By IPS Correspondents
TRIPOLI, Jul 10 2006 (IPS)

Like a horde of angry animals, Tripoli’s black and white taxis circle its central Green Square, each vehicle in a hurry to reach its destination. Oddly, only a few appear to actually be carrying any passengers: “We still don’t get enough foreign visitors”, says taxi driver Mustafa, navigating his way through the treacherous straits of Tripoli’s traffic. “When people in the West think of Libya, they still only think of terror.”

Little is known about Libya: the size of France, Italy, Spain and Germany combined, it has a population of just under six million. It is one of Africa’s wealthiest states, yet rubbish lays strewn across its dusty streets. Alcohol is forbidden and most women wear the hijab, although the law does allow them to wear bikinis. Libya is officially ruled by the people through its Basic People’s Congresses, although in reality, there is one man who rules the country: Colonel Muammar Gadaffi.

Just like the ghiblis, the sandstorms which turn day into night in Tripoli, Libya is never quite what it seems: like a mirage, it shimmers on the North African horizon, increasingly sought after by an oil-thirsty West. Thirty-nine billion barrels of proven oil lie under Libya’s deserts, the largest oil reserves in Africa.

Particularly well-suited for the American market, Libya’s light crude has the virtue of not having to be transported through the Suez Canal. Yet it is not only oil that makes Libya so attractive. In the war against terror, Libya borders the Mediterranean, but also the Middle East and Central Africa. Its far-stretching, unspoilt coasts are perfect for luxury resorts for Spain-weary tourists, as well as for camps to hold back illegal immigrants from Central Africa heading to Europe.

In a country with 70 billion dollars in foreign reserves, yet with no existing rail or motorway network, European companies in particular, but also more competitive rivals from Asia are vying for the many lucrative investment opportunities in Libya.

In western media in particular, the country has long turned from terrorist menace to regional beacon of hope. “The New Face of Libya” reads the headline over a recent lead story in Time magazine; “Terror was yesterday”, writes German daily Frankfurter Allgemeine.

There is indeed proof of a turnaround: Under pressure from British and U.S. intelligence services, Gadaffi gave up Libya’s chemical and nuclear weapons three years ago. He has since pledged to engage his notorious intelligence services to the global campaign against radical Islamism.

More than 100 of its 500 political prisoners have been freed. Libya has paid generous compensation to the relatives of passengers of the U..S. airliner blown up over Lockerbie in 1988, and played a key role in the release of a number of Europeans held hostage in the Sahara in 2003. In addition, Gadaffi has repeatedly championed economic reform, declaring in a recent speech that liberalisation is the key to prosperity, and that stable institutions are vital for Libya’s worldwide credibility.

This kind of rhetoric has been eagerly embraced by Libya’s one-time adversaries. Only a few weeks ago, the United States removed Libya from its terror blacklist and praised the country as an example for Iran and North Korea. Against a backdrop of recent horror stories from Iraq and Afghanistan and an increasingly volatile Iran, it is no surprise that the Bush administration is now presenting once “mad dog” Gaddaffi as an exemplary pupil.

In Tripoli though, the mood is less optimistic. “There is no denying that there has been a turnaround,” says one European diplomat. “The question is, just how sustainable this change is – and that still depends alone on Gadaffi.”

With its crumbling, cream-coloured, stucco-adorned buildings, Tripoli is more like a dusty southern Italian port than bustling, modern Arab capital. Seven billion dollars have been budgeted alone for infrastructure repair this year, according to the government, yet there are still no cranes to be seen jutting up from Tripoli’s unkempt skyline.

While almost perfectly intact Roman villas line Libya’s shores, it seems typical of Libya that the magnificent colonial facades of its capital city are in worse shape than its many Roman ruins. The atmosphere in Libya is still as shambolic and dusty as when it was diplomatically isolated, and seems frozen in a kind of time warp. While that may be charming for tourists, it is increasingly frustrating for its citizens. There is still no official waste collection, and there are only 20 cash point machines in the country. On every street corner, idle young men sit, chatting and toying with their mobile phones.

State wages, the main income for two-thirds of the workforce, have been frozen since 1981 at an average of 3,000 dollars a year. Almost a third of the native workforce is jobless. Libya’s unemployed, however, are no disaffected youths: all the essentials are subsidised. A loaf of bread costs around 3 cents, petrol around 10 cents a litre; almost half of all Libyans do not pay for their state-supplied electricity. Meagre wages and subsidies kill most incentives to work hard while the very lowest jobs are carried out by Libya’s two million foreigners, mainly Egyptian and black African labourers.

As in many oil-rich countries, there is little economic diversification in Libya; many university students fear their talents will remain unused. The lack of activity even hampers Libya’s most important industry, oil production. Now at 1.7m barrels a day, it is still little more than half the peak at the time Gadaffi came to power.

The government intends to increase this amount to 3 million barrels a day within ten years. But so far only a quarter of the country has so far been explored, and still not enough is being invested in old fields, while decisions on new ones are taken too slowly.

Inshallah, bokra, moumken – “with the will of God, tomorrow, maybe” could be the country’s motto: the most living testaments to Libya’s many powerful rulers are still the legacies of its two colonial powers, Byzantine corruption and Italian bureaucracy. It took more than six months to get the necessary documents to set up his small tour company, recalls former government translator Hassan.

Transparency International’s Corruption Perceptions Index for Libya is 2.5, lower than that of Zimbabwe and Afghanistan. “Gadaffi is happy to have corrupt people working for him, as that way no one proves a threat to his power,” says a bookshop owner.

While some change is happening, it is mostly triggered by other sources. Today, Libyans can receive up to 250 channels via satellite television. On Arab channels like Al Jazeera, they can compare Libya with other Arab states. Thirty years ago, Saudi Arabia was less developed than Libya; today, the contrast between the two could not be more striking.

Excerpt:

By IPS Correspondents
TRIPOLI, Jul 10 2006 (IPS)

Like a horde of angry animals, Tripoli’s black and white taxis circle its central Green Square, each vehicle in a hurry to reach its destination. Oddly, only a few appear to actually be carrying any passengers: “We still don’t get enough foreign visitors”, says taxi driver Mustafa, navigating his way through the treacherous straits of Tripoli’s traffic. “When people in the West think of Libya, they still only think of terror.”

Like a horde of angry animals, Tripoli’s black and white taxis circle its central Green Square, each vehicle in a hurry to reach its destination. Oddly, only a few appear to actually be carrying any passengers: “We still don’t get enough foreign visitors”, says taxi driver Mustafa, navigating his way through the treacherous straits of Tripoli’s traffic. “When people in the West think of Libya, they still only think of terror.”

Little is known about Libya: the size of France, Italy, Spain and Germany combined, it has a population of just under six million. It is one of Africa’s wealthiest states, yet rubbish lays strewn across its dusty streets. Alcohol is forbidden and most women wear the hijab, although the law does allow them to wear bikinis. Libya is officially ruled by the people through its Basic People’s Congresses, although in reality, there is one man who rules the country: Colonel Muammar Qaddafi.

Just like the ghiblis, the sandstorms which turn day into night in Tripoli, Libya is never quite what it seems: like a mirage, it shimmers on the North African horizon, increasingly sought after by an oil-thirsty West. Thirty-nine billion barrels of proven oil lie under Libya’s deserts, the largest oil reserves in Africa.

Particularly well-suited for the American market, Libya’s light crude has the virtue of not having to be transported through the Suez Canal. Yet it is not only oil that makes Libya so attractive. In the war against terror, Libya borders the Mediterranean, but also the Middle East and Central Africa. Its far-stretching, unspoilt coasts are perfect for luxury resorts for Spain-weary tourists, as well as for camps to hold back illegal immigrants from Central Africa heading to Europe.

In a country with 70 billion dollars in foreign reserves, yet with no existing rail or motorway network, European companies in particular, but also more competitive rivals from Asia are vying for the many lucrative investment opportunities in Libya.

In western media in particular, the country has long turned from terrorist menace to regional beacon of hope. “The New Face of Libya” reads the headline over a recent lead story in Time magazine; “Terror was yesterday”, writes German daily Frankfurter Allgemeine.

There is indeed proof of a turnaround: Under pressure from British and U.S. intelligence services, Qaddafi gave up Libya’s chemical and nuclear weapons three years ago. He has since pledged to engage his notorious intelligence services to the global campaign against radical Islamism.

More than 100 of its 500 political prisoners have been freed. Libya has paid generous compensation to the relatives of passengers of the U.S. airliner blown up over Lockerbie in 1988, and played a key role in the release of a number of Europeans held hostage in the Sahara in 2003. In addition, Qaddafi has repeatedly championed economic reform, declaring in a recent speech that liberalisation is the key to prosperity, and that stable institutions are vital for Libya’s worldwide credibility.

This kind of rhetoric has been eagerly embraced by Libya’s one-time adversaries. Only a few weeks ago, the United States removed Libya from its terror blacklist and praised the country as an example for Iran and North Korea. Against a backdrop of recent horror stories from Iraq and Afghanistan and an increasingly volatile Iran, it is no surprise that the Bush administration is now presenting once “mad dog” Qaddafi as an exemplary pupil.

In Tripoli though, the mood is less optimistic. “There is no denying that there has been a turnaround,” says one European diplomat. “The question is, just how sustainable this change is – and that still depends alone on Qaddafi.”

With its crumbling, cream-coloured, stucco-adorned buildings, Tripoli is more like a dusty southern Italian port than bustling, modern Arab capital. Seven billion dollars have been budgeted alone for infrastructure repair this year, according to the government, yet there are still no cranes to be seen jutting up from Tripoli’s unkempt skyline.

While almost perfectly intact Roman villas line Libya’s shores, it seems typical of Libya that the magnificent colonial facades of its capital city are in worse shape than its many Roman ruins. The atmosphere in Libya is still as shambolic and dusty as when it was diplomatically isolated, and seems frozen in a kind of time warp. While that may be charming for tourists, it is increasingly frustrating for its citizens. There is still no official waste collection, and there are only 20 cash point machines in the country. On every street corner, idle young men sit, chatting and toying with their mobile phones.

State wages, the main income for two-thirds of the workforce, have been frozen since 1981 at an average of 3,000 dollars a year. Almost a third of the native workforce is jobless. Libya’s unemployed, however, are no disaffected youths: all the essentials are subsidised. A loaf of bread costs around 3 cents, petrol around 10 cents a litre; almost half of all Libyans do not pay for their state-supplied electricity. Meagre wages and subsidies kill most incentives to work hard while the very lowest jobs are carried out by Libya’s two million foreigners, mainly Egyptian and black African labourers.

As in many oil-rich countries, there is little economic diversification in Libya; many university students fear their talents will remain unused. The lack of activity even hampers Libya’s most important industry, oil production. Now at 1.7m barrels a day, it is still little more than half the peak at the time Qaddafi came to power.

The government intends to increase this amount to 3 million barrels a day within ten years. But so far only a quarter of the country has so far been explored, and still not enough is being invested in old fields, while decisions on new ones are taken too slowly.

Inshallah, bokra, moumken – “with the will of God, tomorrow, maybe” could be the country’s motto: the most living testaments to Libya’s many powerful rulers are still the legacies of its two colonial powers, Byzantine corruption and Italian bureaucracy. It took more than six months to get the necessary documents to set up his small tour company, recalls former government translator Hassan.

Transparency International’s Corruption Perceptions Index for Libya is 2.5, lower than that of Zimbabwe and Afghanistan. “Qaddafi is happy to have corrupt people working for him, as that way no one proves a threat to his power,” says a bookshop owner.

While some change is happening, it is mostly triggered by other sources. Today, Libyans can receive up to 250 channels via satellite television. On Arab channels like Al Jazeera, they can compare Libya with other Arab states. Thirty years ago, Saudi Arabia was less developed than Libya; today, the contrast between the two could not be more striking.

Excerpt: