By
Mohamed Boye Jallo JamboriaÂ
1. Abstract
This paper explores the implications of the emerging multipolar global order on resource-rich but underdeveloped countries, using Sierra Leone as a case study. The analysis highlights how the decline of U.S. dominance and the rise of China and other regional powers create new challenges and opportunities. Key risks include economic dependency, neo-colonial exploitation, and environmental degradation. This paper emphasizes the need for donor-dependent nations like Sierra Leone to revisit their economic planning policies to focus on governance, economic diversification, and sustainable
resource management. The study recommends a proactive approach centered on institutional strengthening, fair trade, and transparent governance to transform resource wealth into sustainable development.
2. Introduction
The global political landscape is undergoing significant transformation, characterized by a shift from U.S.-led unipolarity to a multipolar world with rising powers such as China, India, and Russia (Adams,
2021). For resource-rich but underdeveloped countries like Sierra Leone, this shift presents both unprecedented risks and opportunities.
Sierra Leone, with its abundant mineral resources—diamonds, iron ore, rutile, and bauxite—offers a compelling case study of the "resource curse" phenomenon, where countries rich in natural resources often experience poor governance, low economic diversification, and high dependency on external aid (Acemoglu & Robinson, 2012). Despite substantial natural wealth, Sierra Leone remains one of the poorest countries globally, with over 50% of its population living below the poverty line (World
Bank, 2020).
This paper argues that the changing global order necessitates a fundamental rethinking of economic planning policies in donor-dependent nations. Effective governance, economic diversification, and
transparent management of resource wealth are essential to break the cycle of dependency and ensure sustainable development.
3. Historical Context: Post-WWII Decolonization and Economic Realities
Post-World War II decolonization was significantly influenced by the economic and strategic interests of Western powers. European nations, economically devastated by the war, prioritized rebuilding their
economies over maintaining costly colonial administrations. The U.S.-sponsored Marshall Plan provided financial support to Western Europe but also pressured European powers to dismantle their colonial empires to open markets for American goods (Jones, 2019).
Sierra Leone gained independence in 1961 amid this shifting geopolitical context. However, the economic legacy of colonialism persisted, characterized by a focus on raw material exports and minimal investment in local industries. This dependence on extractive industries has continued to
shape Sierra Leone's economic planning, limiting diversification and making the country vulnerable to global commodity price fluctuations (Brown, 2020).
The experience of post-WWII decolonization underscores the need for Sierra Leone to revisit its economic planning policies, focusing on reducing dependency on primary commodities and fostering local value addition.
4. The Emerging Multipolar World Order
4.1 The Decline of U.S. Dominance
The decline of U.S. dominance is evidenced by economic stagnation, rising national debt, and political polarization, which have constrained its ability to unilaterally shape global economic policies (Adams,
2021). For Sierra Leone, this decline has both positive and negative implications. On one hand, it opens opportunities to diversify trade and investment partners. On the other hand, it reduces the leverage Sierra Leone might have had in securing favourable trade terms under a U.S.-led liberal
economic order.
The retreat of the U.S. from multilateral institutions and its reduced aid budgets also mean that Sierra Leone must seek alternative sources of funding for infrastructure and development projects. This has led to a growing dependence on China and other emerging powers, whose aid and investments often come with fewer governance conditions but higher long-term risks (Lee, 2020). Â
4.2 Rise of China and Other Emerging Powers
China's Belt and Road Initiative (BRI) has become a cornerstone of its global strategy, focusing on infrastructure investments in developing countries, including Sierra Leone. Chinese investments in roads, ports, and energy projects in Sierra Leone have significantly improved the country’s infrastructure. However, many of these projects have been financed through loans secured by natural resources, raising concerns about debt sustainability and sovereignty risks (Brautigam, 2020).
India and Turkey have also increased their presence in Sierra Leone, competing for access to resources and strategic markets. This growing multipolarity presents an opportunity for Sierra Leone to leverage
competition among emerging powers to secure better investment terms. However, it also necessitates a sophisticated economic planning strategy to balance these competing interests effectively.
5. Challenges for Resource-Rich but Underdeveloped Countries: The Case of Sierra Leone
5.1 Economic Dependence on Extractive Industries
Sierra Leone’s economy is heavily reliant on mineral exports, which accounted for over 80% of its export revenues in 2019 (World Bank, 2020). This dependence on primary commodities exposes the economy to significant risks due to volatile global commodity prices. The 2014-2016 collapse in iron ore prices, for example, led to a severe recession, highlighting the dangers of an undiversified economic base.
To address this issue, Sierra Leone must revisit its economic planning policies to promote industrialization and value addition to raw materials. Investments in agribusiness, manufacturing, and services can help reduce reliance on mineral exports and create more resilient economic
structures.
5.2 Institutional Weakness and Governance Challenges
Corruption and weak institutions have been significant impediments to effective resource management in Sierra Leone. The country ranked 119th out of 180 on the Transparency International Corruption Perceptions Index in 2020, reflecting widespread governance challenges (Transparency International, 2020).
Institutional reforms focusing on transparency, accountability, and the rule of law are essential for Sierra Leone to manage its resource wealth effectively. Strengthening anti-corruption agencies,
enhancing judicial independence, and implementing transparent contract negotiation processes can help attract sustainable investments and improve public confidence in the government's ability to manage resource revenues.
5.3 Infrastructure Deficits and Technological Dependence
Sierra Leone's infrastructure deficit is a significant barrier to economic diversification and inclusive growth. Poor road networks, unreliable electricity supply, and limited digital infrastructure hinder the
development of manufacturing and services sectors (Smith, 2019). Chinese investments have addressed some of these gaps, but the lack of technology transfer and skills development raises concerns about the sustainability of these projects.
Economic planning should prioritize investments in transport, energy, and digital infrastructure that support a diversified economic base rather than focusing solely on resource extraction. Developing
local technical capacities through vocational training and partnerships with foreign investors can also help reduce technological dependence.
5.4 Environmental Degradation and Socioeconomic Costs
Unregulated mining has led to severe environmental degradation in Sierra Leone, including deforestation, water pollution, and loss of biodiversity. These environmental costs disproportionately affect rural communities, exacerbating poverty and social tensions (Greenpeace, 2021).
Economic planning must integrate environmental sustainability into resource management strategies. Strengthening environmental regulations, enforcing corporate social responsibility (CSR) standards, and investing in renewable energy sources can help mitigate the environmental impact of resource extraction.
6. Strategic Risks in the New Global Order
6.1 Debt Traps and Financial Dependencies
China’s infrastructure investments in Sierra Leone have been primarily financed through concessional loans tied to natural resource exports. The IMF reported that Sierra Leone’s debt-to-GDP ratio reached over 70% in 2020, raising concerns about debt sustainability and the risk of default (IMF, 2020). The Lungi Bridge project, for instance, which was to be financed through a Chinese loan, sparked debates on its economic viability and the potential loss of sovereignty if Sierra Leone failed to service its debts.
Debt dependencies not only constrain fiscal space for social and developmental spending but also limit policy autonomy. Revisiting loan agreements to include more favourable repayment terms and prioritizing grant financing over loans can help mitigate these risks.
6.2 Exploitative Trade Agreements and Resource Control
Many of Sierra Leone's trade agreements prioritize raw material exports without sufficient provisions for local value addition or technology transfer. These agreements often include tax holidays and other
incentives for foreign investors, reducing potential public revenues. For example, the agreements with iron ore mining companies in Tonkolili and Marampa provided significant tax breaks but limited local employment and technology transfer benefits (Stiglitz, 2017).
Revisiting these trade agreements to incorporate local content requirements, fair revenue-sharing mechanisms, and mandatory technology transfer clauses is essential to maximize the benefits of resource wealth. Strengthening the capacity of trade negotiators and ensuring parliamentary
oversight of trade agreements can also help address these challenges.
6.3 Neo-Colonialism through Technology and Finance
The Digital Silk Road initiative by China has included investments in telecommunications infrastructure in Sierra Leone, such as fibre optic networks and surveillance systems. While these projects enhance digital connectivity, they also create new forms of dependency by locking Sierra Leone into Chinese technology standards and financial systems (Feng, 2019).
To avoid a digital form of neo-colonialism, Sierra Leone should prioritize diversifying its technology partnerships and investing in local IT capabilities. Developing a national data sovereignty strategy that
emphasizes cybersecurity, local data storage, and regulatory oversight can help mitigate the risks of external control over critical digital infrastructure.
7. Revisiting Economic Planning Policies in Donor-Dependent Nations: Lessons from Sierra Leone
7.1 Leveraging Resource Wealth for Sustainable
Development
Sierra Leone’s dependence on donor aid and concessional loans highlights the need for a sovereign wealth fund to manage resource revenues transparently. By investing resource wealth in infrastructure,
education, and healthcare, a sovereign wealth fund can transform mineral wealth into long-term development outcomes (Acemoglu & Robinson, 2012).
Norway’s Oil Fund provides a successful model for Sierra Leone to emulate, with clear governance structures, transparency in resource revenue management, and a focus on intergenerational equity. Establishing a similar fund, coupled with fiscal rules that cap how much of the resource revenue can be spent annually, could help Sierra Leone manage resource volatility and invest in diversified development projects.
7.2 Institutional Strengthening and Good Governance
Effective resource management requires strong institutions that can enforce contracts, regulate industries, and combat corruption. Sierra Leone’s Anti-Corruption Commission (ACC) has made some progress in prosecuting high-profile cases, but the lack of judicial independence and political
interference remains a significant challenge (Transparency International, 2020).
Institutional reforms should focus on enhancing the independence of the judiciary, strengthening anti-corruption agencies, and ensuring transparency in public procurement. Implementing international
standards such as the Extractive Industries Transparency Initiative (EITI) can also improve transparency in the management of resource revenues (EITI, 2018).
7.3 Economic Diversification and Human Capital
Development
Sierra Leone’s heavy reliance on extractive industries underscores the need for economic diversification. Expanding the agribusiness sector, which employs over 60% of the population, and promoting light manufacturing can create more resilient and inclusive growth. Government policies should focus on improving access to credit for small and medium enterprises (SMEs), investing in agricultural value chains, and reducing trade barriers within the Economic Community of West African States (ECOWAS) region (Smith, 2019).
Investing in human capital is equally crucial. Sierra Leone’s education sector faces significant challenges, including low enrolment rates and inadequate vocational training. Aligning education policies with the demands of a diversified economy—such as training in agribusiness, manufacturing, and information technology—can enhance productivity and reduce dependence on resource exports.
7.4 Fair Trade and Transparent Financial Practices
Revisiting trade agreements to prioritize fair trade practices is essential for Sierra Leone’s economic resilience. This includes renegotiating existing agreements to incorporate provisions for local content,
value addition, and equitable revenue sharing. Regional trade agreements, such as the African Continental Free Trade Area (AfCFTA), offer opportunities for Sierra Leone to expand its markets and reduce dependency on traditional trade partners (Stiglitz, 2017).
Transparency in financial practices is also critical.
Adopting the EITI standards and requiring full disclosure of mining contracts can reduce corruption risks and ensure that resource revenues are used for public benefit. Strengthening the role of the Parliament in overseeing financial agreements and resource contracts can enhance accountability and
prevent exploitative practices.
Final Words
The emerging multipolar world order presents both risks and opportunities for resource-rich but underdeveloped countries like Sierra Leone. While investments from China and other emerging powers offer prospects for infrastructure development, they also raise concerns about debt dependency, sovereignty risks, and neo-colonial economic relationships.
To navigate these challenges effectively, Sierra Leone must revisit its economic planning policies with a focus on institutional strengthening, economic diversification, and transparent management of resource wealth. Establishing a sovereign wealth fund, enhancing governance frameworks,
and prioritizing education and infrastructure investments can transform mineral wealth into a foundation for inclusive and sustainable development.
By adopting a proactive and transparent approach to managing its resource wealth, Sierra Leone can reduce dependency on donor aid, build a resilient economy, and ensure that its resource wealth benefits all citizens. Â
9. References
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About the Writer
Mohamed Boye Jallo Jamboria is a Sierra Leonean educator, consultant, and writer based in Bergen, Norway, with a diverse professional background in rural community development, agribusiness, and public service. From 2011 to 2015, he served two terms as a councillor for the Liberal Party in Lindås Municipality, Norway, and was a member of the Gender and Equality Committee, advocating for inclusive policies and social equity.
In the media sphere, Jamboria hosts the Redemption Broadcast Network (RBN) podcast, which addresses Sierra Leone's societal and developmental challenges, focusing on the social and psychological factors influencing human behaviour and national progress. He also manages a YouTube channels @RbnLiveTV that promotes advocacy for social justice, trust building and Youth Empowerment and the Aboulay Education vision, advocating for mother tongue languages in teaching to enhance education in Sierra Leone.
Jamboria is the president of the ScanAfrik Foundation, an NGO that supports the interests of Africans in Norway and across the continent. He shares his insights through his blog on Google Blogger at redemptionnetwork.blogspot.com
and on Salone Redeemer at https://saloneredeemer.com. His online radio platform can be accessed at rbnlive.webradiosite.com.
Social Media Presence:
Jamboria also contributes to The Patriotic Vanguard and other platforms, advocating for Sierra Leone’s development. For more insights, visit his blog, social media profiles, or listen to his online radio.
