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Establishment of Algeria's National Vision 2030 2013 Establishment of Algeria's National Vision 2030 National of Algeria's Establishment Establishment of Algeria's National Vision 2030 .go.kr 2013 ksp www. Ministry of Strategy and Finance Government Complex-Sejong, 477, Galmae-ro, Sejong Special Self-Governing City 339-012, Korea Tel. 82-44-215-7732 www.mosf.go.kr Korea Development Institute 130-740, P.O.Box 113 Hoegiro 47, Dongdaemun-gu, Seoul Tel. 82-2-958-4114 www.kdi.re.kr Knowledge Sharing Program Center for International Development, KDI ● P.O. Box 113 Hoegiro 47, Dongdaemun-gu, Seoul, 130-740 2013 ● Tel. 82-2-958-4224 MINISTRY OF STRATEGY cid.kdi.re.kr www.facebook.com/cidkdi ● ● AND FINANCE Korea Development Institute Establishment of Algeria's National Vision 2030 Establishment of Algeria's National Vision 2030 Project Title Establishment of Algeria's National vision 2030 Prepared by Korea Development Institute (KDI) Supported by Ministry of Strategy and Finance (MOSF), Republic of Korea Prepared for The Government of Algeria In cooperation with Secretary to Prime Minister in charge of Prospective and Statistics, Algeria Program Directors Hong Tack Chun, Executive Director, Center for International Development (CID), KDI MoonJoong Tcha, Senior Advisor to Deputy Prime Minister and Minister of Strateay and Finance, Former Executive Director, CID, KDI Jaehoon Kim, Director, Division of KSP Analysis and Evaluation, CID, KDI Program Officer Jean Lee, Research Associate, Division of KSP Consultation, CID, KDI Senior Advisor & Cae One Kim, Emeritus Professor, Seoul National University Project Manager Hong Tack Chun, Executive Director, CID, KDI Authors Chapter 1. Myungho Park, Professor, Hankuk University of Foreign Studies Wankeun Oh, Professor, Hankuk University of Foreign Studies Chapter 2. Jong-il Kim, Professor, Dongguk University Chapter 3. Jae-eun Chae, Professor, Gachon University Chapter 4. Soonman Kwon, Professor, Seoul National University Chapter 5. Hun Joo Park, Professor, KDI School of Public Policy and Management Chapter 6. Hyeon Joo Lee, Senior Researcher, Land & Housing Institute Min-Ah Choi, Researcher, Land & Housing Institute Hyungtai Kim, Fellow, Korea Development Institute English Editor Sae Won Lee, Freelance Editor Government Publications Registration Number 11-1051000-000380-01 ISBN 978-89-8063-745-4 94320 978-89-8063-739-3 (set) Copyright ⓒ 2013 by Ministry of Strategy and Finance, Republic of Korea Government Publications Registration Number 11-1051000-000380-01 Knowledge Sharing Program Establishment of Algeria's National Vision 2030 2013 MINISTRY OF Korea Development STRATEGY AND FINANCE Institute Preface In the 21st century, knowledge is one of the key determinants of a country’s level of socio- economic development. Based on this recognition, Korea’s Knowledge Sharing Program (KSP) was launched in 2004 by the Ministry of Strategy and Finance (MOSF) and the Korea Development Institute (KDI). KSP aims to share Korea’s development experience and knowledge accumulated over the past decades to assist socio-economic development of the partner countries. Former high- ranking government officials are directly involved in policy consultations to share their intimate knowledge of development challenges, and they complement the analytical work of policy experts and specialists who have extensive experience in their fields. The government officials and practitioners effectively pair up with their counterparts in development partner countries to work jointly on pressing policy challenges and share development knowledge in the process. The Program includes policy research, consultation and capacity-building activities, all in all to provide comprehensive, tailor-made assistance to the partner country in building a stable foundation and fostering capabilities to pursue self-sustainable growth. The 2012 Knowledge Sharing Program with Algeria was carried out in the aim of supporting the establishment of the national vision 2030. Algeria’s Ministry of Prospective and Statistics hoped to announce core findings of “Algeria National Vision 2030” in commemoration of the 50th anniversary of the Algerian independence in June 2012. The Algerian government indeed delivered the announcement so by actively participating in KSP and learning Korea’s development experiences. I would like to take this opportunity to express my sincere gratitude to Senior Advisor Dr. Cae One Kim, Project Manager Dr. Hong Tack Chun, as well as all the project consultants including Dr. Myungho Park, Dr. Wankeun Oh, Dr. Jae-eun Chae, Dr. Soonman Kwon, Dr. Hun Joo Park, Dr. Hyeon Joo Lee, Dr. Min-Ah Choi and Dr. Hyungtai Kim for their immense efforts in successfully completing the 2012 KSP with Algeria. I am also grateful to Former Executive Director Dr. MoonJoong Tcha, Program Director Dr. Jaehoon Kim and Program Officer Ms. Jean Lee, all of the members of the Center for International Development, KDI, for their hard work and dedication to this program. Lastly, I extend my warmest thanks to the Secretary to Primeminister in change of Prospective and Statistics Algeria and other related Algerian government agencies, program coordinators and participants for showing active cooperation and great support. In your hands is the publication of the results of the 2012 KSP with Algeria. I believe that KSP will serve as a valuable opportunity to further elevate mutual economic cooperation of Algeria and Korea to a new level. I sincerely hope the final research results including policy recommendations on the selected areas could be fully utilized to help Algeria in achieving economic development in priority areas in the near future. Joon-Kyung Kim President Korea Development Institute Contents 2012 KSP with Algeria…………………………………………………………………………………………… 019 Executive Summary ……………………………………………………………………………………………… 022 Chapter 1 Algeria's Vision 2030 Summary ………………………………………………………………………………………………………… 036 1. Vision 2030 and Indicator Analysis …………………………………………………………………… 039 1.1. The Significance of Vision Making ……………………………………………………………… 039 1.2. The Structure of Indicator System and Its Methodology ……………………………………… 042 1.3. Indicator Analysis ………………………………………………………………………………… 048 1.4. Objective of Economic Sector …………………………………………………………………… 051 1.5. Objective of Social Sector ………………………………………………………………………… 057 2. Algeria and the Global Economy ……………………………………………………………………… 058 2.1. Economic Trends of Algeria and Major Regions ……………………………………………… 058 2.2. Algeria as a Resource Rich Country ……………………………………………………………… 067 3. Current Issues Facing Algeria’s Economy …………………………………………………………… 078 3.1. The Current State of Algeria’s Economy ………………………………………………………… 078 3.2. Growth Accounting Analysis ……………………………………………………………………… 087 3.3. Reform Tasks and Strategies of Algeria ………………………………………………………… 089 4. Vision Scenarios ………………………………………………………………………………………… 096 4.1. Goals and Methodology ………………………………………………………………………… 096 4.2. Vision Scenarios …………………………………………………………………………………… 099 5. Conclusions ……………………………………………………………………………………………… 115 References ………………………………………………………………………………………………………… 117 Chapter 2 Transformation into a Knowledge-based Economy: Industrial Diversification in Algeria Summary ………………………………………………………………………………………………………… 122 1. Introduction ……………………………………………………………………………………………… 124 1.1. Resource Abundance and Economic Growth ………………………………………………… 124 1.2. Knowledge-Based Economy and Industrial Diversification …………………………………… 126 2. Current Economic Structure of Algeria ……………………………………………………………… 128 2.1. Industrial Structure of Algeria …………………………………………………………………… 128 2.2. Trade and Investment in Algeria ………………………………………………………………… 130 3. Assessment and Projection of Industrial Structure of Algeria from a Comparative Perspective 133 3.1. How Does Algeria Deviate from the Stylized Structural Pattern? …………………………… 133 3.2. Projection of Industrial Structure of Algeria …………………………………………………… 136 4. Opportunities and Challenges ………………………………………………………………………… 143 4.1. Current Conditions for Algeria’s Industrialization …………………………………………… 143 4.2. Strategic Sectors for Industrial Promotion ……………………………………………………… 150 5. Policies for Industrial Diversification ………………………………………………………………… 157 5.1 Evaluation of Current Industrial Policy Stance ………………………………………………… 157 5.2 Prerequisites for Industrial Promotion …………………………………………………………… 159 5.3. Political Leadership ………………………………………………………………………………… 162 References ………………………………………………………………………………………………………… 164 Chapter 3 The Education Development Plan for Algeria (With a Focus on Vocational Education and Training and Higher Education) Summary ………………………………………………………………………………………………………… 168 1. Education and Economic Growth …………………………………………………………………… 170 2. The Korean Case ………………………………………………………………………………………… 173 Contents 2.1. The Linkage between Development and Education: Four Phases on a Path of Progress … 173 2.2. Key Policies on Vocational Education & Training ……………………………………………… 176 2.3. Key Policies on Higher Education ……………………………………………………………… 178 2.4. Implications for the Education Reform of Algeria …………………………………………… 181 3. Overview of the Education System in Algeria ……………………………………………………… 183 3.1. Education System ………………………………………………………………………………… 183 3.2. The Current Status of Education ………………………………………………………………… 185 4. Key Issues for Education in Algeria ………………………………………………………………… 188 4.1. Key Issues in Vocational Education and Training ……………………………………………… 189 4.2. Key Issues in Higher Education …………………………………………………………………… 190 4.3. Key Issues in Policy Coordination ……………………………………………………………… 194 5. Policy Recommendations
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