Digital Transformation as a Catalyst for Sustainable Spatial Development in Libya: An Analytical Study of Institutional Constraints and Implementation Challenges in Light of the Algerian Experience

Abstract

Digital transformation represents a cornerstone for achieving sustainable development in the 21st century, particularly in countries facing political crises and institutional fragmentation, such as Libya. This study seeks to examine the role of digital transformation as an independent variable capable of propelling sustainable spatial development. It does so by analyzing legal and institutional frameworks as critical mediating variables that significantly influence the success or failure of this pathway. The research employs a descriptive-analytical methodology to assess national legislation and programs, complemented by a comparative approach that draws on the Algerian experience as a proximate and contextually relevant model for Libya. The findings indicate that Libya lacks a comprehensive legal framework governing digital transformation. Institutional fragmentation and insufficient coordination among relevant stakeholders have hindered the implementation of several initiatives, including the “My Salary” (Ratibi) program. Moreover, the study reveals a considerable digital spatial divide, with digital infrastructure coverage in southern regions not exceeding 20%, and digital financial inclusion limited to merely 25% of the population. Conversely, the Algerian experience demonstrates that the adoption of a unified legislative and institutional framework—such as Executive Decree No. 21-224 of 2021—has facilitated the overcoming of major challenges and the enhancement of digital governance mechanisms. The study recommends the establishment of an independent national authority for digital transformation, the enactment of a unified legal framework for digital governance and personal data protection, the creation of a sovereign digital investment fund, and the adoption of a decentralized strategy aimed at ensuring spatial equity.