The_Open_Door_deel1

-450-
If one adds to the employment of expatriates in fully owned
Liberian enterprises, the investment activities of wealthy
Liberians in countries other than their own, serious questions
can be raised not only as to the sincerity but also to the feasibility
of the long term objective of Liberianization of labour
and of capital. Although there is an unknown flow of capital out
of Liberia which the country greatly needs for development projects,
the case of the Mesurado Group of Companies may be cited
as one example. There are also the examples of a rich businessman
from Marshall Territory,, a Senator from Cape Mount County as
well as a Senator from Maryland County, the former Chairman of
the True Whig Party, and the President of the Bank of Liberia,
It should be born in mind that the use of foreign capital, knowhow
and labour should be a temporary affair aimed at filling the
gap which prohibits the national population from participating
in the exploitation of the country's natural resources.
Another major conclusion of the present study is that a reform
of the concession sector is long overdue. Such a reform should
eradicate the errors and anomalies of the past by improving the
administration of natural resources. It would result in an increase
of the Government's income from the foreign owned sector
of the national economy, and contribute to the development of a
more balanced economy with a diversified production structure.
It will also raise the standard of living of those Liberians
who have contributed to the concession sector without sharing
adequately in its material success.
The third major conclusion is that the functioning of the Government
depends to a very large extent upon foreign investments and
foreign funds. We have seen that during the last decades, direct
income from the concession sector formed nearly one third of total
Domestic Revenues whereas the total flow of foreign funds to
Liberia even exceeded the total direct income from the concession
sector. If the Government wants to maintain the same level of
public expenditures it must continue its reliance upon foreign
investors and their Governments. Besides, the produce of the concession
sector, which is completely exported, partially permitted
the import of certain goods which are not produced in the country.
Furthermore, the concession sector employs some 50,000 people or
nearly 30$ of the total employed labour force in the monetary
economy. This leads us to the fourth major conclusion.
The continued exploitation of the country's natural resources by
foreign private investors appears indispensable at this stage of
the country's economic development if the Government wants to
avoid the immediate collapse of the modern economy. The fact that
Liberians have not prepared themselves to take over from the foreign
investors only adds another argument to this conclusion.
This does not necessarily exclude, in the not too distant future,
active participation of Liberians or of the Liberian Government
in the exploitation of the country's natural resources though,
notably, the latter's role should be handled extremely carefully.