Case | HBS Case Collection | September 2011 (Revised March 2014)


by Eric Werker and Jasmina Beganovic


From 1989 to 2003 civil war raged in Liberia, causing GDP per capita to drop an unprecedented 90% from peak to trough. The roots of Liberia's conflict and economic decline are complex and intertwined, resting on over a century of discriminatory elite rule and twisted by ethnic politics during a military dictatorship. By late 2011, eight years of post-conflict government have restored basic order, re-opened the country to foreign investors, and jump-started the small economy. But the country's business model may unsettle its political stability. As Africa's first democratically elected female head of state (and a recipient of the Nobel Peace Prize) Ellen Johnson Sirleaf goes into her reelection campaign for Liberia's presidency, she must decide how to keep the country on its fragile but quick recovery, sowing the seeds for peace and prosperity rather than renewed conflict.

Keywords: War; Developing Countries and Economies; Financial Crisis; Government and Politics; Macroeconomics; Liberia;


Werker, Eric, and Jasmina Beganovic. "Liberia." Harvard Business School Case 712-011, September 2011. (Revised March 2014.)