Abstract
International economic embargoes (IEEs) against nation states have become one of the most contested issues in the world because of the complex relationship between global politics and national economic systems. Such embargoes have been imposed six times on Iran, Iraq, North Korea and Cuba and eight times on Libya by the United States (US) from 1981 to 1991, and from the United Nations (UN) from 1992 to 2003. The aim of this research is to investigate the effects of the IEEs on the Libyan economy in general, with special reference to Libyan banks and financial institutions over the last three decades (1980 to 2010). This research answers two main questions. First, have the IEEs achieved their intended goals? Second, given Libya's position as a Third World nation that was under IEEs for 12 years, have such economic restrictions had any significant effects on the activities and performance of the Libyan banking sector and Libyan financial institutions, and if so, what strategies has Libya used to deal with such embargoes?