CHAPTER FOUR: ECONOMIC GOVERNANCE AND MANAGEMENT 430. Industrial policy. Algeria has a significant and complex industrial base, but the contribution of this sector shrank to 7 per cent of the GDP with the transition to structural adjustment plans and an open market system. Numerous reforms had no effect. The present approach is to launch a medium-term and long-term industrial strategy that is being finalised following the national conference held on 26–28 February 2007, which was well attended by the private sector. Strategic choices relate to industrial clusters, the corporate economic environment, direct foreign investments, and system updates. The sectors are selected according to criteria drawn from national accounts and priority is given to the following: agriculture and food, fertilisers, mechanics, automobiles, petrochemicals, technology, pharmaceuticals, iron and steel, etc. These chosen sectors are placed in the world economic context and the necessary parallels are drawn to prepare to specialise them for specific niche areas. This is the only way that special overriding advantages can be given to the state. 431. Access to industrial funds. Various measures have been taken to remove this obstacle, in particular: revision of management methods for industrial areas, regularisation of the legal regime for landed property, development of services from outside of the industrial zone, etc. An agency for lands was recently created although the implementation decree has not yet been passed. However, the problem of access to land is very real for nationals and foreigners alike and action is awaited from the government and other organisations representing the business community. 432. Development of SMEs. SMEs represent a very large portion of the economy and an orientation law was passed in their favour in 2001, offering various promotion mechanisms, assistance and support, such as guarantee funds, capital risk funds, support and mentoring centres, the National Agency and the National Fund. In addition, there are many support and capacity-building programmes in collaboration with the United Nations Industrial Development Organisation (UNIDO), the EU and the UNDP. 433. Development of the crafts industry. A programme of action was introduced to reorganise the crafts sector in all its forms (arts, services and production). The sector has generally attracted larger numbers of people, growing by 45, 40 and 25 per cent respectively, as a result of organisational, technical, fiscal and financial incentives. 434. Employment promotion (see also Chapter Five on corporate governance in this report). Stimulated by demographic changes and an increase in the demands of women, the demand for employment will undoubtedly increase considerably while the supply of jobs remains dependent on economic growth. With a view to managing this problem, agencies (for employment, youth, micro-credit and social development) were set up and many provisions made to promote part-time and full-time employment and to develop employment insurance: the National Unemployment Insurance Fund (CNAC), occupational rehabilitation and assistance to distressed businesses, and the creation of self- 140