Libya's 2008-12 developmentprograms is the biggest and most ambitious Public InvestmentProgram (PIP) ever. Public expenditure has also beenpro-poor. Past outcomes show that Libyan authorities haveworked on their macroeconomic and social fundamentals, so asto have a solid base to sustain its steady progress towardbuilding a market-based economy and reintegrating into theworld economy. Making optimal use of a sizable publicexpenditure, and especially public investment, is anessential component of achieving this strategy. The reportsbuilt upon the framework of fiscal management inoil-dependent economies, which features three parts. Thefirst deals with collecting and saving oil revenues, leadingto one stream of a large literature exploring both fiscalsustainability and the pros and cons of alternative modelsof an oil stabilization fund. The second deals withdevelopment spending, leading to a second stream of a largeliterature assessing standards in public investment and themany effects of sizable public investment programs. Thethird deals with financing current spending, such as wages,subsidies, or social programs, addressing the ongoing civilservice reform and the Wealth Distribution Program (WDP).
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