Libya's Performance on the Resource Governance Index
Libya received a "failing" score of 19, ranking 55th out of 58 countries. Very low scores on all components reflect decades of corruption and inefficiency.
(out of 58)
(out of 100)
|57||Institutional & Legal Setting||11|
|55||Safeguards & Quality Controls||15|
Institutional & Legal Setting (Rank: 57th/58, Score: 11/100) learn more
Libya's "failing" score of 11 is the product of a near-total lack of a legal framework governing resource extraction and revenue collection.
The National Oil Corporation (NOC) acts as ministry, regulatory agency, and state-owned company. It awards production-sharing contracts to foreign companies following open bidding rounds. Under Gadhafi, it was clear that open bidding was only the beginning of the licensing process; final agreements depended on further negotiations. The extent of the NOC's discretionary power under the new government has yet to be established.
The NOC collects payments from resource companies and transfers them to a special account held by the central bank. Some resource-related revenues are not included in government budget accounting and Libya's public sector balance is not published. Environmental impact assessments are not required, and no freedom of information law exists. With many Libyan government websites no longer functioning, the amount of information that will be available under the new government remains to be seen.
Reporting Practices (Rank: 48th/58, Score: 29/100) learn more
Libya received a "failing" score of 29, reflecting a lack of disclosure on most aspects of the petroleum industry.
Relevant legislation, including the Petroleum Law of 1955 and the regulations covering licensing procedures, is not available from official sources. Once the licensing process has been completed, only basic information is released about winning bids, and contracts are not published in full.
The central bank is the only institution that provides information on hydrocarbon revenues. It produced annual reports from 2005 to 2010 containing data on reserves, production volumes, prices, the value of resource exports, the government's share in production-sharing contracts, the names of companies operating in Libya, and production data by company.
Safeguards & Quality Controls (Rank: 55th/58, Score: 15/100) learn more
With few effective checks on the licensing process and a general lack of public access to information on petroleum revenues, Libya earned a "failing" score of 15.
By law, the General People's Committee was required to approve contracts during the Gadhafi era, limiting the discretion of the NOC. In practice, however, the committee provided little real oversight. Libya's post-revolution Transitional National Council has yet to form a parliament, and the oversight responsibilities of elected officials are unknown.
The national Audit Bureau is required to review resource revenues. Under Gadhafi, it reported to the General People's Congress, but its reports were rarely made public. In June 2012 the Audit Bureau published its first post-revolution report, which included a critical assessment of the NOC's activities.
Enabling Environment (Rank: 50th/58, Score: 10/100) learn more
Libya performed particularly poorly on measurements of accountability and democracy and corruption control, leading to a "failing" score of 10.
State-Owned Companies (Rank: 39th/45, Score: 19/100) learn more
The NOC has a number of fully state-owned subsidiaries. It maintains a share in all production-sharing contracts and operates without ministerial oversight. In the past, the NOC provided little information on revenues, but since the revolution it has published reports containing export volumes and destinations, prices, and production volumes.
Natural Resource Funds (Rank: 23rd/23, Score: 0/100) learn more
The Libyan Investment Authority was created in 2006 to manage the country's oil revenues. Before the revolution it was primarily, though unofficially, under the authority of the prime minister, and many cases of mismanagement were reported. No information was published on the fund's assets or activities and its financial statements were not audited. Rules governing deposits are currently unavailable. The new prime minister has yet to appoint a board of trustees to manage the fund.
INSTITUTIONAL & LEGAL SETTING
SAFEGUARDS & QUALITY CONTROLS
To explore all data and compare country scores, use the RGI Data Tool.
Key Economic Indicators
|GDP (constant 2011 international $ billion)||43.3||49.8||64.2|
|GDP per capita, PPP (constant 2005 international $)||12,623||14,015||15,361|
|Oil and gas revenues (% total government revenue)||93||91|
|Extractive exports (% total exports)||..||..||..|
|Sources: Oil and gas revenue as share of total government revenue from the Economist Intelligence Unit and the International Monetary Fund. All other data form the World Bank. GDP 2011 value from 2009; Oil and gas revenues 2011 data from 2010.|