EXECUTIVE SUMMARY were unprepared for this. The period of instability in Algeria between 1992 and 2000 also encouraged corruption. 3.33 On the institutional level, the CRM noted the absence of any governmental institution (e.g. a national anticorruption commission) with the sole mandate to coordinate the government‟s efforts in this area. A unit has been set up to combat money laundering and terrorism, but none for corruption. The CRM also noted that supervisory institutions were marginalised because of the grossly inadequate means of control provided by the government to handle the amount of work that needs to be done. 3.34 As regards regional integration, the aim is not simply to be part of the international trend but to conceptualise an integration project which, while having a political vision, at the same time embodies an economic rationale by taking into consideration incentive mechanisms for private agents. It is this political vision that allows long-term strategic objectives to be considered and justifies the adoption, in the short term, of a proactive approach and of terms and conditions that are likely to encourage economic operators from different countries to trade among themselves. The CRM strongly supports the position of the government on regional integration, even if this vision is not clearly articulated. Algeria has an undeniable role to play in Africa, in the Maghreb and in the Mediterranean region. 3.35 The CRM noted Algeria‟s best practices in terms of governance and economic management. Essentially, these are: (i) the creation of an FFR for hydrocarbons; (ii) appeal procedures in the public procurement process; and (iii) regional cooperation. 3.36 Algeria will have to overcome the following challenges, which are part of the CRM‟s recommendations: (i) successful implementation or acceleration of the major structural reforms already in place; (ii) diversification of the economy into other economic sectors such as industry, agriculture, tourism and new technologies; (iii) containment of inflation and improvement of the balance of payments by diversifying exports; (iv) achieving the greatest possible degree of autonomy in public expenditure by becoming increasingly less reliant on revenue derived from hydrocarbons; (v) successful transition from a welfare state to one that demands accountability from people in the social and economic spheres; and (vi) combating corruption and establishing effective deterrent measures. 3.3 Corporate governance 3.37 Algeria‟s passage from a centralised, subsistence economy to a market and production economy in order to ensure its integration into the world economy, its entry into the European Union free trade area and its membership of the World Trade Organisation (WTO) are signs that the country is about to enter another phase of profound mutation in terms of organisation, structures and modes of management that have been the hallmarks of corporate governance 14