The_Open_Door_deel1

-451-
The creation of state owned companies, as such, will not provide
a solution to Liberia's problems. Any decision in this respect
taken by the Government of Liberia must include provisions to reduce
the large number of malperforming public corporations in
order to stop the unwise spending of public funds. Funds will
thus be freed to invest in any new company and manpower made
available to operate and administer such a company. In any case
such a reorganisation of the public sector is highly recommended.
Above all, what is needed is sound management of companies which
have clearly defined objectives and which protect the interests
of the Liberian people.
Policy Recommendations
To improve the future impact of foreign investments on the development
of the Liberian economy and society four basic changes in
the handling of concession affairs by the Government of Liberia
are required:
(1) the setting up of an efficient administration with
proper files;
(2) the training of staff personnel dealing with the
concession sector and all aspects related to it;
(3) a clear formulation of Government's principles and
objectives as well as the methods to be used to
realise them;
(4) the eradication of corruption through the legal
prosecution of those involved in corruption regardless
of class, tribal background, family status,
race or nationality.
Moreover, it should be realised that above all it is the political
will which determines the effectiveness of the policy towards
foreign investors.
The four prerequisites for any improvement, mentioned above, are
highly interrelated. To implement the first one, the second should
be realised also. Furthermore, both parties involved, Government
officials/employees and the foreign business community, can only
work efficiently when Government policies are clearly formulateds
making it impossible to interpret them in more than one way and
when they cannot be tampered with, neither by Government officials
nor by investors,
This will also require less power of the President who actually
may change or adjust the concession policy at will, while simultaneously
reinforcing the legislative branch of government, the
National Legislature. In this body, conflicts of interest should
no longer be allowed to exist. Thus, legislators should not be
allowed to represent any foreign company or provide legal advice
or assistance to such company.
The formulation of the basic principles of the general Government
policy with respect to the concession sector, of the objectives to
be achieved and of the methods to be used, should be laid down in
a "Plan of Action".