New Structural Economic Perspective: The Case of Sierra Leone

Abstract

The economy of Sierra Leone has a list of critical challenges. The country has undergone significant economic shocks over the years; the 11years of civil war, the Ebola Virus Disease, and the Corona Virus Disease. The decrease in the price of iron ore in the world market, the county's primary export, back pedalled all the country's economic gains. Though a transition or Least Developed Country (LDC), Sierra Leone has a lot of mineral wealth (as it is also famous for its blood diamonds), vast acres of arable land for agriculture, fisheries, and marine resources tourism potential. However, in the face of all these natural resources, the social and economic lives of the people have not improved (is it a resource curse?). Obviously, over the years, it seems not all the macroeconomic policies have been able to heal the economic infirmities of the country. For example, currently, the government has one of the highest inflation rates (increased food, housing, and transport inflation worse than even the period of the civil war and Ebola in the country). The motivation of this work is to examine why the critical drivers for economic growth have not been able to transform the nation's economy and identify a framework for financial growth facilitation through value-added chains. However, to achieve this, the paper employs the Growth Identification and Facilitation Framework (GIFF) from a New Structural Economic perspective. The study used a descriptive statistics method to evaluate the impact of these economic drivers on the economy of Sierra Leone. Data for the analysis were from secondary sources. Significant findings of this study include but are not limited to the lack of adequate knowledge of the staff of the National Revenue Authority about the extractive industry and the lack of coordination between the National Minerals Agency (NMA) and the National Revenue Authority (NRA) on revenue mobilization in the extractive sector of the country. Policy recommendations also hold out in this study as to the critical policy interventions the Sierra Leone government should consider to transform Sierra Leone's comparative advantages to competitive advantages.

Country : Sierra Leone

1 Dr. Joseph Davies

  1. School of Public Administration, University of Management & Technology, Freetown, Sierra Leone

IRJIET, Volume 5, Issue 8, August 2021 pp. 40-49

doi.org/10.47001/IRJIET/2021.508007

References

  1. Darrell Kirklen et al. (2017, June 3). RUNNING HEAD: Comparative and Absolute Advantage. Course Hero.
  2. Food and Agriculture Organization of the United Nations (FAO). (2021). Increasing incomes of farmers. Organic and fair-trade exports from Africa. FAO.Org For a World Without Hunger.
  3. Infogalatic - Creative Commons Attribution. (2016, January 13). Economy of India. Infogalatic - the planetary knowledge core.
  4. Justin Yifu Lin. (2012, January 1). New Structural Economics: : A Framework for Rethinking Development and Policy. World Bank Publications.
  5. Melissa A. Schweisguth et al. (2015). SIERRA LEONE AGRICULTURAL VALUE CHAIN ANALYSIS - ANIMAL PROTEIN, GRAINS, HORTICULTURE AND LEGUMES/PULSES . USAID.
  6. OEC Data. (2018). OEC. Retrieved from The Observatory of Economic Complexity : https://oec.world/
  7. OECD Pro. (2017). Economic Complexcity of Sierra Leone.
  8. Okey Iheduru. (2017, November 29). World Bank Supports Sierra Leone’s Mining Sector With $20 Million Grant. (K. KANU, Ed.) ACTION NEWS,COMMENTARY.
  9. Steve Macey. (2013, June 7th). Sierra Leone at a crossroads: Making the most of its minerals. IN ON AFRICA (IOA).