No Result
View All Result
Saturday, June 10, 2023
27 °c
Tripoli
23 ° Sun
23 ° Mon
24 ° Tue
26 ° Wed
  • Advertising
  • Contact
LibyaHerald
 
  • Home
  • Libya
  • Business
  • Opinion
  • Magazine
  • Advertising
  • Login
  • Register
SUBSCRIBE
  • Home
  • Libya
  • Business
  • Opinion
  • Magazine
  • Advertising
  • Login
  • Register
No Result
View All Result
LibyaHerald
No Result
View All Result
Home Business

Libya’s growing shadow economy threatens more destabilisation says report

bySami Zaptia
June 10, 2017
Reading Time: 2 mins read
A A
Libya’s growing shadow economy threatens more destabilisation says report

The shadow economy (black market) is destabilizing Libya the report says (Photo: Social media).

13
SHARES
55
VIEWS
Share on FacebookShare on Twitter

By Sami Zaptia.

The shadow economy (black market) is destabilizing Libya the report says (Photo: Social media).
The shadow economy (black market) is destabilizing Libya the report says (Photo: Social media)

London, 10 June 2017:

A dangerous black market is growing across Libya that disproportionately affects an already vulnerable population and threatens to further destabilize the fragile economy. That’s according to a new report out from the US NGO Mercy Corps.

“A shadow economy is corroding Libya and becoming increasingly intractable,” says Giovanni Sciolto, Mercy Corps’ team leader in Libya. “It’s potential to jeopardize the overall health of Libya should not be underestimated.”

Libya has been in a state of turmoil since the overthrow of longtime leader Muammar Qaddafi in 2011. The country has since seen a drop in its gross domestic product, drastic depreciation of the Libyan dinar, severe liquidity shortage and rapid inflation. As a result, basic commodities are becoming progressively unaffordable; the price of one loaf of bread is now five times higher than it was in 2014, the report says.

RELATED POSTS

Aldabaiba proposes new Road Map for holding elections, loans and land for youth and money for healthcare for war wounded

Cooperation agreements reached between Libyan and the Greek pharmaceutical and medical companies: Tripoli Chamber of Commerce

The shadow economy – which is generally characterized by work done for cash, taxes not paid and regulations not followed – has grown in response, a force which both feeds on the liquidity crisis and exacerbates it. Estimates show that more than half the money circulating in Libya now moves within the informal sector, the report added.

In addition to soaring food prices, civil and social services have suffered in its wake. Public health facilities often lack medical equipment and medicine. Expensive private clinics – out of reach for many people – are often the only option. Even citizens who attempt to stay in the formal economy can be pushed into coping strategies that involve the black market, the report explained.

“While economic hardship is felt across the social spectrum, it disproportionally impacts vulnerable communities who are already dealing with significant challenges such as armed conflict and deterioration of security in several parts of the country,” says Sciolto.

The report made nine main findings:

1-The economic crisis and the rapid rise of the shadow economy since 2014 has a significant impact on vulnerability of Libyans;

2-State’s growing budget deficit, restrictive banking policies, peripheral security and precarious political conditions pave the way for an acute shortage of liquidity and prices inflation;

3-With a large majority5 of Libyans on State payroll, salaries continue to be paid, but civilians face concerning challenges to access incomes;

4-Informal monetary transactions have increased as businesses and individuals seek alternative ways to obtain cash;

5-Elaborate schemes exploiting the growing gap between official and black market exchange rates have placed additional strain on the State budget and aggravated inflation;

6-A lack of transparency and accountability within the banking sector erodes consumers’ trust and nurtures unsustainable economic patterns;

7-Militias and armed actors are heavily involved in the shadow economy, engaging in financial fraud, extortion and robbery;

8-Despite significant efforts, policymakers and the Central Bank of Libya have largely failed to tackle the liquidity crisis or curb manifestations of the shadow economy;

9-Some commercial banks and financial service providers have devised new payment methods such as electronic payments and travellers’ cheques to help alleviate the impact of the cash shortage; these methods may prove useful channels for reaching beneficiaries in Libya

The report, published at the beginning of this month, calls on policymakers to address the crisis through a number of strategies, including working with financial service providers to create more transparency and accountability. “There are known solutions to this problem,” says Sciolto. “What we need now is to make those solutions a reality.”

 
Tags: black market shadow economyfeatured
Share5Tweet3Share1

Related Posts

Expertise France publishes top 20 reforms guide to improving the business environment in Libya
Business

Expertise France publishes top 20 reforms guide to improving the business environment in Libya

June 10, 2023
Militias continue to block departure of brand new Afriqiyah A330-300 from Mitiga
Business

After an 8-year lease, Afriqiyiah plane returns to Tripoli from Istanbul

June 10, 2023
NOC announces force majeure at Zawia port
Business

NOC to resume operations at the Jikharra gas exploitation plant in contractual area 91

June 10, 2023
LPTIC confusion and political in-fighting – chairman abroad since summer
Business

Agreement signed to link Italy with Libya through a submarine cable

June 10, 2023
Top international logistic and shipping liners are participating in Shippex 2023
Business

Top international logistic and shipping liners are participating in Shippex 2023

June 9, 2023
The Restaurant and Food Show – Benghazi 2 to 5 October
Business

The Restaurant and Food Show – Benghazi 2 to 5 October

June 7, 2023
Next Post

UN Libya Experts Panel final report reveals complex obstacles to LPA implementation

LISCO accused of hosting BRSC in Misrata: UN report

LISCO accused of hosting BRSC in Misrata: UN report

 

Advertise on LibyaHerald

Reach thousands of our site visitors daily

240 x 400px

Advertise Here
ADVERTISEMENT

Top Stories

  • British Libyan Business Association and the Libyan Business Council sign MoU

    British Libyan Business Association and the Libyan Business Council sign MoU

    85 shares
    Share 35 Tweet 21
  • AMLY School is offering an innovative approach to learning in Libya

    73 shares
    Share 30 Tweet 18
  • Libyan PM Aldabaiba leads high level ministerial delegation to Rome: multi-sector MoU’s signed

    70 shares
    Share 28 Tweet 18
  • Libya invites German companies to resume their projects and invest in Libya

    64 shares
    Share 26 Tweet 16
  • HB Group opens Apple authorised I-Shop reseller in Tripoli’s Siyahia

    88 shares
    Share 35 Tweet 22
LibyaHerald

The Libya Herald first appeared on 17 February 2012 – the first anniversary of the Libyan Revolution. Since then, it has become a favourite go-to source on news about Libya, for many in Libya and around the world, regularly attracting millions of hits.

Recent News

Expertise France publishes top 20 reforms guide to improving the business environment in Libya

After an 8-year lease, Afriqiyiah plane returns to Tripoli from Istanbul

Sitemap

  • Why subscribe?
  • Terms & Conditions
  • FAQs
  • Copyright & Intellectual Property Rights
  • Subscribe now

Newsletters

    Be the first to know latest important news & events directly to your inbox.

    Sending ...

    By signing up, I agree to our TOS and Privacy Policy.

    © 2022 LibyaHerald - Powered by Sparx Solutions.

    No Result
    View All Result
    • Login
    • Sign Up
    • Cart
    • Libya
    • Business
    • Advertising
    • About us
    • BusinessEye Magazine
    • Letters
    • Features
    • Why subscribe?
    • FAQs
    • Contact

    © 2022 LibyaHerald - Powered by Sparx Solutions.

    Welcome Back!

    Sign In with Facebook
    Sign In with Linked In
    OR

    Login to your account below

    Forgotten Password? Sign Up

    Create New Account!

    Sign Up with Facebook
    Sign Up with Linked In
    OR

    Fill the forms bellow to register

    *By registering into our website, you agree to the Terms & Conditions and Privacy Policy.
    All fields are required. Log In

    Retrieve your password

    Please enter your username or email address to reset your password.

    Log In
    This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
    Are you sure want to unlock this post?
    Unlock left : 0
    Are you sure want to cancel subscription?