ECONOMIC BENEFITS RESULTING FROM THE SALE OF PUBLIC SECTOR PROPERTY

Abstract

The purpose of the research is to explain and define the concept of privatization for its implementation and prevention of its negative effects. It also aims to identify effective strategies for eliminating barriers that hinder the successful implementation of the privatization program. The two research questions that this paper deals with are the following: a) How successful is the experience of reforming the public sector in Libya and some countries by focusing on activating the development role of the private sector (through the privatization mechanism)? B) To what extent has the privatization policy, as part of broader economic reform programs, been successful in overcoming the obstacles hindering the development sectors in Libya and other countries? The key literature informing this research highlights privatization as a novel approach that has yielded positive outcomes in some countries, while resulting in failures in others. This variability underscores the significance of the topic and the need for continued research and analysis. In this context, the literature available in Arabic studies was thoroughly examined. Qualitative research design is focused on studying, analysing and evaluating the reality of economic reform of the public sector and activating the developmental role through applying the privatization mechanism. The research methods employed focus on privatization as a strategy to enhance economic growth by improving institutional efficiency and reducing the burdens on the public sector. Ultimately, the goal is to stimulate key economic sectors, ensuring the optimal utilization of economic resources for long-term development. The research presents two main findings: Firstly, the buyer grants business sector units all the rights and freedoms available to private sector companies, as defined by prevailing laws and regulations. Secondly, equal opportunities must be provided to all individuals interested in purchasing part or all of the shares in certain companies, subject to the legal restrictions in place. The policy implications suggest that privatization, if not accompanied by proper legal regulation, can lead to negative outcomes and adverse financial consequences. To prevent economic setbacks, it is essential to liberalize capital markets and natural monopolies in alignment with effective legal frameworks. The practical implications highlight that the implementation of privatization can yield significant economic benefits, both at the macroeconomic and microeconomic levels. These benefits depend on selecting the most suitable methods for privatization, tailored to the priorities and specific circumstances of the economy.