Algeria is a developing country — with a per capita income of more than 4500 US dollars — and has huge development potentials. It has in the meantime improved its economic, political and other aspects that helped improve the quality of life of its people. It has the potential to diversify its economy beyond hydrocarbons and agriculture, develop renewable energy sources, leverage its mineral wealth and promote tourism further. Because of its strategic position and growing young population, the People’s Democratic Republic of Algeria, which has large oil and gas reserves, also has the potential to draw domestic investment and direct foreign investment further and improve economic, political and other aspects.
But there are economic, political and other challenges to the development of Algeria, despite its potentials. It has a heavy reliance on hydrocarbon revenues, a lack of diversification in the economy and a struggling private sector that are crucial development challenges. The over-reliance on hydrocarbon makes it vulnerable to global price fluctuations. High unemployment, particularly among youth, inequalities and regional disparities put notable challenges to development in Algerians as desired. There is also bureaucratic inefficiency, weak governance and corruption in Algeria, which gained its independence from France in 1962. Pertinently saying, excessive government regulations, a lack of transparency and bureaucratic hurdles discourage both domestic and foreign investment and put hindrances to providing business-friendly conditions in Algeria.
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There is also political instability and complexity that hinder the development efforts of Algeria. A tense political climate driven by a complex interplay between the ruling elite, the military and various political and social actors creates an environment that is not conducive to decisive reforms and sustainable development. There are concerns about freedom of expression, restrictions on media — especially following the 2023 Organic Law on Information passed by the country’s parliament — and civil society, along with the mistreatment of detainees. Notably, despite criticism, arbitrary arrests, torture and the criminalization of peaceful dissent remain vital developmental challenges. Amongst the others, the country also grapples with environmental degradation, particularly in its forests and the threat of terrorism.
But, hopefully saying, the policy-based and other efforts of the governments have improved various conditions and have been helping address development challenges. Algeria has implemented or has been implementing various policy-based steps including the Five-year Development Plans, the 2021 Government Action Plan and the 2019-35 National Strategy for Environment and Sustainable Development that focus on various aspects including economic diversification, infrastructure development, environmental protection and social progress. Because of various steps, Algeria is now one of the largest economies in Africa and is undergoing many changes including economic diversification, including growing investments in renewable energy and agriculture, in upper-middle-income Algeria.
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But there are various flaws in the government’s efforts, making it difficult to address development challenges and provide the opportunities for human development as desired in Alegria. Pertinently saying, there are limited government efforts to address the challenges to good governance, including a lack of transparency and corruption in government institutions and bureaucratic hurdles. Government efforts are also less to address inadequate infrastructure, high unemployment and disparities. Amongst the others, the existing development plans and policies of Algeria are not properly implemented due to various reasons including inadequate government monitoring and oversight mechanisms.
But Algeria needs to address its various development challenges and provide opportunities for all of its citizens — more desirably. For this, putting emphasis on diversifying the economy beyond hydrocarbons, improving the business environment and promoting sustainable development across social, economic and environmental dimensions is vital and will be helpful. Corruption in government institutions also needs to be addressed, along with addressing bureaucratic hurdles. But economic inequalities and social disparities need to be addressed for the desirable development of all in the country including the disadvantaged.
Algeria also needs to address the concerns over the violation of various rights including human rights. But it is vital to address arbitrary arrest and detention and improve its treatment of detainees. Though some reforms have been discussed, particularly after the 2019 protests, concerns remain regarding the implementation and enforcement of human rights protections in Algeria. Amongst others, Algeria needs to provide more freedom of speech for its own benefit.
