Inappropriate policy responses to external factors and inefficient implementation of aid projects and maintenance have led to a general decline in economic activity and a serious degradation of economic infrastructures. Sierra Leone's short-term prospects depend upon continued adherence to IMF programs and continued external assistance. The government is trying to increase food and cash crop production and upgrade small farmer skills. Also, the government works with several foreign donors to operate integrated rural development and agricultural projects. Mineral exports remain Sierra Leone's principal foreign exchange earner.
Diamonds alone account for more than half of export earnings.
The loss in 1992 of the Kono district diamond mining area to rebel forces has deprived the country of this major source of foreign exchange. Sierra Leone's second largest recorded export is bauxite, mined in the Sherbro area by a Swiss firm. This production reached 50,000 tons in 1990. Sierra Leone has one of the world's largest deposits of rutile, a titanium ore used as paint pigment and welding rod coatings. Sierra Rutile Ltd., wholly owned by Nord Resources of the United States, began commercial mining operations near Bonthe in early 1979.