CHAPTER TWO: HISTORICAL CONTEXT AND CURRENT CHALLENGES direct contribution of the sector to the gross national product, but also because of the revenue it provides to the state and its direct contribution to economic recovery and public investment programmes. 85. In fact, the last two economic phases are sub-periods of a single phase, namely the third phase characterised by the country‟s commitment to the reform process and the transition towards a market economy. In the light of the above elements, the authorities have carried out a situational analysis. Political and socio-economic reform policies have been developed and implemented in response to political demands, but also to resolve political, economic and social problems that have been the source of social and political upheavals. At the same time, however, the authorities want to be in control, aware of the risks involved in rushing into reforms. They are seeking the middle ground between pressures to accelerate the process, on the one hand, and others in favour of resistance to reforms, on the other hand. 86. In this regard, Algerian authorities needed to implement a policy aimed at: Consolidation of civil peace, security and the stability of institutions as the sine qua non for democratic construction, improved management of public affairs and strengthening of the rule of law. Stimulation of the development process on the basis of relevant economic reforms and an active partnership between the state, which is responsible for a favourable political and legal environment; the private sector, which is primarily responsible for generating national wealth and employment; and civil society, which is responsible for creating synergies between the political and social sectors so that the entire nation can benefit from the process. Improvement of the social situation, in financially viable situations, both by increasing reforms in social sectors and creating a conducive environment for continued and sustainable growth in order to create jobs and share benefits with the Algerian people. 87. 50 Public authorities are applying themselves with determination, even though given the internal dynamics in the country and the regional and global environment, they have take into account some specific stumbling blocks. In order to broaden the scope of reforms in a general democratisation process, the authorities wish to increase the participation of grassroots populations. Despite delays, difficulties and imperfections, the intention is to develop a sense of increased responsibility on the part of managers; to return the initiative to the local level; and to resolve problems related to economic, social and regional imbalances in Algeria. Specific growth or sectoral programmes have been launched, with greater or lesser success, and today the entire country is a vast construction site, both literally and figuratively, considering that institutional and political reforms and infrastructural transformations in the economic and social sectors have been undertaken.