CHAPTER TWO: HISTORICAL CONTEXT AND CURRENT CHALLENGES 94. To implement these changes, the government plans to invest over US$120 billion between 2005 and 2009, in the supplementary growth promotion programme and special programmes for the South and the Hauts Plateaux. All these actions testify to the firm commitment of Algeria‟s highest authorities to maintain, consolidate and sustain the eminent role it plays as a strong, united, prosperous, dignified and respected country in Africa and the world. 95. Although significant progress has been made, efforts still need to be deployed to ensure the full enjoyment of civil freedoms, the participation of citizens and local democracy, the separation and balance of powers, greater access to the media, and effectiveness in the administration and fight against corruption. These are key challenges that necessitate close attention. 96. Algeria‟s ancient and recent history is that of the edification of a nation that is constantly and fiercely fighting for the affirmation of its identity and respect of its dignity and sovereignty. Given its age-old Amazigh traditions, affiliation to Arab civilisation, Africanness, and attachment to the spiritual values of Islam, Algeria faces the challenges of globalisation in a spirit of tolerance, openness and exchange that is dictated by its long history. 97. In moments of adversity, the Algerian nation has drawn its spiritual strength and moral energy from this precious resource to confront the numerous and successive challenges that have marked its destiny, the most important of these being to regain independence and re-establish its national sovereignty. 98. Governance is considered as the cornerstone of state and administrative reforms. It is a prerequisite for overcoming the main challenges associated with the three aspects of transition defined as follows: At the political level, transition must tackle and ensure the success of the shift from governance founded on the logic of a single government party to that of political pluralism and respect for the principles and values of pluralist democracy. At the economic level, transition must address the imperatives associated with the movement of a centralised economy to a market economy and free competition. At the social level, it must reconcile the requirements of an approach aimed at collective well-being and equal access by all to education, health, housing, social security, transport, etc. on the one hand, and that of a market economy based on competition and exclusion on the other hand. 99. 52 Each of these facets includes concerns and challenges that the CRM examines in subsequent chapters. On the whole, following the assessment of the general situation in Algeria, it should be noted that although the country is faced with numerous challenges, qualitative progress has been made in the area of economic and social development and fairer distribution of national resources to disadvantaged social strata. These achievements should be capitalised on

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