ABSTRACT
An understanding of the impact of the various stages of history on contemporary Libya is crucial to a broader discussion of its economic, social, and political development. In common with most states, the historical development of Libya combined continuity and change with continuity dominating some periods and change the predominant theme of others. The Arab invasions, which began in the seventh century and were reinforced by the Hilalian migration in the eleventh century, marked Libya with a distinctive Arab-Islamic character. The Libyan proclamation of statehood coincided with the rise of Arab nationalism in the Middle East, and the monarchy rightly viewed Arabism as inimical to its interests and tried to contain its influence in the kingdom. Libyan economic policy for the foreseeable future is likely to combine a strong government role in reconstruction efforts and social welfare services with an increasing emphasis on market-oriented reforms elsewhere in the economy.
