Libyan Opposition Parties

As you guys know, I've been doing most of researching on domestic issues, primarily opposing views as manifested through publications from opposition parties and the general atmosphere under Qaddaffi via literature. This past week has mostly been the former. Thanks to Ryan for helping me identify the National Front for the Salvation of Libya (NFSL) which, like all opposition parties/groups, is based outside of Libya (Sudan in this case). Their main goal, of course, is to oust Qaddaffi. Their site, http://www.nfsl-libya.com/ has an interesting archive of their publication Al-Inqadh along with links to another website that hosts an archive of a radio show titled Sawt al-Amal (Voice of Hope). I am not sure if Al-Inqadh is still being published as their last issue on the website is from 1998.
There is also the National Conference for the Libyan Opposition (NCLO) formed in 2005 and headed by the NFSL. They're based in London and hold yearly conferences for, well, Libyan opposition. Since their inception they have an Accord that they push for:

The Conference declares that the return to the constitutional legitimacy requires the following actions:

1. The relinquishing of all Colonel Mouamar al-Qadhafi’s revolutionary, political, military and security powers;

2. The formation of a transitional government run by individuals who are recognized of being trustworthy and have the capabilities to run the country for a period no longer than one year, in order to bring the country back into constitutional life; and

3. Establishment of a constitutional and democratic state built on key concepts such as political and cultural diversity and peaceful transition of government powers; a state that guarantees fundamental freedom and human rights, that establishes the rule of law, equality and equal opportunity to all Libyan citizens without any form of discrimination; that protects and develops national resources, and endows balanced foreign relations built on mutual respect.

The Conference calls for the following political, media and legal actions:

1. The political solicitation of Libyans to fund the establishment of an effective way to address the Libyan people.

2. The creation of a legal mechanism to prosecute all members of the Ghaddafi regime who have committed crimes against humanity through the relevant international courts.

http://www.libya-nclo.com/English/tabid/138/language/ar-JO/Default.aspx

I would really like to continue research into these two organizations and see what they're all about, except that their websites are quite limited (both their English and Arabic content). It would probably be more fruitful to dive into the NFSL's archive of publications which starts in 1982.

As a side note, from the Al-Jihad newspaper Ryan found in the library, I do know that it is/was written and published by an M. Fawzy/Fawzi who is based in London. I did search and found someone that may match this M. Fawzy and shot him an email. I have yet to hear anything back.

As of right now, I am not entirely sure on which direction to head. Do I focus on finding more information about these opposition groups and see what the radio archive has to offer (I've listened to some and they're quite interesting) in addition to Al-Inqadh. Or do I keep digging until I find similar groups/publications? What do you guys think? Guess we'll see at the next meeting with Prof. Chaudhry.

~Duso

Foreign Direct Investment (FDI)

So i've been focusing on the post-sanctions era in Libya and before i got into the detailed accounts of who's getting contracts and who the highest bidders are, i wanted to understand exactly how invesment works and what the stakes are (basically see how the laws dictate the process of Foreign Direct Investment). Below, you'll find a very detailed/tedious list, but it helped me understand how investment in Libya works and reading through the provisions of the major laws helped me understand why there's been such a sudden rush to investing in Libya.

The general argument is that Libya is gradually liberalizing since sanctions, not only in oil sectors, but various other areas in infrastructure. They'er on the "right track" for attracting FDI. Hopefully the info below will offer you better insight. This is only the basics so hope it helps.


*by the way, sorry if there's mispellings and what not--i've been staring at this computer for far to long*

Quick look at Libyan Economy:



Reasons for increased interest in Libya since lifting of sanction in 2004:

• Libya is rich in natural and mineral resources that can be considered the basis for many potential industrial, agricultural and tourism projects
• Libya is a major oil produces and can be considered the hot spot for new explorations
• profiles and ready access to European markets make Libya one of the industry's highest profile targets
• After its concessions to the US and the UN (by andandoning development of WMDs and returning suspects for Pan Am bombing), Libya has re-entered the world economic scence; viewed as a stable/secure partner.
  
• Libya has a pool of skilled workers eager to emerge in the work force.
  
• New political and economic reforms (often referred to as the "Green Perestroika) in which Gaddafi has attempted to liberalize more markets and change government/business relations; these changes have been designed by the Libyan government in its developments goals and to sustain the new course.

Libya is still not a simple market due to intricate laws and regulations, but there has been some improvement. These laws illustrate Libya's gradual change as they worked towards getting the sanctions removed:

Turning Points:

Investment Law No. 5

• amended in June 2003
• amendments allow co-investments between Libyan and foreign partners
• subtracted the projects of foreing investments to the main legal obligations regulating the activities of Libyan societies, in particular, to the registation procedures in the trade or industrial registers
• Application field of the laws remains restricted as it confirms that investments in Libya (even by Libyan nationals and subjects of Arab and non-Arab states) are still permissible in 5 main sectors, while all other domains should be determined by the government.
• established Authority for the Encouragement of Foreign Investment
  created with the purpose of facilitating foreign investment procedures and overseeing the application process
• components of Law presented below:

L.F.I.B. (Libyan Foreing Investment Board)

• most important body in charge of foreign investment
  
• Main objectives of board
• provide advice, information and support for investors
• identify and promote investments opportunities throught the elaboration and presentationof investment plans and economic studies for development of the country
• receive and consider applications for foreign capital investments
• issues licences as well as obtaining approvals required for investment projects
• develop investment programs and promotional activities to attract investors.
• recommend or renew exemptions, facilities or benefits for the investment projects
• look into complaints and protests of investors without affecting the investor's right to petition and legal action

One Stop Shop Service

• provides all services needed by foreign investors --being done by means of administrative offices within the premises of the LFIB
• considered an important sign in the context of "the simplification of procedures"
• Services/Offices:
• customs office
• immigration and passport office
• tax office
• labor force office
• Procedures and approvals that fall within the one-stop shop services:
• license and permits procedures
• export and import procedures
• import on foreign man power procedures
• amendments and changes introduces to the projects procedures
• ownership and renting or real estate procedures
• transfer of dividends procedures
• complaint procedures
  

• License and permits' procedures (further details to be posted)
• application for investment must be submitted to appropriate dept. in LFIB.
• GPC must approve
• LFIB will forwrd application to Management Committee of LFIB for further discussion and reccomendations.
• Once Management Committe approves, the Secretary of the GPC for economic trade will issues his decision for establishing the project under investment law 9
• investor shall open account under project's name in one of Libyan commercial banks of in the Libyan Arab Foreign Bank and start transferring project capital

• Investor Obligations
  
• maintain accounting books and records of the project
• prepare annual budget and cost-benefit accounts approves by legal accountant in Libya
• enable Board to review accounting books and other related documents
• Abiding by investment regulations and laws.
• Not to practice any other activities not mentioned in the license.
• Abide by all Libyan regulations and laws.
  

• Incentives and guarantees for investors--goal--better business environment
  
• exemptions for any projects from income taxes on its activities for a epriod of 5 years as of the date of commencement of the production or work. --period could be increased based on discretion of Secretary or GPC
• exemption from customs and other import taxes of equipments and machineries for the realization of the project and the necessary inputs to operation for the first 5 years of activity
• exemption from taxes and customs taxes to the export
• Article 23: prevents any possibility of nationalization of the investment
  

Free Trade Act of 1999

• established off-shore free trade zones (FTZ)
  
• 2006--two FTZ established (mostly for building toursism infrastructure)
  
1. Zwara Aba Kemmash FTZ
2. Musrata FTZ
   
• Field of Activities in Free Trade Zones:
• storage of transit and domestic goods, as well as goods produces within the Free Zones which are intended for export zones and goods imported for re-export
• unpacking, cleaning, re-packing and similar operations which change the state of products in the Free Zone and guarantee their manufacture to meet the demand of the market
• performing industrial processes
• rendering financial, bamking, insurance and other related services needed by investors within the Free Zone

• Privileges and Exemptions of Free Zones
• Free repatriation of invested capital and gained profits.
• Movement of capital and products between the Free Zone and foreign countries is not subject to any monetary restrictions or monitoring regulations
• Profits gained from activities also enjoy the same exemptions if reinvested.
• Investors can transfer losses suffered during exemptions period to the following years.
• Legal guarantees against the nationalisation of projects.
• Ownership of projects can either in full or in part can be transferred to another investor.
  
• Project periods according to clients demand.
• Easy establishment of projects in the Free Zones.
• Machines, equipment and instrumentation needed for projects established in the Free Zone are exempted from customs duties and other taxes of similar effect.
• Equipment and spare parts are exempted from all customs duties, import taxes and all taxes of similar effect.
• Goods exported or imported from or to the Free Zone are not subject to time limitation of warehousing.
• Movement of goods between the Free Zone and outside of the Libya are not subject to customs duties.
  
• Projects established in the Free Zone are not subject to procedures of trade register and register of importers and exporters.
  
• Investors are entitled to employ and import foreign labour with specialized technical qualifications needed for the establishment or operation of projects.
  

• Services Available to Investors
• Land plots of different sizes according to investor’s needs,
• Modern offices and covered warehouses at reasonable costs,
• Energy (oil, gas, electricity) at low price,
• Drinking water and sewage utilities and other services at suitable costs,
• Modern and versatile financial and banking services according to investors needs,
  
• Modern telecommunication services,
• Marine transport services to different international ports,
• Road transport services to African countries across the desert and to neighbouring Arab countries,
• Health insurance services to investors and employees working in projects established in the Free Zone,
• Complete insurance services,
• Legal and other consulting services.

Current Conditions:

• Gaddafi allowing for more privatization in public sectors
• All companies are still Libyan owned, but foreign investors are allowed to take majority stakes in companies
• General consensus is that due to Gaddafi's gradual "liberalization" and the meticulous laws and regulations, Libya is on the right track towards establishing itself on the world level with regards to FDI.
• Libya has a long way to go as the oil and gas sectors are still largely state directed and dominate the economy (90% of foreign exchange earnings and 75% of government revenue) http://www.dcci.gov.ae/content/Bulletin/Issue14/MarketMonEn_ISSUE14.pdf
• Many suggest that Libya needs to further liberalize its bureaucracy and further develop its banking sectors for security purposes
• Overall though, in reference to the chart below, FDI has substantially increased since the lifting of sanctions: (these are the most recent stats)
  

Things to DO...

• so at this point im going to look further into the Phoenicia Group, which is the leading U.S. Libyan diversified business and consultancy group. They're a major presence in Libya since 2004 and i'm really interested to see how interactive they are in Libyan business--main focus is on NON-OIL sector--so schools, hospitals, hotels...
• UAE in Libya: many UAE countries, particularly Dubai, are competing to gain stakes in the privatization of basic infrastructure. UAE is a major hand in developing the banking industry so i want to see how those economic relations play out and how competition is with Phoenicia.
  

so yea, i hope that gives you all an idea of what i'm up to. Good stuff!!!


Take Care,

Sahar

Libya Sanctions

Brief Timeline of Sanctions:

1981—President Ronald Reagan invalidates the use of US passport for travel to Libya.

1982—US bans imports of Libyan oil and a number of exports to Libya

1986—Reagan executive order: US total ban on direct import and export trade, commercialcontracts and travel related activities (due to Berlin disco bombing).

1992—UN Security Council imposes sanctions on Libya in order to pressure them to hand over two Libyan suspects in the Pan Am bombing.

1996—Iran Libya Sanctions Act is passed (ILSA)

1999—UN sanctions suspended when Libya surrenders two suspects in April.

2001—Act amended to allowing the US president to punish non-US firms investing more than $20 million annually in Libya’s energy sector.

2003—After Libya agrees to pay $2.7 billions in compensation to relatives of those killed in Pan Am attack, Britain drafts a Security Council resolution end UN sanctions. Libya also agrees to compensate for the 1989 bombinb of a French UTA airline. Security Council officially lifts sanctions.

2004—US lifts many economic sanctions against Libya and restores diplomatic ties after Libya stops the development of WMDS.

2008—Libya gains a non-permanent seat on the Security Council (a position the country will hold for two years). Sign of improving relations.

Iran and Libya Sanctions Act (ILSA)

First passed on August 5, 1996 by the US Congres.

Renewed in August 2001 for another 5yrs.

• Imposes new sanctions on foreign companies that engage in specified economic transactions with Iran or Libya.
• Bill sanction companies that violate the U.N. prohibitions against trade with Libya in certain goods and services which include
  
• Sanctions intended to:
• Help deny Iran and Libya of any and all resources that could be used to finance international terrorism.
• Limit the flow of resources necessary to obtain WMDs
• Put pressure on Libya to comply with U.N. resolutions, that among other things, call for Libya to extradite for trial the accused perpetrator of the Pan Am 103 bombing
• Specific Bill Provisions: ILSA requires the president to impose at least two of 6 sanctions on the foreign companies that make an investment of more than $20 million (in the case of Iran) and $40 million (in the case of Libya) in their energy sectors.
• Denial of Export-Import Bank loans, credits, or credit guarantees for U.S. exports to the sanctioned entity
• Denial of license for the U.S. export of military or militarily useful technology to that entity
• Denial of U.S. bank loans exceeding $10 million in one years to that entity
• If entity is a financial institution, a prohibition on its services as a primary deals in US government bonds; and/or prohibition on its service as a primary deal in US government funds (each counting as one sanction)
• Prohibition on US government procurement from the entity
• Restriction on imports from the entity, in accordance with the International Emergency Economics Power Act
• As of April 23, 2004, ILSA does not apply to Libya. Bush repealed the sanctions due to Libyan “cooperation.”

*Ever since the repeal of sanctions, there's been an unprecedented number of pending multi-lateral agreements between Libya and various countries in regards to the exploration and modernization of oil. I'm looking into post-sanctions Libya so i can get a better comparitive look.

Sahar

Libya's Revolution in Perspective: 1969-2000 Vandewalle

The first Chapter in Vandewalle's book (consisting of 9 themed chapters produced by 7 respective author's) outlines a general historical perspective on the execution of the revolution by the RCC in 1969, the policies pursued by the RCC from 1969-2000, its relationships with domestic industry, its relationships with the largely expatriate oil producing and exporting industry, its relationships with the West and Europe, and its attempts at liberalization starting in the late 1980's (1987) and continuing into the 1990's.

The following are a few important dates and events the chapter outlines:

Sept. 1, 1969 - Coup by young military officers puts an end to Sanusi Kingdom

Jan 1970 - Some of the names of the 14-member Revolutionary Command Council (RCC) released to the public:

Colonel Mu'amma al-Qadhafi
Major Ads as-Salam Jallud
Major Bashir Hawadi
Captain Mukhtar Abdullah Gerwy
Captain Abd al-Munim Tahir al-Huni
Captain Mustapha al-Kharubi
Captain al-Khuwaylidi al-Hamidi
Captain Muhammad Nejm
Captain Ali Awad Hamza
Captain Abu Bakr Yunus Jabr
Captain Omar Abdaallah al-Muhayshi

Oct 1970 - all country's ministries, except the Ministry of Oil, run directly by RCC members

Dec 16, 1970 - regimes first clear political agenda emerged:

1. Call for removal of foreign bases and troops from Libyan territory
2. for neutrality
3. National unity
4. Suppression of all political parties

January 14, 1971 - Qadhafi announced movement toward popular rule. Popular Congresses would appoint representative to the country's parliament and would directly elect the country's president.

March 20, 1971 - Tripoli Agreement (OPEC) - raised posted price of Libyan Crude to #3.32 per barrel -

June 12, 1971 - creation of the Arab Socialist Union (ASU) - much like Nasser's ASU as a more controlled system of mobilization--aimed at being the vanguard of the government

April 16, 1973 - Qadhafi announced Popular Revolution: new strategy aimed at mobilizing from the bottom up--involving lower middle and lower classes. RCC remained in total control of gov't.

Oct 17, 1973 (Wiki) - members of Organization of Arab Petroleum Exporting Countries (OAPEC, consisting of the Arab members of OPEC plus Egypt and Syria) announced, as a result of the ongoing Yom Kippur War, that they would no longer ship oil to nations that had supported Israel in its conflict with Syria, Egypt, and Iraq (the United States, its allies in Western Europe, and Japan).

November, 1974 (1) – meeting of ASU, split into two factions (1) wanted more orderly, planned course of action that included a carefully designed economic plan—technocratic solution to economy/politics (2) Pan-Arab ideological group pursuing activist policy willing to sacrifice country’s riches for Arab unity.

July 1975 – student led protest/political unrest (further research required.)

August, 1975 – RCC members Bashir Hawadi and ‘Uamr al-Muhayshi failed coup attempt. (Publication of the Green Book)

March 2, 1977 – The Socialist People’s Libyan Arab Jamahiriyya

November, 1977 – creation of the Revolutionary Committees charged with encouraging greater popular participation in the Basic Peoples Congresses, where high level of absenteeism occurs today.

March 3, 1978 – Qadahfi/ulama debate where Qadhafi Islamic legal rules could no longer be used as a guideline for economic and political relations in modern societies.

August 1981 – US shoots down two Libyan planes over the Gulf of Sirte.

November 4, 1981 – Exxon represented by Esso Standard Libya, INC. and Esso Sirte announced it would withdraw operations from the country

March 10, 1982 – US government adopted measure to prohibit the import of all Libyan oil in the country and started to restrict the flow of US goods to Libya.

January 1983 – Mobil followed suite in withdrawing from the country

April 1986 – US bombing of Tripoli and Benghazi

January, 1986 (2) – comprehensive US trade embargo against Libya
1987 – 1990 – Libya’s first attempt at liberalization, second wave of initiatives after 1990

April 1992 – 1999 UN multilateral sanctions

1993 – More economic reforms based on promoting tourism

1997 – General People Congress adopted Law 5. Allowing for foreign direct investment in the country.

Points to consider for further research:

Role of independent vs. major player oil companies in shaping Libya’s domestic policy. Role of the government in appropriating oil production? Constraints? (Occidental, LNOC, Exxon, Mobil, Elf-Aquitaine, Lipetco (Libya investment co)

Oil shocks and unregulated budgets contribution to civil unrest?

To what degree did the government’s policies towards nationalization of industry to include retailing outlets promote informal market development compared to that of US and UN sanctions?

Duso – check out an opposition publications by the National Front for the Salvation of Libya
– Salvation Forces – military wing