Privatization Policy in Libyan Economy Motivation - Positivisty and Negativity

Document Type : Research articles.

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Abstract

The unsuccessful trail of governmental industry and the failure of public sector in
managing and using available resources in economical efficient way. Also, the
international situation which pushed toward shifting to market economy, where the
privatization policy is the main step which should be followed to make that change. The
aim of this study is to review the international and national motivation pushing toward the
application of policies to shift to market economy. In this study, the main indicators of
the Libyan economy during 1973-2002 have been analyzed which in general was
recognized by high rate of growth (9.6%) and (7.3%) in seventies. After that, in eighties
and nineties, the Libyan economy started with a stage of non stabilized rates of growth
and provided negative or low positive rates of growth. These happened while investment
and capital accumulation experienced low rates because of slow growth of GNP and
exclusive of the privet sector to participate in development program. These lead to deficit
in public finance and its ability to fulfill the needs of investment and consumption
sectors. Also, the rates of implementation of productive resources in general companies
have been slow down because of the shortage in row materials and other inputs which
lead to shutdown of most of industrial and agricultural projects as a result of poor
management and weakness of monetary frameworks. This study expected positive effects
of the privatization program on public finance, but its negative effect expected to be on
the labor sector in the short run. In the long run, the study expected the negative effects to
be vanished because of the increase in privet and public investments. The study
recommends to apply the performance of monetary and financing policies at the same
time of applying the privatization program to ashore its success, and also, establishment
of the Libyan monetary market and setting up the management roles in all sectors. This
study, also, recommended the performance of general public acceptance of privatization
policy


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