On February 9, the executive board of the International Monetary Fund (IMF) concluded its Article IV consultation with Libya and reported its findings in Public Information Notice No 11/23 dated February 15. The board described the main challenges facing Libya as "the need to provide employment opportunities for a young and growing labour force, and the steadfast implementation of reforms to diversify the economy and reduce the high dependence on oil revenue." Specifically, the directors welcomed Libya's "strong macroeconomic performance and the progress on enhancing the role of the private sector and supporting growth in the non-oil economy," and commended "the efforts to strengthen public financial management, including the new and simplified income tax law and the effective unification of current and investment budgets."
The directors noted that "recent developments in neighbouring Egypt and Tunisia have had limited economic impact on Libya so far" and that the "government abolished on January 16, 2011, taxes and custom duties on locally produced and imported food products" to counter the impact of higher global food prices. The directors also welcomed "the passing of the Libyan Investment Authority law, which enhances its regulatory and operational framework" and encouraged the authorities to further advance structural reforms to support private sector development. Finally, the directors commended the Libyan authorities for their "ambitious reform agenda and looked forward to the effective implementation of the many important laws passed in the last year, complemented by policies aimed at adapting the labour force to the economic transformation."
The B-plus grade which the IMF directors gave to Libya, the Socialist People's Libyan Arab Jamahiriya, for its economic and financial management seems inconsistent with the current one-dimensional view portrayed in the international press that Libya is a country led by a "mad dictator" who is bent on crushing opposition even if it means the massacre of his own people.
Philip C Nunez
Newtown, Port-of-Spain