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COUNTRY PROFILES
Algeria
Algeria background information
General Information on Algeria
Algeria is experiencing a significant economic
upturn, in large part aided by strong oil and natural gas
export revenues since 1999. The year 2001 GDP was
49,84 billions with a GDP growth of 2,0% in 2003. A conflict
began following the suspension of the 1992 general election,
which held back social and economic development. The general
climate of violence resulted in many foreign companies introducing
costly security arrangements for their Algerian installations,
a most unwelcome additional burden when their activities were
already in doubt as a result of low oil prices. [12]
However, the general climate since these previous years has
been considerably improved in the global security and economic
plan, with perspectives much more interesting for private
investment in framework of the political, legal and economical
reforms engaged by Algeria.
In foreign policy, Algeria works on the regional aspects of
the Euro-Mediterranean Partnership. It also supports other
regional integration activities like the Arab Maghreb Union.
Financial co-operation is based on the 1979 Co-operation Agreement
between the EC and Algeria, which was followed up by four
Financial Protocols, then by the Barcelona Declaration and
the MEDA regulation. Through the four Financial Protocols,
Community funds to Algeria amounted to 950 million between
1978 and 1998. This was made up of 309 million from the
Community and 640 million from the European Investment Bank.
These funds are 66% committed, while the payment rate stands
at 47%. Projects have been funded in the energy sector (7%).
About 164 million of MEDA funds were committed in the 1996-2000
period. Another 90 million have been committed since 2000
for four new program. In December 2001, the Med Committee
gave its green light to the new National Indicative Program
for the 2002-2005 period. The program gives even greater focus
on the Association Agreement. The European Investment Bank
(EIB) has granted loans worth 620 million since 1996. Sectors
covered are energy, transport, water resources management,
and the environment. [1,11,13]
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