The Role of Privatization in Achieving Economic Development

Abstract

This study examines privatization and its role in restructuring the relationship between the public and private sectors to achieve economic efficiency, with a focus on its success requirements in Libya. The study posits that privatization is not merely the transfer of ownership, but a path toward institutional and economic reform aimed at improving resource utilization, stimulating investment, and enhancing service quality. The study analyzes the concept, objectives, risks, and obstacles of privatization, alongside the evolving role of the state and the importance of public-private partnerships (PPPs) in light of international and Arab experiences. It also examines the legislative and institutional environment in Libya, identifying essential policies for success, such as restructuring, promoting competition, and establishing governance and transparency frameworks. The study employs descriptive-analytical and comparative approaches. It concludes that the success of privatization depends on the quality of the institutional environment and the state's regulatory capacity. The study recommends adopting selective and gradual privatization, implementing prior structural reforms, and linking privatization revenues to development investment to diversify the Libyan economy.