The_Open_Door_deel1

-437-
a very large part of G.D.P. is transferred abroad. Clower et
al. even mention an amount equivalent to about 50 percent of
the Domestic Product (25). This refers to the 1950's mainly.
But in 1967 the Liberian Government reported through its
Department of Planning and Economic Affairs that in I960
Foreign Factor Payments had amounted to $ 47.8 million where?
as they increased to $ 78.8 million in 1964, $ 81.3 million
in 1965 and $ 88.3 million in 1966. Thus, payments to foreign
factors of production represented "only" 34.5 percent of
Liberia's national income in I960 but in the mid-1960's the
remuneration of foreign capital and labour was over 50 percent
of Liberia's national income. Between I960 and 1964 Foreign
Factor Payments had increased by $ 39 million whereas National
Income rose by only $ 15.3 million (26). The explanation for
this steep increase of the share of foreigners in G.D.P. is
the coming into production of LAMCO and Bong Mining Company
(then called Delimco), two companies which were still in the
planning stage and under construction in I960.
At the end of the 1960's the Department of Planning and
Economic Affairs still had to report that G.D.P. continued to
grow faster than G.N.P. (27). In that particular year (1969).
Net Domestic Product at factor cost was, reported to be $ 329.2
million, whereas National Income only -jsalued $ 211.4 million
(28). Thus, Foreign Factor Payments amounted to $ 117.8
million and represented a weekly average o? over $ 2 million.
Although during the 1970's the growth rate of the National
Income exceeded that of G.D.P. the level of Foreign Factor
Payments remained high. During the first six years of the 1970's
they averaged annually over $ 100 million whereas in 1975 they
amounted to over $ 150 million. This represented more than 27
percent of G.D.P. at current factor cost and exceeded the
estimated value of the output of the traditional economy
($ 117.3 million) (29). The favourable international economic
conditions and notably the high iron ore prices are the main
explanation for this exceptionally high level (see Table 69).
As from 1975 the Ministry of Planning and Economic Affairs
discontinued the publication of the amounts of Foreign Factor
Payments. Reasons for this decision were not disclosed.
The total amount transferred abroad during the 1944 - 1979
period has been estimated at between I 1.5 billion and $ 2
billion (30). As a consistent time table showing G.D.P. during
the same period is not available - for reasons given above -
the aggregate G.D.P. for this period has also been estimated.
This estimate gives an amount of approximately $ 8 billion (31).
It can thus be concluded that on the average in the 1944 - 1979
period between 18.7 percent and 25 percent of Liberia's Gross
Domestic Product went abroad in the form of Foreign Factor
Payments, or, an amount equal to from one fourth to one
third of the National Income (monetary sector only).
There is a very unequal division of income between expatriates