In this regard, some have suggested that pushing for wholesale democratic reforms today may precipitate the undoing of the Libyan republic, particularly in light of a foreseeable struggle for national authority. As Soumaya Ghannoushi of The Guardian reports: “The vacuum created by Gaddafi’s departure is now filled by two polarized camps”: the National Transitional Council on one side (NTC) and the political and military leaders that liberated cities across Libya on the other. Until the power struggle between these two factions is resolved, it is unlikely that a sustainable path to development can be achieved. Furthermore, it would be unwise to liberate Libya’s frozen funds to any side without having solved the political question first.
Once these issues have been squared, controversy will move to spending (how and how much to spend). According to Reuters, Libya’s sovereign wealth fund holds around $70 billion in assets. Legitimate transition authorities will inevitably have to tap into these funds to bring Libya up to its economic capacity. To do so, they must seek guidance from both friendly governments and the private sector. In this, the opportunities are limitless.
However, before all of the complexities associated with economic development are analyzed, Libyans must decide for themselves how to organize politically. How long this will take, or the end result of said process is, however, unknown. Thus making this a critical juncture in Libya history.