CHAPTER FOUR: ECONOMIC GOVERNANCE AND MANAGEMENT 450. The huge economic programmes launched in 2001 and 2005 aimed to prepare the ground for the country to become one of the newly emerging markets and were instrumental in this transition. The CRM was not able to obtain important information, such as the underlying assumptions and the indicators used as benchmarks for defining the criteria for resource allocation in the various sectors and different expenditures in the case of similar budget lines; concerted requests from social entities and corporate bodies that make up these sectors; the expected impact on local know-how and on productivity and competition; and, in general, the overall coherence of these fund allocations. This approach means one could either qualify or challenge possible criticism of the empirical choices made in the face of the country‟s countless needs, by a developing country that suddenly finds itself with surplus income, income that is derived from a non-renewable natural resource. Every time it is used, the resource must contribute to creating other resources that can be used to replace it within a timeframe to be determined. Table 2: Main socio-economic indicators 2001 2002 2003 2004 2005 2006 2.7 4.8 6.9 5.2 5.3 1.8 GDP (US$ bn) 54.8 55.1 57.1 68.1 85.0 102.2 Per capita GNP (US$) 1.787 1.819 2.136 2.627 3.097 Trade balance (US$ bn) 9.61 6.70 11.11 14.27 26.47 Current account (US$ bn) 7.06 4.36 8.81 11.12 21.18 Total balance of payments (US$ bn) 6.32 3.65 7.44 9.25 16.95 17.9 Gross reserves (US$ bn) 18.0 23.1 32.9 43.1 56.2 77.4 Gross reserves minus imports 14.9 17.0 18.1 21.0 25.7 36.7 Outstanding foreign debts (US$ bn) 22.7 22.6 23.4 21.8 17.2 5.0 4.6 4.5 4.7 6.0 6.3 2.7 Outstanding foreign debts/GDP (%) 41.1 39.7 34.3 25.7 16.8 5.0 Outstanding foreign debts/Exports 113.5 113.2 89.7 64.0 35.2 8.7 Service on foreign debts/GDP (%) 22.8 22.6 17.9 13.0 8.4 4.6 Service on foreign debts/Exports (%) 22.8 22.6 17.9 17.6 12.5 Overall treasury balance (DA bn) 55.2 -16.1 -10.3 -187.3 -472.2 -705.6 Average exchange rate (US$/DA) 77.2 79.7 77.4 72.1 73.4 72.6 Average exchange rate (Euro/DA) 69.2034 75.3015 87.4291 89.6198 91.3179 91.2 4.2 1.4 2.6 3.6 1.6 2.2 27.3 25.7 23.7 17.7 15.4 12.3 GDP growth rate (%) Service on foreign debts (US$ bn) Consumer price index Unemployment rate (%) Source: Bureau of National Statistics (ONS) – Delegate for Planning, Ministry of Finance, Central Bank of Algeria. 144 34.3

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