Historically, the Liberian economy depended heavily on iron ore and rubber exports, foreign direct investment, as well as the export of its other natural resources, such as timber. Agricultural products include livestock and rice, the staple food. Fish are raised on inland farms and caught along the coast. Other foods are imported to support the population. Electricity is provided by dams and oil-fired plants.

Foreign trade was primarily conducted for the benefit of the Americo-Liberian elite, with trade between foreigners and indigenous Liberians severely restricted throughout most of its history by the 1864 Ports of Entry Act. Little foreign direct investment benefited the 95% majority population, who were often subjected to forced labor on foreign concessions. Liberian law often did not protect indigenous Liberians from the extraction of rents and arbitrary taxation, with the majority surviving on subsistence farming and low wage work on foreign concessions.

While official export figures for commodities declined during the 1990’s civil war as many investors fled, Liberia’s wartime economy featured the exploitation of the region’s diamond wealth, with the country acting as a major trader in Liberian, Sierra Leonian and Angolan blood diamonds, exporting over $300 million in diamonds annually. This led to a United Nations ban on Liberian diamond exports, which was lifted on April 27, 2007. Other commodity exports continued during the war, in part due to illicit agreements struck between Liberia’s warlords and foreign concessionaires. Looting and war profiteering destroyed nearly the entire infrastructure of the country, such that the Monrovian capital was without running water and electricity (except for fuel-powered generators) by the time the first elected post-war government began to institute development and reforms in 2006. Although some official exporting and legitimate business activity resumed once the hostilities ended (for instance, Liberia signed a new deal with steel giant Mittal for the export of iron ore in summer 2005), as of mid-2006 Liberia was dependent on foreign aid, and carried a debt overhang of $3.5 billion. Liberia currently has an approximate 85% unemployment rate (EST. 2003), the second highest in the world, behind only Nauru.