Analysts: diplomacy is failing in Libya with elite families profiting while Libyans suffer

Libya’s Central Bank (CBL) crisis, which saw salaries unpaid and cash vanish, highlights the ongoing failure of international diplomacy, according to analysts quoted by Al Jazeera. After brief talks between Libya’s two rival governments to resume CBL operations, tensions flared again, returning the country to deadlock.

The internationally recognized Government of National Unity (GNU) in the west tried to replace CBL Governor Sadiq al-Kabir, accusing him of mishandling oil revenues. The eastern Government of National Stability (GNS), supported by Khalifa Haftar, retaliated by shutting down oil production. 

The CBL is vital for Libya’s food and medicine imports, yet efforts to mediate the conflict have stalled. With oil exports plunging and public services in disarray, Libyan citizens bear the brunt of the crisis. 

Experts argue that the international community, including the UN, is unable to resolve the power struggle, which has festered since the fall of Muammar Gaddafi in 2011.

The conflict, analysts say, is essentially over two elite families fighting for control of Libya’s riches. 

Many criticize Western powers for focusing on elites that allegedly enable corruption while failing to achieve a settlement, with elections remaining a distant hope.

“The West and UN in Libya are performing diplomatic theatre while the country crumbles,” Anas El Gomati of the Sadeq Institute told Al Jazeera. “The West sees a finish line; the elites see an endless buffet. It’s not naivete, it’s willful blindness, and the Libyan people are paying for it. In the Libyan elite’s casino, the house always wins, and corruption is the chip that never runs out,” he said.