ABSTRACT

This chapter analysis centers on economic developments after 1969; however, to set the stage for this discussion, it is first necessary to review the oil and gas policies of the monarchy. The analysis pays special attention to hydrocarbons as the economic foundation of contemporary Libya. It also explores the interplay of the economic, social, and political forces which have impacted on the repeated economic crises suffered by Libya over the last 45 years. In 1983, Libya began a massive development scheme, the Great Manmade River (GMR), which involved the transfer of water from underground aquifers in the southern desert to the coast for agricultural, industrial, and household use. The Libyan people are widely recognized as intelligent, hard-working, entrepreneurial and capable of the highest ethical standards. unfortunately, the Qaddafi regime seldom rewarded these virtues. On the contrary, advancement in Qaddafi's command economy more often than not depended on family, clan, and tribal ties or other forms of cronyism, nepotism, and patronage.