EXECUTIVE SUMMARY (especially on the International Criminal Court) and lift all reservations on the international instruments already ratified, particularly those relating to international terrorism and other organised crimes; (ii) to pursue the policy of peace and national reconciliation, strengthen the Commissariat à l‟amazighité, to establish a legal and institutional framework for dealing with immigrants; (iii) to strengthen the constitutional guarantees of separation and balance of powers by opting for a political system that reduces the potential for conflict between institutions and clarifies the political responsibilities of each organ of state; (iv) to pursue measures for modernising the public service, notably by reorganising its services and defining work stations and responsibilities, and by introducing participatory, objective and effective staff assessment and motivation; (v) to implement the national anticorruption strategy effectively and strengthen the capacities of the National Anticorruption Organ established by Decree 6-413 of 22 November 2006 within the Presidency, as well as the structures responsible for public expenditure control and for fighting corruption. 3.2 Economic governance and management 3.20 Over the past ten years the Algerian economy has exhibited sustained growth, generally higher than 5 per cent. Inflation which had been contained to lower than 3 per cent until the end of 2006 has experienced a peak due to the rise in food prices. Prudent management and revenue increases following the rise in international prices of oil and petroleum products prompted the authorities to strengthen an expansionist budget policy and implement two successive growth programmes (2001–2004 and 2005–2009). The improvement in its external accounts, combined with high oil prices, encouraged Algeria to accelerate the repayment of its debts, thus improving its public debt situation. 3.21 In relation to its macro-economic framework, Algeria has made encouraging progress in terms of the following: growth, which has remained stable and high; good rates of savings and investment; the halving of employment; reduction of the inflation rate to 3 per cent; balanced public finance, based on prudent revenue estimates; external accounts that have remained in surplus; the accelerated repayment of external debt; and monetary stability. All these factors enhance the chances of other economic policies in Algeria and, in particular, reform policies. The major economic programmes launched in 2001 and 2005 seek to pave the way for achieving the aspiration to become an emerging market country. This will require effective macro-economic governance in terms of the optimal use of resources to help achieve the goals the authorities have set for human development, sustainable development, territorial and generational equilibrium, as well as the diversification of economic activities. 3.22 With regard to sectoral and micro-economic policies, a sound macro-economic framework alone is not enough to create growth and development if, among other things, dynamic sectoral policies are not adopted to underpin the growth sectors. Faced with the imperative of accelerating growth and moving towards 11

Select target paragraph3