Libya is situated between Egypt and Algeria on the Mediterranean coast of north Africa, with Chad and Niger on its southern borders. Apart from the coastal strip and the mountains in the south, it is desert or semidesert. Libya's strategic position in north Africa and its abundant oil and gas resources made it an important trading partner for European states. It has for many years been politically marginalized by the West for its links with terrorist groups, but UN sanctions were suspended in 1999, when it handed over the two men suspected of the 1988 Lockerbie bombing.

Arabs and Berbers, split into many tribal groupings, form 95% of the population. They were artificially brought together when Libya was created in 1951 by the unification of three historic Ottoman provinces. The pro-Western monarchy then set up perpetuated the dominance of Cyrenaican tribes and the Sanusi religious order.

The 1969 revolution brought to the fore Arab nationalist Col. Muammar Gaddafi, who embodied the character and aspirations of the rural Sirtica tribes from Fazzan: fierce independence, deep Islamic convictions, belief in a communal lifestyle, and hatred for the urban rich. His revolution wiped out private enterprise and the middle class, banished European settlers and Jews, undermined the religious Muslim establishment, and imposed a form of popular democracy through the jamahiriyah (state of the masses). However, resentment of the regime grew as it became clear that power now lay mainly with the Sirtica tribes, especially Gaddafi's own clan, the Qadhadhfa.

Since the revolution, Libya has become a society where most are city dwellers. Jews have been invited to return as investors, and immigrants from sub-Saharan Africa have been drawn in to provide low-cost labor. However, clashes in 2000, in which 100 died, highlighted unresolved social issues.

Strengths

Oil and gas production. High investment in downstream industries – petrochemicals, refineries, fertilizers, and aluminum smelting.

Weaknesses

Single-resource economy subject to oil-market fluctuations. Most food is imported. Reliance on foreign labor. Lack of water for agriculture. History of international unreliability.

Profile

Western oil companies had close business ties with Libya until the imposition in 1992 of UN sanctions over the Lockerbie affair. In 1993, Gaddafi called for the program of privatization, authorized by the General People's Congress in late 1992, to be revived, but there have been few tangible results. An ambitious program of industrialization was launched in the 1970s. Gaddafi's most controversial economic project has been the Great Man-Made River. Started in 1984 and engineered by European and Korean companies, this scheme was designed to bring underground water from the Sahara to the coast, but the pipes are already corroding, with water leaking into the sand.

Executive power is exercised by the General People's Committee. The General People's Congress elects the head of state, the Leader of the Revolution.

Profile

In 1977, a new form of direct democracy was promulgated, through which some 2000 People's Congresses sought to involve every adult in policy-making. In theory, their wishes are carried out by popular committees. In practice, ultimate control rests with Col. Gaddafi and his collaborators, many of whom date from the 1969 revolution. In recent years some are thought to have been alienated from Gaddafi, including his deputy, Major Abdessalem Jalloud, who in 1994 was reportedly marginalized after expressing differences with him. In 1995, another of Gaddafi's close associates, Khoueldi Hamidi, a defense commander, was also said to have become disillusioned with Gaddafi. In 2000, Gaddafi embraced African unity – an unpopular concept among most Libyans, increasing Gaddafi's alienation from his fomer associates. He is now believed to rely on members of his own clan, particularly his five sons.

Main Political Issues

Repression

Political dissidents, including Islamist militants, have been violently suppressed. Libyan dissidents have been murdered abroad, allegedly by government agents. Political parties were banned in 1971, but opposition groups are active in Egypt and Sudan.

The regime's public image

In the past few years, the regime has made an effort to improve its image. Measures have included the freeing of some political prisoners, allowing exiles to visit the country, and permitting foreign travel.

Gaddafi has attempted to style himself as the champion of African integration and regional stability. He was a chief architect of the African Union and has played host to various peace negotiations in the trans-Saharan area. This transformation has also involved a less confrontational stance toward the West, dropping key policies which had left Libya internationally isolated in the past – support for various terrorist groups and strong opposition to Israel – and pursuing a crackdown on internal corruption. UN sanctions imposed in 1992 were eased, and relations with the UK were resumed in 1999. Gaddafi gave tacit approval to the US-led "war on terrorism" in 2001. However, Libya was still included by the USA in the "axis of evil."

The armed forces suffered a blow in 1987 with the loss of thousands of men and equipment worth $1.4 billion in the Chad civil war. The costly border war with Chad ended in 1994 with the return of the Aozou Strip to Chad. In 1989 the armed forces were replaced by "the Armed People." Conscription is selective, and can last up to two years. In addition, there is a People's Militia numbering 40,000. Attempts to depoliticize the army received a setback following confirmation of an abortive military coup in 1993. UN sanctions resulted in the concentration of military hardware that is outdated. Despite the suspension of the sanctions in 1999, fresh arms contracts would still be too controversial for most potential suppliers.

Libya's economy depends almost entirely on petroleum and natural gas resources. It has considerable crude oil reserves and is likely to remain an oil-exporting country well into the 21st century. Natural gas potential is more limited but, provided links are developed with other north African states, the future is assured. Libya also has reserves of iron ore, potassium, sulfur, magnesium, and gypsum. The Great Man-Made River project means that the area of irrigated land has grown, but 90% of Libya is desert. Animal husbandry is the basis of farming, but some cereal crops are grown, as well as dates, olives, and citrus fruits. Cement production is sufficient to meet national demand; it relies on local raw materials, but most other manufacturing inputs must be imported.

The UN Development Program has described Libya as more than 90% "wasteland." Both nature and man have conspired against the environment. Apart from two coastal strips – the Jafara Plain and the Al Jabal al-Akhdar in Cyrenaica – together with the Fazzan Oasis, most of Libya is desert. Much of the irrigated area is saline because of unwise use of naturally occurring water from artesian wells. Near Tripoli, seawater has penetrated the water table as far as 20 km (12 miles) inland.

The National Coast Road runs 1825 km (1135 miles) between the Tunisian and Egyptian borders, linking the principal urban centers. There are no railroads, but some are planned. Since sanctions were lifted in 1999, international airlines have resumed flights to Libya.

An adequate system of free primary health care exists except in remote areas, and there are two big hospitals, in Benghazi and Tripoli. However, hospitals lack equipment, and there is a shortage of medical supplies.

Some one million Libyans are in formal education. It is compulsory between the ages of six and 15, and rates of attendance are very high, but it varies in quality and can be rudimentary in rural areas. Secondary education, from the age of 15, lasts for three years. There are 13 universities, and institutes for vocational training. The literacy rate has more than doubled from a level of 39% in 1970.

Policing is often in the hands of gangs appointed by Gaddafi's lieutenants to root out student protestors and other dissidents. Hit squads allegedly operate abroad against Libyan exiles.

There is widespread poverty after years of import constraints; UN sanctions worsened the situation. Gaddafi refuses to use oil revenues for basic expenses, such as salaries – teachers earn about $1200 a year.

Libya possesses a rich Roman and Greek heritage, centered on the ancient Roman coastal towns of Labdah (Leptis Magna) and Sabratah near Tripoli, and Shahhat (Cyrene) further east. There are fine beaches at Tripoli. A $2–3 billion investment program launched in 2000 aims to attract thousands of visitors. Western tourists have begun to return since sanctions were lifted in 1999.

Italy occupied Libya and expelled the Turks in 1911. Britain and France agreed to a UN plan for an independent monarchy in 1951.

• 1969 King Idris deposed in coup by Revolutionary Command Council led by Colonel Gaddafi. Tripoli Charter sets up revolutionary alliance with Egypt and Sudan.
• 1970 UK and US military ordered out. Property belonging to Italians and Jews confiscated. Western oil company assets nationalized, a process completed in 1973.
• 1973 Libya forms abortive union with Egypt. Gaddafi launches Cultural Revolution. Libya occupies Aozou Strip in Chad.
• 1974 Libya forms union of Libya and Tunisia.
• 1977 Official name changed to the Great Socialist People's Libyan Arab Jamahiriyah.
• 1979 Members of Revolution Command Council replaced by elected officials. Gaddafi remains Leader of the Revolution.
• 1981 USA shoots down two Libyan aircraft over Gulf of Sirte.
• 1984 Gunman at Libyan embassy in London kills British policewoman; UK severs diplomatic relations with Libya (until 1999). Libya signs Oudja Accord with Morocco for an Arab Africa Federation.
• 1985 Libya expels 30,000 foreign workers. Tunisia cuts diplomatic links.
• 1986 US aircraft bomb Libya, killing 101 people and destroying Gaddafi's residence.
• 1988 Army and police abolished. Pan-Am airliner explodes over Lockerbie, Scotland; allegations of Libyan complicity.
• 1989 Arab Maghreb Union established with Algeria, Morocco, Mauritania, and Tunisia. Libya and Chad cease-fire in Aozou Strip.
• 1990 Libya expels Palestinian splinter group led by Abu Abbas.
• 1991 Opening of first branch of Great Man-Made River project.
• 1992–1993 UN sanctions imposed as Libya fails to hand over Lockerbie suspects; sanctions made stricter.
• 1994 Religious leaders obtain right to issue religious decrees (fatwas) for first time since 1969. Return of Aozou strip to Chad.
• 1996 US legislation imposes penalties on foreign companies investing in Libya's energy sector.
• 1999 Lockerbie suspects handed over for trial in the Netherlands under Scottish law; UN sanctions eased.
• 2001 Lockerbie trial verdict: one suspect convicted. Sanctions eased further.
• 2002 US–Libya talks aim to mend relations. Lockerbie bomber begins life sentence.