By: William F. Ponder, Jr. |
Paper developed from my presentation notes as a panelist at the Globe Afrique forum held on Saturday, February 24th, 2018 and from additional research
Liberia is one of the world’s poorest economies. About 60 percent of the population of Liberia lives below the poverty line. Latest available Human Development Index (HDI) rates Liberia at 0.427 whereas Norway, which leads the world is rated at 0.949. According to the Atlas method in (current US$).
Liberia’s GNI per capita is recorded at $370 annually. (World Development Report, Liberia At A Glance – Economic Growth Data, 2015 -2017)
The Liberian economy like those of many developing countries in Sub-Sahara Africa is dualistic in nature. It is characterized by a formal and an informal economy. Beyond this dichotomy, the Liberian economy is largely controlled by foreigners.
Multinational companies and foreign wholesale and retail businesses are the major importers and exporters. Consequently, they contribute the largest share of taxes to the government. The informal economy comprises of a mix of rudimentary economic activities and interactions. They include menial labor and other subsistent forms of livelihood including farming and petty trading.
These economic activities are neither taxed nor regulated by the government. For the most part, activities in the informal economy are not included in the Gross National Product (GDP) or the Gross Domestic Product (GDP)
Source: Globe Afrique Media Online