 CONCLUSION |
The dynamic aspect of Algeria's economy reveals mainly a new spirit of enterprise carried by a more flexible legal framework, which favors private initiative and the emergence of a competitive market. Taking into consideration its strong geo-strategic position and its new policy of openness, Algeria possesses the decisive assets to eventually work its way up among developed countries. The measures that have been adopted during the past few years have had positive outcomes on macro-economic parameters, however, 97% of exports still result from the oil sector. A diversification of the production is therefore essential to diminish risks of economic dependence. Furthermore, debt reimbursement constitutes a major obstacle to development and economic diversification. With such hydrocarbon resources, this situation is difficult to comprehend by a population that is stricken with a record unemployment rate of 30% and who aspires for more consideration from the ruling authority.
For a long-time, public investment in terms of housing, hygiene and infrastructures has been neglected in favor of basic goods imports. Today however, priorities have to change to reduce unemployment and the considerable deficit in terms of housing, to develop a quality education system and to reinforce basic needs such as access to running water. | Taking advantage of a favorable oil economy, ambitious reforms and wide-ranging programs have been put in place by the government to overcome this uncomfortable situation. In this framework and in view of modernization and development, foreign capital through investment and structural aid programs is vital. However, faced with a social and political environment heavily marked by a decade of security problems, investors are cautious. Another great challenge for the government is to bring confidence back to these investors, a challenge that needs stable conditions and transparent structures. The recent signature of the association treaty with the European Union as well as the steps taken towards Algeria's WTO membership are clear signs for investors that the Algerian government is committed to break with its turbulent past. The head of government Mr. Benflis states: " It is true that Algeria has gone through a difficult phase, however it is now firmly on the way out of this crisis. Those who insure their presence on the Algerian market at this precise moment will have a considerable advantage over their competitors. I do not underestimate the image deficit of my country, but the best strategy to counter this situation is to invite all those who are interested in the Algerian Market to come and witness our evolution. Today, Algeria is on its way towards progress and growth. To believe in the potential of Algeria is to place a sure bet on the future." |
