Unlocking Frozen Assets: A New Path Forward for Libya

Strategic Insights -

As the Gadhafi regime teeters on the brink of collapse, the international community is racing to free up billions of dollars in frozen Libyan assets to support the newly recognized Transitional National Council (TNC). The US and European Union are working to unlock up to $1.5 billion in assets, with the aim of getting cash to the rebels to pay for humanitarian needs, maintain public utilities, and pay salaries to Libyan officials.

Key Takeaways:

  • The US Department of State is working to unlock up to $1.5 billion in frozen Libyan assets to support the TNC.
  • The initial focus is on getting cash to the rebels to pay for humanitarian needs, maintain public utilities, and pay salaries to Libyan officials.
  • The European Union's top diplomat, Catherine Ashton, has expressed support for helping the TNC get access to the frozen assets, with a focus on transparency and openness.
  • There are potential pitfalls ahead for the TNC, including managing tribal and regional tensions and overcoming the legacy of 40 years of Gadhafi's rule.
  • Robert Malley of the International Crisis Group notes that the TNC will have to navigate a complex legacy of divisions within Libyan society and the opposition.
  • Jeffrey Feltman, Assistant Secretary of State, has been impressed by the TNC's efforts to prevent looting and reprisal killings in Tripoli, including the use of text messages to urge residents not to engage in violent acts.

Statistics:

  • $1.5 billion: The amount of frozen Libyan assets that the US is working to unlock to support the TNC.
  • 40 years: The length of time that Gadhafi's rule has left a legacy of divisions and no legitimate state institutions in Libya.
  • 42 years: The length of time that Libya has been without rule of law and civil society in the way that it would operate in a democracy.
  • 6 months: The length of time of the uprising that revealed and exposed fissures within Libyan society and the opposition.
  • 1.5 billion: The amount of dollars that would be made available to the TNC if the frozen assets are unlocked.

Sources:

  • NPR News report by Michele Kelemen, Washington
  • Interview with Jeffrey Feltman, Assistant Secretary of State
  • Interview with Catherine Ashton, Chief, Foreign Policy, European Union
  • Robert Malley, Director, Middle East and North Africa Program, International Crisis Group