Muammar Gaddafi
Revolutionary Committees and furthering socialism: 1978–1980

If socialism is defined as a redistribution of wealth and resources, a socialist revolution clearly occurred in Libya after 1969 and most especially in the second half of the 1970s. The management of the economy was increasingly socialist in intent and effect with wealth in housing, capital and land significantly redistributed or in the process of redistribution. Private enterprise was virtually eliminated, largely replaced by a centrally controlled economy.

—Libyan Studies scholar Ronald Bruce St. John

In December 1978, Gaddafi stepped down as Secretary-General of the GPC, announcing his new focus on revolutionary rather than government activities; this was part of his new emphasis on separating the apparatus of the revolution from government. Although no longer in a formal government post, he adopted the title of "Leader of the Revolution" and continued as commander-in-chief of the armed forces. Historian Dirk Vandewalle stated that despite the Jamahariya's claims to being a direct democracy, Libya remained "an exclusionary political system whose decision-making process" was "restricted to a small cadre of advisers and confidantes" surrounding Gaddafi.

Libya turned towards socialism. In March 1978, the government issued guidelines for housing redistribution, attempting to ensure every adult owned their own home. Most families were banned from owning more than one house, while former rental properties were expropriated by the state and sold to the tenants at a heavily subsidized price. In September, Gaddafi called for the People's Committees to eliminate the "bureaucracy of the public sector" and the "dictatorship of the private sector"; the People's Committees took control of several hundred companies, converting them into worker cooperatives run by elected representatives.

In March 1979, the GPC announced the separation of government and revolution, the latter being represented by new Revolutionary Committees, who operated with the People's Committees in schools, universities, unions, the police force, and the military. Dominated by revolutionary zealots, mostly youths, the Revolutionary Committees were based in Tripoli and met with Gaddafi annually. Membership was drawn from within the BPCs. The revolutionary committee system became "a key—if not the main—mechanism through which exercises political control in Libya". Publishing a weekly magazine, The Green March, starting October 1980 they took control of the press. Responsible for perpetuating the revolution, they performed ideological surveillance, adopting a significant security role, making arrests and putting people on trial according to the "law of the revolution". With no legal or safeguards, the administration of revolutionary justice was largely arbitrary and resulted in widespread abuse and the suppression of civil liberties: the "Green Terror".

In 1979, the committees began the redistribution of land in the Jefara plain, continuing through 1981. In May 1980, measures to redistribute and equalize wealth were implemented; anyone with over 1000 dinar in their bank account saw that extra money expropriated. The following year, the GPC announced that the government would take control of all import, export and distribution functions, with state supermarkets replacing privately owned businesses; this led to a decline in the availability of consumer goods and the development of a thriving black market. Gaddafi was frustrated by the slow pace of social reform on women's issues, and in 1979 launched a Revolutionary Women's Formation, to replace the more gradualist Libyan General Women's Federation. In 1978 he had established a Women's Military Academy in Tripoli, encouraging all women to enlist for training. The measure was hugely controversial and voted down by the GPC in February 1983. Gaddafi remained adamant, and when it was again voted down by the GPC in March 1984, he refused to abide by the decision, declaring that "he who opposes the training and emancipation of women is an agent of imperialism, whether he likes it or not."

The Jamahiriya's radical direction earned the government many enemies. Most internal opposition came from Islamic fundamentalists, inspired by the events of the 1979 Iranian Revolution. In February 1978, Gaddafi discovered that his head of military intelligence was plotting to kill him and increasingly entrusted security to his Qadhadfa tribe. Many who had seen their wealth confiscated turned against the administration, and Western-funded opposition groups were founded by exiles. Most prominent was the National Front for the Salvation of Libya (NFSL), which orchestrated militant attacks against Libya's government. Another, al-Borkan, began killing Libyan diplomats abroad. Following Gaddafi's command to kill these "stray dogs", the Revolutionary Committees set up overseas branches to suppress counter-revolutionary activity, assassinating dissidents. Although Syria and Israel also employed hit squads, Gaddafi was unusual in publicly bragging about his use of them; in April 1980, he ordered all dissidents to return home by June 10 or be "liquidated wherever you are". Within a three months period in 1980, at least ten Libyan dissidents were murdered in Europe, including ex-diplomats, ex-army officers, businessmen, journalists, and student activists in disparate locations such as London, Greece and Austria. At least eleven more were assassinated in 1981. In 1984, Gaddafi was tricked by Egyptian President Hosni Mubarak into announcing the assassination of former Libyan Prime Minister Abdul Hamid al-Bakkoush in Cairo; Bakkhoush not only turned up alive but held a press conference with Egypt's Interior Minister. In 1979, Gaddafi created the Islamic Legion, through which several thousand Africans were military trained.

Libya had sought to improve US relations under President Jimmy Carter, for instance by courting his brother, businessman Billy Carter, and paying for the services of former CIA officers, but in 1979 the US placed Libya on its list of " State Sponsors of Terrorism ". Relations were further damaged when a demonstration torched the US embassy in solidarity with the perpetrators of the Iran hostage crisis. Libyan fighters began intercepting US fighter jets flying over the Mediterranean, signalling the collapse of relations between the countries. Italian media have alleged that the Itavia Flight 870 was shot down during a dogfight involving Libyan, United States, French and Italian Air Force fighters in an assassination attempt by NATO members on a Libyan politician, perhaps even Gaddafi, flying in the same airspace.

Libyan relations with Lebanon and Shi'ite communities deteriorated due to the 1978 disappearance of Imam Musa al-Sadr when visiting Libya; the Lebanese accused Gaddafi of having him killed or imprisoned, a charge he denied. Relations with Pakistan broke down in this period. Despite Gaddafi's repeated appeals to Muhammad Zia-ul-Haq to spare Zulfikar Ali Bhutto 's life, Bhutto was executed in 1979. In retaliation and for Zia's refusal to share Pakistan's nuclear technology, Gaddafi began training Al-Zulfiqar, an anti-Zia insurgency led by Bhutto's sons Murtaza and Shahnawaz, expelled all 150,000 Pakistanis living in Libya, and provided asylum for the Bhutto family. Relations with Syria improved, as Gaddafi and Syrian President Hafez al-Assad shared an enmity with Israel and Egypt's Sadat. In 1980, they proposed a political union, with Libya promising to pay off Syria's £1-billion debt to the Soviet Union; although pressures led Assad to pull out, they remained allies. Another key ally was Uganda, and in 1979, during the Uganda–Tanzania War, Gaddafi sent 2,500 troops to defend President Idi Amin from Tanzanian invaders. The mission failed; 400 Libyans were killed, and Libya was forced to retreat. Gaddafi came to regret his alliance with Amin, openly criticizing him as a " fascist " and a "show-off".
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