Who loses when FDI fails? Local experiences with plantation investment and divestment in Liberia

While the merits of foreign direct investment (FDI) in producing economic growth for the host country have been debated, one seldom considered outcome of FDI is failure resulting in divestment. Little consideration has been given to the ways in which foreign divestment impacts local communities. This paper presents a case study of the Sime Darby Liberia plantation using qualitative in-depth interviews with community members surrounding the site. The cycle of investment and divestment has shaped the experiences and livelihoods of people living in the area regarding land concessions, employment, and plantation management transitions. While divestment can create undesirable outcomes for all parties involved, the structures of FDI set local people up to take the biggest losses in the case of FDI failure. • Foreign divestment from plantation agriculture has significant impacts for local people. • New investors were not obligated to honor previous agreements between land holders and the divesting company. • The availability and nature of employment was a key concern for communities surrounding the plantation. • Unkept promises, exploitation of labor, and privatization of common goods demonstrate the dispossession of local people.