The Libyan fisheries sector : a critical application of Porter's Diamond Model

• Main Author: Saeed, Fatma M.
• Other Authors: Stephenson, Paul ; Higham, Anthony ; Jones, Paul
• Published: Sheffield Hallam University 2015
• Online Access: https://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.741536

Libya is one of the developing countries that are rich in oil but plagued by a phenomenon called 'resource curse' --- a situation where the tremendous wealth gained from oil export hinders rather than promote economic sustainability. Oil dominates the Libyan economy, accounting for more than 80% of government revenue and exports. As a result, non-oil sectors such as agriculture and manufacturing become unproductive and less competitive nationally and in world markets. As part of the ways to help diversify the Libyan economy and to find sectors of competitive advantage, this thesis applies the Porter Diamond Model (PDM) to Libyan fisheries in order to unravel the current situation whilst also identifying future prospects and development possibilities. Fisheries was selected as the focus for this thesis due to its inherent resource abundance, high potential to play a major role in contributing to economic growth and development within Libya, and finally the sectors ability to strengthen food security and national well-being. Porter's Diamond is a model that explains the competitive advantage some nations or industries have due to certain comparative advantages and helps analyse and improve a country's role in a globally competitive sector. In the Porter's diamond, four interdependent determinants (factor; demand; related and supporting industries; and firm strategy, structure and rivalry) and two indirect variables (chance and government) affects sectors ability to achieve and sustain competitive advantage in the competitive environment. The PDM, including Shepherd's model was applied to Libya to appraise the fish consumption behaviour and evaluate the Libyan fisheries sector's ability to achieve competitive advantage for economic diversification. This is the first study to assess the competitiveness of fisheries in Libya using the PDM framework. The study adopts a case study approach because it allows gathering of data from multiple sources to accommodate the determinants that affect Libyan fisheries sector in light of the diamond model. Mixed methods where used in this thesis, with data collection methods including questionnaire surveys, interviews and visual materials applied to Eastern Libya. The research reviews, that despite its clear limitations, Porter's diamond model provides a valuable model for appraising the competitiveness of fisheries in Libya. However, this thesis strongly contradicts the PDM in important one area, the role of government when the model is applied to developing nations. In such situations, this study suggests the governments' role should shift from being a complementary to a major determinant in the operation of the model. The research also recommends that the current government be transformed to develop the fisheries sector, by adopting a protectionist approach to advance the sector in a similar manner to that used both other developed countries. Whilst this study makes original contribution to existing knowledge relating to the sector competitive advantage within economies, it is also provides a valuable guide to policy makers looking to diversify existing oil rich economies in both Libya and other similar developing nations. Analysis and finding were organised around the elements of PDM. This study highlights that, marketing outlets are widely unavailable to many consumers; fish prices are high for most citizens; local demand or consumption is low; government policy and regulation towards fishing and marine resources are weak; poor and obsolete infrastructure is common place; equipment and fishing boats are high; regulations of the marine resources sector and fishing is poor; investment and fishing boats are very expensive presenting a significant barrier to market entry for local people; public sector (government) investment in the sector is lacking; no up-to-date modem technique relating to the fisheries sector are available to Libyan fishermen; studies to estimate fish stocks are both dated and insufficient; integration of the sector into the national economy is absent and finally the sector is left in the hands of artisanal and informal fishers. These barriers hinder the process of developing in this sector, preventing Libya's fisheries sector achieving competitive advantage. In addition, the governments' intangible efforts to improve the fisheries sector have been insufficient to ensure food security, diversification, and continued economic growth and development.