Introduction
The following conclusions and
recommendations are based on a study of Liberia's experience
with concession agreements granted to foreign investors which
covered more than 60 concession agreements.
Continued
Conclusions
In the late 1970s Liberia had one of the
best performing economies in sub-Saharan Africa. After the
occasionally even double-digit growth rates of the 1950s and
1960s Liberia's economy began to slow down in the 1970s.
Also, it appeared that the social costs of the uneven
distribution of the results of the economic growth began to
create serious political tensions. Leaving the political
consequences aside we will focus on the major conclusions which
have been grouped
as follows.
Recommendations
Liberia is on the eve of a new
phase in its economic development, which very likely will again
be based on external financing. This may be foreign aid
(Official Development Assistance, ODA), or Foreign Direct
Investments (FDI). For the sake of an independent
national policy it may be useful to limit the dependence on
foreign aid because of the conditions inherent to these funds.
The Liberian Government may find it easier and more attractive
to impose its policies and views on foreign investors. This
increases the need to know what it wants, how it sees it can
most effectively attract and deal with foreign private
investors.
The following recommendations may prove useful in
this respect.
-
Basic changes in handling of concession affairs
-
Acquisition by Liberians of more skill and experience
- Improvement of the
concession policy
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Concession agreements studied by the author:
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