Algeria is the largest country in North Africa, with a population of almost 40 million people. It is also the fourth largest gas exporter in the world and the tenth greatest oil exporter. Algeria is a wealthy country with the third largest economy in the Middle East and North Africa, but its citizens remain impoverished. According to reports, Algeria’s national poverty rate is as high as 23%.
What are the reasons for Algeria’s poverty? Why are up to half of a country’s young men lured to flee to Europe as illegal immigrants to escape their native country’s misery?
Poverty and Unemployment
One of the causes of poverty in Algeria is the high percentage of youth unemployment. Although the official ratio is 12.48 percent, the true figure is substantially higher. According to one survey from 2008, 70 percent of persons under 30 were unemployed. Due to the country’s high unemployment rates and poor quality of life, the country’s youth have been compelled to resort to extreme tactics such as illegal immigration in order to find job in Europe.
Political Conflict
Many Algerians blame the country’s economic decline on the country’s unresponsive and incompetent governmental leadership. According to one analyst, the National Liberation Front (FLN), a political group that led the fight for independence against France, bankrupted the country with its “doctrinaire socialism.” The Algerian Civil War, which lasted from 1991 to 2002 and was fought between the Algerian government and numerous Islamic rebel groups, undermined the country’s political and economic stability.
Lack of Democracy
Another source of poverty in Algeria is the absence of democratic institutions. Military intervention was required on several occasions due to the power struggle between the progressive FLN and the conservative Islamic Front. Abdelaziz Bouteflika, the country’s current 80-year-old president, has been in power since 1999 after “winning” four consecutive elections. Although he is regarded as an elder statesman for bringing the country out of civil war and destroying extremist and militant Islamist groups, his government has been increasingly intolerant of press and political opposition throughout his reign.
Cuts in Government Spending
The recent drop in oil prices is another source of unhappiness and poverty in Algeria. Algeria’s economy is primarily reliant on oil and hydrocarbons, thus the dramatic drop in oil prices has caused the government to enact spending cuts and tax increases. Such measures will put Algeria at risk if they do not include “improved safety nets, a cash transfer system that reaches the poor, a strong media campaign to ensure better public understanding during implementation, and a stronger statistical system that allows more frequent monitoring of households’ living conditions.”
Nonetheless, the good news is that Algeria’s poverty rate has dropped by 20% in the last two decades. While this figure is encouraging, it does not reflect sufficient progress. A transition toward a more diverse economy is required to propel the country toward long-term growth and increased job possibilities.
What is Algeria’s average GDP?
According to Trading Economics global macro models and analysts, Algeria’s GDP per capita is anticipated to reach 4600.00 USD by the end of 2021. According to our econometric models, Algeria’s GDP per capita is expected to rise to roughly 4700.00 USD in 2022.
Is Algeria’s economy secure?
Algeria is placed 13th out of 14 Middle Eastern and North African countries, and its overall score is lower than the regional and global averages. Algeria’s economic growth has slowed over the last five years, turning negative in 2020 before rebounding in 2021.
What causes Algeria’s poverty?
Algeria is a country in Africa that borders the Mediterranean Sea. It is the largest country in North Africa by area and has a population of almost 42 million people. Algeria enjoyed considerable prosperity after achieving independence from France in 1962, thanks to the growing price of oil, until the 1980s. Following the decline of Algeria’s economic growth in the mid-1980s, poverty became a serious issue. Algeria has been facing an economic decline since the 1980s, owing to a drop in oil prices on international markets, which has contributed to increased unemployment and poverty. Poverty has also been caused by a lack of democracy, political turmoil, and government spending.
What is Algeria’s most valuable export?
Natural gas is a commodity that contributes nearly one-third of the country’s gross domestic product each year, despite global price volatility (GDP). The economy was mostly centered on agriculture until 1962, and it supplemented France’s economy. Since then, hydrocarbon extraction and production have been the most essential activities, allowing for fast industrialization. In the first two decades after independence, the Algerian government implemented a centrally planned economy inside a state socialist framework, nationalizing important businesses and enacting multiyear economic plans. Since the early 1980s, however, the emphasis has switched toward privatization, and Algeria’s socialist course has been slightly altered. Although living standards have improved to those of an intermediately developed country, food production has fallen far short of self-sufficiency.
Is there fuel in Algeria?
Algeria is a major oil producer as well, having known oil reserves of 12.2 billion barrels. The country exports 540,000 barrels per day out of a total production of 1.1 million barrels per day. Although offshore exploration is in its early stages, all proven oil deposits are held onshore.
Which job in Algeria is the best?
The best paying jobs in Algeria are executive management and change management. Professionals in this field will earn an average of 126,000 dollars per year in 2021.