The_Open_Door_deel1

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The 1960 - 1979 Period j
For an insight into the developments which took place in Liberia's ;;
international trade a number of relevant Tables have been includ- I
ed as Annexes 41 through 46. They show (i) the country's external |
trade during the years 1922 through 1979 (Annex 41), (ii) its |
main export products during the years 1968 through 1979 (Annex 42), I
(iii) its major trading partners in the 1964-1975 period (Annex I
43)» (iv) the major buyers of its most important export product, \
iron ore at the end of the 1970's (Annex 44)» and (v) the value X
and structure of imports by economic end-use during the 1970's ;
(Annexes 45 and 46). A summary of the most important conclusions :
which can be drawn after studying and analysing these Annexes . :
shows the following: \
(1) Liberia's total international trade which in 1960 was valued
at a little over I 150 million reached the $ 1 billion
mark in 1979. Preliminary figures for that year show a
balance-of-trade- surplus of $ 30 million. Compared to 1960,
exports had increased more than six-fold in 1979 whereas
imports had increased more than seven-fold in the same
period.
(2) In particular during the 1970's the growth rate of the exports
was surpassed by the yearly increases of the imports.
This was caused mainly by (i) the international inflation,
accelerated by the various increases in the price of oil
and oil products, (ii) the (monetary) instability of the
U.S. dollar, legal tender in Liberia, and (iii) the economic
recession of the late 1970's which resulted in falling
iron ore exports, Liberia's main export product. As
a result, the balance of trade, which still had been positive
in 1976, turned into a negative $ 16 million in 1977.
The last time the Liberian economy had experienced a balance-of-trade
deficit was in 1964» thirteen years earlier.
(3) Throughout the past two decades iron ore was Liberia's
major export product. In 197.5 even three fourths of its
total export earnings were derived from the sales of iron
ore. In that year the price of iron ore was at its zenith?
$ 16.22 per long ton and even though the volume of iron
ore exports was 30 percent less than the preceding year
(1974) total iron ore exports valued nearly 12 percent
more in 1975 than in 1974. It should be borne in mind, however,
that the inter-company sales of Liberia's iron ore
concessionaires tend to understate the real value of the
iron ore sales and exports (see chapters 7 and 8).
(4) Until 1975 only three products accounted for about 90 percent
of all exports. They were iron ore, rubber, and diamonds.
Given the fact that reported values of these raw
materials are understatements, the real importance of these
products in Liberia's international trade is much higher
even than may appear from the Table "Structure of Liberia's
Exports 1968 - 1979, in percentages". (Annex 42)