“Privatization of national companies.” Corruption and failed experiments threaten development efforts

Tripoli, February 06, 2024 (Al-Anbaa Libya) – The decision issued by the Prime Minister of the National Unity Government, “Abdul Hamid Al-Dabaiba”, which stipulates the transfer of seven public companies to the General Authority for Investment Promotion and Privatization Affairs, as a preliminary step for the privatization of these entities, renewed questions about what will be the consequences of these… The step has economic consequences, especially in light of the failure of many government experiments that moved towards privatizing the government sector.

Resolution No. (46) of 2024 included the transfer of state-owned public companies to the Investment Promotion and Privatization Affairs Authority, in preparation for their privatization for the benefit of the private sector.

The decision included “Shahat and Jarma Shipping Agencies Companies, the International Shipping and Shipping Agencies Company, the General Company for Rapid Transport and the General Company for Roads and Bridges, the Libyan Catering Company and the Libyan Company for Handling and Ground Services.”

The decision caused widespread controversy on social media sites between supporters and opponents, given the great importance these companies represent to citizens, especially since the majority of them work in providing services directly to citizens, and that their exposure to economic shocks may have a direct negative impact on the average citizen.

-Nepotism and corruption

Opponents of the decision believe that the problem is not the privatization of some companies, especially since there are many private companies that have greatly succeeded in increasing their capital, and have had a positive impact on the national economy, whether in Libya or other countries that adopt capitalism as an economic and political method. However, the Libyan state In its current state, it may not be eligible for such a step, in light of the government division, and the absence of a directly elected executive body that can bear the consequences of such a decision.

Observers believe that the matter is becoming more difficult, especially in light of the high indicators of corruption in Libya, and its spread among state sectors, amid widespread objections to government performance related to government deals with the private sector or international companies, as happened in the oil sector recently, as the Minister of Oil and Gas in the unity government was accused of National “Mohamed Aoun” and some international companies, exploiting the political situation in the country to achieve private interests.

Bad experiences in privatization

The situation becomes more difficult if you review the experiences of countries that adopted the privatization model and dismantled their industrial castles, as it negatively affected their national economy, as is the case with Argentina, Egypt and other countries that engaged in implementing the conditions of international economic institutions.

-Support for privatization

On the other hand, many economists and researchers in the economic field advise implementing the privatization system, as is the case with researcher Mustafa Khalifa Belkacem Al-Jadir, associate professor in the Department of Business Administration, Faculty of Economics, University of Tripoli, where he advises in his study published under the title “The Privatization Program in Libya” to adopt a policy Privatization in contemporary economies, with the many benefits and goals that all countries seek.

The researcher points out in his study that by reviewing the results of privatization in Libya, and determining the extent of improvement in the performance of workers in the field of privatization, and given the reality of the Libyan economy, the privatization policy must be activated in many sectors of the Libyan state. (Libyan News Tripoli) S.H.

You can also read the news in the source from the Libyan News Agency