Issue 2

Don’t Fight the Poor
Why the informal sector is the best way out of poverty for the lower class. | By Menipakei Dumoe

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A look at what's in this Issue:

Don’t ruin it!

As a developing country, Liberia, like many other poor countries, has a large significant informal sector. The official employment figures state that only 15% percent of our entire population is employed by the formal sector. For many policy makers, this is a serious problem. According to them, the informal sector is disorganized, under or uneducated, unregulated, underproductive and labor is mostly unprotected.

This view persuades decision makers that the informal sector must be reduced and controlled! This conclusion leads its proponents to suggest and implement policies that discourage entry into this sector of the economy. To do so, these strategies increase the disadvantages of being in the informal sector, in hopes of pushing people to move into the formal sector where they have better advantages but this strategy has failed horribly. Instead of the informal sector shifting into an expanding and prosperous formal sector, we are watching our population in the informal sector being pushed out of economic activity entirely.

Soaring to New Horizons

New Management, new equipment and new hope for Liberia’s International Airport
By Ekena Wesley and Seanan Denizot

On May 22, 2009, Delta Airlines, one of America’s leading carriers, confirmed rumors that they would be offering direct flights from JFK International Airport in New York City to RIA commencing in June, ‘09. The excitement of Delta’s arrival was felt across the country. Easy travel to and from the U.S. could open the skies of Liberia to whole new possibilities of businesses; not to mention the likelihood of increased competition affecting the outrageous airfare prices. But on June 2, 2009, hopes were dashed when TSA (the American Transportation Security Administration) announced RIA did not meet their security requirements. The disappointment hit Delta the hardest, who reportedly had flight schedules planned, aircrafts ready, and even a first round of reservations booked.

But those hopes have been raised once again with the arrival of Lockheed Martin Global Services to RIA. Lockheed Martin has been in Liberia since 1995 through its subsidiary Pacific Architects and Engineers (PAE). On August 11, 2009, Lockheed Martin signed a Memorandum of Understanding (MOU) with the Liberian Government to take over the management of RIA for an initial six month period - with the goal of an extended relationship in the future.

Weathering the Storm

A look at major challenges facing Liberia’s prominent port industry
By Lewis K. Glay

When an import-based economy is challenged by severe bureaucracy everyone suffers. Liberia is not exporting or manufacturing products to command the influx of foreign exchange. The country relies heavily on importation of goods and services to perk up its ailing economy. Despite this, importers face a magnitude of unnecessary and shady barriers when entering goods into the country.

The chaos involved in getting appropriate documents to clear and forward one’s goods from the port remains a nightmare for all importers. An exaggerated and lengthy process of inspection conducted by the single clearing house in the country has allowed for some of the worst bribery and corruption stories in Liberia. Combined with an extremely high tax rate, importers have become so deterred from Liberia’s port that they have even turned to shipping their goods through other countries. The government has been striving to change the ‘spoilt system’, but this will take enormous time and commitment.

Creating the Right Climate for Liberian Business | The Emanuel Shaw Interview

In this exclusive interview with Business Liberia’s Editor, Mr. Emanuel Shaw a Liberian business tycoon, an influential politician, and dedicated patriot shares his story, his opinion, and his hopes for the future.

SD: From what you have told me so far, it sounds like you have a history of shaking things up in the public sector; what do you think of the government’s current involvement in the private sector?

ES: I believe that it is the government’s responsibility to create an environment conducive to private sector growth and development. This includes good and reliable infrastructure; strong laws that respect and uphold the sanctity of contracts; a justice system that provides speedy and fair redress; a regulatory framework that is practical and effective, including a tax regime that is business-friendly; a sound banking system; and the provision of suitable incentives to encourage and stimulate private sector investment. On all of these counts, this and previous Liberian governments (including those in which I served) have yet to fully deliver. Oh yes, there is no lack of good intentions, and there are many good Liberians who are working very hard to achieve these goals.....but attempt should not be mistaken for achievement. And, to be fair, there have been some commendable reforms and improvements in this regard of late. However, I hold the view that the entire process of creating a business-friendly environment for the private sector can at best be considered still a work-in-progress which, at this moment in time, falls far short of producing a coordinated, holistic framework within which the private sector can thrive.

Strategic Sectors:

  • Housing
  • Imports and Trade
  • Banking
  • Communication
  • Tourism
  • Petroleum

Interviews with:

  • Top CEO Morenike Adepoju of ECO Bank
  • The New Boss Francois Joubert of Lonestar
  • The Innovator Mai Bright Urey of Wulki Farms

The Economy

  • A look at the Liberian Economy
  • Economic Indicators