Conceptual Framework of Agricultural Development in Developing Oil Rich Countries (Case of Libya)

Abstract

: . The heavy dependence on oil revenues has negatively affected the development of the agriculture sector, as the continual flow of oil revenues has allowed the government to fund the sector without paying due attention to the economic efficiency or economic returns of most of the agricultural projects which hampered by widespread corruption and weak control by the public sector. The money surplus in the national budget, which was generated by the continual flow of oil revenues, has also allowed the government to easily access the international market, which has made it much easier for the country to import food than to produce it, Also the availability of high revenues from oil allowed the government to persist with self –sufficiency ideology as well as other related political ideologies regardless of their validity or efficiency. Whilst the economic system is fundamentally based on socialist theories and a planned economy, with the public sector taking precedence over the private sector, there is evidence that political leadership's beliefs strongly affected the stability of the economic system and the government institutions.