The struggle for control of Libya’s central bank is intensifying amid a divided political landscape, following a civil war that last ended in 2020. The UN-recognized government and a rival eastern administration, led by Gen. Khalifa Hifter, are locked in conflict that threatens to destabilize a fragile peace established post-civil war, as they navigate the control over oil revenues critical to their power.
Since the overthrow of former dictator Muammar Qaddafi during the 2011 Arab Spring, Libya has been embroiled in a cycle of instability, lacking sustained peace. Following a civil war that concluded in 2020, the nation remains divided along east-west lines, with two rival governments at odds with one another. This situation is now being exacerbated by a struggle for control of the central bank, which manages Libya’s substantial oil revenues, thus becoming a target for political factions competing for influence. Recent developments escalated tensions when the presidential council attempted to dismiss the head of the central bank, Sadik al-Kabir. Despite this decree being deemed legally ineffective, the leader of Libya’s western government supported the motion, indicating an intent to form a new board of directors for the bank. This conflict threatens to unravel the fragile status quo that has kept violence at bay since the ceasefire established post-Hifter’s failed attempt to seize Tripoli. Currently, the United Nations-recognized government, led by Prime Minister Abdul Hamid Dbeiba, only governs western Libya, while the eastern region is controlled by Gen. Khalifa Hifter, who wields considerable power. Since Hifter’s offensive was halted in 2020, a tacit arrangement allowing both major factions to secure a share of Libya’s oil wealth has curbed violence between competing militias, yet has failed to deliver tangible improvements to the lives of ordinary Libyans. The interim leadership, brokered by the United Nations, was intended to be temporary following projected nationwide elections that have yet to materialize.
Libya’s political landscape is marked by a precarious balance of power, with ongoing conflicts stemming from a decade-long struggle for control following Qaddafi’s ousting. The country has seen the emergence of two main political entities, each navigating their governance amidst a backdrop of civil unrest and economic challenges stemming from unequal access to oil resources. The central bank is crucial in this context, as it holds the keys to Libya’s oil wealth, making it a focal point in the power struggles between the eastern and western governments. The failure or success of institutions like the central bank can significantly impact Libya’s broader socio-economic dynamics, influencing the quality of life for citizens and potentially rekindling violence between armed groups if political disputes escalate. The original plan for resolving the political impasse involved elections aimed at unifying the fragmented state, but these elections have not occurred, leaving existing leadership in place without a clear mandate and further deepening the crisis.
The ongoing fight for control of the central bank encapsulates the broader political strife in Libya, reflecting deep-seated divisions that jeopardize the tenuous peace. As factions vie for power amid a backdrop of economic necessity fueled by oil revenues, the unresolved political crisis signals that without effective governance and genuine reconciliation, Libya’s stability remains at considerable risk.
Original Source: www.nytimes.com
