LIDC: Sierra Leone

Question 1

Trade summary

Answer 1

• extremely poor and nearly half of working-age population engages in subsistence agriculture
• recently, econ growth driven by mining - especially iron core
• non-mining activities constrained by inadequate infrastructure, such as owner and roads
• pervasive corruption and underdeveloped human capital deters FDI.

Question 2

Trade statistics

Answer 2

Population: approx 8,700,000 (132,000 labour force).
GDP per capita: US$1,600
Service sector: 32.9% of GDP

Question 3

Exports

Answer 3

Total= $532 million (2020)
Destinations = China 27% ($142M), Belgium 21% ($110M), Netherlands 8%,
Products exported = titanium ore, rough wood, diamonds, aluminium ore, cocoa beans

Question 4

Imports

Answer 4

Total= $1.16 billion (2020)
Origins= China 32%, India 11%, Turkey 6%
Products imported= rice, packaged medicines, cars, cement, poultry

Question 5

Services

Answer 5

Exports = $116 million
- personal travel, business services, business travel, transportation
Imports = $ 404million
- transportation, business services, personal travel

Question 6

Economic factors contributed to limited market access

Answer 6

• over-dependence on primary product exports
• limited access to finance and secure banking sector
• inadequate infrastructure: water and energy provision, all transport
• poor communications networks
• high costs of production
• low levels of technology

Question 7

Political factors contributing to limited access to markets

Answer 7

• slow recovery from civil war
• previous political instability has affected confidence of investors
• inefficient government bureaucracy and prevalence of corruption
• inability to control crime including illegal trading

Question 8

Social factors contributing to limited access to markets

Answer 8

• high levels of unemployment- 70% under 25s unemployed
• inadequately educated work force- 91% of women and 80% of men not reaching secondary school education.
• gender inequality limiting contribution of women
• human rights abuse- child labour
• health, poverty and life expectancy inequalities

Question 9

Environmental factors contributing to limited access to markets

Answer 9

• malaria, hepatitis, typhoid and Ebola have debilitating effects on the workforce
• large scale mining operations and agribusiness limiting effects of environmental damage to water, soil and forest reserves

Question 10

Challenges

Answer 10

• reducing barriers which inhibit participation in global value chains e.g. poor infrastructure
• reducing illegal practices in diamond trade and fishing
• broadening economic base by attracting investment in manufacturing industries and in services
• managing conflicts between development and environmental degradation
• reducing severe inequalities in life expectancy, gender,education, income. (Rural areas are particularly deprived with 66% living in poverty)

Question 11

Opportunities

Answer 11

• support of bilateral trade partners to strengthen trade and socioeconomic development
• Chinese companies now have more corporate responsibility- financed medical teams, new hospital in free town, new foreign ministry, airport and road network
• membership of ECOWAS abolished tariff and non-tariff barriers between member states - increased trade and boosted economic activity
• membership of Mano River Union (MRU) involve socio-economic development programmes
  -political stability and good trade relations have improved since civil war