LIBYA

Socialist People's Libyan Arab Jamahiriya
Al-Jamahiriyah al-'Arabiyah al-Libiyah ash-Sha'biyah al-Ishtirakiyah

COUNTRY OVERVIEW

LOCATION AND SIZE.

Libya is a North African country, which shares a border with the Mediterranean Sea to the north, Egypt and Sudan to the east, Niger, Chad and Sudan to the south, and Algeria and Tunisia to the west. With 1,759,540 square kilometers of area (679,358 square miles), it is slightly larger than the State of Alaska. The length of its land border and its coastline is 4,383 kilometers (2,723 miles), and 1,770 kilometers (1,099 miles), respectively. With the exception of Sabha, located in the south, all its major cities—including the capital city of Tripoli—are along its coastline.

POPULATION.

Libya's population of roughly 5,115,450 (est. July 2000) has seen an annual growth rate of 3.5 percent since 1975, when it was 2,400,000. With a predicated annual growth rate of 2.1 percent, the population will reach 7,600,000 in 2015. In 2000, the birth and death rates were 27.68 births per 1,000 population, and 3.51 deaths per 1,000 population, respectively.

The Arabic-speaking Berbers and Arabs constitute 97 percent of Libya's population. Greeks, Maltese, Italians, Egyptians, Pakistanis, Turks, Indians, and Tunisians are the significant minority groups.

The Libyan population is relatively young, with 64 percent of the population between the ages of 15 and 64. Only 4 percent of Libyans are over the age of 64. (In contrast, almost 13 percent of the population in the United States is over the age of 64.) In 1998, 86.8 percent of the population was living in urban areas, particularly in Tripoli and Benghazi; this percentage marks a significant growth in urban population since 1975, when it accounted for 60.9 percent of the population. Urban dwellers will constitute roughly 90 percent of the population by 2015.

OVERVIEW OF ECONOMY

After about 5 centuries of colonization by the Ottoman Empire, Italy, Britain, and France, Libya became an independent monarchy in 1951. In 1969, Colonel Muammar Qadhafi staged a coup (an internal military uprising against a government) and established a republic. During its first decade, the new regime nationalized all foreign businesses and weakened the private sector through nationalization, confiscation, and "spontaneous" seizures of private factories by workers. The private sector was confined to retail trade, but the shortage of investments in the late 1980s forced the Libyan government to ease laws restricting its activities. Nevertheless, the private sector is still limited to small-scale activities in agriculture, retail trade, and manufacturing. Various legal and practical restrictions have prevented its rapid expansion, including the absence of respect for private property reflected in the periodic arrest of merchants and shopkeepers, and confiscation of their businesses.

Libya has a single-product economy, which survives on exports of hydrocarbons (oil, gas, and their refined products), accounting for 94 percent of exports in 1998. Thanks to these exports, since the 1960s Libya has had trade surpluses and a small foreign debt (US$3.9 billion in 1999) compared to its foreign exchange reserves (US$7.28 billion in 1999). However, the economy is highly vulnerable to fluctuations in oil prices, which directly affect government revenues. The Libyan government has been successful to a great extent in creating an infrastructure , but it has failed to establish viable industry, agriculture, and service sectors. In particular, it has failed to diversify the economy through establishing desired heavy industries. As a result, the Libyan economy is still an oil-based economy.

Internal and external factors have prevented the economic growth of Libya. Inconsistent planning, frequent changes in government economic policies, and the government's weakening of the private sector have been the major internal factors. External factors include periodic low oil prices, which have deprived the Libyan government of financial means needed to implement fully its development plans. In addition, the imposition of American sanctions in the late 1970s, 1980s, and 1990s on Libya for its alleged involvement in terrorism has limited Libya's income and its access to foreign technology and investment. Additionally, the UN-imposed sanctions on Libya in the 1990s over Libya's refusal to hand over for trial 2 Libyan suspects implicated in the 1988 bombing of a Pan American jetliner further worsened its economic situation. Libya's improving relations with Europe following the suspension of UN sanctions in 1999, and high oil prices have eased pressure on its economy as reflected in a jump from a 2 percent growth rate in 1998 to 5.4 percent in 1999, and to an estimated 6.5 percent in 2000.

POLITICS, GOVERNMENT, AND TAXATION

As explained in his manifesto The Green Book, published in the 1970s, Colonel Qadhafi's ideology has shaped the Libyan political system and economy since 1969. As an "alternative" to capitalism and Marxism , this ideology draws on Arab nationalism and Islam, but its economic program is primarily socialist . Accordingly, the state controls the economy, and the private sector assumes a negligible role. The situation has remained the same despite the relaxation of some restrictions on the private sector.

Libya has a peculiar political system known as the Jamahiriya or the "republic of the masses." In theory, this means that the Libyans rule their country directly through a series of popular entities that function as local governments, which are called Basic People's Congresses (BPCs). Each BPC chooses a secretary to represent it in Libya's highest legislative organ, the General People's Congress (GPC). The GPC chooses "the secretaries of the secretariat," (cabinet ministers) who form the cabinet called the General People's Committee, and also the head of the Committee, who presides over the cabinet as the prime minister.

The system has undergone changes in form, but the theoretical concept of running the country through popular entities has been kept. In 1992, Colonel Qadhafi divided Libya into 1,500 mahallat (communes or neighborhoods) and granted each of them its own budget as well as executive and legislative powers. As part of his decentralization policy, in 2000 he transferred most central government executive functions excluding its defense, trade, social security, health, education, and infrastructure to 26 municipal councils represented in the GPC.

Having the title of "Brother Leader and Guide of the Revolution," Colonel Qadhafi does not hold any official government position. Theoretically, he has no power and defers to the GPC. However, in practice, the GPC is a rubber stamp for the colonel, who appoints all influential figures and ensures the docility of all security and political organs through the revolutionary committees (associations of pro-Qadhafi young men led by the colonel's appointees). They function as a political police force with the power of arrest and summary execution, although their power has been curtailed to some extent since the late 1980s to appease the growing popular dissatisfaction with their abuses. Since mid-1996, the newly formed "purification committees" have also operated on Colonel Qadhafi's behalf to combat corruption and black-market activities. In short, Libya is run by Qadhafi and a small circle of his close allies.

There is no legal opposition group inside the country with an alternative economic view or with any impact on the economy whatsoever. The government has suppressed various secular and religious political groups and turned them into ineffective political forces based mainly in exile. They include the National Front for the Salvation of Libya, the Militant Islamic Group, and the Libyan Martyrs' Movement.

Fossil-energy exports have been the major contributor to government revenues since the 1960s, accounting for more than 70 percent of these revenues. The Libyan government has failed to reduce its heavy reliance on such exports by increasing its revenue from taxes due to the limited tax base and insignificant private sector activities. In absence of such activities, salaried government employees are the main tax payers, although they make little income that can be taxed. Heavy dependency on energy exports affects government revenues, since world oil prices tend to fluctuate. Due to this vulnerability on energy prices, the Libyan government makes every effort to balance its budgets and avoid deficit spending. While accurate budget figures are difficult to obtain from a relatively closed society, it is estimated that in 1999, government revenues roughly equaled expenditures of US$10.88 billion, of which the share of exports was over US$7 billion.

INFRASTRUCTURE, POWER, AND COMMUNICATIONS

Libya has a good infrastructure thanks to its development projects since the 1970s. Its fossil-fuel generators produced electricity at the rate of 16.92 billion kilowatt hours (kWh) in 1998, which was well above consumption (15.736 billion kWh in 1998). There are large-scale plans for their expansion—which will prepare Libya for increasing consumption—valued at about US$6 billion.

Libya's land communication system is confined to an extensive road network estimated at 83,200 kilometers (51,700 miles) in 1996 of which 47,590 kilometers (29,572 miles) are paved. They provide adequate access to most of its major rural and urban areas. There is no train service, but there are plans for building north-south and east-west railway lines.

Sea and air connections are facilitated through several ports and airports. Major ports include Tripoli, Benghazi, Marsa el-Brega, Minsurat and El-Sider (Sidra), and 3 new ports are under construction. There are also 5 major oil terminals at Zuetina, Ras Lanuf, Marsa el-Hariga, Marsa el-Brega, and El-Sider. Libya has 59 airports with paved runways and 83 with unpaved runways. UN sanctions stopped international flights to and from Libya, and lack of spare parts caused by other sanctions grounded about 80 percent of its civilian air fleet in the 1990s. The 1999 suspension of UN sanctions paved the way for the resumption of international flights and for purchasing new aircraft and modernizing the airports.

The state-owned General Post and Telecommunications Company (GPTC) dominates the Libyan telecommunications system. It provides fixed telephone services; a private company (El Mada) in which the GPTC has a 20 percent stake provides cellular telephone services. There are at least 318,000 fixed telephone lines (1995 est.) and 20,000 cellular telephones (2000 est.) in use.

All Libyan radio and television programs are state-run. There were 24 AM, FM and short wave radio programs, and 12 television programs in the late 1990s, but many people in urban areas had access to satellite television programs. There were also 1.35 million radios and 730,000 televisions in use. Internet access is provided by the GPTC.

ECONOMIC SECTORS

After a decade of growth in the 1970s, the state-dominated Libyan economy has suffered from over 2 decades of sanctions. Additionally, the practical exclusion of the private sector from major economic activities has limited the growth and diversification of the 3 economic sectors. Agriculture is the smallest sector with limited farming activities and underdeveloped fisheries; it is unable to feed the population. Industry is the largest sector, almost exclusively because of the large hydrocarbon industry. Oil exports make industry the largest contributor to the economy, and fluctuations in oil prices expand and contract both the sector and the entire economy. The service sector is not underdeveloped, but lacks viable tourist and retail industries. Financial services and transportation, however, make service a significant part of the economy.

AGRICULTURE

Libya has sought to expand its agriculture since the early 1970s. Its success in this regard has been limited despite heavy investments that equaled 30 percent of government expenditures in the 1970s. For example, production of cereals in 1998 (207,000 metric tons) met only 15 percent of the country's needs. Therefore, Libya has remained dependent on large agricultural imports, estimated at about 75 percent of its annual needs.

Libyan agriculture is a small contributor to the work-force (about 17 percent), and to GDP (about 5.6 percent in 1997). Major barriers to its growth are limited arable land (1.7 percent of Libya's area) and water resources, over-use of arable land and fertilizers, and a shortage of labor. Apart from a limited production of barley and wheat, major agricultural products are mostly fruits and vegetables such as dates, almonds, grapes, citrus fruits, watermelon, olives, and tomatoes, which constitute about 80 percent of annual agricultural production. Agricultural activities take place mainly along the coastline. Inland farming is very limited because of water shortages. Rapid urbanization has resulted in a severe shortage of agricultural workers, forcing Libya to rely on foreign farm laborers.

Libya's animal husbandry has suffered from the sanctions, limiting imports of animal feed on which it depends heavily. For example, the production of beef and veal dropped from 22,100 metric tons in 1994 to 2,100 metric tons in 1998.

The low annual catch (34,500 metric tons in 1997) demonstrates the underdeveloped nature of Libya's fisheries, despite the richness of its waters in exportable fish (e.g., tuna and sardines). Low investments in fishing boats, ports, and processing facilities are major obstacles to its growth. The country has 1 major fishing port (Zlitan), 1 tuna plant, and 2 sardine factories with small processing capacities (1,000 metric tons per year each). Libya is planning to build 24 fishing ports in addition to the one under construction at Marsa Zuaga.

INDUSTRY

While its share of GDP is only 52.8 percent (est. 1994), industry is by far the most important segment of Libya's economy, since it encompasses the oil industry, which is vital to the country's economic survival.

OIL.

As the main export item, oil dominates Libya's mining industry. Estimated at 29.5 billion barrels in 1998, Libya's oil reserves ensure exports until 2053 at the 1999 export level of 1,137,000 barrels per day (b/d). The Libyan government owns 5 oil refineries in Libya as well as a network of oil refineries in Italy, Switzerland, and Germany in partnership with European oil companies.

Libya's oil production has decreased significantly since the 1970s. In 1975, the Libyans reduced their production from 3.32 million b/d to 1.48 million b/d, for fear of drying up their resources. Managerial problems, OPEC quotas, and sanction-created shortages of spare parts and investments have further lowered production. Sanctions have also resulted in a decrease or stoppage in production of certain oil products (e.g., gasoline), which then had to be imported. American sanctions are still in force, but the 1999 suspension of UN sanctions opened the way for Europe's involvement in Libya's oil industry.

MINING.

With estimated gas reserves of 1.5 trillion cubic meters, Libya is also rich in natural gas, but most of its reserves are undeveloped. The Libyan government has tried to develop them to increase the life of its oil reserves by replacing oil with gas for domestic consumption, and also to increase its gas exports. Development projects include 2 gas pipelines to connect 4 new gas-powered electricity generators to the national grid, and a US$5.5 billion project with Italy for the development of onshore and offshore gas reserves and the construction of an undersea pipeline to export gas to Italy. On average, 20 to 25 percent of annual gas production (6.4 billion cubic meters in 1998) is exported mainly to Italy and Spain.

Iron ore and salt are other major resources that play a role in Libya's economy. The iron ore resources are estimated at 700 million metric tons and are located in southern Libya far from its iron and steel complex. Their development has been delayed due to the absence of financing for building the required rail link. Libya's salt mines—located mainly around Tripoli and Benghazi—produce 30,000 metric tons annually. There is also a limited extraction of construction materials (e.g., limestone, clay, and stone).

MANUFACTURING.

Libya's manufacturing industry is not well-developed. Ambitious projects in heavy industries (e.g., aluminum and fertilizer complexes) have been partially realized at best, as various sanctions have limited funds, denied foreign investments, and severely restricted transfer of technology and sale of required equipment. Manufacturing establishments suffer from a shortage of spare parts and poor maintenance, which lower their production. The current share of this industry of GDP must be well below its 1994 share of about 10 percent.

Besides a few joint ventures (mainly with Italy), most manufacturing establishments are Libyan. They are mostly small- and medium-sized factories producing light and consumer goods (e.g., foodstuffs, wood, paper, textiles, and VCRs). The limited heavy industries include an iron and steel complex, a petrochemical complex, and a pharmaceuticals plant. Libya produces about 3,000 cars a year, and assembles trucks in joint venture with Italy. The manufacturing products are far short of domestic demand, making Libya very dependent on imports.

CONSTRUCTION.

Thanks to extensive hydrocarbon supplies and water projects, construction is a major industry. Two long-term major projects are the construction of the Great Man-Made River to transfer water from Libya's southern water resources to its major urban and farming areas in the north. It has received an average of 10 percent of government annual expenditures since 1984. Another project is a large gas development and pipeline construction with Italy. There have been modernization projects in major cities including Tripoli since the suspension of UN sanctions.

SERVICES

Services form a growing economic sector, which accounted for about 40 percent of GDP in 1994. Given the suspension of the UN air embargo against Libya in 1999, the expected growth in tourism in the first decade of the 21st century should strengthen the role of this sector in the Libyan economy.

FINANCIAL SERVICES.

The Libyan government controls the financial system, including banking, insurance, and investment activities. In 1970, it nationalized all financial institutions, but economic problems forced it to allow the operation of private banks in 1993. With one exception in Misurata, no private bank has been established yet. Nor is there any foreign bank, excluding the Arab Banking Corporation, a Baharini bank partly owned by Libya. The banking system consists of the Central Bank of Libya and 8 major banks: the Agriculture Bank, the Jamahiriya Bank, the National Commercial Bank, the Savings and Real Estate Investment Bank, the Umma Bank, the Wahda bank, the Sahara Bank, and the Libyan Arab Foreign Bank. The last 2 are among the top 1,000 banks of the world. State-run companies provide insurance and business services. The Libyan finance ministry conducts foreign investments through the Libyan Arab Foreign Investment Company, which has invested US$500 million in 45 countries.

TOURISM.

Libya has an underdeveloped tourist industry, although it has the potential to grow. As a Mediterranean country with long warm beaches and historic sites, Libya could attract many Europeans who currently vacation on the inexpensive warm coastlines of Libya's North African neighbors Egypt and Tunisia. The industry, however, lacks an adequate infrastructure such as hotels. Furthermore, the sanction-related fall of tourism has turned many Libyan beaches into garbage dumps. Anticipating an upsurge in the tourist trade in the wake of the lifting of UN sanctions, a tourist center, including a large hotel and entertainment facilities, is being built in Tripoli.

TRANSPORTATION.

The Libyan transportation industry is significant, but has suffered a great deal from sanctions. Its merchant fleet consists of 27 vessels and is oriented towards oil and gas exports. Libya's civilian air fleet, under-utilized from the sanctions, will be expanded by the purchase of 24 Airbuses as part of a government plan announced in 2000.

INTERNATIONAL TRADE

Libya's international trade has been characterized by a positive balance since the 1960s. One estimate put its 1999 balance as US$7.01 billion in exports, and US$4.21 billion in imports, creating a trade surplus of US$2.79 billion, according to the Economist Intelligence Unit. Oil and gas and their refined products accounted for about 95 percent of Libya's exports in 1999. Its major imports are food, capital goods , transport equipment, and iron and steel products.

Libya has reduced its trade with the ex-socialist countries since 1991, while expanding trade with North African and Western countries. The suspension of UN sanctions removed barriers to trade with most Western countries. Italy, Germany, Spain, Turkey, France, Sudan, the UK, and Tunisia have been the major destinations of exports for Libya since 1990. With 40.1 percent, 17.8 percent, and 11.3 percent share of exports, the first 3 countries were the largest destinations in 1998. In that year, Italy, Germany, the UK, France, Tunisia, Belgium, Luxembourg, Spain, and Japan were the major exporters to Libya. The first 3 were the largest exporters in 1998 with 22.9 percent, 12.2 percent, and 9.1 percent share of exports, respectively.

MONEY

To ensure the stability of its currency, the Libyan government pegged the Libyan dinar (LD) to the U.S. dollar at a fixed exchange rate in 1973. In 1986 it switched to a new system: pegging the dinar to an SDR (special drawing right) at a fixed rate. The SDR is an artificial "basket" of 5 currencies selected and used by the International Monetary Fund for internal accounting purposes. The SDR method allows greater flexibility in stabilizing the value of the dinar as world economic conditions change.

There is a significant difference between official exchange rates and those of the black market. In 1996, the black market rate for the U.S. dollar was 10 times as much as the official one. The government has sought to narrow the gap between the 2 rates by selling dollars to push the black market rate down. This policy showed some success in 1999 when that rate dropped to 3 times the official rate (LD 0.45 = US$1).

There are currency restrictions for Libyans and foreigners. Libyans travelling abroad may purchase a certain amount of currency (about US$6,000 in 2000) while foreigners entering Libya have to declare their currencies and leave the country with no more than the declared amount.

In absence of reliable statistics on fluctuations of price changes, it is difficult to determine inflation rates in Libya. The existing rates for the second half of the 1990s are therefore estimates. The inflation rate was estimated at 18 percent in 1999, a significant decrease from the average annual rate of 28.5 percent for the period 1995 to 1998. A major reason for such high rates is the heavy government subsidies for domestic foodstuffs, which it has kept despite their huge cost for an economy heavily dependent on large food imports. Scarcity of many consumer goods provoked rising prices, which further worsened inflation . Economic sanctions, with their limiting effects on trade, and the closure of many retail stores in the second half of the 1990s as part of a government crackdown on the black market, were 2 major

contributing factors. The suspension of UN sanctions in 1999 improved the availability of consumer goods and paved the way for a higher oil-and natural gas-generated income as European oil companies began to return to Libya. These factors, and lower spending by the Libyan government, helped reduce the inflation rate to 18 percent in 1999. Various government subsidies (e.g., free education and medical services and low-priced foodstuffs) helped the Libyans cope with the impact of Libya's high inflation rates without a sharp decline in their living standards.

POVERTY AND WEALTH

The living standards of Libyans have improved significantly since the 1970s, ranking the country among the highest in Africa. Urbanization, developmental projects, and high oil revenues have enabled the Libyan government to elevate its people's living standards. The social and economic status of women and children has particularly improved. Various subsidized or free services (health, education, housing, and basic foodstuffs) have ensured basic necessities. The low percentage of people without access to safe water (3 percent), health services (0 percent) and sanitation (2 percent), and a relatively high life expectancy (70.2 years) in 1998 indicate the improved living standards. Adequate health care and subsidized foodstuffs have sharply reduced infant mortality, from 105 per 1,000 live births in 1970 to 20 per 1,000 live births in 1998. The government also subsidizes education, which is compulsory and free between the ages of 6 and 15. The expansion of educational facilities has elevated the literacy rate (78.1 in 1998). There are universities in Tripoli, Benghazi, Marsa el-Brega, Misurata, Sebha, and Tobruq. Despite its successes, the educational system has failed to train adequate numbers of professionals, resulting in Libya's dependency on foreign teachers, doctors, and scientists.

Many direct and indirect subsidies and free services have helped raise the economic status of low-income families, a policy which has prevented extreme poverty. As part of its socialist model of economic development,

the Libyan government has weakened the private sector and confined it to mainly small-scale businesses. While this policy has damaged the Libyan economy significantly, it has also prevented the accumulation of wealth by a small percentage of the population. While the ruling elite (i.e., top civil servants, military officers, and politicians), enjoys much higher living standards compared to average Libyans, and corruption exists within its ranks, Libya is not a highly polarized society divided between extremes of wealth and poverty.

WORKING CONDITIONS

The Libyan labor law provides for wages and pensions, but prohibits independent trade unions. The government-created National Trade Unions' Federation is the only legal workers' organization. The labor law does not provide for the right to strike, but Qadhafi has confirmed its existence. Collective bargaining is not allowed, since the government must approve all labor agreements. The minimum age of labor is 18, the maximum work week is 48 hours, and the average monthly wage is roughly 270 dinars. At the official exchange rate, this works out to roughly US$750 a month, but is only US$100 at the unofficial (and more realistic) rate. The labor law provides for the equality of women with men, but traditional social restrictions on women's activities outside the home limit the practical effects of the law, and therefore create barriers to full participation of women in the workforce. Foreign workers may be denied rights provided for Libyan workers, and there are restrictions on their repatriation of income.

Libya's workforce is about 1.2 million strong as estimated in 1997. There are also 1 to 2 million foreign workers. The majority of the workforce are government employees. Unemployment was estimated at about 30 percent in 2000. The high unemployment rate is the result of years of sanctions as well as Qadhafi's efforts at preventing the emergence of a viable and growing private sector. Sanctions have been particularly effective in harming Libya's oil and gas exports, thus constraining economic security for many Libyans who directly or indirectly rely on these industries. Large infrastructure projects, financed by the government, also depend on export revenues. Thus, a decline in the activities of the oil and gas industries and large governmental projects has reduced employment opportunities, resulting in a large unemployment rate. This situation will likely change in the near future. In the aftermath of the 1999 suspension of UN sanctions, the growing interest of the European oil companies in the Libyan energy industry will increase its exports, which in turn will generate funds to be invested in the expansion of the industry and also in many other government projects. In short, the revival of the energy industry will surely help reduce unemployment in Libya.

COUNTRY HISTORY AND ECONOMIC DEVELOPMENT

643. The Arabs invade Libya and rule over it until the 1500s when the Ottoman Empire conquers it.

1911. Italy replaces the Ottoman Empire as the colonizer of Libya.

1945. Libya is divided between Britain and France at the end of World War II.

1951. Libya becomes independent, and King Idris establishes a monarchy.

1959. The first commercially viable oilfield is discovered at Zelten.

1960s. Libya emerges as a major oil-producing country.

1969. Colonel Muammar Qadhafi stages a coup and overthrows the monarchy.

1977. Libya was renamed as the Great Socialist People's Libyan Arab Jamahiriya. Inspired by Colonel Qadhafi, workers assume control of the private manufacturing sector.

1978. The United States imposes sanctions on Libya for its alleged state terrorism.

1982. The USA bans Libyan crude oil imports.

1992. The United Nations imposes sanctions on Libya for its refusal to hand over suspects implicated in the 1988 bombing of a Pan American airliner.

1993. UN sanctions expand to freeze Libyan financial assets abroad.

1996. The United States imposes secondary sanctions, the "Iran and Libya Sanctions Act," targeting non-American companies wishing to invest more than US$40 million a year in the Iranian and Libyan oil industries.

1999. UN sanctions are suspended as Libya, the United Kingdom, and the United States agree on the trial of the 2 suspects in the Netherlands.

FUTURE TRENDS

The suspension of UN sanctions in 1999 has paved the way for large foreign investments in the Libyan hydrocarbon industries, a necessity for its full operation, expansion, and modernization. The Italian oil companies have been eager to embark on major projects in Libya. Libya will likely further expand its economic ties with European countries in energy and non-energy areas, while American sanctions will exclude American businesses, including oil companies, from investment in that country. The expansion of the Libyan private sector will likely gain momentum, since the liberalization of Libya's centralized economy is a necessity for its development and diversification. In the absence of any significant opposition, there is no serious challenge to the Libyan political system and the authority of Colonel Qadhafi. For the foreseeable future, the Libyan political system led by Colonel Qadhafi will likely remain stable.

DEPENDENCIES

Libya has no territories or colonies.

BIBLIOGRAPHY

Economist Intelligence Unit (EIU). Country Risk Service Libya. London: EIU, 16 January 2001.

EIU. Country Profile: Libya, 2000-01. London: EIU, 2000.

EIU. Country Report: Libya. London: EIU, December 2000.

EIU. Country Report: Libya. London: EIU, February 2001.

Economic Research Institute. "Libya—Compensation and BenefitLegislation." http://www.erieri.com/codes/LIBYA.htm. Accessed June, 2001.

Gurney, Judith. Libya: The Political Economy of Oil. Oxford:Oxford University Press, 1996.

United Nations Development Program. Human Development Report 2000. New York: Oxford University Press, 2000.

United States Central Intelligence Agency. "The World Factbook 2000: Libya." http://www.odci.gov/cia/publications/factbook/geos/er.html. Accessed January 2001.

United States Department of State. "1999 Country Reports on Human Rights Practices-Libya." http://www.state.gov/www/global/human_rights/1999/eritrea.htm. Accessed January 2001.

—Dr.Hooman Peimani

CAPITAL:

Tripoli.

MONETARY UNIT:

Libyan dinar (LD). One Libyan dinar equals 1,000 dirhams. Coins come in denominations of 1, 5, 10, 20, 50, and 100 dirhams. Paper currency comes in denominations of .25, .50, 1, 5, and 10 dinars.

CHIEF EXPORTS:

Crude oil, refined petroleum products, and natural gas.

CHIEF IMPORTS:

Machinery, transport equipment, food, and manufactured goods.

GROSS DOMESTIC PRODUCT:

US$39.3 billion (purchasing power parity, 1999 est.).

BALANCE OF TRADE:

Exports: US$6.6 billion (1998 est.). Imports: US$7 billion (1998 est.).