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, leverage its mineral wealth, develop renewable energy sources and promote tourism further. Because of the 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 further attract domestic investment and direct foreign investment and improve economic, political and other aspects.
But there are economic, political and other challenges to the development of Algeria, despite its potentials. There is a lack of emphasis on diversification in the economy, over-reliance on revenues from hydrocarbon and a struggling private sector, which put crucial development challenges. Pertinently saying, Algeria’s heavy-reliance on hydrocarbon makes it vulnerable to global price fluctuations. High unemployment, particularly among the youth, inequalities and regional disparities put notable challenges to development in Algeria as desired. There is also bureaucratic inefficiency, weak governance and corruption in Algeria, which gained its independence from France in 1962. 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.
But there is also political complexity and instability that hinder the development efforts of Algeria. A volatile political ground, caused by a complex interplay among different parties such as the ruling elite, the military and various political and social actors, creates an environment that is detrimental to decisive reforms and sustainable development. There are concerns about freedom of expression, restrictions on the media — especially after the enactment of the controversial 2023 Organic Law on Information — and civil society, along with the mistreatment of detainees in Algeria. The criminalization of dissent, arbitrary arrests, detention and torture remain vital challenges to development. Moreover, environmental degradation is taking place, especially in its forests and Algeria has 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.
But there are various flaws in the government’s efforts, making it difficult to address diverse 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 less to address inadequate infrastructure, high unemployment and disparities. The existing development plans and policies of Algeria are also 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, it is vital to improve the business environment and put emphasis on the diversification of the economy beyond hydrocarbons. Promoting sustainable development across social, economic and environmental dimensions is also needed. Corruption in government institutions 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 including the disadvantaged.
Algeria also needs to address the concerns over the violation of various rights including human rights. But it is crucial to address arbitrary arrests and detention and improve the mistreatment of detainees. Even if some reforms have been discussed, especially after the 2019 Algerian protests, there are concerns regarding the implementation and enforcement of human rights protections. Amongst others, Algeria needs to provide more freedom of speech for its own benefit.
