Algeria a giant frightened of its own shadow

Algeria is one of the richest and most powerful countries in Africa. But it is reluctant to use its large reserves for economic benefits either for its people or its neighbours. It is paralysed by its bureaucracy  and whilst spending billions on infrastructure, the
unemployment amongst the young is far higher than the official rate of 20 per cent.


Recent large scale demonstrations in the South, particularly in Ouargla where  over ten thousand turned out and violent rioting ensued over the allocation of free housing indicates the seriousness of the problem. It is not just the South and Algeria has the problem  of a near total dependence on oil and gas which cannot provide sufficient employment; Algeria has a hydrocarbons economy but not a real, diversified economy with a functioning private sector which generates jobs.

The Financial Times notes that it is difficult to know who is really making  decisions and Algerian bureaucracy has been  a catastrophy since Independence. The Sellal governent is making serious efforts  to  remedy these  defects but it  is an up hill process. Commentators note a lack of confidence which has prevented the  development of a private sector backed with FDI, the restrictions on foreign ownership the 49/51 per cent rule is preventing a lot of foreign investment .

All the great powers emphasised the importance of Algeria as a regional power and whilst Algeria courted this, when the time came it refused to use its armed forces which are the largest and best equipped in the region.It  refused to come to the aid of Mali and continued to support Iyad Ag Ghali and Ansar Dine right up to when he retracted his peace agreement and moved to  take the South. Finally France had to intervene and all Algeria could do was close its own borders. This was a colossal  failure of diplomacy and Algeria has lost a great deal of international credibility.

The long war of independence followed by a devastating civil war is reason enough for mutual suspicion. Algeria is indeed frightened of its past , because it caste a long shadow which still affects it today, Its refusal to advance the Arab Maghreb Union is an example of the negative effect of its diplomacy. It can lock and block but it cannot liberate or inspire, Change and a new political direction is needed.

In concluding its analysis on Algeria, the British newspaper takes the words of a head of an Algerian newspaper who says that "Algeria is becoming more and more like Pakistan - a military ally of the West in the fight against terrorism, but not much else. "