Author(s)

Yifan Wang

Corresponding Author

Yifan Wang

ABSTRACT

Libya's economic stagnation has been closely related to its political environment. This paper aims to provide ideas for Libya's future economic development by analyzing the influence of politics on economy during Qaddafi's rule. To support the study, twenty important papers regarding the Libyan economy and politics have been selected and placed under review and research. Through careful analysis, it is found that although researches have been made on Qaddafi's government, including its economic reform and political policies, few have clearly analysed the relationships between the two. In this paper, three main aspects, namely foreign affairs, oil policy, and ideology, are underscored and analysed to identify the connection between Libyan politics and the economy. Through analysis, this paper concludes that the Libyan economy, under Qaddafi's regime, was positively influenced by its early economic policy under effective ideology and was negatively impacted in the following years by its radical foreign policies, problematic oil policies, and centralized unsuitable ideology for economic development.

KEYWORDS

Qaddafi regime, Libyan politics, economic reform