Libya

LIBYA

LOCATION, SIZE, AND EXTENT
TOPOGRAPHY
CLIMATE
FLORA AND FAUNA
ENVIRONMENT
POPULATION
MIGRATION
ETHNIC GROUPS
LANGUAGES
RELIGIONS
TRANSPORTATION
HISTORY
GOVERNMENT
POLITICAL PARTIES
LOCAL GOVERNMENT
JUDICIAL SYSTEM
ARMED FORCES
INTERNATIONAL COOPERATION
ECONOMY
INCOME
LABOR
AGRICULTURE
ANIMAL HUSBANDRY
FISHING
FORESTRY
MINING
ENERGY AND POWER
INDUSTRY
SCIENCE AND TECHNOLOGY
DOMESTIC TRADE
FOREIGN TRADE
BALANCE OF PAYMENTS
BANKING AND SECURITIES
INSURANCE
PUBLIC FINANCE
TAXATION
CUSTOMS AND DUTIES
FOREIGN INVESTMENT
ECONOMIC DEVELOPMENT
SOCIAL DEVELOPMENT
HEALTH
HOUSING
EDUCATION
LIBRARIES AND MUSEUMS
MEDIA
ORGANIZATIONS
TOURISM, TRAVEL, AND RECREATION
FAMOUS LIBYANS
DEPENDENCIES
BIBLIOGRAPHY

Socialist People's Libyan Arab Jamahiriya

Al-Jamahiriyah al-'Arabiyah al-Libiyah ash-Sha'biyah al-Ishtirakiyah

CAPITAL: Tripoli (Tarabulus)

FLAG: The national flag is plain green.

ANTHEM: Almighty God.

MONETARY UNIT: The Libyan dinar (ld) of 1,000 dirhams is a paper currency. There are coins of 1, 5, 10, 20, 50, and 100 dirhams, and notes of ¼, ½, 1, 5, and 10 dinars. ld1 = $0.76923 (or $1 = ld1.3) as of 2005.

WEIGHTS AND MEASURES: The metric system is the legal standard, but some local weights and measures are used.

HOLIDAYS: UK Evacuation Day, 28 March; US Evacuation Day, 11 June; Anniversary of the Revolution, 1 September; Constitution Day, 7 October. Muslim religious holidays include 'Id al-Fitr, 'Id al-'Adha', the 1st of Muharram, and Milad an-Nabi.

TIME: 2 pm = noon GMT.

LOCATION, SIZE, AND EXTENT

Situated on the coast of North Africa, Libya is the fourth-largest country on the continent, with an area of 1,759,540 sq km (679,362 sq mi), extending 1,989 km (1,236 mi) se–nw and 1,502 km (933 mi) ne–sw. Comparatively, the area occupied by Libya is slightly larger than the state of Alaska. It is bounded on the n by the Mediterranean Sea, on the e by Egypt, on these by the Sudan, on the s by Chad and Niger, on the w by Algeria, and on the nw by Tunisia, with a total land boundary length of 4,348 km (2,702 mi) and a coastline of 1,770 km (1,100 mi).

The Aozou Strip (114,000 sq km/44,000 sq mi) in northern Chad was claimed and had been occupied by Libya since 1973; in a judgment of 3 February 1994, the UN International Court of Justice returned the Aozou strip to Chad. Monitored by an observer force deployed by the UN Security Council, Libyan forces withdrew on 31 May 1994. However, Chadian rebels from the Aozou still reside in Libya. Libya also claims about 19,400 sq km (7,490 sq mi) of Nigerian territory.

Libya's capital city, Tripoli, is located on the Mediterranean coast.

TOPOGRAPHY

Libya forms part of the North African plateau extending from the Atlantic Ocean to the Red Sea. The highest point is Bikku Bitti, or Bette Peak, a 2,267-m (7,438-ft) peak in the extreme south. The chief geographical areas are Tripolitania, Cyrenaica, the Sirte Desert, and Fezzan. Tripolitania, in the northwest, consists of a series of terraces rising slowly from sea level along the coastal plain of Al-Jifara to a sharp escarpment. At the top of this escarpment is an upland plateau of sand, scrub, and scattered masses of stone, with elevations of up to 1,000 m (3,300 ft). Farther south are depressions extending from east to west. Here are found many oases and artesian wells.

The Sirte Desert is a barren area along the Gulf of Sidra separating Tripolitania and Cyrenaica. An upland plateau rising to about 600 m (2,000 ft) gives a rugged coastline to Cyrenaica. This plateau, the Jabal Akhdar, contains three of Libya's leading cities—Banghāzī (or Benghazi), Al Baydā, and Darnah. Farther south the desert is studded with oases such as Jālū and Al Jaghbūb. The Fezzan, in the southwest, is largely a series of depressions with occasional oases. There are no perennial rivers in the country.

CLIMATE

The climate has marked seasonal variations influenced by both the Mediterranean Sea and the desert. Along the Tripolitanian coast, summer temperatures reach between 40 and 46°c (104–115°f); farther south, temperatures are even higher. Summers in the north of Cyrenaica range from 27–32°c (81–90°f). In Tobruk, the average January temperature is 13°c (55°f); July, 26°c (79°f). The ghibli, a hot, dry desert wind, can change temperatures by 17–22°c (30–40°f) in both summer and winter.

Rainfall varies from region to region. Rain falls generally in a short winter period and frequently causes floods. Evaporation is high, and severe droughts are common. The Jabal Akhdar region of Cyrenaica receives a yearly average of 40–60 cm (16–24 in). Other regions have less than 20 cm (8 in), and the Sahara has less than 5 cm (2 in) a year.

FLORA AND FAUNA

The primary plant is the deadly carrot (Thapsia garganica). Other flora are various cultivated fruit trees, olive trees, date palms, junipers, and mastic trees. Goats and cattle are found in the extreme north. In the south, sheep and camels are numerous. As of 2002, there were at least 76 species of mammals, 76 species of birds, and over 1,800 species of plants throughout the country.

ENVIRONMENT

A major environmental concern is the depletion of underground water as a result of overuse in agricultural developments, causing salinity and seawater penetration into the coastal aquifers. The Great Manmade River Project, developed to transport water from large aquifers under the Sahara Desert to coastal cities, is the world's most extensive water supply project. Another significant environmental problem in Libya is water pollution. The combined impact of sewage, oil by-products, and industrial waste threatens the nation's coast and the Mediterranean Sea generally. Libya has about 1 cu km of renewable water resources. Only about 68% of the people living in rural areas have pure drinking water. The desertification of existing fertile areas is being combated by the planting of trees as windbreaks.

According to a 2006 report issued by the International Union for Conservation of Nature and Natural Resources (IUCN), the number of threatened species included 5 types of mammals, 7 species of birds, 3 types of reptiles, 9 species of fish, and 1 species of plant. Endangered species in Libya included the Mediterranean monk seal, the leopard, and the slender-horned gazelle. The Bubal hartebeest and Sahara oryx are extinct.

POPULATION

The population of Libya in 2005 was estimated by the United Nations (UN) at 5,766,000, which placed it at number 106 in population among the 193 nations of the world. In 2005, approximately 4% of the population was over 65 years of age, with another 35% of the population under 15 years of age. There were 107 males for every 100 females in the country. According to the UN, the annual population rate of change for 2005–2010 was expected to be 2.4%, a rate the government viewed as satisfactory. The projected population for the year 2025 was 8,323,000. The overall population density was 3 per sq km (8 per sq mi), but 90% of Libya's inhabitants live in the narrow coastal regions of Cyrenaica and Tripolitania.

The UN estimated that 86% of the population lived in urban areas in 2005, and that urban areas were growing at an annual rate of 2.15%. The capital city, Tripoli (Tarabulus), had a population of 2,006,000 in that year. Banghāzī, another chief city, had an estimated population of 1,033,000.

MIGRATION

The number of Italians was as high as 70,000 during the period of colonial rule. In 1964 Italians numbered 30,000, but most left after their land and property were nationalized in 1970. There were 30,000 Jews in Libya in 1948, but because of the Arab-Israeli conflict the community had virtually disappeared by 1973.

In 1984 there were officially 263,100 non-Libyans in the country, of whom more than 40% were Egyptians and 15% were Tunisians. The remainder came from a variety of other countries in Africa, the Mideast, and elsewhere. This figure was less than half the 569,000 foreigners in 1983, before new restrictions were placed on remittances abroad. In 1992, the foreign population was estimated at two million, half of them Egyptian, and 600,000 from South Korea, the Philippines, Thailand, and Vietnam. This estimated figure probably reflects illegal immigration. About 100,000 Libyans were in exile in the mid-1980s.

The nomadic inhabitants of Libya follow regular patterns of migration; nomadic tribes in the south normally ignore international frontiers. Since the discovery of oil there has been significant internal migration from rural to urban regions.

In 2000 there were 570,000 migrants living in Libya, including 11,500 refugees. In 2004 there were 12,166 refugees, mainly from Palestine, and 200 asylum seekers, all located in Tripoli. Also, in that same year over 700 Libyans sought asylum in Sweden, the United Kingdom, and Norway. In 2005, the net migration rate was estimated at zero. The government views the immigration level as too high, but the emigration level as satisfactory.

ETHNIC GROUPS

For thousands of years the inhabitants of Libya were Berbers. Arabs started arriving in the 7th century ad, displacing or assimilating their Berber predecessors. The latest estimates indicate that 97% of the total population is comprised of Berbers and Arabs. The remaining 3% are made up of Greeks, Maltese, Italians, Egyptians, Pakistanis, Turks, Indians, and Tunisians.

LANGUAGES

Arabic is the official language; since 1969, its use in daily life, even by foreigners, has been encouraged by government decree. English, which is also used in some government publications, has replaced Italian as the second language; however, Italian is still widely understood. Berber is spoken by small communities, especially in Tripolitania. Native speakers constitute about 5% of the population.

RELIGIONS

Under the constitution, Islam is Libya's official religion and the government publicly supports a preference for a moderate practice of Islam. About 97% of the people are Sunni Muslim. In an effort to eliminate alternative political power bases, the government banned the once powerful Sanusiyya Islamic order. Libyan leader Colonel Mu'ammar Al-Qadhafi then established the Islamic Call Society, which is the Islamic arm of the government's foreign policy. The ICS's main goal was to promote a moderate form of Islam, reflecting the views of the government.

Though other religions are generally tolerated, the government places a number of restrictions, which essentially limit the practice of non-Muslim faiths. There are no known places of worship for the small number of Hindus, Baha'is and Buddhists within the country. Proselytizing is prohibited. Members of non-Muslim faiths are, however, free to worship within their own homes. There are about 100,000 Christians in the country, with about half of them being Roman Catholics. Other denominations include Anglican and Coptic and Greek Orthodox. There is also a very small Jewish community.

TRANSPORTATION

Transportation varies from dirt tracks suitable for camels and donkeys to a coastal highway extending for 1,822 km (1,132 mi) between the Tunisian and Egyptian borders. At the end of 1968, this highway was connected with a north-south road to Sabhā. Further extensions to Murzūq and Ghat were later completed, as well as a spur to Birāk. In 1973, a 350-km (217-mi) road between Nalut and Ghadamis was completed. Roads also connect the Cyrenaica coastal centers with the interior. In all, there were an estimated 24,484 km (15,214 mi) of roads in 2002, of which 6,798 km (4,224 mi) were paved. In 2003, there were 368,600 private cars and 354,000 commercial vehicles registered in the country.

As of 2004, Libya had no operating railways, following the closure in the mid-1960s of two railway lines and the dismantling of the rest. However, work has begun on seven new standard gauge lines, totaling 2,757 km (1,715 mi), which it is hoped, will be completed by 2008.

The main ports are Tripoli, Banghāzī, Qasr Ahmad (the port for Mişratāh), and Tobruk. Crude oil export terminals include Port Brega (Marsá al-Burayqah) and Ras Lanuf. Since 1973, Tripoli's harbor has been developed considerably. As of 2005, Libya's merchant fleet had 17 vessels of 1,000 GRT or more, totaling 129,627 GRT.

In 2004, there were an estimated 139 airports. As of 2005, a total of 59 had paved runways, and there were 2 heliports. Libya's two international airports are Tripoli Airport (34 km/21 mi south of Tripoli) and Benina Airport (19 km/12 mi from Banghāzī). In 1968, a new airport at Sabhā in the Fezzan was opened. Libyan Arab Airlines, established in 1965, operates to neighboring Arab countries, central and southern Africa, and Europe. Many major world airlines serve Libya. There is also regular domestic service, with airports at Tobruk, Port Brega, Ghat, Ghadamis, Mişratāh, and Al Baydā. In 2003, about 627,000 passengers were carried on scheduled domestic and international flights.

HISTORY

Archaeological evidence indicates that a Neolithic culture, skilled in the domestication of cattle and the cultivation of crops, existed as far back as 6000 bc along the Libyan coast. To the south, in what is now the Sahara, hunters and herdsmen roamed what was then a well-watered savanna. Increasing desiccation and the coming of the Berbers about 2000 bc presumably, from southwestern Asia, ended this period. The pharaohs of the so-called Libyan dynasties who ruled Egypt (c.950–720 bc) are thought to have been Berbers. Phoenician seafarers, who arrived early in the first millennium bc, founded settlements along the coast, including one that became Tripoli.

Around the 7th century bc, Greek colonists settled in Cyrenaica. In succeeding centuries, the western settlements fell under the sway of Carthage; the eastern settlements fell to the Egyptian dynasty of the Ptolemies in the 4th century bc. When the Romans defeated Carthage in the Punic Wars of the 3rd and 2nd centuries bc, they occupied the regions around Tripoli. In 96 bc, they forced Egypt to surrender Cyrenaica, and Roman influence later extended as far south as the Fezzan. Libya became very prosperous under Roman rule; with the decline of Rome, western Libya fell in the 5th century ad to Germanic Vandal invaders, who ruled from Carthage. In the 6th century, the Byzantines conquered the Vandals and ruled the coastal regions of Libya until the Arab conquest of the 7th century. The Arabs intermixed with the Berbers, who were gradually absorbed into the Muslim Arab culture.

Western Libya was administered by the Aghlabids of Tunisia in the 9th century, and by the Fatimids of Tunisia and then Egypt in the 10th. During the 11th century, invasions by two nomadic Arab peoples, the Banu Hilal and Banu Sulaym, destroyed many of the urban and agricultural areas. Normans from Sicily occupied Tripoli and surrounding regions in 1145 but were soon displaced by the Almohads of Morocco; during the 13th century, the Hafsids of Tunisia ruled western Libya. The eastern regions remained subject to Egyptian dynasties. In the 16th century, Spanish invaders seized parts of the coast, turning over control of Tripoli to the crusading Knights of the Order of St. John of Jerusalem. The Ottoman Turks occupied the coastal regions in 1551, ruling the country until 1711, when Ahmad Qaramanli, of Turkish origin, wrested semiautonomous status from Istanbul. Pirate captains, operating out of Tripoli, raided the Mediterranean and the Italian coasts. The Qaramanlis ruled until 1835, when the Ottomans again assumed control.

In September 1911, the Italians invaded Libya, meeting fierce resistance from both Turks and indigenous Libyans. A peace treaty of 17 October 1912 between Turkey and Italy placed Libya formally under Italian rule, but the Libyans continued their resistance. Led by a Muslim religious brotherhood, the Sanusi, the Libyans (with some Turkish help) fought the Italians to a standstill during World War I. Following the war, and particularly after the accession of Benito Mussolini to power in Italy, the Italians continued their often-brutal efforts to conquer Libya. In 1931, 'Umar al-Mukhtar, a leader of the Sanusi, was captured and executed, and in 1932 the Italian conquest was completed. In World War II, Libya became a main battleground for Allied and Axis forces, until it was occupied by victorious British and Free French troops. The Treaty of 1947 between Italy and the Allies ended Italian rule in Libya and, when the Allies could not decide upon the country's future, Libya's fate was left to the UN. On 21 November 1949, the UN General Assembly voted that Libya should become an independent state. On 24 December 1951, Libya gained independence, with Muhammad Idris al-Mahdi as-Sanusi as king. In 1959 significant oil discoveries were made.

On 1 September 1969, a secret army organization, the Free Unionist Officers, deposed the king and proclaimed a republican regime. On 8 September, the Revolutionary Command Council (RCC) announced the formation of a civilian government. This government resigned on 16 January 1970, and a new cabinet was formed under Col. Mu'ammar al-Qadhafi, chairman of the RCC. Later that year, the United Kingdom and the United States closed their military installations. On 15 April 1973, Qadhafi called for a "cultural revolution" based on Islamic principles. In subsequent months, hundreds of "people's committees" were established to oversee all sectors of the nation's political, cultural, and economic life. In April 1974, Qadhafi withdrew from the supervision of daily administrative functions (these were assumed by Maj. Abdul Salam Jallud), but he remained the effective head of state of Libya.

Qadhafi sought to make Libya the axis of a unified Arab nation. Union was achieved with Egypt, Tunisia, Morocco, Syria, and Sudan at various times, but only on paper. Subsequent relations with the many Arab nations, including Egypt and Tunisia, have often been tense. Libya itself, despite rhetorical support for radical Palestinians, has stayed on the sidelines in Arab-Israeli conflicts.

Qadhafi has been equally active in Africa. In 1973, he annexed from Chad the disputed Aouzou Strip, an area that may contain rich deposits of uranium. In 1979, his armed forces tried unsuccessfully to prop up the failing regime of Idi Amin in Uganda. Libya sent over 10,000 troops into Chad in 1980 in support of the regime of Goukouni Oueddei, and a union of the two nations was proposed. Intense international pressure, however, led to a Libyan withdrawal in November 1981. After the fall of Oueddei's regime in June 1982, Qadhafi provided military support for Oueddei's efforts to topple the new French-backed government in Chad. Libya's and Oueddei's forces were in control of much of northern Chad until 1987, when Chadian forces ousted them, capturing or destroying $1 billion in Libyan military equipment, and attacking bases inside Libya itself. In 1989, after acknowledging his error in moving into Chad, Qadhafi agreed to a cease-fire and the submission of the dispute over the Aouzou Strip to the Court of International Justice. The Court settled the dispute in Chad's favor in 1994.

Qadhafi has been accused of supporting subversive plots in such countries as Morocco, Niger, Sudan, Egypt, Tunisia, Ghana, Burkina Faso, Nigeria, Gambia, Somalia, Senegal, and Mali and of providing material support for a variety of insurgents, including the Irish Republican Army, Muslim rebels in the Philippines, and Japanese and German terrorists. Qadhafi did find some support in small, poor black African countries, eager for Libyan aid. In 1982, however, he suffered a setback when the annual OAU summit scheduled for Tripoli failed to convene because of disputes over Libya's policies in Chad and its support of Polisario guerrillas in Western Sahara. As a result, Qadhafi was denied his term as OAU chairman. In contrast, in February 1997 in a deliberate jab at the UN Security Council's sanctions against Libya over the Lockerbie bombing affair, the OAU Ministerial Council met in Tripoli, the first time this meeting had been convened outside of its headquarters in Addis Ababa, Ethiopia.

In 1981, two Libyan jets were shot down by US fighters over the Gulf of Sidra, an arm of the Mediterranean claimed by Qadhafi as Libya's territorial waters. In 1982, the United States, charging Qadhafi with supporting international terrorism, banned oil imports from Libya and the export of US technology to Libya. In January 1986, the United States, citing "irrefutable evidence" of Libyan involvement in Palestinian attacks on airports in Rome and Vienna in the previous month, ordered all Americans to leave Libya and cut off all economic ties as of mid-1986. In March, a US naval task force struck four Libyan vessels after US planes entering airspace over the Libyan-claimed Gulf of Sidra were fired upon. On 15 April, following a West Berlin bomb attack in which US servicemen were victims, US warplanes bombed targets in Tripoli and Banghāzī. Libya said that Qadhafi's daughter was killed and two of his sons were wounded in the attack. Qadhafi survived several reported assassination and coup attempts in the 1980s and 1990s as well as the opposition of Islamist groups, which prompted him to crack down on militants in 1993.

Qadhafi's most serious challenge in the recent past was the tough sanctions imposed since 1992 and 1993 on Libya by the UN Security Council after he refused to surrender two men suspected in the terrorist bombing of a Pan American passenger jet over Lockerbie, Scotland, in 1988. The UN resolutions (nos. 731 and 883) prohibited sales of equipment and air travel to Libya and froze its overseas bank deposits but significantly, did not ban sales of petroleum products. Throughout the period of the sanctions the United States repeatedly attempted to persuade the UN to impose an oil embargo against Libya, but it was not successful. After numerous pleas to the UN by Arab and African countries and organizations to the UN Security Council to lift the sanctions, and numerous rounds of negotiations, in August 1998 Qadhafi agreed to eventually hand over the two Libyan suspects in the Lockerbie bombing for trial in the Netherlands before Scottish judges. The suspects were transferred to the Netherlands in April 1999. This decision led to an easing of tensions, with a suspension of the UN sanctions (although they were not lifted at the time) and Britain resuming full diplomatic relations in July 1999. The United States, however, remained committed to the branding of Libya as a supporter of international terrorism and therefore a pariah state. In January 2001, the Scottish court in the Netherlands found one of the two Libyan defendants guilty of involvement in the Lockerbie bombing, and sentenced him to life imprisonment. The other Libyan was acquitted. US president, George W. Bush, stated sanctions would remain in place not only until Libya compensated for the bombing of the aircraft, but also until Libya admitted guilt and expressed remorse for the act. In mid-2002, Libya stated that it was ready, in principle, to pay families of the victims of the bombing compensation in the amount of us$2.7 billion (us$10 million for each of the 270 victims). In August 2003, Libya accepted the responsibility for the actions of its officials and payment of the compensation to the victims' families. UN sanctions were lifted in September 2003, and US International Emergency Economic Powers Act (IEEPA) sanctions were lifted in September 2004.

In early September 1995, Libya began deporting thousands of Arab workers, primarily Palestinian, Sudanese, and Egyptian. In a speech on 1 September 1995, Qadhafi stated that foreigners (including some 30,000 Palestinians) were being expelled in order to create jobs for Libyans, although the move was widely interpreted as punishment of the PLO for holding peace talks with Israel. Qadhafi stated that many of those being deported were Islamic militant "infiltrators" posing as migrant workers. On 6 and 7 September, at least 30 people were killed in Banghāzī when armed Islamic militants battled Libyan security forces during a roundup of workers for deportation. By 11 September, 7,000 Egyptians had been expelled, and thousands of Palestinians were stranded either at sea or at the border wi The gypt. The deportations continued into October, when 650 Palestinians were stranded aboard a ferry off the coast of Cyprus, and 850 were still camped on the Egyptian border.

In March 1996, as many as 400 prisoners—many of them government opponents and Islamic militants—broke out of a prison near Banghāzī. The ensuing clash with Libyan troops was viewed by many observers as an indication of significant antigovernment feeling in eastern Libya. The growth of the Islamist movement in Libya is cause for concern in the region and for Qadhafi's maintenance in power.

In May 2001, Libya sent troops into the Central African Republic to aid President Ange-Félix Patassé and his supporters, to regain power after a failed coup attempt. It withdrew its troops in December 2002; Qadhafi stated the mission of restoring peace and stability to the country had been achieved. That month, Libya denied allegations put forward by the Democratic Republic of the Congo (DROC) that it was sending troops and equipment into Congolese territory along the border with the Central African Republic. On 13 December, the DROC government wrote the UN Security Council to condemn Libya's actions and to demand an immediate withdrawal of Libyan troops from its territory. The DROC accused Libya of aiding the Movement for the Liberation of the Congo (MLC), a rebel group.

Qadhafi has long called for reforms in the Arab League, including the creation of a single Arab currency, the forging of closer ties between the Arab League and the African Union, and the use of Arab military force against Israel if it does not agree to the "complete return of the Palestinians to their land."

In January 2003, Libya was elected by secret ballot to head the UN Commission on Human Rights. The votes were 33 in favor, 3 opposed, and 17 abstentions. This caused international controversy, and led to calls for reform of the UN. In 2006, plans were being made to create a new Human Rights Council to replace the UN Commission on Human Rights. The Human Rights Council is meant to be a standing body that would meet year-round to promote and protect human rights with a membership that excluded the worst human rights violators.

In December 2003, Libya publicly announced its intention to rid itself of weapons of mass destruction (WMD) and Missile Technology Control Regime (MTCR)-class missile programs. Since that time, it has cooperated with the United States, the United Kingdom, the IAEA, and the Organization for the Prohibition of Chemical Weapons toward these objectives. Libya also signed the IAEA Additional Protocol, and became a state party to the Chemical Weapons Convention.

GOVERNMENT

The Libyan Arab Republic was established on 1 September 1969, and a new constitution was announced by the Revolutionary Command Council (RCC) on 11 December 1969. The constitution, which has been effectively superseded by the principles of Qadhafi's "Green Book," proclaimed Libya to be "an Arab, democratic, and free Republic, which constitutes part of the Arab nation and whose objective is comprehensive Arab unity." Supreme authority rested with the 12-member RCC, which appointed both the prime minister and cabinet. Qadhafi, as chairman of the RCC, was the effective head of state and commander in chief of the armed forces. In March 1977, the nation's name was changed to the Socialist People's Libyan Arab Jamahiriya, and the "authority of the people" was proclaimed by a newly convened General People's Congress (GPC). The people theoretically exercise their authority through a system of some 600 people's congresses and committees. At the top of this system is the GPC, which replaced the RCC as the supreme instrument of government. The 760 GPC members are chosen out of about 2,700 representatives of the basic people's congresses. All executive and legislative authority is vested in the GPC, but it meets for only two weeks a year and delegates most of its authority to its own Secretariat and to the General People's Committee, in effect the cabinet, which is appointed by the Secretariat. GPC members serve three-year terms. Voting for local people's congresses, whose elected members select members of the GPC, is mandatory for those over 18. In 1979, Qadhafi gave up his official post as secretary-general of the GPC to become a "private citizen." As "Leader of the Revolution," however, he remains the de facto head of state. He also remains the commander of the armed forces and virtually all power is concentrated in him and his close advisers. In 1988, public discontent with shortages led Qadhafi to limit the authority of revolutionary committees, release many political prisoners, and remove restrictions on foreign travel and private enterprise.

In the 1990s Qadhafi saw his regime challenged by discontented military personnel and Islamist groups. Several assassination attempts have been reported, both within the military and from armed Islamist groups. His intolerance of opposition has continued. In March 1997 the GPC adopted the Charter of Honor, imposing collective punishment on Libyans convicted of crimes of disorder, such as sabotage, drug and arms trafficking, and "terrorists, criminals, saboteurs and heretics." The charter is clearly aimed at opponents of the regime.

POLITICAL PARTIES

Political parties have not played an important role in Libya's history. All political parties were banned in 1947 by British administrators, but many groups soon emerged to debate their country's future. By 1949, the Tripolitanian National Congress Party, led by Bashir Sadawi, was the leading party. However, it was dissolved in 1952, following local disorders, after Libya's first election campaign.

In 1971, the RCC founded the Libyan Arab Socialist Union as an alternative to political parties. It was viewed as an organization to promote national unity but has functioned little since 1977. Seven exiled opposition groups agreed in Cairo in January 1987 to form a joint working group, but their work had no discernible impact on political conditions in Libya. The following groups have been in opposition to the government: Fighting Islamic Group, Islamic Martyrs' Movement, Libyan Baathist Party, Libyan Conservatives' Party, Libyan Democratic Movement, Libyan Democratic Authority, Libyan Democratic Conference, Libyan Movement for Change and Reform, Libyan National Alliance, Movement of Patriotic Libyans, National Front for the Salvation of Libya, Libya Islamic Group, and Supporters of God.

LOCAL GOVERNMENT

Jamahiriya means "state of the masses" and politically implementing this system would involve a process of total decentralization of power, whereby all decisions would be left to the citizens via direct democracy. One source claims that in 1998 the GPC divided Libya into 26 governorates (Sha'biyah), each to be headed by the secretary of a people's committee. However, other sources differ on the structure of the local government. According to some sources, Libya is divided into 3 provinces, 10 governorates, and 1,500 administrative communes. One source lists a subdivision of 34 governorates. The CIA reports that there are 25 "municipalities," but notes that they may have been replaced by 13 "regions." There are municipal people's congresses, as well as vocational, production, professional, and craft people's congresses. Although in theory Qadhafi plans to decentralize power to the 600 popular congresses, most decision-making power is tightly controlled by the central government. The municipal people's congresses appoint people's committees to execute policy.

JUDICIAL SYSTEM

The Proclamation of People's Authority designates the Holy Quran as the law of society. The Libyan legal system largely follows Egyptian codes and precedents. All cases relating to personal status are dealt with according to Muslim law. Minor civil and commercial cases were heard in summary courts by a sitting judge in each village and town until January 2005. Cases of the first instance are heard by courts of first instance, and appeals may be taken to courts of appeal. A separate body called the Shariah Court of Appeals hears cases appealed from the lower courts involving Islamic law. There is also a Supreme Court, consisting of a president and judges appointed by the GPC. It may deal with constitutional and legislative questions referred to it and may hear administrative cases. Special revolutionary courts try political offenses.

The 1994 Purge Law provides for the confiscation of private assets above a certain amount. The law requires that the confiscated property should be given to the poor.

ARMED FORCES

In 2005, the armed forces of Libya numbered 76,000 active and some 40,000 reserve personnel. The Army had an estimated 45,000 personnel armed with 2,025 main battle tanks, 120 reconnaissance vehicles, over 1,000 armored infantry fighting vehicles, 945 armored personnel carriers, and over 2,421 artillery pieces. The Navy had 8,000 personnel including the Coast Guard. Major naval units included 5 tactical submarines, 2 frigates, 4 corvettes and 23 patrol/coastal vessels. The Air Force numbered an estimated 23,000 active personnel, operating 374 combat capable aircraft, including 7 bombers, 229 fighters and 113 fighter ground attack aircraft. The service also had 60 attack helicopters. The military budget was $620 million in 2005.

INTERNATIONAL COOPERATION

Libya joined the United Nations on 14 December 1955 and is a member of ECA and several nonregional specialized agencies, such as the FAO, UNESCO, IAEA, IFC, ILO, the World Bank, and the WHO. The country joined the Arab League in 1953, the OAU (now the African Union) in 1963, and OPEC in 1962. In January 1968, it was a founding member of OAPEC, along with Saudi Arabia and Kuwait. Libya also belongs to the African Development Bank, the Arab Bank for Economic Development in Africa,

the Arab Fund for Economic and Social Development, the Council of Arab Economic Unity, the Community of Sahel and Saharan States (CENSAD), the Arab Maghreb Union, the New Partnership for Africa's Development (NEPAD), and G-77. The country is an observer in the WTO.

Libya has been listed as a State Sponsor of Terrorism by the United States, even though the government has offered strong commitments to the United Nations to renounce and fight against terrorism. Libya is part of the Nonaligned Movement. In environmental cooperation, Libya is part of the Basel Convention, the Convention on Biological Diversity, the London Convention, the Montréal Protocol, and the UN Conventions on Climate Change and Desertification.

ECONOMY

Until the late 1950s, Libya was one of the poorest countries in the world. In 1950, per capita annual income was about $40, while Libya's most valuable source of foreign earnings was the revenue received for leasing bases to the United Kingdom and United States (the bases were vacated in 1970). But with the discovery of the Zaltan oil field in 1959, the economic horizons of the country were dramatically enlarged. The first oil pipeline, from B'ir Zaltan to the coast, was opened in 1961. More oil fields were subsequently discovered, until in 1970 a peak oil output of 159.9 million tons was achieved. Production has fallen since then, but its value has increased, and Libya remains one of the world's leading oil producers. Petroleum, petroleum products, and natural gas accounted for almost all the value of exports and for one-quarter of GDP in 2002. As of 2002, Libya had 12 oil fields with reserves of 1 billion barrels or more each, and two others with reserves of 500 million–1 billion barrels.

Until the late 1950s, about 80% of the population was engaged in agriculture and animal husbandry; in 1999, however, only 18% of the labor force was engaged in agricultural pursuits. Agriculture, forestry, and fishing represented only 5% of GDP in 1999. A massive water pipeline project, called the Great Man-made River (GMR) project was initiated in 1984, and was expected to take 25 years to complete. The GMR is built to carry water in a 427 km (267mi) pipeline from 225 underground wells to a 3.3 million liter (880,000 gallon) reservoir. This scheme envisaged providing irrigation large areas devoted to cereal cultivation. The government believed that this project would help Libya achieve self-sufficiency in grain (the country has to import at least 75% of its food needs). Total costs of the GMR were likely to exceed $25 billion.

The GDP was believed to have fallen 20% during 1984–86 due to low oil prices. After 1985, growth rates fluctuated sharply, reflecting changes in the oil market. Growth in GDP fell by 3% in 1998 due, once again, to falling oil prices, but prices rose in 1999–2000, leading to an increase in export revenues and a rise in GDP growth to 3% in 2001. In 2002, Libya devalued the official exchange rate of the dinar by 51% to increase the competitiveness of its firms and to attract foreign investment. At the same time it cut its customs duty rate by 50% on most imports to offset the effects of the currency devaluation.

Between 1992 and 1999, during the UN-imposed air embargo, many large projects were postponed because of budget restrictions. Libya's isolation slowed the pace of oil exploration through the absence of major foreign oil companies. Lack of outlets limited the development of refineries, petrochemicals, and gas facilities. In 1999, the UN sanctions on Libya—an air and arms embargo—were suspended because of the extradition of two suspects in the bombing of the Pan Am flight over Lockerbie. Oil companies are eager to exploit Libya's resources, and Libya as of 2003 was actively courting foreign companies to help develop its production capacity from 1.5 million barrels per day to 2 million barrels per day over a five-year period. Libya is looking to cast itself as a key economic intermediary between Europe and Africa.

The economy expanded by 9.3% in 2004, up from 9.1% in 2003; in 2005, the GDP growth rate was estimated at 8.5%. The inflation rate was in the negatives for some years, and at -3.4% in 2004 it posed problems to the export sector. The unemployment rate was 30% and represented one of the main problems the government had to deal with. The oil sector continued to be the main foreign exchange provider, but revenues from it are unevenly distributed across the different layers of society. The country's geographic location and its poor soils limit agricultural output, which means that most of the food (75%) has to be imported.

INCOME

The US Central Intelligence Agency (CIA) reports that in 2005 Libya's gross domestic product (GDP) was estimated at $48.2 billion. The CIA defines GDP as the value of all final goods and services produced within a nation in a given year and computed on the basis of purchasing power parity (PPP) rather than value as measured on the basis of the rate of exchange based on current dollars. The per capita GDP was estimated at $8,400. The annual growth rate of GDP was estimated at 8.5%. It was estimated that agriculture accounted for 7.6% of GDP, industry 49.9%, and services 42.5%.

Foreign aid receipts amounted to $10 million or about $2 per capita.

The World Bank reports that in 2003 household consumption in Libya totaled $10.97 billion or about $1,973 per capita based on a GDP of $23.5 billion, measured in current dollars rather than PPP. Household consumption includes expenditures of individuals, households, and nongovernmental organizations on goods and services, excluding purchases of dwellings.

LABOR

As of 2005, Libya's labor force totaled an estimated 1.64 million people. Unemployment as of 2004 was put at 30%. It was estimated that for 1997 (the latest year for which data was available), 17% of the workforce was in agriculture, with 29% in industry and 54% in the services sector. Foreign workers, who do much of the bluecollar and technical work, are not treated wi The quality under Libyan labor law, and may only stay in the country for the duration of their employment contracts. The largest employer is the government, which operates public utilities, public works, several banks, the port and harbor organizations, and other enterprises.

The National Trade Unions' Federation is the official trade organization, and any independent union or association is prohibited. All Libyan workers are required to join a trade union. Foreign workers may not join unions and have little protection. There is no collective bargaining; the government controls all employment matters. Strikes are not permitted. Foreign workers make up a large part of the labor force, but are subject to arbitrary treatment.

There is no information about the prevalence of child labor although the minimum age for employment is legally set at 18 years old. The maximum legal workweek is 48 hours. The average family wage is estimated at $170 a month, but it is reported that employees are irregularly paid, especially in the public sector.

AGRICULTURE

Only about 1.2% of the country is cultivated. As of 2003, irrigation covered about 470,000 hectares (1,161,000 acres), or 22% of the cultivated area.

Agriculture is the only economic sector in which private ownership is still important. Cereals are grown in Tripolitania and Cyrenaica; agriculture in the Fezzan is concentrated in the oases. Virtually all crops are grown for domestic consumption. Nevertheless, most agricultural products must be imported; the cost, in 2004, was over $1.1 billion. Estimated agricultural output in 2004, in tons, included potatoes, 195,000; tomatoes, 190,000; wheat, 125,000; and barley, 80,000. The 2004 production of fruits, in tons, included watermelons, 240,000; dates, 150,000; olives, 180,000; oranges, 44,000; and apples, 20,000.

Libya is investing a significant share of national revenues in agriculture in the hope of someday becoming agriculturally self-sufficient; cultivation has been changing from subsistence farming to highly mechanized operations. Development plans aim to increase irrigation and introduce and extend the use of advanced techniques; seeds and fertilizers have been subsidized. Areas singled out for development include the Al-Jifara Plain in Tripolitania; the Jabal Akhdar, east of Banghāzī; part of the Fezzan; and the oases of Kufrah and Sarir. In the Kufrah oasis, large, untapped water reserves are being utilized to help provide fodder for sheep. In 1984, Libya embarked on a massive project to pipe water to the coast from underwater aquifers. The project was designed to transport 2 million cu m of water per day via 2,000 km (1,240 mi) of pipeline from 270 artesian wells in the east to connect Sirte and Banghāzī. The first phase was inaugurated in 1991 at a cost of $5 billion; the total project is estimated to cost $25 billion. In all, the scheme would provide 50 years of irrigation to the coastal areas, where 80% of Libya's agriculture is located.

A government agency markets farm produce and has authority to operate cooperatives and farms. The Agricultural Bank has been provided with sufficient capital to make short- and long-term loans easily available.

ANIMAL HUSBANDRY

Before the transformation of the economy by the discovery of oil, livestock was an important sector, providing transport, clothing, food, and skins for tents. South of the Jabal areas, a wide belt of drought-resistant vegetation extending across most of the country is still used by nomadic and seminomadic herdsmen for grazing. In the Fezzan, the nomads move about between oases or other places where vegetation is suitable for their animals. Libya's livestock are vulnerable to disease and drought, and in past years losses have reached as high as 60%.

The livestock population of Libya in 2005 included 4,500,000 sheep, 1,265,000 goats, 130,000 head of cattle, 47,000 camels, 45,000 horses, 30,000 donkeys, and 25 million chickens. Private dairy farms are allowed to operate, but their milk has to be sold to the state. The government maintains large poultry farms.

New strains of livestock and more efficient grazing practices are being encouraged. The government hopes its development plans will make Libya self-sufficient in meat supplies. Livestock products in 2005 included 142,000 tons of meat, 60,000 tons of eggs, and 130,000 tons of cow's milk.

FISHING

Fishing is of minor importance, but the government is actively supporting extension of fishing and related activities, including the construction of sardine canning factories and modern storage facilities in the principal ports and the creation of local fishing fleets. Libya's excellent fishing grounds contain tuna, sardines, and other fish. The catch was 33,671 tons in 2003. Landings of bluefin and bigeye tuna have sharply increased since 1990. The value of fish exports significantly rose from $380,000 in 1990 to $79.5 million in 2003.

FORESTRY

The only important forest areas in Libya are shrubby juniper growths in the Jabal Akhdar areas of Cyrenaica. A few conifers are found in more isolated districts. Tripolitania has some forest remnants in inaccessible regions. Encroaching sand dunes in the north create a need for afforestation, and many acacia, Aleppo pine, carob, cypress, eucalyptus, olive, and palm trees have been planted. Some 358,000 hectares (884,600 acres) of Libyan territory are classified as "forest," but almost all of this land could more properly be called maquis. Dune fixation, both for reforestation and to preserve agricultural land, has been an important part of the forestry program.

Up to 1976, the government had planted 213 million seedlings, mostly in western Libya. By 1981, 165,405 hectares (408,722 acres) of forest and 63,443 hectares (156,770 acres) of windbreak had been planted. During the 1980s, reforestation was proceeding at the rate of 32,000 hectares (79,000 acres) per year, but that rate slowed to 5,000 hectares (12,300 acres) during the 1990s. In 2004, roundwood removals were estimated at 652,000 cu m (23 million cu ft), of which 536,000 cu m (18.9 million cu ft) were used for fuel.

MINING

The nonfuel sector of the Libyan mining industry was negligible. Petroleum was Libya's leading industry in 2004, although oil production has fallen to under 50% of output in 1970. Libya was the third-largest crude oil producer in Africa, after Nigeria and Algeria. Nonhydrocarbon mineral production in 2004 consisted of lime, gypsum, hydraulic cement, salt, and sulfur (as a by-product of petroleum and natural gas). Estimated production in 2004 included: 1,026,000 metric tons of lime; 175,000 tons of gypsum; 15,000 metric tons of sulfur (by-product of petroleum and natural gas); 3,5 million metric tons of hydraulic cement; and 40,000 metric tons of salt. Libya had large reserves of iron ore in the Fezzan. The Wadi ash-Shatti iron ore deposit was estimated to contain 1,600 million tons of oolitic hematite, limonite, chamosite, and siderite with a grade range of 30%–48% iron. There were also deposits of magnesium salts (7.5 million tons) and potassium salts (1.6 million tons) in Maradah, south of the Port Brega oil terminal; potash in the Sirte Desert; and magnetite, phosphate rock, and sulfur.

ENERGY AND POWER

Libya is a major exporter of oil, mainly to Europe, mainly to Italy, Germany, France and Spain. The country is also a member of the Organization of Petroleum Exporting Countries (OPEC).

According to the Oil and Gas Journal, Libya's proven oil reserves, as of 1 January 2005, amount to 39 billion barrels. Although Libya has 12 oil fields, each with reserves of 1 billion barrels or more, plus two other fields with reserves in the 500 million to one billion barrel range, the country remains highly unexplored and is viewed as having excellent potential for additional oil discoveries.

Because Libya is a member of OPEC, its crude oil production is subject to a quota, which as of 1 November 2004, was placed at 1.445 million barrels per day. In 2004, Libya's oil output averaged an estimated 1.60 million barrels per day, of which crude oil accounted for 1.51 million barrels per day, and natural gas liquids at 65,000 barrels per day. Domestic oil demand in 2004 was estimated at an average of 237,000 barrels per day. Net exports in that year were estimated at an average of 1.34 million barrels per day

Libya's domestic refining sector that is made up of five refineries, with a combined capacity of around 380,000 barrels per day, which is greater than its domestic consumption and allows to country to export refined petroleum products. The five refineries and their crude refining capacities are: the Ras Lanuf facility on the Gulf of Sirte (220,000 barrels per day); the Az Zawiya refinery (120,000 barrels per day); the Tobruk refinery (20,000 barrels per day); the Brega (Libya's oldest at 10,000 barrels per day); and the Sarir (10,000 barrels per day). Libya is also a direct distributor and producer of refined products in Germany, Switzerland, Italy and Egypt.

In addition to oil, Libya has large proven reserves of natural gas, which as of 1 January 2005, were estimated, by the Oil and Gas Journal, to contain 52 trillion cu ft. However, these reserves are thought to be larger because they are largely unexplored and unexploited. These potential reserves have been placed by Libyan experts at between 70 to 100 trillion cu ft. In 2002, natural gas output was estimated at 219 billion cu ft, with domestic demand in that year estimated at 197 billion cu ft. Libya is looking to expand its output of natural gas, in part as a replacement for oil in electric power generation, thus freeing up more oil for export, and for natural gas exports to Europe.

Libya's electric power generating sector is marked by rapidly increasing demand that has resulted in widespread power shortages. All of the country's existing power stations use conventional thermal fuels. Most facilities use oil, but others have been converted to use natural gas. Total electric power generating capacity in 2002 was estimated at 4.710 million kW, with output in that year at 14.424 billion kWh. Demand for electric power in Libya is growing rapidly at a rate of about 6–8% per year. In 2002, demand for power came to 13.414 billion kWh. By 2010, demand for power in Libya is anticipated to reach 5.8 GW and 8GW by 2020.

INDUSTRY

Libyan manufacturing industries developed significantly during the 1960s and 1970s, but fell far behind the petroleum sector of the economy in the 1980s. Non-oil manufacturing and construction sectors accounted for about 20% of GDP in 2002.

Libya is Africa's largest oil producer. Libya's oil and gas potential is vast and the country remains largely underexplored. The country's proven oil reserves are 29.5 billion barrels and production is 1.4 million barrels per day. Among the many industries utilizing petroleum products is a natural gas liquefaction plant which went into operation in 1971 at Marsá al-Burayqah (Port Brega). Libya is a direct producer of refined products in Italy, France, Germany, Spain, and Switzerland. The refining sector was adversely affected by the UN embargo; several projects for expanding domestic refining were delayed. When UN sanctions were suspended in 1999, foreign oil companies showed a keen interest in investing in the exploration and production of oil in Libya.

The petrochemicals industry is centered at the Marsá al-Burayqah plant, which produces methanol, ammonia, and urea. Despite the fact that the plant operates at only 35% of capacity, its production of urea and ammonia far exceeds domestic demand. A major plant producing ethylene, propylene, and butene was opened at Ras Lanuf in 1987. A second phase of the Ras Lanuf complex was to produce benzene, butadiene, methyl tertiary butyl ether (MTBE), and butane-1, but as of 2000, it was not complete. The Abu Kammash petrochemical complex produces ethylene dichloride (EDC), polyvinyl chloride (PVC), and vinyl chloride monomer (VCM). The iron and steel complex at Mişratāh began operations in 1990. Large natural gas reserves were underdeveloped in 2002; a pipeline network was expected to be planned by 2006.

Libya's other manufacturing industries are small, lightly capitalized, and devoted primarily to the processing of local agricultural products (tanning, canning fruits and vegetables, milling flour, and processing olive oil), and to textiles, building materials, and basic consumer items. Handicraft products include carpets and rugs, silver jewelry, textiles, glassware, and leather goods.

Industry accounted for 49.9% of economic output in 2005, followed by services with a 42.5% share. Agriculture continued to be the weakest economic sector, with just a 7.6% share in the GDP. Oil and gas carry the lion share of industrial output, accounting for around 33% of the GDP. The non-oil manufacturing and construction sectors had expanded and by the early 2000s they included the production of petrochemicals, iron, steel, and aluminum.

SCIENCE AND TECHNOLOGY

There is a predominance of foreign labor in scientific and technical positions. Al-Fatah University at Tripoli (founded in 1973) has faculties of science, engineering, agriculture, medicine, pharmacy, veterinary medicine, nuclear engineering, and petroleum and mining engineering. The University of Garyounis at Banghāzī (founded in 1955) has faculties of science and engineering. Bright Star University of Technology at Marsá al-Burayqah (founded in 1981) has faculties of basic engineering science, electrical and electronic engineering, mechanical and production engineering, chemical engineering, and petroleum engineering. Al-Arab Medical University at Banghāzī was founded in 1984. Sabhā University has faculties of science, agriculture, medicine, and engineering. A posts and telecommunications institute is at Tripoli.

Despite its abundant oil and gas reserves, Libya is highly interested in nuclear power. A 10-MW research reactor is located at Tajura.

DOMESTIC TRADE

Tripoli, the leading port and transportation center, is the focus of trading activities. In 1978, Qadhafi announced that individuals should cease engaging in trade or marketing, and in 1979 the private import-export trade was banned. In 1981, all shops were closed and replaced by huge supermarkets with stocks purchased by the state. About a dozen basic commodities are price-subsidized, and a rationing system was established in 1984. Because of an acute shortage of consumer goods, including food staples, some private stores were allowed to reopen by 1987. The nation depends heavily on imports for basic food products, since the agricultural sector only provides for about 25% of the nation's food supply as of 2002. The sale of alcohol is prohibited.

An annual international trade fair is held in Tripoli each March. Normal business hours are 7 am to 2 or 2:30 pm, Saturday through Thursday. Banks are open Saturday through Thursday from 8:30 am to 12:30 pm in winter and from 8 am to 12 pm in summer. Summer banking hours also include 4 to 5 pm, Saturday through Wednesday.

FOREIGN TRADE

Libya has long enjoyed a favorable trade balance because of exports of crude oil, mostly to Europe. Crude petroleum and petroleum products make up the majority of Libya's export commodity

Country	Exports	Imports	Balance
World	10,194.9	3,731.5	6,463.4
Italy-San Marino-Holy See	4,343.8	713.1	3,630.7
Germay	1,556.2	440.5	1,115.7
Spain	1,555.0	121.6	1,433.4
Turkey	769.3	36.2	733.1
Tunisia	423.2	189.9	233.3
Greece	270.7	27.4	243.3
United Kingdom	233.6	216.0	17.6
Malta	76.5	39.1	37.4
Netherlands	70.0	87.0	-17.0
Egypt	57.1	68.8	-11.7
(…) data not available or not significant.

market (93%). Other exports include natural and manufactured gas (3.1%), hydrocarbons (1.5%), and fertilizers (1.1%).

In 2005, exports reached $31 billion (FOB—free on board), while imports grew to $11 billion (FOB). The bulk of exports went to Italy (37%), Germany (16.6%), Spain (11.9%), Turkey (7.1%), and France (6.2%). Imports mainly came from Italy (25.5%), Germany (11%), South Korea (6.1%), the United Kingdom (5.4%), Tunisia (4.7%), and Turkey (4.6%).

BALANCE OF PAYMENTS

Libya customarily registered balance-of-payments surpluses from 1962 until 1981, thanks to large trade surpluses derived from the export of oil. Declining oil production caused payments deficits

Current Account			2,136.0
Balance on goods		2,974.0
Imports	-4,302.0
Exports	7,276.0
Balance on services		-930.0
Balance on income		311.0
Current transfers		-219.0
Capital Account			…
Financial Account			-1,045.0
Direct investment abroad		-226.0
Direct investment in Libya		-128.0
Portfolio investment assets		-3.0
Portfolio investment liabilities		…
Financial derivatives		…
Other investment assets		-315.0
Other investment liabilities		-373.0
Net Errors and Omissions			-403.0
Reserves and Related Items			-688.0
(…) data not available or not significant.

from 1981 to 1984. The services and transfers accounts are in deficit because of travel by Libyans abroad, transportation costs, payments to foreign contractors, and remittances by foreign workers. The capital account is also usually in deficit because of Libyan aid and investment abroad. Foreign debt is difficult to calculate because trade debts are often settled by the barter supply of oil.

The US Central Intelligence Agency (CIA) reported that in 2001 the purchasing power parity of Libya's exports was $13.1 billion while imports totaled $8.7 billion resulting in a trade surplus of $4.4 billion.

The International Monetary Fund (IMF) reported that in 1999 Libya had exports of goods totaling $6.76 billion and imports totaling $4 billion. The services credit totaled $55 million and debit $918 million.

Exports of goods totaled $17 billion in 2004, up from $15 billion in 2003. Imports grew from $7 billion in 2003, to $9 billion in 2004. The resource balance was consequently positive, and fairly constant in both years—$8 billion. A similar trend was registered for the current account balance, which improved slightly from $3.6 billion in 2003, to $3.8 billion in 2004. Foreign exchange reserves (excluding gold) grew to almost $26 billion in 2004, covering more than three years of imports.

BANKING AND SECURITIES

The Central Bank of Libya, established in 1956, supervises the national banking system, regulates credit and interest, and issues bank notes. It also regulates the volume of currency in circulation, acts as a banker to the government, provides clearinghouse facilities for the country's commercial banks, and administers exchange control. Since 5 August 1962, the bank has been vested with a monopoly in the import of fine gold.

Libya formerly had branches of many Arab, Italian, and British commercial banks; they were nationalized in 1969. The government ruled that 51% of the capital of each should be taken over by the government, which paid the value of this share. Thus, the Banco di Roma became Umma Bank, Barclays Bank eventually became Jamahiriya Bank, and the Banco di Sicilia became the Sahara Bank. The commercial department of the Central Bank was merged with two small banks to form the National Commercial Bank. In 1972, a reorganization of the commercial banks left the Jamahiriya and Umma banks owned by the Central Bank of Libya; two other institutions, the Sahara Bank and the Wahda Bank, were jointly owned by the Central Bank and private interests.

The National Agricultural Bank, established in 1957, provides advice and guidance on agricultural problems, advances loans to farm cooperatives, and generally assists the agricultural community. The Industrial and Real Estate Bank, founded in 1965, made loans for building, food-processing, chemical, and traditional industries; later it was divided into the Savings and Real Estate Bank and the Development Bank. A decree in 1966 abolished interest on loans made by the government development banks. In 1972/73, the government created the Libyan Arab Foreign Bank, later renamed Jamahiriya Foreign Bank, owned by the Central Bank of Libya, to invest in foreign countries. In 1981, its role in foreign investment was taken over by the Libyan Arab Foreign Investment Co.

In 1997, in addition to the central bank, there were eight other banks in Libya: the Agricultural Bank, Jamahiriya Bank, Libyan Arab Foreign Bank, National Commercial Bank, Sahara Bank, Savings and Real Estate Investment Bank, Umma Bank, and Wahda Bank. In 1994, Libyan financial assets frozen in the United States alone amounted to some $1 billion. Interest rates are fixed by the central bank, which has applied a discount rate of 5% since 1980. The maximum lending rate for secured loans and overdrafts currently stands at 7%.

The International Monetary Fund reports that in 2001, currency and demand deposits—an aggregate commonly known as M1—were equal to $11.3 billion. In that same year, M2—an aggregate equal to M1 plus savings deposits, small time deposits, and money market mutual funds—was $15.2 billion. The money market rate, the rate at which financial institutions lend to one another in the short term, was 4%. The discount rate, the interest rate at which the central bank lends to financial institutions in the short term, was 5%.

There are no securities exchanges in Libya.

INSURANCE

In 1995, all classes of insurance were available through the Libya Insurance Co. and Al-Mukhtar Insurance Co., both state enterprises. All licensed vehicles require third-party liability insurance, and all imported goods must be insured.

PUBLIC FINANCE

The fiscal year follows the calendar year. There are two budgets, one for ordinary expenses, the other (and larger one) for development. By law, 15% of total oil revenue is put aside yearly into the country's reserves, while 70% of the remainder goes to development expenditures. All non-oil revenues are assigned to cover ordinary expenditures, and any shortfall is made up by transferring some of the petroleum revenues from the development budget. If funds from petroleum revenues are not sufficient to cover development expenses, some planned projects are postponed. Although Libya has used part of its oil revenue to finance internal development (new schools, hospitals, roads) much has been wasted. Limited privatization continued in 1993, involving the sale of some parastatal assets. In 1999, Libya announced the need for $150 billion of investment in the economy in order to retain a growth rate of 5%; 60–70% of the funds were to be financed by public monies.

The US Central Intelligence Agency (CIA) estimated that in 2005 Libya's central government took in revenues of approximately $25.3 billion and had expenditures of $15.4 billion. Revenues minus expenditures totaled approximately $9.8 billion. Public debt in 2005 amounted to 8% of GDP. Total external debt was $4.267 billion.

TAXATION

Individual income taxes are levied at different rates for income from real estate, agriculture, commerce, industry, crafts, independent professions, and wages and salaries. Corporate taxes range from 20–60%. Also levied are a 16.7% royalty on petroleum production, a general income tax of up to 90% and a Jihad tax. Indirect taxes in 2002 were mainly sales taxes at various rates.

CUSTOMS AND DUTIES

As of 1996, the average weighted tariff was 21.3%. Import controls remain extremely tight, even by regional standards, keeping Libya a difficult place to do trade.

Libya has a single-column tariff schedule. Goods from all countries are subject to the same duties. Also levied are customs surcharges totaling 15% of the application customs duties. Almost all customs duties are ad valorem.

FOREIGN INVESTMENT

Outside of the oil industry, foreign investment in Libya is limited. No foreign investment is allowed in certain areas, including banking, insurance, domestic commerce, and foreign aid. A minimum of 51% of the capital of joint stock companies must be held by Libyans and the chairman of the board of directors must be a Libyan national.

With the massive increase in oil revenues in the 1970s, Libya became a major exporter of capital. Economic cooperation agreements were signed with many African countries and in 1976 Libya purchased 10% of the shares of the Italian auto company Fiat; it sold its Fiat holdings in 1986 for about $3 billion.

In 1999, with the lifting of international sanctions on Libya, Qadhafi called for foreign investment in the energy sector (hydrocarbons, power, and water). He also encouraged investment in telecommunications, transport, and electricity generation. Under the current prime minister, Ghanem, a large part of the national companies was privatized, and the economy as a whole is considered to be ripe for modernization and foreign investment. Many international oil companies (e.g. Shell) have recently returned to Libya and the tourism sector will likely benefit from investments in hotels and infrastructure.

ECONOMIC DEVELOPMENT

Under Libya's first five-year development plan (1963–68), several long-run measures were taken to raise industrial production and to expand and improve the quality of agriculture. Of the government's oil revenue, 70% was earmarked for the development plan. Of this total, 23% was allocated for public works, 17% for agriculture, 16% for communications, 13% for education, 7% for public health, and 4% for industry. The 1972–75 development plan targeted a growth of 11% annually in GDP. Investment was allocated as follows: industry and mineral resources, 15%; agriculture, 14%; communications, 14%; housing, 11%; petrochemicals, 11%; and education, 9%. The 1976–80 development plan invested principally in agriculture, 20%; communications, 14%; industry, 13%; and housing, 12%. The 1981–85 development plan called for investment in industry, 23%; agriculture, 18%; communications, 12%; and electricity, 12%. The drop in oil income caused a contraction in planned projects, however. The plan for 2001–05 foresaw $35 billion total of investments, mostly in hydrocarbons, power, and water, with a projected GDP growth rate of 5%.

In 1980, Libyan bilateral aid to developing countries totaled 0.90% of GNP. In 1981, however, the total was only 0.39% of GNP. In 1981, Libya also contributed funds to multilateral aid organizations, principally to the Arab agencies and the OPEC Fund. As of 1987, the investments of the Libyan Arab Foreign Investment Co. included 30 companies in Arab countries. There are also significant Libyan holdings in African countries.

According to BIS, Libya increased its deposits in foreign banks in 1986, while at the same time reducing its outstanding debt. By 1989 Libya's net creditor position with BIS reporting banks had declined almost two-thirds in 1987. However, rising deposits in 1990 reflecting soaring oil revenues because of the Persian Gulf crisis, combined with reduced liabilities, led to a positive net balance. Due to the decline in oil export receipts in 1991, this surplus was reduced by one-third. Frozen assets in US banks netted $1 billion in 1994. The 1999 lifting of sanctions saw increased foreign investment.

In 2003, the government planned to diversify the economy away from its total dependence on oil, which accounts for 95% of Libya's foreign currency. Tourism was one sector of the economy targeted for development, and those working in the industry have encouraged the formation of commercial banks to finance tourism projects. The Tourism Development Bank, 80% of whose shares are held by the private sector, was one example of this initiative. Qadhafi in 2003 urged Libyans to undertake investment projects such as road and port projects, and communication and industrial production projects. The oil sector was not to be privatized, but rather open to investment, while the public sector would not be entirely dismantled, but would work with the private sector. Qadhafi reaffirmed the need to establish people's socialism as the foundational economic structure of society, whereby companies would not be owned by the state, but by the people who run them, assisted by foreign investors where necessary. Libya initiated a $35 billion investment plan for 2002–05. In July 2004, Libya applied for membership in the WTO; as of late 2006, the Working Party committee to consider the application had not met.

The economy was expected to expand vigorously. Thus, by 2006, the GDP growth rate was projected to be 8.1%—the result of slower output in the oil sector.

SOCIAL DEVELOPMENT

By law, all employees are entitled to sickness, invalid, disability, death, and maternity benefits and unemployment payments. The cost of these programs is shared by employers, employees, and the government. Survivor benefits are paid to widows, siblings, or sons. Rehabilitation programs are provided for sick and disabled employees to provide them with new employment opportunities. Lump sum grants are provided for maternity, births, and funerals. There is no statutory benefits for unemployment, and there are limited family benefits under Social Care Fund legislation.

Despite a constitutional proclamation providing equality for women, customary Muslim restrictions still apply. Women are granted full legal rights, but few women work outside of the home, and those who do remain in low-paid positions. There is evidence to suggest that younger, urban women are gradually becoming more emancipated. Younger women in urban areas have largely discarded the veil, although in rural areas it is still widely used. Women still must obtain their husband's permission in order to leave the country. Violence against women remains a serious problem and is not discussed publicly.

There have been many reports of continuing human rights violations, including torture. Under Libyan law, persons may be detained incommunicado for unlimited periods, and the government has defended its practice of imprisoning political dissenters. Citizens do not have the right to legal counsel or to fair public trials. The government discriminates against ethnic and tribal minorities, and restricts freedom of speech, press, movement, assembly, religion, and association.

HEALTH

In 2004, there were an estimated 129 physicians, 360 nurses, 14 dentists, and 25 pharmacists per 100,000 people. Approximately 72% of the population had access to safe drinking water and 97% had adequate sanitation.

Widespread diseases include typhoid, venereal diseases, and infectious hepatitis. In 1992, the UN approved trade and air traffic embargoes affecting the economy and health care system. With the assistance of the World Health Organization, Libya has eradicated malaria, once a major problem. Tuberculosis is still prevalent.

As of 2002, the crude birth rate and overall mortality rate were estimated at, respectively, 27.6 and 3.5 per 1,000 people. The infant mortality rate was 24.6 per 1,000 live births in 2005. The fertility rate in 2000 was 3.5 children per woman during her childbearing years. The maternal mortality rate was estimated at 75 per 100,000 live births. The average life expectancy was 76.50 years in 2005. Immunization rates for children up to one year old were: diphtheria, pertussis, and tetanus, 96%, and measles, 92%. Diarrheal diseases took the lives of 4,683 Libyan children under five years of age in 1995.

The HIV/AIDS prevalence was 0.30 per 100 adults in 2003. As of 2004, there were approximately 10,000 people living with HIV/AIDS in the country.

HOUSING

Increasing urbanization has created slum conditions in the major cities. There have been slum clearance and building projects since 1954. Around 125,000 new homes were built between 1969 and 1977. Low-income families were allowed to buy ready-made houses from the state at 10% of cost or to build their own homes with interest-free loans. Real estate was the main area of private investment until 1978, when most tenants were made owners of their residences. The state paid full compensation to landlords for confiscated property and resold it to tenants at subsidized prices. As of the late 1980s, the last period for which housing information was available, total housing units numbered 700,000 with 5.6 people per dwelling.

EDUCATION

When Libya attained independence, about 90% of its population was illiterate, and there were few university graduates. Since then, the government has invested heavily in education, which is free at all levels. In 1985, the number of years of compulsory schooling was increased from six to nine years. Many students are enrolled in kindergarten programs of one or two years. Basic (primary) education covers nine years of study. This is followed by four years of specialized secondary education or four years of vocational school. The academic year runs from September to June.

In 2001, about 8% of children between the ages of four and five were enrolled in some type of preschool/kindergarten program. In 1994, primary schools had 1,357,040 pupils. Secondary schools had 310,556 pupils in 1992. Of these, 26,393 were in teacher training schools and 94,961 were in vocational schools. There has been a rapid increase in the number of students attending vocational schools, from 16,008 in 1980 to 118,564 in 1993.

The two main universities are Al-Fatah University and University of Garyounis in 1976. The Bright Star University of Technology at Marsá al-Burayqah was founded in 1981. There were also two higher institutes of technology and one of mechanical and electrical engineering. In 2003, about 58% of the tertiary age population were enrolled in some type of higher education program. The adult literacy rate for 2004 was estimated at about 81.7%, with 91.8% for men and 70.7% for women.

As of 2003, public expenditure on education was estimated at 2.7% of GDP.

LIBRARIES AND MUSEUMS

The National Library in Banghāzī holds 150,000 volumes, including the official documents of the Arab League. The public library in Banghāzī had 14,000 volumes in 2002. Libya's largest library, with 295,000 volumes in 2002, is at the University of Garyounis; at that time, the Government Library in Tripoli had 37,000 volumes. The National Archives, which have an extensive collection of documents relating to the history of Tripolitania under Ottoman rule, are in Tripoli. In addition, France and Italy maintain cultural centers with libraries in the national capital. The Libyan Studies Center in Tripoli holds 100,000 volumes.

The museums exhibit mainly antiquities excavated from various Greek, Roman, Byzantine, and Arabic sites. The Department of Antiquities is responsible for all museums and archaeological sites in the country. Tripoli houses the Archaeological Museum, Epigraphy Museum, Ethnographic Museum, Natural History Museum, Prehistory Museum, and Islamic Museum. There are other museums, mainly archaeological, at Cyrene, Homs, Gaigab, Germa, Leptis Magna, Tokrah, Zanzur, Marsa Susah, and Sabrata.

MEDIA

Postal, telephone, and wireless services are owned and operated by the government. Radiotelephone ties exist between Tripoli and European centers. In 2003, there were an estimated 136 mainline telephones for every 1,000 people. The same year, there were approximately 23 mobile phones in use for every 1,000 people.

The Socialist People's Libyan Arab Jamahiriya Broadcasting Corp. broadcasts on radio in Arabic and English, and on television in Arabic, English, Italian, and French. As of 2005, there were no privately owned broadcasting stations. In 2003, there were an estimated 273 radios for every 1,000 people. The number of televisions stations was not reported in the same survey. The same year, there were 23.4 personal computers for every 1,000 people and 29 of every 1,000 people had access to the Internet.

In 2002, there were three major daily newspapers. Al-Fair AlJadeed (The New Dawn) published in Tripoli, with circulation of about 40,000. The other dailies included Al-Jihad and Libyan Press Review. All print media is owned by the government.

The state is said to restrict all expression and opinion on matters deemed crucial to Qadhafi or his regime. All political activities, including publication and broadcasting, which are not officially approved are banned. Vague laws exist by which any speech or expression may be interpreted as illegal. It is said that there is a pervasive system of informants, which creates an atmosphere of mistrust and self-censorship at all levels of society.

ORGANIZATIONS

There are chambers of commerce in Tripoli and Banghāzī. Libya has few nongovernment organizations. Membership in an illegal organization was made a capital offense in 1975. Youth organizations include the General Union of Great Jamahiriya Students, which has a membership consisting of all Libyan students registered at both secondary and tertiary educational institutions throughout the country. There is also a Libyan Public Scout and Girl Guide movement. Several sports associations and clubs are active throughout the country. The Gaddafi Charity Foundation encourages volunteer efforts in social welfare and human rights programs. The Red Crescent Society and Caritas have active national chapters.

TOURISM, TRAVEL, AND RECREATION

Tourists are attracted to Libya's climate, extensive beaches, and magnificent Greek and Roman ruins. However, tourist facilities are not widely available, because tourism has been discouraged during the tenure of Qadhafi. It suffered a further blow with the 1992 imposition of UN sanctions related to the bombing of a Pan Am jet over Lockerbie, Scotland; UN sanctions were lifted in September 2003 when Libya resolved this case.

All visitors, except Arab nationals, need a valid passport and visa. Visitors must register at the nearest police station within three days of arrival to avoid problems either during their stay or when departing. In 2003, Libya had 957,896 foreign visitors. Of these visitors, 44% came from Egypt. There were 12,405 hotel rooms with 20,967 beds and an occupancy rate of 45%.

According to the US Department of State, the 2005 estimated cost of staying in Tripoli was $344.

FAMOUS LIBYANS

As Roman emperor, Septimius Severus (r.193–211) was responsible for initiating an extensive building program at his native Leptis Magna. Muhammad bin 'Ali as-Sanusi (1780?–1859), the founder of the Sanusi order, established its headquarters in Cyrenaica in the 1840s. Muhammad Idris al-Mahdi as-Sanusi (1890–1983), his descendant, was Libya's first king, ruling the country from its independence until he was deposed in 1969. Col. Mu'ammar Muhammad al-Qadhafi (b.1942) became the actual ruler of the country at that time. Omar al-Muntasser (1939–2001) became secretary-general of the General People's Committee in 1987.

DEPENDENCIES

Libya has no territories or colonies.

BIBLIOGRAPHY

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