Development Dimension SMEs in Libya's Reconstruction Preparing for a Post-Conflict Economy (eBook)

Oecd (Autor)

eBook Download: PDF

2016 | 1. Auflage
128 Seiten
OECD Publishing (Verlag)
978-92-64-26420-5 (ISBN)

Infos

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.

Inhalt

Table of contents 7
Foreword 5
Abbreviations and acronyms 11
Executive summary 15
Chapter 1. Libya’s conflict and implications for private sector development 17
1.1. Libya’s political context 18
Table 1.1. Major events during 2011-2016 in Libya 18
1.2. Fragility in Libya and implications for private sector development 20
1.3. Principles for Good International Engagement in Fragile States 21
Box 1.1. Lessons learned working on Iraq’s investment framework 22
Notes 23
References 23
Chapter 2. Libya’s private sector and SME landscape 25
2.1. Libya’s private sector 26
Figure 2.1. Total output value of key sectors and private sector share, 2014 26
2.2. SME definition and landscape 27
Table 2.1. 2006 Business Census results by broad economic sectors 28
2.3. SME performance 28
2.4. Regional and local variations 29
2.5. Entrepreneurial activity levels 30
Low levels of entrepreneurial activity and high discontinuance rate 30
Figure 2.2. Entrepreneurial activity rates in Libya compared to factor-driven economies, GEM 2013 31
Figure 2.3. Early-stage entrepreneurial rates by age, education and household income level, Libya 2013 32
Positive perception of entrepreneurship but low levels of self-confidence 32
Gender gaps in entrepreneurial activity 32
2.6. The informal economy 33
Box 2.1. Efforts of some MENA governments to increase formality among SMEs 34
2.7. Challenges faced by Libyan SMEs 35
Figure 2.4. Percentage of enterprises rating obstacles to operation and growth as “very severe” or “major” 35
Notes 36
References 37
Chapter 3. Framework conditions for private sector development in Libya 41
3.1. Economic diversification 42
Obstacles to diversification in resource-rich economies 42
Non-diversified productive structure 43
Table 3.1. Composition and competitiveness of the Libyan export basket, 2010 43
Figure 3.1. Libya’s product space compared to Norway and the United Arab Emirates, 2014 44
Potential sectors for development 45
Figure 3.2. The emerging champions of the Libyan economy: A revealed comparative advantage analysis of product community classifications 46
Table 3.2. Potential opportunities for diversifying Libya’s productive structure 46
3.2. Macroeconomic policies 47
GDP volatility from oil price decrease and production disruptions 47
Figure 3.3. Level and rate of change of Libyan GDP, 2000-20 48
Figure 3.4. Libyan GDP per capita compared to GDP in constant prices, 2000-14 48
Deteriorating fiscal position 48
Figure 3.5. Government revenue from oil and non-oil sources, 2007-14 49
Figure 3.6. Composition of non-oil government revenues in the Libyan public budget, 2007-14 49
Table 3.3. Current account balance, selected years 50
3.3. Quality of infrastructure 50
Table 3.4. Quality of Libya’s infrastructure 51
3.4. Labour market 52
High unemployment 52
Table 3.5. Labour market overview, 2012 52
Dependency on public sector jobs 53
Quality of education and workforce skills 54
Table 3.6. Education attainment of population aged 15+, Libya, 1990-2015 54
Deficiencies in labour institutions 55
Labour regulations 56
3.5. Financial markets and access to finance 57
Low level of credit to the private sector 57
Figure 3.7. Domestic credit to the private sector (% of GDP), 2010 and 2014 58
Figure 3.8. Domestic credit to the private sector by banks, 2010 and 2014 58
Adoption of Islamic Banking 59
Underdeveloped equity markets 60
3.6. Investment policy and legal framework 60
Figure 3.9. Libya’s trends in net FDI inflows and share of GDP, 2000-14 61
Box 3.1. Iraq’s investment policy framework 63
3.7. Trade policies 63
Figure 3.10. Trends in Libya’s exports and imports, 2000-14 64
3.8. Innovation system 65
Poor performance on indicators of technological readiness and innovation 65
Table 3.7. Strength of Libya’s innovation performance and technological readiness 66
Weak protection of intellectual property 66
Table 3.8. Performance of Libya on the Intellectual Property Rights Index, 2015 67
Fragmentation and lack of co-ordination of innovation system components 67
3.9. SOE policies 68
Box 3.2. Privatisation examples in Western Balkans 69
3.10. Regulatory framework and business climate 70
Business laws and regulations 70
Box 3.3. The legal structure of companies – a constantly changing landscape 71
Bankruptcy regulation 72
Competition laws 73
Administrative burdens for entry and growth 73
Land and property rights 74
Tax obligations and administration 75
3.11. Corruption 76
Table 3.9. High and persistent level of corruption perceptions in Libya 77
Box 3.4. MENA-OECD Business Integrity Network 78
Annex 3.A1. Libyan stakeholder input on potential sectors – OECD Working Group 2015 79
Notes 84
References 86
Chapter 4. Libya’s SME policies 91
4.1. Institutional framework 92
Main institutions 92
Co-ordination mechanisms 93
Public-private consultation mechanisms 93
4.2. SME policy measures 94
4.2.1. SME financing programmes 94
4.2.2. Entrepreneurship development and start-up support 97
Box 4.1. Good practice in management of national incubation systems 100
Complementary start-up and entrepreneurship support programmes and initiatives 100
4.2.3. Capacity building of existing SMEs 101
Box 4.2. Algeria’s SME upgrading programme 102
4.2.4. Access to domestic markets: procurement policies and supply chain linkages 103
Box 4.3. SME-related public procurement policies in selected MENA countries 104
Box 4.4. Policy options in trade for GVC integration by SMEs in low-income developing countries 106
4.2.5. International market access: export development support 107
Box 4.5. Supporting SME exporters in Morocco 108
4.2.6. Innovation and technological development support 108
4.2.7. Promoting an entrepreneurial culture 109
Box 4.6. GIZ recommendations on educational and employability challenges of Libyan youth 110
Notes 111
References 112
Chapter 5. Recommendations for SME policies in post-conflict Libya 115
5.1. Implications for SME policies in post-conflict Libya 116
Box 5.1. Priority sectors for diversification 116
Table 5.1. Summary of institutional and legal framework and key related recommendations 117
5.2. Policy recommendations to support SMEs 118
5.3. Developing a national SME strategy 122
Box 5.2. Setting up a monitoring and evaluation framework for SME policies 122
The process to develop an SME strategy 123
Box 5.3. Turkey’s new SME strategy 124
Note 126
References 127

Produkt-Details

• Erscheint lt. Verlag: 7.9.2016
• Sprache: englisch
• Themenwelt: Wirtschaft ► Volkswirtschaftslehre ► Makroökonomie
• ISBN-10: 92-64-26420-5 / 9264264205
• ISBN-13: 978-92-64-26420-5 / 9789264264205