Question

Liberia, a very poor nation in West Africa, is relatively abundant in resources such as mahogany and rubber tree forests, iron-ore deposits, and diamonds. If Liberia is so rich in valuable resources, why is it still so impoverished?

Answer 1

The population of Liberia is too small to use those resources. Natural resources are not as important as other types of resources. Taxes in Liberia are too high and discourage investment.