A French colony for
over 100 years (from 1830 to 1962), the People's Democratic Republic of Algeria gained its
independence in 1962. Algeria is bordered by Morocco to the west and Tunisia to the east.
It is the second largest country in Africa and the largest in the Arab Maghreb Union, the
economic agreement among five countries in the region: Algeria, Morocco, Tunisia, Libya
and Mauritania. The country enjoys a temperate climate to the north, where it borders on
the Mediterranean Sea, while desert conditions prevail in the southern, Saharan region.
Given the country's
varied climate and topography, Algeria's population of over 30 million is concentrated
mainly in the northern part of the country, where the majority of live in urban centres.
They are primarily of Arab origin, with approximately 25 percent being Berber. The
country's official language is Arabic and its main religion is Islam. Algeria has a
relatively young and rapidly growing population: 60 percent of Algerians are under 20
years of age.
The first President
of Algeria, Ahmed Ben Bella, favoured a planned development strategy based on the
socialist system, which advocates collectivism and state control over production, and in
turn ensures state control over all major sectors of the economy. In 1965, Houari
Boumediene succeeded as President, following in his predecessor's footsteps by
nationalizing various economic sectors. In 1979, following Boumediene's death, Chadli
Benjedid became President of the Republic. Elected for two consecutive terms (1984
and 1989), Benjedid threw the socialist system into question, promoting an
economic liberalization of sorts and modifying political institutions. In a 1988
referendum, the population voted in favour of a government responsible to Parliament. A
year later, a new constitution would open the door to multi-party politics and true direct
democracy.
In January 1992,
the threat that the Front islamique du salut (FIS) might take power brought the election
process to a halt and plunged Algeria into political crisis. The FIS was dissolved and the
Haut Comité d'Etat, a senior government committee, assumed responsibility for managing
the country's affairs. In November 1995, General Liamine Zéroual, who had been heading
the Haut Comité since January 1994, called a presidential election. He went on to win
61.34 percent of the vote in an election that had a 75% voter participation rate.
Legitimized by his democratic election victory, President Zéroual, with the backing of
his military peers, tried to arrive at a political consensus that would unite Algeria's
political forces, including moderate Muslims. The government he appointed on January 5,
1996 was evidence of his cautious openness to the Islamic sphere of influence. Indeed,
this was the first pluralistic cabinet in Algeria's history.
Since its
independence, in 1962, Algeria had a flourishing agricultural sector, but by 1990, it
employed only 26 percent of the labour force. With modernization, the industrial and
services sectors have played an increasingly larger role in the country's economy, each
accounting for 44 percent of gross domestic product.
Algeria has
traditionally depended on its rich petroleum and gas resources to ensure growth. However,
limited growth in the intermediary industries (consumer goods) and in the food industry,
and created shortages that have driven up imports of consumer products. It has also caused
a certain amount of financial instability, as the country's revenues vary significantly
with fluctuations in the price of petroleum products on the international market.
Algeria's economic
growth has been slow in the past few years, the result, among other things, of sluggish
international petroleum and gas prices, heavy foreign debt, high unemployment, and
excessive state intervention. Since the end of the 1980s, the Algerian government has
taken several measures to broaden the economy. In 1994, together with the International
Monetary Fund (IMF), Algeria embarked on an adjustment program to stimulate short-term
economic growth and re-establish the country's macroeconomic balance.
Algeria has a well
advanced telephone network. In 2000, the country had over 1.7 million connected lines
resulting in a telephone density of 5.70 lines per hundred of population.
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