Posted by Chester Morton / Thursday 5 January 2017 / No comments
The problems of industrialization in Liberia
Definition of industrialization
Industrialization can be defined as the system by which an
economy which hitherto produced basic agricultural goods, now manufactures
those same goods with the use of machines instead of manual labour and assembly
plants instead of skilled artisans.
PROBLEMS OF
INDUSTRIALIZATION
Skilled labour
One of the problems confronting industrialization in Liberia
is the absence of enough skilled labour to supervise the complex industrial
machines that are used in the manufacturing sector. There are few well trained
artisans, engineers and the like to operate the sophisticated industrial machines.
The Liberian civil war
The protracted civil war of the late 80s and early 90s has
caused the country a lot of damage. Specifically, the war did not allow for the
acquisition of relevant skills. There is a generation of Liberians who, because
of the war, could not get educated or trained so cannot help in the
industrialization of the country.
Demand for industrial goods in Liberia
Following from the previous point is the fact that in Liberia,
most people are poor and therefore cannot afford the manufactured goods even if
they were available. Most factories therefore would produce below their
installed capacity. Then little profits would be made and ploughing that back
into the business would be a problem.
Supply of raw materials
Another basic problem facing industrialization in Liberia is
the low supply of raw materials to feed the industries. In some cases, the
industrial plants are there but because there are not enough raw materials to
feed them, the machines just stay idle at the mercy of the weather till they
get damaged or at best, do not run at full installed capacity.
Infrastructural facilities
There is also the problem of lack of enough infrastructural
facilities such us good roads, railways, constant supply of water and
electricity etc. The industrial factories need electricity to run 24 hours a
day but that is not readily available in Liberia. The factories need a good
road network to be able to transport their raw materials and finished goods
efficiently. However, in Liberia, this is not so.
Capital to invest
Another problem is the absence of capital to make the initial
investment and to re-inject into the business in order to expand. The banks may
be willing to help but their interest rates are over the roof so entrepreneurs
are not attracted to that option. Even where they are, some are not able to
provide the collateral needed by the banks. Liberian entrepreneurs are not able
to access the facility or the loan as a result.
SAMPLE QUESTIONS
1. What are some of the problems confronting
industrialization in Liberia?
2. Highlight six problems of industrialization in your
country.
3. a. What is industrialization?
b. Give five reasons
why Liberia is unable to industrialize.
