Virtual Kollage: The problems of industrialization in Liberia

Posted by / Thursday, 5 January 2017 / No comments

The problems of industrialization in Liberia



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.

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