Liberia’s Prospects for Development: Private Sector as an Engine for Opportunity
June 22,
President Sirleaf has assigned me to work with the National Investment Commission (NIC). The commission was established in 1979 with the purpose of promoting and coordinating all investment activities in Liberia. During my time with the commission I will be a member of the team that is developing a new strategy for attracting foreign investment. In addition, the Small and Medium Enterprise (SME) Department of the NIC recently established an Enterprise Development Fund which aims to stimulate the growth of local businesses. I will be working with this department in order to develop a strategic plan for increasing the size of the fund and identifying how it can be best used to have the maximum impact on local business development.
As you can imagine, one of the consequences of the civil war has been severe economic degradation. Currently, more than 80% of the population is unemployed. Local business ventures are dominated by the elite (particularly non-Liberians), and foreign investment has been limited due to the disincentives of violence and poor infrastructure. For many Liberians daily survival is extremely difficult. While sources of income are scarce, the cost of living is high. Most goods, even staples such as rice, are imported. To give you an idea of the severity of the situation, the average government salary is about USD $30 a month (USD$1 per day). A bag of rice (which can last the average family about 2-3 weeks) on average costs USD $20. While formal employment provides security, even the majority of “employed” Liberians do not earn a living wage. Consequently most people depend on working several jobs in the informal market, and/or receiving monthly wire transfers from family living abroad.
Honestly, when I step away from my meetings here at the commission and I consider the daily reality of the average Liberian, the economic predicament of the nation seems completely overwhelming. That being said, the level of resources, expertise, and commitment that is dedicated to the recovery of this country leaves me with little doubt that appropriate and effective strategies will be taken. With the right strategy, entrepreneurs and investors will be able to grow successful businesses that provide employment at livable wages, allowing families to send their children to school, and providing the foundation for the generations to come to have the means to live productive and healthy lives. The simultaneous complexity and simplicity of the situation keeps me up at nights. It is exciting to imagine the possibilities.
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