By Hassen Zenati
TRIPOLI - Libya, opening up to the world after decades of isolation, is aiming to dismantle the controlled economy with its waste and corruption but leave untouched the political bodies dominated by Muammar Gaddafi.
In a country noted for difficulty in divining its intentions, the dual-track was signalled in two major events this month. The first confounded forecasters of political change, the second put in place a more transparent streamlined approach to the mainstay of the north African country's economy - oil.
As Libya celebrated the 35th anniversary of the September 1, 1969 coup led by Gaddafi that toppled King Idriss, many expected the announcement of unprecedented political reforms.
But in a commemorative speech in his hometown of Syrte before hundreds of members of the country's "people's committees", Gaddafi neither touched on a possible nomination of a state president who would supervise the government's work, nor hinted at anyone who might succeed him. Gaddafi is not officially the head of state, seeing himself as Libya's "guide".
His 31-year-old son, Saif Al Islam (Sword of Islam) who persistent rumours - regularly denied - see as Gaddafi's heir, also showed himself to be especially discreet during the September 1 celebrations. He did not even appear three days afterwards for a ceremony putting a definitive end to the saga of the 1986 bombing of a Berlin nightclub even though Saif's charitable foundation, the body involved in compensating the victims of the bombing, signed the accord.
But the path for economic reform has already been clearly signposted.
Tripoli has set out the terms for foreign companies to obtain oil exploration rights for 15 blocs in the country and offshore, using a transparent bidding process aimed at wooing foreign investment for its sanctions-ravaged industry.
Some 20 international oil majors attended. A further presentation is to be held in London on September 15 after which companies not already operating in Libya will be required to make a formal expression of interest by September 28.
The process aims to draw a line under an arcane and much criticised system of direct talks with individual oil companies that previously governed the upstream sector in Libya.
But investors flying in to the vast country will be left in no doubt about the domination of Gaddafi in the life of the nation.
His portrait hangs everywhere at the international airport, on public buildings, at the entrances of hotels. "You are the expression of loyalty, we can only be loyal to you" read streamers slung over the main arteries of the capital.
In June 2003, Gaddafi carried out an almost public sacking of his prime minister M'Barek Echamekh, accusing him of having slowed up privatisation. Gaddafi then appointed Shukri Ghanem, a US-trained economist and oil specialist, and gave him a free hand to carry out deep-seated reforms in the economy and prepare it for the free-market era.
"The authorities cannot carry out economic and political reforms at the same time, without risking a loss of momentum. They have given priority to the economy," said one Western diplomat.
An Arab diplomat commented: "In Libya, the prime minister and ministers are the lightning rods who have to submit to criticism without protest and accept failures in silence, while those who are responsible for them are other people. The source of power is higher up."
For Gaddafi, the "people's committee" state is above power struggles but not immune to battles for influence, being a source of waste and corruption in the distribution of public wealth - failings he has often denounced. In his September 1 speech, Gaddafi reiterated his faith in the "state for and of the masses", prophesying the "end of capitalism, imperialism, representative democracy, exploitation and repression" and their replacement by people's socialist Jamahirya".
He urged the United States to change, returning power to the people through congress and people's committees, so that a powerful America would have something to offer to the world.
AFP