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Theme:
2004 Seeds of Reform in the Arab World
Will They Flourish?
Libya 2004: El Qaddafi’s
Modern Tendencies Clashes With Revolutionary Leadership
The year 2004 was a period of radical economic change in Libya. In an abrupt
move, Libya's strongman Muamar Qaddafi decided to shift the country's three-decade
long socialist economy to a capitalist market system. A new pro-capitalist Prime
Minister was put in charge with a mandate to implement the change and to open
up the country to foreign investors. The removal of the economic sanctions previously
imposed by American and European countries has opened up channels to competitive
international companies wishing to acquire a share of Libya’s infant oil industry.
According to a plan that extends to 2008, the Prime Minster has proposed several
bills that are intended to establish mechanisms which would enable the privatization
of the more than 375 state-controlled companies, and the elimination of governmental
subsidies. These liberal economic policies have engaged the Prime Minister in
unending clashes with the Libyan Revolutionary Committee (LRC) which have constituted
the pillars of the Libyan regi me ever since the seventies.
Freedom of media is significantly restricted in Libya and the publication of
opinion that opposes government policy is not permitted. The state still controls
all media and therefore controls reporting of domestic and international issues.
Internet access is available via one service provider, which is owned by Col.
Qadhafi's son.
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