The role of financial institutions in the economic development of Sierra Leone

Taylor, Alwyn Beresford (1974) The role of financial institutions in the economic development of Sierra Leone. PhD thesis, University of Glasgow.

Abstract

This study deals with the nature and operations of financial institutions in Sierra leone during the period I960 - 1970. Growth of the Sierra Leone economy is constrained by the scarcity of capital, the virtual absence of entrepreneurs and the low per capita income for about 70 % of the population who live on subsistence agriculture. However, there is scope for the development of the agricultural sector and agro-based industries because of the availability of unused fertile land and the abundance of labour. In fact, the development of the agricultural and small-scale industries sectors have been the declared objective of government policy. Consequently, our assessment of the contribution of financial institutions to economic development is centered on the extent to which these institutions have been successful in mobilizing domestic financial resources and the extent to which these resources have gone into the agricultural and small-scale industries sectors. Chapter I examines the main features of the Colonial Monetary System of which Sierra Leone was a part until 1963; it indicates why that system was adequate for the needs of that period and emphasizes the constraints on that system once political independence had been achieved. Chapters II to VI analyse the functioning of the various financial institutions with special emphasis on the sources and uses of funds. The relative importance of the various financial institutions in the provision of development finance is assessed in Chapter VII, Chapter VIII examines the role of monetary management in the light of the balance of payments constraint and in Chapter IX we put forward proposals which aimed at improving the efficiency of the financial sector by mobilizing more domestic financial resources for productive investment. The conclusions of our study are summarized in Chapter X. Since the monetary and financial system must be evaluated within the context of the economy of which it is a part, Appendix I describes the structure of the Sierra Leone economy and examines the implications of the structural features for the financial sector, Appendix II attempts to assess the unsatisfied demand for credit in the agricultural and small-scale industries sectors. The study postulates that the country will have to rely increasingly on domestic sources for financing development and that this involves the institutionalization of domestic savings and their utilization for productive investment. In our examination of this proposition two main themes emerges: The first is the need to increase the flow of financial resources to activities and sectors considered of strategic importance for economic development. The second is that the scope for traditional monetary policy is very limited and that emphasis must be placed on management of the level and flow of external reserves. (Abstract shortened by ProQuest.).

• Item Type: Thesis (PhD)
• Qualification Level: Doctoral
• Additional Information: Adviser: Thomas Wilson
• Keywords: Economics
• Date of Award: 1974
• Depositing User: Enlighten Team
• Unique ID: glathesis:1974-73152
• Copyright: Copyright of this thesis is held by the author.
• Date Deposited: 14 Jun 2019 08:56
• Last Modified: 14 Jun 2019 08:56
• URI: https://theses.gla.ac.uk/id/eprint/73152