Demonstrators burn a poster of the deceased Colonel Gaddafi during the Libyan revolution.

For the past 42 years, Libya has been plagued by tyrannical rule. After submitting to such oppression and dictatorship, the people of Libya finally decided to take to the streets and demand change. The fall of the omnipotent Muammar Gaddafi put a resolute end to the eight-month long revolution, which was prompted by a staggering unemployment rate of 21%, widespread poverty and a general suppression of human rights. Although the people have gained a sense of freedom, the downfall of Gaddafi has also collapsed the only semblance of administration. The National Transitional Council (NTC) has begun the slow process of drafting a constitution that will construct an organized form of government in Libya, which will be based upon sharia law (Islamic principles). But a nagging question remains – will the revolution be justified with the NTC mending the current economic state that has weakened Libya today?

The end to the Gaddafi regime symbolized the end of oppression and the beginning of liberalization for Libyans – in the form of social freedoms and greater economic opportunities. Under Gaddafi, Libya was ranked the most-censored nation in the Middle East and North Africa by the Freedom of Press Index as political dissent was met with execution, by law. This should all change with the formation of various political parties and a new wave of democratic policies. Equally, if not more importantly, the Libyan people are searching for economic stability and sustainability. These immediate concerns have dampened the prospects of the oil-rich nation. Under Gaddafi, Libya’s oil and energy sectors were steady, but only due to the sheer necessity of these natural resource endowments. Although, the nation was not able to fully capitalize on these attributes due to concerns over political stability, Libya’s underlying socialist ideals, and mismanagement of economic resources. Now with a new government Libya has a chance to begin anew by inviting foreign investment and building new trade relationships.

China has long been interested in Africa’s development, as seen through their steady investment in the continent through recent years. China’s trade with the region surpassed USD 120 billion with foreign direct investment reaching USD 76 billion in 2010. When Gaddafi was in power, he mostly resisted the temptation of China’s economic imperialism in the region. That said, China still dabbled its hand in Libya’s energy sector and infrastructure but was never able to get a stronghold on a resource it much needs – oil. China depends heavily on foreign oil; with Libya’s plentiful oil fields and a government looking to rebuild a nation, China’s money looks terribly tempting. On Libya’s part, they have done quite well in resurrecting their oil industry as production has rebooted after an 8-month hiatus during the revolution. China’s foreign investment should decrease unemployment and bring in new technologies and techniques to Libya. Although, China is not the only player in this game: Libya’s oil is a highly coveted resource and undoubtedly other powers will come for it – namely the United States. With U.S. involvement in Libya already high with the deposition of Gaddafi, they hold a strong bond with the NTC. Although the two nations’ relationship may have been strained in the past, they will definitely carry this newfound liking for each other into the future, with the United States benefiting from oil trade and Libya profiting from foreign investment and trade opportunities. This relationship could parallel the one between the US and Saudi Arabia, as although their political ideologies may not be congruent, the economic benefits of such a relationship outweigh their political differences. It seems as if Libya’s economic prosperity hinges around their most valuable asset – oil.

Libya will also be looking to strengthen its trade relations within the region. Tunisia, which has gone through a similar ordeal, could be a target as relations between two liberalizing economies would be mutually beneficial. The hope would be for more bilateral trade opportunities rising from liberalized economic practices, which would bolster growth in both countries.

Muammaer Gaddafi is gone – the easy part is over. Now comes the time for Libya to pick itself up and begin life in a new era of political freedom and the hope for economic prosperity.