Much of the income from petroleum was used to improve the cities, to modernize transportation, and to build up the military. The resulting migration of Libyans to urban areas created a growth in unemployment, spurring the government to invest in agricultural development in order to make farming more attractive. Although petroleum production has dropped since the 1970s, oil exports continue to generate a substantial percentage of the country's GDP. Libya is also a major exporter of natural gas and has several large gas liquefication plants.

Though oil is Libya’s largest industry and accounts for much of the country’s GDP, gypsum, salt, limestone, petrochemicals, food processing, textiles, construction materials, carpets, leather, handicrafts, iron, steel, aluminum, cement, tuna, and sardines are all produced in significant quantities. Agriculture is Libya's most important non-oil sector of the economy. Most of the agricultural activity takes place in the coastal regions, though crops are also grown at the larger oases and in the highlands of Jebel Nefusa. Libya's main crops are olives, dates, figs, almonds, citrus fruits, wheat, and barley. The livestock is mainly sheep, goats, cattle, and chickens while camels are important assets in the desert region

Libya's main concern in recent years has been the Great Man-made River Project, the world's largest civil engineering scheme. This huge project which began in 1984 (which will take twenty-five years to complete) will bring water from underground natural reservoirs in the south to the desert's edge in the north and to the towns and villages along the route. The project will provide water for irrigation schemes which will greatly increase the amount of land under cultivation. Visit the Great Man Made Website :: www.gmmrwua.com for more information

Libyan officials in the past four years have made progress on economic reforms as part of a broader campaign to reintegrate the country into the international fold. This effort picked up steam after UN sanctions were lifted in September 2003. Almost all US unilateral sanctions against Libya were removed in April 2004, helping Libya attract more foreign direct investment. Libya faces a long road ahead in liberalizing the economy but initial steps - including applying for WTO membership, reducing some subsidies, and announcing plans for privatization - are laying the groundwork for a transition to a more market-based economy.

Libya is embarking on a new era of world relations and is opening up to foreign investment, but finds itself in a position where it has to undo a great deal of what was done during the “Great Revolution”. Indeed, it finds itself in need of a great deal of catching up in all aspects, but especially in the field of legal reform. Prior to its revolution, Libya had adopted a legal system based on the Egyptian civil law model. This was the order of the day for most Arab countries and these systems worked to create a secular legal system with a general Islamic flavor. In the 1970s, Libya adopted a new approach to government which had a great impact on its legal system. It changed its name to “Jamahiriya” [People’s Republic] and established what is referred to as the direct rule of the people through a system of pyramidal conferences.

The lowest level is a Basic People’s Congress and at the top of the pyramid the General People’s Congress (a parliament-like annual conference comprised of representatives and officials of Popular Committees, appointed by the Basic People’s Congresses and Municipal Congresses, and representatives of popular associations and trade unions).

This conferences system was based on the theory that every person of age regardless of gender should participate through direct consultation and consensus building otherwise known in Islamic jurisprudence as ‘Shura’. Each conference/congress at all levels has a committee – a mini government- and a secretariat. At the top of the pyramid of committees is the General People’s Committee (The Cabinet). The Cabinet does not enjoy the normal authorities a government would. It has the authority to recommend to and implement the decisions of General People’s Congress... read more