LIBERIA

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Liberia, officially the Republic of Liberia, is a country on the West African coast. It is bordered by Sierra Leone to its northwest, Guinea to its north, Ivory Coast to its east, and the Atlantic Ocean to its south and southwest. It has a population of around five and one-half million and covers an area of 43,000 square miles (111,369 km2). The country's official language is English; however, over 20 indigenous languages are spoken, reflecting the country's ethnic and cultural diversity. The capital and largest city is Monrovia.

Liberia began in the early 19th century as a project of the American Colonization Society (ACS), which believed black people would face better chances for freedom and prosperity in Africa than in the United States. Between 1822 and the outbreak of the American Civil War in 1861, more than 15,000 freed and free-born African Americans, along with 3,198 Afro-Caribbeans, relocated to Liberia. Gradually developing an Americo-Liberian identity, the settlers carried their culture and tradition with them. Liberia declared independence on July 26, 1847, which the U.S. did not recognize until February 5, 1862.

Liberia was the first African republic to proclaim its independence and is Africa's first and oldest modern republic. Along with Ethiopia, it was one of the two African countries to maintain its sovereignty and independence during the European colonial "Scramble for Africa". During World War II, Liberia supported the United States war effort against Germany, and in turn received considerable American investment in infrastructure, which aided the country's wealth and development. President William Tubman encouraged economic and political changes that heightened the country's prosperity and international profile; Liberia was a founding member of the League of Nations, United Nations, and the Organisation of African Unity.

The Americo-Liberian settlers did not relate well to the indigenous peoples they encountered. Colonial settlements were raided by the Kru and Grebo from their inland chiefdoms. Americo-Liberians formed into a small elite that held disproportionate political power; indigenous Africans were excluded from birthright citizenship in their own land until 1904.

In 1980, political tensions from the rule of William R. Tolbert resulted in a military coup, marking the end of Americo-Liberian rule and the seizure of power of Liberia's first indigenous leader, Samuel Doe. Establishing a dictatorial regime, Doe was assassinated in 1990 in the context of the First Liberian Civil War which ran from 1989 until 1997 with the election of rebel leader Charles Taylor as president. In 1998, the Second Liberian Civil War erupted against his own dictatorship, and Taylor was overthrown by the end of the war in 2003. The two wars resulted in the deaths of 250,000 people (about 8% of the population) and the displacement of many more, with Liberia's economy shrinking by 90%. A peace agreement in 2003 led to democratic elections in 2005. The country has remained relatively stable since then. 

POPULATION

As of the 2017 national census, Liberia was home to 4,694,608 people. Of those, 1,118,241 lived in Montserrado County, the most populous county in the country and home to the capital of Monrovia. The Greater Monrovia District has 970,824 residents. Nimba County is the next most populous county, with 462,026 residents. As revealed in the 2008 census, Monrovia is more than four times more populous than all the county capitals combined.

Prior to the 2008 census, the last census had been taken in 1984 and listed the country's population as 2,101,628. The population of Liberia was 1,016,443 in 1962 and increased to 1,503,368 in 1974. As of 2006, Liberia had the highest population growth rate in the world (4.50% per annum). In 2010 some 43.5% of Liberians were below the age of 15.

ENERGY

Public electricity services are provided solely by the state-owned Liberia Electricity Corporation, which operates a small grid almost exclusively in the Greater Monrovia District. The vast majority of electric energy services is provided by small, privately owned generators. At $0.54 per kWh, the cost of electricity in Liberia is among the highest in the world. Total capacity in 2013 was 20 MW, a sharp decline from a peak of 191 MW in 1989 before the wars.

The repair and expansion of the Mount Coffee Hydropower Project, with a maximum capacity of 80 MW, was completed in 2018. Construction of three new heavy fuel oil power plants is expected to boost electrical capacity by 38 MW. In 2013, Liberia began importing power from neighboring Ivory Coast and Guinea through the West African Power Pool.

Liberia has begun exploration for offshore oil; unproven oil reserves may be in excess of one billion barrels. The government divided its offshore waters into 17 blocks and began auctioning off exploration licenses for the blocks in 2004, with further auctions in 2007 and 2009. An additional 13 ultra-deep offshore blocks were demarcated in 2011 and planned for auction. Among the companies to have won licenses are Repsol YPF, Chevron Corporation, and Woodside Petroleum.

AGRICULTURE

Agriculture in Liberia is a major sector of the country's economy worth 38.8% of GDP, employing more than 70% of the population and providing a valuable export for one of the world's least developed countries (as defined by the UN). Liberia has a climate favourable to farming, vast forests, and an abundance of water, yet low yields mean that over half of foodstuffs are imported, with net agricultural trade at -$73.12 million in 2010. This was dismissed as a "misconception" by Liberia's Minister of Agriculture.

The major crops are natural rubber, rice, cassava, bananas and palm oil. Timber is also a major export at $100 million annually, although much of this is the product of unsustainable habitat destruction, with Asian corporations criticized for their role. Although agricultural activity occurs in most rural locations, it is particularly concentrated in coastal plains (subsistence crops) and tropical forest (cash crops). The sector is very important for women as they are widely employed in it in comparison to the economy as a whole.

ECONOMICS

Following a peak in growth in 1979, the Liberian economy began a steady decline due to economic mismanagement after the 1980 coup. This decline was accelerated by the outbreak of civil war in 1989; GDP was reduced by an estimated 90% between 1989 and 1995, one of the fastest declines in modern history. Upon the end of the war in 2003, GDP growth began to accelerate, reaching 9.4% in 2007. The global financial crisis slowed GDP growth to 4.6% in 2009, though a strengthening agricultural sector led by rubber and timber exports increased growth to 5.1% in 2010 and an expected 7.3% in 2011, making the economy one of the 20 fastest-growing in the world.

Current impediments to growth include a small domestic market, lack of adequate infrastructure, high transportation costs, poor trade links with neighboring countries, and the high dollarization of the economy. Liberia used the United States dollar as its currency from 1943 until 1982 and continues to use the U.S. dollar alongside the Liberian dollar.

Following a decrease in inflation beginning in 2003, inflation spiked in 2008 as a result of worldwide food and energy crises, reaching 17.5% before declining to 7.4% in 2009. Liberia's external debt was estimated in 2006 at approximately $4.5 billion, 800% of GDP. As a result of bilateral, multilateral and commercial debt relief from 2007 to 2010, the country's external debt fell to $222.9 million by 2011.

While official commodity exports declined during the 1990s as many investors fled the civil war, Liberia's wartime economy featured the exploitation of the region's diamond wealth. The country acted as a major trader in Sierra Leonian blood diamonds, exporting over US$300 million (~$516 million in 2023) in diamonds in 1999. This led to a United Nations ban on Liberian diamond exports in 2001, which was lifted in 2007 following Liberia's accession to the Kimberley Process Certification Scheme.

In 2003, additional UN sanctions were placed on Liberian timber exports, which had risen from US$5 million in 1997 to over US$100 million in 2002 and were believed to be funding rebels in Sierra Leone. These sanctions were lifted in 2006. Due in large part to foreign aid and investment inflow following the end of the war, Liberia maintains a large account deficit, which peaked at nearly 60% in 2008. Liberia gained observer status with the World Trade Organization in 2010 and became an official member in 2016.

Liberia has the highest ratio of foreign direct investment to GDP in the world, with US$16 billion (~$23.3 billion in 2023) in investment since 2006. Following Sirleaf's inauguration in 2006, Liberia signed several multi-billion-dollar concession agreements in the iron ore and palm oil industries with numerous multinational corporations, including ArcelorMittal, BHP and Sime Darby. Palm oil companies like Sime Darby (Malaysia) and Golden Veroleum (USA) have been accused of destroying livelihoods and displacing local communities, enabled by government concessions. Since 1926 Firestone has operated the world's largest rubber plantation in Harbel, Margibi County. As of 2015, it had more than 8,000 mostly Liberian employees, making it the country's largest private employer.

FLAG OF CONVENIENCE

Due to its status as a flag of convenience, Liberia has the second-largest maritime registry in the world behind Panama. It has 3,500 vessels registered under its flag, accounting for 11% of ships worldwide.

Map of West Africa

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External links

• The UN office for West Africa

• www.westafricareview.com/

• "Skeletons Discovered: First African Slaves in New World"

• West Africa by Region and Country – African Studies at Columbia University

• ouestaf.com – Online source for news and current affairs in west Africa.

• Loccidental – The News reference for West Africa.

• West Africa Review – An e-journal on West Africa research and scholarship.

• A website dedicated to West African djembe drumming

• Africa's Failed Economic History - Yale Economic Review

• Lending Africa an Invisible Hand - Yale Economic Review

• BBC: Africa's Economy

• Africa Economic Analysis

• World Economic Forum - Africa

• African Development Bank Group

• IMF World Economic Outlook (WEO) -- September 2003 -- Public Debt in Emerging Markets

• Why is Africa so Poor?

• Language and Africa

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