The thesis critically examines major theories within the debate concerning authoritarianism, resource wealth and economic development in order to explain developments in Libya’s economy in the past...Show moreThe thesis critically examines major theories within the debate concerning authoritarianism, resource wealth and economic development in order to explain developments in Libya’s economy in the past 50 years. The literature review presents some perspectives regarding authoritarianism as a factor of economic stagnation and as a requirement for initial stages of economic development. With regard to resource wealth, the paper mainly relies on the resource curse theory and the staple thesis, which conceive resources respectively as a curse and a blessing. The focus of this paper is analysing how these two factors, namely authoritarianism and resource wealth, have remarkable effects on economic development through their debilitative effects on institutions, while arguing that effective and accountable institutions are fundamental in fostering economic development due to their contribution in setting a legal framework marked by a good rule of law, anti-corruption policies and regulations. The institutional question is therefore central to this paper, which presents the developmental prospects of the Libyan economy as being undermined by the country’s statelessness, perpetrated by weak institutions and lack of capacity. The conclusion is that the underdevelopment of Libya’s institutions, fostered by authoritarian rule and resource wealth, was the driving force in undermining Libya’s economic development.Show less
