SMEs in Libya's Reconstruction
Preparing for a Post-Conflict Economy
The report is intended to contribute to the implementation of policies in a post-conflict Libya to promote private sector development. The report analyses the structural economic and framework conditions prevalent in Libya, highlights potential drivers of development and considers the role of SMEs and entrepreneurship promotion in driving post-conflict recovery. Based on international experience and practices, and considering the context of the country, the report identifies the necessary legal frameworks, institutions and policies for the promotion of SME and entrepreneurship. The document is part of a wider MENA Transition Fund project to support the design and implementation of SME policies in Libya.
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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.
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