Framework conditions for private sector development in Libya

This chapter examines the framework conditions for private sector and SME development in Libya. It looks at the lack of economic diversification, macroeconomic conditions, infrastructure, labour market, financial market, the innovation system, the regulatory framework, corruption and the rule of law. Past governments have undertaken initiatives that have potential to ease private sector and SME development, but political instability and conflict have brought the reform agenda to a halt, affected the delivery of government services and curtailed implementation of laws and regulations.