Economic Growth and Human Development in Libya

Azzaytuna University

Faculty of Arts and Science

Sociology Department

Economic Growth and Human Development in Libya

Abdala Mohamed Abdala. Ashhima

Abstract

This paper has focused on the economic growth and human development through the implementation some of strategies and programs that related to providing services to citizens in light of economic growth. In this study, I refer to some theories relating to some aspects of this study, especially the human capital theory in order to promote knowledge about the topic. Thus, the aim of study is focusing of, to what extent has succeeded the state in harnessing its potential in order to achieve its objectives which would be represented in achieving progress and welfare of individuals.

1. INTRUDECTION

This study examines the impact of the economic growth on the economic and social dimensions in Libya and its role in human development issues, structure and practice in Libya during a about 50-years period from 1960-2010. Plans-strategies development is the principal focus of this research as it is critical to know to what extent the people have benefited and participated in Libya’s socio-economic development process and thus position the people for participation in the human development. Accordingly, a literature review was conducted to provide a context for the exploration of the impacts of economic growth on the social lives of people in Libya. The review drew upon theoretical traditions, essays by informed experts and other research to build a logical framework for the proposed study and situate the study within a tradition of inquiry and a context of related studies. Thus, this study aimed to serve as a platform in identifying some aspects regarding with strategies and plans of socioeconomic development. These were considered, also, in terms of the development plans of the economy, which the government followed for several decades after the discovery of oil, their impact on economic and social aspects and their effects on social life. for example, it was possible that the increase in the enrolment of students and the expansion in establishment of schools during the last five decades might be attributed to not only the increased economic growth but, also, to the existence of the people’s strong desire for education. Despite the fact that over the last fifty years and, especially after the discovery of oil, most interest was focused on health and education, these sectors, through the socioeconomic development plans and in accordance with the numbers and the quantitative statistics, achieved huge developments due to the economic growth.

2. RESEARCH PROBLEM

The study problem is to investigate the effect of economic growth on human development, and to what extent economic growth has contributed in achieving human development in Libya, particularly in education and health. The study focuses on the importance of Libya’s plans and programs development and the government’s role in the development of these policies. Therefore, economic growth not only directly promotes growth but also indirectly does so via complementary reforms to achieving human development. This is done through discussion of the many issues related to human development and economic growth.

3. REVIEW THE LITERATURE.

There are some theoretical issues which would help in examining the topic and through which these ideas promote more understanding of the theoretical dimensions for this study. Clearly, in this part of study, I refer to some theories relating to some aspects of this paper, especially the human capital theory and social capital theory in order to promote knowledge about the topic. This paper focused on economic growth and human development through the implementation of policies and providing services to citizens in light of economic growth. Thus this would be a better investment if the state succeeded in harnessing its potential in order to achieve its objectives which would be represented in improving the social and economic conditions and the welfare of people.

3.1 Theoretical dimensions for human development and economic growth.

The policy of governments on such areas as health and welfare services and education and housing policies have a direct impact on the lives and the welfare of the citizens (Marshall (1965) in R. Titmuss (1974). In this respect, efforts to tackle inequalities in these aspects, for example, the health needs to focus on material and social determinants that lie beyond the scope of health care systems (Baum et al. (2009), Dorling (2010), Benach et al. (2011) in Mackenzie et al. 2012: 513). It can be stated that this situation applies to the health system in Libya in terms that it is not suffering only from low expenditure but, also, from other factors. For example, as shown by some literature such as a lack of planning which is evident in the health system and a sense that the citizens lack confidence in the health system and government policies in the improvement and development of this system. Also, promoting equality of opportunity for all the people in accessing education senses that people should not face barriers and everyone should have the same opportunities (Lister, 2010). However, in Libya as a whole and especially in urban centres and which was affected firstly due to increased urban population and the government’s lack in carrying out many of its policies and difficulty in obtaining services with the same quality. According to social control theory of social policy, the government failed to provide enough resources and programmes to meet increasing demand to people in urban areas; therefore, social policies failed to perform their functions adequately Higgins (1981). The cities suffered from crises in services such as housing, transportation, health, education. Thus, the urban crisis is due to several factors such as the impact of the structural and economic difficulties on the organization of the cities and on the evolution of social services.

According to Olaniyan and Okemakinde (2008), education is an important factor in developing the human resources necessary to achieve economic and social transformation through focusing on development of skills. Also, based upon the work of Schultz (1971), Sakamota and Powers (1995), Psacharopoulos and Woodhall (1997) and Olaniyan and Okemakinde (2008), Human Capital Theory rests on the assumption that formal education is highly instrumental in developing societies and, also, necessary in improving and increasing the production capacity for a population. Arguably, the government policy toward expansion of housing, transportation, education and health, whether in increasing the number of institutions and the pupils enrolled in schools or accessing health care, was aimed at achieving equality amongst individuals. The basic needs should be taken into account by all governments in achieving social development goals (Streeten et al. 1981). Also, important to such ideas was its role in making some International Organizations, like the International Labour Office, urge some governments to give top priority to meeting people’s basic needs such as water, food, shelter, health, education (Midgley, 2006:22).

In order to gain a better understanding of several aspects related to the development of individuals, this paper should consider the ideas of some researchers in Social Capital Theory. For example, according to Szreter and Woolcock (2004) in their ideas regarding of Social Capital and Social Theory being a matter of enhancing a population’s health, it cannot be achieved through material inputs alone or only through the ‘technological fixes’. It needs, also, additional aspects such as Human Expertise and attention which, too often, are neglected; thus, taking social capital seriously in the context of health promotion in all countries. In this context, in recent years, the government in Libya selected subsequently to emphasise the expansion of education to meet its manpower needs. So it is state investment which meets the needs of the state. Human capital theory according to some researchers has emphasized how education can increases the productivity and efficiency of workforce by increasing the level of cognitive stock of economically productive human capability which is a product of innate abilities and investment in human beings. Thus, the provision of formal education is seen as a productive investment in human capital, as that the proponents of the theory have considered as equally or even more equally worthwhile than that of physical capital (Olaniyan and Okemakinde, 2008:158).

3.2Education and skills development.

Among the difficulties which faced the government in carrying out its policies a matter of quality of education outcomes, especially for those working in education and health sectors. The relationship between outcomes of education and the labour market in Libya based on Human Capital Theory, there was no support and encouragement by government for skills from graduated the vocational institutes in Libya, thus this situation led to low quality of education in these stages (Musmari, 2002). Consequently, it is state investment which meets the needs of both the people and the country. According to Human Capital Theory, Schultz (1981) formulated his ideas in a basic assumption represented in investment in education, health, on-the-job training and obtaining information related to the job market as well as matter of migration. This was in addition to specialized vocational education at secondary and higher levels (Corazzini, 1967 in Sweetland, 1996). Therefore, Schultz indicated that main factor about these issues was the level of wages.

In this respect, ‘human capital theory’ and its applications related to some issues of this study. For example, the education structure in primary and secondary schools in Libya was based on the educational goals which represented giving people the opportunities to obtain education through compulsory education law and to cover the shortfall caused by a lack of skills in supporting development efforts and investment in different areas during the 1970s. However, the government stressed subsequently that the lack of appropriate skills in most of sectors, particularly education and health needs, led to the development of its policies. For instance, through the third development plan (1981 - 1985), the government initiated an educational new structure (the new educational structure) which focused on specialization and skill development to participate in capacity-building and achieve development. However, due to weak investment in education and training as referred to previously by Human Capital Theory, the government failed to implement most of the objectives of this educational policy. It failed, also, to complete the third development plan (1981-1985) on grounds of low oil prices and poor funding. This consisted of some assumptions which can be found in the Human Capital Theory. Based on Fagerlind and Saha (1997), Human Capital Theory provides a basic justification for large public expenditure on education both in developing and developed nations. Consequently, the question of the development society depends on skill development, particularly in educationand the success of government policies in attaining them, depends on the ability to invest and develop the skills of employees. Furthermore, types of human capital investment generally include health; in particular, education contributes to improvement in health (Schultz, 1963, in Sweetland, 1996).

Based on the Human Capital Theory, the extent of staff’s contribution in the success of policies and service delivery to citizens depends on role of the state in developing the skills of staff and providing them with incentives.   The basic premise of the Human Capital Theory was that investments made in educating the workforce and developing their skills led to progress in economic development and, thus, achievement in the development of different aspects of life (Nafukho, Hairston and Brooks, 2004). Therefore, application of the Human Capital Theory was useful and essential in supporting the social policy and, also, policymakers (Sweetland, 1996). In addition, Human Capital Theory, in light of the progress in use of technologies and different forms of knowledge development in all areas, has become the most important theory of socio-economic development. In this context, the Human Capital Theory suggests some issues related to a matter of reform in state institutions, which were conducted mostly in developing countries as is case in the reform process carried out by the government in many of societies in recent years due to the low level of services, particularly in education and health. Fitzsimons (1999:2) stated that: In terms of structural reform, under Human Capital Theory the basis for nation state structural policy frameworks is the enhancement of labour flexibility through regulatory reform in the labour market, as well as raising skill levels by additional investment in education, training and employment schemes, and immigration focused on attracting high- quality human capital. Consequently, this research examined and analysed these issues, which linked to different aspects such as the quality and availability of services and the availability of incentives and encouragements to staff to work and the other issues involved in this study.

4. ECONOMIC GROWTH AND ITS IMPACT ON THE SOCIAL LIVES.

After a few years of independence, the Libyan economy was dependent mainly on foreign aid and loans received from various western nations, especially from the British and American governments (Blackwell, 2003). Thus, Libya was dependent on America in carrying out a number of projects in some important fields such as health and education, electricity and water works (Higgins, 1953) in Omar, A and Ruddock, (2001)). Soon after the discovery of oil, there was an enormous expansion of most public services and, also, of infrastructure projects, and a corresponding rise in the economic standards. As a result of the discovery of oil in the early 1960s, Libya was transformed from one of the poorest countries in the world to one of the world’s top oil producers. (Bamburg, 2000 (in Blackwell, S., 2003:15) pointed out that "By 1970 Libya had become the fourth largest oil producing". So, oil revenues enabled the economy to grow during the 1960s. This period saw an increased demand for imports of agricultural and industrial products due to the growing demand since the importance of the agricultural sector in the local economy had diminished (Ghanem, 1987). According to Vandewalle (1986: 32) some sectors received particular attention such as health, housing, and education. Thus, the development strategy, during that period, was aimed at developing the economic and social aspects of society. The first studied plan in Libya was after the discovery of oil and began in 1963. The government announced the first five–year economic and social development plan (1963-68), with a total fund allocation of LD 169 million to be spent on the various sectors of the economy (Ghanem, 1987:59).This total was spent on the various sectors in order to achieve an acceptable standard of living and increase the level of per capita income to improve people’s social lives.

Table (1): Development Expenditure, 1963 – 69 (million Libyan dinars)

Years Sectors	1963	1964	1965	1966	1967	1968	1969	Total
Agriculture and animals	1.3	1.9	7.2	10.1	17.3	4.4	13.2	75.2
Industry and minerals	0.1	0.6	2.0	4.7	7.4	7.4	6.3	28.5
Electricity	1.7	2.9	3.7	8.5	14.1	16.8	11.8	56.8
Transport and communication	4.4	6.4	13.1	10.2	18.7	24.3	14.5	9.16
Housing and utilities	4.1	7.5	12.1	23.0	42.1	34.1	39.3	126.20
Local administration	-	-	2.9	9.9	6.8	14.6	12.1	46.30
Education	0.6	1.0	5.6	10.7	8.1	13.6	8.0	47.60
Public health	0.7	0.2	0.8	2.1	5.5	4.9	2.9	16.5
Labor and social offices	0.7	1.6	3.5	3.4	5.3	5.3	1.0	20.20
Information and culture	--	0.1	0.4	0.4	0.7	3.0	2.0	6.60
Economic and tourism	0.1	0.6	0.5	0.6	1.0	1.1	0.4	4.30
Planning	0.1	0.2	0.6	1.4	1.1	1.0	0.6	5.00
Total	1.26	23.0	52.4	82.3	128.1	140.5	112.1	551.00
Total allocation of funds in the plan	21. 7	32.5	87.0	90.8	105.0	143.3	145.0	625.30
Total income from oil	38.5	75.2	125.4	186.7	223.3	357.8	419.7	-

     Source:   Ministry of Planning,   National   1962- 1971 Tripoli. Kezeiri & Lawless (1987)

The investments, which were distributed in this period, escalated gradually in different sectors and especially so in the first years of the plan. The agricultural sector gained the highest rate of investment in 1967 and recorded the highest percentage increase in expenditure that year which reached £17.3 million. In the following year, the investment was £4.4 million pounds, and became dynamic again, as shown by its expenditure reaching £13.2 million in 1969. In this regard we saw, also, the housing and utilities sector grow at a rate of 42.1 million Libyan dinars in 1967. Nearly six years after starting the plan, 1968 witnessed a substantial growth in expenditure to different sectors, except agriculture. In particular, the housing and utilities sector gained the highest rate of expenditure totaling £162.20 million amongst the sectors. There was no doubt that the investments, which took place, had a significant impact on the country's development and policies to improve the living conditions of residents and reduced the level of poverty. However, by looking closely at the table, it is clear to us that the distribution of investments did not achieve an equitable distribution in spending.

It is clear that the economic growth due to oil revenue was reflected in the social lives of the different age groups in Libya following the implementation of the development plans in the middle 1960s. Policies were developed which aimed to achieve benefits and wellbeing for all the citizens such as education and health care becoming free for all people and an increase of social mobility due to the oil boom and economic activity especially in the cities increased and strengthened the urban flow (Harrison, 1967). Consequently, due to oil revenues, the economic growth contributed to the evolution of social conditions for people in the country, and led to some authors called for the government to achieve the changes to improve services. For example, Penrose (1961:460) pointed out that: that health education should reach every home, schools should emphasise understanding and not the mere learning of words, teachers should be carefully selected and well prepared, primary schools should educate the whole child, children should learn by doing.

Accordingly, a large number of people at the beginning of the economic growth period started to move to the urban centers. According to Vandewalle (2005), the traditional agricultural nature of Libya was eroded slowly due to increasing numbers of people leaving the rural areas in search of employment in the cities. In particular rural migrants flocked to Tripoli. It has assisted in the abundance of the financial resources of foreign exchange due to the oil boom of the 1960s and 1970s and helped to carry out the development plans to expand the services. In this context,Youssef (2005) stated that the main objective of the economic development plans was to diversify the local economy by seeking other sources of income rather than oil so that imports of capital goods and raw materials might play a crucial role in the economic development process and support the country’s economic development plans. Although the government has aimed through development plans to increase growth rates in different fields in order for diversity in sources of income and production, most of the development programmes have not achieved their aims due to the government never possessed a carefully integrated economic strategy (Vandewalle 2005). Many of its economic undertakings were not linked with one another. In this context, the government issued some laws to address the economic situation, in this regard, Law 8 for year 1988 which stipulated it as possible for individuals themselves or by participation with others to practice economic activities. (Sheibani & Harvard , 2005:703)

Thus, the government issued this law due to the failure of the public sector to carry out most of the developmental projects and plans and trying to integrate into the international community after the lifting of United Nations sanctions on Libya in the late 1980s. Generally, attempts to promote the private sector began at the end of the 1980s in the form of small companies (Charkiyat) to work alongside the public sector. However, this remained on a small-scale which did not lead to the creation of employment opportunities which remained within the public sector as result of the importance of oil revenues as the country’s primary source of income. During the last 14 years laws have been more flexible, allowing enterprises to operate alongside public companies, which have ignited some degree of competition in a market dominated by high demand and low supply (Thomas et al,2003: 15)

In this context, the Libyan economy suffered from some negative effects especially during the period of the sanctions which were imposed by the United Nations. According to United Nations (2006), this situation was reflected in other aspects such as a sharp drop in per capita income and an increase in unemployment as well as an inability of most sectors to compete in an open economy and a deterioration of infrastructure in light of the public sector’s domination of the country’s economic institutions. Also, another important issue was that, despite the development of health and education and health systems which were built in the 1960s and 1970s, these sectors continued to suffer from several difficulties. Clark(2004) attributed that to: Lack of qualified teachers and enrolments in vocational and technical training lagged. Both of these shortcomings have resulted in a reliance on foreign-born professionals to fill teaching posts, technical positions in many state industries and service sector jobs in fields such as health care.

In this context, Pargeter (2006) stated that the sanctions, which were imposed in 1992, did not include oil exports and, thus, did not hit the mainstay of the country's economy. Therefore, these were to impact on governmental policies of other aspects such as health and education especially with the increasing need for these services to play a larger role, particularly in respect of the quality of services provided to citizens.So, the sanctions have had a significant impact on plans developing social welfare provision, including health and education during the period of 1980s, and particularly 1990s. For example, according to Zoubir (2002), the air travel ban led to preventing those suffering from severe medical conditions of travel to get treatment abroad, in particular, those whose treatment was unavailable in Libyan hospitals; hence, they were not able to reach foreign health-care facilities in a timely manner. The next section reviews developments which occurred in aspects of Libya’s health and education and their repercussions on the social reality of the citizens.

4.1Economic growth and its impact on human development in health sector

The health situation in Libya was worse than the rest of the Arab countries because of the lack of health centers and doctors. In addition to that, the nature of the desert and the small number of people spread over different regions of the country’s vast area led to the spread of many diseases Amer (1998). Thus, according to Atter (1992), Libyan society had known hospitals and doctors over the last period of the Ottoman rule and under Italian control. This period saw the construction of a number of hospitals; the most important were the Central Hospital in Tripoli and Benghazi’s Central Hospital. In the late 1950s, there were a number of hospitals including the small ones and about twenty clinics scattered in major centers of population. According to Atter, in the 1950s, this resulted, also, in the prevalence of diseases. In 1959, the infant mortality rate was about 50% at a time when there were not more than two hundred doctors. At that time, people were exposed to diseases rapidly, not only in the country villages and small towns but, also, in the main cities such as Tripoli. For example, the health situation in Libya before the discovery of oil there is no lighting and Sanitation is inadequate, and there is no good water supply; health standards are low, and occasionally disease sweeps through the shantytowns (Harrison, 1967:420).

These indicators changed gradually as a result of the development of resources and attention to the development of health services. Consequently, the crude mortality rate decreased from 7.4 in 1975 to about 3.4 in 2007 (The Centre Documentation and Information, 2009). Obviously, one of the government’s main objectives, after the discovery of oil, was to improve the citizens’ health conditions. This was due to of the economic developments and political and social changes which arose from the development plans and programmes the country had witnessed especially in the 1960s and which increased in the 1970s. This sector obtained priority in a series of developments across the country within the framework of development plans and, in addition, subsequent programmes which continued until the beginning of the 1980s. As I have already stated the fact that Libya was a poor country up to the 1960s, the next five decades witnessed great changes within Libyan society. For the first time in Libya’s history, soon after the discovery of oil, the State implemented their policies to eradicate the worst aspects of poverty in the country.

Therefore, the government tried to play down the effects brought on by the lack of resources throughout the country by implementing social and economic development plans which played a main role in achieving the changes to different sectors. These plans lasted for more than 20 years from 1963 to 1985. As a result, these strategies led to several changes in society such as longer life expectancy and lower infant mortality and gave a larger number of people the chance to have an education. The nature of the policies and strategies, which governed the interaction and integration of all the sectors, required effective strategies to achieve results at different levels. For example, in accordance with the plan of economic and social transformation (1970 –1981), in addition to what was achieved in improving health services and education, these strategies achieved a significant improvement in the individual’s standard of living through a higher per capita income. The aim was to improve cultural, social, transport and communication services and create and multiply some kind of convergence in living standards amongst the members of the community and between different regions.

According to Haines (2000), it could be argued that the basic needs approach to development policy began in the end of 1970sand also increased focusing of basic services such as education, health. The research for mechanisms of achieving social development led to many of the changes which contributed significantly to creating social progress. Therefore, most efforts sought to understand those aspects since it was not useful to understand any of these dimensions individually. In particular, there were several dimensions and interrelated directions and, therefore, the examination of any of these basic aspects should be looked at in their social context.

As is the case in most developing countries, Libya witnessed socioeconomic transformations as a result of oil revenues. Libya enjoyed steadily rising oil revenues after 1960 and also became a significant member of the world's trading community (Allan 1983, 377).

Allan further stated that oil revenues had seen a sharp rise in 1974. Thus, development plans between 1970 and 1980 included an expansion in the areas of health and education in order to respond to the growing social demands and the needs for these services. For most people, there was a basic need for personal health and intellectual autonomy and health care services, which first and foremost required public infrastructure and, secondly, education.

The development plan (1973 - 1975) indicated that, amongst its aims, was improving health conditions and increased expenditure on health services. Also, according to this plan, the policy makers at that time pledged to carry out the health policies development goals by following strategies and actions aimed towards achieving accessible preventative and curative health services for all the population through improved citizens’ quality of life and controlling communicable diseases and raising health awareness amongst citizens. In addition, they aimed to develop the local workforce by carrying out health education and training programmes in order to meet the needs of local people for health facilities and to provide foreign employment to carry out these policies.

The following table indicates the financial expenditure from both the administrative and development budgets between 1973 and 1975, and the expenditure per individual in the same period.

Table (2): the financial expenditure from both the administrative and development budgets (1973 – 1975).

Year	Expenditure		Total   expenditure	Estimation of population	Expenditure of the rate individual
	Budget administrative Libyan Dinar	Budget of development
1973	18.593.944	9,033,366	27,627,310	2,257,000	12.24
1974	35,500,000	15,842,868	51,342,868	2,351,885	12.83
1975	45,666,000	22,757,928	68,423,928	2,449,733	27.93

     Source: The development plan (1973 – 1975)

As we see from this table, expenditure from 1973 to 1975 rose in all the administrative and development aspects, along with the rate of expenditure for individuals. Although the population increased over this period, there was an even greater increase in the rate of expenditure on development. In this context, the first article of 1973 Health Act 106 suggested that the right to health and medical care is guaranteed by the State and that progress will be made to ensure such services ‘keep pace with scientific progress in these areas’.

The following table summarizes what had been achieved in increasing the number of beds, health centers, primary health care units, dental clinics, tuberculosis centers and maternal and child health centers throughout Libya.

    Table (3): The development of health institutions (1972-1975)

		1972	1975
1	Number of beds	8830	12240
2	Number of health centers	65	116
3	Primary health care units	439	576
4	The dental clinics	58	70
5	Number of tuberculosis centers	16	18
6	Number of maternal and child health centers	71	93

                       Source: Statistics of the Ministry of health (1975)

In this context, one of the key goals of the first Five-Year Plan (1976-1980) was improving and expanding existing health services and establishing new facilities. The plan began by supporting and developing the health services and expanding preventative health services with a view to achieving justice and equity in distributing these services to all the country’s regions. In addition, there had been research in different health fields which led to the development of services and the improvement of their performance. According toThe First Five-Year Plan (1976-1980), 171,405,000 million Libyan dinars were distributed between 1976 and 1980 in order to achieve these aims.

Table (4): Indicates the financial expenditure on the health policies over the period (1976 - 1980).

Years	Estimation of population	Development of budget
		Approved allocation	Expenses
1976	2589 100	62 000 000	30 809 374
1977	2697 842	73 000 000	39 732 523
1978	2771 596	83 000 000	52 022 511
1979	2888 000	93 000 000	60 000 000
1980	3245 800	127000000	80 000 000
Total	-------	438 800 000	262564408

                 Source: The First Five-Year Plan (1976-1980)

Metz (2004) argued that Libya, during the 1970s, succeeded in making major improvements to the health services provided to its citizens. Metz also affirmed how, from the 1980s, Libyans began to enjoy many benefits such as housing and education, comprehensive social welfare services and general standards of health which were among the highest in Africa (Ibid:2004). The so-called second plan of economic and social transformation 1981-1985 represented another relevant turning point in Libyan society. This contributed to numerous health improvements as was the case in other socioeconomic aspects. As a result of the structural changes in the local economy through the socioeconomic development plans, the individual’s share of health services increased.

At the same time, most of the expenditure in this plan shows increased development in health activities. According to the plan of economic and social transformation 1981- 1985, the number of primary health care units increased to around 726 by 1985. The number of hospital beds increased to around 19,682 and by a rate of 5.3 beds per 1000 population. The number of basic health care centers increased to 89 across the country; the number of combined clinics, including 7 in Tripoli, increased to 19 by the end of 1985. The development in health facilities was accompanied by an increase in the number of medical personnel and medical assistance.

Table (5): The Increases in Health Personnel

Years	Number
	Doctors	Dentists	Pharmacists	Nurses & midwives	Technicians
1970	731	52	61	3073	385
1979	3951	320	85	13029	2074
1989	5687	471	575	19529	5841
1999	6676	420	722	22951	6815
2009	10253	1322	947	38105	15994

Source: Ministry of Health. Achievements of the health sector (1970 – 2009).  

According to the report State of the World's Children (SWC) (2011), the death rate in Libya declined 16.0 - 4.0 - 4.0, respectively, for the periods 1970 - 1990 - 2008; the rate of mortality in children under 5 (U5MR) declined from 160 in 1970 to 41 in 1990 and 18 in 2009 per 1,000 live births; and thematernal mortality rate declined by 100 per 1,000 lives in 1990 to 64 in 2008 (30% decline). Also, the infant mortality rate declined from 33 in 1990 to 15 per thousand live births in 2008 (State of the World's Children: 2010). It can be concluded from the above that the decline in the mortality rate indicated generally the progress of the health status in all segments of society. The decline in the infant mortality rate had special significance since this showed that, in addition to an improvement in the quality of nutrition, many diseases had been eradicated.

      

4.2 Economic Growth and its impact on Human Development in education sector

In the first years, after Libya’s independence in 1951, education statistics demonstrated how limited basic educational opportunities were for Libyans. According to Wright (1969, in Otman & Karlberg 2007:63) the official census figures for 1954 showed that the rate of illiteracy was very high and reached 81.1%. Therefore, most of the Libyan population was illiterate. Also, Wright indicated that the 1953 estimates showed that, in the province of Tripolitania, only around 40% of children were attending schools. It was also indicated that, based on the first annual report after Libyan independence in 1951 for Adrian Pelt, the UN commissioner for Libya, there were more than 100,000 students countrywide for whom education was considered . In this respect, the number of elementary school students had risen to 131,000 by 1969. As mentioned above, this was very close to the target proposed by Pelt ten years previously (Ibid: 2007).

After Libya's independence in 1951, numerous laws and regulations were passed; these emphasized the importance of education. The most prominent of these laws was the Compulsory Education Act of 1951 which stipulated the need for dissemination of education amongst all members of society, both male and female. In this regard, Latif and Atter(1999) indicated that this law was the beginning of a rational, modern educational policy. The monarchy’s efforts did not stop at this point in the development of the country’s education policy. According to Atter (2007), Libya had taken the education system known in most Arab countries, where, the study beginning at the age of six at the elementary level for six years, followed by middle school for three years, then secondary level for another three years, then undergraduate and whatever followed after. Although, before the discovery of oil, the country's economic possibilities were modest, the state tried various means to respond to the Libyans’ desire for education and, not long ago, schools at different levels and types were found in the centre of large conurbations. When the education system was introduced, Libya adopted secondary education, including the curriculum and teachers' books derived from Egyptian education system (Atter, 2007). In developing its policy, the Libyan Government followed the so-called Comprehensive Planning with particular emphasis and attention on education.

The education sector experienced several changes, from increasing numbers of students at different times. Atter, also, it was further indicated that, in 1970, the number of students represented 18.2% of the population and had increased to 31.6% by 1987. Over the same period, the number of female students increased from 5.8% to about 15%. During this period, the government allocated 2016.5 million Libyan dinars to transform education, with an average spending of 84.7 million Libyan dinars each year and approximately 7.0 million each month on the different levels of education (Ibid: 2007). The government tried, in real terms, to support basic education, to defeat poverty and to expand expenditure in social services. So, the major expenditure goal on education services, whether at an individual or society level, should be that to strengthen primary care and improve education levels across the country by focusing on important aspects such as efficient and effective investment in this process of social development. However, it is clear that investment in the education system in Libya has not followed a clear policy regarding the quality of education. Therefore, expenditure on education, at the different stages generally and, especially, in primary education should be based on identifiable plans to ensure access to achieve quality.

As mentioned previously, Libya focused on the development of educational policies and strategies as a part of social development for both urban and rural areas. As indicated, from the theoretical aspect, the government’s policies aimed to achieve the goals of social development. In Libya, the tools for achieving them were linked closely to broader strategies of economic development in different areas. According to The plan of economic and social transformation (1981-1985), the education strategy was designed to prepare the individual to be more effective in the development of different sectors and, through the development of a new education structure appropriate to the needs of the community, to link education with the requirements of the plans for economic transformation and social development. This was to be done through the establishment of specialized schools rather than general secondary education. In addition to focusing on the core curriculum required by the nature of each discipline, it included shortcuts to reduce the time required for each stage of education.

Accordingly, the attention was given to achieving comprehensive economic development and the delivery of services to all citizens. The economic and social plan 1981-1985 was able to achieve high growth rates significantly in the service sectors such as the education sector which grew by about 14% annually and the health sector about 19.8% per annum (The assessment of the economic and social plan, 1981-1985:7).

In the period from 1973 to 1985, expenditure on education and health reached about 11% of the total development budget and increased to about 51.7% from 1986 to 1996. This evidence confirmed that education conditions had undergone major changes in both periods (El- Hawat, 2002:45). It could be argued that this increased expenditure was not only due to improvements in the educational structures over these years but, also, as a result of an increased number of the population receiving education as was the case across many Arabic countries. A study by United Nations system & the League of Arab States (2007:28) about the Arab region’s millennium development goals indicated that: Youth currently comprise over 20% of the overall Arab population. as well as ,the 15 to 24 age group numbered around 66 million in 2005 (or 20.6% of the population), up from 33 million (19.5%) in 1980. also, this age group is projected to reach 78 million in 2020 (18.2%).

Additionally, the same study showed, also, that there was a clear increase in school enrolment rates in Third World countries. Accordingly to this study, Libya, over the last few decades, had experienced a considerable change in the proportion of its school enrolment, with marked increases in the numbers of male and female students in all regions. Despite increasing school numbers, Libyan society was still suffering from a shortage of efficient and effective services at all levels. Also, there are low levels of efficiency in the precipitant enterprises and production units and public service in various sectors. Of course, there were calls for the State to reform such as (Act 10. 2007) by establishing programmes and the provision of all its services including health and education. More so than ever before, the government’s aim was to achieve social equity for its citizens by means of social care, better health and education and by ensuring positive results to economic reform. Generally, such matters in Libya were regarded as being within the framework of the social and economic process. Libya’s economic reform programs was as a consequence of oil revenues amassed over the last few decades. This had social repercussions because the people had grown accustomed to these services but there had been no emphasis on providing them efficiently. Despite the difficulties, the fact that an emphasis on social equity has meant better education, better social care and better health for people. In light of that, the economic and social reforms have to ensure that all individuals in the society have equal in access to services.

5. CONCLUSION AND RECOMENDATIONS.

This section seeks to draw general conclusion and to make some recommendations. Furthermore, it suggests further work which might arise from this research and makes recommendations for the development of human capital in Libya more generally.

The literature as well as the analysed data that was gathered for this project suggests that there are processes of change resulting from the government’s effort and requirement by education and health institutions, and that the state focused on these aspects as witnessed in light of rapid economic growth during the period under study. Therefore, this study focused on economic growth and human development in Libya, especially the development of health and education programs. Consequently, the delivery and provision of services to citizens was through policies and programs undertaken by the state to promote the social and economic conditions still need to focus on improving quality of health and educational systems in order to achieving an improvement in the welfare and wellbeing of citizens.

Recommendations: This study recognizes there are several challenges facing the state in achieving human development, especially in education, health and other of sectors, which needs to efforts government of tackling the problems of growth and development in Libya. From the findings of this research, the following are recommended:

1. Efforts should be geared towards improving the standard of education, especially basic and middle education in Libya.
2. Substantial amount of government budgetary allocation should be directed towards the education and health sectors in different aspects of the educational process and health.
3. There should be establishments of special agencies beside the governmental institutions with the responsibility of improving the skills and capabilities of human capital.
4. The government should focus on enabling student in use new technology in education and focus sharply on the quality and equity of education.
5. The government should focus on improving quality of health services,   development skills and encouraging health workers.

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