In Libya, the concept of economy is viewed differently than in other countries. Rather than being measured by investment, growth, and productivity, it is measured by an individual's ability to secure basic needs such as shelter, employment, and healthcare. This has led to the emergence of an "economy of necessity," where individuals have developed skills and relationships to survive in a system with limited state support.
The economy of necessity in Libya has its roots in the country's past, where the state controlled the distribution of resources but did not produce them. This led to a culture where individuals relied on personal relationships and networks to access goods and services. The 2011 uprising further exacerbated this trend, as the state's ability to provide for its citizens was severely diminished. As a result, people turned to their own networks to survive, and the economy shifted from a public sector-driven economy to a network-based economy.
In this economy, success is not measured by efficiency but by access. Those who have relationships with key individuals, such as doctors, bankers, or those who control access to resources, are able to navigate the system more effectively. This has led to the emergence of a new class system, where those who control points of access, such as border crossings or government contracts, hold significant power and influence.
The economy of necessity has also led to a cultural shift in Libya, where individuals prioritize building relationships and networks over traditional notions of work and productivity. This has resulted in a system where "wasta" (or connections) and "mahsoobiya" (or favoritism) are seen as essential to accessing opportunities and services. While some may view this as corrupt, in the context of Libya's economy of necessity, it is a necessary means of survival.
However, this system also has its drawbacks. Those who are outside of these networks, including women and men, are often left behind and struggle to access basic necessities. This has led to a situation where some individuals are forced to rely on the charity of others or go without essential services.
To move forward, Libya will need to develop institutions that can provide a safety net for its citizens and reduce the reliance on personal relationships and networks. This will require significant investment in areas such as healthcare, education, and social welfare. It will also require a cultural shift, where individuals begin to trust in the state's ability to provide for them and prioritize building a more equitable and just society.
Ultimately, Libya's economy of necessity is a complex and multifaceted issue that will require a comprehensive solution. While there is no easy answer, it is clear that the country's future development will depend on its ability to build strong institutions and promote a culture of trust and cooperation.
Key points
- Libya's economy is driven by a culture of survival, where individuals rely on personal relationships and networks to access basic necessities.
- The economy of necessity has led to a cultural shift in Libya, where individuals prioritize building relationships and networks over traditional notions of work and productivity.
- To move forward, Libya will need to develop institutions that can provide a safety net for its citizens and reduce the reliance on personal relationships and networks.
