http://www.huffingtonpost.com/daniel-wagner/libyas-path-back-to-terro_b_8399
92.html 


Libya's Path Back to Terrorism 


The imposition of the no-fly zone in Libya, the absence of either a solid
coalition to enforce it or an exit strategy once the mission is
accomplished, and the muddled manner in which it is proceeding all imply a
potentially lengthy stalemate in which the rebels fail to dislodge Gaddafi,
who will remain in power. Gaddafi has remained defiant and belligerent.
Given that he has sponsored numerous terror attacks in the West in the past,
is there any reason to believe he will not do so in the near future?

Gaddafi's terror credentials are well established. He has provided weapons
and training to numerous terrorist organizations
<http://www.meforum.org/878/libya-and-the-us-qadhafi-unrepentant>  around
the world during his four decades in power, including the Irish Republican
Army, Spain's ETA and Colombia's FARC. Amnesty International lists at least
25 assassinations
<http://en.wikipedia.org/wiki/Muammar_Gaddafi#Assassinations_abroad>  of
critics of the Libyan regime abroad between 1980 and 1987 committed by the
Colonel's extensive network of diplomats and spies, though the actual figure
is estimated to be much higher. In 1986 Libyan agents bombed
<http://www.guardian.co.uk/world/2004/aug/10/libya>  the La Belle nightclub
in West Berlin, killing three people and injuring 229. In 1988 Gaddafi
ordered the bombing <http://en.wikipedia.org/wiki/Pan_Am_Flight_103>  of Pan
Am flight 103 over the Scottish town of Lockerbie which resulted in the loss
of all 243 passengers, and in 1989 he ordered the bombing of UTA flight 772
over Niger, killing all 171 passengers.

A decade ago, Gaddafi was welcomed back into the international fold after he
accepted responsibility for the Lockerbie bombing, paid compensation to its
victims, and renounced his nuclear program and sponsorship of terror. Libya
has since become one of a number of dictators/allies in North Africa close
to the European Union (EU) and United States (U.S.). Libya participates
closely with the EU on migration issues by detaining thousands of African
migrants in holding camps in Libya, and Gaddafi has provided the Americans
in particular with key anti-terrorism support, monitoring the presence of
Al-Qaeda in the Maghreb. Approximately 75% of Libya's oil exports flow to
the EU and U.S., making its current absence from the market felt where it
hurts most.

Much of Gaddafi's capacity to launch terror attacks going forward will
depend in part on his funding capabilities. While his forces currently
control the larger part of Libyan territory, the major oil fields are
located in the east of the country and are controlled by rebel groups.
Neither the rebels' nor Gaddafi have the capacity to export oil in the near
future, given Gaddafi's bombing of the key oil ports Ras Lanuf and Marsa el
Brega. If the rebels were to be routed, they would presumably ignite key oil
installations, rather than hand them over to Gaddafi, resulting in a
lengthier supply interruption.

Gaddafi will in any event be unable to profit from any oil fields he
controls given the UN naval blockade. Libya has an estimated US$100 billion
<http://tribune.com.pk/story/125104/lessons-and-costs-of-the-libyan-uprising
/>  in foreign exchange reserves, although the regime's access to these in
light of UN financial sanctions is unclear, but likely limited. What Gaddafi
does have access to however is an estimated US$6 billion
<http://www.belfasttelegraph.co.uk/news/world-news/gaddafi-regime-has-65bn-i
n-gold-reserves-says-imf-15124216.html>  in gold reserves, the bulk of which
are thought to be held in Libya. Should he overcome the substantial
obstacles involved in physically selling the gold, Gaddafi should be able to
fund his forces for some time.

Whether he has access to substantial funds or not, Gaddafi may well seek to
pressure the West by staging or sponsoring terror attacks on Western soil or
against its interests. His rationale would be to turn public opinion heavily
against further involvement in Libya and force the withdrawal of allied air
and naval patrols. In truth, it would not be difficult to generate attacks
in the West, given that the cunning Gaddafi undoubtedly has sleeper agents
in place in the West, and, as has unfortunately been proven numerous times
in the past decade, attacks do not need to cost much money.

At this juncture, we do not believe Gaddafi would be likely to sponsor
terrorist attacks on the West. International support for the allied
intervention is already wavering, just days after enforcement of the no-fly
zone, and President Obama is in the hot seat at home for not having properly
consulted Congress prior to authorizing U.S. involvement. Gaddafi is a
master at timing. Sponsoring terror attacks now would only serve to turn
that part of the international community that still favors non-intervention
against him, and is more likely to result in foreign ground troops being
deployed on Libyan soil than in a foreign withdrawal.

Furthermore, Gaddafi does not enjoy the same level of recognition and
admiration among his fellow Arab leaders that he used to command. Given that
even the Arab League supported allied action against him and he lacks the
support of Arab public opinion which appears firmly in support of the allied
intervention, it would seem that terror attacks at this time would only
serve to hasten his departure. But if he believes his end is near, our guess
is that he would not hesitate to attempt to utilize the terrorism option.

What is more likely in the near term is that Gaddafi will try to ensure that
the West is bogged down in another attritional war, thereby enabling
evolving international divisions to further widen, and military and human
costs to spiral. The West is keen to avoid a situation akin to the first
Iraq war, which resulted in an ineffective no-fly zone lasting 10 years at a
cost of more than US$1billion per year. The West has also ruled out the
possibility of putting troops on the ground (for now), but more worryingly,
lacks an exit strategy let alone any type of Marshall Plan for North Africa
(which it is ill prepared to be able to fund, in any event, given fiscal
realities).

Gaddafi is likely to concentrate his immediate efforts on shoring up the
support of his military forces, and more importantly, his paramilitary
groups -- such as the Khamis Brigade, People's Security Organization and the
Revolutionary Guards Corp -- as these provide the backbone of his support,
and are thought to be better trained and equipped than his regular armed
forces. To this end he has already copied the modus operandi of dictators
past and present by deliberately using civilians as human shields to protect
strategic targets. Indeed, our view is that a prolonged period of stalemate
in Libya would actually make Gaddafi more likely to return to terror as a
means to force his way out of a corner. With rebels and government forces
unable to definitively 'win' the war, Gaddafi may be convinced to sow as
much mayhem as possible by making Libya a magnet for all would-be terrorists
around the world to be supplied with training and weapons.

All sides in the conflict hope to avoid the long-term partition of Libya
into two opposing camps, but the longer that a de facto partition lasts, the
more emboldened Gaddafi is likely to become, and the shakier the
international alliance's motivation or resolve to stay the course will
become. The option of once again sponsoring terror remains open to Gaddafi
as long as he remains in control of some part of the country. He has
certainly shown he is capable of great vindictiveness but also of great
pragmatism. We expect his vindictive side will in the end prevail. 

This post has been updated from a previous version. 

Daniel Wagner is managing director of Country Risk Solutions (CRS), a
political risk consulting firm based in Connecticut, and also senior advisor
to the PRS Group. Daniel Jackman is a research analyst with CRS, based in
London.

Follow Daniel Wagner on Twitter: www.twitter.com/countryriskmgmt
<http://www.twitter.com/countryriskmgmt> 

 
<http://www.huffingtonpost.com/daniel-wagner/libyas-path-back-to-terro_b_839
992.html> 




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