EXECUTIVE SUMMARY development, the Algerian government has made an effort in this respect, but the actions taken have not met with success in terms of the investments that have been realised. The newly articulated industrial strategy needs to respond to the problem of low utilisation of industrial capacity, which was no more than 50 per cent in 2004. 3.23 It would also have been appropriate to understand the major thrusts of the country‟s agricultural policy. It was not possible to consider this aspect in detail, but the government has obviously given active and massive support to reviving this sector, without mapping out a clear strategy for regaining the local market and gaining the foreign, essentially European, market. Lastly, the government must ensure that it has the means to formulate a consensual global vision of Algeria, from which sectoral strategies can draw inspiration, with consideration of the options of liberalisation, privatisation, diversification and reduction of the excessive dependence on hydrocarbons. 3.24 The mobilisation of domestic resources and the accumulation of capital reflect commendable prudence, but other options need to be explored. On the macrofinancial level, the CRM endorses Algeria‟s prudent management of its surplus oil revenues through the Fund for the Regulation of Receipts, or Oil Stabilisation Fund (FRR). This has been achieved through a policy of prudent management that minimises the deficit, even if domestic financing is available. 3.25 As regards vulnerability to shocks, there are ad hoc responses and therefore a need for systemic analysis. An economy that wishes to perform well cannot afford to be managed without anticipating potential disruptions that could cause it to deviate from its course. Good governance requires a country to anticipate internal and external shocks and envisage ways to detect them, adopt mechanisms to cushion or avoid their impact, and decide what accompanying measures to take. The CRM commends the progress that has been achieved in reducing Algeria‟s dependence on oil revenue. 3.26 With regard to government and administration, there is an urgent need for reform in result indicators. In Algeria, more than elsewhere, the three-year budget is expected to be a major breakthrough that deserves to be encouraged, and is also seen as a means of anchoring public expenditure to indicators. The multi-year budget is a major step forward and should be commended. Similarly, a national public accounting plan that uses budget nomenclature is an indication of progress. These reforms need to be implemented as a matter of urgency without being hurried through. 3.27 Predictability is a shortcoming to be addressed. The predictability of economic policies is largely dependent on transparent economic data, but also on the participation and consultation of economic and social stakeholders vis-à-vis various government policies. This relates to aspects of process, content and meaning. The country‟s performance in this area is still poor. 12