CHAPTER FOUR: ECONOMIC GOVERNANCE AND MANAGEMENT improved transparency. The decentralisation of the budgetary exercise and the increase in transparency is noteworthy. Furthermore, efforts to decentralise the budgetary process have accompanied the opening up of the political arena and democratisation of the country. The efforts to stamp out corruption should also be mentioned. All in all, Algeria has strengthened its openness towards the region and the world. 397. At this point, we need to identify areas of economic governance that would contribute to the enhancement and success of this transition towards economic decentralisation and competition. In this perspective, the transition requires appropriate responses to certain major challenges, which include: (i) Establishing a stable macro-economic framework: extending the growth base and increasing its sustainability in the context of single petroleum production; controlling inflation in the context of price liberalisation and a surplus of foreign exchange reserves; and improving personal income without causing inflation or living in fear of a fall in oil prices; improving the balance of payments in substance by diversifying exports, which today have been more or less reduced to a monopoly; and avoiding dependency on imported food; and ensuring healthy financing of industry from banks without having management strings attached and with an element of calculated risk within a stable economy. (ii) Public finance: ensuring that public expenditure is as autonomous as possible by depending less and less on income from the oil industry, while respecting national and local priorities, transparency and fairness between socio-professional categories and local communities within the context of reform of the tax system. (iii) Implementation of sectoral policies: organising the transition from state hand-outs to a country in which corporate and social entities face their responsibilities together; diversifying economic activities in industry, agriculture, tourism, new technologies, and so on; and increasing employment within these sectors, and especially reduce the number of unemployed youth. (iv) Corruption: organising effective systems for credible dissuasion, taking sanctions against acts of corruption and money laundering. 131