There is barely any private capitalism in Libya, foreign investment and privatisation are marginal to the core economy. However, such deals provided Gaddafi, his family, and some officials, with a means to plunder resources from lucrative contracts and kickbacks.

Bureaucratic corruption and the kleptocratic tendencies of the ruling family, helped to generate protests when the winds of revolution blew in from Tunisia and Egypt.

The first wave of unrest in Benghazi immediately suspended the local regime in mid-air and insurrections seemed to sweep away state power in several cities. Initially, Gaddafi appeared utterly confused and lost – a reminder of the haunting video images of the fall of Ceausescu in Romania in December 1989. Ceausescu looked bewildered when the people turned on him and his apparatus of repression. So too Gaddafi appeared lost and "mad".

In Tripoli, the regime held onto power due to the passive acquiescence of significant layers of the masses. This is not simply due to fear of the powerful and repressive state. It stems also from extraordinary economic growth in recent years*, and the continuing dominance of state ownership and control of the economy that guaranteed this.

The uprising in Benghazi has characteristics similar to post-Ceausescu Romania in 1990. The collapse of the state and the seizure of control over everyday life by committees and militias mean this resembles a political revolution; but likewise it may open the path to a social counter-revolution; the battles will decide.

In the explosion of discussion and debate that accompanies revolutionary upheavals, the progressive tendencies will seek to defend and extend social gains developed under public ownership, democratize administration and control, and further internationalize the Arab revolutions, breaking down the barriers between the peoples of the region.

The imperialist powers also see an opportunity following the collapse of state power in Benghazi. They began their machinations starting with a veritable cacophony of attacks on the "madman" Gaddafi. Many of these same spokes-persons for democracy were only yesterday making lucrative deals with Gaddafi and praising his "moves to the market", his statesmanship, his wisdom etc. Naturally, Gaddafi felt personally affronted and betrayed by this; where is the "honour among thieves"?

When Tunisians and Egyptians were being shot just a short time ago, western leaders acted as if paralysed into a deafening silence. They condemned violence and killings in the abstract, laying no blame on Ben Ali, or Mubarak, and calling for peace. Likewise when the Saudis invaded Bahrain a few days ago, in order to crush the protests there, western leaders were as one, in their silence.

However when Gaddafi's state uses violence, a flurry of diplomatic, political and military forces flocked together bellowing for war, in the name of liberty, justice and universal rights!

This sudden unity of purpose by France, Britain and the United States, is nothing but a cynical use of the internal conflict in Libya to regain western prestige in the Arab world, and secure oil and gas supplies. The people of the whole region face a cruel and perilous battle for peace, freedom and plenty in the struggle for genuine democratic control over politics, economics and society.

*Gross National Income per capita rose 97% between 2005 and 2008: State of African Cities 2010 UNDP.

The author is a columnist with China.org.cn. For more information please visit:

http://www.china.org.cn/opinion/node_7084903.htm

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