Libya’s economy is highly dependent on oil, with ongoing conflict and political instability disrupting growth. Market competition is minimal outside the energy sector, with infrastructure and industries severely damaged. Public policies focus on reconstruction and stability, though governance challenges impede implementation. Regulatory frameworks are underdeveloped, deterring foreign investment. Libyan society is fragmented but possesses a skilled diaspora that could aid recovery. Education infrastructure is underfunded, with gaps in quality and access. Healthcare services are overwhelmed by conflict and lack resources. Climate vulnerabilities, including desertification and water scarcity, require sustainable resource management. Libya’s recovery hinges on peacebuilding and institutional reforms.