Economy of Liberia

related topics
{company, market, business}
{country, population, people}
{rate, high, increase}
{island, water, area}
{war, force, army}
{government, party, election}

The First Liberian Civil War in 1989-96 destroyed much of Liberia's economy, especially the infrastructure in and around Monrovia. Many businessmen fled the country, taking capital and expertise with them. Some returned during 1997. Many will not return. Richly endowed with water, mineral resources, forests, and a climate favorable to agriculture, Liberia had been a producer and exporter of basic products, while local manufacturing, mainly foreign owned, had been small in scope. The democratically elected government, installed in August 1997, inherited massive international debts and currently relies on revenues from its maritime registry to provide the bulk of its foreign exchange earnings. The restoration of the infrastructure and the raising of incomes in this ravaged economy depend on the implementation of sound macro- and micro-economic policies of the new government, including the encouragement of foreign investment.

Contents

Summary

Civil war and government mismanagement destroyed much of Liberia's economy, especially the infrastructure in and around the capital, Monrovia. Many businesses fled the country, taking capital and expertise with them, but with the conclusion of fighting and the installation of a democratically-elected government in 2006, some have returned. Richly endowed with water, mineral resources, forests, and a climate favorable to agriculture, Liberia had been a producer and exporter of basic products - primarily raw timber and rubber. Local manufacturing, mainly foreign owned, had been small in scope. President Ellen Johnson Sirleaf, a Harvard-trained banker and administrator, has taken steps to reduce corruption, build support from international donors, and encourage private investment. Embargoes on timber and diamond exports have been lifted, opening new sources of revenue for the government. The reconstruction of infrastructure and the raising of incomes in this ravaged economy will largely depend on generous financial and technical assistance from donor countries and foreign investment in key sectors, such as infrastructure and power generation.

History · Politics · Demographics
Culture · Geography · Music
Communications · Transport · Economy
Armed Forces · Foreign relations
Americo-Liberian · Nationality law
Subdivisions: Counties · Districts

In greater depth

The Liberian economy had relied heavily on the mining of iron ore prior to the civil war. Liberia was a major exporter of iron ore on the world market. In the 1970s and 1980s, iron mining accounted for more than half of Liberia's export earnings. Since the coup d'état of 1980, the country's economic growth rate has slowed down because of a decline in the demand for iron ore on the world market and political upheavals in Liberia. Liberia's foreign debt amounts to more than $3 billion.

Full article ▸

related documents
Economy of Slovenia
Economy of the United Arab Emirates
NASDAQ
Economy of Trinidad and Tobago
Economy of Luxembourg
Special Economic Zone
Railway Mania
Cantor Fitzgerald
International Fund for Agricultural Development
Industry
Cash flow
Economy of the Czech Republic
Economy of the Democratic Republic of the Congo
Economy of Thailand
Alstom
Economy of Albania
Economy of Malawi
Stock market bubble
Economy of Libya
Economy of Gabon
Toshiba
Economy of Italy
Economy of the Netherlands
Tertiary sector of the economy
Michael Milken
Monopolistic competition
British Aerospace
Economy of Nicaragua
Foreign relations of Madagascar
Keiretsu