{"id":257523,"date":"2026-07-13T22:20:01","date_gmt":"2026-07-13T20:20:01","guid":{"rendered":"https:\/\/sada.ly\/en\/?p=257523"},"modified":"2026-07-13T22:20:01","modified_gmt":"2026-07-13T20:20:01","slug":"al-hdhiri-where-does-the-real-problem-lie-oil-revenues-or-the-management-of-those-revenues-and-resources","status":"publish","type":"post","link":"https:\/\/sada.ly\/en\/al-hdhiri-where-does-the-real-problem-lie-oil-revenues-or-the-management-of-those-revenues-and-resources\/","title":{"rendered":"Al-Hdhiri: “Where Does the Real Problem Lie, Oil Revenues or the Management of Those Revenues and Resources?”"},"content":{"rendered":"\n
Legal expert in the oil sector, Othman Al-Hdhiri<\/strong>, has written an article.<\/p>\n\n\n\n Libya’s experience during years of oil revenue booms has demonstrated that higher revenues do not necessarily translate into improved economic performance. Instead, in the absence of sound governance, they can deepen structural imbalances. Public spending expanded continuously, while government obligations increased without being based on long-term financial planning. At the same time, ongoing institutional divisions weakened the management of public resources and limited the economy’s ability to achieve stability and sustainable development.<\/p>\n\n\n\n The issue, therefore, is not primarily the level of oil revenues\u2014whether high or low\u2014but rather how those revenues are managed. The analysis can be divided into three main areas.<\/p>\n\n\n\n A. Institutional and Political Division<\/strong> B. Excessive Dependence on Oil<\/strong> C. Expansion of Current Expenditure<\/strong> D. Weak Financial Planning<\/strong> E. Corruption and Weak Governance<\/strong> F. Weak Private Sector<\/strong> G. Exchange Rate and Subsidy Distortions<\/strong> The fundamental issue is not the size of oil revenues<\/strong>, but rather the management of resources and institutions<\/strong>. This is reflected in:<\/p>\n\n\n\n In other words, the crisis is fundamentally a governance and management crisis rather than a resource crisis<\/strong>.<\/p>\n\n\n\n Overall, Libya possesses significant financial and human resources. However, achieving sustainable development requires a transition from an economy dependent on distributing oil revenues to one driven by production and investment, supported by stable institutions and effective governance.<\/p>\n","protected":false},"excerpt":{"rendered":" Legal expert in the oil sector, Othman Al-Hdhiri, has written an article. Libya’s experience during years of oil revenue booms has demonstrated that higher revenues do not necessarily translate into improved economic performance. Instead, in the absence of sound governance, they can deepen structural imbalances. Public spending expanded continuously, while government obligations increased without being […]<\/p>\n","protected":false},"author":13,"featured_media":257524,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"iawp_total_views":0,"_asgm_disable_schema":false,"_asgm_disable_faq":false,"_asgm_disable_howto":false,"_asgm_disable_llms":false,"_asgm_llms_description":"","footnotes":""},"categories":[683],"tags":[613],"class_list":["post-257523","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economic-articles","tag-libya"],"acf":[],"yoast_head":"\nFirst: Current Challenges<\/h3>\n\n\n\n
The existence of two competing governments and parallel institutions has resulted in duplicated public spending and weak coordination of fiscal and economic policies.<\/p>\n\n\n\n
Oil remains the country’s primary source of revenue, making the economy highly vulnerable to fluctuations in oil prices and production levels.<\/p>\n\n\n\n
A large share of the national budget is allocated to salaries, subsidies, and operating expenses, while development and investment spending remain insufficient.<\/p>\n\n\n\n
The absence of medium- and long-term economic planning has led to continued reliance on annual oil revenues to finance government commitments.<\/p>\n\n\n\n
Limited oversight and accountability contribute to wasteful spending and delays in implementing development projects.<\/p>\n\n\n\n
The continued dominance of the state over economic activity discourages private investment, production, and job creation.<\/p>\n\n\n\n
These distortions encourage speculation, smuggling, and the depletion of public resources.<\/p>\n\n\n\nSecond: Where Does the Core Problem Lie?<\/h3>\n\n\n\n
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Third: Urgent Solutions (Within 1\u20132 Years)<\/h3>\n\n\n\n
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Fourth: Long-Term Solutions (3\u201310 Years)<\/h3>\n\n\n\n
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Conclusion<\/h3>\n\n\n\n