Archive for the ‘Libya’ Category

Libyas Economic Outlook- October 2016 – World Bank

Outlook

The outlook hinges on the assumption that the Libyas House of Representatives will endorse a new government of national accord by the end of 2016, which will be able to start restoring security and launching programs to rebuild the economic and social infrastructures, especially oil facilities and terminals. In the baseline scenario, production of oil is projected to progressively improve to around 0.6 million bpd by end-2017. On this basis, GDP is projected to increase 28%. However, the twin deficits will remain as revenues from oil and will not be sufficient to cover budget expenditures and consumption-driven imports. This should keep the budget deficit at about 35% of GDP and the current account deficit at 28% of GDP in 2017. However, downside risks to this scenario remain high as the political uncertainties may prevail.

Over the medium term, it is expected that oil production will progressively increase without reaching full capacity before 2020 due to the time necessary to restore the heavily damaged oil infrastructure. In this context, growth is projected to rebound at around 23% in 2018. Both the fiscal and current account balances will significantly improve, with the budget and the balance of payments running surpluses expected from 2020 onwards. Foreign reserves will average around US$26 billion during 2017-2019, representing the equivalent of 13 months of imports.

Unless immediate and target action is taken to address the humanitarian crisis, the situation is unlikely to improve. The situation in Libya is such that simply relying on a slightly improved macro outlook is unlikely to bring about significant change. The country needs humanitarian aid and specific programs to address the destruction and lack of basic services that a large part of the population faces.

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Libyas Economic Outlook- October 2016 - World Bank

Libya: Week of chaos a reminder that the country’s still …

This has been much of Libya's curse since the 2011 unseating of Moammar Gadhafi, but the past week has been a particularly ghastly episode. Militias holding parts of the capital, Tripoli -- who are technically loyal to the United Nations-backed Government of National Accord (GNA) -- have been attacked by another armed group known as the 7th Brigade, from Tarhouna, to the capital's southeast. All sides accuse the other of corruption, and maintain their grip will restore order.

Yet the opposite is obviously proving the case. Militias have been fighting or squabbling, often at a slow-burn rate, for control of parts of the city for years. The distant thump of explosions or intermittent gunfire is far from abnormal across the city's skyline. But this uptick has led the GNA to denounce the fighting -- among militias that are technically loyal to it -- and declare a state of emergency.

Ongoing clashes have left at least 47 people dead and more than 140 wounded, a Libyan ambulance official told CNN. Prisoners broke out of a jail during the unrest on Sunday, with local media reporting 400 had escaped, although a GNA official claimed it was just dozens.

Yet this is a smaller part of the wider problem. Nationwide, Libya is split yet again. In the east, General Khalifa Haftar, who decades ago helped Gadhafi's original coup, has consolidated control around the city of Benghazi. Another militia, the Misrata Brigades, dominate a port to Benghazi's west.

There are further fiefdoms around the oil-rich nation -- Libya has been reduced by the ongoing violence to an economic slump, and people queue for hours outside banks for the most basic of services.

To add to that, ISIS fighters -- who gained substantial control around the town of Sirte and along Libya's massive Mediterranean coastline until a 2015 offensive against them -- remain a threat. Only last week, a US airstrike killed an ISIS militant near Bani Walid, the US military said.

In Tripoli, the GNA's path has been far from straightforward. It first arrived as something of a UN and Western-backed implant, and found itself often restricted to its base in the port. It has since grown in power, and the Libya Dawn faction that formerly controlled much of the capital has stepped back. Yet some of Dawn's loyalists are said to be assisting the 7th Brigade's offensive. That old rivalry, too, persists.

If you have kept up, then you may understand the scale of the challenge ahead for UN negotiators as they seek calm, or even a short-term peace. None of this complexity softens the agony for Libya's people, who have seen their oil-rich dictatorship flounder as the revolution brought the warring rule of the gun rather than a simple switch to elected leaders. Or the plight of the thousands of migrants, who risked all in Africa's deserts to reach the coastline, but now languish in Libya's jails.

Nor does it improve the confidence of European leaders who depend upon Libya's government -- and its coastguard -- to stop the migrant trade across the Mediterranean.

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Libya: Week of chaos a reminder that the country's still ...

Libya evacuates migrants trapped by fighting, with U.N. help …

TRIPOLI (Reuters) - Hundreds of migrants have been relocated from government-run detention centers in Libya after being trapped by clashes between rival groups, U.N. and aid sources said on Thursday.

A migrant is seen in a shelter after she was relocated from a government-run detention center, after getting trapped by clashes between rival groups in Tripoli, Libya August 30, 2018. REUTERS/Hani Amara

The migrants were abandoned when their guards fled from the fighting, which killed almost 30 people. It pitted rival groups vying for power and state funds, a recurring theme in Libya since the chaotic overthrow of Muammar Gaddafi in a 2011 NATO-backed uprising.

The migrants were taken to a safer place from two centers run by the U.N.-backed government in the Ain Zara area in southeastern Tripoli, aid workers said.

The U.N refugee agency UNHCR said in a statement it facilitated the transport in coordination with other agencies and the Department for Combatting Illegal Migration (DCIM).

The migrants, mainly Eritreans, Ethiopians and Somalis, were taken to a separate detention center away from the fighting. A few were still waiting to evacuate from Ain Zara, an official at another international organization said.

Libya is the main departure point in North Africa for migrants crossing the Mediterranean Sea to Europe, mainly from other parts of Africa.

The number of crossings has fallen off sharply since Italy provided the coastguard with more boats and brokered deals with local groups in a smuggler hub last year.

A total of 27 people have been killed and 91 wounded, mostly civilians, since the outbreak of the fighting, the health ministry said in a statement on Thursday.

Tripoli-based Prime Minister Fayez al-Serraj said there was still fighting in southern Tripoli where residents have been trapped inside their homes.

Tripoli is formally controlled by the internationally recognized Government of National Accord, but armed groups working with it act with autonomy. Eastern Libya is controlled by a rival administration.

Reporting by Ahmed Elumami, Hani Amara and Ulf Laessing; Editing by Andrew Bolton

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Libya evacuates migrants trapped by fighting, with U.N. help ...

Libya Overview – worldbank.org

The cost of the political conflict has taken a severe toll on the Libyan economy, which has remained in recession for the third consecutive year in 2015. Political strife, weak security conditions, and blockaded oil infrastructures continue to constrain the supply side of the economy. Production of crude oil fell to around 0.4 million barrels per day (bpd) or the fourth of potential. The non-hydrocarbon output remained weak due to disruptions in the supply chains of both domestic and foreign inputs, as well as lack of financing. In this context, GDP is estimated to have declined by 10 percent and per capita income has fallen to less than US$ 4,500 compared to almost US$ 13,000 in 2012. Inflation strongly accelerated last year driven by high food prices. Lack of funding to finance imports, especially subsidized food, generated chronic shortages in basic commodities and expansion of black markets activities. This situation was exacerbated by households attempting to stockpile food. Inflation averaged 9.2 percent in 2015, mainly driven by a 13.7 percent rise in food prices. Prices of flour and bread quintupled.

Protracted political standoff, coupled with lower international oil prices and generous subsidies have weakened public finances and external position. Budget revenues from the hydrocarbon sector have fallen to only a fifth of their pre-revolution levels, while spending has remained high. The share of the public wage bill in GDP is astronomic (around 60 percent), mainly reflecting a plethoric public sector. Meanwhile, investments have been insufficient for sustaining adequate public provision for health, education, electricity, water and sanitation services. However, savings have been realized on subsidies thanks to tougher control of the supply chains of subsidized products and lower import prices. Overall, the budget deficit rose from 43 percent of GDP in 2014 to more than 75 percent of GDP in 2015. Being highly dependent on hydrocarbon exports and food imports, Libyas balance of payments suffered in 2015. Representing 97 percent of total exports, oil receipts are estimated to have declined to less than 15 percent of their 2012 level. Meanwhile, consumption driven imports remained high. As a result, the current account swung from balance in 2013 to a deficit estimated at around 76 percent of GDP in 2015. To finance these deficits, net foreign reserves are rapidly being depleted.

Improvement of the economic outlook depends crucially on the endorsement by the House of Representatives of the Government of National Accord (GNA) formed under the auspices of the UN. The economic and social outlook assumes that the GNA is eventually empowered to restore security and launch a comprehensive program to rebuild the economic and social infrastructures. In this context, GDP is projected to increase strongly in 2016. However, the twin deficits will prevail as oil revenues will not be sufficient to cover the high budget expenditures and consumption-driven imports. Over the medium term, as oil production returns to full capacity, growth is projected to rebound at two digit growth rates in 2017 and 2018, before stabilizing thereafter between 5 and 6 percent.

Libya Public Finance

Figure 1 below provides a snapshot of 2012-2015 Libyan national budget. During the 2010-2013 period, the executed budget did not typically exceed the overall amount authorized by parliament, but its composition substantially differed from that of the approved budget. The overall rate of budget execution was around 80 percent in 2010 and 2012 and was about 93 percent in 2013. There has been no approved (official) budget over the past two years (2014-2015). In FY2012, development budget spending accounted for slightly more than 52% of all government spending, with wages and salaries comprising 24%. However, over the past several years, development spending has virtually collapsed, comprising an estimated 15% of total government spending in FY2015, down from a budgeted 52% of total budget spending in FY2012.

Although several budgets have been presented by the Tripoli Administration and the HOR (Tobruk, Eastern Administration), the Central Bank of Libya (CBL) did not acknowledge any budget as being the legal, legitimate Libyan budget for FY2015. In effect, neither the budget submitted by rival Parliaments in Tripoli and in the Eastern city of Tobruk have been recognized. The Central Bank of Libya (CBL) has only disbursed funds regarding wages and salaries (Chapter 1); student scholarships abroad; oil/gas sector development; electricity (chapter 3); and, essential subsides items (Chapter 4).

Immediate challenges are to manage fiscal spending pressures while restoring and improving basic public services. A longer term goal is to help develop the framework and institutions for a more diversified market-based economy, broadening the economic base beyond the oil and gas sector. Although the Banks post-conflict engagement was initially expected to accompany only Libyas short term economic recovery efforts, the transition program will lay the foundation for longer term goals. This includes creating a more vibrant and competitive economy with a level playing field for the private sector to create sustainable jobs and wealth. It also includes transforming the management of oil revenues to ensure they are used in the best interests of the country and to the benefit of all citizens equally. This will also ensure that citizens have a role in defining and voicing their communities best interests.

Last Updated:Mar 31, 2016

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Libya Overview - worldbank.org

Libya: Intervention by Invitation – yahoo.com

President Macron appears to be gradually positioning France as a global leader now that Americas President Donald Trump has lapsed into a proto-isolationist grand strategy. The latest example is Libya. With Macrons help, Libyas factional leaders have agreed to hold fresh presidential and parliamentary elections in December, which the United Nations Security Council just endorsed unanimously. However, conditions in Libya remain acutely fragile, with fighting continuing and no current peace agreement in place. With a serious risk of foreign meddling from western adversaries looming in the background, France and its allies risk a mini Syria if they do not act in concert to augment their Libyan stabilization efforts.

Libya is at a crucial crossroads. In some ways, it is closer to the stability that evaporated two years after western intervention overthrew Gaddafi, but in other ways less so as indicated by the recent large-scale bombing in Tripoli. It is incumbent on the allies working with Libyathe U.S., France, Italy, and the UAE to rid the country of extremism. Furthermore, the allies must band together to persuade the various Libyan parties to agree to a new UN-backed power-sharing agreement. The North Atlantic Treaty Organization (NATO) and the European Union (EU) also need to move forward on the delayed deployments of civilian stability operations Libya has requested. Additionally, all concerned parties need to prevent Russia from intervening further to the detriment of Libyas security.

The main sticking point in the negotiations over the UN Special Representatives power-sharing proposal is whether the Defense Minister position should be held by a civilian or whether a general could hold it. There is widespread expectation that General Haftar, leader of the so-called Libya National Army (LNA), would take up the position after the agreement of a deal. Haftar has just returned from a stint in a French hospital, and he wasted no time in harshly criticizing the coming election. While the UN has made considerable progress in the past six months, different Libyan factions continue to engage each other militarily, imperiling the likelihood of an agreement that will be adhered to by all parties.

Prime Minister Fayez al-Sarraj leads the Government of National Accord (GNA), but at the moment Libya has been suffering through a triad of mid-level instability. First there is the presence of ISIS in Sirte, second an attempt by the LNA to take the country by force in the east, and third the political instability that features rival parliaments in Tripoli and Benghazi. For some time it appeared as if Haftar and the LNA were likely to be successful in their drive to overtake the whole of the country, but more recently the GNA and its allies have made modest gains, while several militias previously loyal to Haftar no longer are. In part because of this, there is a legitimate window of opportunity for a successful power-sharing agreement to be reached at the behest of the dogged UN Special Representative of the Secretary-General (SRSG) Ghassan Salame.

At a time when the Trump Administration appears to have taken its eye off the ball in Libya, Russia has ramped up its intervention in Libya. Moscow has undertaken a full-fledged backing of Haftars forces in an attempt even to replace the UN as the broker among the various parties. This Russian intervention has all staged from a Russian base in western Egypt where special forces and military advisors are deployed. Russian efforts have even recently moved more into the open, including a port of call from a Russian aircraft carrier that gave Haftar a ceremony and a secure phone call with the Russian Defense Minister. Yet there is still ample time for NATO and the EU to upgrade their efforts to aid the GNA, in particular now that Italy has committed troops to help stem refugee flows from Libyas coastal areas.

NATO and the EU have been formally requested by Libya to mount civilian stabilization operations, and both have accepted and committed informally to coordinating their operations. However, in part because of Libyan instability and in part because of Europes keen focus on the Libyan refugee situation, neither the EU nor NATO has fully deployed their operations. European governments have been consumed with viewing Libya through the refugee prism, understandably in part due to the incipient challenge of integrating refugees in their societies and the acute domestic political fallout.

However, it is imperative for the EU and NATO to move forward. It is critical to get their deployments in ahead of any deeper Russian incursion, or a renewed threat from the LNA. Doing so will augment the UNs sharpened lead approach, as well as help to prevent refugees from migrating en masse to Europe. The imperative for action has grown with the stalled UN attempt to broker greater stability and with the U.S. appearing to sit this simmering crisis out.

The best hope the UN has to achieve even a marginal degree of stability is for the EU and NATO operations to proceed. This is because such operations would have a timely impact in helping the UN create more sustained stability. In essence, the western powers should be playing a more prominent role in notoriously unstable Libya because at this moment there is a legitimate opportunity to turn the corner in a more stable direction. This is also important because although some observers have called for Egypt to play a prominent role alongside the western tandem, this is less advisable in light of how closely Egypt is now working with Russia.

Libyan leaders have spent the last several years sparring, politically and militarily, but lately, there has been sustained talk of a basis on which to come together and unify the disparate parts of Libya. For example, the large-scale Tripoli bombing aside, there has been measurable progress in registering Libyans for the next national election with over 2.5 million Libyans registered. Moreover, the U.N.-backed GNA government and the central bank in Tripoli have just agreed on public spending of 42 billion Libyan dinars ($31 billion) for 2018, an increase from 37 billion last year.

For its part, the UN views this embryonic stability as a critical juncture and has re-launched an updated version of its efforts to broker stability among the competing factions in Libya. Thus far, the most important actors on the ground have positively received the initiative, although Haftar recently commented that the UN-backed government was now void and expired. In fact, technically speaking this is true, for the formal mandate has expired, thereby galvanizing the UN into active mode to get a new agreement in place for the GNA.

The most compelling question in this context is whether General Haftar of the east-based LNA will compromise with the UN and the West-backed GNA, and in particular whether he will accept a civilian defense role as opposed to a military one. Recently he has swung between being supportive of the diplomatic path being spearheaded by the UN SRSG and rejecting it. With the EU and NATO operations in place and joining the UN to form a kind of UN-led triumvirate, Haftar is more likely to compromise and consent to becoming a civilian defense minister.

Over the past several years the Libyans have repeatedly made formal requests of NATO and the EU to mount civilian stabilization operations in Libya, and both organizations now need to accede to these requests and set near-term dates taking action. For example, while the EU has approved both, they have been slow in proceeding toward full deployment. In addition, although technically the EU mission exists, it is not even headquartered inside Libya.

One of the most important reasons for the West to get its collective act together is to secure a solid western operational foothold ahead of any additional moves by Russia. The danger is that Russia has gradually been consolidating its position for months now. Also, Russia has been courting Haftar for the past year, by hosting him in Moscow and directly funding the LNA in addition to also supplying it with weapons and logistics assistance.

Western civilian operations in Libya also represent a compelling opportunity for the EU and NATO not only to coordinate their operations, but actually to go so far as to engage in joint planning and fully conjoinedas opposed to merely complementaryoperations on the ground. These two pivotal overlapping western security organizations have recently been attempting to overcome their long-running tensions and jealousies. For example, staff to staff meetings in Brussels have been making marked progress in working together both in Brussels and in the field. In fact, a broad contingent of current and former EU and NATO officials believe Libya amounts to an important test case for deploying conjoined operations.

But by far the most crucial reason for western operations to be deployed forthwith in Libya is to shore up the tentative progress the UN is making for establishing a new unity government. According to conventional wisdom, Libya has been an unstable basket case ever since the NATO operation removed the Qaddafi regime during President Obama's first term in 2011. In reality, there were over two years of relative stability. However, gradually an eventually acute problem metastasized with no actor ever figuring out how to deal with the strong presence of well-armed militias in Libya. Over time, those militias gradually achieved superiority over the politicians in Tripoli.

It was not until the summer of 2014 that Libya descended into full-fledged instability and actual civil war. Things remained relatively unstable until the UN managed to stand up the GNA government in 2017. President Obama has described the failure to follow up the air campaign and Gaddafis removal with a post-conflict stability operation as the worst mistake of his presidency. However, this failure was also Europes for there were European leaders who had to be prodded by America into supporting a European stability operation in Libya. The U.S. push for this Germany-spearheaded effort was viewed as the price to be paid for Germany having abstained on the UN Security Council resolution that gave legitimacy to the allied intervention in Libya. However, the EU was unable to achieve the consensus required to move forward, and as a result, Libyas descent ensued.

Although NATO and EU civilian operations have been delayed, there is a general understanding of what the overlapping EU and NATO missions should comprise, both in Brussels and in Tripoli. NATO could deal more with training the military and aiding in securing Libyas borders, while the EU could zero in on training the police and paramilitary forces. The EU could also focus its efforts on Tripoli, Benghazi, and Sirte through Rule of Law capacity building with the GNA government. Two imperatives are essential here, first, that both civilian operations should be conjoined (i.e., jointly planned and operated by NATO and the EU) and, second, that both operations should be implemented in sync with the overall leadership of the UN and its Special Representative. Again, the necessity of these operations to provide crucial assistance to the UNs efforts to broker a new government agreement cannot be overstated.

Libya also features in the newfound hot peace between Russia and the West, with Russia systematically intervening around the globe to the detriment of the western security alliance. Most recently, Russia has harmed core U.S. national security interests by bombing the U.S.-backed moderate rebel forces in Syria, thereby allowing President Assad to retain power and steadily retake territory with the help of Iran. Russia likely sees in Libya a chance to weaponize additional refugees for the further destabilization of Europe.

It has been unhelpful that Europeans have been overly focused on stemming the tide of refugees from Libyas shores. Surprisingly, the EU even flirted with the idea of reaching out to Russia to assess if Russia could be helpful to the EU with reducing the migrant flow to Europe. It is not entirely clear why High Representative Mogherini broached this topic in recent months, for this would play right into Putins hands and bring Russian malfeasance into the Libyan theater sooner and with greater confidence.

In conclusion, stability in Libya is worth expending considerable western operational capital, as the price of instability would be ISISs return, greater refugee flows, further populism in Europe, and the realistic prospect of a second Syria.

Dr. Jeffrey A. Stacey was a State Department official in the Obama Administration. Author of Integrating Europe by Oxford University Press, Stacey is an international development consultant residing in Washington, D.C.

Image:Anti-Gaddafi fighters fire a multiple rocket launcher near Sirte, one of Muammar Gaddafi's last remaining strongholds, September 24, 2011. Libyan provisional government forces backed by NATO warplanes swarmed into the city of Sirte on Saturday but weathered heavy sniper fire as they tried to win control of one of deposed leader Muammar Gaddafi's last bastions of support. REUTERS/Goran Tomasevic

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