Like many other African country, structural reform was implemented in Libya as a part of the economic reform program. The Libyan government wanted drive their economic reform process through structural reform. In this paper, we will discuss about the process and effect of structural reform in Libya.
Structural Reform in Libya had been espoused to integrate the country’s economy into the global economy and restructure the domestic economy. Libya’s economy strongly depended on oil business. The main aim of the government was to determine a business friendly policies for investment and trade.
The Libyan government introduced some new plans for modern legislation to encourage market competition. A new competition authority had been established and all the hindrances of trade and investment had been removed.
Corporate costs had been minimized and the subsidies to the farmers was revised. The government introduced a micro-credit plan to the rural enterprises and improved the loan guarantee schemes. Lot of attention had been given on the development of the agricultural processing, tourism and jewelery industries.
Moreover, several measures, like determining the customs legislation, competition law, social security requirements, trade law etc, had been taken to improve the regulatory and administrative structure.
The Libyan government started a comprehensive reform program for the companies in accordance with the European Union’s framework. A number of companies from different sectors, like electricity water, telecommunication and transport, had been privatized by the government. Taxes had been minimized and non tariff barriers were abolished according to Libya’s agreement with the European Union.
The government initiated some serious steps to prevent corruption. Several laws had been formed for this purpose. The government also had taken some policies to open the political space up and make the public policies more accountable. A new legislation for offering more freedoms to the labors had been introduced in 2004. The labors were allowed to form union or organize public meetings.
Women were given the political right which was a big step of structural reform. Several important ambassadorial and ministerial posts had been offered to them as well. Domestic economic policies were made more transparent to encourage the private enterprises for trading.
Effect of Structural Reform:
Through structural reform the regional authorities in Libya were able to set some effective public policies. Strong progress had been made in enhancing the mechanisms for better accountability of the government. Moreover, a better policy for trade and investment had come though this reform, which drove the country’s economic growth.
Last Updated on : 26th June 2013