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
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