Warning: Creating default object from empty value in /home/gssn/public_html/ipsorg/blog/ips/wp-content/themes/platform/includes/class.layout.php on line 164

Warning: Creating default object from empty value in /home/gssn/public_html/ipsorg/blog/ips/wp-content/themes/platform/includes/class.layout.php on line 167

Warning: Creating default object from empty value in /home/gssn/public_html/ipsorg/blog/ips/wp-content/themes/platform/includes/class.layout.php on line 170

Warning: Creating default object from empty value in /home/gssn/public_html/ipsorg/blog/ips/wp-content/themes/platform/includes/class.layout.php on line 173

Warning: Creating default object from empty value in /home/gssn/public_html/ipsorg/blog/ips/wp-content/themes/platform/includes/class.layout.php on line 176

Warning: Creating default object from empty value in /home/gssn/public_html/ipsorg/blog/ips/wp-content/themes/platform/includes/class.layout.php on line 178

Warning: Creating default object from empty value in /home/gssn/public_html/ipsorg/blog/ips/wp-content/themes/platform/includes/class.layout.php on line 180

Warning: Creating default object from empty value in /home/gssn/public_html/ipsorg/blog/ips/wp-content/themes/platform/includes/class.layout.php on line 202

Warning: Creating default object from empty value in /home/gssn/public_html/ipsorg/blog/ips/wp-content/themes/platform/includes/class.layout.php on line 206

Warning: Creating default object from empty value in /home/gssn/public_html/ipsorg/blog/ips/wp-content/themes/platform/includes/class.layout.php on line 224

Warning: Creating default object from empty value in /home/gssn/public_html/ipsorg/blog/ips/wp-content/themes/platform/includes/class.layout.php on line 225

Warning: Creating default object from empty value in /home/gssn/public_html/ipsorg/blog/ips/wp-content/themes/platform/includes/class.layout.php on line 227

Warning: Creating default object from empty value in /home/gssn/public_html/ipsorg/blog/ips/wp-content/themes/platform/includes/class.layout.php on line 321

Warning: Creating default object from empty value in /home/gssn/public_html/ipsorg/blog/ips/wp-content/themes/platform/includes/class.layout.php on line 321

Warning: Creating default object from empty value in /home/gssn/public_html/ipsorg/blog/ips/wp-content/themes/platform/includes/class.layout.php on line 321

Warning: Creating default object from empty value in /home/gssn/public_html/ipsorg/blog/ips/wp-content/themes/platform/includes/class.layout.php on line 321

Warning: Creating default object from empty value in /home/gssn/public_html/ipsorg/blog/ips/wp-content/themes/platform/admin/class.options.metapanel.php on line 56

Warning: Creating default object from empty value in /home/gssn/public_html/ipsorg/blog/ips/wp-content/themes/platform/admin/class.options.metapanel.php on line 49

Warning: Cannot modify header information - headers already sent by (output started at /home/gssn/public_html/ipsorg/blog/ips/wp-content/themes/platform/includes/class.layout.php:164) in /home/gssn/public_html/ipsorg/blog/ips/wp-includes/feed-rss2.php on line 8
IPS Writers in the Blogosphere » Tripoli http://www.ips.org/blog/ips Turning the World Downside Up Tue, 26 May 2020 22:12:16 +0000 en-US hourly 1 http://wordpress.org/?v=3.5.1 Tracking Libya’s Progressive Collapse http://www.ips.org/blog/ips/tracking-libyas-progressive-collapse/ http://www.ips.org/blog/ips/tracking-libyas-progressive-collapse/#comments Fri, 21 Nov 2014 15:54:11 +0000 Wayne White http://www.lobelog.com/?p=27038 via Lobelog

by Wayne White

Libya’s chaos and violence may seem like a continuum of painful replays. However, as the situation festers, the risk of extremist elements gaining a more dangerous foothold and broader freedom of action increases. Indeed, since the beginning of this year, militant Islamists have gained ground overall, undermining what little governance remains. Making matters worse, a Libyan Supreme Court decision has gone against the newly elected and relatively secular government.

Debating whether Libya is a failed state is academic even though the country has resembled one for the past six months. Even a senior Libyan official admitted back in August that most “factors at the moment are conducive to a failed state.” Unfortunately, Libya’s problems won’t be contained. Militant extremists and terrorists thriving amidst this mess will spread violence even farther beyond the country’s practically non-existent borders than they have already.

House of Cards

Most recognizable forms of authority in Libya have steadily imploded this year with the explosion of greater violence in the country’s two largest cities (Tripoli and Benghazi), the flight of foreign workers and embassies amidst kidnappings and murders, and the disarray affecting all manners of central governance (though its writ was already limited). In fact, Libya never evolved beyond the dominance of militias that refused to disarm following the struggle against Muammar al-Qadhafi.

Shaky stability in the capital city of Tripoli until mid-2014 depended on a wary balance of power between two powerful militias employed by Libya’s parliament, the General National Council (GNC). The Islamist militia comes from Libya’s third largest city of Misrata, while the other secular nationalist militia is from the tough Zintan mountain region south of Tripoli. The Misrata militia (now “Libya Dawn”) was linked to Islamist members, and the Zintani forces to its secular caucus. At the time, the GNC had a modest Islamist majority.

But the election in June of a secular majority permanent House of Representatives (HOR) triggered the collapse of the militia power balance. The larger Libya Dawn secured the upper hand over the Zintanis, seizing Tripoli. Libya Dawn reconvened mainly the Islamists from the GNC, proclaiming the body the true Libyan government.

The HOR fled east, taking refuge near the Egyptian border in the small city of Tobruk. Ex-General Khalifa Haftar’s effort since spring 2014 to crush extremists like the al-Qaeda affiliated Ansar al-Sharia in Libya (ASL) had experienced mixed results. Then, after solid gains against ASL forces in Benghazi in October, the beleaguered HOR embraced Haftar as acting on behalf of the newly elected parliament.

But the Libyan Supreme Court declared the internationally recognized HOR unconstitutional on November 6, arguing that the committee that prepared the election law for the June poll, which elected the HOR, violated Libya’s provisional constitution. The court remains, however, in Tripoli under Islamist occupation and originally was not asked to address the legality of the HOR, making its ruling questionable. Moreover, even if there were some inconsistencies involving election procedure, they pale against Libya Dawn’s violent seizure of Tripoli and revival of a rump GNC that no longer has any legal mandate whatsoever. The most recent election, quite an achievement under the circumstances, at least reflected voters’ preferences.

A map featuring Libya’s major cities and border states.

Consequently, despite urgings from some quarters that the HOR be abandoned, the UN and most foreign governments have not done so. As of Nov. 17, Turkey and Chad appeared to be the only exceptions.  Embracing the court decision, the rump GNC has offered a national dialogue, something that would have been of value prior to Libya’s descent into far greater chaos in 2014. Earlier this year, when there was more to work with, I had discussed the advantages of such a meeting being held at a neutral venue abroad and being overseen by the UN along with the governments that backed the anti-Qadhafi struggle in 2011.

Of course, Libya has only spiraled further downwards since then. But because both governments share the need for revenue, Libyan exports still rebounded to more than 800,000 barrels per day (BPD) in September (although still only 1/3 of capacity). Following the court decision, however, Libya Dawn sought to control the country’s oil, seizing the 300,000 BPD western El-Sharara field. But Sharara was shut down, with Zintani forces blocking the pipeline to its northern export terminal of Zawiya. Then a security guard strike over unpaid wages closed Tobruk’s Hariga export terminal last weekend. These closures have driven exports down to barely 500,000 BPD.

Whether emanating from a now more aggressive Libya Dawn or the beleaguered ASL (most likely the latter), a number of bombings have also hit HOR-controlled locales in eastern Libya. One went off in the town of Shahat during a meeting there between HOR Prime Minister Abdullah al-Thinni and UN Libyan Envoy Bernadino Leon On Nov. 10. Several car bombings occurred two days later. One hit a busy street in front of the Tobruk hotel housing the HOR; another hit the airport used by al-Thinni near the town of Bayda. A third bomb blew up in Benghazi (where fighting between the forces of Haftar and the ASL has intensified again).

The fighting in Benghazi became so intense that Leon arranged a 12-hour humanitarian ceasefire on Nov. 19 so the Red Crescent could evacuate civilians and casualties from affected areas. The UN Security Council meanwhile blacklisted ASL branches in both Benghazi and Derna.

Located between Benghazi and Tobruk, Derna has been an extremist hotbed since the 1990s. Youthful demonstrators there declared their allegiance to the so-called Islamic State’s (ISIS or IS) “Caliph” Abu Bakr al-Baghdadi in late October. With Haftar’s air assets sorely limited, Egypt probably took aim at jihadi targets there with airstrikes on Nov. 12, despite Egyptian denials. Egyptian airstrikes have previously hit Tripoli and Benghazi. Fighter-bombers from the United Arab Emirates (UAE) have also staged through Egypt against Benghazi’s extremists.

Spillover Effect

Libya remains a vast arsenal of weapons, ammunition and explosives. The Sinai-based Beit al-Maqdis, which has sworn allegiance to IS, continues to receive Libyan munitions despite Egyptian countermeasures. The Jihadi group killed 33 Egyptian soldiers on Oct. 24. It struck again on Nov. 13, killing five soldiers and police. Near the northern end of the Suez Canal, militants or their smugglers had fired on an Egyptian Navy patrol boat wounding 5 sailors a day earlier, with eight others still missing. Sinai jihadists also released a lengthy video on Nov. 14 showcasing their suicide bombing that killed the soldiers in October, with participants shouting: “good news to al-Baghdadi!” The violence appears to be continuing unabated, with a likely Beit al-Maqdis bombing having hit a police checkpoint in a Cairo suburb just yesterday.

Libya also continues to export violence in various other directions. Four Tunisian soldiers were killed and 11 wounded in a Nov. 5 bus bombing. Much of the residual violence in Tunisia meanwhile stems from the cross-border infiltration of munitions from ASL. Malian jihadists, using Libya as an arsenal and for sanctuary, attacked a border village in Niger on Nov. 19, killing nine Nigerien security personnel.

With the West’s attention absorbed by IS, the negotiations over Iran’s nuclear program, Israeli/Palestinian affairs, and more, Libya has been woefully neglected. Yet the longer the country’s problems fester, the worse they will get. Indeed, even more IS-inspired connections with Libyan and associated jihadists surely will emerge in this chaotic environment. Simply watching Libya’s meltdown has achieved nothing.

Follow LobeLog on Twitter and like us on Facebook

]]>
http://www.ips.org/blog/ips/tracking-libyas-progressive-collapse/feed/ 0
A Rush for the Exits in Libya http://www.ips.org/blog/ips/a-rush-for-the-exits-in-libya/ http://www.ips.org/blog/ips/a-rush-for-the-exits-in-libya/#comments Fri, 01 Aug 2014 14:50:49 +0000 Wayne White http://www.ips.org/blog/ips/a-rush-for-the-exits-in-libya/ via LobeLog

by Wayne White

The withdrawal of American and most other foreign missions from Libya has left its people more alone than ever before. Legitimate political authority and much of the economy has been seriously damaged. Despite temporary successes, none of the militias or Libyan army units flailing away at each other have [...]]]> via LobeLog

by Wayne White

The withdrawal of American and most other foreign missions from Libya has left its people more alone than ever before. Legitimate political authority and much of the economy has been seriously damaged. Despite temporary successes, none of the militias or Libyan army units flailing away at each other have scored enough gains to alter the overall situation. The international community should attempt to coax the leading players in this mess to assemble at a foreign venue where enough differences might be hashed out to dampen the raging violence and chaos.

The July 26 American withdrawal from Tripoli was part of a bunch of countries pulling out their embassy staffs, foreign workers, and other nationals. France followed suit on July 30 extracting its ambassador, several dozen French expatriates, and some British nationals. Spain abandoned its embassy on the 31st, and China evacuated hundreds of its workers to Egypt. The Greek Navy pulled out its diplomats and over 100 other foreigners today.

The escalation in clashes involving militia, renegade, and government forces is not the only driver. Doing any sort of work or business in Libya has become too risky.  Kidnappings, murders, or combat-related deaths of foreigners spiked in 2014. On July 26, 23 Egyptian workers died when a militia rocket destroyed their Tripoli quarters. Unknown gunmen attacked and attempted to hijack a British convoy heading for the Tunisian border with some embassy staff on the 27th. Philippine Foreign Secretary Albert del Rosario rushed to Libya on July 31 to organize the departure of 13,000 Philippine workers after one worker was beheaded and a nurse gang-raped.

Over 100 Libyans have been killed and 400 wounded in Tripoli in recent weeks, most in the vicinity of the embattled airport where Libyan airliners are smoking hulks, the main terminal is shattered, and fuel tanks continued to burn through the 31st because of fighting involving artillery and rockets. Fighters have closed off approaches to southern Tripoli with earthen barricades. The main adversaries are the Islamist “Central Shield” militia from Libya’s 3rd largest city, Misrata (supporting Islamists in parliament), and the rugged nationalist militias from the mountainous Zintan area south of Tripoli (backing parliamentary secularists and renegade anti-extremist General Hiftar).

Had Tripoli not descended into such intense violence recently, the focus would have stayed on Benghazi where General Khalifa Hiftar (or Haftar) has continued his “Operation Dignity” against extremist Muslim militias, especially Ansar al-Sharia in Libya (ASL). Hiftar has the support of more moderate militias, the Libyan Army’s Special Forces, the Libyan Air Force, and many police. Although suspect in some quarters because of his past CIA and distant Qadhafi regime connections, Hiftar was hailed by many Libyans as a potential savior from Islamic militancy.

More recently, however, Operation Dignity has run into trouble. Just in the past few days, ASL, with allied militants from the Benghazi Shura Council, downed a Libyan Air Force fighter jet, overran a Special Forces base, and today blew up Benghazi’s police headquarters seizing stocks of weapons at several facilities as they pushed back Hiftar’s forces.

With less protection than diplomats or other foreigners from fighting in their midst, and other violent crimes against Libyans now more common, Tunisia announced that up to 6,000 Libyans have been crossing the border per day this week to escape Libya’s dangerous lawlessness. Mustafa Abushagur, briefly Libya’s first post-Qadhafi prime minister and newly elected member of parliament, was kidnapped on July 29.

Typically, Libyans targeted for crimes are more affluent, skilled, politically active, or relatively Western-oriented. These people comprise most of Libya’s professionals and highly trained workers. As they flee, the country’s ability to function in terms of medical services, education, technical services, etc. erodes.

Governance Vacuum

Acting Prime Minister Abdullah al-Thinni, who has recently been in eastern Libya, has been trying (unsuccessfully) to separate various warring parties. Meanwhile, in order to elect a new prime minister, Libya’s General National Congress (GNC), discredited and with its mandate expired, is set to pass the torch to the recently elected House of Representatives (HOR) on August 4. This was supposed to be a notable step toward a permanent legislature.

Islamists narrowly held the upper hand in the GNC, but not in the new HOR. With Tripoli in turmoil, the formal handover had shifted to Benghazi. But with fighting also raging there, it may have to be moved to the smaller city of Tobruk between Benghazi and the Egyptian border. Little has been heard of a commission appointed a couple of months ago to draft a final constitution.

Clearly, efforts to establish a measure of enduring central authority have all but foundered. Earlier this year, the GNC gamely set about to move the ball forward with elections (which came off with some difficulty) and a schedule for transition, despite considerable strife at that time. Now goals challenging enough a few months ago could be put on hold or become irrelevant in the face of more conflict, even societal implosion. In addition to previous indicators of collapse like crippled oil exports and iffy governance with alternative nodes of power often in confrontation, even shipping currency to the country’s banks is now crippled, strangling commerce, trade, and over normality.

Can New Diplomatic Ground Be Broken?

On the scene, foreign missions could achieve very little while hunkered down with violence flaring all round them. However, their departure, although symbolic of Libya’s failures, need not halt international efforts to assist.

In fact, outside engagement might make a difference. That would mean summoning under the aegis of UN Secretary General Ban Ki-moon as many major Libyan players as possible. Under the circumstances, this should be daringly comprehensive, involving not only recognized officials, but also militia leaders, eastern federalist leader Ibrahim al-Jathran, and General Hiftar.

A few of the non-official actors in particular may never have come face to face before. Several extremist militias probably would not show up, especially ASL. However, that could make such an exercise more likely to succeed. With Islamist extremists already a common enemy among most of the rest (including quite a few relatively more moderate Islamists), putting aside or resolving differences in order to face such a dangerous foe more successfully could emerge as such a conference’s most compelling incentive for progress.

Follow LobeLog on Twitter and like us on Facebook
]]> http://www.ips.org/blog/ips/a-rush-for-the-exits-in-libya/feed/ 0
Libya Is In Deep Trouble: The US Must Make Its Move http://www.ips.org/blog/ips/libya-is-in-deep-trouble-the-us-must-make-its-move/ http://www.ips.org/blog/ips/libya-is-in-deep-trouble-the-us-must-make-its-move/#comments Fri, 06 Jun 2014 15:32:18 +0000 Wayne White http://www.ips.org/blog/ips/libya-is-in-deep-trouble-the-us-must-make-its-move/ via LobeLog

by Wayne White

Former General Khalifa Haftar’s (or Hiftar’s) eastern-based military challenge against parliamentary Islamists and armed Muslim extremists continues to spark more violence. Meanwhile, government authority in the capital of Tripoli has practically disintegrated with two rival prime ministers and a parliament bitterly split between Islamists and more secular elements. Amidst [...]]]> via LobeLog

by Wayne White

Former General Khalifa Haftar’s (or Hiftar’s) eastern-based military challenge against parliamentary Islamists and armed Muslim extremists continues to spark more violence. Meanwhile, government authority in the capital of Tripoli has practically disintegrated with two rival prime ministers and a parliament bitterly split between Islamists and more secular elements. Amidst this chaotic scene, the threat to foreign embassies has increased, including to the US, by Libya’s leading terrorist group.

Haftar presses on

Although failing to capture enough organized support across Libya to make decisive gains, Haftar has been able to sustain a robust challenge from his eastern perch. He has found a ready constituency across the country among relatively more secular — even some moderate Islamist — Libyans weary of militia-dominated politics, governmental division, and Islamic extremist violence.

The extent of popular opposition to Islamic militants is illustrated by the personality cult now evident in various locales built around Egypt’s General Abdel Fattah al-Sisi. Posters of al-Sisi and scattered demonstrations in favor of his presidential bid in Egypt since Haftar began his military challenge last month clearly show many Libyans want Haftar to assume a similar role in Libya, cracking down harshly on the extremists.

Libya’s 2012 parliamentary elections (only a month after Mohamed Morsi’s election as Egyptian president) resulted in a noticeably more secular/liberal line-up than Morsi achieved in Egypt. And this was before Morsi’s abuses of power began undermining his image as a relative moderate.

The possibility of valuable support to Haftar was noted in a May 30 Stratfor assessment: although unconfirmed, Haftar could be receiving Egyptian military aid in various forms. In fact, the Tripoli-based Libyan newspaper al-Wasat claimed on June 2 that Libya’s pro-Haftar minister of culture flew to Cairo along with the foreign affairs, civil society and health ministers seeking “assistance in calming the situation.” The largely al-Sisi controlled Egyptian media has, naturally, favored Haftar. So a measure of concrete Egyptian aid for Haftar either now or in the future is a real possibility.

Fighting in the east especially has continued as Haftar has launched more ground and air attacks against Ansar al-Sharia in Libya (ASL), the most dangerous jihadist militia based there (declared a terrorist organization by the US). Earlier this month, air force assets and Libyan Special Forces troops siding with Haftar attacked ASL facilities in and to the east of Benghazi. In the face of air strikes from helicopters and jets, ASL combatants fought back hard. Multiple rocket launcher fire also was exchanged. Casualties were over 100 by June 2, but the fighting appears to have been militarily inconclusive.

Meanwhile, the near continuous clashes have shut down Benghazi. In the latest bombardments, errant bombs hit the university, rockets fell on a warehouse district, and various munitions have fallen in residential neighborhoods.

A tale of two prime ministers

Compounding Libya’s travails, a dispute has been raging since last month over who holds the office of Libya’s prime minister. Islamists, supported by a number of parliamentary independents in Libya’s General National Congress (GNC), appointed — over bitter secularist opposition — a businessman backed by the Libyan Muslim Brotherhood, Ahmed Maiteeq. However, Maiteeq failed to receive sufficient votes on the first ballot, and the shadowy second ballot that elected him has raised serious questions.

Since that controversial early May vote, Interim Prime Minister Abdullah al-Thinni has refused to step down, citing conflicting instructions from the GNC members following the vote. Later in May, the Libyan justice ministry’s legal department ruled that Maiteeq’s election had been illegal. Finally, on June 5, an official of Libya’s Supreme Court said the manner of Maiteeq’s election violated Libya’s standing temporary constitution. But al-Thinni said a final court statement would not be issued until June 9.

Two days earlier, Maiteeq, backed by some militiamen and police, took the prime minister’s office from al-Thinni and held his first meeting with his new cabinet.  The GNC’s Islamist Speaker Nuri Abu Sahmain also ordered the Libyan Central Bank to freeze all government accounts to cut off al-Thinni’s cabinet ministers from funding their activities. Al-Thinni, however, remained defiant, awaiting word from the court.

While it might appear that the standoff is being resolved in al-Thinni’s favor, the situation is likely to remain chaotic. GNC Islamists, and possibly their militia ally (the Libyan Central Shield from nearby Misrata) doubtless have been angered and may stand by Maiteeq, trying to arrange another GNC vote in his favor. Al-Thinni went to Benghazi yesterday to express sympathy over the city’s plight, perhaps tellingly visiting with Libyan Special Forces there that have sided openly with General Haftar.

Rising potential threat to the US Embassy

On May 27 Ansar al-Sharia leader Mohammad al-Zahawi called Haftar an “American agent” on Libyan TV and warned if the US continued to back him it would suffer a “shameful defeat.” The State Department quickly said there has been no US contact with Haftar and no support, either “explicit” or “implicit.”

Nonetheless, with Zahawi’s group declared a terrorist entity by Washington and now Haftar’s most notable target, widespread belief probably exists among Libyan jihadists that Haftar has gotten some sort of American assistance. In any case, the US promptly warned its citizens against traveling to Libya and those already there to depart immediately, describing the situation on the ground there as “unpredictable and unstable.”  On June 5 a Swiss worker with the Red Cross was murdered in the Libyan coastal city of Sirte by unknown gunmen.

Although an elite US military evacuation (or rescue) force, depending on the circumstances, has been poised in Sicily for over two weeks, US Embassy personnel in Tripoli have not been withdrawn. According to the State Department, embassy staffing is somewhat limited “because of security concerns.” On May 27, State Department Spokesperson Jen Psaki said the US is continuing “to review the situation and address embassy security concerns.”

Last month, the US, along with other major European players, appointed Libyan envoys to work with the UN in trying to engage with Libyan actors interested in “political transition.” UN Libyan Envoy Tareq Mitri, reportedly roughed up by militiamen on his arrival in Tripoli on June 4, warned that it’s ultimately up to Libyans to solve their own problems.

The bottom line now is that with a robust challenge to central authority, governance and the small Libyan military in disarray, militias gaining more sway in Tripoli, and the ASL increasingly under attack and hitting back, there is no coherent security outside the US embassy’s walls. This was illustrated on June 4; hours after Haftar survived a probable ASL truck bombing at his compound near Benghazi, gunmen fired a rocket propelled grenade (RPG) into the same floor of the prime ministerial building in Tripoli that houses Maiteeq’s office.

This apparent tit-for-tat assault (Haftar views Islamists in the GNC backing Maiteeq as aiding “terrorists”) again shows just how vulnerable Libya’s prime ministers have been. Ali Ziedan last year was kidnapped from his office by a militia on the government’s own payroll, al-Thinni’s home was assaulted (unsuccessfully) by gunmen in March, and now it’s clear that Maiteeq has been unable to secure the area surrounding his own offices.

If the very core of governance can be struck so easily, any thought of meaningful local assistance to resist a violent attack against the US embassy is misplaced. And, with embassy staff shielded by defensive walls only meant to slow down attackers, plus a small US Marine security guard contingent not meant to resist a determined attack, reliable local government security is needed for protection. This is true for US embassies around the world. Moreover, aside from the endemic violence that’s now pervasive, it’s not even clear which parts of the government — let alone militias supposedly working for the government — currently answer to whom.

With this in mind, I must continue to warn, as I did on May 22, that it’s imperative for the White House to act quickly to preclude a possible tragedy in Tripoli that could be far more costly than the September 2012 assault on the more thinly staffed US consulate facilities in Benghazi. In fact, a rescue attempt amidst an attack on the embassy by an extremist militia packing heavy machine guns, RPG’s, and light anti-aircraft weaponry also could involve losses among the rescue teams and their helicopters.

Follow LobeLog on Twitter and like us on Facebook.

]]> http://www.ips.org/blog/ips/libya-is-in-deep-trouble-the-us-must-make-its-move/feed/ 0
A Walmart for Libya http://www.ips.org/blog/ips/a-walmart-for-libya/ http://www.ips.org/blog/ips/a-walmart-for-libya/#comments Tue, 25 Sep 2012 14:51:46 +0000 Paul Sullivan http://www.ips.org/blog/ips/a-walmart-for-libya/ via Lobe Log

Last Sunday former President Bill Clinton asked the CEO of Walmart if he would open a store in Libya.

Surely Libya needs more jobs and needs to get its economy going, but I am not sure how a Walmart would do that. A large proportion of the goods that [...]]]> via Lobe Log

Last Sunday former President Bill Clinton asked the CEO of Walmart if he would open a store in Libya.

Surely Libya needs more jobs and needs to get its economy going, but I am not sure how a Walmart would do that. A large proportion of the goods that Walmart sells in the United States are imported into the United States, not made there. Seventy-five percent of the foodstuffs in Libya are imported from elsewhere. Libya has no real manufacturing base. Libya’s supply chains are hardly up to the task for feeding into a group of Walmarts. Most of the managers and even greeters may have to be foreigners initially. The people setting up the supply chains would also likely be non-Libyans given the complexity of what needs to be done and the lack of applicable training for most Libyans.

The finance for the setting up of the Walmart(s) would have to be via foreign direct investments likely from the United States. Those investments would need some insurance from the Overseas Private Investment Corporation. There would also need to be lots of cooperation and aid from the US government and the Libyan government regarding security for the initial buildings and the entire supply chain within Libya. Maybe the World Bank, the International Finance Corporation and others could be involved in developing the basic infrastructure and connections needed. Effort would also be required for improving the capacity of the Libyan government to handle economic development and the development of businesses.

Physical as well as financial security would be keys to the success of a Walmart in Libya. It would not take much for some trucks or even a store to have problems. Walmart is definitely an American brand and there are lots of Salafis and others who would want to do damage to anything representing an American brand. Consider what happened to the French Carrefour markets in Tunisia during its revolution. Think of what happened to outlets of major American food chains like KFC during the recent riots against that repulsive anti-Islam film. Think of the increasing anti-Americanism amongst some groups in the region and you can see that there could be some physical security issues.

Financial security may require that the payrolls, insurances, cash flows for inventory, maintenance, upkeep and more be kept offshore in part for a while. As the security and banking capacity situations in Libya change this could change. There could also be some significant foreign exchange risk involved, especially if the new Libya becomes more unstable and cannot get its economic act together. However, a good risk management team could hedge this if they knew the country well.

There are also some inherent financial and physical risks by simply being in North Africa and near Egypt and Tunisia, two countries that are still in the midst of trying to find their ways. Their revolutions are likely far from over. There is also a problem with Al Qaeda in the Maghreb and other AQ-like groups floating around the region. The instabilities to the south of Libya are hardly comforting.

Even so, my sense is that President Clinton’s heart was in the right place even if his logic needed a bit more work.

Libya needs foreign investment. There is a lot that American companies can do in Libya.

There are many people in Libya who are pro-American given that we helped their country gain some independence from the wretched regime of Qhaddafi. Many of the expatriate leadership of Libya of the older generations spent some time in the United States. We could gain a lot by helping some of the younger people, appropriately vetted, to get scholarships to visit and study in the United States. Sometimes the best way to make friends and future allies is to give them a good experience in the United States and provide high-quality education and training. There are great opportunities even within the massive and volatile risks of Libya.

That said there are many people in Libya including some militias, extremist groups, pro-Ghaddafi remnants and more who do not like the United States, to put it mildly.

It will be vital to understand the overall environment on the ground of who is who and where they stand before moving forward. It may be a big mistake to write off Libya because of the vicious and evil behavior of a few when the majority of the country could benefit. But we need to be sure.

However, dropping Libya as a place to help may end up delivering it to the extremists and that is a very bad idea.

There is another side to the Walmart story. What about all of the small mom and pop stores, green grocers, kiosks and others in Libya who may be put out of business due to the Walmart. Many of these have been put out of business here. How would Libyans react to being put out of business by a massive American company?

On the other hand, if Walmart and other US companies take the leap into the new North Africa they could help develop countries and their people while at the same time making serious profit. However, the Walmart model may not be the best one to start out with.

Indeed, there are risks. Normally in such situations the only companies that come in are the oil and gas companies or other major energy companies that have vast experience working in conflict and post-conflict zones.

Maybe President Clinton was trying to get a discussion and debate going in US business communities as well as in the government about how the US could help the economies of these hurting countries in a (hopefully) post-conflict environment. This is an important thing to consider even if the situation looks dismal from afar.

Developing the economies of these countries will be far from easy and there are likely to be many bumps along the road – some of them very steep and risky. However, with the right incentives and the right risk management, it may be possible to make a difference and to do well by doing good.

Perhaps there could be some tax breaks and free land to build on in return for training and educating Libyans and increasing the percentage of Libyans working at the Walmart or other such stores. There will need to be some give and take. I know that the tax breaks and free land (for a limited time of perhaps 10 to 20 years and then the lease fees kick in) are contentious. But Libya needs to move forward and get its people — especially its young people — employed. Maybe the United States could improve its reputation in the region by doing just that.

You make more friends by creating jobs than dropping bombs. Developing a better security situation in a region via real strategic thinking can involve a lot more than just the military and the State Department. Sometimes businesses can make a big difference.

However, many businesses need to be sure that they are not going to walk into mine fields before they move forward with serious investments.

There is a certain menace attached to Libya now. Violent extremists created that. Should we give up on the rest of the Libya because of the people who want to destroy it rather than build it up?

 

]]> http://www.ips.org/blog/ips/a-walmart-for-libya/feed/ 0