The_Open_Door_deel1

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An example of a basic principle underlying the policy towards
foreign investments is the respect of the existing rights of the
people of Liberia. These rights had been violated too often, particularly
during the Tubman Administration. Therefore, acceptance
of this principle should be accompanied immediately by measures
to restore the past infringement upon these rights if such is
possible.
One of the objectives which has high priority and which should be
included in the Plan of Action is the acquisition by Liberians of
more skill and experience in the administration and exploitation
of the country's natural resources and, more generally, the efficient
use of its economic potential. Indeed, the realisation of
this goal represents a situation which is long overdue. After
more than fifty years of large scale commercial rubber cultivation
in their country, Liberians, in general, still have a modest
level of experience in this respect. Research to improve the
quality of the rubber produced, to test new varieties or to introduce
new production techniques is an exclusive affair of the
foreign investors. Related to this, productivity on rubber farms
and plantations owned by Liberians is substantially lower than
that on the plantations of the foreign concessionaires. Processing
of rubber by Liberians, one can say, is virtually non-existent.
The Liberian Rubber Processing Corporation (L.R.P.C.) and
LIRAMCO form the only examples of rubber processing industries
which are owned by Liberians (the Government)» The former was
only created in 1975 whereas the latter succeeded the West African
Shoe and Rubber Industries Ltd., which had not proved successful,
in 1976,
In the area of iron ore mining the picture is not very different.
Although the first foreign mining engineers and managers of Liberia's
first iron ore mining company entered the country more
than a generation ago, Liberians, today, in general still cannot
be considered to have reached a level which permits them to
operate and manage a large scale iron ore mining venture. Concerning
the local processing of .the' raw material, the Economic
Commission for Africa of the United Nations Organisation recommended,
as early as 1964, that a steel plant be established in
Buchanan which would serve the whole of the West African region.
In spite of its efforts, the Liberian Government has never been
able to find investors who were interested in financing this
project.
Without a consistently applied long-term policy which aims at
the development of a timber processing industry, the forestry
sector may share this fate. The economic consequences are the
more important since* of these two products, iron ore is a nonrenewable
product whereas the renewal of tropical timber, though
possible, will take as many as 40 years.
In the presentation of the following recommendations and suggestions
all of which are based on the present study, the author
has intentionally avoided going into detail by referring to individual
concession agreements unless the general policy with