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Country Commercial Guides for FY 2000: Liberia Report prepared by U.S. Embassy Monrovia, released July 1999 Note*

CHAPTER III: POLITICAL ENVIRONMENT

A. NATURE OF THE POLITICAL RELATIONSHIP WITH THE U.S.

THE U.S. AND LIBERIA HAVE A LONG-STANDING HISTORICAL RELATIONSHIP THAT WAS SORELY TESTED BY THE CIVIL CONFLICT, AND THE POLITICAL VIOLENCE, HUMAN RIGHTS ABUSES, AND CORRUPTION THAT ENSUED. THE U.S BELIEVES THAT DEMOCRACY AND GENUINE RESPECT FOR HUMAN RIGHTS COUPLED WITH TRANSPARENCY AND ACCOUNTABILITY IN GOVERNMENT REMAIN THE BEST PATHS TOWARD SUSTAINABLE ECONOMIC GROWTH.

THE U.S. GOVERNMENT CONTINUES TO FINANCE PROJECTS THROUGH THE AGENCY FOR INTERNATIONAL DEVELOPMENT (USAID). IT PROVIDED 53 MILLION DOLLARS IN FOOD AID, HUMANITARIAN ASSISTANCE, DEMOBILIZATION/REINTEGRATION FOR EX- COMBATANTS, AND DEMOCRACY/GOVERNANCE ASSISTANCE IN 1998, PRIMARILY THROUGH INTERNATIONAL NON-GOVERNMENTAL ORGANIZATIONS (NGOS) AND UN AGENCIES. ALSO INCLUDED IN THE 53 MILLION ARE THE AMBASSADOR'S SPECIAL SELF-HELP AND THE DEMOCRACY AND HUMAN RIGHTS FUNDS, WHICH TOGETHER FINANCED $80,000 WORTH OF SMALL GRASS-ROOTS PROJECTS, THROUGH LOCAL COMMUNITY GROUPS, AND CIVIL SOCIETY ORGANIZATIONS. IN 1999, USAID WILL TRANSITION FROM HUMANITARIAN ASSISTANCE TO DEVELOPMENT ASSISTANCE, PROVIDING A TOTAL OF 26.6 MILLION DOLLARS IN FOOD AID, HUMANITARIAN ASSISTANCE, REINTEGRATION FOR EX-COMBATANTS, HEALTH CARE, DEMOCRACY/GOVERNANCE, AND AGRICULTURAL PROJECTS.

THE U.S. WILL CONTINUE TO PRESS FOR FUNDAMENTAL CHANGES IN THE RESPECT FOR HUMAN RIGHTS, GOOD GOVERNANCE, AND TRANSPARENCY AND ACCOUNTABILIITY IN ORDER FOR THE BILATERAL RELATIONSHIP TO PROGESS POSITIVELY. THE U.S. IS CONCERNED ABOUT A DETERIORATING HUMAN RIGHTS CLIMATE BROUGHT ABOUT LARGELY BY ILL-DISCIPLINED GOVERNMENT FORCES AS THEY CONTINUE TO HARASS HUMAN RIGHTS ACTIVISTS, OPPOSITION FIGURES, THE PRESS, AND CIVIL SOCIETY IN GENERAL. GOVERNMENTAL CORRUPTION CONTINUES TO ADVANTAGE A FEW, WHILE THE VAST MAJORITY OF LIBERIANS LIVE IN POVERTY.

B. MAJOR POLITICAL ISSUES AFFECTING BUSINESS CLIMATE

THERE ARE TWO MAJOR ISSUES AFFECTING THE BUSINESS CLIMATE IN LIBERIA-- REGIONAL AND INTERNAL INSTABILITY, AND WIDESPREAD CORRUPTION. AFTER A SEVEN-YEAR CIVIL CONFLICT IN WHICH THE ENTIRE INFRASTRUCTURE WAS LOOTED, INVESTORS ARE WARY OF MAKING LARGE CAPITAL INVESTMENTS. INVESTORS' CONCERNS ARE EXACERBATED BY THE PROLIFERATION OF ARMED SECURITY FORCES IN AND AROUND THE CAPITAL CITY, MONROVIA, AND BY THEIR POOR HUMAN RIGHTS RECORD.

THE LIBERIAN GOVERNMENT HAS MADE LITTLE EFFORT TO ADDRESS CORRUPTION IN ANY SECTOR. A SEMINAR ON GOOD GOVERNANCE HELD EARLIER THIS YEAR WAS WELL-RECEIVED BY THE PUBLIC, BUT LED TO LITTLE CONCRETE CHANGE IN GOVERNMENT POLICY. INVESTORS FIND THE BUREACRATIC RED TAPE DAUNTING, REQUESTS FOR BRIBES OVERWHELMING, AND CONTRACTS MADE IN LIBERIA DIFFICULT TO ENFORCE. THERE HAS BEEN INTERFERENCE BY THE EXECUTIVE BRANCH IN THE WORKINGS OF THE JUDICIAL AND LEGISLATIVE BRANCHES. IN SOME CASES, JUDGMENTS BY THE SUPREME COURT OF LIBERIA, THE HIGHEST COURT IN THE LAND, WERE NOT CARRIED OUT BECAUSE OF PRESIDENTIAL INTERFERENCE.

C. BRIEF SYNOPSIS OF POLITICAL SYSTEM, SCHEDULE FOR ELECTIONS AND ORIENTATION OF MAJOR POLITICAL PARTIES

LIBERIA IS AFRICA'S OLDEST REPUBLIC, HAVING GAINED ITS INDEPENDENCE ON JULY 26, 1847. ITS POLITICAL SYSTEM IS BASED ON THE AMERICAN MODEL, WITH THREE BRANCHES-- EXECUTIVE, JUDICIAL, AND LEGISLATIVE. THE BICAMERAL NATIONAL ASSEMBLY, THE LEGISLATIVE BRANCH, CONSISTS OF THE SENATE AND THE HOUSE OF REPRESENTATIVES. THE EXECUTIVE BRANCH CONSISTS OF THE PRESIDENT AND THE CABINET. THE CABINET IS APPOINTED BY THE PRESIDENT. THE JUDICIAL BRANCH CONSISTS OF CIRCUIT COURTS IN EACH COUNTY, WHICH ARE COURTS OF RECORD. THE SUPREME COURT IS THE COURT OF APPEALS. WITHIN EACH CIRCUIT, THERE ARE MAGISTERIAL COURTS AND JUSTICE OF THE PEACE COURTS, WHICH ARE NOT COURTS OF RECORD. JUVENILE COURTS WERE ESTABLISHED BY LAW IN 1998, BUT MOST COUNTIES ARE LACKING PERSONNEL OR FACILITIES TO HEAR CASES. PRESIDENTIAL AND LEGISLATIVE GENERAL ELECTIONS WERE HELD ON JULY 19, 1997, AND WILL BE HELD NEXT IN 2003. THE RULING PARTY IS THE NATIONAL PATRIOTIC PARTY (NPP). THE NPP CONTROLS A MAJORITY OF THE SEATS IN THE LEGISLATURE, WITH A SMALL NUMBER BEING HELD BY THE UNITY PARTY(UP), LED BY ELLEN JOHNSON-SIRLEAF, AND THE ALL LIBERIA COALITION PARTY (ALCOP), LED BY ALHAJI KROMAH.