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A Special International Report
Prepared by
The Washington Times
Advertising Department - Published on July 2, 1999
[Home Page]
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Advertisers (1) Sonatrach,
An International Petroleum Group
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The place of small industry in the economy At the last count there were 177,000 small and medium sized industries, employing 418,000 people in Algeria says the Minister of Small and Medium Size Industries, Mr. Soltani Aboudjerra. Talking about the change to a capitalistic structure through small and medium sized industries, Mr. Aboudjerra commented: "We have benefited from other countries' experiences in this transformation and in 1985 we began the change from the socialist nationalistic system to a more capitalistic system through the channel of small industry. We approached specified areas through legal and proper channels. "The changes which were operated in the economy, which was a monopolistic one, towards planned policies and a free market, faced transitional financial and administrative difficulties in their implementation. Algeria had some small industries before. “But they all began as family type industries and they could not enter competition, nor accept rapid change. The structural adjustment of industry meant the closing down of bankrupt industries and getting rid of surplus employees by compression - in 1997 they got rid of 76,000 employees and in 1998 another 88,000 employees were made redundant. At the same time 1050 associations were created. "The catalyst which actually works towards developing industry is in fact small and medium sized industries. This has to be done - with partnerships and specific investors from all over the world to reach reforms within our local industries." Financial arrangements between Algerian and American or European partners would help bring the system up to date. "We try to do several things to control unemployment - investment - micro enterprises, small investments. We have to create micro enterprises. We started trying this with a scheme about 20 months ago. We registered 42,000 files of which 11,000, (24% ) benefited from the scheme and created small enterprises. "On the other side are university graduates - we provide a training program for the students who graduate every year. "We are hoping that within 5 to 8 years that unemployment will got down to 17 or 18%. And we want international organizations to help us reduce this high unemployment. "Agriculture, tourism and services are the most important sectors for us because of low investment in this sector. But one sector cannot be separated from another - they must all work in parallel. Since 1991, we started reforming banking and investment sectors as a whole - so the law allows the financial sector to accept partnerships from outside and within Algeria to work in corporate investment "There are some 10 banks that have corporate investment with foreign and local partners working in Algeria in the pharmaceutical and agriculture sectors. "We are encouraging other foreign banks to have a more dynamic development. We have very few loans for investors. We hope to expand and to introduce a national credit insurance fund. Since the end of 1995 there has been an improvement in social political and security laws. There's still a lot to be done and we haven't yet reached the stage that we are trying to. This is a sign that Algeria is willing for and wants change. The international markets are beginning to discover what the Algerian market is like and enter it. The Algerian market already possesses quite a lot of foreign investors and a lot more of them are coming here and investing. If the situation continues as it is now, we will have a transformation where the private sector will occupy 80% and the public sector only 20% - the opposite of what it was before. The Algerian people had its own philosophy. "Even during the socialist days we used to speak socialism and use capitalistic ways." |
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Table of Contents (1) His Excellency Abdelaziz Bouteflika, President of the Democratic and Popular Republic of Algeria (2) Country has resources and potential and is moving toward peace (3) History (4) Stability predictable for Algeria (5) Terrorism is costly - in lives and finances (7) Despite being free, press sometimes is silenced (8) Local bidders and foreign investors being courted (9) Despite previous problems, economic future is bright (10) Institutions (11) Director-General sees light as country comes out of tunnel (12) Housing shortage creates enormous market for homebuilders (13) Bureaucracy remains a major barrier to investment (14) Algeria is gateway to Africa (15) A country made for Tourism (16) A Rich Heritage in Arts and Crafts (17) Casbah's unique beauty to be restored (18) Algeria Facts (19) Privatization goes forward with progress, challenges (20) Country rich in resources, civilization, ambition (21) World renowned hotel carries proud past of history and wealth (22) Fight against terrorism has helped world (23) Banking reforms, foreign investment moving quickly (24) World Bank senses new optimism in Algeria (25) Algerian-American Chamber of Commerce meets to promote trade relations (26) Ministry of Labor promotes programs to reduce unemployment (27) Agriculture potential is tremendous, but investment is needed (28) Algeria adopts new programs to solve water shortages (29) Wine growing provides export income (30) Petroleum companies aware of potential says Sonatrach CEO (31) About Sonatrach (32) Bright future ahead for oil industry (33) Huge oil resources will last for many years (34) The place of small industry in the economy (35) Country's first Bourse to open soon (36) ONAB encourages investors to grasp potential in Algeria (37) The El-Aurassi Hotel plans to go public (38) Enad hopes to partner with leading detergent producers (39) ENGG strives to improve refining system and attract foreign investment (40) Agricultural Bank plans expansion (41) Vehicle manufacturer seeks further investment |
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