Worksheet 7

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Apr 3, 2024

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Name: Iris Smith Worksheet #7 Firestone in Liberia Instructions: Please answer the following questions. 1. Drawing on the material provided, please describe Firestone’s history in Liberia prior to Charles Taylor’s presidency. Since the 1920s, Firestone had a deal with the Liberian government to farm rubber on rubber plantations. As said in the documentary, the deal was ‘mutually beneficial,’ since the government was able to fund itself better with the presence of the rubber industry. The rubber industry made up a large portion of Liberia’s economy and employed its people, giving them benefits and housing. Liberia allowed Firestone to operate its plantation to boost their economy, and Firestone extracted valuable resources from Liberia for profit. 2. Describe at least 2-3 main arguments offered by actors in each camp: a. Firestone contributed to Liberia’s development Firestone greatly increased the GDP of Liberia, as they brought in means to increase production. Liberia was initially very poor, so Firestone brought “something better than nothing”. Multi-million-dollar investments into the plantations meant that the economy of Liberia was improving. Firestone helped to employ people and provide them with housing and other amenities. Additionally, Firestone acted as a bridge to the global North. Firestone also turned thousands of acres of land from unused open land to rubber plantations, better extracting the natural resources. b. Firestone undermined (or “underdeveloped”) Liberia Most of the money generated from the rubber plantation, although helpful for the government, did not go back to the Liberian people. Firestone came to Liberia solely to extract wealth. The plantation perpetuated a culture not dissimilar to slavery that did not allow a path for Liberian workers to progress upward in the chain of command. All the managers were foreign, and thus the majority of the main stayed foreign. Firestone also made Liberia essentially dependent on the rubber industry led by foreign investment, so when Firestone pulled out it crippled the economy. Additionally Firestone supported Charles Taylor which led to further political instability in Liberia.
3. How does the case of Firestone in Liberia…. a. Support Rodney’s argument? b. Rodney argues that underdevelopment is caused by core countries exploiting and extracting resources from the periphery. Firestone farmed resources from Liberia cheaply but then sold at higher profit margins in foreign countries, meaning that the earnings were sent abroad rather than invested in Liberia.This exploitation led to extreme underdevelopment, and meant that Liberia was actually more unstable. Firestone’s investment into Liberia did contribute to economic growth, which contradicts Rodney’s idea that underdevelopment only ever further impoverishes the nation. Additionally, the Liberian government did genuinely believe that a deal with Firestone would be beneficial, contrary to Rodney’s conception of “African sellouts”. The government was trying to employ its people and generate revenue. 4. Building on Dependency Theory, provide a short (reformist or radical) proposal regarding ways in which the Liberian state might interact with Firestone in order to more effectively foster national “development.” Reformist Proposal : From a reformist perspective, the government of Liberia could incentivize the production of manufactured goods in Liberia as opposed to just extracting the natural resources. By using leverage over Firestone, they could move towards the actual tires being produced in Liberia. Also, the Liberian government could set up policy to avoid declining terms of trade such as stipulation for reinvestment of profits into Liberia. 
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