FOREIGN INVESTMENT:
Libya Needs Major
Reforms to Attract Foreign Investors Outside of the Petroleum Sector
An economic embargo, coupled
with a heavily centralized decision making system meant that Libya has
been for a long time closed to foreign investment. A socialist-style
economy prevented foreign capital from landing on the Libyan shores,
but the oil and gas sector has been the single exception to this rule,
albeit not fully developed. But
in 2003, two major events led to important changes in this state of
affairs. The first was Muamar Khadafi's June 30th appointment of the
reformist figure Choukri Ghanem to the prime minister position. His
principal mandate was to progressively phase out the public sector but
quickly attract foreign investment. Then in September of that year,
the United Nations decided to lift the sanctions imposed on Libya.
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ECONOMY:
Trade and Investment
in Tunisia and Morocco: Mid-Year Assessment
The Tunisian economy appears to be making progress. The various indicators
released by the government relative to the first half of 2004, indicate
that economic growth is underway, including a strengthening of industrial
activity judging by the 5.1% rise in power consumption in the commercial
sector, coupled with the 18.8% increase in raw material and semi-finished
product imports. In Morocco, the situation is a bit different as the
foreign trade performance is still lagging. The trade deficit continues
to widen and as of the end of July it expanded by 31.7% year on year,
according to the foreign exchange office. Crude oil was the primary
factor that led to this poor performance, and although the data for
the month of August is not yet available, analysts already predict another
tough month. With the price of crude oil reaching the $49 mark in July,
the prices of refined products and crude oil derivates also increased
as a result, such as a 3.5% for gasoil and 2.9% for auto gasoline at
the retail level.
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IMMIGRATION:
Shifting Responsibility
on Managing Illegal Immigration, Libya to Open Temporary Host Centers
The
normalization of the relations between Libya and Europe is well underway
and the recent visit to Tripoli of the Italian prime minister Silvio
Berlusconi was part of this normalization effort. But this normalization
process underscored by the current diplomatic dance between Tripoli
and Rome is suspicious and is based on immigration control on the Italian
side and later selling military hardware to oil-rich Libya. After having
permitted the use of Libyan airports to fly from Italy some 2,500 extradited
Egyptian, Ghanaian and Nigerian immigrants to their countries of origin,
where they suffered from persecution and misery, Libya has now accepted
to act as the filter of immigrants seeking to enter Italy, with the
establishment of three processing centers to be built by Italian taxpayers.
Libya will also contribute to the patrolling of its Mediterranean coastline
with the technical, financial and educational support from the Italian
government.
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LABOR UNIONS:
Algerian
Labor Union Chief Sidi-Said Increasingly Isolated
September
is not just the end of the vacation season and back to school. It has
also been traditionally a period of intense labor union activity in
Algeria and this year is no exception. Pressure on the biggest, state-endorsed
Union Generale des Travailleurs Algeriens (UGTA) is mounting. This is
because there has been a vacuum left by the real absence of a political
opposition and the existence of weak opposition parties that cannot
carry with them a pro-worker agenda. In absence of efficient political
parties that can efficiently face the administration of Bouteflika and
his prime minister Ouyahia, the UGTA is naturally pulled into the field
its leader has sought to avoid.
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STOCK EXCHANGE:
Two Small Introductions
in the Tunis Stock Exchange this Fall
Filter manufacturer
Générale Industrielle de Filtration (GIF Filter) and battery
maker Assad are preparing to enter the Tunis Stock Exchange this fall.
Sources say that brokerage firms MAC SA and Arab Financial Consulting
were were hired to lead these operations, involving some 30% of each
of the companies capital. The news is important in that it will give
create some momentum in a bourse that has been lethargic for some time.
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HOUSING AND POPULATION:
Census Begins
in Morocco
Morocco's
housing and population survey started this week. This is the fifth such
census since the country gained its independence. Meeting on August
30 and 31 to strategize and plan, census workers have been given 35,150
districts to share amongst them. Meanwhile, census authorities have
expanded their marketing and communications campaign aimed at facilitating
the counting and survey process. That included the use of mosques and
Friday preaching to inform the wider population on the importance of
this event.
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