Once pacification had been accomplished, fascist Italy endeavored to convert Libya into an Italian province to be referred to popularly as Italy's Fourth Shore. In 1934 Tripolitania and Cyrenaica were divided into four provinces--Tripoli, Misratah, Benghazi, and Darnah--which were formally linked as a single colony known as Libya, thus officially resurrecting the name that Diocletian had applied nearly 1,500 years earlier. Fezzan, designated as South Tripolitania, remained a military territory. A governor general, called the first consul after 1937, was in overall direction of the colony, assisted by the General Consultative Council, on which Arabs were represented. Traditional tribal councils, formerly sanctioned by the Italian administration, were abolished, and all local officials were thereafter appointed by the governor general. Administrative posts at all levels were held by Italians.

An accord with Britain and Egypt obtained the transfer of a corner of the Anglo-Egyptian Sudan, known as the Sarra Triangle, to Italian control in 1934. The next year, a French-Italian agreement was negotiated that relocated the 1,000-kilometer border between Libya and Chad southward about 100 kilometers across the Aouzou Strip (see Glossary), but this territorial concession to Italy was never ratified by the French legislature. In 1939 Libya was incorporated into metropolitan Italy.

During the 1930s, impressive strides were made in improving the country's economic and transportation infrastructure. Italy invested capital and technology in public works projects, extension and modernization of cities, highway and railroad construction, expanded port facilities, and irrigation, but these measures were introduced to benefit the Italian-controlled modern sector of the economy. Italian development policy after World War I had called for capital-intensive "economic colonization" intended to promote the maximum exploitation of the resources available. One of the initial Italian objectives in Libya, however, had been the relief of overpopulation and unemployment in Italy through emigration to the undeveloped colony. With security established, systematic "demographic colonization" was encouraged by Mussolini's government. A project initiated by Libya's governor, Italo Balbo, brought the first 20,000 settlers--the ventimilli--to Libya in a single convoy in October 1938. More settlers followed in 1939, and by 1940 there were approximately 110,000 Italians in Libya, constituting about 12 percent of the total population. Plans envisioned an Italian colony of 500,000 settlers by the 1960s. Libya's best land was allocated to the settlers to be brought under productive cultivation, primarily in olive groves. Settlement was directed by a state corporation, the Libyan Colonization Society, which undertook land reclamation and the building of model villages and offered a grubstake and credit facilities to the settlers it had sponsored.

The Italians made modern medical care available for the first time in Libya, improved sanitary conditions in the towns, and undertook to replenish the herds and flocks that had been depleted during the war. But, although Mussolini liked to refer to the Libyans as "Muslim Italians," little more was accomplished that directly improved the living standards of the Arab population. Beduin life was disrupted as tribal grazing lands--considered underutilized by European standards but potentially fertile if reclaimed--were purchased or confiscated for distribution to Italian settlers. Complete neglect of education for Arabs prevented the development of professional and technical training, creating a shortage of skilled workers, technicians, and administrators that had not been alleviated in the late 1980s. Sanusi leaders were harried out of the country, lodges broken up, and the order suppressed, although not extinguished.

Data as of 1987