The_Open_Door_deel1

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The Government indebted itself heavily to absorb the financial
losses of the public corporations and to provide the badly
needed capital for its functioning and for its investments
programmes. The I 30 million Euro-eurrency loan which the
Government contracted at the end of 1976 only served the financial
needs of the public corporations (see Chapter 10).
Between 1977 and 1978 about $ 22 million was transferred to
them from budgetary sources of which I 19.6 million represented
increases in equity capital and $ 2.4 million served to
absorb operational losses. During the following year (FY 1978/
79) another $ 54 million was transferred. Most of this amount
had been obtained from loans from foreign governments and
institutions, $ 41.8 million, and $ 12.2 million was contributed
through local budgetary appropriation (24).
The Liberian monetary economy has been under the control of
foreign companies since the arrival of Firestone in 1926.
Hence, it is not surprising to note that the setting up of
government institutions kept pace, more or less, with the
growth in the number of foreign owned companies operating in
the country, the increase of their activities, and, in general,
the growth of the national economy which was closely related
to it.
At the time of arrival of Firestone in the country there existed
only six ministries, in those days called Departments. They
were the Departments of State, Treasury and War, all three
created in 1847. The Department of the Interior had been officially
created in 1869 following Anderson's trip to Musardu
(see Chapter 2) though it was not until 1892 that this department
was (somewhat) organised. The Department of Justice,
headed by the Attorney-General, was created in 1883. In the
present century, in 1912, the Department of Public Instruction
was created (see Chapter ll). Around 1930 less then 300 civil
servants were employed by the Government (see Chapter 3).
A large number of government institutions, even ministries,
was created in response to the need for them which in turn was
caused by the presence and operations of foreign investors and
the growing awareness by Liberians of the necessity to supervise
- to say the least - their activities. In many cases
though, there was a considerable time lag between the start of
full-scale activities of foreign owned concessions and the
Government's reaction to it. Although the appropriate functioning
of many of these institutions leave much to be desired, it
can be concluded that this institution building constitutes
one of the most important effects of the Open Door Policy.
The examples to be mentioned in this context are numerous, and
among the most important are:
- In 1912, the Bureau of Labour, within the Department of the
Interior, was created. It was revived after the arrival of
Firestone in 1926 which was necessitated by the need to
organise and administer the recruitment of labourers for the
rubber plantation which the Liberian Government had under-