What are the political problems in Libya?

Answer 1

The Libyian currency is pegged to the US dollar due to the USD being used as the global reserve currency.

When a currency is used as a reserve, a foreign state must use it as the medium of exchange on international markets.

As the USD is printed through the process of quantitative easing by the Federal Reserve (for the purpose of lowering interest rates, and monetizing debts), countries which need the USD to make international purchases must also print their currency in order to purchase all of the new US dollars to maintain the currency peg. As they print, the value of their currency declines resulting in rising asset prices (inflation).

As the cost of goods rises, people with low wages can no longer afford to buy basic materials, and their standard of living falls severley, resulting in civil unrest.

Answer 2

Currently Libya is in a state of change to the point of unharnessed change. Political and religious groups are competing for power. Travel to Libya from other nations is low and the nation can be said to be "unstable". The challenges are thus to have a stable democratic government, renewed economic development, made difficult by the low cost of oil, and continued efforts to stabilize its social structure.

Answer 3

Considering that, as of 2016, the country is embroiled in a civil war, the main economic and political challenge is having a stable environment in which to live, never mind all of the tribal hatreds in Libya, the theocratic/secular divide in governance, the lack of education for the majority of the Libyan population, chronic underdevelopment of infrastructure, and lack of resources other than petroleum.