Managing political risk in middle east: focus on Libya
Before 2011, Libya was Africa’s third largest and the worlds 17th largest oil producer, pumping out 1.6 million barrels (2% of world total) a day. Over 85% of its crude oil was exported. February 2011 protesters and government clashed. Things quickly turned into a civil war between the rebel-comtrolled East, and the government controlled West. Foreign nationals were evacuated as were multinational oil companies. These foreign nationals and oil companies did not know what to do. They were bound by law, and also had a moral and ethical responsibility to safeguard shareholders’ assets, and also take care of their employees and their families. As of April 2011, no one knew how long things would take to end, or how they would. Abandoned assets and loss of revenue, the multinational companies could not afford to have future plans.
1. What are their current political and legal systems? The first elected government official was sworn in on November 14, 2012. What economic system do they practice? They have a command economy. The government decides how their resources are used. What are their rules and regulations related to property rights and intellectual property rights? They do not have much property rights. It is all still getting figured out. In the past personal property could be taken by the government and given to poor.
2. Has the conflict ended? After Muammer Qaddafi was murdered, the civil war ended. The new president is working on fixing things. What happened to Muammar Qaddafi? He was beaten to death in his home town by Libyan rebels. Who is the current president? In July 2012, elections were held for a General national Congress. This was the first free national election in six decades. The new prime minister is Ali Zeidan.
3.What lessons can be learned about political risk in countries run by totalitarian regimes such as those in the Middle East? They can be very profitable because they do have resources that other countries utilize, but there is huge
1. What are their current political and legal systems? The first elected government official was sworn in on November 14, 2012. What economic system do they practice? They have a command economy. The government decides how their resources are used. What are their rules and regulations related to property rights and intellectual property rights? They do not have much property rights. It is all still getting figured out. In the past personal property could be taken by the government and given to poor.
2. Has the conflict ended? After Muammer Qaddafi was murdered, the civil war ended. The new president is working on fixing things. What happened to Muammar Qaddafi? He was beaten to death in his home town by Libyan rebels. Who is the current president? In July 2012, elections were held for a General national Congress. This was the first free national election in six decades. The new prime minister is Ali Zeidan.
3.What lessons can be learned about political risk in countries run by totalitarian regimes such as those in the Middle East? They can be very profitable because they do have resources that other countries utilize, but there is huge
Cited: "Libya." Land Tenure and Property Rights Portal. N.p., n.d. Web. 30 Jan. 2014 "The Political Situation in Libya." U.S. Department of State. U.S. Department of State, 27 Apr. 2012. Web. 30 Jan. 2014. "World." World How Did Gaddafi Die A Year Later Unanswered Questions and Bad Blood Comments. N.p., n.d. Web. 30 Jan. 2014.