Liberia A. Definitions and sources of data The data on the annual flows of foreign direct investment (FDI) in Liberia were gathered from the tapes provided by the International Monetary Fund in its balance-of-payments statistics, the Organization for Economic Co-operation and Development, the Development Assistance Committee and International Development Statistics On-line Databases. Posted November 2006
B. Statistics on FDI and the operations of TNCs
UNCTAD WID Country Profile: LIBERIA Page 3 of 12 Table 1. Summary of FDI Variable Inward Outward 1. FDI flows, 2002-2005 (annual average) 194.0 185.8 2. FDI flows as a percentage of GFCF, 2002-2005 (annual average) 409.9 392.6 3. FDI stock, 2005 4 030.7 1 954.3 4. FDI stock as a percentage of GDP, 2005 832.6 403.7 Source: Based on tables 3a, 4 and UNCTAD, FDI/TNC database.
UNCTAD WID Country Profile: LIBERIA Page 4 of 12 Table 3a. FDI flows, by type of investment, 1980-2005 Year Equity Inward investment Reinvested earnings Intracompany loans Total Equity Outward investment Intracompany Reinvested earnings loans Total 1980...... 71.9...... 231.2 1981...... 288.0...... 40.7 1982 34.8.... 312.9...... 161.2 1983 41.8 2.5 4.8 49.1...... 21.1 1984 24.9 1.8 9.5 36.2...... 59.3 1985 0.3 1.7-18.2-16.2...... 245.0 1986-16.5.... -16.5...... -264.8 1987 38.5.... 38.5...... 40.3 1988...... 290.2...... 194.5 1989...... 656.0...... 45.4 1990...... 225.2...... -3.1 1991...... 8.4...... 365.6 1992...... -10.9...... 55.2 1993...... -53.6...... 96.6 1994...... 17.4...... 92.4 1995...... 4.6...... -97.0 1996...... -132.1...... -58.1 1997...... 213.8...... 500.8 1998...... 190.3...... -730.8 1999...... 256.3...... 310.7 2000...... 20.8...... 780.3 2001...... 8.3...... -312.8 2002...... 2.8...... 385.6 2003...... 372.2...... 80.0 2004...... 206.9...... 91.7 2005...... 194.0...... 185.8 Source : UNCTAD, FDI/TNC database. Note : FDI inflows: OECD for 1980-1982, 1988-1999 and 2003-2004, IMF for 1983-1987, the IMF country report May 2005 No. 05/166 for 2002 and estimate for 2005. FDI outflows: Proxy for 1980-2002 and estimate for 2004-2005. Proxy is based on investments reported by the following economies: 1980-1984 Brazil and the United States, 1985-1988 Belgium and Luxembourg, Brazil and the United States, 1989 Belgium and Luxembourg, Brazil, France and the United States, 1990 Belgium and Luxembourg, Brazil and the United States, 1991 Belgium and Luxembourg, Brazil, France and the United States, 1992-1995 Belgium and Luxembourg, Brazil, China, France and the United States, 1996 France and the United States, 1997 Belgium and Luxembourg, France and the United States, 1998-1999 Belgium and Luxembourg and the United States, 2000-2001 Belgium and Luxembourg, France and the United States, 2002 France, Sweden and the United States, 2003 Unites States.
UNCTAD WID Country Profile: LIBERIA Page 5 of 12 Year Equity Table 4. FDI stock, by type of investment, 1980-2005 Inward Investment Reinvested Intracompany earnings loans Outward Investment Total Equity Reinvested Intracompany earnings loans Total 1980...... 868.2...... 48.0 1981...... 1 156.2...... 74.0 1982...... 1 469.1...... 72.0 1983...... 1 518.2...... 74.0 1984...... 1 554.4...... 126.0 1985...... 1 538.2...... 361.0 1986...... 1 521.7...... 87.0 1987...... 1 560.2...... 212.0 1988...... 1 850.3...... 343.0 1989...... 2 506.3...... 430.0 1990...... 2 731.6...... 453.0 1991...... 2 740.0...... 935.0 1992...... 2 729.1...... 1 181.0 1993...... 2 675.5...... 1 229.0 1994...... 2 692.9...... 1 210.0 1995...... 2 697.5...... 1 113.0 1996...... 2 565.4...... 992.0 1997...... 2 779.2...... 1 462.0 1998...... 2 969.5...... 708.0 1999...... 3 225.8...... 1 100.0 2000...... 3 246.6...... 1 524.0 2001...... 3 254.9...... 1 211.2 2002...... 3 257.7...... 1 596.8 2003...... 3 629.9...... 1 676.8 2004...... 3 836.7...... 1 768.5 2005...... 4 030.7...... 1 954.3 Source : UNCTAD, FDI/TNC database. Note : FDI inward stock: Estimated by accumulating inflows since 1970. FDI outward stock: Proxy based on investments reported by the United States for 1980-2000, 2001-2005 are estimated by adding flows to the 2000 stock.
UNCTAD WID Country Profile: LIBERIA Page 6 of 12 Table 6. FDI flows in the host economy, by geographical origin, 1990-2004 Economy 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Belgium / Luxembourg - 56.7 16.2-6.6-51.4-24.5 26.1 5.2-33.8-12.2-5.3 8.3 26.8...... Croatia.................. 0.7.......... France 20.6 2.8.. 9.5-9.5-22.0-7.6 197.7.... 0.9-10.7...... Germany.. 15.3.. 89.9 14.5 8.2-41.6-147.8 76.7.... 242.5-196.7 62.1 26.1 Malaysia...... 0.8.. 2.8 0.8 2.1.............. Netherlands.. 4.7............ - 7.8............ Portugal............ - 0.4................ Sweden.... 0.7 59.3 12.9-9.5.......... - 14.6-0.9 2.9 15.5 United States - 29-41 3-2 - 12 27-17 - 9 13 35-218 - 60-260 36-7 Source : UNCTAD, FDI/TNC database. Table 9. FDI flows abroad, by geographical destination, 1990-2004 Economy 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Armenia.................... 0.6........ Belgium / Luxembourg - 16.1 16.6 3.1 10.6.. - 18.6-0.5 14.7 22.2 11.7 237.7 3.6.. 4.6.. Bolivia 5.2............................ Brazil 0.0 0.1 0.4 0.1 0.2............ 0.1 0.1.... Bulgaria.................. - 0.1 0.1 0.1...... Chile...... 0.2.............. 7.9 0.1.... China.... 0.0 28.7 6.0 12.5.................. Croatia................ 2.0............ Czech Republic.............................. France.. 0.9 1.7 0.2 1.3 5.6 12.9 12.2.... - 7.4-4.5-9.4.... Germany - 1.2.. 1.3.... 46.4-1.3.. - 2.2.... 13.4-6.6 9.0 22.4 Iran, Islamic Republic of.......................... 6.0.. Kazakhstan........................ 34.7.... Malaysia........ 1.9 6.8.................. Pakistan........ 1.5.................... Peru.... 0.1........................ Portugal............ - 0.1 1.3 0.6............ Saudi Arabia................ 1.0............ Sweden........................ 279.9.... United States 13 348 50 57 85-96 - 71 474-753 299 550-312 116 76 153 Venezuela.. 1.1.......................... Source : UNCTAD, FDI/TNC database.
UNCTAD WID Country Profile: LIBERIA Page 7 of 12 Table 12. FDI stock in the host economy, by geographical origin, 1990-2004 Economy 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Brazil...................... 149.6 133.7 81.4.. Canada........ 117.6 38.1 46.0 42.0.............. Croatia.................... 4.5........ Germany - 31.5 6.6 78.7 103.1 125.3 101.2 184.6 147.3 186.5 111.5 134.9 163.0 68.2 60.6.. Latvia.............. 176.7 132.7 129.5.......... Malaysia...... 0.7 0.8 3.5 4.3 4.4 4.5 4.5 4.5 4.5 4.5.... Norway................ 66.7 635.6 645.5 637.1...... Slovenia........ 17.1 22.2 28.1 28.5 18.1 22.7 24.1 23.8 21.0.... United Kingdom.... - 400.7 143.7 112.5.................... United States 235 193 208 181 215 242 224 214 227-225 - 819-547 -1 344 254 224 Source : UNCTAD, FDI/TNC database. Note: Data are based on information reported by the economies listed above Table 15. FDI stock abroad, by geographical destination, 1990-2004 Economy 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Armenia.................... 0.6 0.6 0.6 0.6.. Bolivia 5.2............................ Brazil 326.7 326.3 325.8.... 224.0........ 140.1........ Bulgaria.................. 0.2.......... Canada.......... 3.7.................. Colombia 0.4 0.4 0.4 0.4 0.4 0.4 0.4 1.7 2.5 12.8 14.9........ Croatia.................. 2.0 2.1........ Czech Republic.................... 0.6 0.6...... Indonesia.... 28.7.. 30.4 30.4 31.0................ Kazakhstan........................ 43.3.... Latvia.................... 20.7 6.5...... Peru 0.6 0.6 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8.... Portugal............ 5.1 0.4 0.7 0.6 0.5 0.5 0.6 0.7.. United States 453 935 1 181 1 229 1 210 1 113 992 1 462 708 1 099 2 007 1 614 1 664 1 740 1 900 Venezuela 0.6 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7.... Viet Nam.............. 0.2 0.2 0.2 0.2 0.2 0.2.... Source : UNCTAD, FDI/TNC database. Note: Data are based on information reported by the economies listed above
UNCTAD WID Country Profile: LIBERIA Page 8 of 12 Table 21. The number of foreign affiliates of home-based TNCs, by geographical location abroad, 1990-2001 Economy 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 Armenia.................. 1.... Hong Kong, China 7 8 7 6 4 9 8 4........ Indonesia.... 6.. 7 7 8.......... United States 18 19 32 28 26 26 25 7 8 7 7 7 Table 23. The number of affiliates of foreign TNCs in the host economy, by geographical origin, 1990-2003 Economy 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Germany 8 13 10 16 14 12 14 13 13 14 13 13 5 5 United States 19 22 21 15 13 14 13 13 13 20 23 26 23 22 Table 28. Assets of foreign affiliates of home-based TNCs, by geographical location abroad, 1990-2002 Economy 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Hong Kong, China 77.3 82.8 77.9 34.9 7.4 72 107.7 93.7.......... United States 563 802 746 746 885 829 383 339 818 1060 374 388 311 Table 30. Assets of affiliates of foreign TNCs in the host economy, by geographical origin, 1990-2003 Economy 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Germany 267.7 395.8 433.7 347.6 387.4 348.8 385.9 334.8 358.6 301.4 186.1 264.4.... United States 519 546 568 378.. 887 1437 1622 938.. 4 135 4 339 3 793 4 248 Table 33. Employment of foreign affiliates of home-based TNCs, by geographical location abroad, 1990-2002 (Thousands of employees) Economy 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Indonesia.... 274.. 285.. 315............ United States 0.8 0.3 0.5 0.5 0.4 0.3 0.3 0.3.... 0.4 0.3 0.4 Table 35. Employment of affiliates of foreign TNCs in the host economy, by geographical origin, 1990-2003 (Thousands of employees) Economy 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Germany 2 2.. 1 1 1 2 2 2 2 1 1.... United States.... 0.5 0.4 0.5 0.3 0.3.... 8.0.... 7.6 8.2
UNCTAD WID Country Profile: LIBERIA Page 9 of 12 Tables 38, 43, 48, 58 and 63. Wages and salaries, sales, value added, exports and imports of foreign affiliates of Liberian TNCs in the United States, 1990-2002 Table no. Variable 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 38 Wages and salaries 26 12 12 18 13 12 9 13.... 23 18 22 43 Sales 184 135 229 303 405 374 155...... 177 261.. 48 Value added.... 24 21 79 66-12 -9.... -20-22.. 58 Exports.............. 55.. 2 1.... 63 Imports........ 140.. 150............ Note: Data are based on information reported by the United States. Tables 40 and 50. Wages and salaries and value added of affiliates of United States TNCs in Liberia, 1992-2003 Table no. Variable 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 40 Wages and salaries 9 5 15 16 4 13.. 83.... 88 95 50 Value added a.... 11 21 22.... 6.... 62 203 a Majority-owned affiliates of United States TNCs. Table 45. Sales of affiliates of foreign TNCs in the host economy, by geographical origin, 1990-2003 Economy 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Germany 247.6 301.3 128.1 181.5 246.5 209.3 199.4 173.0 170.5 213.1 276.4 268.5.... United States 200 281 311 116.. 149.. 160 137.. 1 689 1 620 1 345 1 375
UNCTAD WID Country Profile: LIBERIA Page 10 of 12 Table 88. Largest affiliates of foreign TNCs in the host economy, 2004 (Millions of dollars and number) Company Home economy Industry Sales Employees A. Industrial Liberia Cement Corporation Germany Mining and quarrying.... B. Tertiary Gas Diana Transport Inc. Japan Transport and storage 67.. a Dia Maritime Inc. Japan Transport and storage 18.. a Gas Asia Shipping Japan Transport and storage 6.. a Naiad Shipping Japan Transport and storage 6.. a T. S. Central Shipping Co. Japan Transport and storage 5 3 b Rioship Co. Japan Transport and storage 3.. a Bamboo Shipping Corp. Japan Transport and storage 3.. b Liberian Paramount Japan Transport and storage 2.. b Solar Shipholding Corp. Japan Transport and storage 1.. b Ace Navigation Japan Transport and storage.... Anda Fpso Japan Other business activities.... Arco Ireland United Kingdom Other business activities.... Baratta Shipping Japan Transport and storage.... Castlerock Shipping Japan Transport and storage.... Cm Pacific Maritime Corporation Japan Transport and storage.... C. Finance and insurance Assets Employees SA-Xiamen.. Finance.... SAF.. Finance.... Sources : The Banker's Almanac, 2003 (London, Reed Information Services Ltd, 2003); Thomson Analytics (http://analytics.thomsonib.com/); Who Owns Whom, 2003 (London, Dun and Bradstreet, 2003). a 2001. b 2002.
UNCTAD WID Country Profile: LIBERIA Page 11 of 12 C. Legal frameworks for transnational corporations Liberia had adopted a number of national and international legal instruments to regulate the activities of the transnational corporations and foreign direct investors in the country. The key instruments applicable include: I. National framework The Investment Incentives Code of 1973. Source: Liberian Code of Laws Revised, 1976 edition. Title 8. Also in International Bureau of Fiscal Documentation ATS, suppi. No. 87, August 1993. The Industrial Free-Zones Law of 1975. Source: Liberian Code of Laws Revised, 1976 edition. Title 8. The General Business Law of 1975 as amended in 1993. Source: Liberian Code of Laws Revised, 1976 edition. Title 15. Associations Law of 1976. Effective 3 January 1977. Source: Liberian Code of Laws Revised, 1976 edition. Title 6. Patent, Copyright and Trademark Law of 31 May 1972; effective on 12 August 1972. Source: Copyright Laws and Treaties of the World, vol. I., Liberian Supplement, 1987-1988. II. International Framework A. Liberia is a party to the following multilateral and regional instruments: Paris Convention for the Protection of Industrial Property of 1883 (Revised at Brussels in 1900, Washington in 1911, The Hague in 1925, London in 1934, Lisbon in 1958 and Stockholm in 1967, and as amended in 1979). Signed in 1994. Convention on the Settlement of Investment Disputes between States and Nationals of other States of 1965. Entered into force on 14 October 1966 Convention Establishing the Multilateral Investment Guarantee Agency of 1985, entered into force on 12 April 1988 (In the process of fulfilling membership requirements). Revised Treaty of the Economic Community of West African States (ECOWAS) 1993. Fourth ACP - EEC Convention (Lome IV) of 1989, entered into force on 1 March 1990. B. Bilateral treaties 1. Bilateral investment treaties for the protection and promotion of investments: Germany 1961, Switzerland 1963, France 1979, Belgium / Luxembourg 1985. 2. Bilateral treaties for the avoidance of double taxation: Sweden 1969, Germany 1970, United States 1987.
UNCTAD WID Country Profile: LIBERIA Page 12 of 12 D. Sources of Information A. Official.. B. Secondary Collier, Paul and Anke, Hoeffler (1995). "War, peace and private portfolio", in World Development, vol. 23, no 2, pp. 233-41. Cooper, Neil (2002). "The role of demilitarisation in promoting democracy and prosperity in Africa", Chapter 6 in Brauer and Dunne (2000). Economist Intelligence Unit (2002a). Country Profile 2001/2002: Liberia (London: EIU Ltd.). (2002b). Country Report: Liberia (London: EIU Ltd.), September. (2005a). Country Profile 2001/2002: Liberia (London: EIU Ltd.). (2005b). Country Report: Liberia (London: EIU Ltd.), September. International Monetary Fund (IMF) (2006). IMF's Sub-Saharan Africa Regional Economic Outlook, March 10, 2006. (Washington D.C.: IMF). Soderbom, M. and F. Teal (2004). "Size and Efficiency in Africa Manufacturing firms: Evidence from Firm-Level Panel Data." Journal of Development Economics, 73. pp 369-394. United Nations Conference on Trade and Development (UNCTAD) (2002). FDI in the Least Developed Countries at a Glance (Geneva: UNCTAD/ITE/IIA/6). (2005a). Investor-Disputes Arising from Investment Treaties: A Review. UNCTAD Series of International Investment Policies for Development (UNCTAD/ITE/IIT/2005/4). (2005b). A Survey of Support by Investment Promotion Agencies to Linkages. Advisory Studies No. 18 (UNCTAD/ITE/IPC/2005/12). (2005c). FDI in least developed countries at a glance: 2005/2006 (UNCTAD/ITE/IIA/2005/17). United States Trade Representative (2006). 2006 Comprehensive Report on U.S. Trade and Investment Policy Toward Sub-Saharan Africa and Implementation of the Africa Growth and Opportunity Act: The Sixth of Eight Annual Reports, May 2006. (Washington D.C.: US Government).