Algeria in Transition Routledgecurzon Studies in Middle Eastern Politics

ALGERIA IN TRANSITION ROUTLEDGECURZON STUDIES IN MIDDLE EASTERN POLITICS ALGERIA IN TRANSITION REFORMS AND DEVELOPMENT PROSPECTS Edited by Ahmed Aghrout with Redha M.Bougherira Algeria in Transition Reforms and Development Prospects Edited by AHMED AGHROUT (with Redha M.Bougherira) University of Salford Foreword by PROFESSOR JOHN KEIGER University of Salford LONDON AND NEW YORK First published 2004 by RoutledgeCurzon 11 New Fetter Lane, London EC4P 4EE Simultaneously published in the USA and Canada by RoutledgeCurzon 29 West 35th Street, New York, NY 10001 RoutledgeCurzon is an imprint of the Taylor & Francis Group This edition published in the Taylor & Francis e-Library, 2005. “To purchase your own copy of this or any of Taylor & Francis or Routledge's collection of thousands of eBooks please go to www.eBookstore.tandf.co.uk.” © 2004 Ahmed Aghrout and Redha M.Bougherira All rights reserved. No part of this book may be reprinted or reproduced or utilized in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers. British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data A catalog record for this book is available from the Library of Congress ISBN 0-203-30763-1 Master e-book ISBN ISBN 0-415-34848-X (Print Edition) To the most cherished memory of my grandmother FATMA Contents Notes on Contributors ix Foreword by Professor John Keiger xii Preface xiv Figures and Tables xv Abbreviations and Acronyms xvii Introduction 1 PART I: POLITICAL ECONOMY: GENERAL AND SECTORAL INSIGHTS 1 Political Contexts and Economic Policy in Algeria: Some Theoretical 9 Considerations and Problems Kay Adamson 2 Algeria: Economic Structure, Performance and Policy, 1950–2000 34 Michael Hodd 3 Implications of Algeria’s WTO Accession 62 Salah Salhi 4 The Euro-Algerian Relationship: A Review of its Development 77 Cherif Begga and Kamel Abid 5 Economic Reforms and Foreign Direct Investment in Algeria 91 Hakim Meliani, Ahmed Aghrout and Ammar Ammari 6 Algeria’s Agriculture: Policy Reforms and Achievements 106 Ahmed Aghrout 7 Restructuring and Privatization in Algeria 124 Ahmed Aghrout, Mohamed Bouhezza and Khaled Sadaoui 8 The Algerian Capital Market: Investment Opportunities 139 Mahfoud Djebbar PART II: POLITICAL AND SOCIAL ISSUES 9 The Dialectics of Algeria’s Foreign Relations, 1992 to the Present 154 Yahia H.Zoubir 10 Bouteflika and the Challenge of Political Stability 185 Robert Mortimer 11 The 2002 Algerian Parliamentary Elections: Results and Significance 200 Ahmed Aghrout 12 Demographic Transition, Population Trends and Social and Environmental 213 Conditions in Algeria Keith Sutton and Salah Zaimeche 13 The Algerian Immigrant Community in Europe 238 Salah Mezdour Index 253 Notes on Contributors Kamel Abid is a postgraduate student in the Faculty of Economics and Management, University of Sétif. His research topic is on Euro-Algerian relations with a special focus on the ongoing partnership policy. Kay Adamson is a lecturer in sociology in the School of Law and Social Sciences at Glasgow Caledonian University. Previously she taught sociology at the University of Sunderland. She has published two books: Political and Economic Thought and Practice in Nineteenth-century France and the Colonization of Algeria (2002) and Algeria: A Study in Competing Ideologies (1998). She contributed to Francophone Studies: The Essential Glossary (2002) and has published in the Journal of Algerian Studies. She also teaches on contemporary issues of nationalism, migration, racism and Islam in Europe and in the field of social justice. Ahmed Aghrout is a research fellow of the European Studies Research Institute, University of Salford. He specializes in the politics and economics of North Africa and Euro-Maghreb relations. He has published articles in several journals, including The Journal of Modern African Studies, Canadian Journal of African Studies, British Journal of Middle Eastern Studies, International Politics, European Foreign Affairs Review, The Maghreb Review and The European Union Review. He is the author of From Preferential Status to Partnership—The Euro-Maghreb Relationship (2000). He has also contributed to the Encydopaedia of Modern Political Biography (1999) and the Encydopaedia of African History (2004). Ammar Ammari is professor of economics and chair of the Scientific Council in the Faculty of Economics and Management, University of Sétif. He holds a PhD in economics from the University of Odessa, Ukraine. He has conducted various research studies on economic policies and reforms in Algeria. His articles have appeared in journals such as Arab Economic Journal and Revue des Sciences Humaines. He is also the author of a recent book on micro-economics (2003). Cherif Begga is professor of economics in the Faculty of Economics and Management, University of Sétif. He holds a doctorate in economics from the University of Paris 1 (Panthéon-Sorbonne). He has conducted research on Algeria’s political economy and his articles have been published in Arab Economic Journal, Revue Tawassol and La Revue Algérienne des Sciences Juridiques, Economiques et Politiques, among other journals. Redha Bougherira earned his PhD from the University of Salford. He specializes in Algeria’s domestic politics and external relations. He has conducted extensive research and presented several papers on these topics at various conferences. Mohamed Bouhezza is a reader in the Faculty of Economics and Management, University of Sétif. He received his doctorate from the University of Nice-Sophia Antipolis, France. His current research focus is on the public sector enterprises. His most recent paper on ‘Les effets des réformes sur les entreprises économiques publiques: Cas de certaines entreprises’ has appeared in the Revue des Sciences Humaines. Mahfoud Djebbar is reader of finance at the Faculty of Economics and Management, University of Sétif. He specializes in financial markets and has acted as a consultant to listed companies on the Algiers Stock Exchange. He is the author of three books about financial markets. He has also published numerous articles in journals such as Revue Algérienne des Sciences Juridiques, Economiques et Politiques, Souk Al-Mal and Revue des Sciences Economiques et Sciences de Gestion. Michael Hodd studied economics at Cambridge and the LSE, and was an international finance fellow at Princeton in the USA. He has worked for the Canadian Ministry of Finance and taught at La Trobe University in Australia and at SOAS, University of London. In 1995 he moved to the University of Westminster where he is professor of economics. He was the inaugural Vice-chancellor at the University of Bukoba in Tanzania in 1999–2000. Specializing in the economics of Africa, he has worked for the ILO and UNIDO, and on a number of countries, most recently with an emphasis on the macro-economics of Algeria. Hakim Meliani is senior lecturer in the Faculty of Economics and Management, University of Sétif. His research interest focuses on international economics and he is completing a doctorate on emerging markets. His most recent article appeared in Revue des Sciences Economiques et Sciences de Gestion. Salah Mezdour specializes in international economics. After completing his studies in Algeria, France and Egypt, he taught for several years at the University of Constantine (Algeria), the University of Lille 1 and Lille 2 (France) and the University of Mons (Belgium). His research interest focuses on Euro-North African relations, including the issues of trade, finance and migration. He has been published in international journals such as Revue Française des Affaires Sociales, Revue du Marché Commun et de l’Union Européenne, Les Cahiers de l’Orient and Cahiers Lillois d’Economie et de Sociologie. While continuing his research, he is currently Cadre Territorial in the General Council of Pas de Calais in France. Robert Mortimer is professor of political science at Haverford College, Haverford, Pennsylvania. He has published more than eighty articles and book reviews, many of which are about politics and diplomacy in the Maghreb. He is the author of The Third World Coalition in International Politics and the co-author of Politics and Society in Contemporary Africa (with Naomi Chazan, Peter Lewis, Donald Rothchild and Stephen John Stedman). In 1974–75, he taught at the Institut d’Etudes Politiques in Algiers. Khaled Sadaoui is reader in the Faculty of Economics and Management, University of Sétif. He received his doctorate in economics from the Pantheon Sorbonne University (Paris). He has conducted research on economic reforms, including fiscal reforms and the restructuring of public enterprises, and has been published on these topics in numerous journals such as Revue des Sciences Humaines and Revue des Sciences Economiques et de Gestion. Salah Salhi is reader at and dean of the Faculty of Economics and Management, University of Sétif. He studied economics at the University of Algiers and the Centre d’Etudes et de Recherches sur l’Economie Islamique, University of Grenoble, France. He serves as a member of the editorial board of several journals and periodicals both in Algeria and abroad and is the editor-in-chief of the Revue des Sciences Economiques et des Sciences de Gestion. He is the author of four books, two

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