Since Libya took the important decision to address the international issues that had enveloped it into an economic siege, a process of change has started. This is a process that has picked considerable momentum.

Last week, while on a visit to Libya, I witnessed the procedures of the General People's Congress which were widely televised in Libya. This is a gathering of grassroots representatives from all over the country which from time to time calls on the government to give account of itself. The Prime Minister and ministers all accounted for the progress in the areas of their remit, gave their vision of future developments and answered questions put forth by the floor.

During this meeting, there was a strong debate over the political organisation in Libya, on how the borders of authority should be redrawn and how the decision-making process should be restructured. It was not an easy debate. But it served to trigger a wider debate in the country, and I believe that it is the beginning of the administrative reforms that are required for the proper implementation of the new policies that are being announced.

This will also entail a political reorganisation to support this administrative restructuring.

It is hoped that these reforms will be such that they ensure the political stability that is required for the economy to grow.

Economic restructuring

Over the past months we have seen noticeable changes to the basic economic structures of the country. As public organisations in the trading sector were dismantled or downsized, the latent private sector is gradually taking over. The industrial sector is also being totally restructured through a process of privatisation and the introduction of incentives for investors to immerse themselves in this sector.

This is presenting a totally new scenario to the foreign business community. It is a totally new scenario also for the Maltese businessman.

On one hand, many international businesses are now finding a clear way for direct access into Libya which previously was denied to them because of the embargoes that were imposed on Libya.

On the other hand, the Libyan government, in a bid to speed up the development of an entrepreneurial culture, has defined several activities as limited to Libyan nationals.

A producing economy

In many instances, this has eliminated the need for the brokering function that many Maltese businessmen conducted in the past. This is a fact of life that has to be accepted. It is useless bemoaning the good old days.

It is worthwhile assessing the new opportunities that are opening up and chart a new way of doing business in Libya. Maltese businessmen must redirect their energies and resources to the new realities that are unfolding and which should result in much bigger opportunities than the past.

It is no longer the time to look at Libya as a procuring economy with which to trade for the supply of its requirements. Libya is now developing into a producing economy that will generate the goods and services that it needs. Even more, Libya will, in the future, expand its product and services generating base to supply the African continent.

Libya has all the resources to develop into such an economy.

Oil gives it the resource to build a strong infrastructure that will support this development and to invest in the human resource development and support that is required. There already exists a good reserve of well educated professionals who are ready to operate in a new economy, given the training that is required to do so.

There is also an ample mineral resource to form a good base of a real manufacturing sector that transforms indigenous raw material into products for the international markets.

The demand is already growing for services, and this will continue to grow as the economy continues to flourish.

Window of opportunity

The moral is, therefore, that the new way to Libya is through a commitment to economic expansion in that country. It is through investing in wealth-generating activities that will fuel this expansion.

For the Maltese businessman who knows the culture and who has the network in Libya, this is a golden opportunity which may also have a limited window of opportunity.

As politicians from all over the world are flocking to Libya, accompanied by an entourage of businessmen scrambling to enter through the doors opened to them by these political contacts, the Libyan landscape will be filling up.

Now is the time for us to act and invest. To create wealth and opportunities for Libya and Malta.

jd@dbms.com.mt

John Dalli, MP, was a member of all Nationalist governments since 1987. First appointed Parliamentary Secretary for Industry, he became Minister of Economic Affairs in May 1990. In 1992, he was appointed Finance Minister, serving in that post for a total of ten years, before moving to the Ministry of Foreign Affairs in March last year.

During his 16 years of service, Mr Dalli was co-chairman of the joint commission between Libya and Malta, and in this capacity worked closely with Shoukri Ghanem, the current Prime Minister of Libya, Dr Fathi Shatwan, the current Minister of Oil, and Elkhair Abdulgader, the current minister of Economy and Trade, as well as Abdurrahman Shalgam, the current Minister of Foreign Affairs and Mohammed Hwejg, the current minister of Finance. During these years, Mr. Dalli acquired a deep knowledge and understanding of Libya.

Mr Dalli resigned from the government in July 2004 but retained his seat in Parliament. Mr Dalli now heads a consultancy practice that helps companies work out strategies to counter the challenges of restructuring in the global economy and that facilitates the entry and operation of local and international companies in emerging economies.