Can Liberia escape the "resource curse" by demanding more from foreign investors in the natural resource sector?
Liberia's "Development Corridor" Strategy
Concentrating infrastructure investments
In exchange for contractual rights to extract and export natural and nonrenewable resources, the central government has required that foreign investors build and maintain public infrastructure, such as roads, bridges, ports, and electricity grids. Its goal is to target and co-locate these infrastructure investments in specific geographic areas in order to set in motion broader economic agglomeration processes and establish new "growth poles" or "development corridors."
Has this strategy worked?
Four key findings from the report
U.S. concessions do not have any discernible effect on local economic growth, while Chinese concessions do.