Elected among the 100 Global Leaders for Tomorrow at the Davos Summit, Mr. Arslan Chikhaoui belongs to the influential circle of international decision makers. Lecturer at the French Institute of International Relations, at the Japanese Institute of Middle East Studies and at the University of MYONG JI of Seoul, Mr. Chikhaoui realized several works and essays, notably on the Euro-Mediterranean politics, the lobbying doctrine, privatization in Algeria as well as on the social, economic and political implications of the Sahara conflict.
Mr. Chikhaoui, we attended the controversial legislative elections in Algeria, could you give us your comment about the results?
The elections were held within a climate of crisis in the Kabylie region, and with an abstention rate reaching almost 60%; it reflected the non-concern of the majority of the population regarding politics, and on the opposite, its concern for social and economic issues; however, tentatively, my first assessment is quite positive. Indeed, we notice the come back of the FLN (Front de Liberation National) to the National Assembly; this shows the recapture of this Party to his place on the political scene lost in 1991, marked by the Islamic majority registered in the legislative elections.
Even if the FLN has always been considered by the young generation - representing 80% of the population - as a symbol of an autocratic system, it is undeniable that the majority obtained in these elections, denoting thus a total rejection of the theocratic system, would not have any negative effects on the economic change process. We would probably expect confrontations on the political plan, which is only part of the democratic game. Now, it is to the Democrats to adopt a new strategy.
Algeria is definitely committed to the process of change. What is your assessment of the liberalization process and the opening up of the economy?
Algeria has launched a process of economic and political change since 1999, which became irreversible. On the macro-economic plan, the reforms were positive. Indeed, compared to the past years, inflation rate decreased meanwhile the growth rate increased; though in the other hand, the unemployment rate increased.
However, the controversy is rather on the micro-economic plan. The results obtained are considered as insufficient and disputable in the privatization process, the legislative and statutory corpus, the modernization of the economic environment as well as in the reforms that should be undertaken in the Algerian judiciary.
This does not mean that such reforms have not been carried out. The only issue is that some resistances to change remain either in the decision process or among the Algerian Society in itself. These brakes might be intentional or not, but still, we should find a way to overcome them.
The Process of privatization has been launched two years ago; nevertheless, lots of agreements have not been implemented yet. In your opinion, what hinders the privatization of many major companies?
I think that the will to privatize is there, but this not sustained by the necessary political courage. Algeria is still under shock due to the past ten years. So, how can we conciliate the social requirements directly related to the process of privatization? Viable companies can't be privatized without trimming the workforce; this one has been trimmed by about 900.000 during the past ten years compared to companies that have been simply liquidated.
However, and despite all this, I remain optimistic concerning the upcoming launch of the first list of companies to be privatized. It has been announced that all companies are eligible and open to privatization except within the hydrocarbons sector. Personally, I am for the privatization of the hydrocarbons or the opening of their capital, but as a last resort.
I hereby, propose to the Algerian local authorities to be clear and concise in the implementation of the privatization process. I do believe that there are many takers-in interested in the Algerian market and in the future integration of Algeria in the globalization Process.
As far as globalization is concerned, what are the guidelines of Algeria's policy?
It's unconceivable that Algeria lives on the fringe of this process. In fact, the recent signing of the association agreement with the European Union clearly shows the will of Algeria to adhere to the globalization process. This will be sustained by the coming summit of the leaders of the Maghreb Arab Union which will surely show the political desire to create a free-trade area first in North Africa, then in the Mediterranean zone and at last a free zone with Europe.
All that would not only involve the political side but also the economic side. Integration would allow Algeria to develop a competitive framework and to enhance its private entrepreneurs who are still operating in a protected system or market. It is a matter of changing the behaviors from the governed as much as the governing. It is this integration process that would definitely lead us to a new model of governing.
Through the different interviews we conducted, the notion of "changing mentality" is constantly present, what could you tell us about this phenomenon?
It is not that easy to change the behavior of a whole society. This requires time, lots of effort and above all the conviction to do so. One thing is sure, we noticed an important evolution of the behavior between 1992/2002 though it is still considered as insufficient but this is going on, slowly and surely.
I remain optimistic. The majority of the population is young and this points to the feasibility of this evolution. It is important that the new generation actively and concretely participate in the decision process, whether political or economical. We must involve this new generation.
Algeria is often referred as the crossroads between Africa, Europe and the Arab World. Could you elaborate on that position?
The geo-strategic position of Algeria alone is not enough, if not integrated in a sub-region and if a free-trade zone without constraints and barriers is not implemented. However, it is undeniable that the axis South Africa- Nigeria-Algeria is a privileged and strategic one within the current worldwide geopolitical reorganization.
Could you give us a brief historical background of your company: "Transactions Nord - Sud "?
The trade name of the firm Nord-Sud is directly related to the vertical relation between the North and the South. In 1993, I realized what this country needed was to be advised, but not advised by foreign firms with whom we had spent millions of dollars. So, I decided to sell my ideas to both political and economic players in need of counseling.
The mission of my office is to provide counseling services in the economic as well as in the political fields. We provide a wide range of counseling services in the market services, strategic studies by country, trade investigations, political marketing, as well as counseling at the political and social level. We started our activity at the local level and then two years ago, we extended it internationally.
We created a lobbying center, whose head office is in Brussels, to facilitate our decision makers with a lobbying instrument in Europe.
Can you tell us about your professional experience and your major satisfaction?
I graduated in International Relations & Political Sciences and Economics; I also studied strategic affairs at the FSI -FOREIGN SERVICE INSTITUTE. I have a carrier of 20 years. I was first administrator and coordinator of projects for help and development, mainly those launched jointly or individually by the World Bank, IMF, USAID and JOHN HOPKINS UNIVERSITY. I became then analyst-counselor at the Institute of Global Strategic Studies on foreign political affairs. Since 1993, I run a firm of counseling specialized in the strategic political, economic and marketing affairs.
As for my satisfaction, I consider that by moving into the private sector, particularly in the strategic and consultancy field, while the country was suffering and facing a very difficult period, I contributed to build up a new civil society that would meet and comply with the new international behavior and trends.
What would be your last message to the investors willing to invest in Algeria?
We have great investment opportunities though the economic environment is not fully modernized. We should go on and try to go beyond these constraints. The country is virgin and investors should not wait for this economic environment to change. In fact they will participate and be part of this evolution. Many of them are already here because they got the point and thus took the lead.
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