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-294- granting of tax incentives) without adequate compensation for the national Treasury. It seems unavoidable to conclude that the country's most powerful politicians considered their personal gains of greater importance than their duty to defend the nation's interests.
CHAPTER 10 -295- FISCAL PERFORMANCE versus DEVELOPMENT PLANNING Introduction The freedom to determine its fiscal policy combined with an independent foreign policy is the backbone of a sovereign state. British refusal to acknowledge the authority of the Liberian settlers to impose duties on trade was the immediate cause of the creation of the Liberian State in 1847. The same disputed authority had been one of the causes of the numerous conflicts the Liberian Government had with tribal people (see Chapter 2). The pledging of certain revenues, the appointment of foreign fiscal advisors and the subsequent limitation of the fiscal policy had constituted violations of Liberia's sovereignty o.n various occasions in the country's history. The decision to grant long-term tax exemptions to foreign investors had led to accusations that this was endangering the sovereignty of the nation by limiting fiscal freedom of future generations. Today, many a "sovereign nation" is confronted with the necessity to make decisions which solve a critical fiscal situation but still respect its sovereignty. One of the African countries which fa.ced and continues to face this dilemma is Liberia. Broadly speaking the revenue of the Liberian Treasury comes from three major sources. First, income generated by the country's trade with other nations; the main source of revenue in this category comes from duties on imports. During the first century of its existence (1847-1951) the country derived most of its income from this source. Secondly, internal revenue which until 1951 was mainly composed of a per capita tax (the Hut Tax) and the Emergency Relief Fund Tax (1). In that year the introduction of income tax legislation and the simultaneous taxing of Firestone's profits changed this picture. Income from international trade plus internal revenue constitute the domestic revenues. Lastly, the Government obtains funds through international assistance. This includes both assistance in "cash" (grants and loans) and in "kind" (missionary activities providing educational and medical services; military assistance; financial and other expert advice, food aid, etc.). This source of income grew in importance during Tubman's long reign over Liberia (1944-1971) and its importance for the financing of the country's development efforts has increased since 1971. The assistance in kind from churches and philantropic organisations will here be excluded from Government's revenue in conformity with international practice and also because of the lack of data inherent to the nature of this assistance. Without proper data it would be difficult to judge a country's fiscal performance. Data collection, however, is a difficult and thankless task in Liberia as in other developing nations with a comparable degree of backwardness.
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VEROFFENTLICHUNGEN AUS DEM UBERSEE-
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i 1 THE OPEN DOOR POLICY OF LIBERIA
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DE.B1CA710N For £IA. Together we s
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Vll CHAPTER 3: (continued) Page The
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ix CHAPTER 9: THE FORESTRY SECTOR P
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Footnotes Annexes Bibliography Inde
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xiii National Iron Ore Company, the
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XV China at the end of the 19th cen
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xvii economically more developed co
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XIX blancs, dans le developpement d
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XXI des Liberiens de toutes les cla
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xxiii DE OPEN DEUR POLITIEK VAN LIB
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XXV deze scheiding tussen kustgebie
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personeel - niet opgewassen was en
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\ I.M.F. i \ INTRUSCO i i j I.T.C.
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xxxi LIST OF FIGURES, MAPS, CHARTS
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TABLES (continued) Page 33 Planned
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XXXV TABLES (continued) 68 Exports
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II century, notably the Open Door P
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IV earth in Liberia. It had been th
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VI Tubman was very well aware of th
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VIII MAP 1
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exporters. It has attracted more th
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XII the more so, since no comprehen
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XIV development of rural Liberia, i
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XVI Firestone's financial contribut
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XVIII officer who had served in Lib
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XX Chapter 11 pays attention to one
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CHAPTER 1 THE PEPPER COAST BEFORE 1
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-3- "Malagueta Coast" or "Pepper Co
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-5- embarrassment towards a (growin
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in honor of the 5th President of th
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Numerous colonists from the U.S.A.
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-11- Figure 1
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-13- The'vicious circle started wit
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-15- the other - to the disadvantag
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-17- Of the colonists notably the A
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-19- The closing of the Door: The E
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-21- Consequently, both tribal peop
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The Roye Administration -23- The te
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-25- He also wanted the general edu
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-27- territory Liberia claimed by E
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m -29- The commission created in 18
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-31- re-activating the first conces
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-33- European. Its expense paid Ly
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-35- Treasury and an unfavourable e
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-37- their salaries. The resulting
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-39- Therefore President Howard of
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j -41- :j % One of the recommendati
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-43- twentieth century the Presiden
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-45- The British and French absence
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-47- In December 1923 the first mis
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-49- and he proposed the constructi
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-51- itself, upon acceptance of the
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-53- equal to 4 per cent of the cou
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-55- between the U.S.A. and Liberia
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-57- Government of Liberia agreed w
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-59- The expansion of the governmen
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-61- Another disagreement arose ove
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] -63- J Notes: ? : :i (1) Fireston
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-65- question had never been adequa
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-67- had varied from $ 8 million to
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-69- In order to protect the new co
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-71- capacity of 55,000 tyres, requ
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J -73j :i quantities of dry rubber
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-75- The charge of 3.44 cents per p
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-77- Finance in the 1970's, but owi
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-79- Planting Agreement was in Akro
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-81- on the basis of competitive pr
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-83- with the 7iresione Plantation
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-85- 1. Organization of a national
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-87- However, before he could reali
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-89- operation of the plantation. T
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j -91- i have taxed the portion of
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-93- in 1947, but also entrusted hi
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-95- company's main interest is no
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-97- poration for the period 1963 -
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-99- TABLE 4 LIBERIA COMPANY'S DIVI
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-101- 6 cents per acre had to be pa
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The Port near Greenville -103- Afte
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-105- rubber. Little is known of th
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-107- the management of the company
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j -109- } S taxes or imposts of any
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-111- The concession agreement, wit
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-113- concluded with other foreign
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-115- which is owned by a political
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-117- owners of the concession. The
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-119- eleven persons were: Vice-Pre
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-121- tain rights in cooperation wi
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-123- It is significant that despit
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-125- scribed above., providing suc
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-127- materials, the rights of the
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-129- the possibilities offered by
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I -131- sion, and sales to affiliat
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-133- concession area of 100,000 ac
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-135- such payments out of profit,"
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-137- tually all of these companies
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-139- The 1898 concession agreement
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-141- Normann, from England, which
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-143- to the English "Providence Mi
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-145- the company had in previous y
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-147- of "Globex Minerals (inc.)",
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-149- the excess acreage (38) does
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-151- old Tchien and Gbaepo Distric
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-153- only two of them referred to
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-155- not provide for a price of go
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-157- Meanwhile, the exploration ac
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-159- The excessively liberal terms
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-161- a concession for gold, diamon
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-163- difficulties which had to be
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-165- of 50? and which was of direc
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-167- The concessionaire became exe
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-169- These statements of the two s
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-171- Note that until i960 L.M.C.'s
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-173- salaries to ex-patriate perso
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-175- the - increased - capacity of
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-177- '••:] Sales Agreement bet
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-179- On January 3, 1963 a Memorand
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-181- L.M.C. would have acted in co
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-183- area described as the Bea Mou
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-185- Agreement signed by represent
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-187- geologists, economists and la
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CHRONOLOGY SUMMARIZED HISTORY OF L.
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-191- N.I.O.C. dated January 1, 196
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Year 1962 1963 1964 1965 1966 1967
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-195- for further details of the 19
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-197- soon demonstrated by the call
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-199- of 3.2 million long tons in a
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-201- TABLE 10 FINANCIAL OBLIGATION
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-203- achievements were made in spi
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-205- After the change of the name
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-207- to concentrate on the new fin
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-209- one steel factory, in the cou
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-211- The Liberian Government owns
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-213- 1952, legal ownership of abou
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-215- Th is second part of the conc
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-217- one of its sixteen Swedish su
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-219- For these services G.I.M. is
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-221- Prior to 1974 fifty per cent
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-223- depreciation of (capital) equ
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-225- of the revision of the 1960 M
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i -227- 3 prescribing such a review
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-229- But now, having accepted bein
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-231- As a result of this review in
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-233- TABLE 14 FINANCIAL COSTS OF C
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DELIMCO/B.M.C. -235- Long-standing
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-237- equity participation (unlike
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Year 1965 1966 1967 1968 1969 1970
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-241- these funds to B.M.C. in the
Page 301 and 302: -243- negotiations which were held
Page 303 and 304: -245- S ources: - "Technical Inform
Page 305 and 306: -247- Prices of sales to affiliated
Page 307 and 308: S ource: -249- TABLE 17 INVESTMENTS
Page 309 and 310: -251- due time a mining concession
Page 311 and 312: -253- The 1967 concession agreement
Page 313 and 314: -255- Changes of the concession agr
Page 315 and 316: -257- Some reasons why the Wologisi
Page 317 and 318: -259- CHAPTER 9 THE FORESTRY SECTOR
Page 319 and 320: -261- Surveys of Liberia's Forest P
Page 321 and 322: -263- (see below) repealed the port
Page 323 and 324: -265- were authorized to issue perm
Page 325 and 326: -267- TABLE 18 LIBERIA'S NATIONAL F
Page 327 and 328: -269- The Forestry Development Auth
Page 329 and 330: -271- TABLE 19 TIMBER CONCESSIONS G
Page 331 and 332: -273- TABLE 20 PRODUCTION OF TIMBER
Page 333 and 334: -275- Souree: - Annual Report, Depa
Page 335 and 336: -277- Attempts To Establish A Natio
Page 337 and 338: YEAR 1967 1968 1969 1970 1971 1972
Page 339 and 340: -281- As a consequence the export v
Page 341 and 342: -283- December 31, 1977 Liberia lev
Page 343 and 344: Botanical Name Category 1 Ent, cyli
Page 345 and 346: -287- these 33 companies; year of s
Page 347 and 348: -289- were also the principal share
Page 349 and 350: -291- alleged corruption involving
Page 351: -293- It is important to note here
Page 355 and 356: -297- expenditures in the period pr
Page 357 and 358: -299- In these years the debt servi
Page 359 and 360: -301- TABLE 28-A COMPARATIVE STATEM
Page 361 and 362: -303- the second half of the 1930's
Page 363 and 364: -305- first to benefit from this U.
Page 365 and 366: M -307- •' \ •:i TABLE 30 fSS]
Page 367 and 368: -309- Government Revenues 1941 - 19
Page 369 and 370: TABLE 31-B MAIN SOURCES OF DOMESTIC
Page 371 and 372: -313- situation renders the Treasur
Page 373 and 374: -315- The trend of public expenditu
Page 375 and 376: -317- •• \ During the 1950 's t
Page 377 and 378: -319- $ 117 million were due for re
Page 379 and 380: -321- In 1943 Liberia and the U.S.A
Page 381 and 382: Sector -323- TABLE 33 PLANNED EXPEN
Page 383 and 384: Type of Assistance I. Economic Asst
Page 385 and 386: THE 1963 - 1978 PERIOD Revenue Perf
Page 387 and 388: Year 1963 1964 1965 1966 1967 1968
Page 389 and 390: Year 1963 1964 1965 1966 1967 1968
Page 391 and 392: 1963 1964 1965 1966 1967 1968 1969
Page 393 and 394: -335- of the Ministry of Finance wh
Page 395 and 396: -337- Development Planning and Expe
Page 397 and 398: 1.1 Agriculture 2.1 Rural Roads 2.2
Page 399 and 400: -341- The Plan which was approved b
Page 401 and 402: -343- "Uhile the performance of the
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-345- TABLE 43 PLANNED DEVELOPMENT
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-347- The unenvisaged expenditures
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-349- Under the revised Plan total
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1964 1965 1966 1967 1968 1969 1970
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Note: (1) Preliminary figures. Auth
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-355- Bushrod Island; a new bridge
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-357- TABLE 51 U.H. ASSISTANCE TO L
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-359- happened in a haphazard way.
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-361- The (investment) activities o
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-363- '••] the most organized a
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-365- exploited this situation by s
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-367- all offered staff positions o
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-369- allied to the Tolbert clan bu
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-371- history, secrets and traditio
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-373- At the time of the arrival of
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-375- The very few books which inde
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GOVERNMENT. MISSION. PRIVATE. TRIBA
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-379- TABLE 54 1962 POPULATION AND
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-381- about 19,000 were between 5 a
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-383- Liberia College in 1862. Elem
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-385- mark of 70$. This shocking an
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-387- The 1978 National Education S
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-389- TABLE 58-B SCHOOL ATTENDING P
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-391- TABLE 60 A. NUMBER OF STUDENT
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-393- It seems likely that the rela
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-395- Author's research based on th
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CHAPTER 12 -397- TRANSPORTATION AND
Page 457 and 458:
-399- It thus facilitated the immed
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-401- how many people were employed
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GEOGRAPHICAL DISTRIBUTION OF COUNTY
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-405- in Liberia was owned, finance
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-407- TABLE 65 ABSOLUTE AND RELATIV
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-409- were politically well covered
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-411- railroad which, with the exce
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-413- the concession sector (LAMCO)
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-415- 5 seater twin-engined Cessna
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-417- Besides, this segment of the
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-419- The telecommunication relay s
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-421- with Germany and hence affect
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-423- :: The 1960 - 1979 Period j F
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-425- with Sierra Leone is less tha
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-427- alarming (see Chapter 10), th
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-429- structural changes and the de
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-431- from roughly one third in 197
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-433- by Fouad Khalifa, a Lebanese,
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-435- The Government indebted itsel
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-437- a very large part of G.D.P. i
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-439- to the distribution of power,
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-441- heard. As early as 1830, but
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-U3- was wrongly thought in those d
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-445- 1962. In the 1950's the triba
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-447- Tubman Estate (66). Interesti
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-449- National Legislature, This de
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-451- The creation of state owned c
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-453- respect to foreign concession
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-455- II. The Government of Liberia
Page 515 and 516:
-457- Most notable among these clau
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-459- ADDENDUM On April 12, 1980, a
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ISBN 3-88299-040-6 ISSN 0344-4317
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