Feb 17, 2012

Feb17 economic achievements

Exactly a year after the start of Libyan conflict, Libyan economy is a victim of the absence of political stability and security, a situation which has led to a bitter exodus of foreign direct investment, which was zero during the last year, after reaching 4 billion dollars in 2010 while Gaddafi was alive. 

According to AlArabya, foreign missions are starting to visit Libya now to check the possibility of the resumption of activities, as China plans to restart the 50 abruptly canceled projects of 26 companies worth $ 19 billion in various sectors including real estate, oil and telecommunications. Among the 25 Austrian companies that were operating in Libya before the conflict, 13 companies returned, two working in the oil sector and 11 are monitoring situation.

French, Canadian, British, Qatar and US missions to Libya are concentrated on the oil, construction and arms industry. This was quite expected from the countries which incited Libyan war, arming feb17 insurgents and even putting their own troops on the ground. They have spent a lot of money on bombs which destroyed Libyan infrasructure, all this has to be payed back from vast Libyan funds which were frozen by the same countries in the begining of the insurection. 

The current focus of the countries which were not involved in the Libyan conflict is to restart existing projects, on the other hand, countries which were actively involved in the agression against Libya can chose whatever they would like to do, cause they have a whole country [they destroyed] to rebuild almost from scratch. Their biggest problem for oil extracting are ongoing clashes and instability, although it is still good for arms industry. 

Many companies are waiting to see what will be the results of the elections, how will the US change the economic laws in Libya, and who will benefit from those changes. Under the existing laws it was difficult for foreigners to own Libyan land, and to have a total control over their businesses. 

It is quite impossible to conduct any ordinary business at the present time because of armed clashes, power outages, weak Internet etc.. essential segments such as mobile phones get disconnected for longer periods. Sky-rocket prices of common goods and placement of a maximum bank withdrawals at around $ 600 a month mean a speactacular drop in the consumer spending. And the money came in bank just couple of months ago, when Libyan central money started printing paper. Black market is almost the only market at the moment.

Libyan energy sector needs at least 30 billion dollars, in order to achieve satisfying capacity. Airports , hospitals, schools, infrastructure, roads, communications and touristic attractions need tens of billions of dollars, cause they were heavily bombed and destroyed by NATO. Libya, which had state-of-the-art hospitals, is now importing 'portable' hospitals from Jordan, and sending thousands of Libyans abroad for treatments. 

It seems that members of Feb17 didn't think about the impact of NATO on the Libyan economy, when they called them to bomb Libya

Happy aniversary

BUSINESS SCAVENGERS: SECOND PHASE of Operation UNIFIED PROTECTOR -> http://libyasos.blogspot.com/2011/10/business-scavengers-second-phase-of.html
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