The population discontent is rampant against the GNA and Sarraj's management of the economic crisis owing to the daily water and power cuts, shortage of cash and lack of basic services. Food shortages have resulted in a thriving black market, driving up the price of food by 31 percent in the first half of 2016. Electricity is more and more sporadic, with longer brownouts
The combination of inflation, devaluation of the dinar in the black market and the increased cost of basic goods and commodities has led to significantly reduced purchasing power for the Libyan people.
According to the UN Office for the Coordination of Humanitarian Assistance (UNOCHA) at least 2.4 million people out of a total population of 6.4 million are in urgent need of humanitarian assistance.
The UN agency said that in 2016 Libya registered the fourth consecutive year of decline in oil production, from which government revenues depend. In the first half of 2016, the country produced an average 350,000 barrels per day, almost 20 percent less than in the previous year.
Year 2016 has ended with a GDP budget deficit of more than 60 percent, while foreign reserves have been rapidly depleting, halving from US$107.6bn in 2013 to an estimated US$43bn in 2016.
"The failure of public financial administration continues with the government unable to come to an agreement on a national budget, a plan or a system to provide for the population," said a recently published UNOCHA country report.
"While funds are being allocated [including most recently the announcement from the Central Bank on the allocation of US7.8bn] from the contingency budget to the Presidential Council for energy, security, health and salaries, it is not clear how these funds will be distributed and if they will reach people in need."
Corruption is widespread, with stakeholders at multiple levels taking advantage of financial mismanagement throughout the country, the reports said.
Building on the population discontent, last week, supporters of Ghwell, the former prime minister of the Salvation Government,(Islamic) stormed some empty ministerial buildings in the capital, Tripoli. Ghwell's attempt seems aimed to reinforce the perception of Sarraj's vulnerability as well as the volatility of the front supporting the GNA.
"The security situation in the capital remains fragile as usual," said Italian ambassador to Tripoli Giuseppe Perrone. Italy reopened its embassy on January 10 in an attempt to break the international isolation that Libyans are living in, Perrone said.
"Until security will be managed by different rival factions, the situation will not change. In this contest the ongoing effort to create a presidential guard that would serve the institutions and grant their safety is very important," the ambassador said.
Italy has promised to provide logistical and training support to Libya's coastguard and military forces to enhance border control and migrants flows. But the plan is far-fetched as long as Libya's authorities fail to exert any control over the country's territory.
Libya is the primary route for refugees and migrants from Africa and the Middle East with Italy their first destination. In 2016 some 181,000 refugees arrived on the Italian coasts, a 20 percent increase from 2015.
The embassy reopening has been harshly criticised by the Tobruk-backed government of Abdullah al-Thinni which branded it as "a military occupation".
Meanwhile General Haftar criticised Italy's presence in Misrata, where Italians set up a military hospital and invited foreign countries "to stay out of Libya's affairs".
http://www.aljazeera.com/indepth/features/2017/01/russia-endgame-libya-170116061913370.html
The combination of inflation, devaluation of the dinar in the black market and the increased cost of basic goods and commodities has led to significantly reduced purchasing power for the Libyan people.
According to the UN Office for the Coordination of Humanitarian Assistance (UNOCHA) at least 2.4 million people out of a total population of 6.4 million are in urgent need of humanitarian assistance.
The UN agency said that in 2016 Libya registered the fourth consecutive year of decline in oil production, from which government revenues depend. In the first half of 2016, the country produced an average 350,000 barrels per day, almost 20 percent less than in the previous year.
Year 2016 has ended with a GDP budget deficit of more than 60 percent, while foreign reserves have been rapidly depleting, halving from US$107.6bn in 2013 to an estimated US$43bn in 2016.
"The failure of public financial administration continues with the government unable to come to an agreement on a national budget, a plan or a system to provide for the population," said a recently published UNOCHA country report.
"While funds are being allocated [including most recently the announcement from the Central Bank on the allocation of US7.8bn] from the contingency budget to the Presidential Council for energy, security, health and salaries, it is not clear how these funds will be distributed and if they will reach people in need."
Corruption is widespread, with stakeholders at multiple levels taking advantage of financial mismanagement throughout the country, the reports said.
Building on the population discontent, last week, supporters of Ghwell, the former prime minister of the Salvation Government,(Islamic) stormed some empty ministerial buildings in the capital, Tripoli. Ghwell's attempt seems aimed to reinforce the perception of Sarraj's vulnerability as well as the volatility of the front supporting the GNA.
"The security situation in the capital remains fragile as usual," said Italian ambassador to Tripoli Giuseppe Perrone. Italy reopened its embassy on January 10 in an attempt to break the international isolation that Libyans are living in, Perrone said.
"Until security will be managed by different rival factions, the situation will not change. In this contest the ongoing effort to create a presidential guard that would serve the institutions and grant their safety is very important," the ambassador said.
Italy has promised to provide logistical and training support to Libya's coastguard and military forces to enhance border control and migrants flows. But the plan is far-fetched as long as Libya's authorities fail to exert any control over the country's territory.
Libya is the primary route for refugees and migrants from Africa and the Middle East with Italy their first destination. In 2016 some 181,000 refugees arrived on the Italian coasts, a 20 percent increase from 2015.
The embassy reopening has been harshly criticised by the Tobruk-backed government of Abdullah al-Thinni which branded it as "a military occupation".
Meanwhile General Haftar criticised Italy's presence in Misrata, where Italians set up a military hospital and invited foreign countries "to stay out of Libya's affairs".
http://www.aljazeera.com/indepth/features/2017/01/russia-endgame-libya-170116061913370.html