Assessing Political Risk Essay Example

Introduction

Following the systematic analysis of the Libyan government, reveals that in the past the country had experienced sera is of political instability which poised a tremendous impact on the international business. It is worth acknowledging the absolute fact that, the General National Congress which has been the legislative authority since 2012 to replace the National Transitional Council that had been in place since the end of the civil war in Libya. Significantly, the General National Congress which is composed of two hundred members where eighty members were solely elected through the par list system of commonly known as the proportional representation. On the same account, the national transitional congress upon taking power has been one of the legislative body in Libya constituted basically to offer a noble frame work upon which the democratic political grounds can be constituted (Dake 61-82).

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The constant shift in the ruling parties in Libya from the council of deputies also known as the House of Representatives which has been in office since 2014, the New General National Congress since 2014 and the Libyan political agreement which has been in office since 2015. It is imperative to note that, the defects of Libyan Political Agreement formed the National Salvation Government which took over Tripoli by force leading to the fight for various political interests.

The stability of the Libyan country

The Libyan government is currently experiencing a strong stability base after undergoing a long period of the dictatorship led by Muammar Gaddafi in the last forty years. It is imperative to note that, the Libyan government which has undergone several political changes which have provided the needed stimulus to help foster the creation of a more stable government. Notably, the stability in the Libyan government is signalled through the creation of several institutions to enhance democratic movements within the entire society. Since the fall of Gaddafi in 2011, the country has been marred by several chaoses which have seen major progress, particularly in the political wing to steer free space needed to foster peace and developments (Asante 401-423). Significantly, the split of the political powers which proceeded the fall of Gaddafi in 2011 has generated a complete rivalry in the Libyan government majorly in Tobruk and Tripoli. It worth acknowledging the absolute fact that, the Libyan political agreement along with the United Nations are some of the key institutions which have played important roles in creating a stable political grounds in Libya. On the same account, the country has splintered along since 2014 and has since then become completely divided into different political faction based in Tripoli and the east. The division which followed the exit of Gaddafi has led to the emergence of several leaders manning different sections within the entire country (Asante 401-423). Among the key leaders are Fayez saran the head of the internationally recognised government of Tripoli along with Khalifa after the head of the Libyan national army which controls majorly the eastern part of the country. On the same account, the Islamic groups took control of the southern part thereby weakening the constant rebellion witnessed in the entire Libyan government.

History of expropriation of Libya country

In the view of Gann (611-615), the ownership of properties has been one the key element and a trigger o the violence constantly witnessed in Libya till the current times in the history of expropriation in Libya Following series of the political instability in Libya. Libya is rich in oil along the belt of West African countries has been faced by a series of challenges with regards to the loss and repossession of lost properties in war. Notably, the current political parties are formulating relevant policies to help champion identification and recovery of the lost properties. It is worth acknowledging the absolute fact that, the whole discussion around illegal ownership of properties began in 1978 when the plan to expropriate land was greatly thwarted by the Gaddafi government which ordered all public land within Tobruk city be managed by the national commercial bank.

Social tension in Libya

The country Libya, as well as other countries, experience a certain degree of social instability resulting from the tension it experiences. All these tensions have a very critical impact more or so on the operation of the services hence relating to the economy. The political divisions in Libya have increased since the end of the regime of Gadhafi which has resulted in insecurity in the country. There are civil wars since the year 2011 with a great move experienced in the year 2014 which triggered about 400, 000 people to move to Europe. There is a lot of tension on the country from the refugees and the migrants since this is sabotage to the economic status of the country. There has also been conflicting in the different parts of the Libyan country. This has resulted in different kinds of violation and abuses of the international laws and destruction of property (Little 208-2010). The competition between the institutions and different areas like the west, east and others have also brought up a series of tensions in the country. The divisions based on the competition are causing a lot of tension to the security of the country since it poses greater challenges to the security of Libya. There are also tensions in Libya as a result of competing governments based on the Tripoli and the eastern part of the country. There is also the tension that is experienced in Libya from other foreign that are interested in gaining control over the same country to control its rich economy.

The foreign relations between Libya and the United States of America

Over the days Libya has been I the central interest of the globe which is closely monitored by the United States. The greatest interest the t other superpower nations have on Libya is calming down the chaotic life styles in the country caused by the tensions from several factors as discussed above. There are integrations made with the USA taking the lead of concern to help control the situation. The relations of Libya and the United States n particular today is very cordial, and the two states have a greater corporation. After the 2012 attack on the US office of liaison, there has been a valid corporation to maintain the security between the two countries. The US started bombing Libya again in 2016 having been permitted by the GNA. According to Dake (61-82), the two states have over the time signed treaties to help solve the disputes of security between them. The first treaty was signed between the US and the Tripoli on June 10, 1805. Thirty years later, the Ottoman Empire reasserted itself over the provinces in Libya. This lead to Libya being under the Italian control by 1947 with the USA recognizing the UK of Libya on December 24, 1947, and the American consulate was elevated by that time. The legislation of Libya was raised into embers status on September 25, 1954, with the relations not being severed formally with te US leading to the close of the People's Bureau in Washington on May 6, 1981, until 2004. The two states that are the United States and Libya resumed full diplomacy in their relations in 2006, and the Liaison office was changed to an embassy. The US suspended this embassy later in 2011 due to the attempts of Mu'ammar al-Qadhafi to suppress the raising up against his regime hence the leading to a sharp deterioration. Due to this, the United States made an order to the Libyan government to make a suspension of the operations in Washington on March 16, 2011.

International trade between Libya and the USA

The two states are involved in cross-boundary trade and total resource involved is up to 1.5 billion pounds as at the reports of 2017. The two states have signed frameworks for trade and investments which are used to guide the business operations between them. Libya is a member of the common market for east and South Africa and a market for us. Libya is the world's major petroleum export hence providing much of the energy used by the US for the production of its resources (Bhala 260-263). The united states as well in a major dealer in the automotive industry and hence depend on the energy produced by Libya. This has been the reason for the stiff for harmony between the two states.

Conclusion

USA companies are specialized in more of the technological items. This is great to other countries of the world as far as development is concerned. USA companies should therefore get into a trade with many other countries to help them come up and adjust thee production skills in order to incur fewer resources in maximized production of resources.

Works Cited

Asante, Samuel KB. "Stability of Contractual Relations in the Transnational Investment Process." International & Comparative Law Quarterly 28.3 (1979): 401-423.

Bhala, Raj. "National Security and International Trade Law: What the GATT Says, and What the United States Does." U. Pa. J. Int'l Econ. L. 19 (1998): 260-263.

Little, Douglas. American orientalism: the United States and the Middle East since 1945. Univ of North Carolina Press, 2008.

Dake, Karl. "Orienting dispositions in the perception of risk: An analysis of contemporary worldviews and cultural biases." Journal of cross-cultural psychology 22.1 (1991): 61-82.

Gann, Pamela B. "Compensation Standard for Expropriation." Colum. J. Transnat'l L. 23 (1984): 611-615.