Political economy of Libya after the Qadhafi regime

Libya lacks a stable, unified and inclusive state. Qadhafi wielded oil-funded patronage and repression to weaken the state and any social counterweight to his power.
The predominant social and political dynamic is fragmentation based on multiple interests, identities and loyalties. The major ones are cities, regions, tribes (including factions and families), political factions and religious orientation.
Local actors and dynamics dominate politics, with a strong connection between cities or regions and tribes. The centre is weak, while some peripheries are empowered. This is rooted in a long-term Libyan history of localism and regionalism. There are regular tensions around the balance of power between power levels and among provinces.
The new national rulers, composed of revolutionaries and the Muslim Brotherhood, have resorted to patronage to ensure political stability, using resources from oil and gas, and offering government appointments. Allocation of oil money is a major stake.
However, the political system is not always responsive to grievances and aspirations from revolutionaries. A number of armed factions are also alienated from national decisions. The tensions between “pro-revolution” and conservative actors are a significant axis of political and economic opposition.
Security is poor and ad hoc. National security forces have very little legitimacy and reach. An array of diverse armed groups have taken their place. Central rulers have subcontracted security and conflict resolution to some armed groups and local notables.
The defining feature of the economy remains oil and its legacy of rentier state: a starkly imbalanced economic structure; a largely inefficient state working for patronage; and poor economic governance (e.g. lack of accountability).

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Summary