Economy


Libya was traditionally an agricultural country, although farming was restricted primarily to the coastal regions. Livestock raising was also important. The discovery of petroleum in the late 1950s effected a profound change in the economy: The gross domestic product increased from $1.5 billion in 1965 to $25.4 billion in 1985, and between 1965 and 1980 the economy grew at an annual average of 4.2 percent.
Declining petroleum revenues in the 1980s forced cutbacks in development programs, and per capita income declined by at least 25 percent, although gross domestic income was on the rise again in the 1990s. The estimated annual budget in the early 1990s included current revenues of $6.9 billion and current and capital expenditures of $8.6 billion.
Agriculture: Most of the arable land and pastureland of Libya is in Tripolitania. Cultivation in the eastern and southern regions is sporadic and dependent on rainfall. Some 11 percent of the working population was engaged in agriculture in 1990, but the output amounted to only about 7 percent of Libya’s yearly domestic product. Principal crops include tomatoes, wheat, potatoes, barley, citrus fruits, dates, and olives; in 2001 livestock included 5.1 million sheep, 2 million goats, 220,000 cattle, 72,000 camels, and 25 million poultry.
The Great Man-Made River project, a massive 25-year irrigation scheme expected to cost $25 billion, was begun in 1984. When completed, it will transport water from wells in southern Libya to the coast and irrigate about 75,000 hectares (about 185,000 acres) of land.
Fishing: Small quantities of tuna and sardines are caught in the coastal waters off Libya, and sponges are collected inshore. In 1997 the catch of marine fish totaled 32,849 metric tons.
Mining: Petroleum is the principal product of Libya and its main source of revenue. Production of crude petroleum in 1999 was 504 million barrels; the natural gas output amounted to 6.2 billion cu m (220 billion cu ft). Other minerals produced in significant quantities in Libya include marine salt and potash.
Manufacturing: Major manufactures of Libya include petroleum refinery products, petrochemicals, and construction materials; most consumer goods must be imported. Traditional handicrafts are of minor economic importance.
Energy: Libya produces 100 percent of its electricity in thermal facilities, which are concentrated in the Tripolitania region. In 1999 Libyan installations generated 19 billion kilowatt-hours of electricity.
Foreign Trade: Petroleum accounts for 95 percent of Libyan export trade; as oil prices declined, exports dropped from $21.9 billion in 1980 to $8.5 billion in 1993. Manufactured goods and food are chief imports. In 2000 exports totaled $13 billion, and imports, $4.7 billion. Principal trading partners for exports are Italy, Germany, Spain, France, Turkey, Greece, and Egypt; chief partners for imports are Italy, Germany, the United Kingdom, France, Spain, Turkey, and Tunisia.
Transportation: Good roads along the coast connect Tripoli with Tunis, Tunisia, and, through Banghāzī and Tobruk, with Alexandria, Egypt; another road connects Sabhā in the deep interior with the coastal roadway. In all, Libya has 83,200 km (51,698 mi) of roads. Libyan Arab Airlines provides both local and international flights. Several international airlines serve Tripoli and Banghāzī. In addition to port facilities at Tripoli, Banghāzī, and Tobruk, a new port was opened in Mişrātah (Misurata) in 1978.
Communications: The postal and telecommunications systems of Libya are government owned and operated. Radio communications link the interior with the coastal regions. In 1997 there were an estimated 259 radio receivers and 140 television sets for every 1,000 Libyans. Libya’s 4 daily newspapers, including Al-Fajr al-Jadid which is published in Tripoli, had a circulation of 71,000 in 1996.
IDevice Icon Activity

Lesson Review Questions

 

Recall


Recall
1. How does the wind carry particles of sand?
2. What is abrasion?
3. What are sand dunes? Where are they found?
4. Describe loess.
5. Identify two ways to reduce wind erosion.

Apply Concepts
6. Wind-blown snow forms drifts that are similar to sand dunes. Apply lesson concepts to infer how you could
reduce snowdrifts in a driveway.

Think Critically
7. Compare and contrast how the wind transports clay, sand, and pebbles.
8. Explain why a sand dune migrates.