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CHAPTER 2<br />

-12-<br />

THE ORIGINS OF THE CLOSED DOOR AND OPEN DOOR POLICIES 1847 - 1947<br />

In Chapter 1 we have seen how black colonialism resulted in the<br />

creation of Liberia. This second chapter will focus on those<br />

economic achievements, financial transactions and political<br />

developments of the young republic, which eventually resulted in<br />

an "<strong>Open</strong> <strong>Door</strong> Policy" being adopted by the country's leaders, one<br />

century after the Declaration of Independence. In the Liberian<br />

context this <strong>Open</strong> <strong>Door</strong> Policy included the acceptance of foreign<br />

loans,'the granting of concessions to foreign capitalists, and<br />

the opening up of the country for foreign traders.<br />

Some events and related periods were dealt with more extensively<br />

than others. This was considered justified in view of the main<br />

object of this chapter: to explain why and how the Liberian<br />

leaders decided upon an "<strong>Open</strong> <strong>Door</strong> Policy". It is not the<br />

intention of the present author to present a full account of all<br />

developments that took place during the period covered, viz.,<br />

1847 - 1947, but to restrict himself to the main theme of this<br />

book. Extensive historical research on the country's past<br />

revealed that there still is an appalling lack of information<br />

concerning Liberia's first century as an independent nation.<br />

<strong>The</strong> knowledge available was found to be at times highly<br />

confusing and contradictory (see Annex 1). Nevertheless, this<br />

chapter will throw some light on the background of Liberia's<br />

policy to promote internal economic development through an "<strong>Open</strong><br />

<strong>Door</strong> Policy".<br />

Liberia's failure to start even a beginning of economic growth<br />

prior to 1947 is - as will be shown further on - due to its need<br />

to survive politically. This need prevented the implementation<br />

of a wise economic policy. <strong>The</strong> main causes of Liberia's problems<br />

during the first century after its creation were:<br />

(1) the internal conflict within the settler population<br />

between mulattoes and blacks;<br />

(2) the conflict between the settlers and the tribal<br />

population;<br />

(3) the external conflicts with European Powers and<br />

traders.<br />

<strong>The</strong> negative impact of foreign loans, incorrect collection of<br />

taxes, improper management of government funds (mainly due to a<br />

lack of qualified people) and embezzlement of public funds<br />

aggravated the problems.<br />

Immediately after the Declaration of Independence a vicious<br />

circle developed whose financial impact led the country on<br />

various occasions to a situation of near-bankruptcy. An adequate<br />

reaction to these financial problems was prevented by the colour<br />

conflict (between mulattoes and blacks) which dominated internal<br />

(settler) politics in the nineteenth century.

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