IT is clear that Libya's economy has always been centralized and dependent on the central government for survival. This has created a complete failure of private business, specifically the small business sector. Libyan employees are always looking for a job in the government sector and as the current situation continues, unemployment will increase and that guarantees the continuation of the current turmoil. Arms and militias are not Libya's only dilemma, there is also the problem of the unemployment epidemic and lack of experience that is plaguing the youth in the country. Libya needs more than ever a crucial municipal economic plan that will not only help the small business sector but will assist in the training and hiring of youth currently being lured into militias and unlawful groups. Currently the Libyan economy or rather contract opportunities are all controlled by the central government represented by the ministries, army and GNC. This is the case also for tenders for work to be completed all across the country whether it is for a central agency or at the municipal level, such as garbage collection, road construction, housing projects, health projects and information technology projects. This has created the need to restrict most of these projects to large companies with long experience which as a result has excluded most Libyan companies for the following reasons: limited capital, small manpower capacity, lack of nationwide geographical spread and lack of experience. This void has attracted foreign companies, whether regional or international, and has given the central government an excuse to offer some projects exclusively to international bidders. This will never help the Libyan economy or address the unemployment problem. In fact it is increasing unemployment among young Libyans and giving almost all crucial work to a foreign workforce. The Gaddafi regime had effectively put a halt to the small business sector and destroyed the private economy. There was no option for the youth but to look to the government for a job, car, housing or educational grant to study abroad. Mostly all of the programs or options had no positive benefit to the individual or the economy; it also created an opportunity for corruption and the enrichment of the few. The Libyan government needs to look deeply and effectively for solutions that will ensure the enrichment of the local economy and assist in creating more jobs not only in the main cities but at municipal levels. There are many options that the government has but I will point out some that in my opinion will help in creating the start of a solution to the problem. Create smaller projects nationally (across municipal levels) instead of centralized national projects. Currently all government projects are considered strategic and are controlled by the central government. This is the main factor behind the recent calls for federation. The government must split all these projects into smaller municipal/regional work opportunities allowing companies to operate on smaller projects and to restrict their geographic location. It is a fact that this cannot be implemented for all government projects, but with a careful study it can be done in most of them. This has been tried and is being implemented all across the world and has proven to be successful. One example is the driving license issuance system. This is a centralized initiative that is to be implemented under the Ministry of Interior (Traffic Police Division). The project will be a national system only allowing multi-national companies to put forward a bid and will not only create a centralized solution but the work itself will limit the Libyan workforce and exclude them from gaining experience. Instead of placing one bid, the Ministry of Information Technology should come up with a document stating the mandatory standards required for this project and should forward these requirements and standards to each municipal office for implementation. This will allow local companies to work on a smaller scale with smaller projects and will allow the distribution of work while creating a national system that can be integrated in a central database once each municipal system is ready. Develop an independent municipal administration governing policy Municipal governance is a great solution for limiting the need for a complicated national policy to address all issues from economy, health, and security to education. Libya is a vast country with different regions with complicated issues. It is a fact that an effective municipal government structure will allow each region to control its local matters and empower itself. The Libyan population did not only rise against the Gaddafi regime for national independence, but most importantly for regional and municipal independence. Create incentive programs for small Libyan businesses to hire young Libyans In many countries (such as Canada and the US) there are many programs ranging from low tax and hiring assistance policies that encourage small local companies to hire the country's youth and recent graduates. These policies range from paid intern grants to minimum wage compensation to the companies. Libya now needs to implement such programs to encourage Libyan companies and international companies based in Libya to hire the unemployed and create more job opportunities for Libya's youth outside of the government sector. Developing a national training assistance program for Libyan youth. Libya has always been keen on creating education programs abroad ranging from M.Sc. to PhD and other specialized degrees but has lacked practical training programs. Many of Libya's youth have earned a higher college or university degree but in most cases lack practical experience and knowledge. The government needs to provide assistance programs and specialized training programs across different regions of the country to provide the most needed practical training in all fields. This may include IT, mechanical, electrical and health services, allowing young people to gain the experience and knowledge needed for practical jobs and not just office positions. Establish a monetary fund for a loans or grants program for local businesses and private projects. Most Libyan private companies suffer from the limitation of working capital and this limits their operations and their hiring needs, which in turn prevents them from expanding and bidding on bigger projects. The Libyan government needs to create a fund that will allow small companies to access cash allowing them to expand and operate on a bigger scale. This is a guarantee for a successful private sector while guaranteeing the government a return with greater employment and tax revenue benefits. None of the above can be implemented perfectly or without corruption and flaws, but it is a risk that the government has to take hand in hand with putting in place precautions and rules in an attempt to limit the negative side effects and increase the benefits. Libyan youth are forced to either wait for the government to create jobs for them or face unemployment. The alternative now is to join a militia or to create one for those who have the ability to do so. This situation will not be resolved by the use of force alone but rather it requires that the government address the situation in a more rational way that will not only eliminate militias but will also help the economy.
