ABSTRACT
Until recently the Libyan economy was clearly a deficient economy. Before the discovery and exportation of oil the prospects of economic and social development were discouraging to Libyans and foreigners alike (Higgins 1968). The country was classified as having one of the lowest standards of living in the world. The majority of the people led a simple life, dependent essentially on a subsistence level of food, clothing and housing. They had very limited knowledge of modern technology, about 90 per cent of the population being illiterate (Murabet 1964). More than 80 per cent depended for their livelihood on animal husbandry and agriculture, which were faced with extraordinary difficulties such as the inadequacy and unpredictability of rainfall, tribal ownership and tenure of land, lack of credit and primitive methods of production (Attiga 1973: 12).
