Libya: post-war challenges

The economic, social, and political challenges Libyans will face in the aftermath of its civil war will be enormous. This paper demonstrates that with the state's economic and political institutions having been weakened, Libya will need to restructure its economy.

The authors indicate that the re-construction of the institutions of the former Libya will not be necessary. Rather, Libya will need to create the features that mark modern states and modern economies. Consequently, the document introduces the following conclusions:

• the reconstruction of Libya will need to be both integrated and systemic, interweaving various social, political, legal, and economic initiatives
• these initiatives should help prevent the kind of backsliding that disparate efforts at economic and legal reform or political liberalisation, if made in isolation, often provoke
• Libya will need to move away from excessive reliance on the state and on hydrocarbon revenues while becoming more subject to regulation, and efficiency concerns and diversification
• particularly, trade and entrepreneurship will remain high priorities for any future Libyan government
• these policies will be required especially to help Libya’s large number of unemployed citizens to work
• still, a crucial component will be the recruitment and retention of competent personnel and bureaucrats from the pre-civil war period

Nonetheless, in order to make economic reforms work, the paper underscores that Libya will simultaneously need to:

• develop a political formula that is acceptable to different segments of the population
• create a system of law and accountability that serves its citizens equitably and provides clear guidelines for its economy