The past year has seen a rehabilitation of Libya in the eyes of the international community, capped by a September meeting between US Secretary of State Condoleezza Rice and Libyan leader Muammar Gaddafi in Libya, and fuelled by billions of dollars in compensation to American victims of Gaddafi-sponsored acts of terrorism.
By granting compensation to the victims, and accepting responsibility for the downing of Pan Am Flight 103 over Lockerbie, Scotland, and the 1986 bombing of a West Berlin nightclub, Libya has mostly succeeded in its efforts toward establishing friendly bilateral relations with the US and a greater reintegration into the international community.
The Libyan rapprochement with the West comes after Gaddafi's 2003 decision to scrap the country's embryonic chemical and nuclear weapons development programmes, and in the context of high oil prices, which are driving renewed Western interest in investing in Libyan oil field exploration and development.
High unemployment rates
Ironically, the Bush administration, which has made endless public statements of its commitment to democratic reform in the Arab world, views the rapprochement with Libya as its most significant foreign policy achievement and a model for other countries, contrary to all available evidence to support such hopes.
But while Libya may be presenting a less "roguish" face to the world, life within Libya becomes increasingly precarious and desperate for the average Libyan.
And as the West grants Gaddafi its seal of approval as a reward for "good behaviour", the stability of Libyan society is brought further into question as the country continues to decay.
Unemployment is widely estimated at or close to 30 per cent, one of the worst unemployment figures in the world. Whereas record revenues have profited most oil-producing states, few Libyans have seen any direct benefits.
There is also deep resentment at the heavy-handed presence of Gaddafi's clan in key positions throughout the security and economic structures.
Marginalised both politically and economically, the Libyan people are growing increasingly restive as the country continues to be plagued with endemic corruption, political repression, economic stagnation, dilapidated infrastructure, semi-collapsed public administration, and a stifling culture of bureaucracy.
Most of the country's well-educated citizens are either already outside the country or clamouring to secure jobs and visas to go abroad.
To add insult to injury, the country recently ranked 126 in the 2008 Corruption Perceptions Index issued by Transparency International, and 160 in the Reporters without Borders Press Freedom Index for 2008, at the tail end of the worldwide index.
Demonstration
And it is getting worse. The Libyan society appears to be starting to fracture with regional, ethnic and tribal tensions. Only two weeks ago, Libya experienced more political violence.
In the province of Kufrah, 11 people perished in clashes between Toubou tribesmen and the security forces, with violence reportedly spilling over into Benghazi, the country's second largest city.
Families of about 1,200 political prisoners who perished in an infamous massacre at the Abu Sleem political prison in the late 90s also staged a rare public demonstration demanding information about their loved ones and threatening to resort to international courts to address their grievances.
Meanwhile, the cases of scores of Libyan political prisoners are being championed by Libyan dissidents abroad and by human rights organisations.
Gaddafi has finally publicly admitted the shortcomings of his infamous system of rule by committee, where committees are composed of subgroups and report to other agencies.
He recently announced plans to abolish the entire government with the exceptions of foreign affairs, the security apparatuses and the petroleum sector.
Gaddafi asked Libyans in a recently televised "debate" with his ministers, to prepare themselves to educate their own children at home, and go abroad for health services, as both the health and education ministries will be abolished at the beginning of 2009.
Meanwhile, his son Saif - despite his questionable capabilities and recent public vows to stay out of politics - is being touted in the West as Gaddafi's heir-apparent. Over the past few years, Saif has been issuing endless promises to Western media regarding political and economic reforms, but these are yet to materialise.
Needless to say, Libyans appear to be confused about the direction in which their country is heading and disheartened about the prospects for any future peaceful reform or improvements.
Gaddafi continues to experiment with the country's future, as he has done for the past 40 years. Most Libyans know that what the country really needs is not more grandiose and unworkable schemes, but a simple return to political legitimacy and normality.
It is now very clear that the rehabilitation of Gaddafi by the West came at the expense of neglecting Libya's dismal human rights record and serious internal problems for the sake of short term questionable economic gains.
There is little doubt the reintegration of Libya into the international community does not seem to address fundamental problems plaguing the country, namely, the legitimacy, configuration and effectiveness of its governance structure.
Libya appears to be caught between overall stagnation and total chaos. Ultimately, unless it is encouraged or pressured to undertake a serious and credible process of internal reform and national reconciliation, the country will drift quickly towards becoming a security nightmare for the same West that is now ignoring its decay.
The country risks becoming another Somalia on the shores of the Mediterranean when Gaddafi finally leaves the scene.
Hafed Al Ghwell is an American-Libyan writer based in Washington DC.
