Association for Public Policy Analysis & Management

Development is the sustainable availability of economic opportunities for everyone in society. I chose to define development in such manner because I want my readers to grasp the context of this paper from the very beginning. The paper provides a keen perspective on a development strategy that has not worked for more than a century. The Liberian development strategy is an economic phenomenon that relies heavily on the export of primary commodities.  I would like to firstly, provide brief but essential information about the country called, Liberia. Liberia was founded in 1822 by a group of freed American slaves who were urged to settle in Liberia by the American philanthropic organization-American Colonization Society (ACS). When these slaves arrived in Liberia, many verifiable historical accounts indicate that they settled along the coast. It is worth noting, however, that there were indigenous people living in the hinterland of Liberia when the freed slaves arrived in 1822. Sadly, there was no sense of unity between these two groups for more than a century. This is, in fact, a defining reason why the Liberian development strategy was coined into an objective that cannot reduce inequality.  

Therefore, I will argue that the development strategy of Liberia has been responsible for widening inequality in the country. The strategy is based on an economy that is dependent on the extraction and exportation of natural resources and agricultural cash crops. This sort of development strategy does not only exacerbate poverty but actually increase intergenerational inequality by concentrating economic activities in sectors of lower population density.  In Liberia, the portion of the population in areas where natural resources or cash crops are processed into primary products for export is better off in terms of educational and employment opportunities than the one in areas of subsistence agricultural activities (for food crops). The gap between the rich and the poor has been widening for decades. Food crop farmers have lower income than their cash crop counterparts. The lack of physical and economic bridges also account for the widening inequality gap between rural and urban dwellers.

 In order to score significant points in reducing within country inequality, Liberia needs to increase the production of food crops. This will lead to an increase in the income of rural food crop farmers. The income of those rural farmers will further rise if they are able to freely access both domestic and international markets. This is where the country needs to invest hugely in economic infrastructure especially transportation. Connecting rural farmers to markets is quintessential to bridging the inequality gap in Liberia. It will lead to balanced political and socio-economic discussions on development. With adequate linkages, Liberia can also develop into a private sector driven economy with inclusive political and economic institutions. This will then lead to the creation of more economic opportunities for other members of the society. The gap between the poor and the fairly rich will further tighten.