In recent years Libya has started a gradual reform meant to diversify its commodity-driven economy and to attract foreign investments in other sectors as well.
The economic reform Muammar Qadhafi has been forced to launch, however, may turn out to be difficult and potentially destabilising. It may undermine his role of being the first distributor of energy revenues of Libya's rentier state to the population. Concurrently, despite the increased role of Saif Qadhafi, son of the Libyan leader, prospects for reform of the political system are very limited.
Muammar Qadhafi's goal, instead, is to slowly liberalize the system while de facto continuing to balance between reformists and the old guard.