />

cooperating country and countries included in Code 941 would seriously<br />

impede attainment of U.S. foreign policy objectives and objectives of<br />

foreign assistance program.


A. Total Project Cost<br />

Foreign Exchange Costs<br />

Local Currency Costs<br />

B. Proposed Financing<br />

AID<br />

GOL<br />

LAMCO<br />

Other donors<br />

Estimated Prolect Costs<br />

C. Funding Contribution by FY ($000)<br />

- FYI - FY 2 EL2 - FY4<br />

AID 700.1 665.9 673.8 652.1<br />

GOL 50.0 70. o 70.0 70.0<br />

LAMCO 60.0 60.0 60.0 60. 0<br />

Other donors 105.3 134.5 150.4 156.1<br />

Total 915.4 930.4 954.2 938.<br />

D. Total Project Costs by Expenditure Category ($000)<br />

- Item - Fx - LC<br />

Personnel<br />

Vehicles<br />

433.0<br />

226.2<br />

1,493.3<br />

- -<br />

Machinery & Equipment<br />

Operation & Maintenance<br />

191.3<br />

203.6<br />

24.2<br />

249.6<br />

Experimental & Development<br />

Inputs<br />

73.5<br />

350.0<br />

137 5<br />

--<br />

Credit<br />

Buildings - - 21.7<br />

Administration & General 368.0 395.4<br />

Support 1,845.6 2,321.7<br />

TOTAL<br />

* represents O/H on AID grant<br />

566.8<br />

- Total<br />

53,258.7<br />

90.0 350.0<br />

60.0 300. 0<br />

135.3 681.6<br />

852.1 $49590.3


1) Persormel<br />

1009 Px Costs 85.8<br />

2) Perqomel<br />

1,0$ u: costa 95.7<br />

3) Vehloles<br />

loo$ Fx Costs<br />

4) Haoh L Equip<br />

100s Fx Costs 102.5<br />

5) Exp L Development .<br />

Inpu te 100% Fx<br />

. -<br />

15.5<br />

6) Equip cb Maint<br />

Opera tion 31.2<br />

1005 Fx Costs<br />

7) Admin L Genll Support<br />

100% 137.4<br />

8) Credit Fund 100% 25.0<br />

Total Direot 606.1<br />

011 159 91.0<br />

Total Costa - 697.1 662.7 670.6 648.9 563.6 3,242.9<br />

Legal Audit 3.0 5.2 j ; 2- 3.2 3.2 15.8<br />

'rn~n I 7nn. 1 hhr,.o 677.8 652, I 566.8 3.258.7


F. PERSON MAN YEARS BY FY<br />

Ztem FY1 FY2 FY7 FY4 FY5 Total<br />

Personnel<br />

Man Years<br />

(FX costs)<br />

Personnel<br />

Man Years<br />

(LC costs) 41 46 47 47


G. BREAKDOWN OF LINE ITEMS<br />

Machinery and Eouioment Inputs<br />

To include:<br />

Office machines - photocppiers, typewriters<br />

Surveying equipment<br />

Drafting equipment<br />

Mobile jacks<br />

Pallets<br />

Construction equipment and handtools<br />

Construction training aids<br />

AT machine tools, handfwols and assorted equipment<br />

AT stock and supplies<br />

Spare parts for AT machines<br />

Roto-tillers <strong>with</strong> cage, wheels, blades, manuals (4)<br />

Water pumps <strong>with</strong> hoses, filters, pipes, valves (6)<br />

Soil testing, surveying training equipment<br />

Radio and communications equipment<br />

Farm handtools<br />

Front loader<br />

Experimental and Development Inputs<br />

Vehicles<br />

Business systems equipment, supplies and training aids<br />

Material testing equipent for construction<br />

Inputs hito rural industries<br />

F'ublications, training aids, experimental supplies<br />

Inputs into Demonstration Farm<br />

Inputs into Rural Schools Agricultural Programs<br />

Small Sedans 7<br />

Pick-upa 7<br />

Motorcycles<br />

Bkcycles<br />

19


H. RECURRENT COSTS BY EXPENDITURE CATEGORY ($000)<br />

Commodities - 3 Vehicles<br />

Machinery & equipment 47.0 .<br />

Operation & maintenance 61.4<br />

In Kind Costs 50.0<br />

TOTAL 461.3<br />

2. Funding Contributions After Years ($000)<br />

GOL<br />

LAMCO<br />

Revenue from fees/rentals 100.0<br />

Other Donors 150.0<br />

In Kind Contributions 52.0<br />

TOTAL 462.0


~LXZING THE DEVELORIENT ommuxn<br />

CREATED BY .&?I<br />

IRON ORE XIYIXG CDNCXSSION 13 <strong>LIBERIA</strong>


EVOLUTION OF THE YEX'U.4 EXPERDIEYT<br />

Concern for the future of the concession<br />

area after depletion of the ore<br />

Larnco adopts a "spin-off" policy and<br />

starts implementation . .<br />

Spin-off results were disappointing<br />

ORW,XIZIXG AND FUNI)IXG TIE CCPERIXFXT<br />

A private agency is selected to manage<br />

the cowunity viability effort<br />

A program for Yekepa is proposed<br />

PFP's first three-year budget<br />

Applying for funds to supplement Lamco support<br />

First three year funding<br />

Funding tabulation<br />

THE -I GXPEBIWEJlT GETS UNDE8yiAY<br />

Priorities are determined<br />

PFP adopts a development strateqy<br />

The first year program is projected<br />

THE FIRST YEAR<br />

Coping <strong>with</strong> unforeseen public rdation problems<br />

Strengthening existing spin-off enterprises<br />

Starting new spin-off enterprises<br />

Reactivating teraporarily closed down<br />

Liberian enterprises<br />

Assisting enterprises proposed by Liberians<br />

to start up<br />

Starting enterprises to be spun off to<br />

Liberian ownership and management when<br />

proven viable<br />

Page


Rojects started and aanaged by PFP<br />

Other activities undertaken by PFP<br />

Conclusions discussed<br />

Continued assistance to existing<br />

spin-off enterprises<br />

Zlar spin-offs undertaken require<br />

less PFP involvement<br />

Smell-scale enterprises increase in number and<br />

rariety introducing new concerns and problems<br />

PFP builds a mull-scale industrial estate<br />

Conclusions discussed<br />

A senior Liberian Agicultural Advisor<br />

is hired and progam designed<br />

Fbds are obtained for the agricultural<br />

and rural developlent pro-<br />

G.O.L. pledges m agricultural tool and<br />

supply input<br />

PFP org-anizes and equips for the<br />

agricultural program<br />

Implementation begins<br />

Objectives of aasistance to the PFT irrigated<br />

rice, mixed vegetable and tree ears are revised<br />

Assistance to Ajavon Poultry Farm is spt-tized<br />

and becomes wre effective<br />

A Piggem project is studied, capitalized<br />

and imp1 wented in record time<br />

Liberian entrepreneur, James'Tabla, is given a<br />

loan and assistance to start a Farm Supply Store<br />

A demonstration and training farm is started<br />

. -


A strategy evolves for selecting farmers<br />

and rural development groups to assist<br />

Page<br />

Agricultural Extension Services are well 89<br />

received and effective<br />

A farm machinery and equipment center 91<br />

is established<br />

SECOND AND THIN) YEAR OTHER ACTIVITIES<br />

R-ovision of credit and experimental investment<br />

Cuttington College student intern program<br />

Contractor training and rural induatry development<br />

Miscellaneous voluriteer work<br />

Conclusions discussed<br />

OUTXMK PUR THE NEXT TWO YU8S<br />

95<br />

95<br />

95<br />

95<br />

100<br />

One donor agency is unable to continue 101<br />

financial support<br />

Reducing the budget rill alter PTP's capabilities<br />

101<br />

l%e program for 1978-1979 iacorporates 102<br />

espedient changes<br />

Increased reporting burden reduces 102<br />

productive staff time<br />

Conclusions discussed 104<br />

Creating a viable co-ity should be regarded<br />

as a primary purpose, not aa a possible by-product,<br />

of the conc+ssion venture<br />

An experienced development agency should be<br />

invited to laanage the viable community prop;rm<br />

Publicize the program thoroughly<br />

Hake sure that practical advisors are recruited<br />

and hired to run the program<br />

10s<br />

105<br />

106<br />

106<br />

-


Organize the development agency for<br />

the job to be done<br />

ContruI the amount of input into<br />

the program<br />

"Get on rid. it"<br />

Pas<br />

loi<br />

105<br />

108


The experiment described herein<br />

is still on-going. It was started in<br />

1974 by Partnership for Productivity<br />

foundation / Liberia and its parent<br />

affiliate, PFP / USA. The experiment<br />

was conceived, heavily supported and<br />

financed by the hmco iron mining<br />

joint venture in Liberia. Financial<br />

and "in kind" support was also pro-<br />

vided by PACT, a consortium of pri-<br />

vate development agencies; ICFVil-m,<br />

the Swedish YMCA-YWCA Association;<br />

and the Government of Liberia.<br />

Additional funds for the fourth<br />

and fifth years of the experiment<br />

have been pledged by the International<br />

Foundation for Science (IFS) and ap-<br />

plied for from the United States Agen-<br />

cy for International Development(USA1D).<br />

lIhat moderate success has been<br />

achieved so far has been because of<br />

the hard work and cooperation of<br />

Liberian entreprenec~rs and farmers.


The Yekepa Model is,dedicatad<br />

to two practical h-itarians<br />

rho joined in applying<br />

creative leadership to correcting<br />

an internatio~el injustice.<br />

David H. Scdl of America<br />

President, PFP/USA<br />

BEST AVAILABLE COPY<br />

0110 Wijkstram of<br />

General Xanager<br />

klco 1968-1976<br />

. .<br />

. . .~ ._ -


XINING CLAY FOR BRICX<br />

BESTAVAILABLE cow


This article attempts to establish a model<br />

whereby concessionaires, dealing <strong>with</strong> depletable<br />

resources and products . subject to unforeseen<br />

mrld market devaluation, and governments host-<br />

ing such concessionaires, can minimize the s-<br />

ploitive impact of these ventures -by turning<br />

them into development opportunities for the con-<br />

cession comawnities and their-residents.<br />

For too many years. concession agreeuents<br />

betreen sophisticated multi - national corpora-<br />

tions and the governments of developing count-<br />

ries .have been unjust to the local residents of<br />

concession areas. While they experience short-<br />

term benefits in the form of caployment, skill<br />

acquisitioa,housing, education and medical care,<br />

they are frequently left hi& and dm when the<br />

concessionaire leaves or den the exploitable<br />

resource is exhausted or abruptly devalued. This<br />

is especially unjust because these people aight<br />

have been better off if their progress Lad been<br />

allowed to proceed at a natural, rather than an<br />

accelerated pace.<br />

A method to avoid this unjust and inhumane<br />

result. and, in fact, to use the presesca! of a<br />

multi-national concessionaire to create lasting<br />

and sustahable benefits for local citizens. is<br />

being tested right nor in Yekepa, Liberia.<br />

After tbru years, the experiment in Yekcpa<br />

rhich teams up a high-technology, joint aining<br />

venture <strong>with</strong> a small Quaker sponsored private<br />

development agency appears to be aaking progress<br />

toward the creation,of an economically viable<br />

co-ity capable of sustaining itself after the<br />

mining company leaves.<br />

Three years is a short time to prove any-<br />

thing in an African development context.tlorever,<br />

the method which has evolved from the Yekcpa ex-<br />

periment has resulted in sufficient progress to<br />

justify recommending it as a model for airilar<br />

ventures.


During the construction and mine-development years little<br />

thought was given to m~nimizing the long-term exploitive impact<br />

on Liberia of the concession agreement which had a termination<br />

date in the year 2022. This was because such vast amounts of<br />

foreign capital were being spent for infrastructure which<br />

included a port and port tom, 160 miles of railroad, a mining<br />

tom in Nimba rith 3,000 houses, 22,000 population, electrification,<br />

rater purification, sewage treatment and disposal, schools,<br />

training centers, hospitals, churches, markets and recreational<br />

facilities. It seemed impossible then to envision that anything<br />

besides benefit to local citizens cottld result from such<br />

lavish and permanent investment.<br />

PARTIAL YIEW OF THE INDUSTRIAL AE.4<br />

5


Concern for the future of the concession area after depletion<br />

of the ore<br />

Not until 1969 was an1 serioua thought given to the<br />

future of the concession area after depletion of the ore. The<br />

incumbent Swedish General .%nager of hmco, Hr. Olle Wijkstros,<br />

expressed to the participants his conce.-n for the long term<br />

future of the mining and port communities and their Liberian<br />

residents. It was estimated then that 20 to 23 years of<br />

intensive mining might be all that were left.<br />

He convinced the participants that an important humanitar-<br />

ian and self-enlightened objective of the joint venture should<br />

be to convert the "company tomsn into communities which would<br />

remain economically viable after depletion of the ore. An<br />

objective this massive and broad in scope, he reasoned, could<br />

only be achieved by a gradual, but steady. progress which must<br />

be planned and started immediately.<br />

An interesting side glance into the reaction of various<br />

Lamco Board members to b. Wijkstrom's concern took place<br />

during the 1973 Board meeting when a small investment in a<br />

community viability project was proposed. Six out of eight<br />

Board members had approved when the last tn, arrived at the<br />

meeting late because of a flight delay. These two were<br />

generally regarded as "hard nosed" businessmen.<br />

When asked how they voted, one replied, "I find it<br />

difficult to vote on a proposal which I haven't heard."<br />

The senior World Bank Board member commented thus, "Gentlemen,<br />

you'll find it more difficult den you heard, nor vote yes."<br />

They did.<br />

Lamco adoots a "sain-off" uolic~ and starts imulementation<br />

Various managerial and technical personnel already<br />

employed by Lamco were appointed in 1969 and 1970 to study<br />

opportu~itiea for "spi~ing-off" to Liberian omerahip and<br />

management company-nm activities which were not directly<br />

related to the extraction, procsssing, and ahipment of iron<br />

ore. A policy was adopted whereby the company would consider<br />

spinning off to private entrepreneurs any production or<br />

serrics rhich the private enterprise could provide at, or<br />

below, Lanco's cost. Such activities as supermarket operation,<br />

home building, persopnel transport, and furniture repair<br />

were judged to be operations which, <strong>with</strong> pod management and<br />

adequate initial capital, could be independent private<br />

enterprises aer*ing the community efficiently and prosparing<br />

in the process.


2<br />

kaco acted quickly md spun off it8 mpenmrht to USrC ,<br />

an establiahed company rflich had enough capital to purchase<br />

the S80,OCO inventory. Later, a major portion of its house construction<br />

was spun off to Nirba Realty and ~onstructh(NRC~),<br />

a corporation created for this purpose. YRCC ras omed by Liberian<br />

shareholders, of dich only one ras actively employed<br />

by the new corporation aa general wager. The other shareholders<br />

rere fully emplopd elserfiere. hmco loaned YRCC its initial<br />

operating capital and started awarding construction contracts<br />

to NRCC rith prices and time limitations computed by<br />

harro's civil engineers to be comparable to Lamco's om costa.<br />

The aam procssa was followed in creating Hount iiinba Trmsprt<br />

Company Olonitco); knitco's initial fleet of vehicles raa omed<br />

by k o . but leased to, and operated by, Woniteo.One &areholder,<br />

an exceptionallr able Liberian fonerly eqloycd by Lar-<br />

co, was selected to be Wonitco's general manager. In Mu<br />

ahion, the comwnity's mtion-picture recreational program was<br />

made into a private Liberian omed and lanagad enterprise which<br />

leased the colpanjl+ theater and projection equipment for film<br />

shorings. A -11 furniture repair .hop was equipped rrtd turned<br />

over to Liberian ownership. Almst all shareholders of these en-<br />

terprises -re full-tire W o<br />

employees rho agreed to avoid<br />

conflict of interest by staying out of their day-to44 auragement<br />

.<br />

Soin-off results rere diuowfntinq<br />

It mon became evident that these spin-off enterprbea which<br />

wre crested to become sound, independent. Liberian om4 and<br />

managed companies rere not mrking well. The serricr8 provided<br />

by spun-off corpanies sdfered from problem8 relating to poor<br />

technical maintermace, hadequate personnel training, and organ-<br />

izational difficulties. The companies themselves became financi-<br />

ally shaky for reasons most often reflecting lack of rapagerial<br />

e?rperience and accounting drllla and sometimes unforeseen local<br />

concepts as to rhat constitutes mund buainesa judgesvent in the<br />

use of company ftmda and other assets. For a rhile krco endeav-<br />

or-d to prop up tbe spun-off corporations rith mrgency iajut-<br />

ions of capital and advice, reasoning that their start-up prob-<br />

lems night be noma1 phenomena and disappear after a year or tro<br />

of shakedown and experience. Thi8 optirin a8 not justified.<br />

Prablels in aoolication of the soin-off eoncrut<br />

Vhen a specialist in Afriuo enterprle developent n a enga-d<br />

as a consultant in 1973 to nke racnrtndatiorm toncerning<br />

application of the apin-off poliw md to dwelop an over - a11<br />

stnteg and plan for mrkfng t o e w d t y<br />

fa-<br />

riability.hir fi-<br />

ndinm indicatad that while the rpin-off concept- sormd, diaappointiag<br />

rwsultr rdated to application of tha concept, Suc -<br />

cessful inplerentrtion of the concept .odd require a different<br />

-<br />

approach than that ued by k<br />

take into considoration that:<br />

o to &to. The nsr approach nt<br />

'US~C: United States Trading Cowany ( a Fireatone subsidi-<br />

-


a) operational units perceived by Scandinavian nranagers<br />

of a large, high-technology, mining venture as suitable units<br />

to be spun off to local entrepreneurs were too large and too<br />

complex for the level of managerial skill locally available.<br />

h) the artificial mining concession community, which<br />

only a few year* before had been a traditional subsistence<br />

farsing area, suffered a chronic shortage of educated people<br />

<strong>with</strong> entrepreneurial amtivation and businesa experience.<br />

Ereqons <strong>with</strong> maagorial or technical skill potential had<br />

alreae been hired by kxo.<br />

C) .h.rkholders, however well educated and experienced,<br />

who did not invest rubstantial personal savings, or an aqui-<br />

valent in tiwe and effort devoted to the forsation and start-<br />

up of an enterprise, wen not sufficiently motivated to lis-<br />

ten to operating problem and extend their know-how to assist<br />

management.<br />

d) newly formed companies could not expect to produce<br />

goods and services competitive in quality and price to a<br />

depart~ent of u w which had been in the business for five<br />

years <strong>with</strong> skilled expatriate technicians and administrators.<br />

e) the hope that a spun-off enterprise would become<br />

rapidly independent ras unrealistic. In practice, the dominant<br />

role of hrco in conceiving the new enterprise, financing it.<br />

functioning as its sanagement consultant, and being the major<br />

customer created the opposite result, The spun-off company<br />

bocaem mre dependent than it had been as a department or<br />

roetion of LUUO.<br />

f) an7 -bet of hmco management, however detached and<br />

objective, was suspect in his role as advisor to spun-off<br />

anterprims. The entreprrneurs did not bow whether the advice<br />

received ras for their benefit or Lawo's. Therefore respanso<br />

to such advice and counsel was often nertive.<br />

g) in canes where a new spin-off enterprise took over<br />

f0rm.r L.+BCO enplofees. there was considerable resistance to<br />

tho spin-off on the part of these employees who had to give<br />

up Laeo seniority, fringe benefits, housing, and the security<br />

of working for tbe lar-r coqany.<br />

h) an unfortunate by-product of five years of prosperous<br />

minmg and conrtructlon uader the umbrella of a paternally<br />

-aged Swedish eoqany had bee to take away from local<br />

people auch of the initiative, self-reliance, and traditional<br />

ethicd standards fostered by their fomer nay of life.<br />

-


After one year of study and experimentation, the consultant<br />

recommended early in 1974 that a private agency <strong>with</strong> experience<br />

in advising and assisting African entrepreneurs should be<br />

invited by hmco to set up a headquarters in Yekepa. The agency<br />

selected should incorporate as a non-profit Liberian foundation<br />

in order to be eligible for international development financing.<br />

and it should take over numagemeat of the viable cornunity effort<br />

started by hmco. The consultant advised that the long-tern<br />

objective could not be achieved by spin-off alone, but tht a<br />

ride range of agricultural, comercial and industrial enterprises<br />

unrelated to irnn ore mining would be required to make the<br />

cormunity viable after the ore depleted. He agreed <strong>with</strong> hmco's<br />

humanitarian General bnager, Xr. Wijkstrom, that an intensive<br />

effort to foster the formation and start-up of these enterprises<br />

should be launched immediately.<br />

In oversimpIified form, the objective was to create enough<br />

enterprise in the following 20 years to employ 5,000 people<br />

and earn an aggregate sales income of 950,000,000 per year,<br />

thewby providing a tax base to support Yekepa. The tom had<br />

grown to be Liberia's second largest city and was offering its<br />

residents amenities and services which muld cost SS,OCO,OCO<br />

per year to sustain.<br />

A ~rivate aqencv is selected to manaee the cosmrunit~ viabilitv<br />

effort<br />

-.<br />

After an extensive observation trip throughout Africa and<br />

developing nations hosting concessions elsdere. L e o ma%%--<br />

nent agreed that the Partnership for Productivit? program in<br />

Kenya (a Quaker sponsored, dl-ecale enterprise develoPment<br />

agency)most closely approxhated the type of program envisioned<br />

for Yekepa. PFP was invited to establish a headquarters in<br />

the h c o concession area and to start immediately outlining a<br />

thne-year program and budget. PFP ras also asked to forecast<br />

potential funding from other sources so that the mining CorpMy<br />

participants could consider approval of an annual cant to<br />

finance the pmgan.<br />

A ororram for Yekeoa is orooosed -<br />

The program PFP/Liberia ptaaented to k o , the Gave-nt<br />

of Liberia (COL), and to private and public sources of develop-<br />

ment financing had nine principal elements and a uumber of<br />

related activities- Each element was projected for thm<br />

years <strong>with</strong> progress to be evaluated quarterly according to<br />

measurable criteria:


Propram Elements Measurable Propress Yo<br />

Be Achieved in 3 Years<br />

1. Assist enterprises already 6 viable enterprises<br />

spun off to Lamco<br />

2. Generate and assist<br />

additional spin-offs<br />

6 viable enterprises<br />

3. Start experimental new 6 sustainable enterprises<br />

enterprises and demonstrate<br />

their viability<br />

4. Turn over experimental<br />

enterprises to Liberian<br />

ownership and management<br />

6 enterprises<br />

5. Train managerial personnel 40 enterprise managers<br />

and assistant managers<br />

6. Create new employment<br />

7. Create and assist api-<br />

cultural enterprises<br />

desired by GOL<br />

240 skilled or semi-<br />

skilled jobs<br />

636,000 aggregate annual<br />

sales<br />

8. Create and assist new non- 6103,000 aggregate annual<br />

agricultural enterprises sales<br />

unrelated to iron mining<br />

9. Attract investment S700,OOO<br />

Other progam elements and objectives included:<br />

- coordinate P!T1s program in Yekepa <strong>with</strong> GOL's<br />

national development programs and <strong>with</strong> the<br />

other agencies therein involved.<br />

- respond to requests to participate in enter-<br />

prise assistance and business education pro-<br />

grams anywhere in Liberia to the extent of<br />

PFP's capacity to do so.<br />

- design a fully documented model for host gav-<br />

ernments, cnncessionaires, mlti-national and<br />

international ventures to follow in situations<br />

where they are negotiating agreements to ex-<br />

tract depletable resources and want to leave<br />

viable economic communities which can sustain<br />

themselves after the resource is depleted or<br />

abandoned.


PPP's first three-year budqet<br />

Prior to the fornetion of PFPfiiberia, staff and other<br />

costs to implement the .program were projected for three years<br />

in the light of experience to date assisting local enterprises.<br />

It was proposed that PFPfiiheria should start <strong>with</strong> a general<br />

manager rho wuld also be industrial advisor; an economist/commercial<br />

advisor, an accounting advisor, an agri-business<br />

advisor <strong>with</strong> two agricultural project supervisors, a<br />

craft advisor, a mechanical maintenance specialist, an office<br />

manager and tm clerical trainees. It ras estimated that a<br />

total of 5227,000 per year would be required in cash and subscdized<br />

services to support this staff and promam. Efforts<br />

commenced imaediately to obtain cnwitments . for the funding<br />

.<br />

and support. . .<br />

An intensively summarized version of the annual budget<br />

projected at the time lollors:<br />

staff salaries & rages<br />

(1 gen. mgr., 8 staff, 2 employers)<br />

staff support (rent, utilities, medical,<br />

insurance, travel , etc.)<br />

vehicle operation and maintenance<br />

subsidized services (to be provided by<br />

Laarc0<br />

project iaputs (nachiner?, equipment,<br />

supplies)<br />

office operation- (rent, printinq, postage,<br />

etc.)<br />

capital expenditures<br />

(housing, vehi den. equipment)<br />

overseas ahinistration<br />

Total<br />

Apolyinr for funds to suoolentnt ksco auooort<br />

&cause of the intense international intercst in appro-<br />

aches to avoiding the mining "ghast tom" syndroe, several<br />

sources of developlent financing re-nded nth interest to<br />

requests for fuading the Yckepa program. These sources re-<br />

quested a sore detailed pmsram.<br />

Wost internatioaal and funding sources are accustomed<br />

to providing gsllts for programs dealing <strong>with</strong> the ereation<br />

and ataffing of educational and training institutions or<br />

<strong>with</strong> infrastructnrs projects involving construction of mads,<br />

bridges and buildings. They require the irplclmting agen-<br />

cies to project progre~4s in very specific detail. quarter by<br />

quarter, and they expect progress reperts and expenditure<br />

accountr to ralfect that the original program is being im-<br />

plarentcd precisely as projected.


These agencies found it difficult to accept that enter-<br />

prise development cannot be projected in the same way.For exam-<br />

pld, it might be high on PFP/Liberials priority list to get a<br />

poultry farm started because of the coa=nunity demand for chick-<br />

ens and eggs, while a bread bakery sight be included but have<br />

a lower priority because wheat flour must be imported. In im-<br />

plementation, however, the Liberian wading to start the bakery<br />

may raise the initial capital faster than the aspiring poultry<br />

fanner. Therefore, a second priority project gets implemepted<br />

ahead of a first. priority project. X.evertheless, PFP detailed<br />

its three year program by forecasting not only what enterprises<br />

would be promoted, 'started and assisted, but also when each one<br />

would be started, how much capital wouldbe invested, how many<br />

persons it would employ, ,,what its sales volume would be each<br />

quarter and how rapidly it would goa in numbers of employees<br />

and sales volume. In the context of a om-company town in rur-<br />

a1 Africa which had only five Liberian-owned enterprises, this<br />

type of a three year projection necessarily involved a consid-<br />

erable amount of guessing.<br />

Another deeply entrenched concept of the potential donor<br />

agencies was that all development programs should be institu-<br />

tionalized; that is, folded into some branch of the host coun-<br />

try povernment, at the end of three years and .no Ion-r requi-<br />

re outside financing and expertise. While the consultant enga-<br />

ged by Lamco believed that the Yekepa program would require ex-<br />

ternal financing and some foreign expertise for at least 12<br />

years, it was necessary to project that institutionalization<br />

could be achieved in 3 years in order to satisfy the donor a-<br />

gencies and attract the funding. required to start the program.<br />

There was sufficient poaitive response from interested*<br />

rpncies to justify going ahead <strong>with</strong> the establishment ofa head-<br />

quarters in Yekepa and start rvcruiting for the projected pro-<br />

gr-•<br />

First three Year funding<br />

PFP/Lfberia, during its first three years of operation,<br />

was financed principally by equal grants of S 50,000 - per year<br />

frost three donors: the hmco dning company, PACT" ( an asso-<br />

4<br />

ciation of private development agencies receiving USAID support<br />

) and KFUT-KNH ( an associaSion o? Swedish YZ(Cls and<br />

YKUs rtceivmg support from SIM ) .<br />

Additional support 'was made available to PFP / Liberia.<br />

During the period of 16 mntb consultation to design and<br />

test a program, and tbrou@out its operation to date, L a o<br />

has paid for both initial consultation and for a full-tirc<br />

3~~~~ : Private Agonciss Callahorating Togethn, H.Y. ,USA<br />

*USAID: United States Agenef for International Development<br />

Washington, D.C., USA<br />

5<br />

-


general manager for PFPfiiberia. Lama also rade a lorn to<br />

PFP / Liberia of 5100,000, interest free for 10 years to be<br />

administered as a sslall-scale enterprise development " seed<br />

capital " loan fund.<br />

The parent foundation of PFP / Liberia, PPPDSA? pro-<br />

vides services which include technical infornation research,<br />

staff recruiting, purchasing of equipaent,insurance and tra-<br />

vel arrangements, and IiaJson <strong>with</strong> donor agencies. Similar<br />

services are provided in Sweden by KNIC-KFL'H and Gran-s<br />

International Mining (GIX). Lamco's parent corpaty..<br />

At the beginning of the third year .of operation, the<br />

Government of Liberia, as a 50% participant in Lamco,pled-<br />

ged an input of 325,000.in agicultml equipwnt.too1a and<br />

supplies to be administered by PFP as a revolving "in kind"'<br />

credit to mall farmers mplenided each year from farmera'<br />

repayments. This credit is isaued to faraers as viable pro-<br />

jects and needs apse. The actual input cons, rith GOL ap-<br />

proval, from LP?C .<br />

hslco provides a substantial input of non-monetary nrp-<br />

port to PFP in the form of staff housing, utilities, use of<br />

heavy earth-.roving equipment, technical advice repair and<br />

maintenance services and asaignaent of obsolete and scrapped<br />

vehicles and materials to PFP and PFP-aaaisted enterprises.<br />

In order to help the reader get m overview of PFP/Li-<br />

beria's funding and support during the initial planning pha-<br />

se and the first thr+c years of operation, these have been<br />

tabulated on the ne%t page ( urh value of " in kind " con-<br />

tributions is estimated ):<br />

PF'P~sA : Partnership for Productivit~ Paundation/USA,<br />

fadington, -<br />

D .C .<br />

'" kindn:- Equiplaot. tools.or supplies in lieu of money<br />

w : Liberian ~raduct meting firparation.<br />

a parutrtrl corporation controlling the<br />

production md ule of saluted staple and rrporc crops.


C<br />

UI<br />

Initial Plannina Plrnee<br />

(Feb. '73 - June '74)<br />

Planning, experimentation,<br />

formation lcgielation,<br />

program deeign<br />

Totals<br />

Firat 3 rrs. of Operation<br />

7 ~ '74 ~ - June 1 ~ '77)<br />

Caah grants tor program<br />

implementatio4<br />

Program general manager<br />

Subeidised aervicee (estimated<br />

I value)<br />

Overseas service8 (admin.,<br />

racn~lldng, etc.)<br />

Totals<br />

IBAN FUND AND REVOLVING<br />

"IN-K IND', CREDIT<br />

Small-acale enterprise "eeed<br />

capital loan fan4 (loaned to<br />

PFP for 10 yra. intereat free)<br />

Revolving smell farmer credit<br />

(in-kind) LPHC inputs (replanishable<br />

annually from<br />

repayuents)<br />

Totala<br />

GUN0 TOTALS (ALL INPUTS)<br />

I.enlco -<br />

U S A IJOLLARS<br />

PACT KFUK-KFUM -<br />

GOL Totale


PFPfiiberia was created in mid 1974 by the Legislature<br />

and Resident of Liberia. Its chartered purpose is to realize<br />

the development opportunity created by the bmco iron ore<br />

mining venture in Nimba County and to foster the develop-<br />

ment of economic activity which will surrive after the ore<br />

is depleted.<br />

Priorities are determined<br />

The program PFYbiberia undertook ta implement in 1974<br />

had been designed according to standard development procedure.<br />

The locale's natural resources had been assessed, the market<br />

demand for goods and services had been estimated, and related<br />

opportunities for private and cooperative enterprises<br />

identified along <strong>with</strong> the entrepreneurial &ill development<br />

and capital needs to start them. Opportunitxes for locally<br />

produced import substitutes were especially sttxsctive because<br />

of the steady purchasing power of the mining cowunity's<br />

2,000 salary and wage earners.<br />

Therefore it ras possible for PFP to agree on a list of<br />

enterprises which would be given first priority in allocation<br />

of assistance resources because these:<br />

- used local raw materials<br />

- produced needed products and services or import<br />

substitutes<br />

- were well suited to available local land and building<br />

sites<br />

- were labor, rather than capital, intensive<br />

- did not require unobtainable technical and managerial<br />

skills<br />

- could survive after depletion of the iron ore<br />

- and had reasonable chance of success<br />

PFP adopts a develobment stratem<br />

The strategy adopted by PFP to foster the development of<br />

independent enterprises could generally be described as respon-<br />

sive and motivatianal. As one Board member of PFP/USA<br />

recommended, "PFP should encourage and help development to take<br />

place." Early experinentation indicated that it was very<br />

difficult, and sometimes not possible, for PFP to start an<br />

enterprise, Planage it, and then spin it off successfully to


Libeiiaa management. The staff aged, therefore, that PFP<br />

should publicize its presence. its independence from k o ,<br />

the services it offered, criteria for allocating resources,<br />

and try to attract coaiuunity residents rho had entrepreneurial<br />

ideas and ambitions. A brochure was published. PFP w as given<br />

radio time, and staff members joined organizations and commit-<br />

tees concerned rith comnnrnity affairs in order to publicize<br />

and explain PFP.<br />

During this period of publicizing PFP, staff members<br />

were busy attempting to restructure the ailing spin-off en-<br />

terprises, sjstes!atizing FFP's internal operatins procedures<br />

and coordinating PFP activities rith the mrk of other agen-<br />

cies. Despite establishment of a beadquarten removed from the<br />

aura of kmco's main office, it was six months before poten-<br />

tial entrepreneurs began visiting PF'P's'office and accepting<br />

the results of its feasibility studies and advice rithout the<br />

suspicion that PFP raa Laaco directed.<br />

The first war uros~am is projected . . - . - . -<br />

In the detailed projections prepmd for donors, enter-<br />

prises to be strmgthened, advised or started and assisted,<br />

were listed. Other PFP activities were also specified.Brief1y.<br />

the first year program included:<br />

1, Uberian owned and -gad entesprises to be streagt&tned:<br />

hnitco, a transportation corpany providing<br />

personnel bus tnrnsprt of mrkers, school<br />

children and residents; garbage collection<br />

service; r dririag school; and automtive<br />

repair serricss.<br />

-<br />

m,<br />

a building construetion and m8.l estate<br />

management compaoy building homes on contract<br />

md a printe hewing coiplu ou spaculation.<br />

National Taodw~b, a furniture nnufacturing<br />

.hop also producing millmrka, such as door<br />

frames, dndowa. mindor f-8, etc. on contract<br />

*<br />

2. NU .pin-ofr enterprises to be started:<br />

& electrical contractor for houw riring and<br />

nintenancs.<br />

A mwdllinr em- to take over -'s fa-<br />

cilities, .upply the railroad cron-ties and<br />

con8truction. lumber' needed bT Larco, and in-<br />

vest in expaasion of the facilities for addi-<br />

tional production to seme both domestic and<br />

export anrkets.


3. Temporarily closed-down Liberian enterprises to be re-<br />

activated:<br />

Amble's Inn, a hotel/restaurant catering to visi-<br />

tors not ranting or unable to obtain accoasaodation<br />

at the Lama Guest House; the Inn had closed dom<br />

for lack of operating capital.<br />

Buff Bake-, a small scale, but well equipped,brtad<br />

and roll bakery which had closed down beaause the<br />

absentee orners had been unable to engage reliable<br />

and competent management.<br />

4. Eaterprises proposed by Liberian sponsors to be aasis-<br />

ted in start up:<br />

Olma 77, a diner/catering service to be installed<br />

in an obsolete railbus car at the Yekepa railbus<br />

station.<br />

Ajavon Poultry Farm, to be located 6 miles from<br />

Yekepa on 10 acres of leased land and produce<br />

broilers, eggs and stewing chickens.<br />

A handcraft workshop and retail sales outlet to be<br />

Dart of Yskeoa YMCA: this oneration would train 80-<br />

;en in silk-bcrsen cloth printing, dresaaaking,and<br />

retail store management and earn some amall income<br />

for the YMCA to use in its mcreationa1,education-<br />

a1 and youth training divisions.<br />

3. Enterprises to be started by PFT and turned over to Li-<br />

berian omership and management-when proven viable and<br />

when potential managerial personnel could be adequately<br />

trained :<br />

An irrirated rice, nixed reretable and tree farm,<br />

eventually to be turned over to the f~ wrkers<br />

as a cooperatire.<br />

A co- it^ credit union<br />

6. Projects to be atar.ied and -ged by PFP:<br />

Evenine courses for business managers, account-<br />

ants and contractors.<br />

A revolvine loan fund for Ugh-risk, non-bmkable<br />

loans to viable enterprinsa rbose applicat<br />

i o could ~ obtain the unanimus approval of an<br />

objactive loan corittee dth minorit7 PFP representat<br />

ior.<br />

7. Other activities to be undertaken br PFP:<br />

Create a local mvernine council including Liberian<br />

government officials, local bubinesam~en,<br />

Lunco naaagerial and technical personnel and<br />

a~bers representing donor agencies in order to<br />

provide for guidance in detemining policies,<br />

priorities and implementation strategy.<br />

19


Establish close liaison rith the universities, research centers,<br />

and development agencies in Liberia.<br />

Resoond to requests for short-tern business consultation from<br />

enterprises located elsewhere in Liberia deemed important in the<br />

country's over-all development objectives; current requests rere<br />

from private groups proposing tourism development in Robertaport,<br />

a petroleum bulk storage and distribution corporation, a transport<br />

company, and a food processing enterprise.<br />

BEST AVAILABLE COPY


THE FIRST Y UR<br />

Cooinn <strong>with</strong> unforseen public relations problems<br />

As PFP started to implement its first year program, staff<br />

members and vehicles were in evidence throughout the conmunity<br />

and especially at private enterprise business sites. Hindsight<br />

revealed that PFP had neglected to explain its purpoae and<br />

operating plan adequately to local officials representing<br />

various Ministries and Departments of the Liberian Government.<br />

Consequently there was some misunderstanding among local<br />

officials as to what PFP personnel should be permittbd to do.<br />

Overseas staff had work permits authorizing them to work for<br />

PfP as business or agricultural advisors. When local iiwiigra-<br />

tion officials met a PFP staff member advising, for example,<br />

the Liberian owned transport coaparny (Momitto), these officials<br />

assumed that the staff member was violating the terns of his<br />

mrk permit by engaging in work for Honitco instead of PFP.<br />

With commendable law enforcement zeal, the officials<br />

frequently arrested PFP overseas advisors and held them until<br />

a trusted Liberian member of Lamco's personnel department had<br />

time to explain the PFP role to local authorities.<br />

Occasionally an aspiring entrepreneur, whose business<br />

proposition was not given high priority by PFT, believed that<br />

the PFP staff were <strong>with</strong>holding Liberian Government funds and<br />

aaaistance to which he was entitled by law. Sow PPP projects<br />

were sitd on concession land which a Liberian famer claimed<br />

that he planned to uae. Several entrepreneurs who presented<br />

thcpsclvea to PBP as Liberian citizens, and received advisory<br />

assistance, turned out to be citizens of neighboring countries<br />

and thereby caused trouble <strong>with</strong> local autharities far themselves<br />

and PFP.<br />

On one occasion a PFP staff member was arrested by armed<br />

police who ordered him off the tennis court in the middle of<br />

a tense Lamco/Firestone tournament. Taken to the local police<br />

atation, he mked the magistrate to specify the charge.<br />

"You hare a worker at the rice fam, )(r. Samuel Pay, who<br />

owes his landla* $7.501"<br />

It was essiential for FTP staff membera to refrain fma<br />

allowing these probless to instill in them attitudes of fear,<br />

hostility, and the t7pe of reaction which manifests itself as<br />

"OK, if it's going to be like this, 1'11 just stay in the office."<br />

This was accaapliehed in staff meetings where a senae of humor<br />

war encouraged and in meetings <strong>with</strong><br />

and GOL officials<br />

rherrin high level support of the P?'P/Yekcpa Rperiaant was<br />

reaffirmed.<br />

-<br />

-


Strenqthenine existinq s~in-off enternrises<br />

Assisting existing bmco spin-off enterprises which were<br />

in trouble did not prove to be easy.<br />

The transoort camanv (Xonitco) had urgent cash-flow problems<br />

which made it necessary for the PFP advisor to function<br />

initially as an intermediary between hnitco and hmco. He<br />

recommended that advance payments be made on the transportation<br />

contract so that hnitco would meet its payroll and PFP could<br />

gain some time to analyze Honitco's accounts, produce statements,<br />

and make recommendations concerning contract renegotiation<br />

based on reliable past information and reasonably accurate<br />

financial projections.<br />

. .<br />

-<br />

The advisor's recatmendations were carried out thereby -<br />

helping PFP to gain the- confidence and cooperation of Honitco's<br />

General.Xenager in the arduous task of producing statcwnts<br />

and pmjectiona. This took so long that it ras necessary for<br />

Xonitco and hmco to agree on an interim contract and papsent<br />

schedule to be adjusted later when better cost information<br />

could be developed.


Elonitco's Problems all stemmed from the company being too<br />

large and too complex for the managerial personnel to cope nth.<br />

Monltco had 117 employees; a leased fleet of vehrcles to operate<br />

and maintain valued at 5300,000; and a transport contract <strong>with</strong><br />

Lamco totalling 5250,000 annually. The workshop had able mechanics<br />

but was disorganized and out of control. The ~ob card system<br />

of keeping track of specific job costs was not functionrng. Although<br />

records were incomplete, there was enough indication that<br />

maintenance costs on the fleet of Volvo buses were so far out of<br />

line that it would be more economical for Honitco to contract<br />

<strong>with</strong> Lamco for aaintenance and repair of these vehicles. Monitco<br />

had no spare capital to invest in replacement parts, so it was<br />

agreed that hmco should maintain a stock of spares and bill k-<br />

nitco cost plus transportation for parts used.<br />

-


SERVICING A MRILZE AT THE MONlXO GARAGE


Xational Woodworks Inc. (.WI) had been foraed by a group<br />

of five Liberians, none of whom could work in the enterprise.<br />

because they were fully employed elsewhere. hmco jave WI a<br />

workshop equipped vith obsolete woodworking machinery which<br />

had been fully depreciated. The prevailing lack of apprecia-<br />

tion concerning the need tor management was illustrated by the<br />

fact that the shareholders hired a young carpenter for .me per<br />

hour and expected him to function successfully as shop manapr.<br />

The sales volume, which the PFP advisor estimated should<br />

average $6,000 per month, was averasins 5300. Inventories<br />

of lumber and hardwars were reducing <strong>with</strong>out corresponding<br />

sal e.i income. Employees were nrnking furniture to order for<br />

customers; but no documentation of such orders, price quota-<br />

tions, or invoicing existed. Three quarters of the shop<br />

machinery was dam needing repair. There ras no maintenance<br />

promam. The corporation had obtained a 510.000 credit from a<br />

bank on two shar'eholder's personal rarantees. This debt had<br />

increased to almost $15,000 including accrued interest and late<br />

payment penalties.<br />

Recognizing :WI'$ need for full -time, competent manage-<br />

ment PFP advised the omers to hire a manager <strong>with</strong> engineering<br />

and machinery maintenance know-how as re11 as business adminis-<br />

tration experience and assisted in locating a candidate. In order<br />

to pay his and provide funds for zeneral shop renovation, PFP<br />

loaned 515,000 to M I but retained the right in the loan a.Fee-<br />

sent to co-sign all disbursements <strong>with</strong> the manager.<br />

-


PW's experience <strong>with</strong> Nimba Realty and Construction<br />

Conmany (NRCC) did not have such a favorable outcome. NRCC's<br />

management was less willing to share information <strong>with</strong> the<br />

PFP advisor and tended to regard his role solely as intermediary<br />

between YRCC and bmco. The advisor was put into a<br />

posltion where he could nezther advise XRCC nor make recomendations<br />

to bmco because he had so little reliable informatzoo of<br />

NRCC's costs and current financial position. All he could do<br />

was to assist NRCC develop cost estunates for new contract<br />

bids and try to prepare a balance sheet of NRCC's assets and<br />

liabilities as of the specific date these were physically<br />

- inventoried and valued. The balance sheet indicated that<br />

NRCC'a obligations exceeded its assets by an amount which<br />

rendered all hope of eventual solvencv unrealistic. The consultant<br />

was forced to recommend that the company discontinue<br />

operation of its construction divzsion and stay in business<br />

only as owner of its real estate d~vision's ten private houses.<br />

The bank which advanced the money for construction of the houses<br />

threatened to foreclose. The PFP consultant proposed that the<br />

bank refrain from foreclosing if NRCC would direct all tenants<br />

to pay rent directly to the bank. He prepared a projection<br />

indicating that the bank would be fully repaid in 8 years.<br />

This arrangement was accepted by the bank.<br />

Lamco felt partly responsible for the demise of NRCC and<br />

paid the obligations necessary to avert bankruptcy as the<br />

company wound down and sold its assets. The hi& cost of this<br />

course of action had to be written atf to experience. The<br />

XRCC exercise was another lesson to Lamco and PPP underlining<br />

the hazards of spinning off services which required too large<br />

and complex an enterprise to provide.<br />

The NRCC experience also revealed that certain operations<br />

are not appropriate for spin-off. In the Yekepa environment<br />

housing construction tends to he intensively concentrated in<br />

the four lonths of d q season. A multi-depsrtsent organization<br />

like Lamco can transfer mtkera from house construction to<br />

maintenance and other activities hen building is slack. But<br />

an enterprise set up to do housing construction only cannot<br />

prosper when its volume of business varies fmn S42,OCO one<br />

month down to $2,000 the next. 15is is especially true if<br />

the spin-off contractor has been asked by his major customer<br />

to hire and train a permanent staff of akilled supervisors so<br />

that the quality of his work rill meet the high standards<br />

requid by the custoaer. The cantractor then Us to cam a<br />

heavy overhead coat during wntho when available mrk is almost<br />

nil. The cycle is vicious bocauna the contractor then tends<br />

' to bid too low on what work is available in order to t v and<br />

keep his staff occupied.<br />

After the fact, hnco and PFP awed that spin-off should<br />

.tar+ <strong>with</strong> craation of uch sraller enterprises in cases where<br />

nonagarid akills were untested md large amaunts of operating<br />

capital rere needed to survive seasonal dips in incoae.<br />

Pb<br />

23.<br />

-


At the end of P?'PFp's first program year, NsI machinew had<br />

been repaired, accrued interest on the bad loan paid, sales<br />

volume and operating profit were increasing rapidly, a mason-<br />

able inventory of dried ltmber ras on hand, employees had in-<br />

creased from 5 to 15, and a Liberian vocational Training Cen-<br />

ter graduate in woodworking was underguing intensive on-the-<br />

job shop and business management training. WI'a total in-<br />

debtedness, however, had increased to $24,000.<br />

Startine new soin-of f enterprises<br />

In the light of lessons learned advising exiating spin-off<br />

enterprises, PPP and Lamco proceeded cautiously to consider two<br />

additional spin-off propositions.<br />

One Lamco electrician, DonaldJones, had proven to his<br />

supervisors that he had the mtivation, technical ability, and<br />

nupervisor). skills required to operate a small electrical con-<br />

tracting business for installation, maintenance, and repair of<br />

house wiring. A carefully detailed feasibility study made by<br />

Jones and Wf' indicated that the contractor could perfom these<br />

services at a cost slightly under Lamco's cost and make a rea-<br />

sonable profit in the process.<br />

Jones and PFP had to estimate<br />

Lamco's costs by time study at work<br />

sites and convince Laaco that its<br />

om electrical raiatenance de-<br />

partment costs Were higher than<br />

Lasco had realized. In one<br />

instance Jones ras able to<br />

take the LPleo section head<br />

to obserre a job in process<br />

and prove to hi= that Lamco<br />

had coated a job at 5 man<br />

'hours which, in fact, should<br />

have been coated at 12 man<br />

hours.<br />

It took sore tin to get<br />

the contracting compa~*., Jelca<br />

(Jones Electricd ~antractorf aet<br />

up, registerad, licsnsod, ad' capitalized.<br />

Of the initial S8.000 investment<br />

in vehicles, tools, ahd radio<br />

equipment. nacesaary for rapid r8sFaM<br />

to potentiall~ dangerous faults, Jones<br />

put up $S,W of his por.oaal u v b g<br />

md Luco advanced bir $3,000 in<br />

used vehicles and carmnieation.<br />

equiplent to be repaid<br />

over one j.ee by<br />

mntbly doduct ion8<br />

from. his. first lain -<br />

telliilce contract<br />

-


In b.eoring an independent entreprrnenr Jones had to give up<br />

the security and fringe benefits he enjoyed as a Laao employee. As<br />

a contkctor he had to pay house rent and utility charges; con-<br />

traator's license and company rrgistration fees; duty and excise<br />

taxes when purchasing tools, vehicles, gasoline and oil; austeritr<br />

taxes had to be deducted from esployee wages and paid to GDL aa<br />

well as mrkmen's compensation and incone taxes. Be had to register,<br />

license, and insure hid om vehicles, obtain general liability in-<br />

surance, and set up a bookkeeping system which would produce records<br />

for hir om use as well as the satisfaction of internal revenue<br />

collectors.<br />

A11 such expenses had been forrseen and included in the feasibility<br />

study wbicb became the basis for the first sainte~ance contract.<br />

At the end of PFT"s firat prowam year. Jelco was operatins<br />

successfulIy <strong>with</strong> Donald Jones, a foresmn. S employees and 2 vehiclea.<br />

Lamco had agreed to award Jelco a contract to maintain one<br />

ares (255 houses) and to replace an obnolete fuse qstem <strong>with</strong> a<br />

circuit breeker qstera in another area (180 houses). Jelco. <strong>with</strong><br />

PFP assistance, was able to reverse a procedure of long standing<br />

by writing its om contract and price quotation instead of relying<br />

on h c o to prepare the contract and determine the price.<br />

hmco had written a letter of uaderatanding that Jelco would be<br />

given more areas to maintain if perfo-cc of the firat contract<br />

proved satisfactorg.<br />

Thia size spin-off, executed after comprahensive and detailed<br />

feasibility study, and <strong>with</strong> assurance of the entreuraneur'a interest<br />

as evidenced by his willingnese to risk capital and asuuae personal<br />

responsibility for aansgernt, appeared to have promise of success.<br />

PFP and Lmco felt that Jeleo vindicated the spin-off concept and<br />

focused attention on the factors iaolved in selecting and irpltaent-<br />

ing succesdul spin-offs.<br />

A second n u soin-off propond tossed in FW's lap for study<br />

and recornendation ran quite differant from any contesplated or ex-<br />

ecuted so far. A Liberian-Italian-Sltdi.h Conaortiva proposed to<br />

purchase or lease hmco's sarrill, take over Lueo's forest coacts-<br />

#ion area. and enter into a contract to aupply the railroad croas-<br />

ties and construction lumber h.lco required.<br />

The f*asihility study and sgrascnt preparation uudertliren was<br />

extensive and inro1t.d the PfP general asnager's full time for three<br />

onths plus a considerable portion of PPP's office staff and other<br />

resources. A corplete set of financial projections were prepared and<br />

the resorutas of the conmrtiur camfully ebceked out- The conclusion<br />

rss that the spin-off could supply bco. pay for the fscilitiea according<br />

to a leaa~porchasu achadule, proher enou* timber for ex- -<br />

port and other ets. and r& profit; provided the new omera<br />

war0 willing to uke mpr long-term inr*strcntr in lor0 modern pro-<br />

duction uchin*q.<br />

-


Lamco's overriding concern was that the new company must be<br />

forced by agreement to supply the railroad cross-ties (67,000 per<br />

gear) and the construction lumber (50,000 board feet per month)<br />

which were vital to mining and ore transportation operations.<br />

There was fear that the new company operating the sawmill might<br />

find it more profitable to concentrate on extracting and export-<br />

ing the exotic species (i.e. mahogany, teak, African walnut, etc.)<br />

and thereby be encouraged to neglect Lamco needs, especially for<br />

the secondary croaa-tie species. If this should happen, Lamco<br />

might be left <strong>with</strong> insufficient lumber to maintain its railroad<br />

and build houses, and also <strong>with</strong> forest concessions which had been<br />

atripped of valtrable privrry species.<br />

At the end of PFP's first program gear the Liberian-Italian-<br />

Swedish consortium had incorporated under the name Nimba Corpora-<br />

tion (Nimbaco) and signed lease purchase and supply agreements<br />

<strong>with</strong> Lamco which yaranterd that Nimhaco would eventually om the<br />

sawmill and that Lamco's needs would be given first priority. Ha-<br />

chinery and equipment for Nimbaco'a modernization program had been<br />

purchased and was en route to Liberia.


Reactivatine teamoraril~ closed dom Liberian enterprises<br />

Humble's Inn, a 6 mom hotel, restaurant and bar, was built<br />

and owned by a Liberian couple, Mr. and Mrs. Joaeph Collins. Iha.<br />

Collins was an employee at the Laaco post office and Joe ran a<br />

farm in Tappeta, a five hour drive from Yekepa.<br />

A11 the capitaa Joseph 61lina had available h d been spent<br />

on constructing the Inn and purchaing a vehicle for his personal<br />

transportation betreen Tappeta and Yekepa. He and his rife tried<br />

to run the Ian in their spare ti-. When neither could be at the<br />

Inn, they left a young and inexperienced assistant unapr in charge.<br />

Ikployees included a cook, a bartender and a waiter who alw cleaaed<br />

rooms and waded clothes for room guests,<br />

Stocka of food and beverages were chmnicalIy depleted. Neither<br />

the assistant manager nor the cook had authority tr, purchase. Ser-<br />

vices at the Inn deteriorated. %oms and bedding ware not kept clean<br />

and only one or tm itema on an extenaive printed nenu were available<br />

for restaurant patrons. Incoae fall far belor the break-wen point.<br />

Pinally in August 1973 the Collino closed the Inn and started looking<br />

for soatone to lease and aanae it.<br />

Then PW ras approached, an investigation into the Inn'. feasibil-<br />

ity indicated that there was a grnwing deaand for hotel accowdation<br />

and that the commnity would patronize any reeaurant or bar giving<br />

reasonable value, good service, and providing an ataosphere in which<br />

customers felt as if they were not in a company-run facility. In a<br />

"one coapany" torn like Yekepa, rasidents occasionally feel an urgent<br />

need to be in a place dich is not sanaged by "big brother Lamco."<br />

During the second quarter of its first operational year, PFP deci-<br />

ded to lease the Ian from its omars for two years, improve facilities<br />

and train a Liberian manager and staff to operate it. Thr plan raa that<br />

when P'FP's leese expired, the trained uraaer would leaae it directly<br />

from the owners and both muld thereby profit.<br />

In Norearber 1974 the islproved Inn was opened to the public. h e<br />

PFP staff rife <strong>with</strong> hotel management experience superrised the Ian as<br />

a volunteer and eadravored to traia the Liberian scleeted to become<br />

-<br />

manager and the personnel he muld employ. Became the Inn suffered<br />

chronic losses via theft and unauthorized e d i t in Late eve-<br />

rs, and because of the long businesr da7 (6:m<br />

a.m. tbugfi 1:00 a.m.), HP staff funetion-<br />

ed u duty officera on s mtation<br />

basis to maintain constant<br />

supervision over<br />

sales collection, -<br />

room bookiw, Md<br />

cash control. As of<br />

February 1975, when<br />

the fourth and wat<br />

proaiaing Liberian<br />

manager- Fo-training<br />

wa. being tried, the<br />

35<br />

-


Inn began to develop ateady patronage and show r reawnrblr antSly<br />

net profit. Still,- inordinate -wit of staff superririoa m a m-<br />

quid to protect PPP's interests and rrLe car+aia tlnt Liberian<br />

laws and public health regulations were obeyed.<br />

Probably as a result of the high visibility of PTP staff at the<br />

Inn at all times, local imigration and labar officials det--<br />

ed that Liberianization ran progesaing to6 dorly. Under threat of<br />

heavy fines or possible expulsion from Liberia, FTP was directed to<br />

achieve 100% Liberianization by April 20. 1975, after rhich date no<br />

PFP staff member atrould enter the Inn's premises except as a cus-<br />

tomer.<br />

On the Sunday night following FFP's colpliance rith the diraeti-<br />

ve to <strong>with</strong>drar,the Inn arffered a devastating loss; $5,400 cash ( 3<br />

&ys'reeeipta)and inventov valued at approxlmtely f2,000ngot ds-<br />

sing". WP Mdistely closed the Inn pending development of r dif-<br />

ferent mlntion for its future operation.<br />

Buff Bake-, locrted in Tekepa'a waunity abppiygcanter, n8<br />

omed by r Liberian mlan <strong>with</strong> aabatantial catering br-hor and<br />

experience rho ru fully employed in ham-<br />

via. Ber efforts to operate the bake- in


and shipment for flour, yeast and other supplies. In addition,<br />

electrical and mechanical repairs rere needed for the equipment.<br />

During its first year of operation, m's seed capital loan<br />

fund, though proaiaed, was not yet in operation. Therefore in<br />

Noveaber, 1974, PFP made a loan of $900 to Buff &ker~ fme<br />

program funds to pay for equipment repair and start-up costs.<br />

As part of the agreement, PFP was included aa a sigmatov as<br />

all disburaeaents fmm ELff Bakesy'a account. In order to get<br />

hreo to continue supplying electricity, water and other sewices<br />

for which papent8 rere in arrears, PPP guaranteed that<br />

Buff Bakesy muid pay all cussent invoices in JO darn and repay<br />

aa accusulated $2,- in past-due invoicas at a rate no<br />

slower than $123 per month.<br />

As of June, 1975 the bakesy was operating profitabfy. Sden<br />

rcrc averaging 33,000 per month and operating profit f8M). Ey<br />

agseement rith the omer this ras disbursed as follows: SJ00<br />

to seduce the past-due obligation to tmco;$100 to cover PFP'a<br />

consultation costa; $200 into a separate bank account for e-<br />

quipment replacement and possible overreas training for the<br />

chief baker; and $200 to the omer as net profit.


*sistini enternrises mwaed by Liberians to start uE<br />

An PFP's fnnctiom be- better understood,in Yckepa, ian~local<br />

residents cue to the office requesting assistance to<br />

start enterprises. Ropositions ranged from sound, realistic<br />

business iders to .a- rhic5 ram totally ispractical. P P P's<br />

polic~ was to listen to a11 propositions and endeavor to give<br />

advice andfor encouragement rhero direct assistance rae not<br />

possible. Three enterprise propods wre selected for intensive<br />

PFP start-up involrmnt.<br />

The chid dieticius at the Lamen<br />

5u.pit.l wanted to start .:diner st<br />

the rail station to- some people<br />

dting for the railbus or uriving<br />

too late for dinner else -<br />

.here. She planned to uae her<br />

well&om food preparation<br />

skill to cater for parties<br />

and business gatheringa in-.<br />

corporating a real serriee.<br />

She had proposed to name<br />

the diner O W after Ollt<br />

and .%riame Vijkstrom, the<br />

kaco Gcneral Uanager and<br />

his rife: This helped her<br />

to persuade haeo to mve a<br />

scrapped rail passenger car<br />

to the proposed sit* and<br />

aet it oa tm lengths of<br />

tra+ At the dedication<br />

cer&vq the year folloring,<br />

Hr. Tijk.tro.oi affirrrd hi8<br />

pie- in swing the enterprise<br />

undemy. He dd. that running a<br />

re8t-t had beon a dream of the<br />

owner sir yeam and that Lho<br />

had minded hi^ of this drear almat<br />

ever7 therufter.<br />

A projection by PIP'S oeonorist<br />

indieatad ihdi $7,500 wold be noedad<br />

to refurbish ihd quip the railcar u a<br />

mstammt md to finaneo the operating<br />

costs until thew wauld ha covered bJ.<br />

sales incrne. She had 35,000 of pezwd<br />

rings to invest,.<br />

As of the close of the first program -<br />

year, acontractor ru completeing the complex<br />

refurbishing job under 7FP mperviaion md a - z. p.iuslm m0.w us0<br />

credit of $2,500 to the proprietor fmm P1P funds<br />

P I M P ~ R OF OW<br />

had beefr_aqErorod, PL


Another h r o employee had selected a site six milee from Yekapa<br />

for a proposed poultrj. fa-. Both he and Us rife had prerious<br />

experience raising chickens under the ~ ~li. Ajaroa Farm and .<br />

ranted to rue the same m e and benefit from their paat reputation<br />

for supplying qurlity chickena and eggm at reuonsble prices.<br />

Vhen PPP decided in faror of rasisting this project, an eight<br />

jeu lease n m negotiatad <strong>with</strong> the site omer do agreed to lease<br />

the lmd to PFP md allow PF'P to mblet to Ajavon Frrr, but muld<br />

not agree to lease directly to Ajavon Farm. While it waa not en-<br />

erallj considered wine for PPF to enter into long term lmd leaso<br />

agrtoments, the coat -ring to Ajnron Para Fo wing a nite rith<br />

.ars already construetad buildingn and lrnd irprormots seemed<br />

mrth the risk to PHP.<br />

The project omcrm had $4,000 to inreat of a total estinted<br />

capital required of $13,000. PFP entered into an agreerant where-<br />

Afamn Fur could finance purchases approred by PFP up to s t e<br />

tal cradit of 19,M)O. hcawe it ras ecoaolic to iaport --old<br />

chi* in quantities of 1,500 or mere, Ajaron Fsrr needed operat-<br />

ing capital for 8 weaka to pa^ for feed, medication and cue he-<br />

fora the chickens reached the ainimm saleable size of one kilo-<br />

gu 42.3 lbs.) pluckad and dressed.<br />

L the fann got mrderraj, PFP rehiclea were making the 8rdu-<br />

e m runs to marovia for chick. and irported feeds. The sqicul-<br />

tarZ advise?, rho had taken animal husband- trtining in Danma*,<br />

M spending ahst half hie time adrising this one project. A8<br />

RP's first operational year closed, the Governing buncil and<br />

staff rere discus8ing rays to reduce andstante to Ajaron Parn<br />

ritboot jaaprdining it* promising future.


In part because a mjor portion of PPP funding<br />

came fro= SIN via the Sodish hmciation of P1I<br />

and WUs, and in part because the Yekepa m's<br />

youth development prograa was in harmony <strong>with</strong> mP<br />

objectives, a close relationship developed betreen<br />

PYF and ririch included reciprocal Board and<br />

Governing Council mmbership and joint projects.<br />

The tma agtncies agreed to start a handcraft<br />

j/<br />

uroduction and ales division of YXU to be called<br />

Y-Craft. Its putpose n8 to impart handcraft skills<br />

and give part time employment to Liberian romen.The<br />

general rationale was that rives of k o eaployees<br />

lived in close together housing areas which did not<br />

permit mmen to engage in traditional a&-related<br />

octnprtions.Therefom man)- mnn in Yekepa rere experiencing<br />

p6ychological problecls which, according<br />

to the mining company public healtb official, stmed<br />

from inactivity and cansequent self-devaluation.<br />

A secondal~ objective of Y-Ctaft ran to earn money<br />

to support Y13C* activities rhich rere non-income<br />

generating such a6 physical culture and tillage<br />

health programs.<br />

Vhen the Yekepa YMCA apde the Y-Craft plan<br />

knom to the Swedish YM md YISCA Association, the<br />

Ansociation persuaded SIDA to provide a craft trai-<br />

ning volunteer. The SIDA mtunteer came to YICraft<br />

via Afro-Arts, a non-profit organization in Stock-<br />

holm promoting the .ale of African handcrafts in<br />

Scandinavia.<br />

During PPP's firat year of operation the SIOI<br />

volunt8er arrived; a silk-acmn cloth printing,<br />

suing and general craft training m&shop 'ka6 es-<br />

tabliahed in a labor are. house donated by hmco; a<br />

retail store in the co-it7 center. rea leased and<br />

stocked nth saleable handcrafts pade in the mrk-<br />

.hop or purchased from ertisana and traders; aeven<br />

mnn were receiving 8kill training; and one rotcan<br />

ru receiving retail atom management training.<br />

38<br />

I<br />

i


Under the direction of the YHCL executive's wife and the<br />

PFP General Xaneger's wife, Y-Craft began to turn over a re-<br />

spectable voltllne of sales ( approximately $30,000 during the<br />

first year and to earn a moderate profit. all of which raa<br />

ploughed back into inventory. While Y-Craft had a net worth<br />

of approximately $9,000. it alill.required short-terr payrull<br />

and raw material financing from PFP.


Starting enterorises to be soun off to Liberian omershi~ and<br />

management when aroven viable<br />

As part of early experimentation, prior to adoption of<br />

the PFP program nor in progress, the community developaent<br />

consultant to hmco had started a two-acre irritated rice,<br />

mixed venetable and tree farm on a 30 acre piece of land ad-<br />

jacent to Yekepa. Projections made then indicated that <strong>with</strong><br />

two harvests per year and an eventual 20 acres under rice cul-<br />

tivation, each acre could produce 4,000 lbs. of ailled rice<br />

per year. At 1% per lb. this wuld give the project an im-<br />

diate annual income of $1,200 and a potential future income<br />

of 312,000 per year in rice sales. Pbe experimental project<br />

wuld also test the potential for vegetable and tree f ~ i t<br />

production for which M feasibility iaforaation raa available.<br />

At the time, it ran estimated that the project's annual<br />

operation cost wuld be constant at $7,600 before, during and<br />

after land preparation. This was because warehouse and drying<br />

slab construction and learning expenaes rould be spread over<br />

the first few years whereas in theory. .hen the project reach-<br />

ed 20 acres,opesation should be systepatic, partially aechacr-<br />

ized via mto-tillers and more efficient. hnd preparation<br />

wuld cost $250 per acre.<br />

Therefore,if 20 acres of irrigated rice could be brought<br />

under cultivation in seven years, the project could pay for<br />

its land preparation in ten years and be earning a jpfit.


At the c<br />

the project was<br />

still being -aged by PFP and kiability was a long my from<br />

proven. A tendencj on the part o f the rice rorkers to compare<br />

their rages and benefits nth those of mining companj. csployees<br />

had led to a series of strikes and other labor pmblcras which<br />

reduced productiv1ty.The cost of finding and implesentins solutions<br />

to blight caused by iron-toxicit7 proved higher than projected.<br />

Tbe project did, however, have proaise. The trial of nine<br />

varieties led to tm rfrich were resistant to iron-toxicity and<br />

productd reasonable yields. Testa of various rob-tiller urd<br />

thresher desips,fertilizers and fertilizing sehedules,harveat-<br />

ing, dqing and parboiling techniques, and insect and pest con-<br />

trol rere in progress. Tbe PFP staff, cognizant that costs mere<br />

running higher than projections, agreed that solving irrigated<br />

rice production problus had a high oational developaent prior-<br />

ity and that efforts must be continued eien thou@ funds had to<br />

be reallocated to this from other budgeted program elements.


A Peace Corps volunteer specialist had visited Lasco in<br />

1973 and proposed that a Yekeoa comnunity credit union would<br />

be feasible if the mining company labor union agreed to organ-<br />

ize it and encourage me&erahip.Both the company and PFP agre-<br />

ed that a credit union was needed.The tau cowercial banka op-<br />

erating in Yekspa had such high ainimum deposit requirements<br />

that 8C% of the co-ity had ao banking facility to encourage<br />

thrift.<br />

PPP invited the Libarian Association of Credit Unions to<br />

come to Yekepa and conduct a threeday educational and prose-<br />

tional seminar on crsdit unions and their benefits. Tlre mine<br />

rorkera union organized attendance. At the seminar's close a<br />

group of ten charter members signed an application for regia-<br />

tration of the Yekepa Community Credit Union.<br />

It soon became evident that this group ranted PFP to man-<br />

a p the credit union. PFP agreed to act as management consul-<br />

tant, to assist in working out loan and investment policies,<br />

and, if the members deemed it neceaaary, to be a signatory to<br />

all disburseaents. But PFP decliaed to assume amnagtment re-<br />

sponeibility,explrining to the charter memhera that one of the<br />

primary concepts of a credit union is that it should be manag-<br />

ed for the members by officerr elected from the aerberahip.<br />

It was difficult for P- to forego the chance to get the<br />

credit union into operation because enthusiasm was high arrd<br />

iaplementation could easily have been achieved. Borerer, after<br />

considerable soul searching,thc advisors conc~rned agreed that<br />

it muld be a mistake for to push too hard for start-up.<br />

i s Light rusult in a credit union .bid the membem would<br />

perceive aa the "PPP credit unionNirutead of the mrs valuable<br />

long-tern concept that a credit union belongs to the members.<br />

Unfortunately,rhile several charter aubers continued to be en-<br />

thusiastic, they rers unable to keep a cohesive -up together<br />

and take the next implementation steps.<br />

Eventually there will be a credit unioa in Yekepa because<br />

it is a natural wlution to the thrift and credit needs of<br />

rege earners. As of the end of the firat operational year, WP<br />

could not project how and when the credit union muld come<br />

into being.


Projects started and lanaced b_r W<br />

Experience nth locally managed enterprises revealed vcr?<br />

soon and clearly that three mejor facets of -went suffer-<br />

ed from lack of experience and training. These were:<br />

1. hneral management: the role and responsibilities<br />

of the general manager.<br />

2. Financial management: appreciation of accounting,<br />

budgeting, caah flow projection, financial decis-<br />

ion making, dealing <strong>with</strong> bsnks.<br />

3. bntract management: what a contractor is, hor he<br />

related to his custowrs,rhat.he does, how he es-<br />

timates costs, prepares bids and plans work.<br />

mile courae material available from overaeas pmvides a<br />

useful guide and checklist of points to cover, PFP eltcted to<br />

design more specificallj relevant araterial for eveninr sdnar<br />

procrams (4% hours a reek for 12 w eb during )larch, April and<br />

by when there was minimum conflict nth s-r vacations and<br />

heavy dm season wrk schedules ). Participants rcre selected<br />

to have mutual pmbless and one half of each seasion devoted<br />

to gmnp discussion-<br />

Getting participants aware of the importance of regular<br />

attendance proved difficult in the case of the managers and<br />

accountants. 25 contractors, horever, attended all 12 aeasiona<br />

of the course designed for them.<br />

The most important result of the seminar program ras un-<br />

expected candor on the part of participants discussing the<br />

prevailing low level of business ethics and the problema impo-<br />

sed on 6-11-scale Liberian entrepreneurs by COL reylatorj.<br />

agencies. For eranrple, several entrepreneurs complained that<br />

their enterprises were regularly padlocked by local officials<br />

do, having reviewed registration docments, financial atate-<br />

aents and t&x papent rsceipta, declined or refused to cite a<br />

violation or cause for their action. To get the enterprise re-<br />

upened, the entrepreneur muld have to travel to the county<br />

headquarters at his om espenae and shot all his documentation<br />

again to authorities there. Other business men complained of<br />

having no reliable source from .hi& to find out all of the<br />

reylatom coapliance required of them.<br />

These revelations led FFT to atut collectins inforoation<br />

to aaaemble into a " Saall Business Handbook " to be prepared<br />

for copprehension onsophistiuted dl-acale businesn om-<br />

era and managers.


Even before PFP started operation, the coaarunity develop-<br />

ment consultant recommended that Lama discontinue being bank-<br />

er and lending agencl to local private enterprise. Be reasoned<br />

that in this role Lamco eeriously diluted its effort to foster<br />

initiative -- - and self-reliance. There was, however, need for a<br />

aouree of seed caoital to finance feasible enterprises which<br />

were unable to provide the security requirad by the local<br />

banks and the newij formed development bank in Honrovia.<br />

It was not difficult to persuade Lueo to delegate the<br />

lending function to PFP. The mining company agreed to lend FF'P<br />

SlC0,000 interest free for ten ysars,lhich amunt wuld become<br />

a PFP-administered remlving seed capital loan fund. A candid<br />

review of the cost to Lpaco in money, tire, and public rela-<br />

tiom palaver resulting from its poor lending track record<br />

rendered the P?'P solution both attractive riod economic. The<br />

eavorins letter of approval translated from Swedish authorized<br />

$100,000 for "PFP lour funm.As of mid-1973, a three-a~an review<br />

corittee consisting of one representative from bmco,one froa<br />

a local coaaereial bank aad one from PFP, had been appointed.<br />

Unaaimus agreement of the codttee wuld be required to ap-<br />

prove any loan.<br />

Other activities undertaken bv PFP<br />

In its first year PFP aooainted a Covernine Council of<br />

ten .cmhers to provide policy guidance, strateg recommenda-<br />

tions, progar design and progress reriw, and a8sistance <strong>with</strong><br />

Government relations. On the buncil were the Xiaiaters of Ag-<br />

riculture and of Planning and Economic bifairs,the County Sup-<br />

erintendent, representatives of bco,of the Y)ICI, of donor a-<br />

gencies, of the business co-ity, 8nd of m. Appointment of<br />

this Cauncil was regarded as a first step toward eventual ins-<br />

titutionalization of PFP into one or mm bvernment agencies,<br />

and an essential step in aligning W's progar <strong>with</strong> national<br />

development objectives.<br />

Five mnths after PFP war, created, the Governing Council<br />

conducted its first meting. The highlights of Council meabers<br />

resolutions, recomndationr and general discussion were as<br />

follors :<br />

- PFP usistanca should be extended to mall-scale<br />

-1 farmers and entrqtrsieurs rho had no other<br />

source of as8istance.<br />

- In additian to project-bpprofact progass re-<br />

port*, audited financial atatesent8 and pragar<br />

projections, the Gorernin~ Council could give<br />

are ralevrnt guidance if it had an estiute of<br />

the total coat of all PFP rawurces applied to<br />

each client enterprise, and to each project or<br />

actiritj undertaken.


- Discussions rithin the Council meetings and re-<br />

ports distributed to Council members should be<br />

privileged and therefore candid and free of the<br />

inhibitions which normally restrain policy Rlak-<br />

ers and advisors from mentioning problems dich<br />

could be interpreted as criticism of individuals,<br />

pvernment departments or donor agencies.<br />

- A mall executive committee of the Governing<br />

Council composed of Yekepa residents was appoin-<br />

ted and earpowerad to rake deciSi0116 on behalf of<br />

the Council.<br />

- Meetings of the full Council muld take place<br />

trice a year <strong>with</strong> the venue alternating betreen<br />

Yekepq and Monrovia.<br />

Early in the year PFP established liaison rith the Minis-<br />

trr of Agriculture Bsseueh Station at SuakDko ( 90 miles from<br />

Yekepa over difficult road).Agricultural developmnt in Yekepa<br />

needed technical advice and inputs from the ZLinistry.PFP rsnt-<br />

ed to take advantage of all infomation and experience already<br />

available. This liaison was encouraged from the start. The Re-<br />

search Station supplied seed, equipment, mil and plant patho-<br />

logical analysis, and advice. To reciprocate PFP endeavured to<br />

run variety trials. Although these rcre not adequately mper<br />

vised and recorded to produce widely applicable results, they<br />

did indicate dich plant varieties could survive in the later<br />

itic, iron-toxic soils in the concession ma. The liaimn be-<br />

came increasingly constructire as PFP and the Research Station<br />

learned each other's capabilities, lisritations and objectives.<br />

One of Liberia's tm uaiversitie8,Cattineton Collepe,(lo-<br />

cated near Suakoko) had started a business administration fac-<br />

ulty in 1973.The Dean, a frequent visitor to PFP projects,sug-<br />

gested an intern ~ro- whereby students could be given cred-<br />

its for practical murk experience in Ydrepa enterprises drrr-<br />

ing summer break.1t ran agreed that this should be implemented<br />

in 1976 when the students rnre in their third year.<br />

kaw mining eampw's poritire attitude toward Liberia's<br />

national developrent was often put to test. The company was<br />

asked by ODL departaents and many private entreprrneura to eon-<br />

duct feasibility studies and urovide manaotrent cansultation .<br />

A nrnber of such requests rcra paased on to PW, especially<br />

those from prowaed - - entemriscs which rould hare kact on the<br />

concession -a- Durbg the first year, PFP cunducted full<br />

feasibility studies on:<br />

- A proposed petrolmm products rail transport,<br />

bulk storam, md tank tmck distribution systes<br />

located along the kso railroad, RP't study<br />

indicated th8t this project wald not be fea6ible<br />

until coammption of fuel in aortheutern<br />

Liberia and puts of Guinea ~rr4 from Liberia,<br />

increased SIb~t,anti8llj.<br />

48<br />

- -


A proposed investment LO upgrade an existing hotel and<br />

related guest facilities to the level required to attract<br />

tourism to Robertsport and Lake Piao. Ln summary, PFP's recom-<br />

mendation was that if a substantial amount of investment could<br />

be attracted, or allocated, and spent to provide tourists <strong>with</strong><br />

interesting crosa-cultural and recreatioaal activities as well<br />

as comfortable accol~dation, the area could generate income<br />

from a segment of the dmericao tourist mrket to which Liberia<br />

is of special interest,<br />

Conclusions disctursed<br />

In any goup as divergent aa PFP'a Governing Couacil and<br />

staff, and representative8 of donor agencies from several aa-<br />

tiona, all dealing <strong>with</strong> an experimental approach, there was<br />

bound to be disagreeaent and consequent constructive discue-<br />

sion.<br />

While wme felt that too much of PFP's time and resources<br />

rare expended on too few of tho area's larger enterprises,Oth-<br />

em pointed out that artiaana and small-scale farmers could<br />

not be erptcted to generate the eaploy~ent and income required<br />

after depletion of the iron ore.<br />

It was agreed that agricnltural and rural development as-<br />

siatance reaching that portion of the population not benefit-<br />

ing from Lasco's presence should be increased, The concensus<br />

was that F?T would need ta have a specialized agricultural and<br />

-1 developpent departaent <strong>with</strong> experienced Liberian leader-<br />

dip in order to irpleaent an effective a8aistance program to<br />

rural farmers and village drellern. And agricul-a1 and rural<br />

development should be prograased and reported separately from<br />

industrial and coawnial development.<br />

Finally, all Cowcil mbers, staff and donor agencies<br />

coneuned that first year progress justified continuation of<br />

the Yekepa experiment.


SECOND AND TSIRD YEAR INDUSTRIAL AND COMMERCIAL DEYETRP?IEm<br />

Although detailed programs and projections of achievements<br />

were prepared each year and revised each quarter, these rill<br />

be omitted because too much detail nould detract from the con-<br />

cept of the Yekepa experiment as a model for application in<br />

other conceseiona. During the second year of the PFP program,<br />

progress was slow, but steady, and toward the end of the third<br />

year there was a marked increase in the number of Liberians<br />

atarting enterprises <strong>with</strong> relatively little PFP input.<br />

Continued assistance to existine spin-off enternrises<br />

Spin-aff enterprises continued to require inputs, especi-<br />

ally accounting and contract negotiation assistance. On PFP's<br />

recomendation, an experienced transport isaagestent ~d rork-<br />

shop organization consultant was hired by Honitco for three<br />

mnths to help improve fleet maintenance and to provide expert<br />

advice on standardization in the acquisition of new equipment.<br />

This consultant ras recruited by the International Executive<br />

Service Corporation (Hew York City). Half of Ms cost was paid<br />

by USAID and half by Monitco. His work ras practical, well re-<br />

ceived and effective.<br />

National 'Uoodra~'s wrth was astonishing. Sales volume<br />

rent from 5300 per month to $7,000. Employees increased from<br />

15 to 3O.Net profits enabled the company to reduce its iadebt-<br />

edness from S24,Oo to SS,000 and, at the same time, invest<br />

$15,000 in new machinery, tools and a sales showroom and of-<br />

fice, In 1977 the company operated for three months under the<br />

general wagerneat of the Liberian Vocational Tmining: Center<br />

graduate <strong>with</strong> one owner's rife controlling finances. Additional<br />

production supervision, however. rae atill needed, With the<br />

shareholders' agreement,another full-time advisor ras hired to<br />

assist the production manager. The former grorth trend ras<br />

resumed.<br />

Analysis revealed that the foreign advizor's priaarg role<br />

ras to supervise maintenance of machinery equipment and tools<br />

and to keep mrk flow organized for maximum output at each ma-<br />

chine station. At the end of the third year,National Woodrcrirrr<br />

waa riming contracts to provide furniture and mill rork to<br />

Lamco and to other companies and institutions througfrout Li-<br />

beria. PFP and the omers ancurred that a modwarking advisor<br />

<strong>with</strong> mechactical how-hor might be needed for another one to -<br />

two p?srr.


Nimbaco (the logdne and sawmilline coauany <strong>with</strong> exgatri-<br />

ate manacement)continued to invest rith a vier toward increaa-<br />

ing production.In aid 1977 GOL forest conservation reylationa<br />

dealing rith export limits,minirrua diameter cutting aad refor-<br />

eatration and stumpage fees, were undergoing revision in hat<br />

appeared to be an effort to stem the exploitation of irreplac-<br />

eable national resources ( primary forest and exotic species).<br />

Such revisions were cited by sawmillers as a reason to in-<br />

crease prices to local consumers of the " redrood " furniture<br />

manufacturing 8peciea.They seemed to be justified in the light<br />

of long-term reaouree conservation. Foreat concessiobairea in<br />

Liberia for many yeara have been extracting and exparting ex-<br />

otic specie lo@.Such concessionaires are nor being encouraged<br />

to invest in processing machine-, employ more Liberians and<br />

dark on a longer-range and leas exploitive course of grorth.<br />

Nimbaco is one of the companies responding constructively to<br />

this encouragement,<br />

It was sometimes PFP's role in management consultation to<br />

defend GOL actions to investors who have a tendency to feel<br />

persecuted.<br />

The electrical contracting or~ioation, Jelco, continued<br />

to expand and at the end of the third year had a tro-year contract<br />

to maintain all 3,W hco house8.2rpansion was so rapid<br />

that it could not be financed from retained earnings. A FTP<br />

guaranteed baa* loan ($8,000 for one year to be repaid by mathly<br />

deductions from maintenance contract papents ) has been<br />

applied for.<br />

h Fa the case of National Woodrorka, Jones could not yet<br />

leave the managaaent of Jelco to his senior foreman. Vhen he<br />

tried this during a vacation,the vehicles broke dom <strong>with</strong> ser-<br />

ious damp from la& of basic raintenancs and contract perfor-<br />

mance, of course, deteriorated. PFY had to manage the company<br />

until Jones returned to keep &ace from terminating the coa-<br />

tract.<br />

Ner aoin-offs undertaken r%quire leas PFP involvement<br />

A sccond electrical contractor, Willie Zu, ran encouraged<br />

by agreement betreen Lenw and PPP to gat licensed and start<br />

operation in December 1976. Be did not compete <strong>with</strong> Jelco because<br />

he specialized in "high-tension" mmin~enance.Yillie Zu's<br />

contract for raapval, relocation and naintenance of high tension<br />

lines averaged $2,000 per aonth and enabled him to operate<br />

a vehicle and esrplop five workers. IIe visited the PFF' offica<br />

once a week to mvier progresa and discuss probleas.PF'P1s<br />

aechanical advisor asaisted his to reintain his pick-up truck.<br />

&rly in the second propa year PFP and Luo aged to<br />

a s~xth soin-off.In corplim~ee rith ML regulations, Lamco had<br />

been replanting forest to cnapenaate for lo- rrasoved.0ne specia<br />

planted, Gaelina, was known to have desirable fibres<br />

-


for pulp used in making craft and other high grade papers.This<br />

specie seemed to thrive in the concession area's soil, topog-<br />

raphy and c1imate.A Swedish consortium of pulp and ?aper manu-<br />

facturers started Liberian Forest Conorstion(LFC)to create a<br />

belt of forest for pulproods along the Lamco railroad. LFC<br />

wuld eventually build a chipping plant in Buchanan and eqort<br />

mod chips to Sweden for conversion into paper pulp. At LX1a<br />

request.PFP harvested and shipped for trial processins 30 tons<br />

of Cselina. Results of the trials were good and Ln: decided to<br />

set up a headquarters in Liberia and negotiate for a large<br />

concession.In order to have a head start in developing trperi-<br />

mental specie stands, LFC nquested PFP to start and maintain<br />

an arboriturn for 8,000 seedlings of 11 trial species.<br />

PST responded favorably and eomplied rith all requests be-<br />

cause the project promised to be a large future eaployer and<br />

source of post--n-om-development. LFC compensated PF'P for<br />

all services at coat.<br />

Small-scale enternrises increase in number and varietr intm-<br />

dueinc new concerns and problems<br />

Bumble's Inn, rith the omer's and Lamco's approval, raa<br />

leased to a foreign entrepreneur for 5 years. The lessee took<br />

over FW's lease and invested in building improvmenta, rum-<br />

isbings an6 equipment. Profitable operation started spin in<br />

September-1975, One proble~ impaired the mutually beneficial


elationship between the omer and the lessee, The omer be-<br />

lieved that each pernanent improvement installed and paid for<br />

by the lessee rendered the lease agreement wad and empowered<br />

him to increase the lease fee. P?T was requested to moderate<br />

these frequent disputes. me PFP advisor explained to the om-<br />

er that it was to his om benefit to encourage investnent in<br />

improvements which would revert to him at the end of the lease.<br />

Unfortunately, the prospect of immediate casn often prevailed<br />

over logic. Since ther were no longer constructive, PFP advi-<br />

sory services were discoatinued in December 1976.There appear-<br />

ed to be general agreeseat that Bumble's Inn had become an as-<br />

set to the co-ity and a source of steady income for both<br />

omer aad lessee.<br />

Ia preparing the lease agreement as a coneultilncf aervice<br />

to the omer, PFP included a clause by which thalesaacagreed<br />

tt train a Liberian iranager to mn the Inn. This could be the<br />

owner's rife or an individual meeting the attual approval of<br />

omer and lessee.Unfortunatel~., the friction in the omer/les-<br />

sao relationship has prevented Chis clause from being imple-<br />

mented so far.


Buff Bakerr, Olma 77 (diner) and Y-Craft continued suc -<br />

cessful operation <strong>with</strong> PFP involvement ranging fmm a -age -<br />

ment contract in the case of the bakery to an advisory role in<br />

the case of the other two. PFP assisted the Yekepa YXCA to ob-<br />

tain funds to undenite Y-Craft's training costs which could<br />

not be covered by income from sales of handcrafts.A second Af-<br />

ro ArtsjSIDA craft trainer arrived in Yekcpa in July '77 for a<br />

tro year tour. She imaediately started trainins selected women<br />

in creative dekiga to supplesent the cloth printing and sewing<br />

training which rill continue.Additiona1 funds specific all^. for<br />

this project were promised by tro donor agencies.<br />

Entrepreneurs coming to PFP and obtaining various tnes<br />

of assistance increased in number rapidly durind PFF"s second<br />

two years of operation.. These included:<br />

- a tailorinq contractor who was helped to get contracts<br />

to sake coveralls for h c o workers and to set up simple ac-<br />

counting and cost eatbating procedures.


- a wrha'r lunch room operator in the Wnewrkers<br />

Union Hall rho ras given a amall loan and advice.<br />

- a second caruenter shoo omed and -ged br a Lf-<br />

krian rfio financed his operation totally from personal aa-<br />

ringa and came to PPP for vlnagrment consultation only.<br />

In approving assistance to the aforelisted entesprisea,<br />

them ras concern that too nay enterprises in one eatagorj.<br />

could cause competitioa to the detriment of all. For<br />

erarple, in Yakapa there rere independent tailoring shops<br />

and bakeries in the houses of taraco anrployaas mbsidixed by<br />

free k o<br />

electric it^, appliances and mrk apace.PFP reas-<br />

oned that such rubidy muld not be available forever and<br />

therefore, creation of a tailoring eontractor capable of<br />

paying for apace and utilities, md r eu~ercial bake-<br />

would have long-tcrr rprriral prospects dficient to off-<br />

set- hsrr to the artifikially supported iudepdents.


A different type of concern was brought to light .hen PFP<br />

elected to assist a recreational enterprise.<br />

A cinema operator built a theater <strong>with</strong> 600 seating capacity,<br />

h e o savings supplemented by a line-of-credit<br />

( $2,400 ) and building design and construction assistance from<br />

P . The cmema was located in Unification Tom two miles from<br />

Yekepa. This over-crowded tom houses approximately 10,000 persons<br />

rho work indirectly for Lamco as casual labor and subcontractors<br />

and are not entitled to Laaeo housing. It was PFP's<br />

judgement that a theater building for recreational cinemas and,<br />

as the omer agreed, a setting hall for other purposes, was a<br />

project worth^ of assistance.<br />

In order to finance a generator.tn, 35 millimeter projec-<br />

tors, furniture and operating capital, the PFP accounting advi-<br />

sor helped the omer applf for a loan fro= the Liberian Bank<br />

for Industrial Development and Investment (LBDI).


An unexpected result of this action r~ the disapproval<br />

of the bverning Council nember representing the Swedish YXA-<br />

DCA baaciation. This member felt that Karate filrs shorn in<br />

this environment muld encourage violence. especially in youth-<br />

ful cincma goers.<br />

Tbe reason for mentioning this ;aore-orless routine and<br />

normal divergence in viers is to illlutrate the number of Ior-<br />

ces rhich influence decision ding in a development program.<br />

Despite assertions to the contrary, the interests of donor a-<br />

gencies have to be kept p-unt in the mind of the agency<br />

magar *ha reasorrs that <strong>with</strong>out funding there rill be no pro-<br />

gram at all.


The record of Lamco and PFP assistance to N. Hilton Su-<br />

nermarket illustrates most of the problems concessionaires and<br />

development agencies face playing too dominant a role in fos-<br />

tering indigenous private enterprise. Intensively surnmarazed,<br />

the highlights of this case history follow.<br />

In 1972, Mr. Milton started operating a mall-ecale su-<br />

permarket in one of Yekepa's market centers catering largely<br />

to Liberian employees and their fantilies. The store had a good<br />

stock of items not carried by the larger USTC-M supermarket<br />

in the coamunity center which catered to the Scandinavian and<br />

foreign community.<br />

Several years previously, Hr. Milton had expected Lamco<br />

to spin off its large superaaritet to him, rather than to the<br />

foreign omed cospany. When this proved impractical because of<br />

the large investment in stock which had to be purchased from<br />

Lamco, .Xr. Hilton set out to prove that he could operate suc-<br />

cessfully in campetition <strong>with</strong> USTC. Us attitude was exactly<br />

what a development project would hope for. He was independent,<br />

hard-working, able and reliable. N.Mlton Supermarket prosper-<br />

ed. In a short time sales volume wa6 averaging US,W per<br />

month. Net prof it was small but steady and, after a full year<br />

of operation, shored an upward trend.<br />

Facouraged by these results and desiring to prove him-<br />

self a tough competitor, &. Milton, <strong>with</strong> Lamco's blessing,<br />

built a second supermarket in Leaco's coarmunity center, almost<br />

next door to USTC. He had to borrow mney at stiff interest<br />

rates to build, equip, and stock this store. Uhile sales vol-<br />

ume appeared promising, .Hz-. Milton's enterprise began to ex-<br />

perience classic symptoms of undercapitalization and overex-<br />

pansion. Bank credit was frozen. This precipitated a move by<br />

all creditors to collect. Needed operating capital was no lon-<br />

ger available. Stoek depleted, sales volume dropped and profit<br />

became loss. The so-called "awr ball" effect set in unmerci-<br />

fully Attesqts on Lamcols part to assist by extending utility<br />

credit made matters rorse allowing Mr. Hiltoa to operate<br />

longer and low -re+<br />

By the time PFP was established and called in to aaaist<br />

by Mr. Milton, at Lamcots suggestion, indebtedness had reached<br />

the point where survival would be possible only if major ~ fi-<br />

nancing could be obtained. - -


Since that time, Mr. Xilton's trade creditors, GDL and the<br />

two lending banks involved have met and decided to underwrite a<br />

refinancing program based on a design recoswnded by PPP. Under<br />

this plan Hr. Milton rill resume operation in his original sup-<br />

ermarket and pay oblietions gadually.Lamco's contribution pot<br />

underray in mid-1977 consisting of refurbishing )Ir.Xilton's or-<br />

iginal retail store and cold storage facility; leasing his sec-<br />

ond store for an amount sufficient to meet the building loan<br />

payments; and writing off a portion of his past utility obliga-<br />

tion.


This case histom illustratso several of the ant prom-<br />

lmt problem6 facad by concssaionaa~s, joint ventluas, host<br />

gevsnuents and aenciea fosterins kfdi~;.aous mter;,riae de-<br />

veloplent. Enterprasas attcrrpting to start <strong>with</strong> ainiul eap-<br />

italization, sawtins leas Uan m i n h l , and inexperiencad<br />

ranspent ars especial17 rulaerable.Almat an7 unfores.cn set-<br />

back such aa unavailabiliF7 of supplies or raw nteriala, de-<br />

1- in obtaining a mecbanieal par+, a rubber)., or simply an uc<br />

bitrar). changs in the policy of local banks, can put the ent-<br />

erprise into a financial crises sitrution. Early apptoms<br />

sucb bring to borrow to net a p-11, having to nits<br />

post-dated checks to obtain atock or having to use rithheld<br />

tuea for operating capitr1,ax-a seldom recognized a6 the gave<br />

aager signals the7 are.


PFP attupts to identify these signals but =st rely on<br />

the complete COZLfidence and rillin@ess-to-revenl of the cli-<br />

hnt enterprise owners and managers. me earliest signal tuunl-<br />

1y appears in operation of the enterprise's bank accuunt and<br />

can be picked up by an alert banker. PFP encourages client en-<br />

trepreneurs to establish consultancy relationships rith their<br />

bankers.<br />

When the classic nrninga appear,it can.be a fatal mistake<br />

to advance -nay or prolong credit, horertr gwd the intent,<br />

rithout ping through the aoafysis to deterrine th.t b-<br />

pact the additioarl w h or credit rill have on the enterprise.<br />

To eoncaasiop.ires dealing rith their om luge-scale opmtioru,<br />

tAe amount. of money or &it d c h a local entrtprenar<br />

requests to " see hir through a temporary crisis * appear<br />

m aall that it muld seem dair and palitically -rise to<br />

rafuse. And yet, such a -11-intended aeeo~dation can be the<br />

kiu of death * to a local enterprise.<br />

)nothe 1.-n learned from the X. Milton Supcrt.rket<br />

ezpcriance is the soundness of allodng -11-scale,indigenoru<br />

enterprises to pr at a nrtaual rather than accelerated paen.<br />

The esperieneed %magerr of concessions oftm nee entrepreneu-<br />

rid gorth opportunities througb ledernired eyes.<br />

'Here ve arr rining iron ore; shouldn't Wonitco set up a<br />

foondq to produes vahiel. pqrta ?"<br />

"Vith a11 the focal fruit md vegetables available hus,<br />

shouldn't PFP be helping Mr. Hilton start a cannery ?"<br />

%en I rar Fn hmpe I found a market for .abom fur-<br />

nitare; shouldn't National loodwrk. net rrp an esport depart-<br />

meat in Wonrovia ?"<br />

While. these y be the opportnaities of the future, the<br />

agmeJ ranrging mcillu7 enterprise development in a eonesssion<br />

uu. must rink the eritici~ thrt prog~ess is too slor<br />

and resist the teqtation to encaursge expansion at a pee too<br />

rapid for the available capital and managerial her-hor.<br />

PFP builds a null-scale induntrial estate<br />

As an experinntd solution to the short.@ of -&shop<br />

space and the high rink inmlmd in -d lending to printc<br />

enterprise, PIP proposed to the ud upltrl. 1o.n fmd<br />

co-ttrr to allout&. up to S7S.a)0 of tiu SI%G000 lnud<br />

to eomtruct -a equip a -1-uale industrial rate. The<br />

rationale N that the building wuld bo adifid rad quipped<br />

to fit the need8 of propaad dl-aule LnQutriu, .nd that<br />

entrrpreneam lruing rpre8 wuld pt into huin~88 by Asins<br />

emu their apenting upitd -ta. The lour fonds<br />

ropld be m~rr *cue PrP muld o- tke bailding md equiprent.


The estate 7- corpletao in December, 1976. The buildiag<br />

and electrical installation coat S49,MX)- A $10,000 mdification<br />

and equipment program to fit the nerds of Atlantic Automotive<br />

Services, a Liberirn/~ustriQn partnership, started in<br />

June, 1977 r~th the whole estate leased for $850 per month<br />

(calculated to repay the $59,000 of loen funds plus 6% p.a.<br />

interest in 10 years).<br />

Atlantic Automotive Serrices propased to repair vehicles,<br />

do contract welding and machine shop wurk for hrco, knitco,<br />

Nisbaco and others and to repair and maintain P5T's vehides,<br />

earth-moving equipment and agricultural machine-. PPP oms<br />

and operates 2 motorcycles, 3 pick-up trucks, 6 mall VV 8e-<br />

danr, a caterpillar track fmnt loader and a variety of dif-<br />

ficult-to-mpair agrictlltural equipment such or rot0 tillers<br />

and pumps made in Japan, rice threshers nade in China and ax-<br />

perirental mechanical tillers lsde in the Philippines.<br />

The decision to lease the antire estate to one enterprise<br />

<strong>with</strong> 7m foreign omemhip invrlved a number of concelar.Cansidering<br />

the viable eo-ity objective, and co~idering the<br />

esperienc* 80 far of the need for technical qertbe and<br />

mnagarial exporienca, it appeared logicrl that an interredirta<br />

step in the development of indigenomly owned and wged<br />

technical entcrurises .auld be the eneoux-8-ent of Liberian/


and mrked full time in the enterprise, his know-how could be<br />

transferred to Liberians employed by the enterprise. Noreover.<br />

if the enterprise performed services far other enterprises essential<br />

to the development of their eventual independence from<br />

Lamco, then PFP judged that assistance to Atlantic Automotive<br />

Services muld be in the interest of achievin~ its long-tern<br />

objective.<br />

A secondary factor in favor of this client was the om-<br />

era' willingness to contract <strong>with</strong> PF'F' at a reasonable rate<br />

for semice and repair of PFP vehicles, nachinery and equip-<br />

ment. To date, vehicle and equipment operating expenses had<br />

averaged 52,500 per month (17% of PFP's cash income).


Onr group in the Gorwning Council felt that a a re intan-<br />

sire and far reaching effort hould be mde to attract foreign<br />

know-hor md investrent to Yskcpo in the lon of joint ventures<br />

rith local Wberian participants, licanws iasasd by foreign<br />

corpuriea to mmufacture or procesa in Liharia or Foreign / Li-<br />

berian partnerahipa. It ran felt this could be m intermediate<br />

developent step providing mom tut to allariate the local<br />

ahortage of capital and plnagerinl md tacirPiul skills.<br />

The Council eoncPrrsd that PtP arperienci ro far indicatd<br />

that M innovatiotul approach .odd be needed to ~ l v local e attitudinal<br />

pmb1.u cawatad by tho prrsencs of a luge, well financad<br />

concasaionaim, Facourr~ent of initiative md self re-<br />

liance rcre gods. while encouragerent of dependence and<br />

reli.nca on the cnrpw appeared to br uaintmtionrl bppmd-<br />

ucta of k o ' a pataxnal -went atyle. Aa the uprmaion<br />

bpes in Liberia, " w hat to do? "


PEQSONHEL


With the Hiniater of A$?-iculturr as Governing Council<br />

Caiman, it Was not surprisinq that PFP was directed to in-<br />

crease aphasia on agricultural and rural development. While<br />

there was very little entrepreneurial tradition in Liberia,<br />

farring tradition was abundant. The pattern, in over-simpli-<br />

fiad fora, had been that Liberians f-d and other national-<br />

ities, each as Lebanese, traded and manufactured.<br />

Liberia's national development plan placad esqhair on<br />

achievement of self-sufficiency in food production. Because<br />

kaca axd PfP rere headquartered in Cpper Ninh buntj, the<br />

GDL tended to allocate scarce resources to other ragions in<br />

order to ereate a nationwide balance in development inputs.<br />

Hence, PFP had gradually assumed tho role of upper Nirba<br />

bunt7 technical aasirtanca agency for rural and agricultu-<br />

ral developreat as re11 as for industrial aad coareial da-<br />

velopment.<br />

A aenior Liberian Aerieultural Advisor ia hired and a oroeraa<br />

designed<br />

In A ~ r i l<br />

1976 James Sirleaf, forplcrlr Liberian Deputy<br />

Minister for Action and Derelop!ent Rogmss (AD&'), and hold-<br />

er of a 89 degree in Agriculture and a XS in Cooperatire &-<br />

tension m*, joined the PFP staff as Senior Agicultural Ad-<br />

riaor. !%a knowledp of the customs and attitudes of Liberian<br />

farnerr and of the eutfrorit7 structura in rural villages md<br />

elms ras essential to the design and direction of a practi-<br />

cal tm year agricultural and -1 dsrelopent ~sistmce<br />

prom which included:


- continuation of the process of turning over the<br />

PIT' irrigated rice, veptable and tree farm to<br />

the workers and aaaisting them to orfsnize into<br />

a cooperative<br />

- continuing encouragement and assistance to veg-<br />

etable farners, tree farmers and Ajavon Poultry<br />

Farm<br />

- assistins in the start-up of a proposed piggery<br />

by providing loan funds, design and construction<br />

assistance and management advice<br />

- establishing a famer supply store for stockins<br />

and selling seeds,. fertilizers, ag-icultural<br />

chemicals, tools and equipment, and turning this<br />

store over to a Liberian entrepreneur willing to<br />

agree to PFP eupervision of pricing and credit<br />

pol icy<br />

- starting-a PFP unaged demonstration and training<br />

farm rith lodging facilities for 10 farmers and<br />

demonstration sites of irrigated rice, upland<br />

rice, cereals vegetables, trees, fish laming and<br />

pia raising<br />

- providing extension services to selected tamers<br />

and schools rithin a 30 mile radius of Yekepa in-<br />

cluding follor-up services to farmer trainees,en-<br />

cnuragenent and assistance to Young Parraer and 4E<br />

Club school groups and cooperative forration and<br />

manaffrment assistance<br />

- establishing a farm machinery and equipment exper-<br />

imental canter. <strong>with</strong> facilities for leasing, test-<br />

ing, servicing and repairing as well as training<br />

operators and mechanics and later, for producing<br />

intermediate technolog devices<br />

- in all of the aforelisted pmcram elements, to use<br />

the know-how and assistance available from GOL and<br />

other agencies and to involve local farners and<br />

traditional rural authorities in decision raking<br />

Funds are obtained for the avicultural and rural develoment<br />

The two year budget for this ubitious agricultural and rural<br />

development pmp;ram escsded originally coaitted PF'P program<br />

funds by 376,000. The budget additions included:<br />

Salaries and rages<br />

(Sr.advisor.2 ext.workers.lO d m far* writers) $33,400<br />

Fier vehicle purchase- and operation<br />

(2.4-rhetl drive vd1icles.2 notorcyeles) 20, S O<br />

Used tradr front loader(purchascr and operation) 14.mO<br />

Uaed fa= tractor (lease and operation) 2,<br />

Tools and supplies (deannstration f a ) 6,000<br />

74<br />

2 yr. total 376,000


Efforts started imediately to raise funds for this extensive<br />

addition to the original budget. A11 three principal donors, hmco,<br />

PACT, and ICFVK-XFUH responded favorable and eqressed apprwval of<br />

the proposed program to reach ;nor@ of Ninha County's rural poor.<br />

Each one added 310,000 to his annual grant. In addition, International<br />

Foundation for Science (ITS) of Stockholm Sweden, awarded PFP's<br />

Senior Agricultural Advisor, James Sirleaf, a grant of S24,OCKJ over<br />

a three year period to research ways to gpt aubsistance farmers using<br />

ilsproved nethods. It was. understood that the bulk of this grant<br />

would be used far developaent of the demonstration and trainins farn<br />

and related &ension prograsl. Yith S60,WO additional furdin$ from<br />

the three original doaors, and S16,OM) available from IPS for the two<br />

year period concerned, it na possible to preparm for implementation<br />

of the full agricultural and rural development program. .<br />

GOL gled-s an anicultural tool. and suualr inout<br />

The need for a program "in-kind" input of GOL approved seeds,<br />

tools, fertilizers, and agricultural supplies and chemicals became<br />

evzdent and ma made known to PIT'S kverping Council Qairman,<br />

Minister of Agriculture Leuis A. Russ. On his recoamendation the<br />

GOL agreed to grant a one tine f2J,000 supplr of these items to<br />

PFP for mle to local farrers, <strong>with</strong> a small percent for issue to<br />

school projects free of charze. P W wuld have to collect papent<br />

for supplies and tools distributed to faraers and repleniair its<br />

stock annually. This praved to be a better arrangement than PfP's<br />

previous method of i-ortlng agricultural itess fmm overseas.


PPP organizes and equips for the arricultural Droesaa<br />

h o h a agricultural graduates of Booker Washington Institute<br />

were recruited and hired as extension workers. An aqricultural<br />

mechanic volunteer was requested and provided by the U.S.Peace<br />

Corps. A Toyota jeep and 4 rheel drive pick-up truck were pur-<br />

chased for the Senior Advisor and the Animal Hushondry Advisor.<br />

Tno sturdy Yasraha mtorcycles were purchased for the extens~on<br />

workers. The Peace Corps mechanic immediately set about teach-<br />

ing the extension workers to ride and maintain their mator -<br />

cycles.<br />

The four rheel drives and !aatorcycles were necessary be-<br />

cause the Lamco scrapped and repaired Volksrapns, which rere<br />

all that PF'P had previously been able to afford, could not ne-<br />

gotiate the bush mads and tracks leading to the farms and<br />

schools in areas selected for extension assistance.<br />

Under overall direction of Senior Advisor, James Sirleaf,<br />

the Animal Husbandry .idvisor was given respansibility for as-<br />

sistance to the poultry farm, the two piggeries and the school<br />

Young Farmers Assoeiations and 4-H Clubs. One extension rork-<br />

er covered the rice project and vegetable Zamrs zn Yekepa<br />

and the Vest Ximba area, while the other me asslgned to the<br />

dcmaastration fam and the East Nimba area. Mr.Sirleaf person-<br />

ally supervised preparation of the demonstration and training<br />

farm.


Imulextentation besins<br />

Instead of treatins agricultural ventms as juat "ather<br />

enterprises to be encouraged and assisted ", PFP nor had an<br />

area agicultural development plan. This changed the appnach<br />

to impleaentation, especially :o the existing projects. me<br />

P?P i~ieted rice project in Yekcpa, rhid had been qun off<br />

to an organization of the foraer PFP rodera called Daila b-<br />

sociation, became an experiment in the viability of coopera -<br />

tive, acai-mechanized, irrigated rice production inatead of an<br />

enterprise *ich must be ade profitable or absndond, haistancr<br />

to mall-scale vegetable frrmera mu systaatized so that<br />

each karr rhat he could obtain from PFP aqd how and rben he<br />

'muld be erpe~tcd. to pay for it. This proved mrs- efficient and<br />

allowed amre faners to be assisted than thi previous s7.tgiving<br />

individual attention to each faner client.<br />

of<br />

Objectives of assistance to the PFP irticated rice mixed veceta-<br />

blc and tme fara are revised ~ ~


PFP began again to provide regular supervision and limited<br />

inputs. The manacer began replacing non productive members<br />

<strong>with</strong> more serious fanners. As part of roto-tiller design and<br />

performance testing, 11 acres were prepared for planting. Again<br />

seed and chemicals were provided on credit and planting resumed.<br />

As of the end of the Yekepa experlment's third year, the associa-<br />

tion appeared to be better organized and to have a chance of be-<br />

coming self-supportinq in the next year or two.<br />

There was some disa-eement among PFP staff and Governing<br />

Council members concerning the lessons to be learned from this<br />

project. Most staff memhers believed that PFP would induce more<br />

rice production by assisting small rural ,farmers than by assist-<br />

ing larger acreage farns, like Da-Ye-La,which requirrd manage-<br />

ment, cooperative effort, some mechanization, and production as<br />

well as financial planning. Therefore, they - recommended that as-<br />

sistance to the asspciation should be discontinued. Other staff<br />

and Council members believed that at least one such project<br />

should be continued, regardless of viability, in order to get<br />

the answer to a questinn which W W A (West African Rice Develop-'<br />

ment Association) claimed had not yet been answered: "Is irriga-<br />

ted rice productjon in Liberia econamically viable or rill it<br />

always require subsidy?"<br />

Pith the rationale that a people for whom rice is a .staple<br />

food must find viable ways to produce it, PFP continued to as-<br />

gist Da-Ye-La Assaciation.


Assistance to Ajavon Poultrr Farm is systematized and becomes<br />

more effective<br />

Scheduling visits by PW'a Animal Husbandw Advisor and<br />

systematizing inputs of transportation assistance had the im-<br />

pact of reducing PFP's overall involvement and -king that<br />

which continued more effective. As Ajavon ?am grew in size<br />

(capacity to house hroilers and layers) and sales volume, a<br />

reliable schedule of medication and inoculation became more<br />

important because of the larger loss risk.<br />

In its second year of operation the lam attracted =re<br />

institutional customers who aped to take a fixed quantity<br />

of broilers each month at 1 kilogram dressed, and a fixed amber<br />

of eggs according to a regular delive% schedule. The resulting<br />

opportunity for production planning made the enterprise<br />

more profitable. PW agreed to accept smaller wnthly<br />

repayments if the Ajavons would invest in a rater -stem and<br />

a hatchery to render themselves less dependent on imported<br />

chicks. During the rainy season, when mads were oft~n impassable,<br />

it was excessively expensive to obtain day-old dicks<br />

fm Honrovia.


A s of the end of PFP's third operational year, Ajavon<br />

Farm sales were averaging 54,000 per month (one quarter eggs,<br />

three quarters broilers and stewing chickens) <strong>with</strong> operating<br />

prefit at approximately 10% of sales. The $9,000 line of cre-<br />

dit from PFP had been paid down to $6,900. A penanent water<br />

system had been installed and feeding equipment was ordered<br />

from overseas and paid for in advance. Re-investment totalled<br />

approximately 51,600.<br />

The lesson learned in servicing this client was that re-<br />

liable advisory services, administered according to schedule<br />

and <strong>with</strong>in clearly defined limits, proved more helpful to the<br />

client and cost PFP less than the nore time consuming, across-<br />

the-board assistance which PFP had tried to provide previous-<br />

ly when requested or as needed.<br />

A Pigpry project is studied, cauitalized and imnlemented in record<br />

time<br />

- In February 1977 Mr. Jenkins hnbar, a Lamco genlogiat, proposed<br />

to build and operate a pigpry near Lnification Town (2 miles from<br />

Yekepa) to supply high grade pork meat to the comnunlty. This was<br />

the first time a client has prepared his own feasibility study and<br />

loan application. The study was detailed and fully documented. All<br />

that was required of PFP was to confin the validity of the land use<br />

documents, the building cost estimate, the operating cost and sales<br />

pro jectiona, and the mnagerial and technical qualification of Mr.<br />

Dunbar's brother, the proposed full-time project manager. All checked<br />

out satisfactorily. The loan committee approved S13,000 line-of-credit<br />

to Hr. Duahar <strong>with</strong> the proviso that the PFP Animal Husbandry Advisor<br />

muld visit the project regularly; that PFP's Accounting Advisar would<br />

participate in setting up record keeping systems; and that PFP would<br />

assist the project to grow and purthase local feeds.


Liberian entrepreneur, James Tabla. is eiven a loan and assist-<br />

ance to start a Farm Suouly Store<br />

Operating an agricultural development program in an area<br />

180 miles from the nearest source of farm supplies ras not prac-<br />

tical. Crops that were marginally profitable, at best, became<br />

unprofitable when excessive transportation costs were added to<br />

acquisition of seeds, fertilizers, agicultural chemicals,tools,<br />

equipment, sacks and bags, and general fama supplies.<br />

With an input of 84,000 from his om savings and a 86,OCO<br />

line of credit from PFP, James Tabla started constructing a<br />

roadside farm supply store just outside Yekepa in the direction<br />

of the majority of PFP assisted farmers. It was estimated that<br />

a starting stock of needed it-s would cost 57,000. PIT requested<br />

the Hinistq of Agrieulturm to approve a credit from<br />

(in the fora of.fam supplies wrth 87,000 at cost) to James<br />

Tabla ram! Suppl~ Store as part of the GOL "in kind'' farm sup-<br />

PI J input pledged to PFP.<br />

At the end of PFP's third operational year, construction<br />

of the store was 95% complete and the request for the stodr on<br />

credit ras being processed through the Ministry of Agriculture.<br />

James Tabla, a Lpmco employee, signed a payroll deduction au-<br />

thorization &errby reaular laanthly installments reduce his ob-<br />

lig<br />

James Tabla<br />

discus8e8 his<br />

store buildin<br />

<strong>with</strong> construe<br />

tion adriaor,<br />

Pete trwa


A demonstration and traininq farm is started<br />

Based on the belief that amall-scale farmers could be motivated<br />

to change farslng methods if they had seen, and,actually experienced,<br />

that improved methods increased y~elds, and the belief that a start<br />

must be aade to pass on to the small-scale farmer what has already<br />

been learned by research, PFP selected a 33 acre site 10 miles from<br />

Yekepa near Grassfields (where PFY staff reside) for a demonstration<br />

and trainlng farm. The site had a year-round water supply <strong>with</strong> .oil<br />

conditioes and topography suitable for upland rice, irrigated rice,<br />

vegetables, cereals, and potatoes. Moreover fish ponds wzth controlled<br />

in and outflow could be installed; there were areas for tree cmps<br />

requiring varying anaunts of shade; and a suitable spot for a piggery<br />

close to a water source existed.<br />

The long range (3 yr.) plan for this farm included development<br />

of vegetable and tree nurseries, demonstration crops, fish and tree<br />

farming, a supply warehouse, lodging for ten famer trainees, and<br />

provision of technical assistance and other inputs to a number of<br />

satellite production farms encouraged to start up on adjacent sites.<br />

One such adjacent site of 300 acres appeared suitable for fodder<br />

grasses to be used by local cattle dealers in need of fattening range.<br />

The track front loader, the leased Massey Ferguson farm tractor<br />

and attachments, and one power tiller were moved to the site to start<br />

clearing, tilling, levelling, and constructing ditches, buns and ponds<br />

according to an agreed upon land use plan. Meanwhile vegetable and<br />

tree nurseries were prepared and planted and fodder grasses recommended<br />

by Liberian A~ricultural Coqorat ion (LAC) were transplanted on test<br />

plots.<br />

A Ministry of Agriculture Research Station advisor requested PFP<br />

to conduct European potato trials on this farm because supplying the<br />

demand for potatoes required substantial importation, and upper Nimba<br />

County ras considered one of the few Iocations in Liberia <strong>with</strong> enough<br />

elevation and evening chill to support potato growing. Under care-<br />

fully controlled conditions, trials of ten varieties were carried out<br />

<strong>with</strong> promising results for four out of the ten.<br />

h o local farmers, encouraged and approved by PET, started<br />

satellite production lams for vegetables, cereals, fruit tree<br />

cmps, and various beans and tubers suitable for animal feeding.<br />

A supply and tool warehouse was constructed and the foundation slab<br />

for the piggery poured. Access roads, water canals and fish ponds were<br />

roughed out.<br />

-<br />

Initial vegetable and cereal trials indicated that wre extensive -<br />

insect control and soil sterilization would be required. United<br />

Nations specialist advisors from the University of Liberia farm took<br />

affected plant and soil sanrples for pathological analysis and sub-<br />

sequent control recommendations.


A stratem evolves for aelectina farmers and rural devel'aument<br />

qrouos to assist 1<br />

PFP learned the hard way that in selecting a farmer to as-<br />

sist, the fact that he had good land wirh irrigation potential<br />

and a good record as a farmer was not enough. Approval of PFP's<br />

selection by the village, clan and paramount chiefs, as well as<br />

by the Ministry of Local Government, was a1 so required, If<br />

these approvals were not obtained, the PFP assisted farmer<br />

would face all aanner of mysterious obstacles and social prob-<br />

lems.<br />

Rsrever tire consuming, there was na wa? to avoid the<br />

lengthy meetings and discussions <strong>with</strong> traditional authorities<br />

prior to selection of an individual farmer, or a farmer group,<br />

to be the recipient of PFP agricultural development assistance.<br />

Frequently tradirional authorities felt that other projects<br />

should have priority over farm iqmvement. PFP was requested<br />

to assist in installation of primary schools, dispensaries,<br />

adult education programs, improvement of vehicle access roads<br />

by culvert and bridge construction, and preparation of village<br />

market sites.<br />

PFP's strategy was to listen to such requests and help to<br />

estimate the costs involved. Village authorities were encour-<br />

aged to fprm "Village Development Committees" and to start<br />

raising money and organimins self-help labor groups. As tradi-<br />

tional authorities began to know PFP better, development com-<br />

mittes brought funds into the PFP office for deposit and con-<br />

ducted meetings in the PFP office to establish priorities and<br />

authorize expenditures.<br />

In the position of trusted advisor to a Village Develop-<br />

ment Committee, PFT cauld get the members to include some ag-<br />

ricultural development pmjects along <strong>with</strong> other desired amen-<br />

ities. On a number of occasions it proved advisable to assist<br />

<strong>with</strong> the committee's om priority projects before sugffesting<br />

income generating agricultural development.<br />

One committee rented a bridge to their village so that<br />

trucks and taris could reach the village on market days. Al-<br />

though the self-help labor and fund raisin^ fell far short of<br />

that promised, PFP completed the bridge as a contribution to<br />

the village. The day after the bridge opening ceremny, a Pfl<br />

vehicle attempting to cross was stoppd by the chief, rho had<br />

rlaced himself under an umbrella on a folding chair in the<br />

middle of the bridge, and asked to pay a 251 toll. This evi-<br />

dently was the village chief's om -ray of converting an in-<br />

frastructure develoPatent into an income generating project in<br />

order to satisfy the PFP advisors.<br />

'<br />

-


On other occasions PFP, the P?3CA, and the Yekepa Rotaq<br />

Club joined forces to assist villas development cormnittees<br />

to construct and furnish schools, open dispensaries, impmve<br />

roads, install latrines, and conduct evening adult literacy<br />

courses. While these activities rere contributive to develop-<br />

ment, they rese looked upon by P P as essential steps in win-<br />

ning the confidence of the rural people rho would later be pr-<br />

suaded to increase their agricultural productivity.


Aericultural extension services are re11 received and effective<br />

bring early experimentation in 1974, groups of local far-<br />

mers were brought in to observe the PFP irrigated rlce project<br />

in Yekepa. Ten such farmers who ranted to try irrigdted rice on<br />

their own plots had adequate rater sources. PFP's advisors car-<br />

ried out survey and land development planning and started these<br />

farmers preparing dams, canals, paddies and buns. The work was<br />

done using local hand labor equipped <strong>with</strong> shovels, wheelbarrows<br />

and other tnols borrowed from PFP. These farmers prepared small<br />

irrigated rice paddies and planned to add approximately one quar-<br />

ter acre of paddy each year.<br />

PIT inputs such as seed, fertilizers and insecticides were<br />

issued OR credit and paid for after harvest in bags of rice.<br />

The constant demand made a bag of milled rice equivalent to<br />

cash. On occasiona, the farmer would be loaned up to SlW to<br />

buy toola, hire day labor and pay for milling and transport.<br />

As PFP grew in its capacity to provide agricultural ex-<br />

tension, the credit system nas formalized. S3,000 of the aecd<br />

capital loan fund was approved for small loans to farmers (max-<br />

imum $300 to any one farmer) to be administered by the PF'P ex-<br />

tension workers.<br />

Progress made by these original ten farmers led to the<br />

~onclusion that more total rice production could be induced<br />

via small farmer extension service than via lar-r and more<br />

difficult to aanage collective type farms.


A farm machinery and e~uioment center is established<br />

PFP's earliest requests for technical information on mall<br />

enterprise technology and agricultural equipment for small far-<br />

mers were to the International Rice Research Institute (IRRI )<br />

in the Philippines, to Intermediate Technology Development Gr-<br />

oup (ITJIG), London, and to Volunteers in Technical Assistance<br />

(VITA), USA. A11 have been responsive and helpful. IPIU aug -<br />

gested that PFP should consider producing low cost motorized<br />

roto-tillers and other farm equipment according to simple IRRI<br />

designs tested and found satisfactory by small-scale rice far-<br />

mers elsewhere. Because Liberian subsistence farmers have no<br />

source, or experience, of animal traction, PFP decided to pur-<br />

sue IRRI's suggestion and obtained prototypes of the proposed<br />

tiller for testing fn upper Nimba. . .<br />

Meanwhile FFP had been accumulating intermediate technol-<br />

ogy farming equipment such as foot treadle rice threshers,par-<br />

boiling drws, water pumps, stump pullers, insecticide spray-<br />

ers and harvesting knives as well as some advanced technology<br />

equipment such as a Yanmar diesel power tiller, a Caterpillar<br />

track front loader and a leased Massey Ferguson 135 tractor<br />

<strong>with</strong> plowing and discing attachments* PFP purchased some of<br />

these items and collected and repaired others from scrap yards.


During PFP'a third year it became evident that a shop and<br />

-bile repair facility for agic~ltural IUaChinery and equipment<br />

rould be needed to:<br />

- service and repair<br />

- modify and test<br />

- design and produce<br />

- train Liberian agricultural mechanics<br />

Since this mrk had been centered at PIT". industrial es-<br />

tate in Yekepa, it ras logical to arrange With Atlmtic Autow-<br />

tive Services (the tenant) to allocate apace in the estate shop,<br />

storeroom and yard for PFT to operate an agricultural machinery<br />

and equipment center. According to this arrangement, PPP<br />

use Atlantic's machinery and equipment for experimental TO& on<br />

agricultural items and for training apprentice mechagica. ~lm,<br />

when production of ag~icultural machines or equipment should become<br />

essential to development, or e~onomically fraaiblr,or both,<br />

then Atlantic Automotive Services muld be given the opportunity<br />

to undertake manufacture and assembly.


PEACE CORPS VOW- S I G ?<br />

TO PFP<br />

P3ZE UXSQN, ADDISON SALiEXS,<br />

Construction Specialist laad Utilization Specialist


SFTOND AND THIRD YEAR O'lXER ACTIVITIES<br />

PFf continued to engage in development activities which would<br />

not be classified specifically as industrial, commercial, or<br />

agricultural. These were:<br />

1. Provision of credit and emerimental investment<br />

In summary, results of operating the seed capztal loan fund,<br />

providing lines-of-credit from program funds, and guaranteeing<br />

bank loans, were approximately as follows:<br />

In its three operational years PFP had extended credit,<br />

loaned, or guaranteed bank loans to 12 entrepreneurs and the<br />

Yekepa W A . These credits totalled 573,000. The largest were<br />

915,000 to National Uoodrorks; 513,000 to Jenkins Dunbar piggery;<br />

99,000 to Ajavon Poultry Farm; and S8,OCO bank loan guarantee on<br />

behalf of Jones Electrical contractor; and a $6,000 line-of-credit<br />

to James Tabla farm supply store. All othem were less than 53000.<br />

Two borrowers had fully repaid. A11 others except one were making<br />

repayments on schedule. Olma '77 diner owed PFP $2,948 and was<br />

listed as delinquent, but not written off. Ajavon Poultry Farm's<br />

monthly repayments had been reduced and rescheduled to effect full<br />

repayment in 5 instead of 3 years.<br />

In program funds to finance experimental projects which turned<br />

out to be poor investaents, or projects which did not become viable,<br />

PFP m t e off a total of S35,CQO ($20,000 spent on the irrigated<br />

rice, nixed vegetable and tree farm, and 513,000 on Humble's Inn).<br />

2. Cuttincton Collew student intern urosram<br />

king the summer break, fmm July 1 through, August 7, six<br />

students came to Yekepa in 1976 and 1977 for employment as student<br />

interns in local enterpriaes such as Nimhaco, Nonitco, Buff Bakery,<br />

National Yoodrorks, and hmco. hmco provided housing. PFP<br />

directed the program, arranged the employment, and organized an<br />

evening discussion and observation seminar program for the students.<br />

Cuttington's Business Administration faculty and local entrepreneurs<br />

who provlded employment all agreed it was worthwhile and should be<br />

continued. PFP learned from this program that entrepreneurs in<br />

Yekepa were receptive to any method of attracting employees who had<br />

the edueatioq and ethical training provided by Cuttington College.<br />

3. Contractor trainlns? and rural indusfrv'develoument<br />

In mid-1977 the US Peace Corps assigned volunteer con-<br />

struction specialist Peter hason to PFP. He started ime-<br />

diately to rork as advisor to several -11 contractors who<br />

had attended Pn's earlier contractor course and shorn gm-<br />

th potential since. One project which could be classified<br />

a8 on-the-job training for a promising rural contractor was<br />

improvement of a prima- school in the rural village of<br />

Giaapa. The materials for this impmvement were provided by<br />

a pant from a special development fund admxnlstered by the<br />

American Ambaasador.


Discussions were started <strong>with</strong> Lamco's General Yana~r<br />

and Chief Civil Engineer concerning the spinning off of non-<br />

Lamco work. fomerly uadertaken bp the company's Civil Engineerinr<br />

~~~~~ ~ - Denartmeat, . to local contractors rho rould be organized.<br />

assisted and advised by PFP.


4. Miscellaneous Volunteer Work<br />

A l l rives of PFP staff members, except those fully er-<br />

ployed,engaged in volunteer development projects.Mrs.Butler,<br />

a silk screen cloth printing specialist, worked full time<br />

<strong>with</strong> Y-Craft; s O e i 1 1 wife of PW's first Agricultural<br />

Advisor, divided her time between Y-Craft and small enter-<br />

prises needing temporary.sales assistance; and Hrs. Taylor,<br />

wife of the Accounting Advisor, conduct& evening adult li-<br />

teracy cnurses in Grassfields and Gbapa.<br />

PFP's General Manager served as President and Board Mm-<br />

her of Nimba Rotary Club, as member of the YXCA and Y-Craft<br />

Boards, and on committees involved nth community social<br />

services and improvement projects. Uherever and whenever PF'P<br />

staff are requested to speak, consult or advise, an effort<br />

is made to respond positively. PFP staff members have serv-<br />

ed on discussion panels at the University of Liberia, as<br />

guest speakers at Peace Corps Training programs and as con-<br />

sultants to other mining companies' comnity viability ef-<br />

forts.<br />

Conclusions Discussed<br />

During the second and third year of operation,the Govern-<br />

ing Council became increasingly active in giving direction to<br />

PFP's programming and budgeting, in monitoring progress, and<br />

in constructive recommendations leading to Liberianization of<br />

the PFP staff and eventually of the overall cornunity viabili-<br />

ty function which appeared to have application to other con-<br />

cession areas as well as to Lamco's.<br />

Some members felt the Yekepa Experiment should be allow-<br />

ed to progress at the pace and on the course already establi-<br />

shed, and others believed that the Liberianiaation and insti-<br />

tutionalization should be accelerated.<br />

All agreed the experiment was making progress and should<br />

be continued. Also, the consensus was that the Yekepa Erperi-<br />

ment's first three years were promising enough to be mitten<br />

up as a model for application to concession areas elsewhere.


OUTtOOK FOR THE NEXT TUO YEXRS<br />

With the hope that agencies funding the Yekepa Experiment<br />

would consider it worth continuing, a full program for the next<br />

tm years was projected. A11 second and third year program ele-<br />

ments and activities rere to be continued or augmented. Efforts<br />

to attract foreign sponsorship and technical cooperation for en-<br />

terprises in Yekepa rere to be intensified. Againat the possi-<br />

bility that funding might be reduced, an alternative budget re-<br />

flecting donor preferences and one third less general program<br />

support also had to be projected.<br />

One donor aeencr may be unable to continue financial auowrt<br />

Unfortunately, KEVX-ILRR( ( Swedish Association of YW and<br />

YMCAs ) #bay be unable to obtain funding from SIDA (Swedish In-<br />

ternational Development Authority ) to continue support of the<br />

Yekcpa Zxperiaent beyond the three years already funded. Reasons<br />

given reflect the prevalent opinion of government technical an-<br />

sistance agencies that, " any program mrth supporting in Afri-<br />

can development should be institutionalized or become self-su-<br />

fficient in no longer than three years ". While the XFWX-KFUW<br />

SIDA funds have been essential to the program, it has been c-<br />

qually important to maintain the high level of participation and<br />

moral support afforded PFP by Scandinavians working for Lamco<br />

who felt confidence knowing that the Smedish Government support-<br />

ed the Yekepa Experiment. The staff conducting the experiment<br />

has had an international flavor which pcluded ideological mo-<br />

tivation. nether or not XRlK-PTUn support continues, nothing<br />

dould detract from the value of the funding and support already<br />

provided.<br />

Reducine the budeet alters W ' e caoabilities<br />

Vith the possibility of general program funds being redu-<br />

ced by oae third, staff cost reduction became ismediately essen-<br />

t1al.m rill not replace the Swedish Economist/Coarrercial advi-<br />

sor, the American Agri-businesa Advisor nw the Dutch Forestry/<br />

loodrorlcing Specialist; all of whom finished their tours in the<br />

last half of 1977. Overseas staff in 1978-1979 rill include a<br />

General Manager, poaslbly an Accounting Advisor, two or three<br />

U, S. Peace Corps volmteers and occasional short-tern consult-<br />

ants. One agricultural mechanic apprentice rill be added to the<br />

exiating Liberlan staff of seven. PFP's capaczty to assist indu-<br />

strial and coraeercial enterprises rill be seriously reduced, rb-<br />

ile capacity to assast agricultural and rural developsent proj- -<br />

ecta rill be augmented. Vith the exception of kco, donor agen-<br />

cies tend to support this change in emphasis. It appears diffi-<br />

cult for personnel in these agencies to comprehend that the Ye-<br />

kepa Erperiment has ob~ectives which do not always coincide wi-<br />

th those of typical Afncan development programs. For example ,<br />

"making Yekepa a viable cityn is not entirely consistent <strong>with</strong><br />

"reaching larger numbers of the rural poor". Andncrsatfng xndua-<br />

trres <strong>with</strong> a multi-mllllon dollar aggregate sales potentialndoes<br />

not colncide exactly wlth " achlevlng tntal Libermnization of<br />

PfP m three years or less ". 101


The propram for 1978-1919 incornorates exoedient chances<br />

PFP's 1978-79 proqam is not ideal for achievement of the<br />

original Yekepa Experiment objective. It is an eqaedient pro-<br />

gram reflecting donor agency priorities, Liberianization eapha-<br />

sis and the possibility of reduced funding. Because funding Zor<br />

aqricultural, handcraft and rural developmeat is more easily ob-<br />

tained, these elenents of the program rill be augmented, rhile<br />

assistace to larger enterprises will be phased back to Janage-<br />

aent consultation. Lirect PFP accounting involveaent rill be<br />

limited to enterprises which are new or in foraation. Technical<br />

assistance to industrial and commercial enteqriaes rill be avai-<br />

lable only if the enterprises can afford to import short-ten<br />

consultants. Aspiring entrepreneurs rill be.encouraed but rill<br />

not be assigned to a qualified business advisor for intensive<br />

start-up assistance as in the past.<br />

Increased renortine burden reduces productive staff time<br />

The aforementioned anticipated changes in program and op-<br />

erating strategy also reflect the increasinq burden on the PFP<br />

staff of reporting requested by the donor agencies and Gavern-<br />

ins Council. At present, progress reports, program projections,<br />

budgets, requests for funding and financial statements take sore<br />

than one quarter of PFP's senior staff and clerical time. With<br />

the projected mix of specific project.3rants from additional sup-<br />

port agencies, the reporting load rill increase because each a-<br />

gency requires a different type of reporting. In anp one quarter,<br />

for example, PFPfiiberia aust prepare and distribute the follow-<br />

ing reports, some to as many as 25 recipients:<br />

Progress report on the over-all pro-<br />

gram <strong>with</strong> details on each enterprise assis-<br />

ted and project or activity undertaken.<br />

Breakdown of staff time and cost by<br />

enterprise assisted and project or activi-<br />

ty engaged in.<br />

Table of objective achievement list-<br />

ing enterprises assisted, jobs created,per-<br />

sonnel trained, new projects started,sales<br />

volume of agricultural and non-agricultural<br />

enterprises assited and amount of invest -<br />

ment attracted. This table must also show<br />

cuaulative results since the Yekepa Zxper-<br />

iment started, revised projections for the<br />

next follow in^ quarter and for the next<br />

three years.


Program projection for the next f'ol-<br />

lowing quarter, i..cludinrr in detail, obje-<br />

ctives of assistance to each enterprise,-<br />

ticipated achievement, objective of each<br />

proposed project and activity, estimated<br />

number of people directly and indirectly<br />

benefitting, proposed use of staff and ra-<br />

tionale for same.<br />

Financial reports including balance<br />

sheet, income and expense statements, loan<br />

fund status, relevant schedules of receiv-<br />

abf es and payables and vouchers support ing<br />

all expenditures in excess of $25.<br />

Budget for the next quarter reflecting<br />

minxmum income, maximum income and expected<br />

income (income is never assured because<br />

minor inicidents such as delayed<br />

mail or verbal obse~vations of an evaluator<br />

can cause changes in grant payment<br />

schedules and funding commitments).<br />

Condensed versions of progress and<br />

financial reports, projections and budgets<br />

for distribution to various boards.<br />

Foreign employee report <strong>with</strong> details<br />

of employment terms, visa and work pennit<br />

dates and numbers.<br />

In-kind input distribution report<br />

liating distribution of agricultural equi-<br />

pent and supplies by recipient including<br />

payment terms and physical inventorg at<br />

beginning and end of quarter.<br />

Technical agricultural reports of<br />

progress on variety trials and equipment<br />

emerimentation for specific donors, re-<br />

levant GDL departments, cooperating agen-<br />

cies and need suppliers.<br />

These are not all of the repnrts PFP must prepare.<br />

TBete are anaual reports, audltors reports,feasibility stu-<br />

dies, meeting agendas and minutes and special rsquest re-<br />

ports which must be compiled, duplicated and distributed . -<br />

As one staff member put it, " Does PFP rant to nake prog- -<br />

ress or report progress ? We haven't time to do both. "


Cnnclusions discussed<br />

For the first three years of the Yekepa Experiment, PFP<br />

staff memhers.after a settling in period, worked <strong>with</strong> unusual<br />

dedication because they understood and believed in the objec-<br />

tive. A11 felt that they were participatins in an experiment<br />

which. if successful, would make a cnntribLtion toward correc-<br />

ting an unjust pattern of human exploitation which had been<br />

tolerated too long.<br />

Some staff members came to PFP prepared to distrust all<br />

multi-national concessionaires, especially mining companies.<br />

Those who had worked before on development projects near oth-<br />

er concessionaires in Africa we= familiar <strong>with</strong> " token devel-<br />

opment activities" and the typical, highly-publicized, sinor<br />

contrihutions concessionaires make for political favor. These<br />

same individuals later praised Lamco for its genuine efforts<br />

to create lasting development. They rated hmco as " head and<br />

shoulders" above any concessionaire they had observed in Af-<br />

rica.<br />

In recent staff meetings to discuss the Yekepa kkperi-<br />

ment's next three Years, there is genuine concern that the<br />

experiment is somehow beins eroded and turned into ''just an-<br />

other mderately effective development prngram". The satis-<br />

faction inherent in seeing companies like Sational Woodvorks<br />

grow from small artisan shops to industries keeps PW male<br />

high. PFP is known as an imolementine agency and compared fa-<br />

vorably <strong>with</strong> agencies which are known as study and recommend<br />

agencies. There is concern that PW's reduced capacity to ad-<br />

vise by actual participating assistance rill adversely affect<br />

its progress toward achievement of the viable coararunity ob-<br />

jective.<br />

The staff recognizes and appreciates the constructive<br />

role of the agencies which have supported the Yekepa Exper-<br />

iment so far and hoper that these agencies rill enable PFP<br />

to capitalize on the promising three year start and continue<br />

this unique and important experiment.


-.<br />

Recommendations to follow are addressed to officials of<br />

Governments hosting concessions and multi-nat ional ventures,<br />

and to officials of companies operatinc, or proposing to<br />

operate, as concessionaires in developing nations.<br />

The first recommendation is to read "The Yekepa Hadel"<br />

because subsequent recommendations are derived from the<br />

experience described therein.<br />

Crestine a viable community should be renarded as a urimarv<br />

paraose, not as a poasible br-product, of the concession venture<br />

Creation of a viable community which can be sustained after<br />

the concessionaire departs should be the jornt responsibility<br />

of the concessionaire and host government. A plan to achieve<br />

comnity viability, and a relevant time schedule and budget<br />

should be presented as part of the investment proposal in<br />

the concession apreeaent. The proposal should be subjected<br />

to the scrutiny of capable and impartial consultation to<br />

assure its practicability. Implementation of the plan should<br />

be given high priority and scheduled to begxn when the<br />

concessionaire starts operation.<br />

An experienced develonment aeencv shotild be invized to manaee<br />

the viable communitp prowam<br />

A number of conce~lionaires endeavor to manage their om<br />

community viabiIity programs. There are several reasons WM<br />

this doesn't work as well as getting a development agency to<br />

manage the program. These are:<br />

a) when the concession coatpany manages the commnity viability<br />

effort, the company becomes more dominant instead of less<br />

dominant, and local citizens tend to "let the cosrpany do<br />

the mrk" instead of developing initiative and self-reliance<br />

h) concessionaires are profit-slaking enterprises, therefore<br />

they are not eligible for assistance from government and<br />

non-prof it sources of development financing<br />

c) a company managed community viability program is suspect<br />

because it appears to be an effort to increase profit by<br />

gottins lor cost goods and services for the company and<br />

employees<br />

d) concessionaires usually assign one executive to community<br />

: development who is regarded as "humanitarian" and therefore<br />

conversely "doesn't work well <strong>with</strong> our no-aonsense management<br />

group". Cnfortunately his removal from line authority often<br />

renders him powerless to get the cooperation the program<br />

needs from the company<br />

e) the community viability program should be designed and managed<br />

by experienced development personnel who spend full-tlme on<br />

the program and cultivate the confidence of the local cltizens<br />

on whom success will eventually depend


Publicize- the procram thorouehlv<br />

There is so much opportunity for misunrlerstandinq a com-<br />

munity viability pm.vam, and as a result, for local authori-<br />

ties and citizens to feel resentment and set up mad blocks,<br />

that it is vorthrkile to publicize the propram thoroughly.<br />

Pub1icit.v should describe the pro.gram, its purpose, how it<br />

will be carried out, and stress that it is the local resi-<br />

denfs own pmqram, not the concessionaires, and that it has<br />

been apvmved by the host guvernment. Publicity should also<br />

define what type of enterprises or agricultural ventures are<br />

eligible for assistance and how, where. and what kinds of as-<br />

sistance may be requested.<br />

In addition to local publicity, the proposed p r o w<br />

should be written up and distributed to agencies which mi&<br />

be willinq to underwrite part of the cost. In preparinq such<br />

requests, it helps to have a few photogenic experimental pro-<br />

jects already underway. These shor~ld be labor intensive,<br />

should involve women and if possible, should include handcraft<br />

development. They should be projects a visitor rould enjoy see-<br />

ins. A noisy sarmill employin_s 160 mrkers rill not ereate as<br />

much good rill as a small artisan enterprise in which three<br />

women are weaving country cloth on a hand loom.<br />

Yake sure that practical advisors are recruited and hjred to wn<br />

the uroeram<br />

Community viability pm.vams require a lot of doinc and cxperi~entation<br />

as opposed to schnlarly study pmducins recommendations<br />

which, thourn sound, never seem to set implemented. An<br />

advisor might be presentinp a proposal to the concession Board<br />

in the morning and up to his raist in mud testing a rota-tiller<br />

the same aftemnoan. Advisors <strong>with</strong> educational qualifications but<br />

little work experience seem unahle to cope <strong>with</strong> the ride range<br />

of activities they must enpage in tn be effective<br />

Advisors should be encouraged to become part of the connunity,<br />

to join businessmen's associations and clubs and to voluateer<br />

for cornunity service projects such as decoratinq for<br />

Christmas, orqnizing children's festivals and supervising .voung<br />

adult recreational prnprams. While propm priorities should be<br />

stressed. a creative individual advisor may come up <strong>with</strong> a "new<br />

approach" or a previously unidentified business opportunit.v<br />

which is not included in the profram projection accept& by<br />

donor agencies. It is better to turn the advisor loose <strong>with</strong> his<br />

om concept or project than to restrain him and eventual!r discouraae<br />

his initiative. Moreover, it is much easier for a program<br />

aanacer to pull the reins evey so often than to have to<br />

huild a fire under the advisor every morning to get biwher<br />

aovinz. Constructive deviations from the projected pro- ram are<br />

usually accepted in pod faith by bverning Council.= or donor<br />

apnci~s. provided thcr are successful.


Development boils down to ~xchanqe of informat ion and ideas<br />

and transfer of enthusiasm from one individual to another. It<br />

takes place more readily if both individuals are enjoylng them-<br />

selves. An advisor who feels frustrated will transfer that feeling<br />

to his client and be less effective.<br />

Orpanize the develovment azencv for the .job to be done<br />

Normally enterprises to be assisted can be categorized as<br />

industrial, commercial or agricultural. Other development<br />

activities are mostly in training, education and disseminatin~<br />

infomation. Advisors will tend to be specialized by functional<br />

activity such as a mechanical maintenance, construction,<br />

financial management, technical management, or market in^;. Some<br />

client enterprises will require the services of several advisors<br />

It would appear from the experience in Yekepa that the develop-<br />

ment agency organizationally should be divided into two sections:<br />

1, Industrial, commercial and other services<br />

2. Agricultural, Agri-business and Rural Development Services<br />

Advisory sesvices to industrial and commercial clients are<br />

more effective when responsibility for each c1i.ent1s welfare is<br />

delegated to one advisor who can provide the services the client<br />

appears to need most. The advisor In charge, can then enlist the<br />

participation of other advisors as needed.<br />

Control the amaunt of innut into the oroaram<br />

It is possible for the concessionaire's good intent to<br />

get the community viability program into difficulty. For example,<br />

the program will probably include some agricultural<br />

development on land cleared for the purpose. The developing<br />

agency managing the program may have worked hard to motivate<br />

a group of fasmers to clear the land by hand labor as a first<br />

step in the process of learning to participate in self-help,<br />

cooperative endeavor. The concessionaire's civil engineer observes<br />

the project and decides to make a contribution to it.<br />

He sends a Caterpillar D-8 tractor, <strong>with</strong> operator, which completes<br />

in one afternoon the work which the fanners had planned<br />

to complete in two weeks. Wile the contribution advances<br />

the project, it creates a problem. A few nmnths later the development<br />

agency is trylng to organize a self-help swamp clearing<br />

project. Some of the same farmers are involved. When they<br />

appear reluctant to start the work, the reason comes out as<br />

fol lows, "The work too hard, bring hul ldozer."<br />

Unfortunate1 y,<br />

sramp clearing cannot be done by machme. This is only one<br />

example of the need to control inputs.


It is possible for the community viability proqam to be too<br />

re11 financed. If mney, advisory services, and equipment are<br />

doled out too lavishly, the community ia apt to become as dependen-t<br />

on the development aqency as on the concessionaire. In any develop-<br />

ment effort aimed at creating sustainable proqress, there is a fine<br />

line hetween too much and too little input. Only experience rill<br />

identify this line in each situation. Advisors usually develop a<br />

sensitivity rhich helps them to recognize the difference betreen<br />

"pushing too bard" for achievement of an agency perceived coal, and<br />

"encouraging and assisting" local citizens to achieve pals of their<br />

om perception.<br />

Another illustration of the need to control inputs is in the<br />

foregoing text. The good intent of the concessionaire in exfending<br />

credit to an ailing enterprise increased the dimension of the problem<br />

and delayed corrective action.<br />

Perhaps it is possible to move precipitously, <strong>with</strong>out adequate<br />

study and planning; but more often projects requiring the participa-<br />

tion of several agencies get bogged down because each agencr delkvs<br />

decision by asking for an "analysis of the political and ideological<br />

implications"; a "more thorough investigation"; "more detailed<br />

feasibility study"; or a "more complete achievement time-table".<br />

Development consultants can identify agreed upon goals; rough out a<br />

propam; describe hasic strategy; and outline an implewnration plan.<br />

They can also make an educated estimate of the annual budget. .Asking<br />

wre from them is forcing them to he irresponsible, at best, and<br />

possibly to be dishonest.<br />

The reason programs involving enterprise development cannot be<br />

projected in detail is that the natuie of the process is to be responsive<br />

and motivational rather than directive. Therefore no one can project<br />

in detail exactly the form in rhich development rill take place,<br />

Before any entrepreneurial endeavor becomes a specific development project<br />

to be assisted, many unpredictable feasibility elcarents must fall into<br />

place. There must be a market, a saleable product, required technical<br />

capability, a production facility and possibly transportation as =ell,<br />

start-up capital, entrepreneurial motivation (rillingness to risk), a<br />

competent advisor, and, above all, aenagerial talent. If, after visiting<br />

a development site for a few days and talking <strong>with</strong> several local<br />

citizens, a consultant professes to he able to forecast den, and hor<br />

may times, and specifically for diet enterpriscs, all these feasibility<br />

elements rill be in place, tben the consultant is probably being<br />

pressured by the belief that program support rill not be -tcd unless<br />

he makes highly imaginative projections. - -


Ideological and political implications are not relevant<br />

to the job to be done. Whether the host government leans toward<br />

cooperative and parastatal enterprise or private enterprise<br />

doesn't mtter. Enterprise rill still have to be managed<br />

efficiently to make a contribution to development. In fact,<br />

cooperative and state sponsored enterprises require more sophisticated<br />

management than private enterprises because decision<br />

making in them is cumbersome.<br />

Political oratory about exploitation, unrealistic dearands<br />

concerning the replacement of expatriates, and over-opti -<br />

mistic promises of achievement may have the impact of temporarily<br />

slowing up development progress, but these are also irrelevant<br />

to the job at hand. There are no short-cuts, nor any<br />

oagical solutions to improving living standards. Living standards<br />

improve along <strong>with</strong> ability to increase productivity and<br />

become self-reliant. Assisting in this process as a " partner<br />

from overseas " is a satisfying and enjoyable kind of work.


- ------ -- -.-------. -- _ - _ -. .________<br />

CIxb P. 8uQr<br />

Galc/o<br />

Luneo I.V. b -YdLagl<br />

E0teSlmavrra.l~<br />

!.i&N<br />

PF'P has prepared a report based on its experience in Yekepa.<br />

The report is entitled, " Realizing the Dcvelopent Opportunity Creat-<br />

ed by an Iron-ore Mining Concession in Liberia ". The purpose of the re-<br />

port- is to help other governments and concessionaires to design community<br />

development pr.ogarns.<br />

PFP would like the repart to be as realistic as possible. Therefore<br />

re are asking for permission to use the example of your enterprise in the<br />

attached text along <strong>with</strong> some relevant photographs. Please sip opposite<br />

the name of your enterprise if you agree that the text is a fair presen-<br />

tation of its progress and its experience <strong>with</strong> PFP, and thereby grant us<br />

peraission to publish and distribute the report.<br />

Thank you in advance,<br />

Ajamn Poultry Farm<br />

Buff Babery<br />

MCA-<br />

Daila dswc.<br />

Cuttington College<br />

Elu. Contractor<br />

Workers lunch mom<br />

Cinema<br />

Nimbaco<br />

Hanitco<br />

National Woodworks<br />

NRCC<br />

Olma '77<br />

Jelco<br />

?i . Xilton Supermarket<br />

Humble's Inn<br />

J. Dunbar Pigpry<br />

Atlantic Hators<br />

Fara Supply Store<br />

Lamco<br />

Person to sizn<br />

F. Ajaron<br />

S. Hamn<br />

0. Alnesjo<br />

D. Kihkpin<br />

.* zuu<br />

E. n01mes<br />

n. C~OPCI.<br />

C. Preenran<br />

J. Uughes<br />

J. Kromah<br />

8. Houston<br />

B. nouston<br />

P. us0<br />

D. Joaes<br />

X. nilton<br />

J. Collins<br />

J. Rwbar<br />

8. Kulaik<br />

J. Tabla<br />

8. Astrand<br />

-


(Is of Dec. 50, 1572)<br />

ktsmzl Prozzress<br />

- staff tr?a ad Liber',ac;izatioa<br />

- stzategy development<br />

- operating efficiency<br />

- capaci- to serve 2nd ex;?=&<br />

- limes <strong>with</strong> other ae2cies<br />

- fund rzising<br />

- event& iasti'=i;tioralization<br />

- tvduztion<br />

- s- of 1978 Resource Allocation<br />

- PFP heged pro2ects<br />

- eatenrises vsisted by E5Z<br />

- cevelopment aciAi,vities<br />

--i-<br />

- entenrises crezeet? zs 2 zesult oZ ~ 2 2<br />

i?vol-re=ant<br />

Gue stiioa : How i ' has ~ the Yekepz Comdq advacet tow&+ I2s<br />

objective (i-e. econcnic vtabEtj L-m-OE<br />

depletior)?<br />

Objective: Creete emplopent for WC.0 cenos and eaee~rises<br />

wit5 qgzagzte mual income from sales of S50,CCO,C00<br />

per yea to rcn tke carzzmitg.


An organization like 2FPLiberia which will not be Geiznanent<br />

in LiSeria 2nd eventudly will pass on its firnctions to 1<br />

local iastitations, mus~ conslder the internal. develo~nent of its<br />

Liberian staff znO its capacity to work -*:thin the hos~ nation's<br />

overall developent ezfort to be as iapor';ant as the achievement<br />

of specific external. pojecz objectives. Develo~ment is a never<br />

ending process. Bfter an iditid stinulus from outside, the area<br />

concerned must acquire the capacity to initiate and sustain progress<br />

from its own enthusiasm and resources.<br />

Staff T-rejninc and Liberianization<br />

In 1974, when PE?? started, the'permaaent staff was 6 expatri-<br />

ates, (a general manager, and 5 ST. advisors) and 2 Liberians (a<br />

jr. addor and a secretary).<br />

Today the permanent staff is 3 expatriates (a gsn. sgr., an<br />

evaluator, and an appropriate technology advisor) and 7 Liberias<br />

(a deputy general manager and sr. advisor, an accounting advisor,<br />

an office manager, 2 extension workers, a vehicle administrator,<br />

and a heavy-due machine operator.<br />

Xon pemanent staff includes three Peace Cons Volunteers (a<br />

constzuction specialist, a surveyor. and a small business advisor)<br />

and a Liberizn-vegetable ~~ecialist'assigned to i%P by the go=.<br />

of Liberia (GOL).<br />

Liberian staff developent progress has been good <strong>with</strong> re-<br />

spect to the deputy gea. =, and sr. agric. advisor, the account-<br />

ing advisor, and the office manager. It has been fair <strong>with</strong> ;- ,: .<br />

respect to one extension worker and the heavy duty machine opera-<br />

tor. It has been unsatisfactory <strong>with</strong> respect to one extension<br />

worker and the vehicle rlaministrator.<br />

Peace Corps Volunteers assigned to FlW have made e e d<br />

personal developnent progress: for one, it has been excellent; for<br />

2, good; and 2 others left PFP before completing their tours, one<br />

for reasons of job dissatisfaction and the other for personal<br />

reasons unconnected <strong>with</strong> the job,<br />

Staff haring completed their tours <strong>with</strong> PFP and left have<br />

gone on to higher positions or Ugher education as the result af<br />

favordole personal development while eth PFP. - -<br />

Since PFP obtained the full-tine serpices of an evaluator,<br />

st& developnent via staff meetings and periodic discussions <strong>with</strong><br />

staff members on their perforsance (i-e. improved, stayed-the-same,<br />

or deteriorated and why?) has become regularized and more effect-<br />

ive.. = is still, however, a misbum of 5 gears from total<br />

Liberianization,


-aixenoting ts rescxe Lmc3 spk-cf l snte-~zises xEch<br />

were dooned beczuse they were too i~z-gt c& ccrqlox<br />

for the maagerial cepzcitJ of the iijer'ics 0%- -<br />

and operatihz tha.<br />

-starting md operat* an a&zicult~-al ,reject, then<br />

spinninp it off to the workers on the assuq*ioo ZLZ~<br />

they could ma2lzge it cooperz3:vely ad ~,-ofifzbly.<br />

-docat-g- too 1-e a percent ol m's total resouzces .<br />

to enterpri-ses which had exceptfom roaise =a capzcitg<br />

to enploy on the assmptioo tit a iotensive<br />

short te-m inout would get the entenrises stebXEzed<br />

and 2ble to progress on tbeir om.<br />

-assisting rzal farlllezs <strong>with</strong>out first - ~ the a2prc- ~ g<br />

val, confidence, and trust oi' tine town, cla z d<br />

county authoriti5es govednq the fh"3?er's hme tom<br />

a d the allocazion of fam. Lzr?Cs to WJiids.<br />

-respon- too i17-17 to requests bgr -mco, z mjor<br />

donor to -FEPts pogza, to do work -.iScL h d n-ation&<br />

develogmeat significace 'cut was outside Y2e scose oi'<br />

the FFP prcg-2 io Tekepa.<br />

-accep- doror preferences for grant 9'd uses az-5 uaderestiznathg<br />

the costs in gereral 2rcpm expexes<br />

hvolved i?r us- special. project g=zcts, dlso beover-optimistic<br />

about ability to a*act ge=erG<br />

proem f-m&,<br />

Today's strategy rev5siom kve corrected all of the above<br />

dstakes except the last. That one w:ll M e to be co,~ected<br />

i?r 1979 by e sajor decrease in procan actifitis to c; zo~tk-<br />

ly operat- costs mre +&in in half.<br />

O~erdl strate-, a directed by tfie Gov. Councii, UOcates<br />

a such larger percent of totd resocces to rzai deveiop<br />

sent, Rural development stratem req-es the hvolvenenz or'<br />

local authorities and people f=a pro,ject 3lr2.3 ti~-o~@ 1s<br />

campletion. PPE recoeaes the potentid multipker ei'ikct<br />

inherent in demaiistzam t.o ,wii pools w k t tineg cul do ir-<br />

They lee= to plan theLr own projects, ad o-*qa=ize '&ezxselves -<br />

to get work done. -<br />

Iitegated ru~d development o~erzzizq<br />

ef5ciency is satis-<br />

factory. &a1 develomert yrojecta teod TO 5e b~lmen:ec? cr<br />

schdde .&thin pre-detemed COSTS. %is refleczs the aciE7<br />

of PCV David Xeyers.


Construction contractor development and training by experience<br />

also is progressing satisfactorily reflecting the industq and<br />

dedication of PCV Pete Lawson.<br />

Agiculturzl developnent (i.e. demonstrar;ion/trai~ng fzn and<br />

agric. extension servlces to sinall farnefs arc ned2.m scaie anaal<br />

husbandry enterprises) progresses at an acceptable rate bur; te~s to<br />

run up costs in excess of budget because of vehicle and machinery<br />

misuse. Control oi' veiicle operazzon, first 1iae mintenance<br />

performed bg the operetor, and mechzinical awareness (i.e. when to<br />

stop a macMe because further operation will cause serious -age),<br />

all need substantial isprovement. In 1979, if operation of agricultusai<br />

machines and vehicles shotild exceed the anount budgeted for -<br />

the month, the vehicles and machines will have to be deadlined until<br />

more funds are available,<br />

Appropriate Technolog development progress has be.= steady<br />

but slow because much of the effort is expended in getting rhe<br />

Approp. Tecn, Center equipped to undertake a wide range of projects.<br />

The rural industrial experiments have mixed results. Ivhile the<br />

charcoal production enterprise appears viable for its owner, brick<br />

production has had to be discontinued until equipment designed to<br />

produce a lower-cost, higher qualie brick (i.e. a mechanicel clay<br />

mi:~er u?c? a better designed kiln) can be financed, conscsucted,<br />

installed, and put into operation. -0utsi;e consultation also nay<br />

be needed.<br />

?JT assistance and advisory services to industrial and commercial<br />

clients is satisfactory and produces acceptable results in<br />

terns of client enterprise improvement. In terns of meeting the<br />

demand, however, PFk's capacity to arovide essential accounting<br />

advi-sory services is spread thin which tends to reduce efficiency.<br />

Other PEP activities such as student intern programs, loan fund<br />

nrlmini'str&ti9n+ business nanagement trzjlling, fzm supply distribu-<br />

tion, and handcraft development need operat- efficiency -improve-<br />

uent. Although results achieved are bpressive, they are often<br />

achieved at too high a cost.<br />

Cauacirn to Serve and Emand<br />

As of this report, substaotial reductions in support grants<br />

projected for 1979 will necessitate consolidation and a decrease<br />

in capacity to serve,<br />

Wanes With Other Agencies<br />

Linkages <strong>with</strong> nan-govemental and GOL agencies reached a -<br />

peak in 1978, EPP now has- "working link2ges1' <strong>with</strong> County Gov-t; -<br />

Gniversities and 'Pechnical. ~~g Institutions; Mbistries of<br />

Agriculture, Planning, and Finance; all GOL parastatal corporations<br />

and development banks; foreign embassies; Peace Corps; Urn agencies;<br />

major concessionaires; and <strong>with</strong> tbe rrewly formed Burd Development<br />

Tak Force.<br />

&om its start in 1974 uneL1 the end of 1977, rX/Liberia was<br />

able to attract che grvlts necessa?.?. to ?id its program. hlthougl?<br />

grants for 1978 were roughly equd to 1977 in total, the funds<br />

grated were largely for specific project -puts. Grants for<br />

general program expenses such as staff salaies and operatiag ,


^. - i<br />

eqenses -were izsufficient tff'cover the generzl ?rog?a cosi.s k-<br />

volved in hplemenzing rhe specid project iqu,u-;s. %is czeaced<br />

a severe Mcdance in SF funag result-dg in a fezeri pzcgru<br />

cost overrm which wili take of 1979 ad szrt of 19EG ro<br />

wcrk cut of.<br />

It is, however, one of EW's iiiajor objectives fo ztzact<br />

sufEcient ~eneral progrvrr sumort to allow B3F ts ccsglete the<br />

ezparLnent of trgiag to create enougi econonic diversification a ~ d<br />

growth in Gpger Nbba County to offset the even- loss cl' ironore<br />

minbg as tke dominant 3hcome generator. 2i3Lication of a<br />

brochure entitled "Eealiziag the Development 2otenti-d Created by<br />

en Lron Ore Concession in Liberia - The Veke9a Xc&elln<br />

has been a ikst step in this mjcr fuudiag cFrive. A seccod step<br />

will be an inte,mational con-ferecce in 1979 to be -or-sored by<br />

the As?e*r Institate for Humzcistic Stdies. This corteronce is to<br />

be based on the Yekega Hodel a d aized at dt;plicat3z - the zeel,<br />

or sinilzr efzorts wherever depletaSle resource concessicas fbreaten<br />

the futjre welf-e of locd. citizens who have bec~re eve cependent<br />

olrthe income there from.<br />

Zvataal Instiitirtionzlizati-on<br />

Eventuzl inst5tution&zation of EF2 ies been 2 scioject<br />

discussed ii~ Governing Council seetings because all zmibe-s aze<br />

aware that non-go~ernmental qencies carnot ccnthue ts attlact<br />

g,-ent. f a f oram. It is too avly for ?E to be locked *to<br />

an institutionaliz.ition plan. There axre severd possiSiEti=e -"-.<br />

T2e Gov't of Liberia mag create an acency to 5~32~232 tie ecandc<br />

diversification of concession areas. xesponsibilr* for the<br />

functions pesently wried out by Z'P nzg be absozbeC 51 vz-icw<br />

Pliriistrhs to which aach function gertaias. Concei=X.j, 232<br />

could work itsel* out of 2 job. I?I tbt cese its PactLars would<br />

have -shed by attrition to z few. These ziqht be c&en<br />

over by loczl government aut;?orities concerned w%tk progress.<br />

Wuation<br />

P E ks been evaluatizg its ow acMev-aents -A 3rog2ess zeports<br />

to donor agencies and i;l Gow-mi= Council appraisds -<br />

contoed izl the minutes o: ezch neeti-. 9 e report* ks aot .<br />

been as objec*ive as will be req&-$0 in the fu-e by Sono=<br />

agencies. '&ersfore retahed the ~e-~ces of :fr. aoger Zee"or,<br />

a graduate of the Scbool for Intez'nationzl .Bstlp,ti,oq OP zn<br />

internshi? basis sgecSicdlpto evabate the t.ZP groet3 Yskepa<br />

and assist it to overcome silc~con'ngs zevealeL as tke evd~atico<br />

pro&resses. d smmary of FLr. Zeller's e ~ ~ t i ;la= o n k?s bee2<br />

prepzed and -m.bmitted to CSAD in Deceder, ig%. A easy Ls<br />

attacbd bezezo.


ihile eventual institutionalization of FFF ind i-provement of<br />

UpperXimba County's capacity to sustain. a major development t3rust<br />

on its om, are W's ?rir?ory objectives, FF. 's proms6 meanwhile<br />

is measured by'ocbie*em-int of external project goals.: 'Phis section<br />

of the report summarizes the Progress of each externa! project fmm<br />

&en Pt liecams a project until the present; ti!? statue of the pm-ject<br />

today; and the objectives to be attained inthe foreseeable future.<br />

: . . . .<br />

Summary of 1978 -4soureei-Allwation<br />

dericulture and *cural<br />

Demdtraining farm vith extension outreach 3 82,W<br />

Appropriate Pechnology Center and extension 44,900<br />

Rural ueveloparent, Industrial, agricvlture, edueation 45,400<br />

hral low-cost c*utrsctor training 22,000<br />

Student Internships, agrinulture and forestry 7.W<br />

total agriculture and rural $2- (71%)<br />

Industrial and Comercia1<br />

Faterprise creation 18,7M3<br />

hterpriaat,assistance 16,300<br />

Investment attraction<br />

total industrial and commercial $41,000 (1%)<br />

itdministratioa and Overfiead<br />

-Visitor hospitality , 5, BCQ<br />

Office oper2tion plus all overhead not<br />

soecificaUp al'ocatabte 33,XX)<br />

total awn. and overhead 39,300 (14%)<br />

total pcogara expenses s2a2,OoO


I. 3emcnstration/rrainine Farm Kith ?ctension Gutreac!~<br />

The project was started in .ran, 1977. The objectives were<br />

a) to create a mixed fam on which local famer trainees could be<br />

exposed to, and given practical experience in the rriaesr<br />

possible variety of crop pmduc:ion feasible in Cp er Simba<br />

County.<br />

b) to provide an imlerentation oriented fol7ov-up extension<br />

outreacs capable of assistine farmers in irrigated land<br />

preperation and aprlication of inproved faming metho.3 and<br />

of assisting local schools to or~anize ap-icultural clubs<br />

<strong>with</strong> their om aemnstration and training ulots an2 an ma1<br />

husbaadry expericents. 'The purpose of the school effort is<br />

to start the process of change at the most receptive a$e.<br />

cf to test tLe feasibility of local production of animal feeds<br />

and other crons such as muean potatoes for which the<br />

&et dellland requires impartation.<br />

The pmject has bern financed over its two year life ty<br />

wecific-purpose grants from US.--13, =S, GrjL (in kind), and WP inputs<br />

of funds from other saurces inclliding hmco, TACZ, and iLT--ZI..r<br />

(Swedish YX and Fa)-. Yur5ng 1978 financing was apnrorimately<br />

as followi:<br />

P&CT & hmco<br />

total<br />

Froject expenditures in 197P break don approx as follors:<br />

Salaries and wages (4 staff, 2 equip operators, 11 rorkers)fl2,50(?<br />

Capital wrtaaes (buildings, irrigaticn equip, aachinery,<br />

vehicles) 28,300<br />

Operting expenses (supemision, admin, sup lies, fuels, rrpsw<br />

eta) 51.W<br />

~ecoverable imuts inti: extension cfirnts<br />

total


Stat% of the project today is that -che damnstration/<br />

training ?arm at Grassfialds has 19.5 acres under cultiva-cion as<br />

follows :<br />

irrigeted rice 2 acres<br />

upland rrce 4 I7<br />

*ree crops & nurser.^ 1 I,<br />

I,<br />

fish ponas<br />

animal feed crops Oe5 1,<br />

7<br />

vegetables, tubers, seed beds 5 "<br />

Totd 19.5 acres<br />

On the site are buildings:<br />

ladging and classroom for 10 farmers<br />

dultry house (2000 broiler t l qer capacity)<br />

Tool and supply shed<br />

covered a2ea for machinerg 6s equipment<br />

Extension workers re@azly visit 19 active rice farmers<br />

farming a total of 36 acres of irrigated rice an& a estinated<br />

100 acres of upland rice. They have forned agricultural clubs<br />

in 13 rurd schools, each b vhg an average of 3/& acres of<br />

mixed crops. These schools have an aggregzte agricdtural clzb<br />

membershi9 of 300 students.<br />

It is asmted that PET'S danonstration/trainirlg fazu plus<br />

follow-up ertansion has been the pri;ne sotiva-cion increasbg<br />

rice produc~ion in Upper Ximba County by 3000 bags of milled rice<br />

pa. for a total value of $75,000 pea. which ends up as income<br />

to rural farmers.<br />

mere is no way to estimate -2 notivated increzsed in grain,<br />

legume, tuber, ad tree crops except to note that 2EP sales to<br />

fanners and distribution to schools of tools, equipment, fertili-<br />

zers, chemicals and seeds has increased since 197L from an average<br />

of 4500 p.a- to &,600 in 1978. Also, farmer denzad for tree<br />

seedlings i21.1978 caused LMC to opec an arboritum h Cugbwe, the<br />

first in Gppsr Nimba Couty.<br />

\&la Laakeh 1'1ulti-Eurpose h'amners Cooperative stzrted up<br />

<strong>with</strong> ST assistance, now has 81 farmers menbers, is registered,<br />

and in NOT '78 obtained the Liberia Produce liarketing aoar3.<br />

agency status required to start business.<br />

PFP assumes credit for projectad produc.cion fron ambar and<br />

Dunbar Piggem, 35,000 lbs of pork seat p.a. for an annudl seles<br />

of ;pLF3,750 and for actual production fro2 A.avon Poultry 3%- -<br />

;i40,700 p-a. in table birds (90%) and eggs ?LC%). Credit is -<br />

assumed by PFP because both farms were started as a result of<br />

EFP encoqeoent and loans.


a) to train and povide extension I'ollow-~i bpleae?li;atim<br />

assistance to jO selected loca Zzzers 9.2.<br />

b) to fors wor-g md l e a a-cultu=al clubs h 4 new<br />

rural schools p.2.<br />

c) to incrsase Ldgated rice 9roduction in ljp~er X a e<br />

Cbunty at the rate of jO acros of - 2-cxpper-;et-,<br />

gravity-flou, irrigrted paddy 9.a.<br />

d) to introauce first-stage rechaiz2tion (i.e. r o t ~ ~ d k g ,<br />

threshiq, and wimouing to all *g=ted rice ftzers<br />

and estanliah an enterprise crovldizg leesec meWz2-<br />

tion serv',ces to fasmrs at pmfls2Dls rztes for bo-A fbs<br />

f-err the enter~rise.<br />

2, Amro~riate Techolon Center (AX)<br />

'Phis project was started in ;a. 1978 aO bas been k 9rcgzess<br />

one yea. It is locat& iz PE/iioerin's W-scale '?c'ustxid<br />

Estate in Yekepa. The pro2ect's objectives uere:<br />

a) to create a. nechaniczl workshop xifb a -xi& enow<br />

varietJ of tools aua equipneat and aetal stock fc<br />

. produce e~e~hental appmpr1ate teckcolow devices<br />

which can be sold or leased -srofitably to f&mers,<br />

contractors and rural industzhlists ad used<br />

profitablj by tha.<br />

3)- to creats 3 workshop in which 2-3 xzc3icel~, equi:?<br />

mat, and vehicles can be chtiinei tnd regL-%I<br />

and f-win which a well-equipped sobile Pield se-ce<br />

and recair unit can perfom tae preverrtative ml"-<br />

temce and regair work reguLr& in tLe field Co<br />

keep P E stckinery and equipment a-nO ep~roprizte<br />

technolow devices in gooc ope=*- con&ition.<br />

d) to provide zr acpixprinte tecknoia~~ eeesicn<br />

outreach cagable of assistkg r~zL.contrzcton,<br />

fzmers ad kdustriaLsts to become z-2~ wG"l ---1<br />

ad use zpyrogrizts teclrroloe~ devices ax% methds.<br />

. .


The PIT A'PC has been financed during ir;s one year life in<br />

pert by a grant from USBID/hiberie; in ?a-t by PFP funds frcm<br />

other donor agencies; and by a portion of the ?3T revolving lo=<br />

fuod dlocathn for building and equipping a industrid estate.<br />

2bacing wrs qprox. as follows in 1978:<br />

to-ial 'WL, 900<br />

1978 eqense breakdown zpl;rox. as follows:<br />

Salaries and wages (Sr. advisor + 2 trainees) 313,700<br />

Capital purchases ( ower tools)<br />

900<br />

Operating e-enses ? power, supplies, mall tools)<br />

parts, stock, expendables, taxes etc) 19 , 300<br />

Unrecoverable inputs - into mral indtastries 11,000<br />

total *,go0<br />

' Fresent stahis of the BTC projects can be sumnarized as<br />

follows :<br />

a) The necaanic-l workshop is 5C% complete. Still needed a-e<br />

arc-welder, drill press? power hxksaw, hydraulic jack,<br />

air conpressor, and vtlrrous ii-fraas, forging trzgs, and<br />

jigs whictL can be nade in the shop, illraady obt&ed are<br />

gzs welding equipnant, hand tools, itthe, ailling nachiaes,<br />

shaper, sheet actal cutter anc various hand power tools.<br />

The shop is wired fcr llOV end 220V current and for<br />

adequzte lieti eaui~ped <strong>with</strong> a latrine; sec~ity gates<br />

and doors are 3'co~;~l;te-<br />

The development of ap~mpri-ate technology devices, tools<br />

and equipment, znd the naintenance of nechines and devices,<br />

for lease to fxmers and rurzl industrizlists has progress-<br />

ed satisfactorily considering it lsas been in progress only<br />

6 months, The a C hzs mde and modified cinvaran block<br />

devices, has nade rakikss, hoes, cultivators and tree plant-<br />

ers; has designed and nade kerosene brooders for chicks<br />

and poultry waterine devices; has tested and found design<br />

faults in the International Rice aes. Inst. roto-tiller<br />

and is in process of designing corrective modifications<br />

therefor; has produced charcoal 'kilns and the net& p&?.s<br />

for a brick kLln which is also in the process of redesigz.<br />

The aTC is studying the problen of clzg honogeniziq for<br />

inproved brick and fired cLag products; and is groducing<br />

a 4-pneunatic-tired-trailer fron Lvco scm2 for hauling -<br />

fbed clsy products an^ f cum supllies.<br />

b) lThe SC's vehicle naintenance shop is approx. 70% complete.<br />

& lean-to, pemanent-roofed area has been added in the<br />

fenced rear gtrd for vehicle naintenance and repair. It<br />

is gradually accunulat-a equiplent such as grease g~s,<br />

fuel pumps, lubriczting oil pumps end dispensers, hand<br />

tools, stocks of filters, -1 p&s etc. for equipment<br />

and vehicle zaintenance. IT has prepared vehicle orevensative<br />

maintenace schedules, but these are not yet<br />

satisfactori?ly adhered to. It hopes to add a complete<br />

tire repair ftcility uher funds becc~e available. A fieldservice,<br />

+wheal-&ive, truck is being equipped <strong>with</strong> fuel<br />

and lubricatini; oil cont~ders and dispansers and a selection<br />

of field service hand tt~ols.


d) dTC's extension outreach Dzs been lhiced by its corcern vita<br />

getting itsell equip~ed, aesieng ?:oCucts, ?roczc2Ci-~ prototypes,<br />

ad maintaining P E t=m~pcrtation. It 'h2s been able<br />

to keep 6 ci;lt7fpsa block nacmes ad-2 Yzzmzz rota-fillers<br />

out on lease ad in good rep&. It has gerZo,~ed a wide<br />

variety of iiald selrvice rqdn of cfuscod kib, brick<br />

ext~uders, brick kiln doors, tne' czterpillb- 955 fxrt latder,<br />

the Hassey Berguson Pan ~,~ctor, ulc? attecbents, amps,<br />

watsr system,-&nd extension worker moto~cycies. A zot~r cycle<br />

znd a used Toyotn Pick-up t=?lck were receritlg pzcksed to<br />

enable A% to work on nore tW oce field se--ice ?-nble?: et a<br />

tiine.<br />

The plznfor the future groWih of TE's di)0rosrizte<br />

+- - Teckolo~<br />

prolife-mtion effort is extensive ad long ranqa. 33 hopes to<br />

obt.-A the Bishop Carroll 'fie School congocud at C-~&sfiel&, to<br />

move its LW thei-, end to conduct f oxxdized cf A99rn3.<br />

Tech. extensior workers (to be hown es a-al &~SGZS). me<br />

eteurs would b r a into the U'C FJZLL industry 9 ~ q-cializ- s<br />

ing in brick adlor. charcod 2ro&u35on, low cost h o e blzcksnit-,<br />

food processing, sheet net21 workhg, z~c*r?i=tl se-&ces,<br />

etc. ula these groups would be given fomzlized t = W g -h t2eLchosen<br />

technologies as wellas usistmce in concentzztilp %heir<br />

skills bto business enterprises. 'Exis plz.ri,cf course, depends on<br />

P-"P's Aility to attrzct fi3ancizl stlpport.<br />

3. Intearated Sur-2 Develoment<br />

FFP discovered, ia the comse of its -1ctiltj_r?L axcension<br />

efZosts, thzt it could get bett3r local response t3 ~zzl -Icultural<br />

project groposals if the asppiraticns of ~111qers 90r<br />

non-incone-generatkg developmmts such u schools, c-cs,<br />

bri&es.. culverts. road imurovement. wells. and szrket sreas<br />

The objective wm to get rurd villzgers org&ze& for seLE- -<br />

help devdosent program; to 1st them g&n e~esiience 5y ?=ti- -<br />

cipating in the ?laming end hplaentaticn of one or t8o IP<br />

assisted projects; ad to have welidispersed, c~~pleted ac<br />

operationil projects visible thx~cgkout Dpper Bhba Coup- to act<br />

as incentive to other nzzl viiers to -anders&e sbiL?e prodecrs.


.?'P1s integrated rural develornent ?roszcl has been fiaaced<br />

by ~ m funds t fron PACT (Privets Agencits Collaborating Together-<br />

XYC), ~ K - (Swedish ~ M Dl-TkCA issoc. - Stockhoh), Lamco, CS<br />

Peace Corps, ES ~ ~ s sXetherlands y , -zbassg, and Xinba .?otzq<br />

Club. Tunds were sgent is fol2ows i~ 1578:<br />

Sdaries tic wages (extinsion worksrs par-c-';be, casual<br />

labor) 5 3,000<br />

Operating expenses (staff sup ort, transp. etc.) 28,900<br />

Larecoverable project hauts P eerthoving, tools,<br />

building naterials, contract labor) 13,500<br />

totdl iW5,400<br />

The presentstatus of this progrsa'is that it is operationzl<br />

and in "high gearn, meening that it has c~eated more rurd development<br />

incentive and requests for assi'stance than FFk can respond to.<br />

First completed was Lugbwe School and ~~sden plot in July ''73<br />

(plumed and built by a cooperative effort including the villagers,<br />

the Yakspa YMCA, the Ninba Rot?- Club, and Em), The second<br />

poject, an extensio; to the Gbapa Scho,;l md a nixed af.riculturil1<br />

student fara was conpletad in i:~. '77 as a joint effort involviag<br />

tha villagars, the students, LiS resce Corps, Bmericvl Ebbassy 2nd<br />

2 . The third project was a market are= and village rice f m<br />

zt ILinu completed in Dec., '7'7.<br />

In 1978, school construction cum v';ll~e and/or student<br />

f 2rm plots, and road an& narket bprova.ents were completed in<br />

Zoqowe and Bonas. Projects are underway in Zolowie, entoween,<br />

Dulay, .ad honlsh. Othrr participants in these projects have<br />

been Xetl~rltnds imbassy,.. hco,. md tht nMoa County Gov't.<br />

EFP hopes to expad its integrated rurd development service<br />

czpacity ta include the tr-asfar of rurdl hCustq and low cost<br />

construction how-how and stimdation- This w-ill tie-in <strong>with</strong><br />

PE's pla for 3n Appropriate Technology Center (ATC) at Gmssfields.<br />

5 e long-tern objective is to create a cadre of Liberian<br />

Xl!CTtrained "~ateurs" who <strong>with</strong> the suppxt of the ATC, can<br />

assist ,mi?& people to org-Aze, plan, ac undertzke z wide vaiew<br />

of incone-generating and self-hprovement projects.<br />

4. Contractor Trsininq<br />

Ia 1973 Lamco endeavorsd to crezte a Liberian owned and<br />

managed construction fin using the spin-off strategy (i.e.<br />

assigaiq to this firs l are portions of the houing cons~~ction<br />

forserlg done by Lanco's civil engiinetr-ing dept.). This did not<br />

work out, lihe firm was too large for the czpacitJ of its managers,<br />

and contract work was tco sporadic to surpozrc z firm <strong>with</strong> a perwent<br />

staff of 35 forenen and lead men. In 1975 Ninba Realm and Construc-<br />

tion, the "spin-off fin, went out of the construction bus~kess<br />

he- suffered severe financial losses.


- t;?zt - tjree<br />

EL& present stat& of this r3.P ?rosza is - of &?e<br />

seven bve gcow =a developed sarb&l;r; 30n dues 2~2 u ::.-A<br />

ZLectricdL Contractor (JJELCO), kazz Kerta, c??"=,entz-y, ?a& Steven<br />

aka, low cost const?zuction general cortzactor. .%o rre experiencing<br />

setisfactory growth; Xwin Venn zcd J o u Jahcscn<br />

zre both low-cost construction general contzzctors. Olle is opext;&<br />

but is generzllr disa~oin?:~; Lame~ce Lincok wtlo stsCeci<br />

as 1 pidoing sxbcontractor and tzred to eqand intc ~;=re--s<br />

cootrac-, ad another, hillim ;Ir-ai, %gh vcltage elect5cd<br />

contractor, has gsne out of busiaess. Lmc3 S~C&S ii requests<br />

for non-lac0 cons~~ction work to lE2 for issipaert to Zbe=13n<br />

contractors.<br />

Gnder contractor training- and development l3F is suae-e~h~<br />

%io zajor construction job's wkich sttrted iz 197e: norkg Wzy<br />

T-Xxe frcm a site threatened by a river 'of silt "run-off" lz-2<br />

the .XSna nine to a new, hi&?= site; 2nd stat* r "Setter<br />

hozesn - ?ro j zct sponsored by the X5ce gomen's isscciati.on, Sew<br />

Dulag Village inclaes 37 hones, 2 store, a l&.=e ?+$ver kuc,<br />

5 l ~ ~ eand s more , w i U be added, Set~er<br />

first 2-e of 24 homes accorclng to 29's scdal L-eadj constructed.<br />

385,500 bes pgid by coost=ucVior custrmeis :;rzw -59 -3sistai<br />

ccatzectors in 1978.<br />

iones -cA 5 clde a -<br />

In tne future, F-e hopes to crcato anow liijerizn gme~z ~d<br />

soeciilized sabcmt~actors to take over dl excqr E@.y tec%c&<br />

contract work from kco's Civil =gkeer-he - 3ept. Grzd~y, each<br />

conCr=ctor 'dl; 3e encourzged to increzss tk2.s ;orecl: of &is -kcc=e<br />

C O f-m~ ~ ~on-ir~!zco custome=s in o*.--r to ctczeesa de>&*-,ce<br />

on the concession.


Indusnial and comercial enzemrises crea~ed as a result of<br />

TF? (i.e. which started because of IFF escouragerent, assistanco,<br />

and fiziurcial io~axs) continued so be advised and assiszed by PFT<br />

in 1978. These included:<br />

The Lanco spin-off forestry an& sawmilling<br />

conpang<br />

Atlantic ciutonotive<br />

Services: . in ?FP industrial estate<br />

N. Milton Supermarket: a second stzrtkp<br />

Catherine Freeman<br />

Cinema: in Unification Town<br />

Ben Kaye Charcoal<br />

Production: nobile kilns<br />

Y-Craf t : silk screen cloth printing and dressnaking<br />

Olma 77 Xestaurant: at railbus station<br />

Nimba Pan= Sumly Store: fomerlgr James Tabla store, Azea T gate<br />

Edwin Venn brick and tenporu2y shut down Eov,, 1978<br />

clay products mfgr:<br />

. . WorBez's tenporailg closed down January 1978<br />

Bestaurant : wkile owner received further education<br />

PE spent $18,700 of its resources in 1978 assisti;?g the above<br />

enterprises. This included a major gortion of .PEP General Manager's<br />

the wbich is not incluaed as a direct cost because he is seconded<br />

to PEP frou Lamco and paid by Lmco, la addition to his tbie,<br />

PFP spent:<br />

Cost of staff tine 5 90<br />

Operating eqenses<br />

rjorecovesahle inputs


In 1978 Xizoeco's sdes ~er2


hother problen is the rapid t-mover of Hr. Milton's account-<br />

in6 gersoond. PFl"s codtilent to the rel'i;?znciag b&s r.;pires<br />

tht PFk staff t->e and resources Ge used t3 keep Xr. Milton's<br />

accouting a d IkacFU staten,-nt production c? to ddte.<br />

--<br />

borrowed &,~GO if&<br />

the Lib;rizn a& for'~eve1opncnt and<br />

Investment (LBDI) and 5599 from PFE. EX? dosigned and supedsed<br />

construction of the Cinema.<br />

The cinema seats 600 persons and ccnplies <strong>with</strong> a3.i comuniQ<br />

szfety, fire and spitation regulations.. Tilns for exhibition<br />

cost between $75 and. $150 per showing. merefore tlrs. r'r9ensn<br />

sust sell a ninimum of 250 tickets (average price $1.00 per ticket)<br />

to nzke ncney since she has to run a gensrator, pzy ticket takers,<br />

pay for trznsportation of filns frcn a d to Monrovia, and o&e<br />

loan repaynents.<br />

PFi's observation is that &ter 5 nonths of break even volme,<br />

SAD32 Cinema started naking a reasonable profit in vctobcr '78.<br />

Averwe attendance esceeds 350.<br />

Xrs. r'reeaan had to be Sressed, 'cut she fi3d1y signed an<br />

weenent to start $100 per nonth repeyments to YEl' in Jan '79.<br />

It is true, as she conpalins, thzt her success has attracted a<br />

competitive cinema axbibitor who operares ia s building which does<br />

not meat public safety rewations and chargss 2% less aWssion.<br />

EEK KAY'S CCliaRCOAL PRODUCTION Sen Kaye started producinf, charcod<br />

<strong>with</strong> a loan frop raY in the fom of two VITA desigz charcoal kilns<br />

in mid 1977. lie locat-a his kilns in bush =eas where Nkbaco bd<br />

left stuaps, large tree lbbs, znd sections of log which were not<br />

suitable for sawmilling. L?FP sigred an assuzvlce requested by the<br />

Forest Development ~uth0riQ<br />

that Ben w e<br />

wculd nake charcod<br />

only out of lunbcr already cut and lying on the ground. Hever-<br />

cheless, F3A officials chrged Ben Kzye stimpege fees which had<br />

already been paycd by Binb&co znd forced hb to nove his kilns into<br />

i+i?zbaco's yzrd where he nust use sa.4ni.ll offcuts to W e charcoal.<br />

after he had been producing charcoal in Ninbnco's yud for tdo<br />

nonths, r'ak officials thrertened to fine Nhbaco for *roper use<br />

or' W o ~ so r Ben Haye wzs forced to shut down charcoal production<br />

altogether.<br />

En is now in process of negotiating wit& ?lU to detzrzie<br />

whether it will be possible for a dl-scale chzrcoal producer<br />

to opersce using forest waste. EFf believes that such use of<br />

forest waste would be in.the natibnal develogent izterest.<br />

Y-CIUFT<br />

Y-Craft mzde good p r m i n 1978 selling over a3O,000 of hand-<br />

craft products retail of whicii 7C% were itens made at the Y-Cr~*t<br />

cloth printbg, sewing, and trhing shop.<br />

-


- -<br />

A grat fz3m "he C->tea States. +enc7 :or izt--z%lcd &svelzp<br />

m s t (~SAD) to -FTP for 3q:'35o1~ of +-v~-- n----- r iz 1776 ~5 -'i./& a-<br />

a51ed Y-CraZt to sttxt an eqanslon grcgz~. %is pxgzz-=: hc1.aies<br />

snlzg-kg the clcth grint-a ror4shog so longer giecss cf cloch<br />

caa be priated, -+creasi=q the imber of cloth ?ri-lcbg d setreinees,<br />

and tr-g LiSeri~ 3anqeriSL 2ersoonel to in the<br />

workshoy a=d tke retail store.<br />

me AID gzat enabled Y-CrzZt to cover t:?ze a d zazqerial<br />

develowe~t eqenses <strong>with</strong>out using the ente-rises ocers-kg cz~itzl.<br />

ms, in turn, enabled Y-Crdt- to carry a nore diverse st;scB zd tc<br />

orp~ze siles in Buch+an, Hazbel, a& Plonrovia, %e res-;lt was<br />

an operetin6 profit which for the first the irr P-CraZt's history<br />

was suff iciezt. to justify a wnd p?y=ent to =Cii to sqpcrt yout&<br />

activities,<br />

~ h c the e p r k z objective of Y-CrSt is- t~ .ge*-jtraCai5~e for<br />

EiCA zctiviLties, this WES sigiif lcanc prowess.<br />

Fks, Bomu Dso eqer;;erced a amber of be&*& a& pers~nzl<br />

problems which prevented her fro= gi~hg eio- tizie to =be<br />

restauraat, She hzs been unable to stzrt repapent of the 5-<br />

lozn.<br />

Tow~d the end of 1978, &s. Thoooas, 20% f u y P-Aed f-~rn<br />

Lamco, beg= to feel well enouc,-;? to gromote soce ~ e - activ'izies<br />

ad aeals at the restaurant.<br />

%e situaticn ha not chzuged. sbce z&i 1977. %hen she is<br />

there ec-dsing the c~cEng an& servi-ce, cliezt&e ae kcme<br />

hcreases- When she is not there and delegztes cce~qt'-on of the<br />

restaurant to others, clirntslle 2nd izcome drog 3efow Sleek even.<br />

PP-9 has not giveo up,??iM$S=. mtience. zn&Lii5=e we conticue to<br />

believe tbt Olma Sesteuzant cur prosper.<br />

3. Tabla aice Plill.<br />

Xbba Pam Swig Store's a2alication for a~ SZ,C€O lo= fra<br />

the &i5cc & Cooy.. Dev, Sd- (ACD13) wzs zr,sroved wi';r the pzoviso<br />

that Jmes Tsblz must move the rice rrill out oZ the store b&i.'-g.<br />

'%is force& Tabla to start consmct5ag a d o r dCi+Ls~ to the<br />

ia tire fon of a rice aiE/'J=ehouse xi&-. %e Zloor<br />

ana wzlls zse 2:; the tnsses and roo+ -re,71i7.<br />

- --<br />

- -.


Tabla has reached the. limit of his $6000 line of credit from<br />

PFP ad therefore must finance the truss and roof construction<br />

from personal incone; hence the 3 months needed to complete the<br />

building.<br />

PFP has been assured bg ACDB that the t~he la-;ise between<br />

ACDB's approval of the loan ad Tzbla's remess to receive it<br />

will not jeopardize the approval. This was a difficult assurance<br />

to obtzin because ACDB had alreedy cancelled the loan approval<br />

issued in July 1978-<br />

Another d a y is Caused by ACDBrs requirenent tbat borrowers<br />

nust have a bank checu account. Ple borrower sust then nvage<br />

to save 81,500 becausz Citibank, the only bank in ITiilba which<br />

offers checking accounts, requires a nininum deposit of 31,500<br />

to open the checking account.<br />

This constraint to developnent led PFf.' to confer <strong>with</strong> officiels<br />

of Lib. Beak for Dev, and Investzent (LBDI) about the possibility<br />

of opending a branch in Nicbe Couuty <strong>with</strong> develo~ment oriented<br />

regulations.<br />

LBDI was receptive to the idea and advised PW that Netherlands<br />

Finance Corporation ;light nake funds available for such a brach<br />

operation. The Netherlands Pinance Corp. =presentative spent a<br />

week sith PFP and jointly a proposal for a developnent bank branch<br />

in Yakepa was prepzred and subdtted to LEDI. Last report b<br />

Dec, '78 was that the proposal had been approved by GOL and LBDI<br />

and awaited only approval of the Xetherlznds Finance Corp. In<br />

the proposal it is stated tbat and ~2.utco w ill assist L3DI to<br />

obtain a location forthe bank brmch and housing for the branch<br />

manager.<br />

EIMDT VENN. BRICK AXTI CLaY PRODUCTS bI?XTACTURE In late Xovember,<br />

8, 1Fr recommended to Zdvrin Venn that he ciose down the brick<br />

and clan ~roduct manufacturina oneration in New Gba~a. basons<br />

for the" sht down were that we hid not found a sati'sfaotory econorzic<br />

solution to the clay nixizg probien and that the fuel cost in r<br />

reaching 1000 degrees centigszde for 36 hours (requirsd for<br />

vitrification) were too high because of shortconings in kiln<br />

design. PFP could not &ford nore experiment& funds for the<br />

project.<br />

Since the shudown, one donor zgency, XYGK-KFLM (bwedish<br />

Yn & Z'dCA), has ?ledgedfuuds in 1979 for development of brick and<br />

clay production. With these funds PFP can obtain a clay -ng -<br />

device wdcb the Genta<br />

-<br />

Xethodist Mission 50 lliles Southwest of<br />

Yekepa offered to let PFP borrow for an indefinite length of tine.<br />

This device is large and will reqyira cooperation from Lac3 to<br />

move to Yekepa, to set up, and to put into operation <strong>with</strong> a diesel<br />

e-e to provide the power- Concmeatly <strong>with</strong> installation of<br />

the mixer, a new Rdown-draftll firing kiln will be erected at the<br />

site made fron already fired bricks and locd clay used as norta.<br />

It is PFP's objactive to get Siwh Venn back in brick and<br />

clay product productiozl by June '79. ileanwbile a low-cost construe-


eon cont=l-ct for tbe Zkba Vcnen's iissocirtion "3etzar 5cresn<br />

poject has Seen obtziaed by<br />

. .<br />

PF? for Xr. Vezn sc taet he ud xs<br />

anployees .fl:ll rot 5e -wit%o~t work.<br />

Fe-A>s the delq in brick pr2cucti-cn ir;-ll tl- cut t3 hve<br />

--<br />

been fcrtunzta Seczuse the ~ar;co Y&t?e, "Cwc Porv Gwn =me"<br />

poject has been Melhitely delqec by the Y;i3eworkez's hion.<br />

%e Unicn failed to endorse tie project. 0ni3n endorseoezt of<br />

tfie project is a requiz-aenc of the National Sevillgs ioaa B d ' s<br />

financing offer. 2here will even-y be Weaent bet-decn *&e<br />

Enion, the conpzny, and the dak; bdt it n~ %&e the Setter pa-t<br />

of the year to reach weenent<br />

MR. TES k'OFEE2'S XSl?i~UT Tkis ente- rise closed 60x1 h Febr '78<br />

because ;cs owner, 1%. fiorris Coooer a L~co en~loyee, w u sent<br />

overseas for further eCucztion. 6247 of the 8500 ori~hdly lome0<br />

to Morris Cooper re- to be re&d:.


A few ente,qrises which were 51 ooeration Sefore "73 CFSX to<br />

Yekepa, ul~? were started %ittioct %7P irmlvezen? L-e assista5 izi<br />

&iff erent ways by SP3. These ~kckde:<br />

Monitco (Xomt Nioa Ilrsaspmt Co.): >ersc~el trac53ort, p95zg,-a<br />

collscticn, n&h&cd. se-=vices, ckI7i;zg sc2.001, mcl tuto<br />

lezsb-.<br />

Xational Woodwor~ Inc: fwLtu=e aanuZaca-e, Lder zSl.work<br />

e . doors; Ooor f=aes, -Andsws, wiz~dow fmes, ?anelling,<br />

phed lunber etc.)<br />

hara Keitz hooairerks : (sane as EkiT ebove) .<br />

Suff 3zkery: bread cad faey b&d gocds<br />

Hmble's Inn: Xesteurult/bazfhctel<br />

Miscellvlecus k4.3.-scale snterprfses in IjnSication Town<br />

(Cznl, $4) and in rural v5llxes<br />

PFP spent $16,300 of its total resources grwL&i=g v~~ici;s<br />

En& of assistznce to the ente-qrlses listed inclidci-y &ove<br />

and to sevezt other 41 enterprises which come to ET for loas,<br />

marketing,. accol~~~ting,..sjaagenentj ad te-cd ssslstarce bct<br />

not on a regulzr enough buls tc be clusi'ied as clients. mese<br />

enternrises are listee below Sow -rr',ttt the m e of assla-ace<br />

grovided to them by PF:<br />

Mcnitco<br />

a foundry in Ceml, #+: desipp & =keting<br />

a sheet metd shop in Cazq $4: desi&n? technicel<br />

marketzg<br />

a notor newt in Cap j+4: accounting<br />

a buLL&in& block &er iE Camp $4: loan, est- Y, - 7<br />

=keting ad techaiczl<br />

a cqeater shop in Camz ,#: nanagenent o~dz~*Ga<br />

a sin - gain* - - shop - in Camp - #4: operating cagitzl<br />

lo&, tec&cd<br />

a provisic~ store iz~ Mz!y Village: operating ca2itd<br />

loan. mement . accowt--<br />

Tfris transport conpny has been k~ busaess shce 1972. IG -<br />

suffered losses in 1972, 1973, and 1974. In 1975 *tezisiTe P-T -<br />

accounting assistance led to a cost dysis capebilitjr which 3<br />

tarn snabled donitco to negotiate a co~=tr;?cz -~:t3 Laco besea on<br />

real costs. 'me comgany used severd EE dv5scrs iE L976 ad<br />

1977 including one technid consultat froiii ZESC. 25mi'- *r3<br />

been on its feet ever shce.<br />

In 1978 P-W's only role wts occasional -s=ent COTL~%S~CC<br />

and assistance ia prep-g for and negotiating -&e m-li? kc3<br />

contract. Monitco's sales exceeded d,jCO,CCO b 1978. %e ccqw<br />

enploys 120.


Rationtl l+lco~+rorks 3c (n1<br />

The largest portion of UrT reso=ces to zsaist eest- e2taqrlses<br />

izs been ailocztaC for -~ssist.z=ce ts ?7at131~l 2coCircrks<br />

fnc. IE .1978 t-do CilZeront Zeace COTS Vclznteers assl~e6 ta<br />

work vith 232 sent 'Ae nzjcr zortion of thsiz tke assistbg FwZ.<br />

The tssistu;ce pov56ed by iFP- ia 1978 ir?clx&e? shc3-car- credit,<br />

bookkeepiag an6 fbulcid staterent proauct%or, z d 7dc;il.e- -3<br />

and equipent seaair.<br />

k 1978 it is estiite6 that salas tctdLed 3j9,CCQ, Gmss<br />

Profit, 322,600; and net profit S9,8QO.. . LX eqloyec zn average<br />

of 18 workars. Of the 59,800 of net prolit, a =ajcr corticn is<br />

in accourts receivable. ~t the endof 1978 ,wzs k a ocerafhg<br />

capital squeeze, but orders and advace Fwaxts were eqscte~ to<br />

dlleviate tZLs by the end of J2.nuaz.z 1979.<br />

In DeCenber '78, XhI eqlsyed e skills? prcducticr "ZGer a c l<br />

the President of -1 notifie& PZF that zs of Zzn 1, 1979, se vculd<br />

persorlelly maage the day-to-day tffairs of zhe enzeq,r'-se a C nc<br />

longer need the part tine 2eace Corps Vokteer accomts cle5.<br />

Wl-t-he nanogerent by 2 najor sharaholder ad 2 mle? 2rdrlctimi<br />

. should have a oositive izpact on the ccqerg's gerfcrace ad<br />

relieve PP? of the nee2 to al1oca:e zs mcb the -& rescu--ces to<br />

Fd as it kis in eke gasz.<br />

'Pbis woodworkSrq shop next to rZEF's ia&a.st=i-d tszase cmtiaues<br />

to operate <strong>with</strong>out P-FF assistace. Xr. Keita reccezes thr t&<br />

aterpr1se will not- reach its flfi jozenial lstil. he re--es f,-a<br />

Larco end mqes the woodworks WelZ.<br />

Ifr. Keita Us been recective to approackes &rrzm.pd by-=<br />

whereby Skadhavia wood product mnuZactaxers bzve Cisc-aseL<br />

proauction in Liberia lor eqort to Skzdinz~La a& SESI)~ .dta<br />

jobt venme and/or gerkershis. agrements Set-aet2 Fz- Keita ac<br />

his zjor smart custGner.<br />

-<br />

Contrzty to P3T rec%aecdetiors che owner decieed lezse -<br />

the bzkery to a Lebanese entrepreaeur who hzs sikce sub-ler ic to<br />

aother. khile the bee= ccntinues to operzte profitably a&<br />

gay the owcer a resonable lease fee, TPP coz=siders its 2uvoiveaezZ<br />

irt the project to &-re fded to achieve the inted@- Li3eS.n en-<br />

tre~rceneurial developent objectLve.


'Cci3.e it is clisappo-hthg ths the Xoeria f-3 c e<br />

3m31e's Inu do not l~arn how to nanage ad oFerate it, tbej have<br />

profited frm *Lei- c-mership ad reinvested the bcone t?lerefrcn<br />

i3 2 relatively large scale f w vent-ure ir Tzppeta. 3. bn<br />

has been well run and bo& pztronized ad enjoyed 37 the Ve4~ge<br />

COrnGlRIity.<br />

In k w t 1978 ?%F assipne6 a &l-enteqmise a6v';sor to<br />

contact the iinreashg nlmber of =dl-scale ycOuckg ets ia<br />

Unification Town; to determine their leeks; 2nd to select sme<br />

for IZP assistance.<br />

Tke nost interesting of his selection me the sis y.kt-h&<br />

enta- rise a d the sd.3 fomdry. The Z'F adesoz r=comen&ed<br />

that a afted phter be @ven a loma in the for= of sl;s3cfis,<br />

brushes and. a wide color selecticn of e-el p-kts. TSe a.i.Lscr<br />

then securd some orders for the rev sterprise ubich -we=$ fUeO<br />

cuickly and -dtL high quelity wormhip. Since taen, the eaeerrise<br />

has grown steadily. The PAT appro?. Tech. Advtsor zsked the<br />

sizzdl foundry to d e<br />

sane eqerkensdl czstinqs for t 20-dw<br />

watering device. Their work ~s good ad nor= orders rere skced<br />

-<strong>with</strong> the foundrg.<br />

Two Cia-= block =chines, 4 wheelbmws, 8 shcvels, EC%<br />

scne -1 tools were sold to 2 Uair'icai5m Z"nm block der b<br />

Zulj '78. He has been proaucing a eve of K)O builw- kLccBs<br />

per 9 and sell* the3 at % per bloc2& laterite P;lr LC%<br />

ceznenr; ever since. Be eriploys 6 persons f U tke ia tdo 5-m<br />

block nakhg te-.<br />

i?.ecentlr talks have started betdeen ?E? 30~5sors 2nd 2 sheet<br />

netal shop, a woodwork5iQ shoo a& a motor xechenic in ik2ice.ti.cn<br />

TOM.<br />

m's low cost construci2cn dv%sor found thas ccntr-ct workers<br />

livin~ at Dulay village to redcce tr=?ugort costs neded a sdl -<br />

provisisn store f~rs~ndries. Afterbug.i2gandse~s~1es -<br />

. at cost for severel ronk&, he pezsuaded a Liberia ;rcnu: to ogen<br />

a prcvision stors in the hllqe. Sae '~u loaned IJ4CCO by F3F<br />

:or building an& initial stock. The store has becoae a zgular<br />

trldi;y station for thee nei&hborirq villqes and shoulc? be able<br />

to st& loan repapents b June '79.


Develo>nenr p l b g<br />

Adzrlt educetron<br />

S w and analysis of comunie problem<br />

GWent intern ad >r=ctic;tl e-eriscce prowas<br />

kvestaect zttmctioo<br />

In coordination <strong>with</strong> the ZT~oaCounty S-e~htendent, tke<br />

Bunl Develognent Tzsk Force, and Lamco, PFF jartici~tes in longrvye<br />

development planning and conducts feasibilie investilgaticns<br />

into proposals for major a&cultu,z^1 and faresky develowe~t<br />

projects us- mco-created irrigation potentid- mere is i2creasing<br />

zwareness of the need for massive enploynent gmeraticn;<br />

not only in antici?ation of ircn-ore depletion, but &so to ccpe<br />

wit;? the no& increase in work age residelts kcl-g ofl's2rk<br />

of Lac0 enslogees.<br />

Adult Zducztion<br />

2E1s contributions to a&dt education result lrsn ?zzicipetim<br />

of ET stzlf in- educazionzl sezinars an6 neetizgs of Teke:Saorid<br />

institxte (ur evening Egh school for eacloyed zchlts) ; A2icaa<br />

Susinesm's dssocia~an (a Yekcga cbptzr of za hte-mztlcoal. assoc.<br />

to promote the development of bus~ess 3anyeezz skills); SMa<br />

Rot- Club; and ElCct. In 2~tion, F3!F staff conduct aeet3gs on<br />

We Liberizn economy, career planning, md othe- subjects when requested<br />

3y insritutions and eexies such as Cuttkgzon College,<br />

Cniv. of Liberia, US Peace Coqs etc,<br />

Stud9 and Analysis 010 C O I X I ~ rroblezs ~<br />

PFP has fc& that c o d t y prob1s.x such as golmization by<br />

nationdity, wUe not str',ctly econonic pmbl-, neveIrtZeless c a<br />

affect developnent adversely. merel'ore, wor!sLag wit& the Lnco<br />

Community Pl2nning Dept.. l)EP sstgf nenbers sddress thenselves<br />

to these pob1ea.s ad endeavor to f* and reconre soluti-ons-


ach gezr since 1975 ?ZP zccepts s+desta 7htez-z~ Zca<br />

Cuttington College k Zuij uld Augxt for sract=ce emerlace<br />

k I..'= usisted eote-)rises; L~iversi3 3: Li3eria<br />

stxients in Dec., Tan., ad leor.. fcr agzic-dt-~-& a5 -+roc6<br />

-aP1llzation internships; and vzcation st&eats k Dee.,<br />

Jan.. and Febr. fron 3ooker :iash.ington Ins.T'-r;Ze, Ca-zoll<br />

Egh School, and high schools -in Sznniquellis a6 Gvta for<br />

12 weeks of practical 'work in theiz chosen vocz5ons (i-e.<br />

office admin., accoupthg, narketing, L C , cmerce,<br />

etc.).<br />

The priinary objective is to attract iz6ijiC- wLth<br />

sound educations and etbLczl trli"in6 to enteqrises i3.<br />

Gpcer Sbba County, There is a chzonic shortags of slqh indi~i;duals<br />

because the concessioos and govement &e tke<br />

mst pnmising school leavers.<br />

The program cost S'PF a?grox. 57,000 iz 1978 h subsistence<br />

wqes, housing, furxAFme, tras~ortatlcn, salEies<br />

of st& program suge,-visors, and s2ecitl eqi2~ezz ;u=-&es<br />

such as sdety shoes and glasses, breatfing fil~srs, ?sbbe=<br />

boots, rhwear, work gloves, etc. requirer', :c obey work zegLat.',ons<br />

izi force in Pekepa.<br />

-u 1978 46 sweats received 3racticzl t = u ad<br />

e~erience of 5 weeks cr Longer duration. ~. 3ese kckdtd 5<br />

fron Cattiqton, 1'7 fmn hiversim of ~ibe252, 4 9mn 3kT,<br />

19 fzon loctl k&gh.schools- Si3: ;revious EE s+x&ezts<br />

intens are now full tiae enployeas i3 Ytkepz ==te-r:ses.<br />

College swents aced 3 eveag sezizars ger reek<br />

while b Yekepe designed and conaucted by -W :s rive then<br />

additionzl careEr Wornation and to emlain -2ie connecr5cn<br />

bet-xeen 'heir studies and their internshi? -#cz4 e-erisnce<br />

whim is scmetines not aware=


Mr, Sven indersson: productim of xe-Sab Louse 2~r-t~<br />

for 3e5is 3s h SveBen at<br />

Natiooal %o~Jrorks.


LOCATION OF<br />

PHASE I PROJECT AREA<br />

AND PROGRAMME AREA<br />

,<br />

i<br />

\<br />

27 i<br />

-<br />

a. ezat~~<br />

n.<br />

n


The average size of ttte suul15012er fams is akoct 3.3 acras<br />

(1.5 ha1 . Tribal tenure pzodcminats. Land s:?or%a~e is zot a<br />

inajor ?r=bles in t?ie ?rocrum;le .L-ea.<br />

The number of fa- families in the Programme X-ea has jess<br />

estimated. to be 28,000. The average 5- :?ousehold :?as 7.7<br />

iaelnbers (1) and a L.E. of 3.7 (2).<br />

The annual labour profile of an average smaUolder fhx is<br />


Appendix E<br />

The mi.? objective of the smallholder fa-~er is to aeot 5lly :is<br />

t-do inin2aum requirments of becomi~g self-sufficic~t ir: his<br />

fmily's staple food crop, rice, and of achieviy a de~rte of<br />

security by diversifying his aqricxltural regime cn -&LC:? he<br />

depeads Eor income in cash ane in !


- Increase 0.f incomes: increased incomes will help the<br />

people to satisfy their individual needs and to meet<br />

the cost of ccmmunity facilities. In the "Outline of the<br />

Report on the Assessment of Liberia's Rural Development<br />

Programme" (1) the per capita income of the target group<br />

of the rural poor was taken to be $ 125 for operational<br />

purposes. The average smallholder family in the Programme<br />

Area, who represent 85 per cent of the population of this<br />

area, has 7.7 mernbers and an annual income of $ 324, i.e.<br />

3 42 per capita. One of the main aims of the Project must<br />

therefore be to increase this income to 125. The most<br />

important means to improve the incomeof the rural population<br />

is undoubtedly agriculture. Rural industries and<br />

handicrafts are also important.<br />

- Higher incomes are Only one means of improving the living<br />

standards of the nral population. The quality of life<br />

and satisfaction <strong>with</strong> rural life are less dependent on<br />

personal income. Thus, the Project further aims to ensure<br />

that all the rural population have reasonable access to<br />

community facilities such as education and health facilities,<br />

roads and water supply.<br />

- Large-scale participation. The Project should not aim to<br />

increase the incomes of only a small number of farmers.<br />

These farmers would almost certainly be the most skilled<br />

farmers who already have a better standard of living


.<br />

The desire to utilize the potentid offered by the operaZion<br />

of a multinational coqoration in a developi.~ area gave -rise so the de-<br />

velopment of the Viable Economic Community Xodel.<br />

The equilateral tetrabedron,displayed on the facing page, is a<br />

three-dimensional representation of the intecelatedness of the four ?rh-<br />

cipd parties in the Yekepa Model - the multinational corporation, the<br />

1 country government, the private voluntary organization and the<br />

local people. Their bterdependence is illustrated in the fisyre by oua<br />

side of each triangle touching one side of each of the other thz-ee tri-<br />

angles. The tetrahedron demands four triangles for its geometric exis-<br />

cence and the model tetrahedron comprises four equilateral t-s",angles<br />

represent'ing equality and conthuiq contact among the parties inwlved.<br />

.Each party 'has a unique blend of contributions and requirsments vhich are<br />

discussed below and condensed on the tetrahedron. The figure is made<br />

so as to be cut out and joined together into a three-dimensional figure.<br />

A. The Four PrLnci~al Elements of the Yekeoa uodel<br />

I. The W C -- A prime pu-~ose of any .WC operation is to<br />

generate a reasonable rate of return on its investment. If the climate<br />

appears favorable for such an operation, the W C is willing to provide<br />

considerable amounts of finapcikt and material capital Csi'iz*<br />

its design and technology capabilities, it can produce and market izs -<br />

j'ruducts, be they from extraction or manufacturing. Long-tern political -<br />

and economic stability are important to the success of the project a d in<br />

the eyes of the .mC to minimize the possibility of nationalization, break-<br />

downs h the perfo-ce of local parties' agreements and palfmctions


ajtillrlg ~thn-r supply flows. Although the larger 2WC operations are capital<br />

incensive, in many cases they still require a considerable manpower pool<br />

to be recruited from among the local communizy. Their labor, combined<br />

wich access to mazerial resources can create widespread direct employment,<br />

increase other incomes in the immediate vicinity, often generate valuable<br />

foreign exchange earnings and thereby, provide the impetus for a quantum<br />

leap in the overall level of economic activity the area.<br />

2. -- The Host Country Govern-<br />

ment'(H~G) has a broad set of national development plans. In pursuit o f<br />

economic and social development fur their count^^, they tly to create the<br />

political and legal framework <strong>with</strong>in which the MNC can function succeas-<br />

fully. The HCG is concerned <strong>with</strong> the overall impact of the MNC which often<br />

represents, as in the case of WCO, a sizeable portion of the GNP. It<br />

is essential for the future of the country as a whole, to encourage the<br />

growth of subsidiary economic activities which build upon the resources<br />

and capacities of the primary project. However, past experience suggests<br />

chat few MHCs have successful models for viable economic community develop-<br />

ment. They have concentrated, instead, on areas such as infrastructure<br />

development which serves their own immediate needs. Consequently, one of<br />

the prime concerns of the HCG is to identify and implement ways of chan-<br />

neling the human and tecfurical beaefits from the MNC operation into sus-<br />

h~nablc paL Lerns of devel~~pment<br />

.<br />

2. The Local Peoole - The local population living in the<br />

immediate vicinity of the project xxll be most affected and bear the brunt<br />

- .<br />

of the project's impact. The people, who are very often sew-subsistence<br />

rural dwellers living as they have for generations, are suddenly up against<br />

something alien to their collective expeslence and may need assistance to<br />

-


survive the radical and rapid chaqcs which inevitably occru. These people<br />

vill furnish the bulk of the labor force, labor being a= =he outset, the<br />

only asset they have to offer the XiC operation. Their other responses are<br />

difficuit co predict. They rill be dete-ed by the cultuz-c conrerz<br />

and social structure of the area. For some it will become an ogpartuxity<br />

while others may have no iuea of how to cope <strong>with</strong> it, let alone profit<br />

- by it. Considerable experimentation and experience by PVOs has rapeatedly<br />

show the local people to have significant poZentidL for self-help dvolve-<br />

ment. To utilize this contribution, the people's own assessmaz of their<br />

needs and their eqd participation in decisions beari;rg upon the develop-<br />

ment of their community must be actively sought.<br />

4. The Intermediate Oroanization -- Gne parcy h zhLs srra-<br />

regy must be in a posicion to recognize and guide the long-tee ho-<br />

listic nature of the develogment process tluoughout the whole life cycle<br />

of the project. The development agencies have the eqerience and credi-<br />

bility to perform this vital function. They bring a wealth of tesred metho-<br />

doligirs and skills in the areas of appropriate technical assis-ace, both<br />

soft.Jare and hardware, training and promot* local entrepreneurship, im-<br />

pro- the self-sufficiency of the agricultural co-ty and consrruct*<br />

liveable and affordable low-cost housing. Confidence ip the PVO comes<br />

from their neutral stance as the represents tive of the aevelopmenr process.<br />

Ln this way, they are b~ a position to successfully act as =he Sroker among<br />

the other vested interests vithout being compromised. This, LI ,?,<br />

. all'>ws Lhc cteveloyrnent a.gency to mediate betueen the p-iea, to seek fi-<br />

nancial arrd other support from multiple privace and publlc so--ces and,'- -<br />

most importantly, to identify and foster the contribution of the local


B. Relationshios Amone the Elements -- At the center of the rela-<br />

taonship between all parties, theremust exist a clear understanding of the<br />

speczal and essential resources that each has to offer to any operation,<br />

combined <strong>with</strong> each party's healthy actitude toward The other's expecca-<br />

tions and apprehensions. Such a realistic assessment would appear to be<br />

one of the key ingredients for the success of any project. From it will<br />

follow a general agreement in principle that carefully considers each party's<br />

position, particularly those least able to' express and defend their in-<br />

terests; that is the affected population li- ia the vicinity of the<br />

operation. Such an approach than points the way to a long-tenn, 'Ul-win,<br />

110-lose" strategy. It recognizes that situations which give rise to agree-<br />

ments change over time. Therefore, change must be seen as a natural phe-<br />

nomenon which demands a continual dialogue and continuum of cont acrs<br />

if it is to remain dynamic and process-oriented. The linkages wuch exist<br />

at all levels - the political, financial, perso~lal and technical - offer<br />

the opportunity for a successful long-term partnership.. The crucial<br />

question is how to imaghatively manage the impact of tfle ANC operation<br />

and best utilize the capital and technical resources of the MNC so that<br />

the .WC has a steady profitable operation, the host government's natural<br />

planning objectives are complemented and the local people have a long-term<br />

viable econormc community. The conceptual strategy PfP has evolved as<br />

a result of its practical experience,<strong>with</strong> its Liberia program points the<br />

way toward the beginning of an anywer.


7<br />

-<br />

i: :': .r Partnership for Productivity -- April 1979<br />

/ Appendix H<br />

Fax PRODUCTION<br />

(X11 after j years of program)<br />

Comprised primarily of rice, boch upland and swamp (paddy). T=adltional<br />

shifting cultivation of rice in upland =eas; new tadmiques atroduced<br />

to make use of natural svamps in valle?s producing paddy rice.<br />

Production Statistics<br />

Paddy Rice: 1 acre produces 30 b&s per *eld per annum<br />

2 yields p-a. due to application of modem mechods<br />

and fertilizer<br />

Therefore, one acre produces 60 ba6sp.a. (X bag=lOOSiS)<br />

'*holesale value of 1 bag is $25.00<br />

Therefor9 1 acre produces 60 bags/ 60001bs, i.e.<br />

3 tons valued aZ $1 jOO.OO<br />

Gpland Rice: 1 acre produces lj bags per anmzm ulth o dy 1 yield<br />

Theref ore, 1"acre produces 15 bags/150016/. 73 of a<br />

tan valued at $373.00<br />

at present Liberia imports approximately 33,000 tons of rice _Jar apmmr.<br />

Nimba Co. alone has an eszimated deficit of 5000 tons per anmmn and'rice<br />

is the principal foodstuff of all classes of people and sectiolu of sod'aty.<br />

The target of rhe project is therefore, zo incksaae produczibn of rice<br />

_oar-c~cularly of higher yielding paddy to a 'total of 2,000 tons per axtizum<br />

by 1983. The IAMCO conmamity provides a ready market for,tLe i=k~ased--<br />

production <strong>with</strong> 3,000 fully employed workers at present wi-A 20 years<br />

estimated norkiPg life remaining in the mine.


Various farm sizes/mixes are envisaged to create a total increase<br />

yield of 2,000 tons, ranging from 2 acres of complete subsistence produc-<br />

tion tbrough 3, 6, 10 acres up to the largest of a 25 e re mixed farm.<br />

The range ia size allows fazlners of differeing activities and viability<br />

to be assisted and at the same time be awarCof possibilities for growth<br />

and advancement.<br />

The example of the mixed 25 acre farm is outlined here psimanly<br />

for illustrat9ve purposes. The target number of 40 such farms indicates<br />

one possible mix of farm size aimed at producing approximately 2000<br />

tons.of rice by 1983. The 25 acre farm will employ 10 workers, 5 from<br />

the farmer's family and five paid workers and is based on an average<br />

f-ly size in Nimba Co. of 7 to 8 persons.<br />

The Mixed Farm<br />

j acres upland rice<br />

7 acres paddy rice<br />

10 acres tree crops (coffee, cashew,<br />

2 acres legumes (also tubers/gains)<br />

1 acre other (fish, poultry, animals -<br />

Total 25. acres<br />

Target of 40 mixed 25-acre fanm*. by 1983 produciag:<br />

200 acres of upland rice -- 150 tons<br />

- -<br />

280 acres of paddy rice -- 840 -- tons .<br />

coco<br />

480 acres 990 tons per annum<br />

The orther 1,010 tons needed to reach the target of 2,000 tans -61-1<br />

be produced among the other smaller farms <strong>with</strong> approximately the same<br />

acreage for upland and paddy rice.<br />

The target of 2,000 tons broken down by year is as follows:<br />

.<br />

s


- Year - Cum.<br />

- Acres<br />

- Tons<br />

1979 50 150<br />

1980 100 300<br />

1981 120 360<br />

1982 135 Q5<br />

- 1983 155 465<br />

- 7<br />

TOTALS 560 1680<br />

- - Toos<br />

Cum.<br />

- Acres<br />

125 93.75<br />

Note:. Total acreage to be in produczion by end of 1979.<br />

Income -- the estimated income from rice production<br />

5 acres upland rice producing. 15 k-2 --<br />

per acre O $25 per bag $ 2075.00 -<br />

7 acres paddy rice producing 60 bags<br />

per acre Q $25 per bag lO5OO.OO<br />

Total of 495 bags selling for<br />

Exoenses<br />

Labor costs: $500 per worker per<br />

annum x 5 workers<br />

Hilling costs: 495 bags x $3.50 per bag<br />

Fertilizer: 3 bags per acre x 12 acres x<br />

531.50 per bag-<br />

Seed rice:. 3,516 per acre x 12 acres x<br />

50e per lb.<br />

Renzal of roto tiller/thre.sher/insect spay<br />

Estimazed income from sale of rice $12,575.00<br />

Estimazed expenses for rice production 7,376.00<br />

?let income $ 5,199.00


Other income from mixed farm (net figures)<br />

Tree crops (pr~ncipally coffee O $100 per acre<br />

x 10 acres) 1,000.00<br />

Legumes (1 acre for subsistence, 1 for sale) 100.00<br />

Other (-5 acre fir subsistence, acre for sale) 500.00<br />

1,600.00<br />

Total income: $6,799.00 per a ~um after j years +<br />

There are costs involved to clear the land ready for planting of rice<br />

which have been estimated at 8300.00 per acre for swamp rice and $50 per<br />

acre. for upland rice.<br />

Cost to PfP for clearing swamp land is $300 x 7 acres $2,100.00<br />

Cost to PfP for clearing upland is $50 x 5 acres 250.00<br />

TOT& $2,350.00<br />

Consideration is be* given to offering a loan to the farmer to cover<br />

this cost which will be paid back to PfP over 2 years at lo$ interest,<br />

<strong>with</strong> repayment schedule as follows:<br />

Year 1 -- Principal<br />

Interest<br />

Year 2 -- Principal<br />

Interest<br />

Total repayment to PfP


Income from E ked 25 Acre Farm<br />

Project~ons for lncome from the creatxon of -&e fbzs to commence<br />

after 1933.<br />

. The t-do main sources of income will be:<br />

r<br />

A. PfP will receive $2702.00 per farm as repayment.for<br />

start-up costs principally land clearing for rice production. It is<br />

estimated thax 20 farms of 25 acres each -dill be brought into production<br />

each year providing a total revenue of $54,000.00 per annum. (20 x<br />

$2702.00 = $54,000.00)<br />

The costs to PfP do not involve capiral expenditures.<br />

The front-end loader used to clear the land was provided to Pf? by W'CO<br />

when it commenced the agricultural arm of the program.<br />

B. Part of the seIsice provided to farmers will be chs<br />

leasing of mechanized fazm implements. They are 2 farm traczors, 4<br />

roto tillers, 6 tiueshers whach are already owned and depreciated by PfP,<br />

and other items produced and maintained by the X.T. Center such as pumps.<br />

Revezlue<br />

1. 2 tractors O $9,000.00 $18,000.00<br />

2. 4 rot0 tillers @ $2,400.00 9 ,600.00<br />

3. 6 threshers O $600.00 3,600.00<br />

4. Xisc. 3,600.00<br />

Total from rental of m a w e m $34,800.00 per axmun<br />

Total from start-up costs 54,000.00 -<br />

Total revesnae from farm development $88,800.00<br />

There will be revenue from at least two other sources for wfrich ic<br />

is difficulr to provide good estimates. They are, however, 50ch +sag&<br />

as integral components of the overall strategy. FL-srlp there is -he


"start-upn income from land clearing of smaller farms, 2/5/10 acres which<br />

will produce approximately 1,000 zons of rice from 200 acres of upland<br />

and 280 acres of paddy. This would procide approximazely the same in-<br />

come as from the larger nuxed fa-. .<br />

Secondly, PfP will begin to charge for its advlsory service ad-<br />

ministered by extra workers to farmers afzer 1983 if the fa.nner proves f<br />

profitable. The serrice will be provided free for the first 4/5 years.<br />

A.T. Center<br />

Experience gained to date indicates that the small businesses set<br />

up as a result of the training and establishment of potential entre-<br />

preneurs will be able to repay a varSring per cent (15-3046) of their gross<br />

sales to PPP over a period of 5 years depend- on the volume of business<br />

and size of available markets.<br />

Income projected for 5 years are for:<br />

4 charcoal businesses each costing $6000.00<br />

4 brick a businesses bP $8,000 each<br />

$24,000.00<br />

32,000.00 -<br />

8 misc. businesses: woodworking, blackslrciths,<br />

formdries, @ 2,500.00 each 20,000.00<br />

Sale of ae;ricultural machinery costing<br />

20,000.00<br />

Total revenue spread over j years $96,000.00<br />

With a five-year payback, this provides income of $19,200.00<br />

per annunz.


Low-Cost Self-Helo Construc3ion. Trainim and Devolo~ment<br />

During 1975, 585,500 was paid -haugh ?f? co Pf?-assiszed Liber5:a.n<br />

low-cpsc conscrucrion contracrors . Expan- this actiy-zy .~ll creare<br />

w<br />

five,contractors by 1983, each produca gross sales of approximaxely<br />

580,000 and paying PfP 15% of bas gross of $400,000 ($80,000 x 5 years)<br />

i.e. $60,000 per annum.<br />

Commercial and Lndcstrial Enternrise Develoument<br />

: Consulting, accounting, audit- fees at end of 5 years -&I1 pro-<br />

duce approximately $j0,000 per a ~um from the more successful enterprises.<br />

Tocal revenue to PfP after 5 years:<br />

a. land development 388,800.00<br />

b. A.T. Center 19,200.00<br />

c. Low-cost construc~ion ~O,OOO.OO<br />

6. commercial and isdustrial dev' c 50,000.00<br />

Grand Total $218,000.00


Y)W COST RURAL ncxuxxi<br />

SPECIFICATIONS EY 1'FP/L.I~U<br />

Law cost construction in rural Liberia has to be very lor cost as<br />

the annual per capital rural income is only 9120.00. The conaistant<br />

rise in building material cost has forced necessary changes in the<br />

structural design. Theae changes are not advisable for any area that-<br />

has a large degree of temperature change and should be adjusted accordbg<br />

to the purpose of the building. For family dwellings, use the following<br />

specifications:<br />

Foundation or Footinq:<br />

The foundation is simply a stone and mortar laid structnre that<br />

is trice the width of the wall to be placed on it (6" block:l2" foundation;<br />

8" block;l6" foundation). The stone or rock is collected locally by<br />

7. yousg boys who are paid by cubic meter. The sand is collected in the<br />

name manner. The aa7ar mix rill be determined by the type of sand used,<br />

but in most cases one bag of cement to 15 cublc feet of sand will give a<br />

2,500 p.8.i. mortar. 15 cubic feet are equal to three larp wheel bartors.<br />

The foundation should be at least one foot deep in well packed soil and<br />

extend 3" above the final grade level. The foundation must be kept at r<br />

constant level so the buildins site should be prepared before construction<br />

beginstoaweon the foundation depth. The top of the foundation should be<br />

left rith a rough finish to insure a good bond between foundation and<br />

block mortar.<br />

- Walls:<br />

The walls arc constructed <strong>with</strong> cinvaram block rhic!! is lade of local<br />

soil and 10% cement. The best possible soil is the dirt obtained from<br />

temite aounds, but other soils may be used as long as the= is not a<br />

large percentage of clay in the soil. The dirt is first acretned to -ve<br />

larp stones qnd vegetation. The screened. dry soil is then mixed <strong>with</strong><br />

cement at the ration of 1 to 10. At this point a small amount of rater<br />

is added to the mix and then formed in a block press rith 30 pounds per<br />

square in&- pressure. The resulting block should measure 6" x 6" x 12"<br />

and sflould be left to dry at leaat five days before being laid.<br />

A11 walls should be raised at the same time to inwe s p od locking<br />

comer between outside and inside walls. 'The block wst be laid rith a<br />

maximala 3/4' joint for pod structural strength.<br />

The joints of the block wall shoyld be full a d then mbbed -0th -<br />

rith the block surfacs to avoid any exposed block edges, as the exposed<br />

edge rill reather quickly. The mortar for the block is the caw aisture<br />

and strengzh aa the roundation.<br />

Yindors and Doors:<br />

The windows and doors are mde in the simplest faahion possible.<br />

'The windovs are really nothing but mooden shutters constructed rith 1 x 6<br />

lumber <strong>with</strong> 1 x 4 backing nailed together as tietly as possible. Lch<br />

window and door require three hinqes.


I<br />

The door and rzndow frames are 2" x 6" lumber, installed in the walls<br />

as they are being laid <strong>with</strong> 4" nails driven into the rood at the bIock<br />

. joints and mortared in to insure a tight fit.<br />

Roof Structure :<br />

The third course of block down from the top of wall rill require<br />

metal straps of 3 feet in length to be folded upward and nailed across<br />

the 2 x 6 wall plate. This is used in the place of anchor bolts to<br />

insure that the aoof structure does not become dislodged from the walls.<br />

The roof trusses are then nailed to this 2 x 6 wall plate. The<br />

trusses are made from 2 x 4 and 1 x 4 lumber or can be constructed from<br />

natural sticks of at least 2" diameter. The roofing material used in<br />

E I ~ s . - ' g a u g e galvanized zinc which is nailed to I" x 4" purlins<br />

that are placed across trusses on 4 foot centers.<br />

- Floor:<br />

For fasily dvellings that do not have heavy furniture a 2" cement<br />

floor bas proven to be of adequate strength. The cement floor is dxed<br />

in the same way and strength as the foundation and mortar. Xbile the<br />

floor is still wet, a fine dusting of pure cwent is trowelled into the<br />

floor for a smooth finish.<br />

- Note:<br />

Remember that all of these specifications rill vary according to<br />

material and quality of tradesmen available. %herever possible a local<br />

material should be used in place of imported material.


LO* CUST 3-RWll HOUSE<br />

-<br />

YAT%RIAL STI?l.;X<br />

Foundation: 26.5 26.5 + . 22.5 r 22.3 * 25 + 15 + 10 x 1 x 1 + 27 = 5.25 yda.<br />

5.25 yds - 30% = 3.75 neters-<br />

1.75 metma rock + 2 meters aand + 15 bags ceent<br />

-<br />

. Floor: 25 x 21 x .166+ 2'1 = 3.25 meters sand = 17 bags cement<br />

.5<br />

Fill: 10 yards compacted dirt<br />

%ails: 26 c 22 + 15.5 + 10.5 + 25 + 10 + 10.5 x 7 x 144 + El.== 1483 blo- x<br />

10% = 1632 blocks cenent = 1632 + IM) = 17 baga cement<br />

Hortar: 119.5 r 7 + 100 x 5.5 + 27 = 1.75 yds = 1.15 yds sand - 9 baga caoent<br />

Daor:.S: 3' x 6' Frame: 5: 2 x 6 x 16' = 80 bd ft<br />

Door: 15: 1 x 6 x 12' = 90 bd ft<br />

Backing: 5:l x 4 xl2' = 20 bd ft<br />

brdrare: 8. pair 3" hinws + 5 towel bolts * 5 hasp& staple<br />

1 box 3/4" scrtrs<br />

Window: 5- 3' r 3': Frpre: 5- 2 x 6 x 14' r 70 bd ft<br />

Shutter: 8- 1 x 6 x 12' = 48 bd it<br />

Backing: 5- 1 x 4 x 16' = 16.66 W it<br />

Hardrare: 7 pairs 3" hinges + 5-tmel bolts<br />

Post : 1- 4 x 4 x 8 = 10.66 bd ft<br />

Roof: Truss =2= 8- 1 x 4 x 14 = 37.33 bd St<br />

4- 2 x 4 x 17 P 45.33 bd it<br />

2- 2 r 2 z 16 = 10.66 bd it<br />

up: 18- 2 x 4 x 12 = 14 bd it<br />

Purlin: 36- 1 x 4 x 12 t 144 bd it<br />

Zinc : 121- 2' x 8' sheet<br />

30- lbs zinc nails<br />

25- lbs 4" nails<br />

25- lbs 3" nails<br />

20- lba 2" nails<br />

Paint: 8- gals. [Brom) Paint (Oil)<br />

Cuest :<br />

Sand :<br />

bck:<br />

Luabcr :<br />

Zinc :<br />

Zinc Hails:<br />

Nails:<br />

Paint :<br />

56 baga or 6,160 lbs-<br />

11.25 yd3 or 8 meters3<br />

2.25 ;1d3 or 1.75 ntcrd<br />

716.64 bd it<br />

12l sheeta<br />

30 Iba.<br />

70 lbs.<br />

8 gals.<br />

Inside Plaster (OFTIONAL): 128' x 7 x .021 + 27 = .75 ,d3+ 440 lbs c-mt .


\<br />

Ail ample eszinatizig i- c2is text a-e based ot a buCCks<br />

(20) CdezCJ feet by (W) forv feet. The walls az-e all (7) seven<br />

feet hi&. There are no intenal rdls ic tss re= sanpie.<br />

Tke foundaticn sho~2.d be (6"), six inches longer -&er the<br />

walls so as to place the wall on c~nter of foundztion.<br />

Foundation: = 20.5C40.5Y20.54.5~1.5 ivide x 2' deep /27=i3.5 S.d.<br />

13.5 yd minus 3% = 10 meters volxme. .?!ke volme<br />

is divided by 2 as the volume is filled 1/2 sad<br />

and 1/2 rock. The sand volume is iidV:plied by<br />

6.5 to give the number of begs of cenent =eq&red.<br />

Exzmpl e : = m.gc20.9~.'+.5 x 1.5x2/3 = 13.5 - WN = 10<br />

meters/2- 5 meters rock 31- 5 peters sand. 5<br />

meters sanG times 6.5 equal 32.5 or 33 ba&s cemenc<br />

Bill : = 20 fcot wicith tbes 40 foe leek t-Jes 1.5 fest<br />

deep = 1200 cubic feetm equal 44.5 cubic yard<br />

sand. Ciibic yds and ninus jC% = 31 meters sanC<br />

balls:<br />

a p l e<br />

= The amount of mate-ids will dezerrd or the m e of<br />

materials used b the walls. 3 4 ~ it s ~ is necesssry<br />

to detcdne the wall area in sq-e iootqe. The<br />

square footage is then adtiplied Sy 1- ta eve the<br />

square inches, zter dete- zke sqiare inches<br />

of wall area it then requires to dete-me tbe square<br />

inches of buildi~g zaterial plus t5e sortoz joint.<br />

The area of the bliildin& materid is dete-ed by<br />

multiplyhq the heigt of saterid plus 1/2 hch<br />

mortor joint, by the width of 5ui1- zaterid<br />

plus 1/2 inch joint. This area is divicied -kt0 +he<br />

.znches of w a U =ea, which is ;lul?:;'-pLied by 1.1B<br />

for. breakage, and tbis number will equal the aztount<br />

of building mterial needed for the -d.<br />

- : 20+40+2OcV0~7~44= 120,960 sqwe h&ss. Cin~e~vn<br />

biock = 6.5 x 12.5 or 81.25 sq. hches. 120,960<br />

hches divided by 81.25. eqd 14-SB.7- block tiaes<br />

1.10% equal 1638 block.<br />

Pfoi5zor: = Length of all. ralls thes tl?e height, dLi,ded ?)y id,tbes<br />

5.5,di-videc by 27, equal the c-bic yai~s of sandbubtract<br />

tht cubic yards of sand by 3046 will give 'Ae<br />

cubic meters of sand required. P-e c-ablc zeters<br />

of sand is multiplied by 6.5 which will equal 'Ae<br />

number of bags of cenerrt needed.


. .<br />

. .<br />

i -- . ---=s iaterior length, tines depth,<br />

aqczl rcL-sl* .;I' . 5722 . nec8ed for floor. me cubic meter .<br />

c r' szc =-~l-+ .-,---- :; - Gp<br />

. .<br />

iy 6.5 equal zmber of bags of<br />

- ' -<br />

1<br />

ce=er< =eecsc.<br />

= l?xj9~,166/27 = 4.j cubic yards. 4.5 pas, - 3& =<br />

5.25 setsi.$ sac. 3-25 meters sad x 6.5 = 22 bags<br />

ceaenz.<br />

-<br />

-. . -.<br />

. .<br />

-ri cda: = ~ ~ JQU $ su9t 2 c?etermine if a concrgte tie bean is<br />

~tcesszrj., as the bean will acid $1.30 per linual foot<br />

ol' w d 1 to cos-z; of constr~ction. As a general rule ~y<br />

juy+bg tb- ., is ag larger than 35 feet long will<br />

." . . ..<br />

reqilzs i 5 inch i.eidarced concrete beam, To determine<br />

?he =azerizl for said bean, adci the length of all wells<br />

-.",-- -... &<<br />

i,-4 ,rlu;piy 37 tSe width and multLply zqain by the<br />

'cel&t. %.is cubic footage is ther: divided by 27 to<br />

bit.e~_ia? :ka cabic ysxdage of sand needed. 'Phe cubic<br />

- ys-bgs is ther subtract d by 3% to give the cubic<br />

- ..A--.. . -.<br />

P<br />

zeters oi ah-a. h e dub c neters of sand is nultiplied<br />

. ,--<br />

DJ o.> to dz2tezziii?e the number of @ss cement.<br />

- u,AL.-. = 20+0+20+4~. jx5/27 - 30% x 6.5<br />

. ,<br />

_~.-&$i . .~ 20-0-204 = 12Q1 x .5 = '60%5-30/27= 1.11. 1.11 x<br />

.30 = -0.35, i.ii - 0.33 - .75 meters san0. .75 x. 6.55<br />

-4.87 or 5 ozgs csnezt-<br />

-<br />

I. e : '= Z O a + S 0 4 = 120/6 = 20+4 comers aqua1 24 anchor or<br />

"J" bclcs.


This t~ss requirss 4-lxcrY12' plus 2-.Sxl4' ghs 1-2~2d4' thus<br />

2-2xrrXl4=28'~2/3 = 18.6 bd. ft.<br />

1-2~2d4=14'~2/3/2= 4.6 bd. ft.<br />

4-1&d2=W1/3 = 16 bd. ft.<br />

?he total umber of trxsses wili degznc on the typ: of roof tc bu<br />

cmstmctad. First ve will datamine lor a gjble roof. ?or 2<br />

~.-ble roof, first divide the length or' &ke buil&ins 21~s 6 fct,t<br />

by 4 ?lus 1. This gives ths olldcer of tyzsses reecea.<br />

.>ein@rs: = The strbgers or purlh =c tha 1x4 tkat cfir zhc is<br />

nailed to, This w i l l requize 2 st=.iwers at tze pe&<br />

of the roof and one strhger at every foU foot cs-tez<br />

down the length of the truss. T+ks dso ~gpiad for<br />

tbs hip ends.<br />

Linc : = For gable roof 'he len~th of b~l-g plus 6 feet is<br />

divilded by 1.5 a d then mltiplied by tins nu3~r of<br />

sheets to covsr the Imgta of ?ZLSS. 'Po cr?+e-t<br />

the dber-of sheets needed to cover t;?e leaggt! of<br />

truss, the length is divided by 7.5 tbes 2 for $52<br />

Cdo sides.<br />

lint cail: = number of sheets t-LESS -25 box squl nuricer 05 boxes<br />

of nails ne.:ded.


Pd-t = Coe gillon of oil pizr covers a?-zodsately 350 sq.<br />

fedt of surfnce. To acterrlz~? the . ~ c w of t ~:.ht<br />

ne-dac fizsz it is r?acesszFj to deternine t3a-sqxxe<br />

surface of lumber used. in all windows and Coors.<br />

mplzr = ?he house iu this t a has ~ 6 rirdows a d 2 doors. The<br />

windows,ne~s~e 3'x3', the uoors natscre 6x3. Therefore,<br />

the fornula is 3 thes 3 tbes 6 plus 6 tines<br />

3 tines 2 or JxJx6= YL squ~ze ft. Plus 6x?x2= 36=90<br />

square ft. This numbvr is rnati~liad by 20 to equal<br />

1800 which is divided by 350 'to equd 5.14 or 5<br />

e;allons paint. (uainder, the mmber 20 which nultiplirs<br />

the squ. footape is a constant,, .this aeas it is always<br />

used.<br />

.<br />

+<br />

boors &<br />

Gindows : = Tho windows and doors used in n low cost bush hone,<br />

are made oo the construction site. The windows are<br />

really nothing but shuzters, of thil sbplast construc-<br />

tion possible. The windows and doors consist of 1x6<br />

'.umber held in plzca <strong>with</strong> 1x4 backing. To demonstrate<br />

;h<br />

;


kgts = &ch window a d door requires three "T" hinge - or 1'h<br />

p.& each. They dso reqube coe towel bolt eaci. o r :!?is<br />

. .* house it -+&11 require 12 pair of hbhes, 8 towel 501=, act 2<br />

hasp, for the doors.<br />

mcD Lccx


. . . ,. ., i.<br />

J . : 2.<br />

.......<br />

-. :.,- * : " .- .- . . &> ~. .:.<br />

: i<br />

atrati-ze Committee on. .Coordirrs$ioa (XC) t.ached' P . bad 6' .:. ;.;<br />

... - . . rrr . - .. n*-A,.; . -- - -<br />

mest xi& . .- &--at on. psrtioipeti& 13 ... 9 . gut . ... -i-' . . ..... ..<br />

....... ...:.... s i.. ... - _ . :. I.- . . * - i . . . . . ...... - . .< -.<br />

.?::...~ >.<br />

?.>= .>< --oh ~kerii, bsd been ont, of air- .8&eotad. eauntrbn;~ L.1f rdii r-.~..s:.:. ..- .-. -.T<br />

. . , !. . .."'k*,e:.. .+a- . > *:, .>- .:. :. -->:.<br />

week tfist, (8) --eat G d .. cuoplle - . . . t .- ~ la--. . , ". - s ~ .. ia?: e -; . . . e: .<br />

-.<br />

..<br />


11. 3e Agenoiea 'ihlch 3s-m >ad =sej~c-~i>Fliq Zo= (-%%atflg<br />

e=d stinilat* ileveloyent * the =%?= &=as '=- been,<br />

olltll recently, quite saoaeesful Lx yozing the ZemL 02 oaa-<br />

oolounneea of the rz?il meidenta tovarda &nmlapen+r lay*<br />

down -ko b-40 md eockl bf=ss~hzzs ia a- ma*,<br />

c. co~


'uttzemed 'by th9 aetahliehment of a "bottcm uy" approaoh to<br />

dnvetopnent of the rn.d k-aan wi13 meke ynsible t h 0-11-<br />

ing of the oreati7e energlee of the r?lral popla fito prod=-<br />

tjvo ~.otivltiea<br />

on a sue iainln(r bwia.<br />

15. The moaeesfnl p-auit of euoh m a.pgroaoh requirse<br />

br-ag bt0 be?= the ahtegiee of decentrdlization, cook<br />

dinstion, sad papule psrtioipstion in a multi-eeotoral eiio*;<br />

.hut thl~ in would =quire very speoiflo actions at the<br />

aahionsl, 1004 and inteam3tioxriil level.<br />

16. At the national. level, a stzsdiICL.Y: of adsting dew-<br />

lopent Aenoies will bss9 to be undertaken <strong>with</strong> the 8in of<br />

etrengthea thelr overdl oapabilitp fo pursue more effoc-<br />

tively thek development efforta aingly md oolleotivelp 836<br />

a oonoomitent removal from witfZi3 their purview those aotivitiee<br />

wuoh rn peri~heral<br />

to their major taak of developmsnt; a re-<br />

orienting of augportfng agsnciss such tfiat theiz aocou~ting<br />

procedures and fl3enolsl oontzols help rather than hinder the<br />

development effort ia the msal ertas; and a molewing of-+& '<br />

oomposi-tion of the national p b ~ ~ bodies % f ~ vitk th. aim of<br />

inolnding greater wprseentatioa of local ~ a ~ a t i o n s .<br />

17. At the loo& level, a et;.engt~eninq of the exis*<br />

loodl naobisexy la neoeeaw to faailitate +%:he snucseaf%Z ha&- .<br />

fez of raegonsibility Bnd s delegation of authezitg to &-<br />

County a&&.istratlone. But in order to ogerstiadiaa and<br />

i.!aati~~iona.lise +.bee looal saohineriee, it is ielt thst t?ae<br />

pr-iglae of tbe aepasation of plsn for?mrlation and plan *la-


B<br />

?LX~/~~~/l - Page 8<br />

mon~ ?np-opri~te yo1.itioal ad occ.io-eounonic arr~unent<br />

t]rou;,h ~~hich our dovclopmm~l poiioics cen be n?mt suaoeaafdlp<br />

roaliaed; and<br />

. \WX11*;A!;, our p3licy of aimul%anoous dovdopmcnt<br />

tkough concez~ed actions by the ~arious governmental bple-<br />

!/ -<br />

montinc agenoieo has inz=oduced -act projects into a nunber<br />

of =.dly ioolnt~tl nnd oconomically deprosaed am-; aad also<br />

policy of widar dispersion of the fruits of aocio-econodc<br />

development has aroused the rpi-al po~ulation and ocoasioned<br />

Government bureaucracy to become more responsive to the needs<br />

of the ma1 poor; md<br />

25. EEEUAS, We L-e now entering a new rural development<br />

phase, characterized by z greater conaciouaness of development<br />

on the part of our ma1 reaidents and conconitznt increase in<br />

the demvlds fo?: mre and better aerpices end oppor.hurltie8; a<br />

bdtor gasp of and sensitivity tow~azh rural development on<br />

tho pnri: of this Ldministration; much greater insight into and<br />

n oorreoponU~q appreciation of tke complexity of rural develop-<br />

ment a d its inter-relationship <strong>with</strong> national development bg<br />

both locd and national agencies; and a greater aympatby for<br />

and complement^ asaistanoe to our approach to ma1 develop<br />

ment on the part of Fntarnztional wades and mnlti-laterd '<br />

a d bi-lateral donors ;<br />

26. XJtl ~ O I, W i l l i~ a m a. Tolbert, , Jr., Rssident of<br />

the ltepublio of Liberia, be- in a bettor position to make a<br />

frolttl .wsadt on the seemiqly *tractable problems of the<br />

aation'a under-development in general a d ma1 at-tion in ,<br />

gartioular, and by the autharity vested in me, do heroby OrdPr:<br />

k. That the long-tezm =a';icnzl Objectives on dewlopmsnt,<br />

adopted by fhc U7tlor.zl P'hzi3.n Cotrncil in Hay 1972,<br />

be herekj r?-?f.i~=ued; nmely, 7 i) itiversification of<br />

productisn; (ii; dis2crsion of sxio-economic activi-<br />

ties thr?u.&out the comtzy; (iii) tctal involvemeat<br />

of tta cnfira ppulatim LI the daveiopmeat efforts;<br />

nnd (iv) equitable dictribn-tion :f tho benefits of<br />

eocnolnlo now-kin, dovelopment and dlveraifioation so<br />

an >.: era^-d zn accdptabie sta&d of living for all<br />

Liberians.


(i) dsvalopaat yanciee sad oaer insfitutions a?<br />

the natioad level ae MU aa at tka locsl level<br />

will be rset=aot.ued, mang others, by s*ngtteninq<br />

and -~tiondlz~-, fo aarncs tie ?-ticn<br />

of sus2&ed cffeoti-nt identiflcazion, F-1<br />

implementation aa& sMustiorr of<br />

pojecte. Fczp=~ses of Lm erareiae, +A<br />

davelcgxzt ag+mseiee sf tira 38tioa Iern1 &a<br />

ohsaified ra-.


(b) *.up>ortiw Ministries a d agecdee such as<br />

Einis.tq of iUmnce, ltinistrj of Pl~nning<br />

md Eoonoaio Aff dm, Civil Sorvioc Agency,<br />

Gonerd :;orviceo Agency, Lkre~u of the<br />

Uudget and the Institute of hibllc Admini-<br />

11 trr~tion.<br />

(ii) The re-orientation cf on-going programme8 and<br />

project3 which have patentiel for rural devalop-<br />

ment tbrough the martmtzation of linkages <strong>with</strong>in<br />

and betveen efforts at rural dsmlopment,<br />

(iii) the programming of nsw progrsmmes/proj~ts and<br />

those in the pipeline in a mamor to ensme<br />

that priority is 6i;iven to those which are most<br />

likely to satisfy the basio needs of the ma3<br />

people.<br />

(iv) due to the many 2nd complex unhovns in<br />

rural development, npproprists meRauzse<br />

as re-organization of institutlona and<br />

coordination of ~ ti~ties, along <strong>with</strong><br />

relatively larger reoources, will be devoted<br />

to statisticd and ressarch activities<br />

relating to nud life; and also for<br />

the aetablishment of overall physical<br />

plans germane to the mral environment.<br />

(v) <strong>with</strong> the increased responsibility, autho-<br />

rf:y and accountability at the locel<br />

level, trstnin,- will be re-inforced to<br />

assure not only the manpower requirements<br />

of local admidstratioas but ale0<br />

the re-orientation of attitudse end oom-<br />

mibent of sunh oadsae, gzrticularly the<br />

~ouths, towards rural peoples and the*<br />

lives.<br />

(vi) mral deoelopmcnt in Liberia must be<br />

viewed as an integral part of zhe nationfa<br />

ovornil dovalopmont and onnnot bu treated<br />

aa a separste function or activity.<br />

(vii)<br />

clear g~ilalii?c!s for dotalo~ment activities<br />

at the varicu political sub-divisional<br />

levels, together <strong>with</strong> a sepazation of pla<br />

formulation and plan implementation at the<br />

country level, is neoe:;a;szy to operationalize<br />

aud iatitutiondize thu atr'tsgies of the<br />

new approach.


( 7 ) th~ as~iz%ti3as of $ha =.lral =traiCea?a c a<br />

cr17 be satisfied 37 (i) a cation& a?pxach<br />

deaic-ed to support and facilitate rat-d<br />

development in the rural areas, -6 (ii) a<br />

"bottc~up" decision W g lrocesa w%ch<br />

w i l l in13~e an attituda of salf-relhaoa<br />

anleaenergies.<br />

and ieaeea- heir cssti-ra<br />

(kc)<br />

the multi-lateral a d bilatersl dcncr<br />

k-encies czn help Liberia's developnent<br />

effort by ze-arient- their policies m<<br />

proascues to complement rafiollzi 2116<br />

local initiztina.<br />

3. Y h t in order to cperztiodize tine above Tactical Yaaauz9s,<br />

the foll~wing Follow-ug Sctiona are to be taken:<br />

. .<br />

(i) all of tinose involved, dkeotly or iahc* uiYa<br />

Liberia's socio-economio development at the local<br />

level ecd at the nationzl level, a=e &-acted to<br />

take bediate steps ?OY~=& tthe rs-ozisntatieb<br />

md ze-modellirg cf &Aelr pocedures ~d acti-rities<br />

the areciion of the above Skztejiss a C .%cfioal<br />

Xeasures. In tke procees, a tsto way occsnltation<br />

vith County Xnhist=aticns mt be eetabllshed to<br />

ens=- that these Stzategfae and Tzotical #esarr,-ea<br />

are rztional intamoven <strong>with</strong> a strengthened Csuae<br />

Iais+ation. h this logad, an 9volwze=+ ia<br />

Liberin'a socio-economio developmect ia =ecoqLzed<br />

at ail stages; i.c. identifica-llon, pro--,<br />

fnplenentation, evolue+icn and/or opera3ion.<br />

(ii) at the rrctionnl level:


tz+.'.-.n in tho yi-rate coskr csxecttid<br />

<strong>with</strong> 'I,: berin's aocio-i~ormic deve'lopment ,<br />

j 1 . 1 oo:~r:oro:o~~n, ifitcu~i<br />

Or;;ilr, t~ntiann, Youtii Or:;'ruti:mbionu, Vol.fr\rs<br />

Or~nnization:~, Ccoperuti-fee , r-rd Uuahoon<br />

Ejtablishmente shall submit not later<br />

th-m 31 Deceaber, 1978, to the Eurd<br />

P.lelopment Task Force to be estabUxhed<br />

by the besiclent, detailed Planof Action<br />

insicat-the present nature of ita , .<br />

developmental functions, adninistrative<br />

err~nqenents and activities a d how, these<br />

fur.-tks., m~nigt~etive arransrernents and<br />

--<br />

acti~ities are to be re-crisnted end restructured<br />

to fulfill the raouirementa of<br />

the adopted Stzategies a d Tactical Measuzaa.<br />

at the intarnational level, each multi-latetal or<br />

bilzteral exkerns1 asaiatance agency is requeated<br />

to provide the Goveroment, though appropriate . ..<br />

channels, an indication of the possibilities to<br />

orient it0 policioo md prooodurea for anniatnnca<br />

to Liberia in 1b.e <strong>with</strong> tho adopted development<br />

Strategies and Tactical Neesures such that its<br />

eosistvlce willfully complemant and ~ o ~ i e<br />

<strong>with</strong> the development efforts of Liberia.<br />

\<br />

the Ninistzy of Pl~mning and Eoonomio LUfai:s 18<br />

hereby directed to submit to the Satlopel Planning<br />

Council by l :'arch 1980 an overall medium-tam<br />

Cstional ~o~!konomi,c Develoment Plan to take<br />

effect in fiscal 1980,'81. This will be<br />

fodated <strong>with</strong>in the fr-dework of the newly<br />

adoptad national develoy!Ient Strazelies a d<br />

- Tactical arieztn..;ifi.<br />

A "3urd Devel6pmont itaak Force" is hereby established<br />

for a two-ye'- l;eriod. Tho Task Poroe ohall aclminist=;rti:ely<br />

be attached to the Offioe of the Vice<br />

Pzeaident of the Republic of Liberia who is hereby<br />

appoicted as the Chdrmm of the T~sk Borce. The '.<br />

Vice Eesiciant in con-~ltation <strong>with</strong> and approval of<br />

the Freside:;t s&*.ll ollco all other appointment8<br />

of a yo,"e3c.f.z;L.l nata-e. Tke Ruzal Developcant<br />

Ta~k 5'0-2s shall c c o r ~ t and e mouitor the iaslementotion<br />

sndfollow-ug of these new dewlopwrit<br />

proctmea. To detedm the ex+mt to which the<br />

new SXaLagias and Tw.tioal 3feaswes e=9 being fuliilleG,<br />

it shall be th:! fuctions of the Task Force:<br />

. :<br />

:<br />

, . .


(b) to evnluato and sonitor the extant of the<br />

trzmf ar of euthoritp :m& =eepocoSoi2i ty to<br />

tne county 1%-1 u d below e3d the delegation<br />

of au".':rie to Lccal =apresentatL?es of the<br />

iapleme~ti3g z d au~gcrti3lq mi-1stzfes ud<br />

zgenciea. <strong>with</strong> the ojjectivea of emu-ix . .,<br />

apeeay delivsm of xescuzces to.sntisfy the<br />

legithate aapizationa of the --A people;<br />

(a) to organiza action-oriented atuLtoa LI all<br />

pertinent ospecfa of ,~rzl developnent vith<br />

spcial reference a d eapkasis to the Strztaeee<br />

and Tectiael Meaeurra adaptad; such staSse :o<br />

contiaudly enioze =a aonitor, the c-*<br />

ormisation, activitiss ~nd pcrfomazcs or' 528<br />

i.wplomuntir~,q !\lid mr!rporting miniclt.rioa rrnci<br />

agenciee and the stmcture at locel,. netiosd<br />

ond fntenztioxizl levels a d the -ooorU=stsd<br />

md timely de1lver.r of hputa et all levela<br />

&&oqh an qapro.oriate w-rnent eystan of<br />

operatfocal planlag and ?msssa controls;<br />

(6) on th basis of such skaea, to make peciodic<br />

recommendations for further sotione <strong>with</strong> a +-ev to<br />

~chieving the jwqoaee ol' the St=ategies cad .:<br />

Tsctical K 3 ~ s ;<br />

(e) to pre2ere gaidelines for =he bplaaectaticns of<br />

tke Strategies emd to recder euck advioe ard . .<br />

*zaiszace to the i=eLev^&t autfioritiea es -4 be<br />

lequfxad;<br />

(f) rn ieter than 31 Y=ch 1973, to pap- for<br />

submission to the Xational 21'lsnnFry C ~ c i l<br />

n aora btdled taaticd plan of action ?or<br />

thr *lamentation or' &&e rzew Stretee-eo, for<br />

the aqiddanca cf the Xkis-tq of e3d<br />

Z~ocomic ?Lefl'-s LI fo+zzdatiq the lee<br />

Satlorel Socio-Zuoncnic ??a.<br />

Ginn under xm bnnd FL& the Seal


2'. ?he ikscutivs Order Fa intended aonq others, to con-<br />

aolidnte 'he trends which B-le bcth explicit and imglicit in pre-<br />

vious proncunoomont of Covomt~nnt; to flooularnto tho Lnglementn- z ,.<br />

tion or' till n.gprcnch to mtlonnl devolopmunt in general end real<br />

~lavolopmont in partioulrlr alrandy discernible its embr~onio<br />

form In i:'ational Planning Couccll docu~nta; and to &-tik%io=-<br />

lize ,?ad ayateaatize the- kinds of activities in the .ereas .<br />

vhich hve been precipitated by tactics such as Ball3' Time md<br />

rotation of hdependence DRY celsbrations among the ~o-aitiaa.<br />

8 . The motivation of the reeidents of the rual sree a d ..<br />

their self-help aotlvitiea coupled <strong>with</strong> the sup&ti~e eotibns<br />

of fioctoral agencies and County BWnistrxtio& have come.ebout<br />

29. Implicit in the Executive Order is the belief that the<br />

exist%- projects and progr-es sre Fn the riaht direotion,<br />

. .<br />

-<br />

. .<br />

. .<br />

. .I<br />

. . ,<br />

.*<br />

. .: I<br />

, . , .<br />

1zrge17 through the Prasidentts personal interrention. 372%<br />

vhile t.Mn process has indeed heightened the level 'of conaoious-<br />

,=.<br />

. :.. :. .<br />

motlri of m:d roeidenta ~nd Government employee8 and haa made<br />

poofiible the penetration of development into someof the rurd<br />

.-re=, a process which will both diffuaa and aslatab &aveIopment<br />

acti~itiea i.=~ the me1 areas is now called for. The Ekecutlye<br />

. -<br />

' . '><br />

.<br />

- :<br />

'.<br />

.-<br />

A . '. ..<br />

.. ...<br />

bi.. ..I 3- - :<br />

.. ' .. ... ..:<br />

Order is therefore an attempt to tranafom the pesaoml and .- ,<br />

q~bolic act8 of the heeldent into such z process, through the<br />

' . . . .<br />

i<br />

hplenentation of the newly promulgated Strategies znd Tactical . . ... . . 1<br />

:. :+= ...<br />

Eersu-es . . ,<br />

but rrhat i3 now of prime 1;mcrta~ca is the welding together of<br />

these'activitics Into a consrent dnd well cocrdhated ayatam;.<br />

.7 n-pten which by ita very design will rsm-re the impedimenta<br />

wltlo!t !wu c=.Lsi; :uiii tima frtui;l-t..rto tho dlnporolon nnii auculo- . .<br />

. - .<br />

ration of &?elopzent asti uitiaa. ~. . . . , . 7..<br />

.<br />

. , .-<br />

. * !<br />

. r<br />

,<br />

.. :<br />

. .-. -4. ,<br />

,. . .$.. - .<br />

JO. The Executive Order mat therefore, be effec%ated b . - .,-<br />

the fieli? an auickly aa possible il' the moti-iation of the raaidenta .. . ,<br />

. .<br />

..<br />

-- . '4 .;<br />

of'the mrJ areea is not to be dissinatd by frustration. ht . .<br />

. . .<br />

t!lL: (!am ?I*: necoaarxily .vnn n, discard4 of ox!otL~g praJacts<br />

a d procmmes for new ones. . , .<br />

. . .-. ,


jl. a1 attxpts will be mde by tbe Task 7orce -te ewv=9<br />

tkt the rxpid prc,gcass envfsa,pd bp the eeCaElishment oi thia -'<br />

-<br />

proccns in achieved. aowever, it 1s realistic to note +hct 5.2<br />

~i~wi.~; the geriod of tine ncxt .Fr?f~, projects and pra-ea ata<br />

or>aized <strong>with</strong>in the frmework of the elenents of the n-eu a-kgies<br />

onl~ at the level of the Coullty anci not, Selow, oz? o e a<br />

iisited rmber of =ew Wds of pznjecta sre b&oduced, it w ill<br />

be e movement towa-ds susteizec? dewlopment vhioh awza well<br />

for Z?e fuk-e.<br />

32. Tke Zxecuti~e Order accepts the fzct *&f die-s ol<br />

mnt -moblams should be solved.<br />

'.


Urectbg that they provide aassssments of the ;oaPner in which<br />

the* orgulizetio~; can 5e rr,tionalized to confor?n to tfie sfrate-<br />

. me activities of the Exercise ctrc be grouped into three' ,.<br />

caiepries according to the dodm,nt gqoee being semd. The<br />

ihae categories iiiclude promotion and ccordinetion arrangemeate; .<br />

pregarxtioa of place of action to implement the a.&ate@;p; and<br />

progarstion of contribution to the 1980-198~ Medium-tern ~stional '<br />

j;~~~op~o~-~~c~o~~~~~rn~o<br />

ncvel~anon-t-r3-~;, Tho throe typos of activit iaa aro<br />

desimed to be mtudlly reinforcm and, to an extent, will ta4a<br />

place aiiziztaneously. Each, hawever, has. it$ ow? xsquired 'hput.', : .. .i<br />

. . ... . -.<br />

*-. *--. Activities -- c~ncern~~~i,S~~~~~omotion<br />

and coor~tion: ....<br />

+?., . '<br />

jj. The Strategies md Tactiaal ileleaaurea, ih the fo&.of an<br />

'<br />

:kecutive Ode=, has been aromulgated bg the President .&a'-, . -:+. . ..<br />

1978. Since the gropoads for tho adoqtlin of these ~tratigiee .. .<br />

and Tnotical Mea-es for national development have far &&ecbing . . '<br />

~ormo~~uenccu for the Natioa, it is auggestod that the President '-. ' . ' .<br />

ahould 'dso make a mtional >rcadoast to &clw *i;ieayread ittontion .<br />

to both the pcomu1,~tion of the now Strategic0 And Tactical Mee- .:<br />

mrsa fox rarzl development as well a8 tile eedablishment end porn- . .<br />

gosition of a Eurd Developmeiat Task Force. Suoh a b-~oaduast'cen<br />

outlhe tine Ad~.lnist=atist-aticcfs ccntiiius2 seazch for ways aad means<br />

of raiaiag the livqbg stan&-ds of the poor of %%is society from :<br />

mx: to mttresaes by traciq the varverious development oriented<br />

&tiom initiated by hLs nCminiatraticn since 1971. In addition, . .<br />

. .<br />

the I'rceident cim call on locnl experta both vi+&n &id <strong>with</strong>out<br />

Cave-lment ?a offw their expertise on e. ~oluat~y basis in the


36. The Bural Deveiopment Task Force, esta5lLahad by tae<br />

~zscutive Order, oen beooma fucotioaal by duGt I. 1578 viA& *&e . .<br />

t-,ppofn&ent of it@ members before that Zata. Uso, by h p t 3;<br />

s - . -2-<<br />

177n both midelinon for naoeanmcnt of key private and public :. . . . -<br />

wncies, institutions and orgzaizetion end =sqwet for =ei= .<br />

submissions of draft asaeaameota, by Septeaber 50, 1978, &od-d -.<br />

. .<br />

be fozwdad. Isloluded in Sia jackage will be i let& b - .<br />

. .<br />

the CL?i-= of the X ~ a Development l<br />

Task ?o=Ce o,rfi&il? .<br />

'<br />

Lmitiog '&ern to pe-tlcigate 21 the hLIal Devalcpent ?23t<br />

..,- -.<br />

Ezercise.<br />

37, Sepcate briefing aeeaions -will be ~3.1-0 by<br />

Aqut 15, 1978 <strong>with</strong> Henbers of &&e Legislak-e; Kembers of<br />

. .<br />

3. 'I?loao Sriofi* socnionn whioit will bo oc-aponaorud by<br />

the apropziata Miniatrlee Jrr? tbe %ak Zoroe uill 3e in<br />

$he Lzst Cdo veeh of A-t 1978. n e puz7oae of nee%*<br />

is trio-fold. Z'L-st, the Tzsk Porce "tends Co brief tke %+of-<br />

?ate on the action8 taken by C+vel-uoent sbcs +Ae d;rr2 Cunf&=eaoe<br />

I- I -


I l l ~ ! l ~ l:.l:Ly ~ ~ : S ~ R 1.1 n~t. phnnrt. .:nclond, tho l'uk Poixe oxptlu'ti, to<br />

ol,i..-.j.u (:omxnto on the oxorcinc from the rcpresontativos' of<br />

ke:r :qyaxios, institutions at2d orpni5ations in the- pablic end<br />

~rivate oeotors as well am some feedback from them on the kin@<br />

or* eqertise, a3a the possible duration .of such eqertisej. they<br />

~ill re&cee in c.:ming out their rea?cnsibilitiem in the Zxer-<br />

ciae tocether wiLh teems of reference and Job desariptiona for<br />

t!le experts.<br />

. .<br />

39. By Scptembor 1, 1978 initial ae1ectio.n of local private<br />

and pujlio serrice exgezts for volunteer se-ce tc local A-i- . .<br />

strations end Civic and Social s el fake Or&zationa as well da<br />

1: :<br />

1<br />

-<br />

. -<br />

. ..<br />

.,<br />

.- . . .. .<br />

1-<br />

. .<br />

.;<br />

. ..<br />

~ ... :. -.<br />

: -<br />

.I r<br />

:. . , .<br />

.- . - . . .<br />

their briefin- and orientation be completed. -. .<br />

-<br />

.. , .<br />

.!.0. me national voluateers identified and selected for<br />

uorv.loo %IT the rural nrens inunt be prcfeesionnlo in diaciplinos<br />

tihioh .?re relevant to developmental activities. However, while . .<br />

-- 1<br />

acdenic i~ualfficatione will be helpfull, local eqerience &ad<br />

,."<br />

. .<br />

.,.<br />

~. .<br />

-<br />

... .<br />

". ><br />

ocrnaj.tsant to ntnl develoynent will be the major oriterta for .-<br />

-- .- - $.<br />

czl be assigned to the lccal add& '.<br />

selection. ~hese~mlunteern<br />

.- ,. - .<br />

atrations on the basis of theiz experfise and chiioe if locatioxl.<br />

S&litiojzll.z, the Superintendents, upon a detesrmlslation of their<br />

. .<br />

. .<br />

om re+rement for ergertise, can initiate the preceaa of - .<br />

identfXping and selecting the loozl erperta they desire and<br />

=om the Task Force of same. i?urther, some attempt will be<br />

m.dn to invlve sembers of youth soupa and other pzivata okgani-<br />

r,::tiom <strong>with</strong> the raquicite oxpartise. The Task Force will also<br />

meet periodicnlly <strong>with</strong> Liborinn profcsaionnl~ to test idea and<br />

elicit 6%-gestiona cn issues pertinent to ita activities.<br />

41. It is envise.ged th?.t by September 15, 1978, the ?lace-<br />

me:? of these eqerts alcq <strong>with</strong> ezangements for their aecond-<br />

ment, trmcl and su'osinfmoe will begin. This pruces.9 is<br />

ea~ler-,tui to be undertaken jolntly hy the Tmk Poroe and the<br />

Liberian htitutc of ?ubllc LW.at2efion.<br />

i


3 . A nation-ride radio a d taleviaion panel diacwslon<br />

~ 9 be 1 jrogramned by August 15, 1978 <strong>with</strong> smbe-rr of-the Tgk<br />

. -.<br />

Yozcs. The panel discussion which 1s -tended to genente - .. -<br />

nationnl Uscusaion should be desimd to both . .<br />

at.-+temeuta aade bq- the IlasfBent as well as hacate aoae of '<br />

the tec?.n'cd. aagects, eqecta$ione ez~d L~ctioul d? t&e Taak<br />

. .<br />

zorce o;ier t b cext se~eral mnthti.<br />

ia>or?at for wnciea, hatikatilts &<br />

looked 5 by obaoleta le@la:ion<br />

a-%-t=afive k~sagemi?a%s Mcb mj be<br />

effecti~e<br />

3erfo-e. Such oonatzzts<br />

Li the ~aaeesaments.


XDT4/mc/1 - Page 20<br />

aa pzivnte inoti~atione, agencies a d or~i!32tio~ is a<br />

necesn-J first step. As such, it is proposed that the Teak<br />

&roe prepsre ad sabmit guidelines 57 Augzst 1, 1978 to all<br />

, zctive a d potanzicla active egencies, *:izutiona, eto.,<br />

involved in ryra?. development or activities supportiva of<br />

rural development for their cornideration prior to participat-<br />

ing in the brief*-$ aessiom noted above. The Mizlistriea which<br />

me 00-eponcoring the briefing sessions will be aaked to for-<br />

was6 to the participating organizations these guidelines and<br />

otiir relevant material along <strong>with</strong> the letter of iwitation not<br />

latar than August 15, 1978. The guidelines aze intended to<br />

provide the pe-ticipating orgaaiaations <strong>with</strong> 2 mlstivelg eaag<br />

refereace point for their &aft assessment task which is ta be<br />

aubnitted not later than September 30, 1978.<br />

47. By .337Tovember 15, 1978 the Task Force o a re- the<br />

draft assessments along <strong>with</strong> its own comments to the various<br />

- O I , ormnizntionn nncl 1:lrrtitutiunn in ho3.h tho public nnd<br />

private sector for finalization. For thoae aspects auch aa<br />

ooorriination of socio-economic and technicel research which do<br />

not fall <strong>with</strong>in tine perview of any siqle agency, organizazion<br />

or institution, the Taak Farce will still make tie neoeasarq<br />

asoeasmonta. The Taak Force should also reoeiw final aasesasents<br />

from all xLmncios rmd inatit~tiope not later thaa Decemt<br />

...her<br />

51, 1978.<br />

4.3. B*.tween January 1, 1979 and -oh 31, 1979, tfie Task<br />

Foroa &sa.ld analyse the final assessments and submit to the<br />

Dationd Pin-3 Coacil b~ lrluah 31, 1979, a detailed Plan<br />

o.f Action for the im~lemcntrrtion of tho rursl development<br />

strategies and tactical measures;<br />

49. A major activi'ig vill be pralininefy identification of<br />

pro-es and projeata n;?ropriato foz rtmd development in<br />

- L-,<br />

- '.:':kg Li-o acccvnt erist3ag condifions and the applica-<br />

- ria,<br />

tion of *he naw strazegiee end tactical meaau3ea. As alrsadg<br />

.<br />

. '1


.:g=e=d by t;?.e ;;CC T-2:; ?ox2 or: 3sz-zl 3cvelc?-esf, ezc5 G.S. age=?<br />

-,ill prou',ce ~7 e==l:r >.


A u-y 2 L s h ~ of a ~ ~otivitiea ~ of the Exeroise is ?resented<br />

below:<br />

1. Il_rkotion of tho Strates<br />

(a) 3riefLng sessions for Legdslators.,<br />

member6 of Cabinet, Superintendents<br />

Heads of Goveruoent Agencies &ad<br />

representatives of Pzinte dgenciae,<br />

Inn titution and Orgsnizations .<br />

A-t 1978<br />

2 weeks<br />

(b) Organization of panel discuaaion awst 1978<br />

2 weeks<br />

(0)<br />

Task Force vfsits to all counties<br />

for kriefing Councils and Committees Segtember - Boexuber<br />

and olarif ying tsska . 1978, 3 months<br />

2. Assess~ent of count? s&idstsative<br />

syatemn end swoaration of Plan of<br />

Action<br />

.-<br />

(a) ReorrLtment of intermtionel Awgrzet - September,<br />

tcdc consdtulta on pldng and administration 1978, 2 moa&<br />

(b) Seleotion briefing and orientation of<br />

local privata and public sector eqerta Auguat - Segtember<br />

for volun%eer service Co looal admini- 1978, 4 weeks<br />

atratioas.<br />

(0) Placement of national volunteer<br />

experts.<br />

(d) Prepzratio3i of ?re- asses+<br />

mcnt rsporta by national eqerta<br />

mine: cotmty/ret$otml npproach.<br />

September, 1978<br />

2 weeks<br />

August - September<br />

1378, 5 vaeka :<br />

(e) Tzsk 3'orce Workshop <strong>with</strong> hatetional<br />

todo conaaltanta, US*<br />

prelimfosq reports (d) &on for<br />

Xovember, 1978<br />

2 web formulation of guidelines for furtkar<br />

aaseesments of counties and follow*<br />

n regionalization approach.<br />

-<br />

(f) Preymtion of a~aonsmonta of Counties xovambsr-Deoembor<br />

by internationnl consultants <strong>with</strong> 1978, 6 ceeka<br />

Suoerintendenta. keeping in mind<br />

re&onal development oritaria


( ) %view ~ynthesls of c3mt7<br />

anscssnezto (f) abovo by Teak<br />

Borce sad interrutional condtanta.<br />

yl?a., 1579<br />

1 monca<br />

(h) Find eduatioc of asaeamtent<br />

reoort by Task aorce end Super*tendents<br />

and preperation of Plan<br />

of Action, for mbmissioc to<br />

Ja. - ?t&-ch<br />

1979, 3 zonYks<br />

Sations1 Pl- Comcil.<br />

(3) iisoistancc in Frspnrxtion of =an., 1979<br />

3ntiord Socio-Zcon~dc Develm- Teb., 1980<br />

sent ?la coxmiatant <strong>with</strong> 2rcc~tive 1 4 Jont;=s<br />

We= 1 for submission to Katiod<br />

Pl- Council by Yg-Oh 1, 1980.<br />

(c) Preperation end evaluation cf<br />

%ogress Report for t2e ACC Wal<br />

development exercise on the first<br />

?ham to Jme 30, 1979 vitk oolljboration<br />

of UH -0ies.<br />

(a) Guidance end coordination of iJ'N<br />

agencies in thek staaea for<br />

reconadesance end >reject idcntificcltion<br />

or' aectcrd cm2 count?. ?rojects<br />

to be fncluded.3 the Xatiorel<br />

Socio-Zconomic Develo~ment Plea acd<br />

UN teohnicnl assistance m v m .<br />

(e)<br />

Fodation of a aecood-we EiDP<br />

aroject for h?e~=~&tioczl asaistznce<br />

I- 3plementatioc of tie Tationd<br />

Socio-Zcononic i!evelomell?; PI=.<br />

(i) Guidance a d coordba=ion of eLstiz2<br />

or new pilot or denonat=ation gr~jecta SeptaIzSez, 1979<br />

at local lnvol 'n line <strong>with</strong> ?l,m ~f<br />

to Z'eb., 19EO<br />

:\ction cu~d yrogarat.ton of gatLord 10 sonA&t<br />

Soaio-Zconornio Develognont l'lm


. - - . -. -<br />

-.- *<br />

I . . l'comzntion . . , of "vl reoort on<br />

a P C<br />

0 0 ------+<br />

(a) Beport prep~ation by ~roject June, 1980<br />

ooordinator. 1 month<br />

50. The financial ilwementa a m in two parts. ?he first<br />

pat, representing Government 1s inpats, tot& $205,961 for fiecd<br />

1378/79 alone. The eeoond part, representing the inpnts of tba<br />

~,-lito


tunoo lo tho lood ICOM YM~O thoi-. ser-ricee will be =?&=ad.<br />

55. Provision for office spece for 10 pezsona ii dso i3elded<br />

in Chverzment'a inputs. W s<br />

mininun eFce requirersnt size apart from its own staff, if will<br />

is envisaged by tb Task 3-e aa fta<br />

. .<br />

host oericdZorilly, over the clur~.tion of the ererciae, met- ad<br />

workchops <strong>with</strong> paticip811ts; provice office support for all ccs-


57. Provision Fs TO be aade in tb 2xcrcise for tie sub-contnct- -<br />

ing of the nfne con~ultants on rural development pla-e and<br />

a&iiaiatration. The Govemzmnt will undertake <strong>with</strong> the assistmce<br />

of the United Hations, the task of identify* and nsgotiatirg<br />

the avidability of these consultants as sp exanple of taohaical<br />

oo-operation anong developing countries (ttdo). It is emoted<br />

that the Country or Countries will make provision for the release<br />

of experienced experts for tbia activity in Liberia upon mimburae-<br />

~ n of t their aderg, travel costs ad subeqstence in Liberia.<br />

It hw been estimated tkt such exports could be obtdned on a<br />

tcdc mrragement at a cost of 38,000 at tka most per consultant -<br />

for the Llree-month assigoment. The County Superintendente in<br />

Liberia would be eqectad to co=oprate in Peking eccnomical<br />

subsistence ar?x%ngeizent for the oonsultsnta in each of the oounty<br />

seats.<br />

-<br />

XnGment :<br />

5a. loxu vehicles, 2 Pe-oet family ~ ~ aad n2 Toyota s tand<br />

Cruisers, are to be pcovided to the Task Forcs to assiat fn the<br />

transpornation of fhe consultznta. l'he family wagons will be<br />

utilizod in traspa-ting project staff between ninistriea, agenoise,<br />

cud other gwvezzment institutions in aad arowd Monrovia. Tb ,<br />

Land Crdsera will be used by the project staff eagsged in snaistbg<br />

+he load Govervnent Administrations for hter-connty trawl.<br />

5*. One Miseognph Fkchbe, One Photo Copy Mshcine, 'PYO Cd&tors<br />

and Your Tpniters are to be prodded to su~ort reprodnotion<br />

operztiona of the office of the ask Force. Administrative aupport<br />

in the fom of supplamenta to the &vemmnt budget for 2 seabtaries,<br />

fuel ad nabtenulce and the sAationery aad su~lies to 8 total of<br />

$5,000 sro to 3e provided. Contingenoiea, specificdly La respect<br />

of pos3ible extensioa of the duration of shcrt tan! conaultancy<br />

semices are to be psovided. At tbe end of +A6 pojeat, dl<br />

provided project equiprent will be tur?lod over to UEBP for naa<br />

LII fukm dizect support projecta requir- these inguts.<br />

*


60. The Central Govorchont hp1ementh.g md wxortiq ancfee<br />

a d Inntitutiona in oonnoction <strong>with</strong> ?re?arstion of ds'alled 21-a


I<br />

~~/'Doc/L - :'age 28<br />

In terzro of promotion md coordinztion, the a-~rcise will<br />

result in a vide diasemilnation of the new stratag?' ax? the mobill- .<br />

zation of governmental and non-govanmental reeowoes in support<br />

of it.<br />

62. The Rer~ise will also reault in a series of Plerzs of Aotion<br />

by CounCf ;Idminlstratlons, Gooernment Agencies arid pivate sector<br />

orgzzations which indicate +& present na*e of *heir developmental<br />

functions, administrative srr-emnts and acti7ities zad<br />

how -2aee functions, abilinlstratiw arrangeunta yrd actiplties<br />

&?e to be rs-orieated and re-etructured to ~XLfill &&e raquiremsnts<br />

of the rurd development strategiee and tactical meRsucea. kee<br />

will form tfle basis for e draft Xational Plvl of Aa3$,01?. on 'seesurea<br />

Q be taken to implemnt the zf?w rurzl developmnt strategies.<br />

6j. FWlly, the Exercise will mnlre poeeibla for indunion in<br />

the new National Sooio-Economic Development Plvr 1900-1964, a<br />

draft seotian on the rural development aagecta of the inoluaiw<br />

;~pcta of external assistance.<br />

"


aazt. has also czeetzd a h-al Deveiopsent .Tr& ?orce-wkAcD- is :a.&d=i-. -<br />

strativelp attach& ta the office- of<br />

.<br />

. . . . .<br />

. .<br />

. -.. . .:,.- -. .: . . . . . .<br />

. ~- 5.. r<br />

.... . . -. . . . . . .<br />

. . .<br />

. - ~. .... . .<br />

....<br />

.<br />

the Tice.2esident.azd c ~ d s a - ~<br />

- the Vice kesldent of LiSeria as Chat=*&, d .fcez.o*A~.ze~Be:s~<br />

. . . . . . . . . . . . ...<br />

-.<br />

. -<br />

on SekE of. th+ Gav-eat hss also ..... -<br />

. -


. ,<br />

. -<br />

. . . .<br />

. . .<br />

. . . . . .,<br />

. .<br />

. . . .<br />

. ;-. .<br />

Fi 3<br />

. . . . . ,,, . . . . . . . . . . *,<br />

,. ........ . ..... . . . .... -<br />

... ''I : -<br />

. ,..+. , . .. : .;. . .<br />

. . .; ~. .<br />

. . .... . , . . . .<br />

. . . . . .::. ........ . .<br />

=efaren,ce of tbe Rural 3evelopnent Task Yoroe vhich, amcg othar things;, ; ,<br />

has the respcnaibility for orchestrating the' Tda-Year Rural Developent ~<br />

Pilot Rsrcise. ...<br />

The entire &al developant exercise viil be pxesusd & thee' , ' . ., .. .<br />

. .<br />

. . ; . . . . . . . . . >'.. '. .:..<br />

disthot but ove&ppiw phases, vith each phase having its 0% 1 . . .. ,..,<br />

. . 1.. . . . . .<br />

. .<br />

richeddes, tasks aad gods. Phse I which began <strong>with</strong> the h-,=l" , ' ; .....<br />

. ... . . . .... . .:..<br />

.. ..I . .<br />

Develcwnt Assessment assion vill tamiziate after tge estabiisbent .', . .<br />

. . . ........... . g..i . . .<br />

... i-*-'. ' ., ' .<br />

. . .<br />

of z X%tiorel ?Ian of Action fDr the impleaeatation of thi Strategies "....<br />

. . . . . -. .- ..:. .... . .<br />

an6 Tectical Meesures. Phase ii &hioh will begin tovazrda therod<br />

. .:- : '. .: . , . % .<br />

. .<br />

...<br />

:', . . .<br />

. . . . .<br />

. ;.! . . . . .<br />

?kaoe 1) possibly in JsaE-try 1979, will have as its .&jar goal 'the<br />

. .<br />

. . .<br />

. .<br />

iderrtificatioq of projects sld grogrannuas to be hplemented &the<br />

...<br />

. . . . .-<br />

&-; . . . :., - . ,.: .. ..' . . i .<br />

. . .<br />

z a l Gees <strong>with</strong>in the term of the Bztiond '~l& -of Aaticn as r&ibli.shed :. ,. ,.<br />

. . .. .. .,+: ... ; .. ,-.-, $ :<br />

-. . ... . .<br />

.....<br />

5y ~ a sI: e ma2 III v~ch is 'viasled aa the e i d phase ii the ...... , ,,. .. ,: . .<br />

. , , ,_ ._ ;.- ' . .:>.<br />

.. . ,'.. . . . -.<br />

'F<br />

Bercise end All overlap <strong>with</strong> the latter part of II, possiblg<br />

. - . . . '?<br />

" . . . . .<br />

..; . . .* i<br />

in July 1979, will involve essentially the detailed progzarming bf . . . ?.<br />

==a1 de~elopment projects and 2rogrsumes identified in the pra~ioaa<br />

. -<br />

. -. . ..- . .<br />

phsse ac6 ircludad in the 1980-44 Fedlorn T~D' ~oci&~corcnic I&. . . .<br />

All actors in the.3~~21 Develoynent~Eierciae<br />

vill be oonstantly<br />

.: .<br />

.......<br />

. . . .<br />

L . ' . ,..<br />

-. -. .<br />

. .<br />

i=foned of the progressbeing de, the tasks for vhich they vill'<br />

. . . . , ..<br />

. .<br />

5e rssjmnslble znd the kind of 3u.ppaz-t vhich viii be avhlable.<br />

. . . . .<br />

Souever, oC bediate ooncem is the proced-aes'to be follcved and<br />

.<br />

Yte activities to be undertaken in Phase I.<br />

. . . .<br />

, .- ,. .-<br />

hse I of the %3rcise is pa&-ily<br />

. . ...... . . > .<br />

concezea vith the establish-<br />

===? of a !:ationel Tlan of Action for the bqlenentatim of the nev1-y<br />

.. , .


ti-re units belm the level of the C O M ~ as veil ta aontaaous &/or<br />

. ...<br />

.~~ .- .--<br />

. .<br />

tzaditional ht1t;ltlona of the =aral people; and pimtd hii++


Task Force felt that the ecriicz &tee, i.e. September 30, 1978 and<br />

Decezlkor 31, 1958 ~io~ided adsquate t3e for aubmiasions of the drdt<br />

a d fhal asaesssents resgectively. -her, theaa eclier dates'<br />

will make it possible to maintain the a&e,dule owisaged . . in the. :<br />

@ecutive Order.<br />

, ... . .. . .<br />

. . .<br />

'P. . ...<br />

The esrlier dates for the aaseaamenta also irean that the process<br />

of identifying and eelectizg local volunteer experts to.assist the ..':.:.<br />

.. . ... . - ..<br />

County Adminiotrations ad Social Welfsre and Civic Organisations<br />

6 .<br />

. . .<br />

mat be acoelerated. The Task POZ-,~ haa suggested two poesible vays?'<br />

. . . .<br />

.* '<br />

of doing this in its papez, "lmpletezlizg the Ezsontfoe Grdern-. .: l?x- . ..<br />

..<br />

., . . ...<br />

. .<br />

. .<br />

some deciaiona mast be t&en quickly Ff this Bzerei.se is to be . :< :<br />

? .<br />

. .<br />

. ,<br />

. .<br />

. .,:. ,:<br />

aescingful. As such, thoas pazticipnts .who., would. li+e to- bays: . ; -ii' . .<br />

. -. , -4,.<br />

vol~uztteers should indicate this to the Task Force as ear1y:aa pooasihle.'<br />

. .. . .<br />

Addltlonallg, the raepccsibility reat uith each,~om&ent Ageacy - -I.. '<br />

a;?d -st= as well as each Local ~ ~ a t r a t i errvislj3e.i o a .as ,. .t:. :., .<br />

. .<br />

reqPiring external tecMc4 aseistancs in the auhmissionof its : .<br />

fi3el assessnecta, to t=2.nsmit to the Task 3orce by September- 30,<br />

1978, terma of reference and job deacriptiona fcr the eqerta. . -<br />

neee shculd include a short bsckgso~ on the Qancg, Xiniatry *r<br />

Local Abbist;atioc, the kizcl of technical assiszance nasded, the - *<br />

dntles cf fha expert, the de-etion for which the expeitiae is rsqrrl-ed,<br />

4 facilities which vill be mde svailable for the expert.<br />

It mat also be poi~ted out that the asaecament task is meat<br />

to he ncre than eiTher e ;orod recital of existizg problems dr a<br />

aera cataloging 03 each qencg's pre3er.t developmeat fuxtions,<br />

e.&mhistrztive ar=qcrr,eata end ectlriti;s. These slementa ssa ideed<br />

. .<br />

. .<br />

, .<br />

. -<br />

...<br />

*


: . .<br />

. ~ . . - <<br />

.. .. . - -. _ . .. -<br />

. . . -- -.. . .<br />

. .<br />

essentid and vill shed light ot the agenoy's jrzssexA ce~bllltics.<br />

. - .-<br />

-zi. . . . . - - . .<br />

Y-<br />

.e.*<br />

.<br />

of the po%entids inherezt b. eeoh agenoy & the 3r+ocnditioc~-~-.. . . -. . . t s..:-<br />

. .. . . . . . .<br />

tsak is an artiniletioa by each wncy of, -sic< ,%. 3t: yg& .tLe t -<br />

-.. . .<br />

-.- 2 :: ...-r .<br />

:-<br />

totd strrtegies cen .be Zuil? ;mlamente& a. ... the sko2ast pd+sibls .- - . . - .<br />

. . -<br />

. ~.<br />

. .c<br />

the. . . . .- .. . .. . .:.<br />

. . .:. /: - -. . .<br />

- .-<br />

of cIt-f+, the T2ak irorre bs. di-rided *Ae &-as 02 activities ht3 .


(5) evelo lop linkages between yam: ar-. sctivitiee . : . .<br />

~ o a<br />

..: . .<br />

amail acae indrstries which can either . ' . .....<br />

.. .<br />

. . .- . .<br />

m;plp you <strong>with</strong> imta (sazvicas 2nd prodnci;a) or . :. . : . '<br />

. . .' .<br />

" .;. -. ... . .<br />

J . '<br />

vhich you say be able to sumly .dth inQuta. . .<br />

.<br />

.: :. - .<br />

.<br />

..... i. . '<br />

. . . . ... . ::..<br />

11. C~?C/SOCUL W3T2hsE OEGXTZhTZmS ...<br />

.....<br />

r,.<br />

ci<br />

, . . '1 .... I.... ..<br />

..*L~~.<br />

.; >-;* .,: s .-6 ,<br />

. .*<br />

. .<br />

' .<br />

.. :>..:,, ......<br />

*


. .<br />

the rural sreas has csatributed to the desertion .of the. k.&as- :,.-'. , .<br />

by the able- bodied f cr the .concoesicn enolavas and ~o&?odd; ?.,%a<br />

.prbcesa has tanriz5. to creata problems ..both in the areas . ~ fk&<br />

. *e midation bwne as- well a8 at the: t e m l<br />

t s .<br />

'. l;<br />

: 4 .... ':. .....<br />

). . :.->. .*. ..<br />

. .. . . ' ,< . . ,--.:. *: . :.<br />

: .. . .<br />

.vh%~h. ........ ,_ :<br />

..: , . < . . . .<br />

poiiita:.g.the .. :., ... ..: ~:. .,;: .. v.. . .<br />

. . ;; :; ..... ..: , .. .1.<br />

. .<br />

.me Task Force theref ore, beliwhg the*; the.-k.&+oprne& ' . .' . . . . .<br />

: . .......... .,: : ?... -._ -.<br />

. . . .<br />

.d,ecelerate,if .... .' -. .... . , ,.:<br />

of ezployment cpportunitiee k?. the,. mxal .areae. .?dl1 . . . . . . . .<br />

-<br />

idras, -&ions, ~ropcsals,'etc., ia" ..<br />

idantifyicg h e necessa?i prrconditicns far dch<br />

nndartaklngs a d in whichthese ?xe-condfticns<br />

cza be =st.<br />

~ .,<br />

. , . . .<br />

. .<br />

' <<br />

Indicate to the Task Force go& nidmm ~~r,~~'eq&ites - .<br />

far.<br />

,. -<br />

the decentralization of activities as \ell as :.<br />

the Uad of eoncomic lkkngee which cerr be genersted.<br />

t.p yaur activities ad lccztioc in key rural aeas.<br />

~.<br />

. .


kz5cg %a 2 1 6<br />

Task: "orce would lee m e<br />

. .<br />

cd kiplaezt- stages. 2018 spc~F'i-,<br />

. . _ i<br />

. ~. :.:<br />

... .7: .<br />

. . _ ... . . . .... .-<br />

.. -<br />

ZeeCcack :-on & t kal&~+~:. ' -<br />

. .i


. . . .. ,. ,.<br />

.... ,:. .<br />

., - ,. '.. *.:,<br />

. . .<br />

. . . :.<br />

. . . .l.'<br />

. . .., .<br />

......... .IT<br />

:..-<br />

, ......... '<br />

'.<br />

- . .<br />

. , . :... ... > .......<br />

. . +.* . : .....<br />

.mTT/2cc/l/m./l - ?a& 10':'. 1;: .:.<br />

(1) 5 e utilization of the pevelopment Budget to , . . . -?. ; r . I<br />

encourage the integration of development projects '<br />

s<br />

'<br />

in. the' pl-ing, gro+pa&ing a d bpleme&i& . ,<br />

atzgee. This cokd gossibly be acham-pllsheh .anoag.<br />

. . ,..<br />

.....<br />

and<br />

. .: .<br />

. . -. . .<br />

aganaiec by the Ustry of P w . . ~&&&c, . '<br />

. . . . . . . . .<br />

.I :I . ..::> . . .:.<br />

;:<br />

affai-c~ ad by "Budget ~o&ttaek" <strong>with</strong>in es& ........ . . . .:. ., . : , ..>: ,. .. .<br />

.... . . . .<br />

amcy, if in assessing the budget- ;:1 . ' ...... . ., '. :<br />


(3) The eotablish8nt of f 0-1 fw.~ctioaal li-s<br />

emong Donor Agenciea partici?ati?=g in Liberia's . .<br />

. .<br />

. .<br />

. . -.<br />

Rurd Developzmrt effort. Ws ahould be' done . . .<br />

.I . , %.<br />

. . .<br />

<strong>with</strong> the aim of minimizing jurisdidtionsl conflicts .. . . . ,<br />

.... ..<br />

. .<br />

among agencies, as well as effectuating coardir?zi'sd ......... . . . ,<br />

. . . . . . -. ,. .<br />

sssimtase to the entire Exercise. . . . ,.. i '<br />

, .. ....<br />

\ ?. , , . : .<br />

:<br />

. . . . . . ~ .<br />

CmCZUSIc~<br />

. . -. . ..<br />

. : ..,. . ' . . - 1 .. < .<br />

. .<br />

. . . . . I-. . . . .<br />

As noted earlier, the above possible avenues of. acti~Fties . . - ....<br />

. . -.<br />

at this ti& rerely eqloratory and a-e. fatanded to offer sme .:<br />

. . .<br />

.: ', . . ...<br />

.. .. .. ><br />

r..; ,. . .. .,~. '. . .<br />

.^ ~ .. . . .<br />

tentative ideas of .the Task Force. The. list is theref or0 neither . i ....<br />

; ... r. . . ....<br />

...<br />

&nstiva!'nor definitive. Emever, the Task Force feels. that. t@.,.. . ,;.<br />

. . . .<br />

..<br />

. . . .<br />

of auch ideaa can begin to genente additional thoughts .... a-. .: :] ':<br />

. . . I . . .<br />

sugge$tiana on the pert or' .participants and set tfie. stage for .f&h,+ - -<br />

: . ..:<br />

. . . . . . . . .. ,<br />

. . ..? ., ..<br />

I'.,.; '.<br />


. F-roject Y!--er:<br />

Appendix K<br />

.. 0. 101<br />

.ormvlA<br />

REPUBLIC OF <strong>LIBERIA</strong><br />

MINlmY OF PLANNING AN0 EtOMOMIC AFFAIRS<br />

- A un he~eby forwarding for your iafo-matioz co;m<br />

of a colicy caper w&ich contaim our .ziews on tl?e<br />

basic ixstitational frazeuork 2ecessarr for a or=-zeC<br />

crow to assist in tine aevelopect a d pronotior of<br />

small-acale enterpzises k Liberia.<br />

and zegaz5s,<br />

?he Project<br />

Partnership for iroductivity<br />

Yekeg, UWCO<br />

Liberia


-ETT3ODUCTiON<br />

One of the basic 0bjecti~~S of the econopic de-loooent<br />

strzteg~ of the Liberia Goverr,nent is the fuller -+icipticr<br />

of the Liberian people in the nation's econonp. me develoyent<br />

of Liberian-ovned smzll-scale ente-isea ia one of the *dap in<br />

L<br />

-&ich this objective of Gove-ent con be accompliaked.<br />

It is recognized, however, :hzt the c~Tent 2evelo~ect pla~<br />

hid cot zdequntelp deal <strong>with</strong> the izatitntions and ylicy aeamzes<br />

necessary to encounqe and promote the developent or' s-all-scale<br />

enteqrises. As a result, many of the -problems vhich plagued<br />

this aector of the economy a=e still present.<br />

Secently, a number of institutions, sucb as tbe iicrld 3azSz,<br />

TJHDP, FXO, PF'F etc., bve shown inte=est in asaist21g aad Sevelop<br />

ing small-scale enterprises in Liberia. UaDP bas established a<br />

project in Lofa Count7 designed to promote ryal kdaafriea<br />

requirinq a very lov level of cagital. P-e World 3adc, 2ogefber<br />

<strong>with</strong> the Sibez- Developent Coqioration (ZX), hs Sew a<br />

nation-vide swey to find out what would be needed to assist<br />

small-ecale enterplaes. The ktch ordaatfon, ZO, is<br />

woru vita the iiberis 3ank for Develoyinent a=d Imesbent to<br />

develop an assistance propoaal to +he B e ~ e Tor r the ~ develop - -<br />

sent of this sector. The Or~zzation, Z-etshia :or P-C&LC-<br />

tivi*/Liberia and its affiliate in the USA h ve been vc- 9<br />

Jppe= Yizba for about four peazs.


!:D<br />

"OR CCOR?IYATi??T<br />

The proliferation of concen and efforts shown by the<br />

abovementioned institutions and the need for systemtic glan-<br />

ninq for the development of small-scale enterprises require<br />

coordination, so thzt Government can be in the qositicn to<br />

effectively assess the impect of the o-?en11 ?ro,-rm. The<br />

Liberia Tevelopmant Corporation (LDC) which was established by<br />

Govement to perfom such a task, anong other things, ia theze-<br />

fore the approgriate agency to coordinate all proglmm dealing<br />

I<br />

<strong>with</strong> teckical assistance jcd the develonment of small-aczle<br />

enterprises in Liberia.<br />

.~SrnUPrnI?TG OF T3C<br />

In view of the added em$-iasis which Govement is placing<br />

on snail-scale enzeqrizes, it is quite evident that the present<br />

or@nization of LDC is not geared towuds providing the kind of<br />

supqortive semices which will be necessary to develop small-<br />

scale entevrises. 'riithin a re-etrctured TJC, a new departnent<br />

should be established, staffed <strong>with</strong> qualified personnel end<br />

equiqged to do the following:<br />

e)<br />

b)<br />

help in the creation of Liberian entrepreneurship<br />

by conducting shark courses in accounting, bookkeeping,<br />

small business namgement, etc.; in<br />

c~llabo~tion <strong>with</strong> the Siberis Opyorhuzities<br />

Industrialization Center.<br />

identif-y tnd develop projects requiring between<br />

$1,000 - $50,C00 investrent capital;


c) assess Xzket ap-,?z?dties for szll<br />

businessnen; =i<br />

d) ?nvide aavisoq ac-=vices<br />

In order to hprove the c?pbility of -dC to effectively<br />

execute these responsibilitie:, U C will' be requizcd to pre>%re<br />

specific term of reference cle*rly defi~ng jobs -dhich sI..o~lz,<br />

be occupied by com~etent individul's. '!he tens or' rer'ererce<br />

shad be *'.rrwn uq by ;.k=ch 1, 1?79. Imiloiduals ~ 5 tcorsidsra- h<br />

ble experience in ?hi: field md jmvided uder aq- tecjr;iczl<br />

,<br />

osslstace =-=genent will foa a part of the ope-=tiq staff<br />

of the small business dewztmnt iz i3C 3rd vili be =Cui=eO to<br />

to c z q on the jab zfter the ten of the foreiq enezta e~irea.<br />

+zr-lic.~lar attention he8 to be Jaid to tine quality of this staff,<br />

Liberian as well es expztritte.<br />

Xhile the= is no lower 1%: vi-th reszect to the s5ze or<br />

carritzlization of a small bushess, s csil~sq of 3:O.CCO a?zerrs<br />

to be reasoc+ble. Dea~ite the 1-t of tEz ceilia-, Gover==ent<br />

would =Is3 encouzzge 3ushess oenazes 31 a somevkt L-gez<br />

cagital outla7 and emplo~ent effect, -8kich itodd atill 'ZT+ to<br />

be conaide=ed as "s~zll scale", but vonld zot specificall7 cone<br />

uzder this >rog=arme. Gaverr?menr will give attention to *&is<br />

asject when fodathg the -msoectiv~ st~-3egies r'm -2e Secozd<br />

i7ationz~l Socic-?sa~smic 3es.elapent ?la (.iulj. 4933 - 19e4).


?IYAXC 13G<br />

The unavailability of capital and the absence of credit<br />

fac~litier .are tvo of the major impediments to the development<br />

of snall-scale enteqirises. The Govenment therefore attaches<br />

hi,+-priority to the setting up of an appropriate frznework<br />

that will ensure that conceasio~ loans reach those enter-<br />

prises whose projects have been properly screened by the agency<br />

designazed to asaist ?nd provide senices to small businessmen.<br />

The ~ationaf Bask of Liberia will be resoonsible for prc-<br />

viding cre&ir to projects approved by the Liberian Cevelopment<br />

Comorrtion through a credit line made ~ailzble by the World<br />

a& an$ other multilateral and bilateral agencies interested<br />

in the pzom. Financial instlzutions such as the Liberrt<br />

Ed& foz Development and Investaent, the Xatimai Xousizg and<br />

Sa-ring %I&, the Agricultural and Co-operative De~elopment<br />

aank and Commercial banks will be encomed to make loans to<br />

Liberian business under the Credit Guanotee Scheme of the<br />

National bank.<br />

With respect to control of businesses ti??* receive loans,<br />

it should be absolutely clear that only fully-ovned Liberian<br />

busineeaes will be beneficiaries in this prow.<br />

The entire prom will be actively reviewed by the 3oard of<br />

the Liberia Develoyment Cor;lontion to ensum the desired r~sult<br />

of giezter participazion of Liberians in tbe ution's economy.


~ ~ ~ 93 ~ ~ m S ~ ~ ~ > ~ J I S ~ ~ I ~ H ~ ~ I ~ ~<br />

Given the shorttge of jersocoel 93d ,-sources, =he star'f<br />

of the smzll Susizess dewrt3ect of XC IJroper ehoul2 foczs it3<br />

attention for the i-rmedirte 3ture on a fsw L-~EI? areas. ?he<br />

JSDP a d PFP which isve already began ror4 in the x-a~d ~ z a 3<br />

vill be peetted to continue under the -3rella of LX.<br />

FOLLOV-F? -<br />

?he development of nwment skills kt Lijeria skculd<br />

not end <strong>with</strong> £0-1 training ?romes. :n order to Eevelop tke<br />

sgyopriate Susi=ess climte a d attitades, effo-es to pcmte<br />

Lijerfza entreprenemhip should be accmmed by a cz-efal<br />

follov-u? of each enteqriae vhich hs ?&icqxted<br />

-_ i- the jrc-<br />

ma, eo that on-the-jab advison se-??Lees oaa 3e --endereE as 2<br />

addition to fc=l -merit co=ses.


13 tne UiJ3P project document, ::c 3rc progosinf 'xo as?ects of<br />

assir,tnr.cc to r'i~'a1 entreprbneux:<br />

(a) i l ; techaical, 02 nccountiq sup~ort, where37<br />

busilcss e::tegsion agent:: tioul6 emlutte the possibilities<br />

of n~ir<br />

assist each potenti31 eatemrise 7k thc a2propriate<br />

nzeas of support, trainLz5, coorclisation and supervision;


I<br />

~f tile ?.i?Tr: ~12s to be creeteii es n brand] of IX, this would be a<br />

5002. zol11.ti.m Lor insuria!: full coordhtion of thoir efforts aci<br />

fac pnx-cnting the establishncct of another ~ktitntion. However,<br />

wljile PY? has made p?at 3raCress in assisting ent2epreneus in<br />

the LW;0 area, LCC's fuctionc me about to be redefined, and their<br />

ca~a5ilit.i.e~ ,:~iLl not 52 a5le to be detexined 3efore e few yeers.<br />

T5erefore if the R!?IC is establishec? mder ?,T sann~enent an&<br />

~er.:c;-: <strong>with</strong> LDC, there is a ?.2?..-2= . that ~ C ' S takeo-rer might<br />

r:cp,--;crzc!.r: pffcct "IT' s aal=eaL:,' .::uccessr'ul onzoinr;. onerntiolls. For<br />

this rer:zon i xculd su.;cest ti;:;:: t-hc 2TiC 5e established initizlly<br />

oa m 2t::;onornous aEenc7 <strong>with</strong> t!ic proq?ect of mer~;Ac <strong>with</strong> LlX ar"ter<br />

o fo?~ JCais or' operation, when it ill be possible to determim the<br />

exnct forn of the relntionsbip. ,<br />

R!EC could Le set. UT, $a the caEez ol' the current a-~agerpest for :<br />

"Soysto~n Imtit;lte", OPE ot;-ics. For Zoystotm, operntions are<br />

overseen 57 a 3Lz~tor who is ~esporrsSole to a seven-msn boa=& of<br />

rep;osectetives r'rom the Ei&copalChui-oh (Cbai-nuan), the Flstries<br />

of Justice, La'aour, e l Zducation, Arniculture, a d the Difectsr . .<br />

himsclf. Ti;e Ins'titute has it= om autonom~ for h i r k personnel, ~<br />

.<br />

sslazits, etc. P-banci33 coues. from three souzces: a $W,CCO<br />

7eazl7 allotaeni;, dishmed c_u;rtcrl~ frsn tbe Y i s t q of Eealth<br />

(mder t>e "subsifies" budget Ue) , donations, and profits from - -.<br />

the onzoirz.; ?oulSq oroject. The Kbistzy of Eenlth is also<br />

_sro:ri:.'y; $250,CCC3 m&er its developnent Suclget for an eztension<br />

- of the ~stitute.<br />

.


-'-- -..- ?kse L Ir?jec= Azea ii I-3C iz.+ll -6 -'-a<br />

i3dcstzies ~ G O<br />

,..- .,. ---- - --<br />

Lez =f =-=-I<br />

L C '9 ~ j-s=ify =ke i~=~.~sio- ;: + =:ily-z3=e~ei<br />

-<br />

-<br />

_ ramorion se-vice in as= I Prajecz. Xever5el=ss, rxe<br />

measures could be intrsducel lei-c -I 5 e ??ase I Ir;jec= ;s<br />

assist specific r~-d ix5usrzies r?6 these zersil=ts c=clS =her.<br />

be developed as the 3raject is extendel. The Ll+ckszLt:1s<br />

workshops would undoubtedly benefit from C?e i-tz~?x=isr: sf<br />

agricultural machinery such as Bower tillers. I~iti=l>z -, =5esa<br />

machines would be providee by the Project Xc5zi~iscxetio;:<br />

. .<br />

2r.l<br />

maintzined in +2'e XOA workshop at Gbedin. sowevex, xt :s Zczeseen<br />

that res?onsibilizy for tbe mrihtenznce of tkse =ec>ir?s<br />

would be quickly 'd+nsferred to arivate con==2==3re. The rice<br />

mills would also repuire nore ar16 better re-,&= a1d aair.t=:ace<br />

services than at present. Assistance to Kle blacks:kt5s azE<br />

workshops to carAy out the re-szir azui rnzi:t%?+nce sf K:=se .;+=:^.ines<br />

should therefore be one 0% the su?pcr= .seasilss ix-z=&ceE<br />

by the Phase I Project. Ot??er ;aeas=es to be i.l=rclxel by tke<br />

5hase I Prpject would ir?clude crainizg o r opez+=czs it z:le<br />

rice dlls in order t~ inczease the teL?nical ef5iciency of<br />

t%ese mills.<br />

During project ?rep&-etion antact vas eszablfshee . '" ,.&e<br />

maagement of Cne Patnership for Praczess (Jt?) ix or&= =o<br />

ascertain whether 'chis or~aiza=ion would be ?re?azel == extend<br />

its activities to Sic ihase I ?rojec= ker. The - - ?I<br />

agreed to this proposal on coneition t?~az its s=r== iiocld 5e<br />

assisted by a menber of a GeAmzn vcl?z?trr- ser?ice kr &eve-<br />

loping countries. In %:is case the ??? vocld ie in + =osition<br />

"-D offer its range of suport measures to soae in5~scries<br />

in the Phase I Area.<br />

On the assumption that such an &zzangenent w i 5 li?? 2-oule be<br />

possible a total of $ 10,000 h+s been izclzdel in tEe Tc=rl<br />

lroject Funds a d is irceneec? to provide zeii!a-=e-~ ceeilto<br />

rural indu~-~ies. This aao~?: would be inckied iz 5 e<br />

Revolving Credit Fund. at tile ACDB a& woul2 cr.9 be reiehsel<br />

on "the agreement of the ?F?.<br />

5.1.4 Social Services


TEE SWEDISH .L!PROACX TO E XiNG<br />

(Available in &-R/DR files)


PROJECT LOCATION:<br />

PROJECT TITLE:<br />

FUNDING :<br />

LIFE OF PROJECT:<br />

IEE PREPARED BY:<br />

INITIAL ENVI?.OW-?ZNTAL EXLYIXATIOS<br />

RECOMMENDED THRESHOLD DECISION:<br />

NXGATIVE DETERYINAT<br />

MISSION DIRECTOR'S CONCURRENCE: ,<br />

Yekepa, Liberia<br />

<strong>LIBERIA</strong> - Nirnba County Rurai<br />

Technology 669-~13<br />

S3,23S,f00<br />

ASSISTANT ADMINISTRATOR/AFR DECISION:<br />

RECOMMENDATION APPROVED:<br />

RECOPMENDATION DISAPPROVED :<br />

5 years (2nd Phase)<br />

Junes W. Dawson<br />

Rural Development Officer<br />

May 15, 1979<br />

! . / , j<br />

&no - R+ Ga~f i, Drrector b'<br />

Auqust 28, 1979<br />

Date


I. -i.ptZ~n Ot the hojec+<br />

A. ZntTducttcl<br />

rt L propcsd tnP.JU .grant of 33,2j8,700 t h AZtnarPhip<br />

fa REdoc+ivity mmdatie (FfP) om a wiod cd fivcgrrrt to carry<br />

outr~k0graahth.rrwafnx.lfrdtetryud~tm.l~<br />

6.m-t. #P L a u.0. hsd pi- and To&* rgsrsy that


.auPuU-cPu2efrrra~th.~fPd*~atprofect<br />

0p.rraam. a8 m t<br />

frrripO m=fAm L -<br />

w rhifttng<br />

dtiv8eicn, -, Ltck at mgrimltur'al fnpRa, la<br />

y&d&.luds rad lal -tabla Surpl-. HL & .ctfvitp is fas<br />

aultivatim of upland ricm aortly for hAm -, M cecwies<br />

*so-Oitbbnd. ~ U ~ o i t b r t a t d f ~


~dbltiuy, tm prohrtion in the project =a suifs-s<br />

aiLtfv1tioo prarucu ud t.ck of w f-cfon. Ua* =a<br />

-<br />

iraath.uer~logFcrl~esa, .i.*. Fc.xpkn**.


111. Discussion of Pro3ect Ixpzcts:<br />

In the completion of the Impact and Evaluation form we have<br />

indicated low to mderate impacts that would be caused by t!is<br />

project, These judgments vere based primarily on the findings<br />

of a lengthy ?Znvhnmental Assessment of the Bong Cowty Rural<br />

Development Project by the firm of Environment Consultants, Inc.<br />

which found that the activities being undertaken by the Bong<br />

Project did not adversely effect the environment. We believe<br />

the findings of tihis assessrent to be applicable to t!e pro-<br />

posed project because (1) t!e agricultural input packages and<br />

technology being introduced is almost identical to t?at of the<br />

Bong Project and (2) the overall environment of Nhba County<br />

. -<br />

is extr-ly similar to that of Bong County, i.e. the counties<br />

are adjacent to each other. A detailed discussion of the major<br />

project interventions is as follows:<br />

1. Upland Rice: Unlike the Bong Project, the project is not<br />

proposing the use of fertilizer on upland rice cultivation.<br />

It vill focu on the use of improved seeds combined <strong>with</strong> improve2<br />

cultivation practices. It will not pramot expanded upland<br />

cultivation, but rather seek to increase production on a given<br />

unit of land. It is recognized Ma+ upland ria farsin9<br />

through shifting cultivation has a long term deleterious effect<br />

on the environment. The strategy king applied to reduceex-<br />

pandad upland cultivation is the promotion of fixed swamp rice<br />

cultivation while at the same timc attempting to increase the<br />

productivity on the m -1 upland farms. There is


empherical evidence from the Lofa Project, which is now enter-<br />

ing into its third year, that farmors will abandon upland<br />

farming for irrigated swamp rice once they are convinced that<br />

swamp rice production is more productive and profitable.<br />

2. Swamp Rice: Swamp rice cultivation involves the clearing<br />

of vegetation from existing svamps and the construction of<br />

rudimentary irrigation works, eensisting of a central drainage<br />

canal, periferal irrigation canals, and earthen bonds between *ze<br />

inOividua1 paddies. This work is generally carried out by<br />

hand labor, except in rare cases wh@n working on a flood plain<br />

that is Ury enough to permit the use of squipmcnt. Unlike<br />

upland rica, chemical fertilizer (ma and ttiple sum phos-)<br />

phate) is used and chemicals am usad to wntml weeds and<br />

aotfxeaks of stem borers. The pruject will use MBA and<br />

Diazim, both of which have been approved for use on (RTamp<br />

rice in the Lofa and Bong County Projects. Only farmers who<br />

h.m received proper traiaing in the use and application of<br />

pesticides will be pcrmftted to purchase project financed pesti-<br />

cides. Likewise, protective clothing and devices will be<br />

employed where applicable.<br />

-<br />

Large ecale clearing of land for wamp rice cnlttvation mld<br />

ba detrhntal to the euisting flora if it involved a rmb-<br />

stantial araa. Hovevar, the typicril swamp w ill not ex& trPo<br />

to thrae hectaras aad the total amapnt of 5wamg available for<br />

-


potential development is only six percent of the total<br />

project area. .Most of the vegetation removed in the<br />

process of swamp clearing is large bush and sac pah<br />

trees, since tropical hardwoods can not florish in these<br />

super-saturated soils.<br />

Schitosomaiasis is endemic to Liberia and the proportion<br />

of swamp rice cultivation containes the risk of increasinc<br />

the rate of infection if not properly monitored and con-<br />

trolled. In the case of the Lofa Project, a schisto-<br />

acmaisis m llience group works in conjunction <strong>with</strong><br />

the agricultural development teams to monitor both the<br />

swamps and the workers. Swamps are cheaked for infect&<br />

mils prior to being approved for development and monitored<br />

on a reqular basis thereafter . Also, workers are checked<br />

for infection prior to being allowed in theswamps anB those<br />

found to be infected are treated. Though the use of these<br />

control methods, evidence to date indicates that increased<br />

svamp rice cultivation has not increased the incidence<br />

or intensity of the disease. A similar unit has begun<br />

wrk in the Bong Project.<br />

In the case of the proposed project, there is a team<br />

frum the Swedish Institute for Tropical .Xedicine per-=<br />

aancntly stationed at Yekepa rorking on schfstoaolraisis<br />

under the Liberian Institute for Biological *searcf...


I<br />

I<br />

I<br />

I<br />

I<br />

- 4 -<br />

This unit will provide surveillance and monitor the<br />

the effect of swamp rice cultivation on schistosomaisis<br />

for this project.<br />

Coffee and Cocoa Production: Coffee and Cocao are<br />

traditionally gram in Liberia as jungle crops, <strong>with</strong><br />

minimum cultivation and management. Under r improved<br />

management these crops are planted on ground that has<br />

been fallow for seven or eight years and the low bush<br />

is cleared away by hand-. However, both crops require<br />

considerable shade for proper canopy. Proper management<br />

also calls for the use of chemical fertilizers<br />

(15-15-15-2 and phosphates) and pesticides. Black Pod,<br />

I<br />

1 a fungus in Cocoa is controlled by spraying <strong>with</strong> cuprous<br />

I<br />

oxide and Lindane ia used to control capsids and myrids<br />

I<br />

on both coffee and cocca. Bcth of the chemicals have<br />

been approved for use in the Iafa and Bong Projects and<br />

wntrol of their use will be subject to the same conditions<br />

noted above for the use'of pesticides on swamp rice.<br />

-


Unlike aqriculture, it is more difficult to exarrine Lie<br />

environmental impacts of the rural industry sector of this<br />

project because it is impossible to accurately forecast what<br />

types of entrepreneurs vill come forward to request assis-<br />

- tance. However, to a large degree one can be guided by the<br />

type of individual projects that have occurred in the past.<br />

For the most part these have hen small operations that employ<br />

approxiamtely six people, e.g. brickmaking, charcoal production,<br />

furniture making, poultry raising and comercia1 pig raisinq.<br />

Of these type of projects t??e one that could potentially create<br />

a negative impact is charcoal production if it is not properly<br />

controlled. There are vast quantities of waste timber from<br />

the existing logging operation in the project area and the<br />

clearing of swamps will create localized aupplies of timber<br />

that lend themselves to charcoal production. Using various<br />

intermediate technologies, charcoal production can become<br />

an Fmportant source of off-farm income generation, but this<br />

can occur entirely through the use of present wastage and<br />

<strong>with</strong>out the falling of trees for this express ourpose. Also,<br />

the Forest Davelopment Authority is we11 established v i a<br />

project area and enforcas logging and timber managaacnt a-0-<br />

tiations .<br />

the


- 6 -<br />

A major thrust of the rural inZustry sector will be the<br />

application of appropriate technology. By their very nature<br />

these activities have a minhal envimnmantal impact: they<br />

are labor intensive, require minimal outside energy sources<br />

and are widely dispersed rather than being concentrated.<br />

See also the Environmental Assessment of Pesticide Use,<br />

Appendlx 0.


- act<br />

1'. 7-=.7:". yj,cy %<br />

1. Cbarqi?r; 2 ~ character 2 of t;?e la~e throuc:?:<br />

..................<br />

a. Incrz~sin~ the pas-~iaticn..<br />

b. Extrxtizn natural resourzns ................<br />

c. Lax: clearin? ...............................<br />

d. Cttzgicr soil chazacter......<br />

2. .Qterirq natilral Zefe.?sas....<br />

...............<br />

...................<br />

5. Poreclosinq .inportat ilses......................<br />

4. Jeopar3izinc r.ar. or his 13n3rk~...................<br />

5. Other factors<br />

r.-\TZ? ?c>z.Iy:<br />

1. Physical state of zater........................<br />

2, ChsC.cal azE bioi~ical stztes.................<br />

3. ScSor~ical bala~ce.<br />

4. Ot4er factors<br />

............................


E. CUL7C?1Fi4<br />

I. Alterin9 physical sl~bols ...............<br />

2. 3ilution of cultxral traditions..........<br />

3. other factcrs<br />

....<br />

P. SOCIO~CO::G~!IC<br />

1 Chzaqes in econonic/ertploynent petters<br />

2. Changes in population .....................<br />

3. Chanqes in caltural patters ...............<br />

4. Ot5er facto=s


-.--.-,n?. . .,----A<br />

-<br />

I. Internetianal impecr;s ........................ Y<br />

H. GL..-<br />

2. Contrcversial ir::pilcts ........................ L<br />

3. Larger pro~rm i?pac=s ....................... %<br />

4. Other factors . .


ENVIRDNMENTAL ASSESSMENT OF PESTICIDE USE<br />

Project title: Eimba. Bural Technolo=<br />

Location: Nirnba County. Liberia<br />

Project Number: 669 - 0154<br />

Environmental Assessment<br />

prepared by: Dale G. Bottrell<br />

University of Califor5a<br />

UC/AID-Pest Hanaqement aid Related<br />

. Enviranmental Protection ?reject<br />

- 2288 Fulton Street. Suite 310<br />

Berkeley. California 94704 (U. S.A. )<br />

Telephone: . $15/642-9950 (Office)<br />

301/535-0740 (Residence)


I. INTRODUCTION<br />

1.1 USAID Environmental Procedures<br />

In accordance <strong>with</strong> the National Environmental Policy Act of 1969<br />

and relevant policies of the Agency for International Development<br />

Environmental ~rocedureslwere developed and published by A.I.D.<br />

in the Federal Register to insure that environmental factors and<br />

values are integrated into the decision making process and to<br />

assign responsibility <strong>with</strong>in the Agency for assessing the environ-<br />

mental effects of A.I.D.'s actions.<br />

It is A.I.D. policy: 2<br />

(1) to ensure that the environmental. consequences of proposed<br />

financed activities are identified and considered by A.I.D.<br />

and the host country prior to a final decision to proceed,<br />

and that appropriate environmental safeguards are adopted;<br />

(2) t~ assist in strengthening the indigenous capabilities<br />

of developing countries to appreciate and evaluate the poten-<br />

tial environmental effects of proposed developsent strategies<br />

and projects, and to select, implement and manage effective<br />

environmental protection measures, akd;<br />

(31 to identify impacts resulting from its actions upon<br />

the environment including those elements of the world<br />

biosphere which are the common natural and cultural heritage<br />

of mankind.<br />

1 Part 2L6-Znvironmental Procedures of Regulation 16 of the Code of<br />

Federal Regulations.<br />

2~aragraph 216.1 (b) of Environmental Procedures.


As a general principle, responsibilities for environmental decisions<br />

will be similar to normal A.I.D. organizational res~~sibilities so<br />

that an environmental awareness will _permeate the entixe organization<br />

and environmental considerations will be weighed <strong>with</strong> others in an<br />

integrated manner at each level of responsibility. Each A.I.D.<br />

official empowered to authorize funds will be responsible to the Administrator<br />

for implementing these procedures and obtaining and managing<br />

the required resources. .<br />

1.2. Pesticide Procedures<br />

. . gncept as ~rrpvided. in paragraph 216.3 (b) (2) of Enuiromnental Procedures,<br />

all proposed projects involving assistance for the procuremefit or use,<br />

or both, of pesticides shall be subject to Pesticide Procedures prescribxi<br />

in paragraph 216.3(b) (l)(i)through (v). Examination for the project<br />

shall include a separate section evaluating the economic, social,<br />

and environmental risks and benefits of the planned pesticide use to<br />

determine whether khe use may result in significaut enviroruneatal impact.<br />

When a '&oject indudes assistance far the procurement or use,<br />

--or both, of any pesticide registered for the same or sisilar uses in<br />

the United States but the proposed us9 is restricted by the U.S.<br />

Environmental Protection Agency (USEPA) on the basis of user hazard,<br />

. procedures, set farth in paragraph 216-3(b) (b) (1) (i) will he followed.<br />

- - In a&Iiticrn, the InitiaI ~mrironmental Examination vill include an evalua-<br />

- - tian of th riser bar& assrriated <strong>with</strong> the proposed USEPA restricted<br />

uses to ensure that the implementatian plan which is contained in the<br />

Project Paper incorporates provisions for making the recipient government<br />

aware of these risks and providing, if necessary, such technical assistant<br />

as may be required to mitigate these risks. If the projecc inclu6es<br />

- - . assistance fnr the procurement nr use, nr both, of any paticize other<br />

-. than one reqistered for general use or for restricted use on the basis of<br />

_ user hazard or any pesticide for which a notice of rebuttable presumption<br />

against registration (WAR), notice of intent to cancel, or notice of<br />

intent to suspend has been issued by USEPA, and Environmental Assessment<br />

or Environmental Impact Statement must be prepared as specified in<br />

Paragraph 216.4 (a) of Environmental Procedures.<br />

: Paragraph 216.3 (b) (1) (iii) .


1.3. Need for ~ n v i : ~ ~ ~ ~ ~ ~ " ~ ~ ~<br />

Table 1 shows the es proposed for use in the Nlmba<br />

Rural Technology Although the current regulatory status .<br />

of the pesticide pf~r use in this project does not requlre<br />

the preparation ofr~Mental Assessment (EA) two of the<br />

pesticides are uncQAR review, service and Gram oxide.<br />

Accordingly, to plthe necessity of preparing an EA at a<br />

later date, if eiP~th pesticides become subject to an<br />

RPAR, an ahas @red -at this time and is provided herein.<br />

2. PROJECT DESC:~ BACKW.Om<br />

2.1. Introduction<br />

1t is proposed togrant of $3,258,700 to the Partnership for<br />

Productivity FOU~~PJ over a five year period to carry out<br />

a program in rurzry and agricultural rural development. PfP<br />

is a US-based pril voluntary agency that has been working in<br />

Liberia f u apprg five years. Tbe agency is based in Yekepa,<br />

Liberia. the sitrLAMC0 irk ore mining concession. 50 percent<br />

of which is ownec Government of Liberia. PfP was requested to<br />

come to Liberia fining concession to carry out a program to<br />

diversify the ecase of the concession area, so that Yekepa<br />

wouldremain a vimmic community when the mines are depleted<br />

toward the end ohtury. In the past five years, P£P has<br />

assisted a wide lenterprises by providing managerial training<br />

and assistance, and technical guidance.<br />

2.2 The Project<br />

Funds provided W project will be used to (1) expand and<br />

extend PfP'S exismices in rural industry and appropriate<br />

technology, and (ate a major program to raise the incomes an<br />

and living standapproximately 5000 subsistance farm families<br />

<strong>with</strong>in the pro jet<br />

The project also k to organize village development conunittees -<br />

that function to t village self-help activities. The project<br />

will be carried o\ two northern-most clan areas of Nimba<br />

County. The projt encompass an area of approximately 1800 square<br />

kilometers. It jthe large urban concentration at Yekepa<br />

<strong>with</strong> a populationi <strong>with</strong>in an area of no more than 15 square<br />

miles. The human on density of the surrounding rural areas<br />

average 40 to 70 Ee mile.


PESTICIDE<br />

Trade name and<br />

Cotmuon Name<br />

. ., KL., ,$?<br />

. , , ., J.. :,,j.:> .,; ,w, ,iqV*<br />

i<br />

!" , ' '. . ,<br />

i<br />

.........<br />

, ,""


X - Propoaed for use on:<br />

T - Tolerance established an8<br />

E - Exem~ted from requirement of tolerance on:<br />

Trade Name and ' APPLICATION PIlOCEOURES<br />

Common Name<br />

. . . .<br />

,.,.<br />

I SOURCE: Pam l3!embb Handbook. 1979. Meister Publ. C& .. - . '<br />

. . . .<br />

!<br />

.a<br />

?q,) :<br />

.<br />

.<br />

.<br />

. . .<br />

>'l<br />

. .<br />

. . . ,<br />

2 On August 1, 1979, USEPA proposed that emuIaifiaqla concentrates 40%. and greater of ethopriop bi. restricted and all<br />

gruular and fertilizer'fo-letiona be evaluated to detonollne .+I. neea for.restficted..c~aaeification.<br />

. .<br />

; ...<br />

t '<br />

.........


The rural population is about equally divided between the Mano<br />

people residing in the western part of the project area and the<br />

Gio people residing in the eastern half of the project area. The<br />

urban areas are much more heterogeneous: the 1974 census showed that<br />

the population of Camp #4 contained a representative mixture of all<br />

the ethnic groups in Liberia. Organizationally, the project is divided<br />

into the following program areas and activities: -<br />

2,L.l. Rural Industries - .-<br />

. .<br />

. . .. . : :-<br />

. .. . . . . -<br />

-<br />

. 1. Small business management training<br />

2. Management consultancy services, including boookkeeping<br />

services and accounting training<br />

3. Economic and feasibility studies<br />

4. Market development services<br />

5. Financial assistance (credit)<br />

1. Research and development<br />

. . . 2.. Pilot projects to determine technical and economic feasibility.<br />

- : -Once- proven, they would then be spun-off to the private sector.<br />

3. Maintenance training<br />

- 4.- Technical back-stopping and support for those operations<br />

spun-off to the private sector<br />

5;r~Improved; low-cost building technology and contractor training<br />

2.1.3. Coowrative and Asribusiness Development<br />

1. Cooperative organization and support<br />

2. Input supply<br />

3. Agribusiness development<br />

4. Credit<br />

5. Marketing<br />

6. Contract services (land preparation, clearing, spraying,<br />

seeding delivery)<br />

- 2.1.4. Farmer Traininq<br />

1.. Operation of an existing danonstration/training farm<br />

where short term residential training will be carried out<br />

2. Rural developent skills training<br />

3. In-service training for extension staff<br />

4. Varietal trials<br />

5. Seed multiplication<br />

6. Student intern progvam


2.1.5. Extension Services and Rural Development<br />

1. On farm extension<br />

2. Organization of village development committee to<br />

- organize and implement self-help activities<br />

3. Support for self-help activities<br />

-<br />

3. THE EEiVIRONMENTAL SETTING<br />

.- .-<br />

4<br />

-. ;- . . - . . ;. -<br />

_<br />

- The prg.j.e& -ar.ea:*mainly -consists. of highly dissected rolling up&d.<br />

-. - .. .. -- .- - .. .. - ~ ,(Mino~~a~.+.>f;-th+~:area are hilly or mountainous. ) The valley bottoms<br />

- . -. of the dense:dendritic drainage pattern are. swamps. The local- diff er-<br />

- .: . ences: in-alt-itude between the valley battoms and upland are small,<br />

. . ~ . _ .- ::noma~lLy.&tweenr10 and 50 m. Ferralsols cover most of the project<br />

. area. The hills- show mainly shallow soils. A main ch'uacteristic<br />

..-- of -the- upland soils. is a gravel layer <strong>with</strong> alternating de?th and thickness<br />

which prevents root development.<br />

Soils in the project area are d poor quality. They are very acidic<br />

.r -:-:=nd low-in fertility. The physical properties are slightly better<br />

. .. (goo8 permeability and drainage), although this is generally only<br />

-. . - -true for the gravel-free topsoil. For these reasons, the agricultural<br />

. - potential of the soils is moderate to low. Swamps in the valleys have<br />

. . -- a high- potential-.for.<br />

rice cultivation but would first require ictensive<br />

. : -reclamation- measures. Swamps occupy about six percent of the project<br />

area.<br />

Surface water represents the main potential source for the irrigation<br />

-of the agricultural land in the project area. It also supplies water<br />

to the major towns. The ground water resources of the project area<br />

are poor. Well yields are normally only about 0.5 liters per second.<br />

Higher yields can be obtained only at those points where fault zones<br />

or highly fissuredrocks are tapped by a well. Ground water can only<br />

provide limited amounts of drinking water for villages. For most of<br />

the-larger towns surface water will be the most exploitable source.<br />

The climate at- the project area is governed by the movement of a belt<br />

of clouds and rain called the Intertropical Convergence Zone (ITCZ).<br />

The ITCZ moves northward over the project area in spring and summer<br />

and southward in the autumn and winter. The rainy season lasts from<br />

- April to October: The driest months are December, January and February.<br />

Average annual rainfall is between 2300 and 2700 nun. Rain does not fall<br />

regularly; droughts occur mostly prior to the beginning of the rainy<br />

season and sometimes at the end. This implies that there is a risk at<br />

planting time. An early planting date is desirable in order to obtain<br />

high yields.


- The average annual temperature is about 26Oc. There is little variation<br />

.- . in-the average monthly temperatures. The daily temperature range is<br />

greatest in winter (15Oc and 37O~). The range is smaller in summer.<br />

The temperature during the rainy season is suitable for agricultural<br />

. . . . production. The average relative humidity is high throughout the year.<br />

: . . . . . .. Annual.- evaporation is estimated between 1400 and 1800 nun. Solar -<br />

- . . - - . . -. ra-diation-.is: low ..owing to clouds during the rainy season and dust dur-<br />

. ... - . . .: : . ~r : .inq ,the dry season;:; photosynthesis thus is reduced, having a negative<br />

. - % . effect-on yields, expecially in dry season. 4. .<br />

- . . ' ;.:?. ~lheniitive-.;vegeEat.ion is tropical rainforest; but native forest Kave<br />

- . .. -~;;.be.en: din+nishecE..byr, +if ting cultivation and' timber logging. Secondary<br />

. .. . bush,&:. various,-ages :and small areas of agricultural land have replaced<br />

the native vegetation.<br />

. . - . , -<br />

.. . . .<br />

. . - . .<br />

. . . ~ -<br />

- . .. - . ...<br />

. ." .<br />

~.<br />

About:.lD- percent of the total land in the project area is under<br />

- . cultivatLon;- about 95 percent of the cultivated land is occupied<br />

by small-scale..farmers who employ a wide variety of production prac-<br />

- :- - tices:.. : The: land is used primarily for shifting cultivation of upland<br />

. . :r- rice <strong>with</strong>- f all-ow periods of seven to ten years; in addition, some<br />

. . '.. i, supplementary: food crops are grown. Parts of the better land on flat-<br />

ter areas are used for coffee and cacao cultivation.<br />

.. . .<br />

. . ~ . -,.--.<br />

.. . A .<br />

' .: The va-lley-bottoms, occuring throughout the project area, are used<br />

. . . . . for: swamp r.ke::cultivation and other food crops under. semi-permanent<br />

farming patterns.<br />

. ... . .. - .. . .~ : , The- average.size.of the small farms on which the project will focus<br />

. . .<br />

.. . -<br />

. ..<br />

is about ~3.5: acres.:(l; 5 ha. ) Tribal tenure predominates. Land shortage<br />

is::not a major problem: in the project area. The number of. farm families<br />

in the project .area has been estimated to be 5000. The average farm<br />

.. .<br />

.. . - _household has.7.7 members and a labor equivalent of 3.7 persons.<br />

. . ~<br />

. ~<br />

. .<br />

.: - The annual.Labor:profile of an average small farm is characterized by<br />

. .. . two slightlymarked labor peaks in May and ~ctober/November. Since<br />

.~ .<br />

. .. .. : the. labor forcer is largely under-utilized at present, hired labor<br />

.. ~ ..<br />

. .<br />

... .<br />

.<br />

woul&the~tkcally not be necessary for farm work. Approximately -<br />

armers, however, occasionally hire labor on a temporbasis,:especially<br />

for bush clearing. Apart from the fact that<br />

' . - - :. :, SCL percent-. 05.2<br />

. . ~ ary<br />

.. . . . . : .x r this work iz very strenuous, social prestige also influences the<br />

decision to hire outside labor.<br />

: : .: . .- The small-scale farmer ' s fanning operation presently is characterized<br />

. by shifting cultivation, subsistence production, minimal agricultural<br />

inputs, low yield levels and low marketable surpluses. The main activ-<br />

ity is the miltivation of upland rice used mostly for home consumption,<br />

. . . and occupies about 50 percent of the land. About 25 percent of the<br />

. . . total farm area is planted to coffee/cacao, and the remaining cultivated<br />

landis utilized for cassava (14 percent) and other supplementary crops<br />

and vegetables (11 percent).<br />

., ,<br />

!<br />

~~ .- .~~ . . . . . .~~ ~. .<br />

~ .,


4. LONG-TERM PROJECT OBJECTIVES<br />

A primary.goa1 of the Government of Liberia is to achieve self-<br />

. . &ficiency.in rich production in-the early 1980's. One of the largest<br />

*<br />

. . . . . . single. akeas of rich consumption in Liberia is the LAMCO concession<br />

. - . . . ........<br />

.<br />

.- - ....<br />

?~ . qea. where..a.liigher. income level permits higher than average national<br />

. :. .. ..... , .. ... consumption._"^ ......... potential for rice developent <strong>with</strong>in the project .<br />

.. .* ..-,. .'::. . ~- _.,:area is:'above.pverag&, but the levels of technol.ogy being applied re-<br />

... . . ...... . ...... - ..<br />

strictsproduction to subsistence levels.<br />

. . --<br />

- . ~~<br />

- ... ....... - ........ . .. LeSS :than - ...... 1. .percent- - of the farmers use fertilizer and less than 2<br />

. .- - .. ..... - - .. . - -. . percenggsq,*prpved seed. The agricultura sector of this project<br />

- ......... . ..... . cordinates <strong>with</strong>. other agriculturally oriented projects and will pro-<br />

< ............. - . . .<br />

. . . .<br />

. ......... . .~ - 1. .... vide,+e.training, inputs and marketing facilities to assist these<br />

- ..<br />

.- . . ..... .fanners- ............. -to max&.ze: the production of crops presently being grown and<br />

- . ~ . will intrbdbce new ^food crops. The introduction of supplementary<br />

. . . . . .<br />

. .~ . . - . = . food cropswill provide improved nutritional balance and incremental<br />

income' -to small farmers.<br />

. ~<br />

....<br />

.<br />

-<br />

._.~AdGtionally,<br />

~ .~ tree crop production in the project area Mfers from<br />

.~ . sake<br />

~ technbl&gi&l,problems,<br />

.... i.e., poor planting stock, poor cultivation<br />

~. . - . .. . practices. and lack of proper fertilization. With modern technology,<br />

.:<br />

.<br />

. . . . +<br />

. . it is-es&mqted&that<br />

. . . . farmers can double the present yields. ...<br />

~ , _ . .tree . ~op.<br />

Rice and<br />

. - .~ .<br />

........... ..<br />

..............<br />

..... . - .-. . - &k national goal of ....... .- ..-..<br />

self-suffiency in producing basic foods.<br />

cultivation are the most practical alternative for most small<br />

, fa~&&s..tb[ brek&-out of the subsistence pattern and contribuge most to<br />

. .- 5.. -- -PROPOSED ACTION RELATIVE TO SECTION 216.5 (c) OF THE ENVIRONMENTAL<br />

PROCEDURES<br />

. . . . . . 5.1.: ~ ~ Present<br />

Pesticide Use Patterns in Project Area<br />

--- ... ~. L .~ .. AS - noted. . . . above,.-about<br />

...... 10 percent of the land in the total project area<br />

~ .<br />

.. . . .is-presep-<br />

. being ...... cultivated. The major crops in the area (cacao,<br />

. . ........ .coffee, rice,_veget+les) now encompass a total of about 1950 -2150<br />

-. . ..... . acres - .~ to Table 2). An objective of the project is to expand<br />

. . . . . - . the -area . . . w~iich<br />

. . . these crops are grown; the five-year target is to<br />

. ... . . - .... . increase, cacaa,,coffee, rice and vegetables from the present acreage<br />

:. . ; about 5000, acres. Pesticides currently are bee used on a small<br />

. . to<br />

. . portion of ,thes; crops. PfP personnel estimate that 10 percent of<br />

1.. . . - - ~- .I& . cacao .~ acreage .. is being treated <strong>with</strong> insecticides, 15 percent <strong>with</strong><br />

. . . . fungicides and 15 percent <strong>with</strong> herbicides: 5 percent of the coffee<br />

acreage is being treated <strong>with</strong> herbicides and 5 percent <strong>with</strong> fungicids;<br />

-<br />

10- percent of the lowland, irrigated rice acreage is being treated<br />

<strong>with</strong>insecticides and 30 percent <strong>with</strong> herbicides; and 20 percent of<br />

the vegetable acreage is being treated <strong>with</strong> insecticides and/ or .<br />

fungicides.<br />

w.


TABLE 2 SCOPE OF CROP PRODUCTION AND PESTICIDE USE IN <strong>NIMBA</strong> RURAL TECHNOLOGY PROJECT AREA,<br />

: .:. i: : :. 8 ' UPPER NIM& "~1,3ERIA 1 'i. 1 .I ' " " ' , , I . , I . 'I<br />

I . . : < , , . .<br />

ESTIMATED NUMBER OF ACRES<br />

Crop Present Five year target<br />

Cacao 150 600<br />

10-insecticides<br />

10-fungicides<br />

15-herbicides<br />

Coffee 600 2000<br />

5-herbicides<br />

5-fungicides<br />

I<br />

Estimated percent of acres now being<br />

treated <strong>with</strong> pesticides<br />

*<br />

1 The list shows only those crops included in the project that will be treated <strong>with</strong> pesticides.<br />

2 Estimates only for lowland irrigated rice; double~cropp?d each year. Upland rice riorinally<br />

I<br />

is not treated <strong>with</strong> pesticides.


5.2. -Anticipated Pesticide Use Patterns in Project Area<br />

nough an objective of the project is to increase the area planted<br />

. ..to these mzjor crops, PfP perso~el donot anticipate a corresponding<br />

. . .:increase in the percent of crop acreage being treated <strong>with</strong> pesticides.<br />

- ::: .:::Economic and low yielding potential will prohibit the use of pesticides<br />

....<br />

., . : r:on.mclxof the. agricultural land. Further, PfP personnel believe that<br />

.- . ..... ... ... = tradi.tion&,~'nonchemical pest control techniques (e-.g. , destruction *<br />

......<br />

. . :. . :- : ,.:- be-:postharv.est residues,.:: crop rotations, hand weeding, planting vegetables<br />

.................. . - 1 . . -..- ... ie: new un;infeste& axeas) are applicable- throughout much of the area,<br />

and these techniques will be encouraged.<br />

RECOMMENDATION:<br />

. . .: ~roject.~. persoknel: should maintain accurate records on the kinds and<br />

... -r -.. amounts of pesticides being used on cacao, coffee, rice, and various<br />

- vegetables-in. the project area. 'A base-line survey shouldbe conducted<br />

. -. .-at<br />

the: inception. : of the project; the survey should be repeated every<br />

=.:.yearrof the project-:to reflect changes in crop acreage and any changes<br />

in pesticide use patterns that may occur.<br />

- . -. . .......<br />

-~ ..... ....... . be-: recdmmended'. 0nl.y:<br />

.. - - ...<br />

, - to the non-chemical control techniques; pesticides that pose minimal<br />

. - :' - risk tm: humans-, -beneficial non- target organisms and the environment<br />

. . .<br />

should- be sought and encouraged. The use of any pesticide should<br />

.~ .<br />

-'always-:be based oneconomic criteria to determine when and where control<br />

is truly justified.<br />

Praject-personnel- should encourage the use of the traditional, nonchemical<br />

control- techniques knownto be effective. Pesticides should<br />

when definitive. data demonstrate their superiority<br />

'* 3. Procedures Prescribed in Paragraph 216.3 (b) (1) (i) Of Environmental<br />

Procedures<br />

. . . . . . .<br />

. ; , . : .- ? ....... - ....<br />

-<br />

...... (a:).:. The *EPA registration status of the requested pesticides.<br />

Pesticides requested by PfP for use in the project are shown in<br />

Table 1. Here, common names of the pesticides will be used. Crops<br />

treated <strong>with</strong> pesticides in the project (Table 1) will be used for<br />

human or animal c~nrsunption only when appropriate tolerances have<br />

been established by USEPA(or recommended by the Food and Agriculture<br />

Organization/fJorld Health Organization and when the rates and frequency<br />

of application, together <strong>with</strong> the prescribed preharvest intervals,<br />

do not result in residues exceeding such tolerances.


Two pesticides, ethoprop, dazomet, are proposed for experimental<br />

pwrposes only; they will be used for research or limited field<br />

evaluation purposes by or under the supervision of project personnel.<br />

. . - .<br />

As- nated .in footnote 2 of Table 1, on August 1, 1979, USEPA proposed<br />

.~<br />

. . -. - ..,<br />

- . -. C. that- emulsifi?+Me- concentrates, 40 percent and greater, of ethoprop -7<br />

. . . . . - .<br />

.~. - . .:be -restrict&b.qaus& of its acute dermal toxicity; and USEPA proposed<br />

- : . .~...<br />

. . :;, ,-t,.-a-lE. gran&Ia?ziandd- fertilizer f ormalations he evaluated to determine .<br />

- . - - ,;-. .. . -:the-nee&fo~Lrestricted<br />

- classification. Tolerances have not been<br />

. - . . - - . . , _ . .-.. estal?15sfreckfdr ~ ~ o m on e t any crops to be grown- on soil treated <strong>with</strong><br />

the pesticide.<br />

- . . . ., - - .- _ .: .; earbawl 5.s progosed for use on vegetables crops shown in Table 1<br />

. . ~- . . : aria: also. rice.-- i Phe insecticide is registered by USEPA for general<br />

. ~ 1: ..-:use on all-. of .these.crops except onion (it will be used experimentally<br />

.~<br />

. . . , : . -only on omon,: applied by or under the supervision of project personnel,<br />

.. .. -<br />

. . . .. . and the:. -tzeated onions will not be used for human or animal consumption).<br />

. .- - .~<br />

.. - -<br />

i. . !RE insecticide curfently is undergoing Pre-RPAR review by USEPA on the<br />

:i :. -7.- : r basis .thatLC may cause teratogenicity (abnormal formation of f etusf<br />

. - 7 .LC::-'.T-and.<br />

. f etotoxicity (toxicity to fetus) in experimental animals.<br />

:.


KPA is proposed for use on irrigated rice. Ther herbicide isnm<br />

. . used on an estimated 30percent of the irrigated rice in Upper Nimba<br />

County. Though not: registered'by USEPA for use on rice, the material<br />

. . was approved for use in a similar USAID project (Lofa and Bong<br />

counties) in Liberia; no know adverse effects to the environment or<br />

humans resulted. .. .<br />

2,<br />

. . .... . . . Cuprousoxide, a fungicide, is proposed for use on and coffee. The<br />

* . - .. . .-<br />

~~ .. pesticide .iS: iiot registered by USEPS for use on either & these" crops,<br />

- . .- . .. ~ . .,. but -is-exempted from requirements of tolerance. The material was<br />

-<br />

- - . 7 .- .- '-:. ... approve& .fbr..us.e


. . - principles and application of IPM and the proper use of pesticides.<br />

. . . . - - : --The-lack of cqp protection specialists properly trained in ecological<br />

. principles of pest management is the chief obstacle slowing progress<br />

. .<br />

. . . - in IPM in Liberia and other countries of West Africa. Being cognizant<br />

of this the West Africa ace Development Association (WARDA), head-<br />

, :, . quartered in- Monrovia, recently organized a Seminar in Bobo Dioulasso,<br />

. . . . . .<br />

.. ~ . 5 upper: volt* to-review the status and prospectsof IPM in rice in<br />

. .. ~. . . - --.- West Africa. - : WARDA currently is determining interest and funding .<br />

,<br />

.~ . . ~. .- .. -;+mechanisms; required to initiate-a program for the developnent and. -<br />

...<br />

.<br />

-.<br />

. implementation of IPM in rice in the region.<br />

- . - .. . - -- . . = - FAO,::USA-II)-and +ather international organizations are sponsoring some<br />

~. . . - r-re.s.&ch:pn .the'developnent of IPM systems for various crops in the<br />

. . -. . ,. . -.<br />

.. . ~. region-. - 7 Hwever, : international efforts inIPM in the region are minimal,<br />

.. .. . ;--and. there are virtually no efforts in IPM in Liberia.<br />

-- r Because-of this lack of expertise in IPM there is a tendency to<br />

.- . - - promote. pesticides,as.a first line of defense against pests, especially<br />

.. . .. . .<br />

- - :. in- highly productive areas being developed for agriculture. ~y contrast,<br />

. ... . . - . . persons trained in intergrated pest management would lean more heavily<br />

- . : on,, the use non-chdcal methods of control, using pesticides only after<br />

. ~ 1. : 1 I : -.:.the: non-chemical and. cheaper methods failed to provide effective control.<br />

- .-<br />

.<br />

- -. RECOMMENDATIONS: - - -<br />

.. ~. .<br />

. . . :--~:ThelUSAl3 mission to Liberia and the Reghnal Economic Development<br />

. , , . I Semi-: Organization/trest Africa, in Abidjan, should support efforts<br />

.. .- - - - :, . :by- F A to: proptote. .increased emphasis in the developnent and implemen-<br />

.. . - . - :.tation or-integrated pest management in rice in Liberia and other<br />

WARDA-Member countries in West Africa.<br />

. .. . . . . . :- USAID should. sponsor- =-training program for PfP employee, Mr. Buxton Coop<br />

. . er, in pesticide. management and ecological principles of pest control.<br />

.. ..<br />

I. -,Mr.- Cooper-is a.native Liberian in charge of developing pest control<br />

. ' . . re~ornmendations~ and pesticide training programs for the Nimba Rural<br />

: . '- ... : : Technology projrct, The training program should not exceed a period<br />

. . ~~ .. - . I .!OF.<br />

three'mon- in the USA under the direction of the UC/D Pest<br />

... . Management-&Related Environmental Protection Project, university<br />

of California, Berkeley.<br />

- The intensive training program should be geared to allow maximum<br />

- exposurcto the principles of IPM(via discussions <strong>with</strong> and lectures<br />

by experts in the field) and proper use of pesticides, including<br />

familiarization <strong>with</strong> USAID regulations on pesticides and the USEPA<br />

certified applicator program. UC/AID Project personnel and Dr. F-<br />

W. Whittemore, Environmental Coordinator, office of Agriculture. XCD<br />

Washington, D.C., should beginimmediately to work out details for<br />

his training program is the USA. The idea of such a training program<br />

has been discussed <strong>with</strong> and is supported by Mr. cooper, PfP personnel


and USAID personnel in Monrovia. --<br />

.. - - .<br />

Uponcompletion of the trainirq program in the USA, Mr. Buxton should<br />

beappointed as project coordinator for pesticides and pest management;<br />

. :, ...<br />

s<br />

........... .':amajor- responsibility would be to coordinate training programs at<br />

...<br />

- , the Farmer-Demonstration Centers and pesticide monitoring (refer (d)<br />

(2) below).<br />

. .- - ., ,.<br />

*<br />

' .<br />

............<br />

,


- --- --<br />

ang progFms;- The store sells all the protective devices recommended<br />

to ensure safety.<br />

*<br />

A responsibility of PfP extension workers operating out of the Farmer<br />

Training Centers is to follow the progress of the trained fanners:<br />

proper- use of safety apparel and devices and disposal of used pesticide<br />

-:. containers and left-over pesticides are stressed.<br />

.. _: . . ~ _ . > .<br />

~ ~~ --- -


:.. . -As noted, USEPA has place carbaryl on the Pre-RPAR list on the<br />

. .<br />

basi-s of -eviaence that it may cause teratogenicity of fetatoxi-city.<br />

. - . Project pers0Mel should keepabreast of any subsequent USEPA<br />

ruling on carbaryl.<br />

~.<br />

. :. . . =-.. .. X& noted aboire- under (d) , the pesticides will entail three levels<br />

~.. .. :.: of-:dperatibn.+: Proce&res to mitigate the hazards from their use '<br />

d&cr&d<br />

below:<br />

in. that section. Additional procedures are recommended<br />

.. ~<br />

.~ . .. . - . :. : -: C-.:-.&re~<br />

. .<br />

r-i>r&jedt:.-personnel involved in the use of pesticides shown in<br />

abie:l;-sho&d be thoroughly informed of the potential hazards.<br />

&-project -managers should enforce, among project personnel and<br />

rmer'cooper~aco&s, the use of essential protective appare1,proper<br />

;storage:-of.pesticides and application equipment and proper disposal<br />

used-.pesticide:-containers and left-over pesticides. Project pernnel<br />

should- &sure that instructions and precautions, including<br />

--:-stat&&&- regarding the time or re-entry into the fields after<br />

-pesf:icide~application an, and the number of days between application<br />

--'arid cropLharvest as specified on the pesticide label, are enforced.<br />

A,' medical' .do~tbr,- Dr. Kell B. Jakobseni M.D., employed by the LAMCO JV<br />

Oper.at%ng: coipany Medical Department in Yekepa, where the project is<br />

to:& headquartered', serves as Public Heaith Officer for this area of<br />

~iberia. Re has experience in the field of clinical diagnosis of<br />

pestjdidepdisoning and treatment. It is recommended that PfP personnel<br />

appraise Dr. Jakobsen of pesticides to be used in the project.<br />

. . . . . - :--At all times during the project he should have access to an updated<br />

.. .~ . - l2st of pesticides being used in the project and also toxicological<br />

.<br />

, . . info'rntation on each pesticide as supplied by the manufacturers.<br />

.. . .<br />

. .<br />

. _<br />

-- - - -'-Project-<br />

'&SI!S~~U& should request his advice concerning human health<br />

hazards w5thpesti'cide use and precautionary steps to mitigate these<br />

hazards.<br />

. . .. . .<br />

-. . . .---;~helierbicide~~a~a~uat<br />

... ..~ ~ . ,<br />

. .<br />

. ~<br />

. - . -. :.,haza38 ~ f"any'-~e~tic~de<br />

~.. . . .<br />

probably presents the greatest toxicological<br />

proposed for use in the project. The material<br />

. . . ...<br />

. . .. ..<br />

should be used.o&v under strict supervision bv trained professional<br />

.~<br />

s.taff, It should not be made available throuqh the farm supplv store -<br />

~.<br />

. .<br />

. . . . . . ... . for purchase bv. farmers. All pararauat use should be formulated <strong>with</strong><br />

.. .<br />

. .. ' - :. wakinq ordorant havinq a meacapton like oder or equivalent.<br />

- -Paraquat will be used to clear vegetation from earthean bunds separating<br />

and surrounding irrigated rice paddies and to remove vegetation from<br />

non-cultivated land being cleated for upland rice production. Project<br />

personnel should ensure that the material is applied selectively to<br />

these target areas and steps are taken to prevent its drift out of the<br />

area. The pesticide does not accumulate in the soil and breaks down<br />

rapidly. But farmers, workers and other humans and livestock should<br />

not be allowed to enter the treated area until after there is reasonable<br />

(14)<br />

--<br />

328<br />

>


assurance,based on information on the pesticides label, that harmful<br />

residues have dis,appeared.<br />

Project personnel should ensure that crops treated <strong>with</strong> pesticides<br />

for which appropriate tolerances have not been established by USEPA<br />

- - - (or-recommended by FAO/WHO) are not used for human or animal con-<br />

sumption.<br />

- :;. . , I:_,- . . . - . L . Fin+Ly;:-2prgject; personnel should make the Liberian government aware<br />

. - . . - - . :. .. - _ -:: . ;-af- the.-potentid hazards associated <strong>with</strong> use of pesticides in the<br />

project.<br />

-<br />

. . - - ... . ~ -..-= =<br />

.. . .. - . ,. : , .. . : .: . - (f)r The effectiveness of the' requested pesticides fox<br />

the proposed use.<br />

.. .~ . , . . . . .- -. : :The pesticides- proposed for the project were selected because of their<br />

? - - -<br />

-<br />

. -known:rffectivenessin various areas of Liberia or in other countries.<br />

. :No .quantitative data exist on the efficiency of the pesticides in the<br />

,<br />

~ ~ . . = .pr@ectarea. PfP recently initiated a study to determine the costs/<br />

. .. -<br />

. . . .. : -. :-benefits of .agricultural inputs, including pesticides, on farms in<br />

. . . - -.<br />

. . .,- .... - -'.the area, but results from the study are incomplete.<br />

-- - ---TheMinistry of Agriculture in Liberiaendores the use of all<br />

-<br />

. pesticides proposed for the project. . -<br />

~<br />

-. . .<br />

~. - - . - -.<br />

. .. -<br />

- - - . : . (:q Compatibility of the proposed pesticides <strong>with</strong> target<br />

non target ecosystems.<br />

~ ~ . ~ . ~<br />

:.: ,. - -:<br />

~.<br />

~ -<br />

~ . . . ~~ . ~ . .~<br />

.. . ~~ ;-ti)-<br />

.<br />

(See discussion of (e) above)<br />

. . .~ - - ~ . - - -. Jh): The- conditions:.undeK which the pesticide is to be used,<br />

-~: - ~- . : : - -: : 5ncluding &ate, flow, fauna, geography, hydrology,<br />

. -<br />

and soils.<br />

(See discussion of 3 above)<br />

~.. %&-.availibility and effectiveness of other pesticides<br />

. . or non-chemical control methods.<br />

- . .. ::Due-:to- lack of quantitative data on pesticide efficacy in Liberia,<br />

. . . . ~~<br />

. . . . .~ : : . : it is not- possible to compare the effectiveness of the pesticides pro-<br />

. - ~.<br />

~ . .. .. -.: - pose&,for .the project <strong>with</strong> alternative pesticides. Unquestionably.<br />

. ~<br />

. . .: : however,-:. the insecticides proposed for the project pose fewer poblems<br />

~ ~<br />

~~ ~ ~. - -to humans -and .the environment than many other (e-g., parthion, methyl<br />

. .~..<br />

. - ~ -<br />

. .<br />

r . parathion, -&ieLdrin. DDT, chlordane, lindane) now commonly used in<br />

the- area;- -There currently is no known cost effective chemical alter-<br />

native to paraquat, probably the pesticide posing thegreatest risks<br />

-- in the project: the non-chemical alternatives(hand weedlag, plowing)<br />

(1s 1<br />

. .


are-cost prohibitive. The other herbicide, MCPA, proposed for the<br />

. . . . . project is. considered safer and cheaper than alternative herbicides<br />

. . . .<br />

-in rice. There. is no known cost effective alternative to cuprous<br />

...<br />

- ~. .oxide. Similarly, there are no known cost effective alternatives<br />

. . . ethroprop and dazomet for the experimental use proposed . . in the .<br />

project .<br />

. .<br />

. ............ ..... . . .The status- ........ of .... non-chemical methods was discussed above under (c) .<br />

-. - - - - - I .,<br />

RECOMMENDATION:<br />

. . ........<br />

....... . .<br />

....... ...........<br />

. . - .<br />

--,. . . . .: Proje~t~personnel<br />

A ........... should cooperate kith th= Ministry of Agriculture<br />

. . 'n odtaihing- efficacy data on the pesticides used in the project,<br />

ncluding :d&ai.bn the costshenefits of the pesticides and known<br />

. . - :. - ... . . chemical? and non-chemical alternatives. There should be a special<br />

.. ~<br />

-<br />

........ .<br />

. . . . . . . effart :to find effective and. safe alternatives to paraquat.<br />

- .- ~ - ~~<br />

........ ...... - -<br />

. .- -- (j).<br />

The requesting country's ability to regulate or control<br />

. . . .<br />

. .~ ............. :the distribution, storage, use, and disposal of the<br />

-.<br />

requested pesticides.<br />

... .<br />

'<br />

...... , ..llh e @il.ity,:o£..&ib+a to regulate pesticides presently is inadequate.<br />

. The ~inistq..of_'~griculture currently determines the pesticides sold<br />

. . - .- . 22y_ci_mrmercal: firms and recommends- the use of pesticides in Liberia,<br />

. . including-.thos~~proposed for the project. But it does not have an<br />

.... - - . . ... . . .: ef,f ec-tive. enforcement mechanism for ensuring the regulation or con-<br />

... . . -<br />

-<br />

. .- ,.gal.: o'f the- distribution, storage, use and disposal of pesticides.<br />

-.-.......... / .<br />

. - . - - -. . . .<br />

. -- ~-- . There ig nw a proposal <strong>with</strong>in the Ministry of Agriculture to create<br />

. a. ~.~ crops: protection agency which would help meet this need.<br />

. .<br />

~. - As. disc~sed:above under(d1, through the farm supply store, PfP<br />

. . .<br />

. - . - p&sq*el are,, ablk to control the distribution of pesticides to<br />

-<br />

~A..<br />

. . - .- f.amers: . in the . prpject area. Further the Farmer Training center pro-<br />

~ - . -<br />

. . . . . . gram provides- :a mqhanism for encouraging safe use of pesticides, as<br />

discussed under (dl (2) above.<br />

. ........... . . .<br />

. .<br />

-. ~ ............<br />

.. ~<br />

(k)- Thqprovision made for training of users and applicators. '<br />

.. .- . . - . -. - -+See- dis.cussion under (d) (2) above, including the recommendation<br />

. . . . . ... ....<br />

..L . . - . . . . concerning $he training program for PfP employee Bkton Cooper)"<br />

..... . . ~ . .<br />

. . . . ......<br />

. . (I) .The-provisions made for monitoring the use and effectiveness<br />

of the pesticides.<br />

Liberia currently does not have the capability toeffectively monitor<br />

the use and effectiveness of the proposed pesticides. Therefore, any<br />

monitoring must be assumed primarily by PfP personnel.<br />

*.


- (See recommendation above, under (b) concerning survey of<br />

pesticide use in the project area, and under (i), concerning<br />

the determination ofefficiencyand costs/benefits of the<br />

pesticides.)<br />

.<br />

5.4 Relationsliip of Proposed Action to Plans for Land and Resource<br />

Use<br />

-.


.: . , . ~<br />

. . ~ . . . : 5.7.~-<br />

..~easonably Foreseeable Adverse Environmental Impacts Which<br />

~. .~. .<br />

Cannot Be Avoided<br />

. - The use of the proposed pesticides will undoubtedly destroy some<br />

. . .- . . .- -benefical: Species <strong>with</strong>in the target area,especially- natural enemies<br />

. . ,.. . . . . . . . anal pollinators that inhabit the fjr6ated crops. Repeated use of .<br />

-<br />

,~<br />

. . LI._<br />

-<br />

.:L - +nsectj+de~-; are: known to unleash.scane non-target pest species from<br />

. ~ .<br />

-<br />

. . L.. . .- .~ .:. naturaz conjt~o:L:sausing them to" increase in abundance. Ecological<br />

z.: - ~..:.:~seri@i0nsSi WiWn the cropr &cosystem are commonly associated <strong>with</strong> .*<br />

.- . % . .- -, -, . . . heavy and $&s.crMnate dosages,%based on actual need and integrated<br />

/. - - ;.<br />

. 1 .... . .. . - ,,i ;wit;h :&her-;techniques<br />

. . . . - ,-. ., .<br />

(e. g., pest:-resistant varieties of crops,<br />

.: . I .. .:-1 -:,..crapiGmtatiun: .various non-chemical:-.traditional methods) is the surest<br />

.. - .<br />

r .. .... way to avoid serious ecological !discriptions.<br />

. ..<br />

.*.<br />

- . . . . -- . . - ;: . ::Human:healtli-hazards, wide-scale destruction of wildlife and buildup<br />

.<br />

. .. - ;. . of. harmful:peskicide residues in the environment can be mitigated<br />

. - through: proper- training and by restricting the use of pesticides of<br />

. .~<br />

.- -. - greatest known hazards to project personnel.<br />

- .. , . .- -. .-<br />

., ~. .. ... .~<br />

.. ~- " 5- S':. .. Relationship Between Short-Term and Long-Term Effects<br />

". . - ~<br />

- -.-_The pragas&.sction involving .pesticides, if properly implemented, ...<br />

- - . . .<br />

: .<br />

. ~<br />

. -. , v-prorniseds-.more effective and safer system of pest control than- ~- . -<br />

:: . :: ..::?.:i: I now exists.. .: However, historically as agriculture has expanded and<br />

- . - . - . .. .--.-. - .. 2- :--Znwified,;<br />

.... irsxproposed in this project, pest problems have worsened.<br />

-. - . . .<br />

: . i. r : ..-Incxeasea .sevdty: <strong>with</strong> old pest problems and eruptions of new pests<br />

.. . ... . - .A -. .<br />

_<br />

.- .. -.,. . ~ are-rormoonlq~<br />

r assrriated <strong>with</strong> expanding agriculture that is based on<br />

.. . - . ., . -<br />

-. . . . . ; . .>mew .higk yielding: crop varieties, fertilizers, pesticides and other<br />

. ,. . .<br />

~<br />

. . . L. : . &ops bf:-the. so-called "Green evolution" clearly have dramatized this<br />

_ -<br />

-<br />

. - -<br />

-.:<br />

-<br />

L . .- Thus, the. proposed action involving pesticides may not offer<br />

. ..<br />

I - -,. . an.. effeciziue-lon&term solution; on the contrary,, pesticides at best<br />

-. . .<br />

. - . . -. -- offer. .tempo~ary:rreprieve to pest problems. The most effective long-<br />

.<br />

..<br />

.<br />

.-: :tern-. soIution. t@ pest problems in the project area and other areas<br />

.<br />

of. Libaria::willl.be- through integrated system of pest management that<br />

, - --sprea&..the.~ burd-en:: of crop protection across the widest array possible<br />

. .<br />

. . . . . :-.--- : of biological, environmental, physical. and chemical factors. a


s<br />

1. -..<br />

.. ~<br />

.<br />

PARTNERSHIP FOR PRODUCTMTY<br />

AUGUST 6, 1979<br />

CREDIT PLAN<br />

.<br />

APPENDIX P<br />

Pwpose of the loan fund: The purpose is twofold; to increase<br />

, . . . : the.mo-y management skills of,small farmers and businesspersons,<br />

- - . .~~ c:-;-;kthexehy<br />

- -.. making:them eligible for loans at existing credit facilities,<br />

. .. and,+ -tw,ai& ini:tbe ,@evelopment or expansion of selected farms and small<br />

. . - .. . .<br />

. . . .. :.businesses in &~d around the Yekepa concession area.<br />

Loan Fund Philosophy:<br />

I . : : . :. : .i -; :-I:..-:. PfP-Client relationship: PfP considers the client/<br />

.. . . . - --- advisorrelationship developed through strong personal contact as the<br />

.. z . :corners$one of- its;+oan Fund philosophy. During a series of meetings<br />

.<br />

ta-discuss the proposed project the PfP advisor attempts to achieve<br />

- --three-~-goals: evaluate the economic feasibility of the pro~osal, gauge<br />

. ~- . - . - -<br />

:..: :=-ths oS the prospective client, and develop an atmosphere<br />

. .<br />

-. . - 'of:<br />

~ 2kxust.<br />

by=convincing- him of PfP' s interest in his project and assuring<br />

:;u: him ofzthe coafiderrtiality of information which he is asked to provide.<br />

.~.. . . . - these^ meetings also serve as an opportunity for the client to<br />

devel begin a systematic analysis of his business. The dangers of borrowing<br />

. . . are pointed out: t o refute the commonly-held belief that more money<br />

-.<br />

-. - .- is- the -solution.Sor.all business problems. The necessity of developing<br />

. azbudget that.wt%cipates revenue and expenses is stressed as a pre-<br />

~ ~<br />

~ ~ .. . . condi-tion fof---the loan, and finally a bookkeeping system that will<br />

. 1 . - -enable- the client to: measure the progress of his business is developed.<br />

. . . . This.: systemis designed to conform to the client's educational level<br />

and prior business experience and takes cultural factors into account.


. .. .<br />

.. ~. ... . . . ~. . 2, Pro.iect Criteria: In evaluating projects for accep-<br />

. . - .. . . tance,. priority is given to profit-making, self-sustaining enterprises<br />

.-. .. that emphasize increased productivity or that add to the supply of<br />

essential goods and services in the region.<br />

- Where possible, enterprises are promoted that complement one<br />

. .-. ~ . -.: . . ,-another.. . ~ ..For . example, buyers ' cooperatives are encouraged among simi-<br />

... .. . - .,.;,+- ila~~.r~$+:-,en.terpsiises, links are promoted' between wholesalers and re- fi<br />

. . - .: . .t&ls& :&-.,bo;th 5 L .~ . ..' .<br />

#ail-<br />

. .<br />

and production-related enterprises are tied<br />

..<br />

-.- .~.<br />

.. . .. : ;,.:. . ~ -<br />

. . .<br />

,toc regiona&.'.:transport systems. Local busi.nesses are encouraged to<br />

.. ... ;.., . . . make use.-of- one another ahd lessen their dependence upon distant,<br />

. ~<br />

-~ ~-<br />

. . .<br />

. ~ -<br />

costly sources of supply.<br />

~ -<br />

..; All enterprises are expected to keep some sort of records in<br />

. .. . . .order .~hat,.per.formance can be measured. The system of accounts, as<br />

. ...~. . . . .,. . .: .. mentioned above ,. varies according to the enterprise and, the ability<br />

-<br />

_. of the<br />

~ ~ ~ client<br />

~- to ~ keep.<br />

. . records. These records are regularly :monitored<br />

-<br />

. . .. . --. b.y. PfP adyi~ors: who, at the same time, encourage the client to keep<br />

. - .<br />

- . .?<br />

?;- '". ?.-z<br />

. ~<br />

-.<br />

. ~. . .<br />

~. ~<br />

1<br />

". up his loan repayments.<br />

-... . . .-. ~ .-. 3.. I.9rocess of .fitemrise Development: PfP tries to ensure<br />

that each business 6 entrepreneur be related to the level of economic<br />

- . :activity of the region in terms of what and how much it produces or<br />

~ ..<br />

. .the quantit.y:;tnd pcale of goods or services it furnishes. Emphasis<br />

.- .. - is,placed: on .beginning small, and to that effect, loan monies are pro-<br />

- - -<br />

.. vided% to,-insurq.only the -minimal. capitalization for adequate business s<br />

.. -<br />

- .. .. . . - performance. - Entlrepreneurs are told that these initial funds can be<br />

. . .. .made,to-.grow if appropriate management techniques are foliowed, and<br />

:the business- advicekhey receive is designed to help them master these<br />

. ..techniques. -Finally, incentives in the form of additional PfP loans<br />

or referral to 'the bank for a guaranteed loan are offered as a re-<br />

. . ward for good business performance and adherence to the loan repay-<br />

ment schedule.<br />

- ~<br />

2<br />

~~~ ~ ~ .<br />

.. .. .-- .. 33)


. ~<br />

. ~<br />

. . .. .<br />

. . . .~ . -~ 4.. .-Interest rates charged on loans will be 10% per m um.<br />

Small Farmers .<br />

- 1. Only small farmers who are members of an Area<br />

. . . cooperative- shall qualify for production loans. These farmers who<br />

, . live in a .town~l (or- in several adjacent towns) in turn organize- them-<br />

. ..<br />

-..sel-vesr.into;.-a-l Town Cooperative Unit (WU) . One XU should have at<br />

. ~ .. - ~ .<br />

: . ~ .<br />

least 10 farmer-members.<br />

- :- ,:- . -2.-.: The outstanding loan per farmer-borrower shall not<br />

: .. . . . -<br />

-be more than.$1,000 at any one time for farm development and/or pro-<br />

- duction of upland rice, swamp: rice, coffee, and/or cocoa. A farmer<br />

--may apply up-to- a maximum of one hectare development loan (either for<br />

.swamp rice, coffee: or cocoa or a combination of any two of these<br />

. -crops) and up to a maximum of one hectare for upland rice. He can,<br />

-<br />

- ..-however,. apply for a loan up to four hectares for upland rice if he<br />

has not signed for any development credit for cocoa, coffee, or<br />

-. swamp rice.<br />

+<br />

. - : ..~ ..<br />

.... .. .. 3. Except for cash payment for labor in developing<br />

~.<br />

-new farms for swamp rice, all loans shall be in kind such as but net<br />

- l.imiteck to. planting materials, tools- equipment, fertilizers, pesticides,<br />

herbecides, etc.<br />

~.<br />

.<br />

..<br />

. .~.<br />

.<br />

; - !&.:..The Area Cooperatives shall be entitled to get 5%<br />

. - r-mark* on the value of all production inputs served, as part of the<br />

. - production loan package, to farmer-borrowers.<br />

, . . ~<br />

.. .<br />

~ .-<br />

. .-<br />

-5. Payment of loans shall be in the form of produce<br />

- . I. - to; be de-fivered by the farmer-borrowers <strong>with</strong> the assistance of their<br />

. ~<br />

Area<br />

' 'ICUto the Area Cooperative. The produce is to be liquidated by the<br />

Coaperative.atthe buying prices prescribed under its Liberian<br />

- - Eroduce.HarketingCorporation (ISMC) Licensed Buying Agency Agreement.


.....<br />

The Area Cooperative pays the farmers whatever amounts are in excess<br />

of their indebtedness (principal and interest) out of the liquidatioll<br />

price of their delivered produce.<br />

6. The Area Cooperative gets three-tenths (3/10) on<br />

. all.interests on loans it collects as its service fee and remits<br />

.......<br />

the. principal. .and. balance of interests of all loans collected to the<br />

Revolving Credit Fund.<br />

. . . --<br />

...... ..,= .,; -. .: ; : ..::.; ,:7..- :. All repayments in the Revolving Credit Fund shall<br />

.........<br />

....... , be.kept ag the- source for funding succeeding farmers' loans.<br />

. . . . .. . . . . .<br />

.<br />

,. , .:? -.;: ., r . -, . :8. :;. NO farmer who has not setteld his matured loan sa-<br />

tisfactorily can be extended another loan.<br />

. . .<br />

. . . .<br />

. . ~ . . . . 9.!.~Overall repayments of not less than 90% of matured<br />

. ~- . loans, extended to: farmers <strong>with</strong>in a Town Cooperative Unit (WU) shall<br />

...<br />

. . - be-required .for the release. ,of new loans to any of the farmers of that<br />

TCU.<br />

- . . . ~.<br />

...<br />

... . . . . . . . .<br />

- -: Small Business~ersons proposing projects must satisfy the<br />

following conditions:<br />

.....<br />

~.<br />

.... .: .:. ... l..,.Only small businesspersons or group of small busi-<br />

. . . .<br />

~ .<br />

nesspersons <strong>with</strong>out access to other credit sources will qualify for<br />

loans.<br />

. . . . . .<br />

. . . 2. ~ -..Whose<br />

sustaining<br />

enterprise is profitable and therefore self-..<br />

. . ........ . .<br />

... . . . . . . . . . . . 3 . ...C ontribute to the general economic and social well-<br />

being of the area<br />

~ . . . . -- . . . . ..-..... ~.<br />

. 4. Emphasize increased productivity, adding value to a<br />

commodities or furnishgng essential goods or services<br />

i


Below is a sunrmarypf the Lofa County Farmer Loan program. This will<br />

serve as the basis for the ~ f~/~iberia loan program.<br />

Kinds of Loans<br />

A qualified farmer can apply for development and/or seasonal<br />

loans for swamp rice, upland rice, coffee and/or cocoa. Development<br />

loans mature- up to. twelve years <strong>with</strong> corresponding grace periods de-<br />

pending on the-crop financed <strong>with</strong> 10% interest each year. Interest<br />

- - - during-the graceperiod would be capitalized. Seasonal loans mature<br />

...<br />

... . - . : :up.on harvest-of the crop but not longer than one year at a flat<br />

. . ~<br />

. . . - ...<br />

~. service :chargesf 10%. The Credit Packages for any season may be<br />

. ~<br />

... :-:changed!<br />

from -time- fo -time to suit particular requirements of the season.<br />

,-The loan for each particular crop are as follows:<br />

1. Swamp Rice:<br />

........ . ~. . -. - . a. Development loan which is disbursed in one season for:<br />

. ~<br />

.<br />

. -~ . ~<br />

. .~ - .....<br />

. . ...... -<br />

.- . - . ~~<br />

. . .l. Cost of hired labor for the construction of head<br />

-. - - . ~~ ~ ..... .~<br />

.- dike, main and periphery canals,. bunds, and/or~<br />

leveling of the paddies.<br />

. ........ ~<br />

. : . . 2. Tocds such as axes, shovels, hoes, cutlasses, sickles.<br />

. ~~ .<br />

. . - . - ~ ~~<br />

- - -.- Re~a.iment -- In 6 equal annual installments after a two-<br />

. . . .<br />

b. Seasonal loan for:<br />

* 1. Fertilizer<br />

* 2. Seeds<br />

year grace period<br />

3. ~esticides/~erbicides<br />

2. U~land Rice (no development loan):<br />

a. Seasonal loan o dy for:<br />

* 1. Fertilizer<br />

* 2. Seeds


3. Cocoa. Xew Plantin~o<br />

a. Develcpment loan (disbursed ovtr three years) for:<br />

+ 1. Fertilizer.<br />

. . * 2 Seedlings, including infills<br />

...<br />

...<br />

: . . . . - . . .. , - -3. Tools such as axes, hoes, cutlasses, pingalins, sprapru<br />

...... . . . .... ---.-<br />

4. Shade trees<br />

i - -. -.: 7 .: :. ,:,;;ELe&yrnent - In 8 equal annual installments after a three year<br />

grade period.<br />

. .. .... .<br />

..... ............ a<br />

............ .<br />

. -<br />

::.:.:,.b.,.: Seasonal 10% (disbursed from the fourth year onwards) for*<br />

* 1. Fertilizer<br />

2. ~esticides/Insecticides/~ur.gicides<br />

4. Cocoa for Rehabilitation<br />

-a. ~evelo~ment loan (disbursed in ons season only) for:<br />

...... * 1. Fertilizer '~~<br />

.......... 7 - ............ . .<br />

2. Pesticide~/Insecticides/Fun~icides<br />

3. Sprayer<br />

4. Infill Seedlings<br />

. . . 5. Tools suah as axes, cutlasses.<br />

. . . _ _<br />

. ~<br />

...... - .. - . ;. :.: .Reva.wlent - In three equal annual installments begidniq on or<br />

......... .... ........ i . . before the end of the first year. No grace period.<br />

b. Seasonal loan (from second year onwards) for:<br />

* 1. Fertilizer<br />

2. ~esticide/~nsecticide/Fun~icide<br />

* obligatory<br />

.<br />

.<br />

1


- . ~<br />

5. Coffee. Ne-f ?lan:ing.<br />

, a. 3eveloprert LO.=-, (lishzsed over tkra I :-~-rsj -- for:<br />

. . . . . - . . ... ~ ..<br />

.._.,Ci :. .Repaynent . . - In four equa'. annual installaen-;, aCer s three year<br />

grace period.<br />

.. ~<br />

-.... ~ . . .<br />

b. Seasonal loan (from fourth year onwards) for:<br />

~ ~ .<br />

LOAN PROCEDURES<br />

* 1. Fertilizer<br />

2. Pesticide/Insecticide<br />

.- . 1. Identification a=d qualifications of farme~borrowers - The<br />

-. -<br />

~ .<br />

~ . -. - . . . Agricultual Extensior. dides-(AEAs) are primzrily responsible for<br />

. =<br />

. .<br />

. . . . . - ... ,<br />

. _ motivating and iden*ify.bg prospective fanner-borrowers <strong>with</strong>in<br />

~. . ~.<br />

. . . . -. _...:.-. . . . .. . . their - - respctive . . areas of assignment, The Cooperative Aides (CAE)<br />

. . . - are primarily re:ponsibZ e for de terrmaing the credit worthiness of<br />

.. .<br />

. - .. ~<br />

. . ~. ;<br />

. . . .<br />

. ..<br />

.-<br />

. .<br />

. ~<br />

which<br />

. .- ~<br />

~. the .identVied prospective borrowers. 13 all cases, a prospectiye<br />

farmer-borrower mat:<br />

a,, -Be actually tilling the farm he owns or will till the fann<br />

.~ .<br />

his Tribal kuthority has allocated to him.<br />

s . . . . .. - b Be a small farmer of the age of majority who together <strong>with</strong> the<br />

,. 7.<br />

. ... . - ~~<br />

....~<br />

. - ~.<br />

... -.* members . . ~ ~<br />

. . .<<br />

of his household do most of the farm work.<br />

. .- c,. Be willing to follow advice from the proper authority on<br />

. .<br />

. , . ~<br />

.. .. .-. - ~~<br />

. ...<br />

-: recommended cultural practices, proper marketing of his<br />

~ .<br />

.. . . , . ~. .<br />

. produce and othez advices intended to improve his maan of<br />

livelihood and quality of hi8 life.<br />

* obligatory


.......... . . . . - .<br />

.<br />

.....<br />

:.. ...... -,.,. .... ..........<br />

. . . . .<br />

.. :<br />

........-..<br />

..>; ::' .' - ~ .. .<br />

. . .- ...... . . ......<br />

........<br />

_ ;.; , .-<br />

.<br />

e . -. .,<br />

. .~ _ . . ....... .... - . ......:.<br />

Be a member of his br3a Cooperative and TCU md fulfill the<br />

obligation an? exercise the privileges of hie membership.<br />

. .ittend and ~erticipate in prescribed farmers extension a1as.e~~<br />

seminars and meetings,<br />

f. Have settled fully his natured obligations, if my, <strong>with</strong> hi8<br />

Cooperative ..<br />

?. - .: g, pave a farm witei I the cr~p/s<br />

ir~r v:~ictl he wants the lo=.<br />

...... ..-. . ........ . ..... h. Be carable of p. y! .?g ?.he ;ma lte is ap23 yh& for.<br />

.. - . ......<br />

2. Steps in Secur'ns t,heT_-pn_<br />

. . . . . - . ....... a. ,--+,iden.:ifins<br />

. . knd checks ihr quc;.ificcr;;ions of the prospective<br />

- , . . . . .<br />

. . . . . .<br />

. ,. . . ...........<br />

. .<br />

~. . .. .,.<br />

. . . . . . . . . . .<br />

. . .... . . . . . . . .<br />

. . .<br />

..<br />

. . . . .<br />

-............<br />

. . ......... .....<br />

...<br />

......... -. .... .....<br />

. .<br />

faqne~yborro :er. The ;i-;. di-.-2rsi.q cf a farming operation<br />

will depend on the work force available to the farmer. Aide8<br />

should investigate this aspect and not encourage farmers to<br />

.. . - extend their operation beyond their management ability or<br />

available work force .<br />

. ...... ..........& ,. ". -'.+ ' . : . -- . . . . - . .<br />

........<br />

. -- . . . . .<br />

"... . .<br />

. .<br />

. .~<br />

b. CA checks his credit worthiness.<br />

.... c.. Land Planning Division staff determines suitability and aka of Larm of the prospective farmer-borrower.<br />

. . . . . . ~ :.~:.- d.. . ,If..the farmer is found worthy of the loan, the BEA concerned<br />

. . .. .themfills<br />

. - ... . . :...<br />

' for him.<br />

. .<br />

......... - . . - . . ... . . . _ . e., This.<br />

........<br />

- . . . . . . . . . . ......<br />

.. ~. . . . ~ . . . . . . . . . . . ...<br />

..... out items 1 tn 8 of the farmers credit application<br />

. , FCA ia then forwarded to the Management Committee of the<br />

. _ .!l!CU..for its recommendations. This Comittee is oompoaed of a<br />

.... chairman (who is elected by the members of the TCO), the AEA<br />

... . -<br />

....... - . . .<br />

..... .,.~. ...<br />

. . . . . . . . . ...<br />

,~<br />

. . . . . ,.. . . . .~ . .<br />

..<br />

. . . . . ,.. . . . -. (who . - acts as secretary), and the CA assigned to the area where<br />

., .<br />

.. . . . -. . .<br />

. . . .<br />

: .the TCU is located, ~.<br />

In cases where the Town Chief is not<br />

. . . .<br />

elected as the Chairman he will be an ex-off icio Piember of the<br />

. , .TCU Nanagement Committee. The TOMS Chiefs of satelite towns<br />

.. -. (in .osaes uhem the 'PCU oomn mom thrn one tovn) am .18e<br />

: . .,% , ,<br />

. . autoacrtia ez-offioio aa~bers<br />

of thr CnmreZttoe. 'Ph. Codttw


. ., :, .-<br />

.. . . .<br />

.<br />

. ~ .<br />

.<br />

. . .. - .; . -..:verifies if all information in the application is coxmot.<br />

. . . . . .<br />

.<br />

.- -. . . . . .. .;The - Secretary than completes the FCA from itus 9-14 if<br />

. . ~. - .. . applicant is considered suitable, except item 12 whioh i8 to be<br />

. - -. -. signed by the Town Chief concerned if the farm rightly belew<br />

to the pr~spective farmer-borrower.<br />

. . - . . - . - f. . ~. - .The. FCA is them forwarded to the Diatrict Credit Committee<br />

final approval. The DCC is composed of represnkr-<br />

. - . . -. . . .. . .- - .. . . ...~ . . -~ . (DCC).-~O~ . ~ ..<br />

!<br />

. .. - ---<br />

,.. . , . . - . . . - ,- . tives . . . ,; of the area Cooperative, the Cooperative Officer (co),<br />

~ . -. .. -... . - .~<br />

. ~. .. -. .<br />

~ .<br />

and the Agricultural Extension Officer (~0).<br />

~. . . -<br />

- .. .... .. .. .- -h. ::The -Carmer-borrciwer slgna gr thunb-_~ri.++,~<br />

- ~ .<br />

. .<br />

=~ - . . - . . .<br />

~~ . ~ ~ . . ~ .<br />

(if illiterate) #a<br />

-:-+w-,&grearnen-t; Then this is couate~signcd ty the authoris&<br />

. -~<br />

. . . . -~ .. representative of the Area Cooperative.<br />

- ~<br />

-<br />

... . . ~.~ . ~ -.+.<br />

~. -- an approved L-a Sehedule (ALS) is then prep.rsd by tha<br />

. .. ... -..<br />

.. . . .-..~ . . .:. .~oope-rstive in . 7 oopies A separate US 28 pW<br />

. . . . - ~. - .. . -<br />

- .. - . ~. .. - - . :aopy.,to CL, fifth copy to the CO, eixth oopy to tho 190, d<br />

-, seventh crgy %o the Cooperative.<br />

. .. . . .. .., . ,: I- -.: 3. - Loan -Releases - D m<br />

~ .<br />

..,<br />

. .<br />

~.<br />

. . .. . . .. . .<br />

~ -<br />

aompletion of all the afo-ntiorub lwt<br />

~ . - .<br />

~<br />

-. . . . . papera, the following steps sue follavod for tb<br />

release of tlre approvet 1.b itemar<br />

(1 ) The AEA prepares in triplioate a Piold .InspotLon<br />

Certificate (FIC, in whioh IM tartifha th.t<br />

tb. X w q M rorf hu F..n eorgl8f.d w tb. f.sr .1<br />

-0-8 L.1- Of apB0f.fi.d 1- -ti#.<br />

i


- ,. ..... . . .~ ~. , . . .: - .,.;<br />

Distribution Of PIC oopiesr<br />

First cbpy - farmer<br />

Second " - BE0<br />

Thirt " - AEA file<br />

. . . . .-(2):. Farmer presents hio FIC copy to the CA at the Cooperafiw<br />

.:Sub-cenzer or at previously designated places when WI.<br />

loan caiiuoditiea are stored.<br />

. . . . ~. . =.. . 3 'CA 3113 ous in quzdruplicste the Commodity Relesse<br />

... -. ........ ! .:. -. .. o;>.>.-,--.c<br />

. - ................. . ~ ~. -. .. - .: A+.+ :Inaoice (CRI, . covering the commodities authori..d<br />

for relercie.<br />

....<br />

f : .........:.... : ......-.<br />

. .<br />

.:1::5. (q) .:After the farser sipm .,r; thumbprints dl oopies of hhe<br />

..........<br />

. .<br />

. . . . . . . . . . . . %XI, the CA iss%e3 to hiu the soumdities and the third<br />

. .<br />

~.<br />

.<br />

......<br />

... ....... .-<br />

. .<br />

'.' -%.- -&o$y of saj.2 %?I, The firs3vo xpies are than forwar&d<br />

to the Cki,<br />

... ' . . . . :-:(5)' -CK kee;:s the firs.: GOX o; -3" FIC ?.:I& fourth copy of the<br />

CRI a? :a??': f hid record,"<br />

ry ........<br />

-<br />

-.<br />

....... . . - -b. .-Gz*h .-Items (labor pa-pents for swamp ~i.i,= farm development):<br />

. -<br />

. . .............<br />

. . . . . . . - .- . =Swam> rioe labor payments will be made in j releases, a<br />

........<br />

. .. ? . .............. .... .. : :: .: a :fir& of 25% of the contract amount, a second release of .a<br />

" ,...<br />

. . . . . . .<br />

. .<br />

. . . . . . . "-- f:. .- : :-.:- ad&tional 2596 of and a third release of 50% after all work<br />

. ~<br />

. . . . : . . . .,<br />

has been completed.<br />

.. ........ : '. 'rf- -'(1-) '-' We Agriculture Division field staff assist the farmer to<br />

-. . . . - .......<br />

...... . . ..~ZZT 'u':;. look foz a contractor to do the development work.<br />

. . . .<br />

- - . . : . : ( 2 A oontrzct in three copies , is<br />

. . . . . . . . . . ..... ......<br />

............. . .<br />

..<br />

. . . . . . . . . . . .<br />

- :,<br />

then drawn up :<br />

-. betweon the farmer an2 coztraotor specifying-<br />

......<br />

. . . . . : . . . .- :. . ." . . . (a) Swamp Number {to be provided by Land Planning<br />

. . . . -<br />

. . ... Di-rision after their survey of the place).<br />

. . .<br />

. .<br />

... . . . .,<br />

(0) L w<br />

(b) Coop membe-ship number of farmer (from the BLS).<br />

......<br />

noabar of f-r (from thr w).<br />

. .<br />

I


- I I;. ..; 145); The BEb initiates pymetnt prooedura by i8.rrfne Labor<br />

......>.... . ..... . -. . . ^ -~. ..,... .<br />

:.. ......... . .<br />

I -. Payment Authorization (LPA, in three copies.<br />

. .<br />

........<br />

A . -. .. - (4) The AEO certifies to the correctness ofthe LPA and<br />

. . . . . . .<br />

~~ ~<br />

-. - forwards 2 copies tn the CO. The first set of LPB. for<br />

-<br />

. . ~. . a particular swamp must be accompanied by the first 2<br />

. ~ . ~. - . .. ......<br />

~<br />

4<br />

-<br />

. .;. .~ ... , . .-<br />

. 2..-.-<br />

. - - - . - -.. 2 ... 7 ... :<br />

. . - --.- _.* .. -. :.-- ,,i-. + 3;-: =. ..-<br />

...... - -<br />

. .<br />

. ..<br />

. . . - ..Is ,- ;zs xnl-:; 2y.i~:<br />

copies ?f .the contract between the farmer (a) and the<br />

contractor (s) .<br />

- I 4 5 ) The CD %hen prepares the Labor Payment Receipt (LW,<br />

. . . . . -- .-.- ~-.,$ in 4 zopies and, together <strong>with</strong> Finance Diviaion<br />

. . .<br />

::-.:(m), pa,:ks the money in 2nd sezls tine money packet for<br />

each individual farmer.<br />

. .<br />

. - - .-<br />

.... .. .<br />

...... -- *(A) The, first %ree copies of the LPR, together <strong>with</strong> the<br />

. . ... ? . . ... - . . . . . .<br />

... -<br />

. . . . . . ....... -- - 7 -<br />

. ~- ~<br />

-<br />

correspo?~dlhg packed md sealed money packets are then<br />

.<br />

...<br />

...<br />

..... - -~. i-. - - I given by FD to my of &he authorized field staff after<br />

. . -. . ................<br />

........ - - .-..<br />

. . he 8i&r these oxt oa +Ae LPB Distribution Iboolrd.<br />

. .<br />

.<br />

- ... ..... .---. =<br />

.... . . .<br />

~ ........ . . .... . ~<br />

....... . ~ . ~. ~ .<br />

. - .. .- . . . . . . .<br />

~<br />

-<br />

. ('I)-- In oasa tt-is person 5s not tb? me rho -8 paymrnt ta<br />

- the iarders, iie x3t secure a ?'i.~:,riify Pecket Eeceipt<br />

- ~ .><br />

. - . ..-(WE, fza~<br />

. . over the L Zs a16 mney 2acl.et;.<br />

. ~<br />

the zuihorized payor to whom he tm<br />

...... . .. . -<br />

.- . . .~-. &al-,Fhe .. ... C i concerned shall release the noney packet unowned<br />

~ . .<br />

. . .<br />

........<br />

. .<br />

.<br />

............... -. - .-<br />

tothe farmer in the presence of the the contractor. Up(0<br />

. . ......<br />

. - . .<<br />

~~<br />

r<br />

.....<br />

. ~<br />

......:<br />

- 'Ws receipt of the packet, tie famer signs/thumbprint8<br />

. . -the first 3 copies of the LPB, then hediately opens the<br />

-..packet, counts and cays the money to the contractor in th.<br />

.... -.<br />

....<br />

.<br />

.................. .<br />

.........<br />

.. - ,:preseuce of the CA. The CA then signs the LFR certifyin#<br />

- thst he has made the payment.<br />

, . ....-. . . . . -~. . . . ;.- 7-i.7 ,. :()).+ The CO forwards the first two copies of the signed LPFI te<br />

. . .<br />

.<br />

-.<br />

.<br />

.. , ~ ~ . , ,<br />

. - - .: 1- the Central Office and retains the third copy. The f m<br />

- ~~.<br />

....... . .........<br />

. -. . . :;.copy. goes to CD and the second copy tn FD. Likewi8e am<br />

........ ~~<br />

.~ .<br />

.~ . . ~-. in No. 7 above, carriers of signed Lmts have to sign TR<br />

......... . . , :<br />

... .. .. . . .<br />

~ ~. ~ . . - u 8cknrvle@aant of thFr recaipt of tlnrr doouaento.


... . .<br />

4. Loan Collections<br />

a. Not later than 30 days before tix lo= repayment far a parti-<br />

...<br />

.... ...... ... -. cGar crop is due, 5he Cooperative prepares in five copies<br />

'Schedule of Reasonal Loans Due (SSLD) for the area covered by<br />

.<br />

each CA showing ;he principal and service charge due<br />

- ..<br />

. ~<br />

.. ~<br />

Distribution of copies:<br />

First Copy - CA<br />

Second " - CM<br />

Third " - CD<br />

Fourth " - CO<br />

Fifth " - Cooperative<br />

..........<br />

. . . . . . .<br />

b,- The. CA advises the TCU Management Committee on loans due from<br />

... .....<br />

their numbers.<br />

..<br />

c. , TheTCU Management Committee advises farmer of the ohligations<br />

...... . . . . . . .<br />

. - .......- .......... -.<br />

. . ,<br />

. .<br />

. . . . - . dueand the date the Ccoperative will come to the Sub-center<br />

. .<br />

. . . . . _ ,.: A.v - _ to<br />

, ........<br />

.collect/purchase the produca to be delivered 3y the fa'mers.<br />

~. .<br />

- . .<br />

.<br />

. - ........ 6. -. Farmer-borrower . -. . -. ..*. delivers his produce to the Sub-center/Coopera-<br />

. . . . . . ....<br />

. . . .<br />

.. ~<br />

tive .<br />

.. ..- . e. - . Cooperative liquidates the delivered produce, and pays the<br />

:, . . '3 .. . - . .<br />

fanner for whatever is in excess over his obligation, giving<br />

... ..<br />

.... ... - .... ..... . . . .<br />

. . . him a liquidaticn slip for their transaction.<br />

. . . . . . . . . . .<br />

:. ,-<br />

...........<br />

. . . . . . . . . .<br />

... . . .<br />

. . .......<br />

. . - .<br />

.,... - ..


. ~. . A qualified fandr may tpply for new l.cana if:<br />

.<br />

- ~<br />

. . . ~ .... ~,.. i .... .... ..~: ~- --<br />

I<br />

.<br />

-. . .-<br />

--..... -. .- . - ..x -____.-i_:<br />

: .......-. 2; .....<br />

a. He has setticd his previous matwed lcan.<br />

b. The overall repayment of matursd loans of all the members of<br />

his TCU is at least 90%.<br />

c..,Hisnew loan including his old loan shall not exceed $1,000.<br />

.. ......<br />

Applications for reloans shall be submitted <strong>with</strong> the foil-g<br />

accomplished forms:<br />

a. Farmers Credit Application.<br />

~. .... ............. b, ,Lo+ Agreement (for new seasonal or neu development loans<br />

..... - :.....:.... .;<br />

...<br />

. .<br />

.......<br />

.~. ........ - . ~. only), No new Loan Agreement is needed for the eomsponding<br />

seasonal loan intended for the same crop which vaa covered by<br />

..... ... ..... . ~. . . . . . - ..<br />

.......<br />

. . . .<br />

the pievious Development Loan Agreement.<br />

6. Comuutation of Reuayments<br />

............ - :~- ...: ........<br />

. -- - a. Seasonal Loans - payable upon harvest of the k p finaacad<br />

........<br />

.......... - . . . . . . . . . .... . .but..not later than one year from-date of the loan at 10% flat<br />

... ......... : ...... -. . .~.<br />

service charge.<br />

.... . ~<br />

---<br />

. . . . .<br />

. - . -. .... .........<br />

-...<br />

1.<br />

.Total amount due ~principal<br />

principal.<br />

~. . . . ~xa&le : Loan - $450.<br />

. . :<br />

/<br />

-. a. Principal - $450.<br />

- . .~ -<br />

- ..<br />

-- . - - . .<br />

+ 10% service charge, on the<br />

. Service Charge (10% x $450) - 45.00<br />

Total payment due = $494.00<br />

...... . -r. .... . - . - . :7-.~ . b. Development Loans .- No installments ara due &wing the lpMe<br />

I 2;<br />

. . . - . . . . - .~ . period of the loan. However, the principal plu the Fnkramt<br />

; . - -- < ~ . -.<br />

.-. -. ~ . ,. . - .. -<br />

~<br />

~<br />

-- . - . . atlw . . a year are totalled (capitalized) by the end of th.<br />

.. ~ .... . . . -- . . ~- . . ...... grace period and divided into as many equal yesrly instrllwnt8<br />

. . .~~ .<br />

- as called for (refer to section E, 7-5) in the terms at fh.<br />

- -<br />

the<br />

psrticulsr Loan. The yearly installment plus the iatoreot of<br />

loan balance are to be repaid by the borrower.


I<br />

. . -. Example of Elev Cocoa Lcsn Rxauent S?hetule<br />

. -. .. .- ....<br />

. .<br />

. .... -- .- The...table below is >roviie?. fxc uot: in expiaining to farmers the<br />

..... . ~ . . ~<br />

. amounts ..... due each . year for repa;--se:lf of a c e h e ? ? new ~ ~ cocoa loan.<br />

. .The amounts might be someirhst rx:?- or le.:s d:;pe~d.'.ng on the price for<br />

. . . . . . . . . .<br />

fertilizer in future pars. ,I L\:, the a- omtu -vould be reduced if the<br />

. . . . .<br />

.farmer does :l;otv..take tk: fuil t~?is packag.? x if he arranges transport j<br />

. :<br />

.~ . .<br />

~<br />

.<br />

~<br />

. . . .<br />

......<br />

. . ..:. . .........<br />

... of.,his . . -.ownse.edlings. . . .<br />

New C~UOE! loa-.S ere fo:.: ?2 yeam <strong>with</strong> 3 years<br />

. . . - . . . . -<br />

...<br />

..&<br />

.,.. ... - - .. ........<br />

....... .- . - ...... - ..-... - . -. . -<br />

r7 :~: .i:.; .apy,,are,,applied ....... .....- to the development lc,a.n accclmt. Therefore, the<br />

.... = y<br />

" . .~.-'. . -


Year 4<br />

,<br />

. . .<br />

7/1 8 - NPK Fertilizer $110.00<br />

...<br />

Semi ce Charge<br />

11.00<br />

- -.<br />

- ,<br />

. . .<br />

./. -.<br />

Dev. Loaz Installment<br />

Dev. Loan Interest<br />

50.82<br />

- . , --- .<br />

*-:- -: -. -<br />

Total Payment Due<br />

-ALiiI<br />

-


. -<br />

Future Use of the Revolving Loan m d:<br />

.. . .. . . . It would seem highly probable that there will still be many<br />

. ;,.<br />

.. . smal1,husiness persons - both farriiers and commercial entrepreneurs<br />

. . . remainingoutside the scope of institutionalized credit sources at<br />

.. . . .~ , . .<br />

. .<br />

. . the -endi of.,the :grant period. The PfP Revolving Loan Fund would be<br />

. .<br />

. - .. ...l..<br />

. the ,po,ss$ source of loans for these people. However, since<br />

programs-proposed for the program area<br />

- + .A<br />

= =<br />

. I:. :thew :&rs,.a,rpumber of credit<br />

.. . .<br />

-- .: -$h.e. nature-and degree of the demandis<br />

-<br />

. 1:. : .. --:<br />

5 be. dertermi;nad by ~D/~iberia ~issio4<br />

-. r year grant: period. If there<br />

. ~<br />

. that will have to<br />

. . something<br />

. .<br />

rind PfP/~iberia after the 5<br />

is a continuing need and demand, by<br />

. -small business persons outside the scope of the other credit sources<br />

..for.,access :to PfP credit facilities then the Revolving Loan Fund<br />

.,<br />

- . will be-granted to PfP/~iberia to continue its loan program.<br />

.. . . .


x<br />

4<br />

APPENDIX Q<br />

Linkages Between PfP/~iberia and Related Agricultural Projects<br />

The Central Agricultural Experiment Station (CAES) locazed at<br />

Suakoko is to become the principal research institute in Liberia at<br />

the pational level. As much of the basic research has been conducted<br />

. ~ . -~ . : --- - elsewhare,-.-:e.g.-by IRRI in the Phillipines and IITA in Nigeria, the<br />

. :.<br />

~ ~ . . .- ... emphggip . at-CK will be on.adapting and applying this research to<br />

1<br />

- -.<br />

~ ~ .<br />

conditions in Liberia.<br />

. . It is~.understood from the Project Paper prepared by the Centre<br />

for Agricultura1,Sciences and Rural Development, LSU, Contract # AXD/afr-<br />

. .c-1532, that one of the principal goals of the Centre is to cooperate<br />

~ ~<br />

and coordinate- closely <strong>with</strong> the Development and Exten- programs, e.g.<br />

Lofa and Bong County Projects and PfP/~iberia. They will conduct local<br />

.-.+-verigication<br />

.. . trials, develop viable production technology packages,<br />

-- -demonstrate and disseminate the packages to farmers ria extension<br />

- services and provide a flow of information and results from the fanners<br />

to the researchers and back to the farmers.<br />

PfPL~iberia has been engaged in such a strategy in a limited<br />

way <strong>with</strong> a demonstration farm conducting applied research,. an agricul-<br />

tural extension services and appropriate technology center. The services<br />

z e to be considerably expanded and strengthened as explained in the<br />

proposal.<strong>with</strong> emphasis upon rice production, tree crops, cocoa and coffee,<br />

L legumes, roots and tubers, animal husbandry practices, and appropriate<br />

agricultural technology tools.<br />

The considerable task of raising subsistence food and cash crops<br />

production, however, will necessitate the promotion of extensive re-<br />

search-extension-development program linkages. PfP will cooperate <strong>with</strong><br />

all parties, expecially <strong>with</strong> CAE& to create such a mutually beneficial<br />

network aimed directly- atiassisting the Liberian peasant farmer.

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