Since he took power in a 1969 military coup, Col. Muammar Abu Minyar al-QADHAFI has espoused his own political system - a combination of socialism and Islam - which he calls the Third International Theory. Viewing himself as a revolutionary leader, he used oil funds during the 1970s and 1980s to promote his ideology outside Libya, even supporting subversives and terrorists abroad to hasten the end of Marxism and capitalism. Libyan military adventures failed, e.g., the prolonged foray of Libyan troops into the Aozou Strip in northern Chad was finally repulsed in 1987. Libyan support for terrorism decreased after UN sanctions were imposed in 1992. Those sanctions were suspended in April 1999.

Economy - overview  The socialist-oriented economy depends primarily upon revenues from the oil sector, which contributes practically all export earnings and about one-quarter of GDP. These oil revenues and a small population give Libya one of the highest per capita GDPs in Africa, but little of this income flows down to the lower orders of society. In this statist society, import restrictions and inefficient resource allocations have led to periodic shortages of basic goods and foodstuffs. The nonoil manufacturing and construction sectors, which account for about 20% of GDP, have expanded from processing mostly agricultural products to include the production of petrochemicals, iron, steel, and aluminum. Climatic conditions and poor soils severely limit farm output, and Libya imports about 75% of its food requirements. Higher oil prices in 1999 led to an increase in export revenues and helped to stimulate the economy. Following the suspension of UN sanctions in 1999, Libya has been trying to increase its attractiveness to foreign investors, and several foreign companies have visited in search of contracts.

GDP  purchasing power parity - $39.3 billion (1999 est.)

GDP - real growth rate  2% (1999 est.)

GDP - per capita  purchasing power parity - $7,900 (1999 est.)

GDP - composition by sector  agriculture:7%

industry:47%

services:46% (1997 est.)

Population below poverty line  NA%

Household income or consumption by percentage share  lowest 10%:NA%

highest 10%:NA%

Inflation rate (consumer prices)  18% (1999 est.)

Labor force  1.2 million (1997 est.)

Labor force - by occupation  services and government 54%, industry 29%, agriculture 17% (1997 est.)

Unemployment rate  30% (1998 est.)

Budget  revenues:$3.6 billion

expenditures:$5.1 billion, including capital expenditures of $NA (1998 est.)

Industries  petroleum, food processing, textiles, handicrafts, cement

Industrial production growth rate  NA%

Electricity - production  16.92 billion kWh (1998)

Electricity - production by source  fossil fuel:100%

hydro:0%

nuclear:0%

other:0% (1998)

Electricity - consumption  15.736 billion kWh (1998)

Electricity - exports  0 kWh (1998)

Electricity - imports  0 kWh (1998)

Agriculture - products  wheat, barley, olives, dates, citrus, vegetables, peanuts; beef, eggs

Exports  $6.6 billion (f.o.b., 1998 est.)

Exports - commodities  crude oil, refined petroleum products, natural gas

Exports - partners  Italy 40%, Germany 17%, Spain 12%, France 4%, Sudan 4%, UK 3% (1997)

Imports  $7 billion (f.o.b., 1998 est.)

Imports - commodities  machinery, transport equipment, food, manufactured goods

Imports - partners  Italy 23%, Germany 12%, UK 9%, France 7%, Tunisia 5%, Belgium 4% (1997)

Debt - external  $4 billion (1998 est.)

Economic aid - recipient  $8.4 million (1995)

Currency  1 Libyan dinar (LD) = 1,000 dirhams

Exchange rates  Libyan dinars (LD) per US$1 - 0.4687 (January 2000), 0.4616 (1999), 0.3785 (1998), 0.3891 (1997), 0.3651 (1996), 0.3532 (1995); official rate: 0.45 (December 1998)