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The role of oil in the development of Libya
Elghawi, Elshames
The major aim of the study was to determine the role of oil in the development in Libya. In an attempt to achieve the aim of the study, both descriptive and quantitative statistics were used. The role of oil on the development of Libya has brought not only benefits, but also challenges to the socioeconomic development in the country. Also, Libyan economy is vulnerable to the global oil shocks as the economy is highly concentrated in the oil sector. Oil is a major source of government revenues, a major source of budget financing, and employment generation in the country. The study also shows that the oil development in Libya has dramatically changed the Libya since it has been discovered, and brought challenges to the traditional economic, culture and has affected the government expenditures and the daily living conditions. Although crude oil production has boosted the oil sector, the local society of the Libyan people have mainly suffered because of the negative impacts and the political instability in the country has brought adverse effects on socioeconomic development in the country. Political stability is a precondition for socioeconomic development. There is an urgent need for the government to support the private sectors, and diversify her economy beyond oil sector. For the living conditions and economy to experience rapid and sustained growth, the government should empower and strengthen all sectors, and provide better services in the country. The government should involve communities in the development process, and develop oil producing communities by providing basic infrastructure such as roads and electricity and hospitals and schools and security of oilfields and refineries.
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