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Liberian Studies Journal VOLUME XV 1990 NUMBER 1 LIBERIAN STUDIES JOURNAL 1 10 °W 8 °W LIBERIA -8°N 8°N- MONSERRADO GRAND BASSA MARGIBI -6 °N RIVER 1 6 °N- MILES MARYLAND Geography Department 10 °W University of Pittsburgh at Johnstown 1 8oW Published by THE LIBERIAN STUDIES ASSOCIATION, INC. PDF compression, OCR, web optimization using a watermarked evaluation copy of CVISION PDFCompressor Cover map: compiled by William Kory, cartography work by Jodie Molnar; Geography Department, University of Pittsburgh at Johnstown. PDF compression, OCR, web optimization using a watermarked evaluation copy of CVISION PDFCompressor VOLUME XV 1990 NUMBER 1 LIBERIAN STUDIES JOURNAL Editor D. Elwood Dunn The University of the South Associate Editor Similih M. Cordor Kennesaw College Book Review Editor Alfred B. Konuwa Butte College EDITORIAL ADVISORY BOARD Bertha B. Azango Lawrence B. Breitborde University of Liberia Beloit College Christopher Clapham Warren L. d'Azevedo Lancaster University University of Nevada Reno Henrique F. Tokpa Thomas E. Hayden Cuttington University College Africa Faith and Justice Network Svend E. Holsoe J. Gus Liebenow University of Delaware Indiana University Corann Okorodudu Glassboro State College Edited at the Department of Political Science, The University of the South PDF compression, OCR, web optimization using a watermarked evaluation copy of CVISION PDFCompressor CONTENTS THE UNITED STATES- LIBERIA OPERATIONAL EXPERTS PROJECT 1 by Frank B. Kimble FOUNDING THE LIBERIA ACTION PARTY ..................................... 13 by Byron Tarr FATIMA MASSAQUOI FAHNBULLEH (1912-1978) PIONEER WOMAN EDUCATOR ............................................................................ 48 by Raymond J. Smyke SOARING ABOVE THE CLOUD OF MEDIOCRITY: THE CHALLENGES OF THE LIBERIAN PRESS IN THE NINETIES ......................................... 74 by C. William Allen PEACE CORPS SERVICE IN LIBERIA, 1%5 -1966: REFLECTIONS OF AN AFRICAN-AMERICAN VOLUNTEER 85 by Carl E. Meacham LINGUISTICS AND LIBERIAN LANGUAGES IN THE 1970'S AND 1980'S: A BIBLIOGRAPHY ......................................... ............................... 108 by John Victor Singler BOOK REVIEWS Kappel, Robert and Werner Korte. A Bibliography of Books and Articles on Liberia as edited in German Speaking Countries Since 1960 ..................... 127 by Arthur J. Knoll Milligan, Ralph T., BOLAHUN ...................................................... 129 by Marion G. Beasley & W. B. Rogers Beasley Moran, Mary H. Civilized Women: Gender and Prestige in Southeastern Liberia 132 by Konia T. Kollehlon RECENT PUBLICATIONS AND THESES ............ ............................... 136 NEWS AND NOTES ................................................. ............................... 139 DOCUMENT ............................... 142 CONTRIBUTORS TO THIS ISSUE ......................... ............................... 162 A referee journal that emphasizes the social sciences and humanities, the LIBERIAN STUDIES JOURNAL is a semiannual publication devoted to studies of Africa's oldest republic. The annual subscription rate is $25.00, $12.00 for students and $40.00 for institutions, and includes membership in the Liberian Studies Association, Inc. All manuscripts and related matters should be addressed to The Editor, Liberian Studies Journal, Department of Political Science, The University of the South, Sewanee, TN 37375. Subscriptions and other business matters should be directed to The Executive Secretary, Liberian Studies Association, P.O. Box 671 Bloomington, Illinois 61702-0671. The views expressed herein are those of the individual contributors and do not necessar- ily reflect those of the editor or the Liberian Studies Association, Inc. Copyright 1990 by the Liberian Studies Association, Inc. ISSN 00241989 PDF compression, OCR, web optimization using a watermarked evaluation copy of CVISION PDFCompressor The United States -Liberia Operational Experts Project Frank B. Kimble The Origin In January, 1987, Secretary of State George Shultz visited Liberia for a few hours. Economic and financial concerns were at the center of the agenda. The U.S. had been a strong supporter of the Samuel K. Doe Administration, providing over $500 million in aid since 1980. The U.S. had also leaned on the International Monetary Fund (I.M.F.) and the World Bank to provide relatively large sums as well. The money had not been well invested; Liberian public administration had been lax at best and corrupt at worst. It was becoming clear that Liberia was heading for serious economic and financial problems. President Doe took the occasion to make an unusual request. He professed that he really did want to straighten matters out but that he could not trust his own people to do so. He said he needed outsiders to provide him with the technical expertise to run the financial affairs of his government. The following month U.S. AID Administrator M. Peter McPherson reached agreement with President Doe on the details of the Operational Expert Project. The five point policy agenda contained the following reform measures: 1. Prohibit the practice of borrowing against traditional sources of offshore revenue (maritime, royalties, and corporate taxes) and do not utilize such offshore revenues to pay onshore expenditures. Halt extra -budgetary expenditures (i.e., expenditures not approved or recorded in the Government of Liberia GOL budget). All salaries will be in the budget and every effort will be made to comply with this budget. It must be understood by both governments that employees' salaries must be current in December. Priority will be given in the coming months to reducing salary arrearages. 2. By June 15, 1987, develop and publish a realistic budget for GOL budget year 1987-88. The budget will reflect expected revenues and encompass all expenditures and show no un- financed gap. The budget will be based on a revised fiscal plan in the Economic Recovery Program to be completed by May 15, 1987. In executing the budget, the GOL will permit no net budget overruns, nor permit extrabudgetary expenditures to occur. Liberian Studies Journal, XV, 1 (1990) 1 PDF compression, OCR, web optimization using a watermarked evaluation copy of CVISION PDFCompressor 2 FRANK B. KIMBLE 3. As part of the 1987-88 budget process, develop a budget of all offshore revenues, which will include a priority list for external debt payments. Brooke-sensitive debt payments should be made in full and on time. 4. Contract by April 30, 1987, with internationally recognized firms for preparation of current financial statements of Liberia Petroleum Refinery Corporation (LPRC) and Liberia Produce Marketing Corporation (LPMC). Liberian owned and controlled firms will be able to participate in these studies as subcontractors. Conduct annual financial reviews thereafter. Develop a plan of action to better manage and restructure LPRC and LPMC. Collect and deposit into government revenues excise taxes levied on imported petroleum products. 5. The GOL will carefully review the recent IMF currency study and work with the IMF on overall economic reform. No release of new Liberian coins will be undertaken without prior consultation with the IMF and the U.S. Economic Background What had brought Liberia to this state of affairs? In the 1960's and 1970's the rates of economic growth in Liberia had averaged a strong 4-6% per annum. This was due to large increases in output and value -added in the rubber and iron ore sectors. In the mid 1970's the dramatic increase in energy prices and the resulting recession in the industrialized world weakened the demand for iron ore and rubber. In 1974 -1979, Liberia's economic growth rate was less than 1 %. Two government decisions in the latter half of the 1970's also adversely affected future economic growth rates. First, government expanded inefficient public sector enterprises. On a net basis the cost to the economy has been heavy as the enterprises became an increasing drain on scarce budget revenue. The second decision was to finance the facilities for the OAU Conference of 1979. This was done with short term and high interest loans contracted in 1977 and 1978. The estimated costs of $230 million occurred at the expense of foregone productive investments. The budget deficit which was $4.3 million in 1975 mushroomed to $137 million in 1979 while external debt more then tripled. The Doe government which took power in 1980 increased these problems by raising the wages of the military forces by 200% and by doubling the size of the civilian workforce. Per capita income declined from $620 in 1980 to $480 in 1986. Taking into account the increase in the official consumer price index for this period, per capita purchasing power declined by about 40 %. PDF compression, OCR, web optimization using a watermarked evaluation copy of CVISION PDFCompressor UNITED STATES -LIBERIA PROJECT 3 From 1980 to 1985, Liberia's monetary economy registered an annual average decline of 2.3% in real terms while population grew at over 3% per annum. Monetary gross domestic product in 1971 factor costs declined from $366.2 million in 1980 to $318.5 million in 1985. The contraction in the monetary economy was caused by bad domestic policy, government managerial deficiencies, high budget deficits and unfavorable external markets. The IMF Standby Agreement was suspended in December 1984 because of non -compliance and debt servicing arrears. The World Bank and the African Development Bank (ADB) also suspended disbursements in early 1985 for the same reasons. The government
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