Qaddafi government continues to use repressive measures, but also appears to be aware of widespread unhappiness; large salary increases planned for government workers as a compensatory measure;rnLifting of economic sanctions expands investor interest in Libya, especially in developing the oil sector; however, implementation of economic reforms has been slow and confusing;rnStrong oil prices mean rising government income, but defense spending appears to have been cut as part of an initiative by Qaddafi's son and heir apparent;rnStill, some major deals pending, especially an arms package with the Russians that could be worth $2.3 billion and include Su-30 and MiG-29 fighters, Kilo submarines, a patrol ship, and S-300 and TOR-MI air defense missile systems.
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