|
Mr. Arlsan Chikhaoui, economist
and CEO of Transactions
Nord-Sud, an Algiers-based
consultancy, writes that Algeria
is in the grip of an irreversible transition. |
|
 ince the
late 1980s, Algeria has been living through a period of political
and social crisis. The convulsions we have been witnessing since
the October 1988 riots began a process of transition from a
one-party system to, hopefully, an era of political pluralism.
Opposition to that change, at the level of the Algerian society as
well as within the decision-making spheres has made this
transition from an autocratic system to a democratic one a brutal
and violent process. |
 Nevertheless,
that process is an irreversible one. In this transition, political
democratization and economic reforms are an inseparable couple.
The most difficult task in this process is the restoration of
political stability and moving from this transitional stage to one of
durable growth. This can only be achieved through the modernization of
both the model of governance and the economic environment.
The first of these objectives must be predicated upon limiting the
relationship between the military and the political class; the army is
a means of power and is not power itself. The changes introduced by
President Bouteflika since March 2000, to limit the influence of the
army in the management of political matters and reform the institution
itself, are key.
At the economic level, Algeria has been engaged for about a decade in
a wide range of irreversible reforms. Today, the Algerian economy is
unable to attract sufficient investment and is indeed far below the
requirements of investors, suffering from many inefficiencies,
notably, the delays in structural reform, the legislative process,
modernization of infrastructure and so on.
In order to enhance economic growth, President Bouteflika has
initiated a three-year project in May 2001 (see main story). This
action will definitely stimulate economic growth – to around 5% or 6%
– but will still depend on the coherence of the government’s long-term
economic policy, modernization of the industrial sector and the
commercial environment.
Algeria is a young country, rich in natural resources, with
substantial industrial potential, an unexploited agricultural sector,
diversified tourism assets and many geopolitical advantages. It has
initiated a process that is transforming the political and economic
system. The objectives are to liberate the economy, establish market
mechanisms and allow democracy to flourish.
In order to meet these objectives, Algeria is not solely counting on
its own human and natural resources, but also on an efficient
international partnership. Constant growth, creation of jobs through
investment in small and medium-sized enterprises and diversification
of foreign partners are all on the list of objectives. And in the
light of the events of September 11 last year, this is all the more
needed.
Mr. Chikhaoui was nominated as one of the “100 Future Leaders of
Tomorrow” in 1999 by the World Economic Forum.
|
