The Private Sector in Libya and its Role in Promoting Local Economic Development: A Case Study of Sabha Municipality

Abstract

This study aims to identify the reality of the private sector in Libya and the extent of its contribution to the local economic development in Sabha Municipality. It combines the descriptive, analytical, historical approach. The study found that the number of private sector institutions in Sebha has increased significantly during the study period, but the local tax revenues have fluctuated during the same period. The private education in Sabha has witnessed a remarkable development not only in terms of the number of schools, or in terms of attended students or in terms of providing job opportunities to the local citizens, but the annual growth rate of students attended to private schools exceeds that of public schools. The study also found that the private sector in Sabha Municipality faces many overlapping challenges and obstacles which limit its growth and development. The most prominent of these obstacles are tribal conflicts and the worsening of the security situation, the absence of political stability and lack of funding in all of its forms which negatively affected the local development in the municipality despite the potential resources owned by the municipality. The study recommends the need to create a stable social, political and security environment that contributes to the growth of the private sector, which in turn contributes to advancing development within the municipality.