Libya beckons, warts, risks and all

The warmer diplomatic climate in Libya is defining a new background for economic activity in our neighbour and long-term ally. Geographic reality aside, the rest of my description may not be easy to digest for those who still abhor the political regime in the Jamahariya, despite the changes in political attitudes that have taken place within the Maltese political class over the dragging years.

Within that spectrum the Malta Labour Party has been generally sympathetic towards the regime of Muammar Gaddafi. Like most others, including various western governments, it did not go into the country's internal affairs.

That was also in line with widespread practice when Libya was under foreign rule and, later, held in tight control by an aging authoritarian king, before he was ousted by a young UK-trained colonel. Liberal democracy has yet to have a chance to flourish there.

That has not prevented international companies from seeking profit out of the opportunities offered by the Jamahariya.

Such initiatives were not restricted to exploiting the North African country's mineral resources. Western suppliers were and remain eager to satisfy its imports, particularly of capital equipment, vehicles and domestic appliances, as well as to be part of building contracts.

Italian interests, above all, have nurtured diligently opportunities and prospects in an area they are very familiar with because of their country's past, not always glorious, political links. Italian governments, while formally abiding by UN sanctions imposed on Libya after the Lockerbie outrage, were careful to retain good relations with Col. Gaddafi.

The MLP, both when in government as well as in opposition, followed a line very similar to the Italian stance. The Nationalist Party initially exploited the Labour approach for political gain, seeking to dress the MLP up in the garb worn by the Libyan regime. In time, the Nationalists altered their focus.

From silently or openly critical of Col. Gaddafi and the Jamahariya, they sidled up to the Libyan leader. They made high-powered visits both when the PN was in opposition as well as when it had won office.

Both positions did not go unnoticed by successive American governments. The State Department was hostile, if not also openly aggressive, towards Malta's relationship with Libya. American politicians and officials ignored blandly or grimly our geo-political realities.

I came face to face with that sneering and domineering attitude when, in 1995, as Labour spokesman on economic affairs and finance I accompanied (the then) Opposition Leader Alfred Sant to a visit to the US.

At a meeting with State Department and other officials we argued purely from the national standpoint. We tried to dislodge the American authorities from their actions against Malta's bipartisan efforts to become a serious international financial services centre. A climate change is now in progress, after Col. Gaddafi's canny move to give up largely theoretical plans to produce weapons of mass destruction.

The Libyan ruler could not have been unmindful that President George W. Bush, still spinning his axis-of-evil position, could turn his firepower on Libya, with much more determination and destruction than when his predecessors fired rockets at his compound in 1986.

American animal spirits lifted rapidly. The flag was raised by US politicians who commended Col. Gaddafi for his wisdom and, soon enough, representatives packed their bags to descend on taboo-land with enthusiasm. Trade will follow the flag.

Where does that leave Malta? The answer is simple: If Maltese entrepreneurs are nimble with getting their foot in the door they could go far. Some have had the foresight to continue to cast seeds in the Libyan desert, conscious that there had to be water in it, besides the Great Man-made River.

Most kept away and the bulk of those are still cautious. It is their task to weigh risk. Yet, if one remains on the weighing scales too long one could catch a cold but win no prize at all. Those who sleep do not catch fish, say the Italians. Those who do not risk may not gain much, either.

Warts, risks and all, Libya and its changing climate beckon. With the competition that will develop in the tourist sector, in particular, it also threatens.