Sierra Leone Uses Interventionist Policies
Interventionist strategies are policies involving an active role by the government and manipulation of the workings of the markets in the economy (Blink). After the war ended, President Koroma was forced to alleviate the country from its depressed state that the Revolutionary United Front (RUF) war left it in. As the aid from OPEC shows, Sierra Leone used these loans to invest in the future for Sierra Leoneans. The state of the country left the population with a great deal of uncertainty. President Koroma needed to get involved in order to show the people that the government has changed and is no longer corrupt. With roads, schools, and towns destroyed, if left to the market, there was and is no way the country would be able to right itself. The projects that this money could have potentially gone to are the Free Health Care Initiative, the Education for All Fast-Track Initiative, and the Energy Access Program. The nation also developed the import substitution strategy, another interventionist policy, in which the government and industries within the economy produce the main important goods and services for the economy so that the country does not need to rely on imports from other foreign countries. The government is heavily involved in the implementation of this strategy, and while there may be disadvantages as stated previously, it was an important endeavor for the nation so that Sierra Leone could discover which policy operates best within the economy.
There are some disadvantages to interventionist policies. These include an increase in the money supply of the government which can lead to high levels of inflation, the idea that government spending can put the economy into a budget deficit, and that most of the time large spending on large infrastructure projects see very little success. In the case of Sierra Leone, it is important that the people see the government becoming involved domestically. It is the boost the people need to come out of hiding and begin searching for jobs and become qualified for more highly-skilled jobs. By cleaning-up the country, the government has attracted FDI which is able to stimulate economic growth as well as economic development.
There are some disadvantages to interventionist policies. These include an increase in the money supply of the government which can lead to high levels of inflation, the idea that government spending can put the economy into a budget deficit, and that most of the time large spending on large infrastructure projects see very little success. In the case of Sierra Leone, it is important that the people see the government becoming involved domestically. It is the boost the people need to come out of hiding and begin searching for jobs and become qualified for more highly-skilled jobs. By cleaning-up the country, the government has attracted FDI which is able to stimulate economic growth as well as economic development.