In a pivotal moment in Libyan history, the General People's Congress convened to adopt the 'Declaration on the Establishment of the Authority of the People', effectively marking the official transformation of Libya into the Socialist People's Libyan Arab Jamahiriya. This declaration reshaped Libya's political landscape by introducing a revolutionary model of governance that placed power in the hands of the people through local committees, which were central to Gaddafi's vision of direct democracy.

Muammar Gaddafi, who had seized power in a coup in 1969, sought to distance Libya from traditional forms of government and implemented a system that aimed to eliminate class structures and promote socialism. The jamahiriya, meaning 'state of the masses', exemplified Gaddafi's ideological commitment to Arab socialism and highlighted his aspirations for Libya as a model for Arab states. The structure of governance emphasized local decision-making and collective authority, with the General People's Congress representing the 'will of the people'.

The declaration also set the stage for further social, economic, and cultural reforms that would fundamentally alter Libyan society, including significant investments in education, healthcare, and infrastructure. Furthermore, the new political framework aimed to reduce foreign influence, particularly from Western powers, and sought to promote nationalization of various sectors, enhancing Libyan sovereignty over its resources. This radical shift attracted both local and international attention, inviting both commendation and criticism.