Political Transition in Libya Complicated
When Gaddafi launched a brutal assault on his own people earlier this year, the United States froze $30 billion of Libya's assets. But, after the advance of rebel forces Sunday (August 21, 2011) into Tripoli and Tuesday (August 23, 2011) into Gaddafi's compound, it became abundantly clear to the world that Gaddafi's dictatorial regime is nearing its end. Now, the U.S. is making preparations to restore Libya's money to a new, transitional government. Reestablishing these funds is not a clear cut process, however, and will take time, a commodity growing ever more precious to the Libyan people.
Pockets of Loyalist Resistance Remain
Although the seige of Gaddafi's headquarters marked a stunning victory for opposition forces, NPR reported that pockets of resistance still remain including Abu Salim, a large neighborhood near the airport. There, Gaddafi loyalists continue brandishing weapons and expressing stubborn resolve to fight on for their deposed ruler in the face of advancing rebels.
CNN reported Thursday (August 25, 2011) that fighting continues across Tripoli as rebels race to locate Gaddafi in the face of a new Gaddafi broadcast urging those loyal to him to never surrender. In this latest broadcast, a male voice purported to be that of Gaddafi declared, "Do not leave Tripoli for the rats, do not leave them. Fight them, destroy them. You are the overwhelming majority, you have marched in millions. March with the same millions but fight this time. Fill the streets and the fields."
Rebels Attempting to Restore Order Face Clear Humanitarian Needs
Meanwhile, in rebel controlled areas of Tripoli, local forces scrambled to provide security, often employing makeshift barriers at haphazardly constructed checkpoints. Rumors of loyalist reprisals echoed through the streets leaving joyous Libyans nervous while chaos left some wondering who is in control.
Stories of pro-Gaddafi forces poisoning tap water have resulted in the closure of some municipal water services and residents taking the precaution of drinking bottled water. In many parts of the city, it has been at least ten days since supplies last came in, and so residents are scraping together what little remains in their cabinets and pantries to survive.
The Process of Releasing Frozen Assets
In a Tuesday (August 23, 2011) interview with CNN, the U.S. Ambassador to the United Nations, Susan Rice, remained hopeful that Libya would begin receiving money later in the week. She outlined the complicated process necessary to begin distributing these funds back to Libya stating, "We have put forward an initial tranche of assets that we anticipate unfreezing as a first stage. Some of which will go directly to humanitarian organizations, some of which would go to the TNC, some of which would help meet the needs of fuel for humanitarian and civilian purposes."
Recognizing New Leadership
There is, however, specific protocol that must be followed in returning these monies. U.S. Federal law requires that a formally recognized government be in place prior to the restoration of frozen foreign assets. Fortunately, the U.S. and some European nations have already officially recognized one group of rebel leaders as the Transitional National Council (TNC), a fact that could greatly expedite the process of getting much needed funds to the Libyan people.
The Race to Restore Order
To establish legitimacy, the TNC must quickly bring order to the streets, maintain and repair infrastructure, and provide humanitarian relief to the people of war-torn Libya. While rebels have already begun this task in small ways, fulfilling these obligations in a substantial and authortative manner will require immediate access to the nation's abundant funds.
Libya's Reconstruction
Fortunately, Libya is in a unique position. The oil-rich nation possesses the means to pay for its own reconstruction. Western nations are well aware of this fact and eager to aid in the process of appropriately distributing locked up assets. Jeffrey Laurenti, foreign policy director at the Century Foundation, stated, "The Western countries now are desperate to get money to them, and they want no responsibility for paying for Libya's reconstruction." He succinctly summed up the current situation saying, "That's the bottom line. Libya is a country that should be able to pay for itself."
Engrid Whisenant - As a Classical Musician, college lecturer in comparative literature, and Ph.D. Candidate in Geography, I explore a variety of interests in ...
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