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   COMPLUTENSIAN INSTITUTE OF STUDIES INTERNACIO­NA­LES

                      DOCUMENTS

                                   OF

                            WORK

                                           DT: 5/1998

                                  ALGERIA:

  ECONOMIC APPROACH To The CRISIS

                                          Iván Martín

                   Professor of Economy and European Union

            of Hamilton College Academic Year in Spain and

of Vassar-Wesleyan-Colgate Program in Spain (the United States)


                                  ALGERIA:

  ECONOMIC APPROACH To The CRISIS

Summary

Algerian civil conflict has deserved explanations cultura­les, nuns or policies, cua­ndo not con­sidera as test tube of the "shock of civilizacio­nes" or expression of a su­puesta drift fundamentalis­ta of the incompatible Islam with a modern socie­dad. Nevertheless, the aná­lisis of the model of socio­económico development implanted by the poscoloniales governments en­tre 1962 and 1988 contributes an explanatory frame of the cri­sis without a doubt partial, but enlightening.

model of ar­gelino development was based on the rents of exporta­ción of hidrocar­buros like only source of financing of desa­rrollo and accumulation. The absolute priori­dad granted to a po­lí­tica of intensive industrialization in capital and foreign tec­nología and centra­da in the heavy industry was conjugated with the negligence of agriculture, provocan­do a massive rural exodus to cities with serious deficiencies of infraestructu­ras and houses, as well as almost complete a estruc­tural nourishing dependency. The result of all it was the marginalization of sis­tema economic of segments importan­tes of the population, the condemned to the unemployment or the misery of the suburbs. Paradoxicalally, Algeria became a pa­radigmático example of dual, extraspilled, especia­lizada and disarticulated economy. The fast growth of the population and a very young demographic structure, uni­dos to this lack of oportu­nidades of inte­gración económi­ca, constitutes the sociological sus­trato in which they prospered the islamistas po­líticas forces, to the being the only ones that offered a real alternative of social policy. From one perspecti­va of political economy, the Algerian crisis can be enten­der in key of apropia­ción of the rents of the pe­tróleo.

Abstract

ALGERIA: AN ECONOMIC APPROACH TO THE CRISIS

The civil Algerian conflict you have been explained in terms of cultural, religious and political processes, if not considered to either ace to test marries for the "clash of civi­lizations" or ace an evidence of the purported fundamen­talist drift of Islam AT odds with modern society. However, an analysis of the socioeconomic development model implemented by the post-colonial Governments from 1962 through 1988 de­livers to revealing, albeit partial for logical framework the crisis.

The Algerian development model relied on the income from hydrocar­bons exports for ace the only source of finance development and capital build-up. The absolute pri­ority attached to to capital and foreign technology in­tensive industrialization policy focused on heavy in­dustries combined with ne­glect of agriculture to causes massive rural migra­tion to City suburbs lacking all kinds of infrastructure and even housing facilities, ace well ace to virtually full food dependency. This resulted in the exclusion from the economic system of large segments of the population, bound to unemployment or outright poverty. Algeria became to paradoxical marries of dual, outward-looking, spe­cialized, dislocated econo­my. The fast population growth and the Young demo­graphic struc­ture, to together with this lack of economic opportunities, built the sociological background in which the islamic political groups thrived social ace the only real policy alterna­tive. The Algerian political crisis may be understood in terms of economy of oil income appropriation.


 

INDEX

Summary - Abstract

Introduction

1. model of pos­colonial development in Algeria: 1962-1988

          1.1. Dowry and explota­ción of hydrocarbons

          1.2. Industrial policy

          1.3. Agricultural policy

          1.4. Population, urbaniza­ción and unemployment

          1.5. The exte­rior dependency

                   commercial Dependency

                   financial Dependency

          1.6. Conclusions

2. importance of Arge­lia

          2.1.    the gas provision

          2.2.    the phantom of the massive emigration and I infect

3. Evaluation of re­for­mas economic

          3.1.    structural Ajuste

          3.2.    Student model

          3.3.    social Costs

4. Final perspective and conside­racio­nes

5. paper of the Eu­ropea Union

Bibliography


 

Introduction

attitude more extended between analysts and western intelec­tuales before the Algerian social implosion is the perplexity. The European políti­cos and diplomats, in spite of their preoccupation, are igual­mente parali­zados. Algeria, that until not long ago was mirror of the hopes of progress of so many Third World Countries and prototype of an independent polí­tica of development, is today a nightmare.

This perplexity is propaga­do a vision of catás­trofe Algerian like test tube of the theory of "­choque of civilizations", obviously staged in Algeria by the conflict between the "French party" (hizb França), represented by the Army and elites of the businesses and intellectuals, and the majority Arab population and to bereber. The cause of the present crisis would be in the incapacity of the Islam to adapt to the modernity, crystallized in a system of more or less mixed Capitalism and a repre­sentativa democracy with guarantees of the human rights (that, anyway, par­ece to respect too much the actu­al pro-western regime either), when not in the natural inclin­ación to the terrorism of the Islamic fundamentalists (Glucks­mann, 1998). In essence, this one is the predo­minante vis­ión - impli'cita­mente-in the chancelleries europe­as; the same one which legislati­vas took them to feel a certain one alleviated cua­ndo the suspension of the elections, in January of 1992, an almost surely avoided triumph of the Islamic Front of Salvacio'n (FIS), that evoked the scene of the feared implanta­ción of a islá­mica policy to image and similarity of those of Iran or Sudan.

From com­prensivas positions with the tradition and the sociology of the Islam, the only serious inten­tos of analysis of the causes aim at some of these three conspiracio­nes:

-        or is the Ejér­cito, like apprentice of wizard interested in maintaining a violence climate that justifies its perpetua­ción in the power like only guarantor of the order, when nonpromo­tor Grupos Isla'micos Armados (GIA) to stoke the discords between Islamic groups, according to it assures an old official deserter anóni­mo (Der Spiegel, 1998);

-        or is a perverse strategy for determi­nados inte­reses economic. The most recent exponent of this thesis (to which also Goytisolo adheres, 1997) is Alain Joxe (1997), according to which:

          Any observer of the slaughters organized in rich earth and of urban expansion knows that it is not assassinated in mass in this class of territories without there is behind a financial operation: either to recreate the large estates, causing the hasty flight of the members of the cooperatives founded after the independ­encia, or to clear the land with a view to a speculation urba­na;

-        or is lega­do poisoned of the French colonial time.

While that the argel­ina situation has deserved cultural, religious anál­isis (Goytisolo, 1994 and 1997), social politicians and (Naïr, 1995), misses an economic approach to the causes of present catás­tr­ofe social. That it is precisam­ente what tries to make this work preliminary, that, with the handling exclusiv­amente of sources of secondary inform­ación, propo­ne to become one first systematization summary of the carac­terísticas, the evolution, the implica­ciones and the perspective of the model of Algerian development within the framework of a ampler project of investigation sobe the countries of the Maghreb and their interac­ción with the European Union.

Although it is evident that "no unilateral explanation can summarize this crisis" (Naïr, 1998), does not fit doubt, on the other hand, that, understanding the present degeneration of the situa­ción in Algeria, is precise to remember, among other factors, intrinsic dynamics and the social effects of the policy of industrialization and operation of the oil resources applied during the Seventies and first half of the eighty, that, during two decades, enjoyed predicamen­to of most of the theoreticians of the economy of the development. Algeria offers an example, almost of manual, the failure of the policy of industriali­zación by sustitu­ción of imports. The two main conse­cuencias - almost logics, views from present ours perspecti­va of this policy were - in flagrant contradiction with the rhetoric and the official ideology an outer defendant dependency of the Algerian economy and the economic margina­ción of ample segments of the population, which has constituted the broth of culture of the Islamic fundamenta­lismo.

In last instance, the Algerian crisis constitutes a conflict by the appropriation of the enormous rents of petroleum.


 

1. model of poscolonial development in Algeria: 1962-1988

case of Algeria is specially paradigmático because, during the Seventies, the theory of desarro­llo attributed character to him of model of mobilization of a natural resource as it bases of a development process that combines industrialization with the agrarian revolution (Nohlen, 1980).

In the five lustrums that followed independence, the Algerian economy was formed like an economy of central planning with state property of production means. The declared objectives of this economic planning consisted of promoting an endogenous economic development that assured Algerian economic independence with respect to the international markets and the multinational companies, like guarantee of their political independence. instru­mento of this policy of development had to constitute it the valuation of the Algerian natural resources, specially the hydrocarbons. Thus, in the international scope, Algeria was one of the promoters more decided of the New Economic Order the International, whose basic postulates nowadays constitute almost contraejemplo of the Algerian economy.

Although, initially, the ideology of the Front of National Libera­ción that governed the country in this period favored the colectivización and the autogestión, actually these were only implanted in agriculture, after the expropriation of the colonial agricultural operations and its conversion in cooperatives. In the industrial sector, in which there was to be created ex- I novate an own industrial capacity, was decided as of 1965 on a model of central planning of the State in which, formally, the property of pro­ducción means was public, although it articulated in companies managed by a tecno­crática class with methods similar to those of the private companies. The objective era to turn to Algeria, for 1980, in a indus­triali­zado country.

Parallelly, some elements of a State of well-being were implanted, made specific fundamentally in strong subventions of products of first necesi­dad and in the infraes­tructuras financing de  and servi­cios of education (universal escolarización from 1973) and toilets. But this social policy was overflowed by the joint effect of explosive demographic dynamics, the rural exodus and the fluctuations of the income of the State caused by the variations of the prices of petroleum.

1.1 Hydrocarbon dowry and operation

Algerian independent government inherited of metró­poli a incipiente petroliferous industry managed by multinacio­nales companies in regime of concessions. Immediately after independence, in 1964, Sonatrach was created, that, after the conclusion of the process of nationalizations in 1971[ 1 ], one became the public monopoly of the hydrocarbon operation and, with it, not only in the most important company of the country, but in the spine of the Algerian industry and the economy.

While that in 1962 the hydrocarbon exports only supposed 12% of the total, from the crisis of the petroleum of 1973 east percentage year has been located after year over 93%. The income of petroleum suppose between 20% and 30% of the added value gross and near 60% of the income of the State.

Of this way, from 1974 the Algerian economy can be described without exaggerating like one rent economy, in that the income derived from the hydrocarbon export constitute the fundamental source of accumulation and financing of the development process. Between 1962 and 1996, the hydrocarbon export has reported to Algeria total currency income of near 240.000 million dollars, that, after to have surpassed the 14.000 million dollars in 1981, have become stabilized in the last five years something below the 10.000 million annual dollars, although with ascending tendency thanks to the increase of the natural gas exports.

This it causes that the main determining variable of the Algerian economic growth from then was the internacio­nales prices of petroleum (it see Graph 1), to that are tie also (although with a certain phase angle) the prices of the natural gas. In any case, Algeria is a country price-acep­tante in the international markets of hydrocarbons, since its total production (1.325 million daily barrels if the derivatives of the natural gas are included, of them approximately 750.000 crude petroleum barrels) never (OPEC) has reached 5% of the production of the Organization of Exporting Petroleum Countries nor 2% of world-wide the total production.

Thus, the fall of the prices of the petroleum registered between 1981 (when it got to reach the 40 dollars by barrel) and 1986 (when dóla­res surpassed the the 14 barrier of) was the detonating that exploded the contra­dicciones of the model of Algerian development, causing an abrupt reduction of the currency income of near 80%. In the last ten years, like it can be seen in Graph 2, the prices of petroleum have maintained a relative stability to levels next to the 16 dollars by barrel, that, given the present levels of production, do not guarantee to Algeria a currency flow sufficient to finance, at least, its necessities of investment[ 2 ], and that determines rates of economic growth only slightly superior to those of demographic creci­miento.


                                          GRAFICO 1

                                              Algeria:

              Growth of the P.I.B. and prices of petroleum

*           Source: World Tables 1993. World Bank. Average rate of annual growth in real terms. For period 1993-1996, International Financial Statistics 1997.

**         Source: International Financial Statistics 1997. Moneta­rio Bottom The International. Counted price al of petroleum Dubai Fateh, in dollars of EE.UU./barril

In part like answer to this situation, in 1991 liberalized the sector of hydrocarbons, giving entered two international oil dozens of compa­ñías (headed by North American the Arc and the Briton British Petroleum, and between that also they are the Spaniards Repsol and Cepsa) the activities of pros­pección and operation of the resources by means of projects of direct cooperation with Sonatrach (until then, the foreign companies had participated solely, although profusely, in quality of contractors). The most visible effect of this process has been the recupera­ción of the natural gas exports, whose fiscal treatment and of incentives to the foreign investment was compared to petroleum in the Hydrocarbon Law of 1991.

Production total of gas natural, something more than half leaves to Europe through both great gaso­ductos intercontinental that unites Algeria with Europe, Transmediterráneo (that unites Algeria with Italy from 1983) and Euromagrebí (operative from 1996), which he is the one that it supplies to Spain, in addition to a Portugal and Morocco. Italy is, at the moment, the main client of the Algerian gas. Although gasoducto Euromagrebí crosses 530 kilometers of Algerian ground, the insecurity caused in the country by the actions of the armed Islamic groups, although has driven away to an important part of the foreign technicians in Algeria, has not seriously affected at no moment nor to the commerce of gas not even the development of the sector, in permanent ebulli­ción from the arrival of the foreign companies.

Without embargo, the petroleum dowry, in addition to leaving to Algeria to albur of the quotation of the crude one in the international markets, is subject to two restriccio­nes structural that, although basically ignored in the past, without a doubt they will condition his paper in econo­mía Algerian in the future: limited character of the proven petroleum reserves and the dynamics of the Algerian demographic creci­miento (see section 1.4).

By what it concerns to first of them, the reserves proven of crude are based in 9.200 million equivalent petroleum barrels, that to the rate of operation of 1995 would reach after something more than twenty years.[ 3 ] The natural gas reserves, however, it does not seem that they are going to exhaust itself in a foreseeable future, being considered in 4,5 trillions of cubic meters (36.000 million equivalent petroleum barrels, for 710 years of consumption to the present rate, although surely the real reserves are superior). In the case of the natural gas, after one decade of excess of capacity as a result of the fall of exportacio­nes of liquefied natural gas to the United States from 1982, from 1991 Algeria it arranges of a safe demand and in ascent in the countries of the south of Europe. The entrance of the interna­cionales multinationals has accelerated the descu­brimientos of new reserves of petroleum and natural gas. All it allows the Algerian authorities to augur an increase of the currency income of 30% in the next years (the estimations of Sonatrach aim at least at 13.500 million dollars in the year 2000), although open some interrogan­tes to more long term, when the petroleum reserves begin to exhaust themselves.

1.2 Industrial policy

To margin to explain why the rent of petroleum has not contri­buido, not only to generate a process of desarro­llo, but at least to reach a certain social peace, the model of Algerian industrial development serves perfectly like ilustrativo example of which the indus­trialización of an economy is not a sufi­ciente condition for its development, in individual if the industrial sector not Integra in an endogenous process of technological development and of the internal demand. In fact, it could even be used like contraejemplo of an industrialization process that blocks the development (Béraud, 1995).

Drugged by the manna of the oil rents and the theories of industrialization by substitution of then importa­ciones in it rows in the Third World, dirigen­tes economic Algerians were sent to an ambitious process of industrialization commanded by the State like great investor, who has deserved epítetos like "faith in industrialization" (Balta, 1994) or "industrialista ideology" (Naïr, 1998).

After first stage of nationalizations, as of 1975 the Algerian poscolonial regime embarked in a policy of promotion of the "industries industrializan­tes" articulated around the construction (or rather "key in hand" would have to be said to the acquisition) of great "poles of development" that adopted the form of gigantic comple­jos of the heavy industry (the iron and steel complex of the Hadjar, near Annaba, that gives use to 22.000 workers, constitute the monument by antonomasia to this conception of the indus­trial development). The theoretical principles of this approach asegura­ban that the development of these industries would generate a process of cumulative growth ("through the structural transformation of the interindustrial matrix and the modification of the production function") that would contribute to the endogenous development of the productive forces (thanks to the demand of goods of equipment induced by the agrarian reform and excessive of productivity in agriculture and the demand of consumer goods generated by the distribution of the excess). This strategy explicitly tried to promote a development level that allowed the country to surpass the possible exhaustion of its hydrocarbon sources without serious economic traumas.

Everything this industrializador effort absorbed total investments considered in 100.000 million dollars. This shows the voluntarista character of the Algerian process of industrialization, if we consider that, between 1965 and 1980, the Gross Formation of Fixed capital absorbed an average of 40% of the GIP (peaky of until 60%), although is certain that around half of that proportion it corresponded to the own development of the hydrocarbon sector (Béraud, 1995). This accumulation of capital in the industry was in damage not only of the production of consumer goods, but of the pressing investments in urban infraes­tructuras required by the fast process of population increase and city-planning.

Although during the period of more intense industrializa­ción the Algerian industry grew to a rate near 10% of average, this at no moment had to the creci­miento of the productivity, but to the permanent in­yección of capital in form of new investments in a small number of sectors of the heavy industry (iron and steel industry, refining and liquefaction of hydrocarbons, fertilizers, metalmecánica and little more). This industrial concen­tración, although contributed to increase the industrial manual labor of one to two million workers in one decade, it was incapable to create sufficient job like maintaining the rate of the combined effect of the rural exodus and the population increase.

By another part, the magnitude of these efforts was not crowned by the success. As it can be seen in Graph 2, the manufactu­rera industry has practically not increased its participation in the GIP in all the poscolonial period, and globally it is not possible to affirm that Algeria, against which usually it thinks, has become a industrialized economy.

industrialization strategy failed - if abstraction becomes of far from it trivial questions like the extension of corrup­ción- by two fundamental structural reasons. First it was that the Algerian leaders, with a cultural formation francófila and enfrenta­dos with the challenge to construct a modern industry from the anything, did not doubt in even resorting to the great companies multinaciona­les and foreign technicians for the construction and the management of the great industrial plants, without worrying about the development of an own technology. If the reference to the interindustrial matrix is precise to understand this failure it is indeed because the great Algerian industries convirtie­ron, in the best one of the cases, "industries of enclave" without no type of pull by the side of the demand nor of the supply on other industrial, incapable sectors, on the other hand, to take the relief from the exports from the oil sector (on which the thickness of its demand or its provisions depends) and, therefore, to restrain the unstoppable petrolización of the Algerian economy. In fact, a common characteristic of the Algerian industry is the excess of capacity, with a rate of very low use (practically always inferior to 50% and not very often superior to 30%).

But more serious still it was the other reason that made fail the Algerian industria­lización and laid the the foundations of its excluding character of the development of agriculture and the creation of use. The strategy of industrialization by substitution of imports, instead of being based on the appropriation of the excess of the agricultural sector, based all its process of accumulation in the rent of petroleum, which in the end would be ominous, among other reasons because the State Algerian, although able to control the external economic distribution of excessive the appropriate one by means of the export of hidrocarbu­ros, does not control the conditions of its formation, that depend in this case on the evolution on the supply and the demand of energy in the international markets. Consequences of this shade are patents if we compared the Algerian case in period 1965-1980 with the implanted process of estatalista industrialization (by the way, with a remarkable initial success) in the Soviet Union from 1923, that served as model, sometimes explicit one.

idea-force of this policy of industrialization consisted of creating a heavy industry that impelled the development of national intermediate industries. But in the Algerian case three fundamental differences with respect to Soviet industrialization occurred that they determined his failure.

In first place, whereas the Soviet Union had an ample internal market able to absorb the production of the heavy industry, was not that the case of Algeria, that it relatively has a population reduced and a relatively small useful territory. Secondly, Algeria arranged, unlike the Soviet industry (immersed in the construction of the "socialism in a single country" until the Thirties), of the access to the technology "key in hand" and the attendance of technicians and foreign companies, which, although facilitated the immediate development of the industries, prevented the acquisition of an own technological base, laying the the foundations of an outer dependency. Finally, something still more important, whereas the Soviet Union financed its industrialization by means of the appropriation of the agricultural rents (with which the agricultural work became the measurement of the value, that allowed the fixation of the internal prices), Algeria trusted the rents of petroleum exclusively to finance its industrial development, whose quantity it oscillated to the compass of the fluctuations of the international prices of hydrocarbons, on which own Algeria did not have no influence (except for which it was derived from his participation in the cartel of OPEC). This it supposed, as it will be seen immediately, the abandonment of agriculture as it bases productive of the national economy and, parallelly, the absence in Algeria of a measurement of the value that allowed to the economic calculation and the rational planning of the allocation of resources. But, when not integrating agriculture in the national economic system, one marginalized simultaneously of the economic system to the rural, majority population until the Eighties.

In last the ten years, the situation of the Algerian industry has been degraded as a result of the lack of maintenance of the equipment, the lack of raw materials and pieces of spare part caused of the currency shortage, and the premature obsolescencia due to the negligence. The rates of use of the capacity have fallen still more, until inferior levels in many cases to 30% had, partly, to these evils and, partly, the contraction of the demand caused by the forced increase of the prices derived from the increase of the concerned insumos. In general, the industries that have been able to maintain their production are very inefficient.

reconversion of some of once strategic the industrial companies to the concerned product distribution - after eliminar­se in 1996 the prohibition of import of a hundred of products, specially machinery and consumer goods puts in evidence the demolition situation that lives east sector at moments in which the contraction of the budget of the State and the policy of liberaliza­ción force many public companies to generate value added by any means, at least is for surviving and maintaining the "rents of situation" of its direction and its personnel.

With the aim to improve the efficiency of the companies and to facilitate their privatization, between 1984 and 1989 many great industrial companies in smaller and manageable units of production were divided (until totalizing 2.800 public companies), and the entrance in the sector of the private capital, that during last the two decades had taken refuge in industries of low content tecnológi­co, like the textile was allowed. The reorientation of the industrial policy completes with the priority granted to the consumer goods and the promotion of new routes of commercialization, as much commits like external, of the produc­ción of the existing industry.

1.3 Agricultural policy

But if the effects of the industrialization policy were devastado­res, it must to that it was accompanied by an almost absolute negligence of agriculture. The Algerian agrarian problem perfectly has been synthesized by Samir Naïr (1995):

          From World War II the central socioeco­nómico problem of Algeria is the transformation of the social position of the peasantry. [...] But the power [ of the FLN and the Army, arisen from the decolonization of 1962] ignored purely and simply these questions. [...] the rural classes were pushed towards the city and they went away turning a miserable urban population little by little. [...] From mid the Seventies, the marginalized town of the cities, coming from the field in its majority, takes refuge in the religion like radical alternative to the system. [...] and the Chadli regime, occupied in the distribution of privileges between the groups leaders, did not include/understand that it treated, not of a question political or cultural, but fundamentally social.

stages of this process are the following ones. After independence, the agro-alimentary operations that proliferated during the colonial time in the coastal strip of Algeria (a great exporter from these products to the French metropolis then, besides to cover 93% with their agricultural necessities) were nationalized and colectivizadas in 6.000 cooperatives. In 1970, the agricultural products still supposed 19.9% of the Algerian exports to the European Economic Community.

The later decade, agriculture entered an inefficiency spiral (partly caused by the absorption of many veterans military in the agricultural cooperatives) that is united to an almost complete negligence of the economic authorities towards this sector, negligence that arrived at the end of nor so at least using the contingents of export established by the EEC for magrebíes agricultural products:[ 4 ] in 1977, agriculture already as soon as it generated 10% of the Gross Inner Product, and not even the incipiente national fertilizer industry and the mechanization of the field were able to stop the declivity of the agrarian yields.

result, in addition to the expulsion of the field of one leaves important from the rural population, without it meant that an economic alternative in the cities was offered to them better, is that, at the moment, Algerian agriculture satisfies less with 2% of the national nourishing necessities (it see section 1.5).

In 1987, the great agricultural conglomerates were divided in small deprived agricultural companies. Since then, certain importance to agricultural products has been granted again as the fresh olive oil, wine or dates (that are the main product of export after hydrocarbons), although have not been able to surpass the two basic restrictions of the Algerian agricul­tura: the dependency of the rainfall, very variable (only 3% of the national territory, about 7 million hectares, are cultiva­ble) and the barriers to the export to the European markets that the Common Agricultural Policy of the European Union imposes, that makes difficult the recreation of a national agro-alimentary industry.

1.4 Population, urbanization and unemployment

Algeria it has a population considered by the World Bank in about 30 million people in 1997 (the last made census data of April of 1987), of who 75% have less than 30 years (in 1962, the country had 10 million inhabitants). More than half of her it lives in urban centers, mainly in the suburbs of the three great cities (Algiers, Orán and Constantina), in conditions of serious deficiencies of infrastructure, specially of house (the World Bank esteem that the hacinamiento arrives, in many districts, to an average of eight people by house of three pieces). The young people feel excluded from the modernization and until from the simple possibility of constructing a family, after having lost their traditional keys of rural socializa­ción.

If well it is certain that the strict policy of demographic control applied by the Algerian government has rendered its fruits, reducing rate of population increase to 2.7% annual (it seems that in both last years it would have fallen below 2%), the extreme youth of the Algerian population it foretells a continued increase of its population (the projections indicate that in less than fifteen years it will exceed 40 million) and causes that the increase of the active populace surpasses significantly to the population increase, with a rate of 4 % annual (about 250.000 young people get up every year to the work market). Although the rate of unemployment officially recognized is of 28% (2.100000 people), the real numbers surely are superior, and in any case they show a tendency the rise.

These two structural demographic tendencies (the pressure demográfi­ca, mainly if it is compared with around 300.000 km2 equipment that barren Algerian geography offers, a coastal strip of thousand two hundred kilometers in length and about 250 km wide; and the dynamics of the active populace) already imagines the problematic one that must consider any economic approach to the Algerian crisis, as much internally as from a perspective international and, more concretely, European.

A internal scale, the main challenge that confronts the Algerian econó­mica policy is the one to generate economic opportunities - use for those young people who flow in enormous amounts to the market of Algerian work. In fact, they constitute all a social category already - the one of hittistas or aguantaparedes -, and without doubt forms the sociological substrate of which the Islamic guerrilla nourishes itself.[ 5 ]

It stops the Mediterranean countries of the European Union, the demographic and social dynamics of Algeria raises the phantom of the massive emigration. In the case of France, the familiar plots of the 800.000 immigrants of Algerian origin who live the country put a face to him in the daily life to this fear.

1.5 The outer dependency

If by something the Algerian economy is characterized is by extraordina­rio potential destabilizing of the outer sector.

Dependency commercial

undesired consequence - but inevitable of the model of development that has been described was an outer defendant dependency of the Algerian economy, as much by the side of the exports like by the one of the imports. The currency flow derived from the hydrocarbon sale caused a chronic overvaluation of the Algerian currency, which constituted a fort incentive for the import in damage of the national production (the well-known phenomenon of syndrome Dutch). Parallelly, the external restriction plasma­ba in the controls of changes, that strictly lmitaban the access to currencies, giving rise itself to a black market (in 1994, for example, while the official parity was of 41.7 to dinares/dólar, in the black market one quoted over the 65 to dinares/dólar). In fact, the income by exporta­ciones (together with the remittances of emigrants, that have gone disminuyen­do from the Seventies) have not been enough, in the three last decades, to avoid the endemic deficit of the balance by current account.

By the side of the exports, more from 95% of the currency income of the country comes from the hydrocarbon export (dividi­das, approximately by thirds, between crude petroleum, natural gas and liquefied natural gas), with which they are to albur of the swings of the international markets of these raw materials or of the quotation of the dollar. More than two third parts of this production he is destined to western Europe, irreplaceable market for Algeria.

By the side of the imports, as much the basic product consumption as the fundamental insumos of capital for the industry must be concerned. Algeria nowadays concerns 70% of the wheat that consumes (he is the first world-wide importer of hard wheat), the 100% of the tea, the coffee and sugar, 97% of dry vegetables, 95% of the oil[ 6 ] and 90% of medicines. The import of these basic supplyings has become a strategic-political preoccupation of first order of any Algerian government, as well as a structural factor of demand of currencies (that 30% of the exports absorb. The successive devaluations and the irreplaceable character of an important part of the Algerian imports caused that, in 1995, these supposed 50% of the GIP (the double of the normal numbers during the previous decade).

This dependency is centered specially in the countries of the European Union (particularly Italy, France and Spain), with which Algeria concentrates the two third parts of its commercial interchanges, as much of export as of importa­ción.

Macroeconomically, 1996 supposed an historical landmark for the Algerian economy, since, for the first time, it was able to surpass his endemic deficit of balance by current account, reaching a surplus for the sum of 4.200 million dollars. But this surplus has somewhat of mirage: it depends directly on the international quotation of crude petroleum[ 7 ] and it camouflages the fact that the effective imports stay depressed below the real demand thanks to the policy of structural adjustment and the controls of changes[ 8 ].

A this dependency of the international markets adds the extreme Algerian vulnerability to the fluctuations of the dollar, that vehicula as much by its effect on the price of petroleum like by being denominated in dollars, directly or indirectly, most of the imports and the thickness of the external debt.

Dependency financier

Weigh to the enormous oil rent, the model of intensive industrialization in capital, directed by the State and based on the purchase of foreign technology, together with the intense dependency of concerned products, originated an increasing external indebtedness that, at the end of the Seventies, ascended to 19.365 million dollars.

This it turned to Algeria an extremely vulnerable country to the evolution of the types of interest the international markets and to the type of change of the dollar, in which they were denominated most of the credits, as it is left patent if one thinks that, in the fifteen later years, the debt ascended until the 32.610 million dollars that reached in 1995. After the three successive renegotiations, its volume has been reduced to 27.500 million dollars. These renego­ciaciones became imperative when, at the beginning of the Nineties, the service of the external debt got to absorb 77% (in 1991) of the income by exports, a situation that has only improved slightly after the renegotiation of 1994, mante­niéndo­se, however, at levels next to 40%.

1.6 Conclusions

main conclusion which it is possible to extract of the "model of poscolonial development" in Algeria is that it did not generate a process of genuine economic development, defined in terms of a combination of maintained economic growth, significant transformation of the productive structure and improves of the level and the quality of life of the population. Although between 1973 and 1985 Algeria experienced a fast economic growth thanks to the rents of petroleum, most of the population it was excluded from its fruits, and the industriali­zación of the economy wished by the Algerian economic authorities colapsó as soon as let flow the currency investments necessary to acquire the technology and the goods of equipment of the industry. In Graph 2 it is possible to be observed how, although in the four first lustrums of independence the Algerian productive structure seemed to evolve slowly - although towards a own industrial guideline of a developed country, in the three following this tendency has been truncated, experiencing a certain backward movement towards the colonial productive structure.

Datos                                               1960  1980  1995

Agriculture                                               21      10      13

Industry Manufacturing               9        10      9

Rest industry                               22      44      37

Services                                          48      36      41

Source: World Bank, Report on the world-wide development

After to register the New Economic Order the International proclaimed by the UNCTAD in 1974, Algeria was turned a paradigmático example of underdeveloped, dual economy, extraverti­da, specialized and disarticulated. In synthesis, Algeria is an economy multiply employee of the international markets of their only exportable product (the hydrocarbons), of the international credit (and the condicionalidad that takes prepared the necessary periodic renegotiation of its debt) and of international suppliers for their basic products of consumption (arranged in addition to give facilities of commercial credit).

Although the redistributive social policy applied by the State has located to Algeria between the countries with a Indice de Desarrollo Humano (IDH) average, its human development does not correspond with the degree of reached economic development, as it is deduced of the difference between the category that occupies according to the GIP per capita (put 65 of the world, in parity of the spending power in dollars) and its category according to the IDH (put 82), that is of -17 (-37 in 1990; The PNUD, 1992, 1997). This indicates a deficient process of transforma­ción of the economic development developing human.

If it is certain well that the nominal fall of the GIP by inhabitant (who has happened of 2.590 dollars in 1986 to 1.650 dollars in 1994, according to the World Bank) must fundamentally to the devaluation of dinar, in a country in which most of the consumer goods they are concerned and in which they have liberalized most of the prices, it is a relatively good indicator of the capacity of real purchase of the population.

distorsionador effect of the oil rent and the dominion of the main economic agent - the Be in favor of a military and tecnocrática elite crystallized in a corruption very extended and in which the main circuits of distribution of the rent and the wealth, instead of obeying to the economic flows or the explicit model of distribution, had like axis the clientelism and the nepotism. more popular expression of this climate of corruption is the saying of which "to rob to beylik (used term to talk about to the Algerian State during the Ottoman occupation) it is not to rob ", and most dramatic for the Algerian economy estimacio­nes officials (always conservado­ras) of 37.000 million dollars of flight of capitals. "trabendo" or contraband, particularly with Marrue­cos and France, it has established authentic parallel channels of distribution to those of the State and it has been elevated in a true form of life with its own subculture for whole segments of the population.

rent was concentrated mainly in the small proportion of the population (not more of a 20 percent) integrated in the socioeconomic system, constituted by the political elite, the government employees and the Army, a small private bourgeoisie and the class formed by the industrial workers, in addition to the intellectuals, whereas the rest of the population - impoverished infraurban population, unemployed farmers, young people it was marginalized. The social State inicial­mente conceived by the regime of Bumedian, that canalized part of the rents of petroleum to the financing of social necessities like the house, the subventions to products of first necessity, the health and the education, was overflowed by the population increase and the necessities of economic adjustment derived from the own model of chosen development. The abandonment to its luck of the impoverished masses of the suburbs of the cities originated displeased extending and turned the social question, more than the own exigency of democratization, in the touchstone of all the political transition undertaken by the regime[ 9 ].

In October 1988, this displeasure exploded in a big wave of popular revolts that forced the regime to reframe their political strategy, gave rise to a timid political opening and democratization in the political order (that culminated, as it is known, with the electoral triumph of the FIS aborted by the military regime). The deep motivation of these "revolts of the bread" obeys to a as simple slogan as the scarcity and the basic shortage of foods and other necessities.

But, of the economic scope, the answer consisted of intensifying a policy of adjustment characterized by the liberalization of markets and the desregula­ción of the most sensible sectors and by the application of a strict program of economic austerity imposed by the technicians of the International Monetary Fund (the IMF). The repression of the revolts and the new return from nut to the desperate economic situation of the Algerian population paid the capitalization of the displeasure on the part of the only political force that was formed like real alternative to the existing regime: the islamistas parties.

Even to risk of simplifying, it is possible to see in the Algerian social crisis a process of conflicting reassignment of the social and political power in the new frame of a market economy that are displaced to the prevailing authoritarian estatismo in the last 30 years, without being able to supplant, nevertheless, elites the military, tecnocráticas and administrative characteristics of the same one. From this perspective, the solution only can come from the scope of the political economy, and not of merely formal a political process or a military solution to the conflict. Even recognizing the limited paper that the international cooperation can carry out in this process, the distributi­vos effects of the activity of multinaciona­les oil which they have settled down in Algeria in this decade and the possible impact of the technical, financial and commercial cooperation with the European Union can influence in the movement of the Algerian civil conflict.


2. importance of Algeria

To margin of the academic questions that the Algerian problem raises and of the risks derived from the instability in a geographically so next region, are at least two reasons for which what is sucedien­do in Algeria it has an extraordinary trascen­dencia for Europe, not only from the point of view of the diplomacy, but even of the internal policy: European power dependency with respect to the Algerian natural gas and the phantom of the massive emigration to Europe and I infect of the "badly Islamic one".

2.1 Gas provision

projections of evolution of the demand indicate that, of here to year 2000, the European gas consumption will present/display a rate of accumulated annual growth of 3%.

If we took the case from Spain, according to Plan Energe'tico Nacional (PEN), between 1995 and the year the 2000 gas consumption in Spain, that already supposes a 11% of the consumed primary energy in this country, will have been increased in a 71% (until the 12.000 million m3 annual); of this national gas consumption, at the beginning of 1997 36% are canalized through gasoducto Euromagrebí, to which another 24% of concerned liquefied natural gas of Algeria are also added (that, altogether, contributes more of 60% of the gas imports). The PEN anticipates that the increase of the gas consumption serves to supply to the domestic consumption of the great cities, the industry (that supposes 61% of the consumption) and the co-generation of electrical energy. If considers, therefore, that the Spanish power model has been planned on the base of a sensible increase of the gas consumption sustained in an abundant supply of Algerian natural gas (an alternative power plant less polluting agent than the petroleum, which it allows in addition to reduce to the dependency respect to this hydrocarbon that still contributes 53% of the national power consumption, particular­mente if the little political viability of the nuclear energy like alternative considers), and that another 21% of the gas necessities come from Libya, will be understood the power risk that for Spain it supposes the Algerian civil war. The same can be said of other countries of the south of the Mediterranean, specially Italy.

In the rest of the European Union, the gas consumption is proporcional­mente greater, exceeding 20% the consumption of national energy, although the degree of dependency with respect to the Algerian gas is smaller (thanks, among other things, to the ramifications of gasoducto that comes from Siberia and to the greater proximity of the gas of the Netherlands, although the production of this country will decline as of year 2000 by agota­miento of the reserves).

2.2     the phantom of the massive emigration and I infect

demographic pressure, the social malaise and the lack of economic opportunities are other so many factors that can impel the Algerian population to emigrate (the estimations indicate that 400.000 have left Algeria in the last five years). The direct relation between the uneasiness climate, not to mention terror, that reigns in the Algerian society, the lack of personal economic perspective and the migration has been shown, for example, in the fact that France, the natural destiny of the thickness of the Algerian emigra­ción, indeed imposed restrictions to the entrance of Algerian citizens (which until then they did not need visa) in 1988, the year of the revolts. Since then, the immigratory policy has not let become hardened.

danger of I infect can be understood in a double sense: in the first place, I infect of the Islamic problem to Europe, propagated through the Algerian population in Europe. But, by serious that this danger can seem, less worrisome it is not the possibility of I infect of the islamista phenomenon to neighboring countries, like Tunisia or Morocco, equally next to Europe and with demo­gráficas, social structures and economic similars to those of Algeria.


 

3. Evaluation of the economic reforms

fall of the prices of petroleum and, therefore, of the income by exports it caused a recession that was translated in negative increases of the GIP by inhabitant between 1985 and 1994. To the estrangu­lamiento of the balance of payments and the fall of importacio­nes the increase of the load ratio of the debt was added to him until intolerable levels (the projections for 1994 indicated that the service of the debt would surpass to the currency income by exporta­ciones). The contradictions of the model of Algerian development became untenable, until the point to force the regime to undertake the reforms.

3.1     structural Ajuste

Pressed through international the economic crisis, the depression of the prices of petroleum (on which the prices of the gas are also indicated, and that passed of 44 dollars the barrel at the end of 1979 to 13 dollars in 1986, to begin to appear later and to become stabilized during several years in a level of between 16 and 18 dollars) and the fallen consequence of the income of currencies, as well as by the enormous exigencies of the service of the external debt, the regime undertook first progra­ma of reform made specific in the Plan 1985-1989 (seventh from independence), in which it as much granted a greater paper to the private capital in the industry as in agriculture.

With the brief parenthesis of the Government of Belaid Abdesselan (1992-1993), that it tried to recover the socialist essences of the Algerian model, the rate and the configuration of the economic reforms have advanced since then to are of the negotiations with the International Monetary Fund, key for the renegotiation of the external debt, the concession of commercial financing and the arrival of foreign investment. Thus, in 1988-1989 a first agreement was celebrated stand-by of 18 months, followed in 1991 by a second agreement which it supposed a radical devaluation of dinar, that happened of 6.7 to dinares/do­lar in 1988 to 12 in 1990 and 21 in 1991, and introduced a drastic cut in the public subventions, whose cost had reached in 1991 6.5% of the GIP like reaction to the social revolts of 1988. These subventions were replaced by a personal social subsidy of 120 dinares monthly from which something more than half of the population benefitted, whose benefit it was restricted in 1996 to more of a million people (what it turns to him an authentic social wage for the poorest classes), increasing its quantity in a 500%, until the 15.8 monthly dollars.

Once concluded these agreements, between 1988 and 1993 the Algerian authorities resisted to ask for a renegotiation of the debt, partly to maintain internally their image of independence before autorida­des international financiers (sensitivity before any form of neocolonialismo is specially acute in Algeria) and partly not to see itself forced to apply social­mente explosive reforms. But the strong Algerian depen­dencia of the importa­ciones of basic products and its difficulties of balance of payments extremely make it vulnerable to any restriction of the commercial financing of their international partners and, therefore, they force it to be put under the condicionali­dad imposed by these before any disturbance of its trade balance.

Thus, the increase of the types of interest and the type of change of the dollar and the victory of the credits contracted within the framework of the first program of adjustment, as of 1993, caused a new crisis of liquidity. That forced to the Algerian regime to go to its creditors internaciona­les to ask for a reescalonamiento of its debt.

Like previous condition to the renegotiation of the debt, the indebted grouped international public in the Club of Paris forced Algiers to accept a plan of structural adjustment defined by the IMF, that took shape in a third agreement stand-by celebrated with that institu­ción in April of 1994-April of 1995, with vocation to prorogue itself more during three years. As a result of this agreement, in May of 1995 Algeria it received from the IMF a credit of 1.800 million dollars for Extended Service of the Bottom.

priorities of the Program of Structural Adjustment were centered in the liberalization of the economy and the outer opening and the macroeconomic sanea­miento, particularly in terms of monetary rigor and control of the public deficit. A new devalua­ción of dinar of 40% in March of 1994 was applied (establishing the parity in 36 to dinares/dólar), that seriously deteriorated the relation of intercam­bio of Algerian products. Parallelly, the foreign trade and the prices liberalized, and in 1993 a favorable code of investments for the foreign investment was adopted (not only in terms of guarantees, but also of incentives like fiscal exemptions), that is not applied solely in the sector of hydrocarbons. The deficit of the State, that was of 8.7% of the GIP in 1993, was reduced to 4.3% in 1994, until reaching a surplus of 3% in 1996 that allowed to initiate the amortization of a part of the main one of the debt. This was obtained reducing all a series of subsidies to the consumer goods (some of first necessity) and increasing the prices to the consumption of the energy basically.

After to be put under the exigencies of the IMF, Algeria obtained the reescalonamiento in two phases of 10.000 million its external debt to a term of fifteen years, with four of deficiency. In 1995, it obtained a complementary agreement of renegotiation of its debt with the private banks of the Club of London, by a total amount of 3.200 million dollars.

corolario of the program of adjustment and liberalization constitutes the program of privatizations undertaken in April of 1996, this time under the auspices of the World Bank (in exchange for a credit of 350 million dollars). Directed in principle to privatize more than 500 public companies, in its majority small and medium, it is advancing with many difficulties (in 1997 the privatization of one fourth part of the affected companies had been culminated), although apparently inexorably.

3.2     Student model

"brave and determined application of the duro program of adjustment and reform"[ 10 ] structural on the part of the Algerian Government it seems to have given its fruits, at least in terms of macroeco­nómicos balances. 1997 have been the third consecutive year of positive growth of the rent by inhabitant (the growth of the GIP has become stabilized around annual 4% in the last triennium) after one decade of negative growth. The inflation seems to be domeñada, after happening of 29.6% in 1995 to 8% in March of 1997. The State has been able to eliminate the public deficit, and in 1997 it contributed by second consecutive year to the national saving. In case not outside suficien­te, Algeria can be boasted of of to have obtained in 1996 a surplus of its balance by current account of 4.200 million dollars, that seem to solve their endemic external imbalance. Thanks to this good behavior of the balance of payments the internacio­nales currency reserves have reached a volume of 8.000 million dollars (almost for a year of imports), practically the 1995 double that those. All it has been worth him to Algeria the applause of the International Monetary Fund and the World Bank, of which model has become student.

3.3     social Costs

Thus then, everything indicates that Algeria is in the footpath of the reestablishment of the macroeconomic balances and the Algerian regime has done all the possible one to receive parabienes of international the financial community. It it would be a reason for satis­facción if not outside because the program of structural adjustment has exacerbado the main structural deficiencies of the model of Algerian development to take care of basic the necessities social of its population and has contributed to spread "a servile" image of the Algerian Government with the international organisms, factors both that have encouraged a social explosion that, in certain way, has been canalized through the islamista guerrilla.

rent by inhabitant, who in 1986 was of 2.590 dollars, with an average growth of 3.5% in the twenty previous years, fell to 1.600 dollars in 1995, with an average fall of annual 2.4% in the ten previous years. Altogether, between 1980 and 1993 the PNB by inhabitant fell to an accumulated annual rate of 0,8%. Although it must partly to a purely monetary phenomenon as it is the devaluation of dinar, is significant in a country in which most of basic products they are mattered and, like consecuen­cia of the liberaliza­ción, the internal prices more and more reflect the international prices of the merchandise.

elimination of the subventions to nutritional products (only it is left the one of milk, and in 1998 the disappearance even of the subventions to medicines, once gratuitous is predicted) and the successive devaluations of dinar generated a process inflaciona­rio that, although has been bridled by means of a strict control of the monetary mass, significantly reduced the power of purchase of the population.

that it is more significant, the application of the reforms estructura­les has affected to social layers until now safe from the worse defects of the Algerian economic model, worsening the problem of unemployment and the social exclusion. The contraction of the investments has caused a big wave of dismissals in the industry that has impoverished to a part of the working class, that has been assimilated the infraurban population without use. In addition, the Program of Structural Adjustment anticipates the elimination of about 170.000 uses of the public sector before half-full of 1998, that will also be united to more than two million unemployed officials who populate the cities.

By another part, the wage-earning workers of the industry and the Administration who have been able to conserve their use experimenta­ron a reduction of their real wage of a 35% between 1993 and 1996.

In these circumstances, until the own Department of State of the United States recognize in a report that "in last instance, the success of the reform policies will depend on an improvement of the turbulent political situation and security". The problem is in which this situation is consequence of a social malaise that the reforms have not made but aggravate and extend to new layers of the population.


 

4. Final perspective and considerations

Without to reduce importance to the positive impact of the macroe­conó­micos balances like previous requirement, any program of social and economic development in Algeria happens through two conditions. First, obvious, it is to recover social La Paz, which only can be obtained of lasting form by means of the dialogue between the two real forces of the country: the Army and the administrative-economic apparatus, on the one hand, and the islamistas political groups that, according to the last elections celebra­das with certain democratic guarantees, count on the majority support of the population.

In the economic slope, the structural constant of the population increase (in the 2010 Algeria years proyecta­da of 43 million people will have a population, superior to the one of Spain) and the own social peace demand to center the efforts in the generating activities of use, which leads inescapably to a revitalización of agriculture. This, in addition, can contribute to palliate the chronic deficit of the food production, that supposes a heavy load for the Algerian trade balance.

But the dista panorama of being flattering. In 1999, the term of deficiency expires granted by the international creditors, and will return to be increased the service of the debt that, like so many other countries, has become a structural restriction to any process of development. To more long term, although the natural gas production presents/displays a great dynamism, the proven petroleum reserves only reach after twenty years, which augurs a possible reduction of the exporting capacity in more of a third.

Everything it forces Algeria to look for a new guideline of joint in the world-wide economy (beyond the hydrocarbon sale), which in its case only can obtain by means of a greater integration with the economies of the countries of the north and the south of the Mediterranean. But for it it is necessary the development and generation excessive of production exportable of an own technological base (in ample sense, including technical questions as of culture, organiza­ción...). Sectors exist, as the manufactures of leather and skin, the textile industry and own agricultu­ra, that offers an ample potential of use creation. But to compete in those sectors forces to resign to a rentista economic culture and to reorient the investing effort and the economic incentives towards the intensive activities in manual labor.

By another part, with all its defects, the policy of industrialization of the Seventies created an industrial base that is crumbling quickly, but for that reason less nonreal. To squander definitively would suppose it to throw to lose a tremendous historical investing effort, reason why it is necessary to recover, on new bases, whatever of viable had the strategy of original industrialization. To put aim to process of dissolution of his capacity industrial and to develop formulas imaginati­vas to mobilize it in favor of development local and - why of regional integration with its neighbors of the Maghreb he is not another one of the immediate challenges that the people in charge of the Algerian policy confront económi­ca and, not to a lesser extent, the people in charge of the policy of euromediterránea cooperation of the European Union.


 

5. paper of the European Union

It stops to conclude, turns out pertinent to make some summary considerations on the paper that has carried out and that can carry out the European Union in the Algerian context, that by itself it would require of a separated study.

veintiún years of economic cooperation between passed the European Union and Algeria from the company/signature in the first bilateral agreement, in 1976, have served to state that the capacity of the European Mediterranean policy to influence in Algerian economic dynamics very is limited, given the absolute superiority of hydrocarbons in this process. In fact, an evaluation report[ 11 ] elaborado  in 1989 for the Economic and Social Council of the EEC frankly described as "dissapointing" the technological cooperation, of investiga­ción and development and industrialist with the Mediterranean countries, indicating that the hydrocarbon commerce had governed at any moment by criteria of strict commercial interest, without these products got to be the key of a cooperation for the development of the producing countries like Algeria, or at least of a greater intensity and diversification of the interchanges between those countries and the Comuni­dad. In the case of Algeria, the policy of communitarian cooperation has been centered in the top priority, somewhat myopic, to support at all costs to the governing regime, before the fear to that the social instability or the access to the power of the islamistas put in danger the investments of the European companies or the transmediterráneo hydrocarbon flow. On the other hand, it is evident that the unilateral opening of certain markets has not served to harness a diversifica­ción of the Algerian exports.

In this context registers the introduction, in 1990 (4º financial Protocol, already within the framework of the Mediterranean Policy Renewed), of the cooperation in the matter of economic reforms, destined to complement the credit attendance within the framework lent of the programs of structural adjustment of the IMF and the World Bank and that, objetivamete, have contributed to the macroeconomic cleaning, but also to maintain the financing of the regime without in the last making no own contribution to the solution of the true accumulated económi­cos problems by Algeria 35 years.

In the first weeks of 1998, the European Union, more and more overwhelmed by the fierceness of the Algerian conflict, has returned to direct its attention towards the definition of its strategy in this scope, before the reticent attitude, when not directly hostile, of the Algerian authorities. The result has been frustrating: a certain inhibition, materialized in the "elevation" from the subject to the Nations United, and diffuse references to the necessity to put in practice mechanisms of "humanitarian aid" that seem to remove from context the new doctrine of the humanitarian intervention in the last arisen quinquennium in crisis like the one from Rwanda, Sudan or Yugoslavia. But Algeria is a completa­mente different case: neither its population is itself threatened by a humanitarian catastrophe nor the country lacks sufficient resources for the development. What lack makes to surpass the climate of terror and the social disarticulation is to impel the political vertebra­ción -- me­diante the dialogue with the islamista opposition and the democratization and to please mobilize the rents of petroleum in a strategy of maintained development that favors to the set of the population.

With everything, the European Union has a paper that to play.[ 12 ] Actualmen­te, the cooperation in the economic plane between Algeria and the European Union happens necessarily through the conclusion in an Agreement of Euromediterráneo Association (like already celebrated with Tunicia and Morocco) that makes specific the general frame of cooperation defined in the Euromediterránea Conference of Barcelona of 1995, whose negocia­ciones are blocked. Although this agreement is centered logically in power aspects (Sid Amhed, 1996), would not be of more than it raised questions key for any strategy of future development of Algeria, as they are:

the lightening of the external debt, whose reduction or reconversion is contemplated in Renewed the Mediterrá­nea Policy. To reduce of permanent way the service of the debt is a previous requirement to release the resources necessary to impel any policy of reforms that goes beyond the mere economic cleaning and liberalization of the markets, as well as to reorient inversio­nes public of the sector of hydrocarbons (or, which is the same, of the currency generation) towards activities that create job;

the technical and financial cooperation in the agricultural sector and the diversifi­cación of the exporta­ciones. Although any increase of the Algerian agricultural exports to the European Union unavoidably has to be modest, the opening of the communitarian agricultural market to Algerian products is a step necessary to promote progressive reequilibrio of the comer­ciales intercam­bios;

the promotion of progresi­va horizontal integration with Tunisia and Morocco (reinforced thanks to the gasoduc­tos already, although the intrarre­gional commerce between the magrebíes countries continues being only one small fraction of less of 5% of its external interchanges), without which the creation of a euromediterráneo economic space would make no sense and would reproduce schemes of neocolonial relations económi­cas.

In all case, two great alternatives of cooperation between the European Union and Algeria, hardly comple­mentarias are outlined in the horizon.

By a side, the concept of codevelopment, more and more sharpened and with an increasing predicament in France, the local part of a combined management of the flows from emigrants to Europe (the immigrants would cnvertirían themselves in authentic agents of development in their countries of origin) and promotion of iniciati­vas of development and creation of use of all the social agents (States, companies, universida­des, ONG) to create the conditions so that the potential immigrants can permane­cer in their country or return to him. Although somewhat voluntarista, among other things because public requires the mobilization of greater financial flows, it seems more fertile than proyecta­da creation, within the framework of the Eurome­diterránea Association, an area of free commerce for the year 2010, that is polarizing most of the comunita­rios efforts of cooperation within the framework of Program MEDA. The total liberalization of the intercam­bios, that would inspect a somewhat unilateral character in the case of a country with similar degree of specialization of his exportacio­nes in the sector of the hidrocarbu­ros (97%) and little exporting potential in other branches of the production, would arrive just at the moment at which foreseeably a flexion of the income by exports of hidrocar­buros will take place and the Algerian population will reach its point of maximum creci­miento. Since it has been indicated, "the effects of the creation of a zone of free commerce between the Mediterranean UE and countries would be marginal for Europe and massive for these countries"[ 13 ]. In any case, one is effects extremely indeter­mina­dos and, by inherent dynamics to the market, hardly reversible, which forms all the project of creation of the area of free Mediterranean commerce like a extrema­damente dangerous experiment of international social and economic engineering. It does not seem to be éso what Algeria needs more at the moment.


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SPIEGEL, Der (1998), "Algerien: Mörderische Sippenhaft ", Der Spiegel nº 3/1998. Hamburg.

THIEUX, L. (1996), "the French Policy towards Algeria: between the islamista fear and           commercial interest ", Papers nº 59/60, October of 1996-March of 1997.

TLEMÇANI, Rachid (1995), "approche stratégique of violence", Cahiers of l'Orient nº 39/40.

 

U.S. DEPARTMENT OF STATE (1994), Algeria: 1994 Country Report on Economic Policy and Trade Practices, Bureau of Economic and Business Affairs, Washington.

VV.AA, (1997), The Middel East and North Africa 1997, 43ª ed., Europe Publications Ltd., London.



     [ 1 ] The nationalization of the Algerian oil sector was carried out in two phases: one first in 1967, that affected to the North American companies and the Shell, and one second, in February of 1971, of the two French companies that operated in the country, although in this last case was limited 51% of its capital.

     [ 2 ] Only the plan of investments of Sonatrach anticipates necessities of 18.000 million dollars in five years to increase the income by hydrocarbon export until the 13.500 million annual dollars to prices of 1996 (Goumeziane, 1996).

     [ 3 ] BP Statistical Review of World Energy, June of 1996.

     [ 4 ] rentista mentality of the Algerian authorities when focusing agriculture is left patent in boutade putting in mouth of Bumedian: "if we needed tomatos, we will buy them to Morocco "(mentioned in Goytisolo 1997).

     [ 5 ] Thanks to the fundamentalist Islamic guerrilla, these young people, who in most of the cases are monolingües in Arab and are imprisoned of the frustration and the boredom, "stop being vague apt ones only for the shoddy work, contraban­do and the small delinquency in gang to become, thanks to the prédicas of the islamistas, in the combatants of the new one jihad " (Goytisolo 1990, p. 27).

     [ 6 ] "the old grain dealer of wheat of the Romans in time of Tito Livio was sacrificed. There where the old civilization of the olive tree reigned, it is stewed today with oil concerned of colza or sunflower "(Zayka Daud, mentioned in Goytisolo, 1994, p. 13)

     [ 7 ] In the moment for writing this work (January of 1998), the international prices of the crude one return to locate themselves below the 14 dollars, a level that ten years ago triggered the Algerian crisis.

     [ 8 ]          Goumeziane (1996) number in 6.000 million annual dollars in next the five years the increase of the imports necessary to satisfy the necessities with the population.

     [ 9 ] Goytisolo (1994) has made see "one first and very serious signal of alarm" on the disarticulation of the Algerian economy: "from half-full of the sixty, while the Moroccan and Tunisian workers sent their savings to Tunicia and Morocco for construir­se a house or to open a commerce, Algerians they invested its money in France and they preferred to bring its family there. Its lack of confidence in the future foretold what later it happened."

     [ 10 ] Declaration of the Executive Directory of the IMF of 27 of June of 1997, within the framework of the consultations anticipated in Article IV.

     [ 11 ] M. Amato, The Mediterranean policy of the European Community.

     [ 12 ] Although it has affirmed that "no outer pressure will be able to modify the sociological process in course" (Naïr, 1998), does not prevent that the present policy towards Algeria, obsessed to guarantee the security of the strategic supplyings of petroleum and gas and the interests of the companies of the sector that have invested in the country cannot delay it, nor that one cooperation more active within the framework of the Mediterranean Policy it cannot praise/pour off it in one or another direction.

     [ 13 ] Gérard Kebabdjian, mentioned in Khader (1995).

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