Liberia's Performance on the Resource Governance Index
Liberia received a "partial" score of 62, ranking 16th out of 58 countries. A high Institutional & Legal Setting score contrasted with a much lower grade on the Enabling Environment component.
(out of 58)
(out of 100)
|7||Institutional & Legal Setting||83|
|15||Safeguards & Quality Controls||71|
Institutional & Legal Setting (Rank: 7th/58, Score: 83/100) learn more
Liberia earned a "satisfactory" score of 83, its highest on any component, reflecting substantive disclosure policies and a legal framework designed to foster competition in the mining sector.
The Land, Mines and Energy Ministry, in collaboration with the Public Procurement and Concessions Commission, grants concessions and mineral development agreements on a first come, first served basis for areas that have yet to be explored. A competitive auction system is used for licensing known mineral deposits. Liberia requires environmental impact assessments before granting licenses.
The Finance Ministry receives all payments from mining companies. Under new laws that have not yet been fully implemented, most mineral revenues will be transferred to the treasury.
Liberia became an Extractive Industries Transparency Initiative (EITI) compliant country in 2009 and passed a freedom of information act in 2010.
Reporting Practices (Rank: 18th/58, Score: 62/100) learn more
Liberia's "partial" score of 62 is the result of mixed performance, with detailed disclosure on some aspects of the mining industry, but little data on several key revenue indicators.
Liberia provides scant information on the licensing process before mining rights are granted. Afterward, the Land, Mines and Energy Ministry publishes information on the number of bids received, bidding requirements, and winning bids. Results of environmental impact assessments are not available online. Most mineral development agreements are published, and the Ministry is launching a Mineral Cadaster Information Management System.
The Finance Ministry publishes little information on revenues, apart from the names of companies operating in the country, social investment information, and figures from 2010 on royalties, bonuses, license fees, and acreage fees. The Land, Mines and Energy Ministry publishes information from 2009 on reserves, diamond production volumes, prices, the value of diamond and gold exports, estimates of investment in iron ore exploration, the names of companies operating in the country, royalties, license fees, and acreage fees. The central bank publishes updated information on mineral production volumes, prices, the value of gold and diamond exports, and some names of companies operating in the country. The most comprehensive reports on revenues are published by Liberia's EITI Secretariat. These include production data by company, social investments, royalties, special taxes, dividends, bonuses, license fees, and acreage fees.
Safeguards & Quality Controls (Rank: 15th/58, Score: 71/100) learn more
Liberia's "satisfactory" score of 71 reflects emerging audit and oversight policies.
The legislature must ratify mineral contracts, and the Committee on Lands, Natural Resources and Environment regularly scrutinizes resource revenues and contract provisions, which do not always follow legal requirements. Contracts may be appealed for environmental reasons.
Revenue reports by the Land, Mines and Energy Ministry were audited for the first time in 2009 by the General Auditing Commission, and all audit reports are publicly available. Since early 2012, all government officials have been required to disclose their financial assets to the Liberia Anti-Corruption Commission.
Enabling Environment (Rank: 34th/58, Score: 31/100) learn more
With an extremely poor global ranking for government effectiveness, Liberia received a "failing" score of 31. Liberia also faces challenges with the quality of the rule of law.
Subnational Transfers (Rank: 17th/30, Score: 61/100) learn more
There are no direct transfers from the national budget to subnational governments, but Liberia requires mining companies to contribute to social development funds benefiting communities in the counties where extraction takes place. Rules governing these funds are defined by legislation and published in mineral development agreements, but the national audit authority has found that county receipts do not exactly match the amounts companies are required to pay. The Finance Ministry's fiscal outturn reports contain data on the amount of the transfers.
INSTITUTIONAL & LEGAL SETTING
SAFEGUARDS & QUALITY CONTROLS
To explore all data and compare country scores, use the RGI Data Tool.
Key Economic Indicators
|GDP (constant 2011 international $ billion)||0.7||0.6||1.5|
|GDP per capita, PPP (constant 2005 international $)||344||346||517|
|Extractive exports (% total exports)||..||..||..|
|Source: World Bank|