The World Bank's version of adjustment calls for trade liberalization. In so doing, however, the local population and households often suffer acute economic pains. Consequently, the adjusting country must adjust very fast by absorbing all the socio-economic pains in the process. No one disputes the importance of investments for the post-war Liberian economy. However, it would be to the benefit of the country if Liberia's new policy makers care not only about the volume of capital inflows but also the nature and conditions of such flows.
Serious efforts have to be made to attract productive investments on beneficial terms.
Although international private capital has declined for most of sub-Saharan Africa since 1982, it seems that Liberia may not have too much difficulty in attracting private foreign investors. This year, for example, Amalia Gold Mining, a South African company with bases in London, won an agreement to develop Liberia's mineral resources. The difficulties, however, will be in attracting good investments, especially in light of the country's debt problems and post-war economic vulnerabilities. Nevertheless, in case the government chooses to embark on economic recovery with development, it must first put in place a sustainable macroeconomic policy, whereby Liberia's debts are paid but not at the cost of its people's survival.