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 Algeria (2008)Algeria (2007)
 AlgeriaAlgeria
Background After more than a century of rule by France, Algerians fought through much of the 1950s to achieve independence in 1962. Algeria's primary political party, the National Liberation Front (FLN), has dominated politics ever since. Many Algerians in the subsequent generation were not satisfied, however, and moved to counter the FLN's centrality in Algerian politics. The surprising first round success of the Islamic Salvation Front (FIS) in the December 1991 balloting spurred the Algerian army to intervene and postpone the second round of elections to prevent what the secular elite feared would be an extremist-led government from assuming power. The army began a crackdown on the FIS that spurred FIS supporters to begin attacking government targets. The government later allowed elections featuring pro-government and moderate religious-based parties, but did not appease the activists who progressively widened their attacks. The fighting escalated into an insurgency, which saw intense fighting between 1992-98 and which resulted in over 100,000 deaths - many attributed to indiscriminate massacres of villagers by extremists. The government gained the upper hand by the late-1990s and FIS's armed wing, the Islamic Salvation Army, disbanded in January 2000. However, small numbers of armed militants persist in confronting government forces and conducting ambushes and occasional attacks on villages. The army placed Abdelaziz BOUTEFLIKA in the presidency in 1999 in a fraudulent election but claimed neutrality in his 2004 landslide reelection victory. Longstanding problems continue to face BOUTEFLIKA in his second term, including the ethnic minority Berbers' ongoing autonomy campaign, large-scale unemployment, a shortage of housing, unreliable electrical and water supplies, government inefficiencies and corruption, and the continuing activities of extremist militants. The 2006 merger of the Salafist Group for Preaching and Combat (GSPC) with al-Qaida (followed by a change of name to al-Qaida in the Lands of the Islamic Maghreb) signaled an increase in bombings, including high-profile, mass-casualty suicide attacks targeted against the Algerian government and Western interests. Algeria must also diversify its petroleum-based economy, which has yielded a large cash reserve but which has not been used to redress Algeria's many social and infrastructure problems. After more than a century of rule by France, Algerians fought through much of the 1950s to achieve independence in 1962. Algeria's primary political party, the National Liberation Front (FLN), has dominated politics ever since. Many Algerians in the subsequent generation were not satisfied, however, and moved to counter the FLN's centrality in Algerian politics. The surprising first round success of the Islamic Salvation Front (FIS) in the December 1991 balloting spurred the Algerian army to intervene and postpone the second round of elections to prevent what the secular elite feared would be an extremist-led government from assuming power. The army began a crackdown on the FIS that spurred FIS supporters to begin attacking government targets. The government later allowed elections featuring pro-government and moderate religious-based parties, but did not appease the activists who progressively widened their attacks. The fighting escalated into an insurgency, which saw intense fighting between 1992-98 and which resulted in over 100,000 deaths - many attributed to indiscriminate massacres of villagers by extremists. The government gained the upper hand by the late-1990s and FIS's armed wing, the Islamic Salvation Army, disbanded in January 2000. However, small numbers of armed militants persist in confronting government forces and conducting ambushes and occasional attacks on villages. The army placed Abdelaziz BOUTEFLIKA in the presidency in 1999 in a fraudulent election but claimed neutrality in his 2004 landslide reelection victory. Longstanding problems continue to face BOUTEFLIKA in his second term, including the ethnic minority Berbers' ongoing autonomy campaign, large-scale unemployment, a shortage of housing, unreliable electrical and water supplies, government inefficiencies and corruption, and the continuing - although significantly degraded - activities of extremist militants. Algeria must also diversify its petroleum-based economy, which has yielded a large cash reserve but which has not been used to redress Algeria's many social and infrastructure problems.
Budget revenues: $58.5 billion


expenditures: $41.35 billion (2007 est.)
revenues: $49.91 billion


expenditures: $33.49 billion (2006 est.)
Debt - external $3.358 billion (31 December 2007 est.) $4.413 billion (2006 est.)
Diplomatic representation from the US chief of mission: Ambassador Robert S. FORD


embassy: 5 Chemin Cheikh Bachir, El-Ibrahimi, El-Biar 16000 Algiers


mailing address: B. P. 408, Alger-Gare, 16030 Algiers


telephone: [213] 70-08-2000


FAX: [213] 21-60-7355
chief of mission: Ambassador Robert S. FORD


embassy: 04 Chemin Cheikh Bachir Ibrahimi El-Biar 16030, Algiers


mailing address: B. P. 408, Alger-Gare, 16030 Algiers


telephone: [213] (021) 69-12-55


FAX: [213] (021) 69-39-79
Economy - overview The hydrocarbons sector is the backbone of the economy, accounting for roughly 60% of budget revenues, 30% of GDP, and over 95% of export earnings. Algeria has the eighth-largest reserves of natural gas in the world and is the fourth-largest gas exporter; it ranks 14th in oil reserves. Sustained high oil prices in recent years have helped improve Algeria's financial and macroeconomic indicators. Algeria is running substantial trade surpluses and building up record foreign exchange reserves. Algeria has decreased its external debt to less than 10% of GDP after repaying its Paris Club and London Club debt in 2006. Real GDP has risen due to higher oil output and increased government spending. The government's continued efforts to diversify the economy by attracting foreign and domestic investment outside the energy sector, however, has had little success in reducing high unemployment and improving living standards. Structural reform within the economy, such as development of the banking sector and the construction of infrastructure, moves ahead slowly hampered by corruption and bureaucratic resistance. The hydrocarbons sector is the backbone of the economy, accounting for roughly 60% of budget revenues, 30% of GDP, and over 95% of export earnings. Algeria has the eighth-largest reserves of natural gas in the world and is the fourth-largest gas exporter; it ranks 18th in oil reserves. Sustained high oil prices in recent years, along with macroeconomic policy reforms supported by the IMF, have helped improve Algeria's financial and macroeconomic indicators. Algeria is running substantial trade surpluses and building up record foreign exchange reserves. Algeria has decreased its external debt to less than 10% of GDP after repaying its Paris Club and London Club debt in 2006. Real GDP has risen due to higher oil output and increased government spending. The government's continued efforts to diversify the economy by attracting foreign and domestic investment outside the energy sector, however, has had little success in reducing high unemployment and improving living standards. Structural reform within the economy, such as development of the banking sector and the construction of infrastructure, moves ahead slowly hampered by corruption and bureaucratic resistance.
Exchange rates Algerian dinars per US dollar - 69.9 (2007), 72.647 (2006), 73.276 (2005), 72.061 (2004), 77.395 (2003) Algerian dinars per US dollar - 72.647 (2006), 73.276 (2005), 72.061 (2004), 77.395 (2003), 79.682 (2002)
Exports - partners US 27.2%, Italy 17%, Spain 9.7%, France 8.8%, Canada 8.1%, Belgium 4.3% (2006) US 27.3%, Italy 17.1%, Spain 9.4%, France 8.8%, Canada 8.2%, Belgium 4.3% (2006)
Flag description two equal vertical bands of green (hoist side) and white; a red, five-pointed star within a red crescent centered over the two-color boundary


note: the crescent, star, and color green are traditional symbols of Islam (the state religion)
two equal vertical bands of green (hoist side) and white; a red, five-pointed star within a red crescent centered over the two-color boundary; the crescent, star, and color green are traditional symbols of Islam (the state religion)
GDP - composition by sector agriculture: 8.1%


industry: 61%


services: 30.9% (2007 est.)
agriculture: 8.4%


industry: 60.6%


services: 31% (2006 est.)
GDP - real growth rate 4.6% (2007 est.) 2.9% (2006 est.)
Imports - partners France 22%, Italy 8.6%, China 8.5%, Germany 5.9%, Spain 5.9%, US 4.8%, Turkey 4.5% (2006) France 22.1%, Italy 8.6%, China 8.6%, Germany 5.9%, Spain 5.6%, US 4.8%, Turkey 4.5% (2006)
Industrial production growth rate 5% (2007 est.) 10% (2006 est.)
Inflation rate (consumer prices) 4.6% (2007 est.) 2.6% (2006 est.)
International organization participation ABEDA, AfDB, AFESD, AMF, AMU, AU, BIS, FAO, G-15, G-24, G-77, IAEA, IBRD, ICAO, ICC, ICCt (signatory), ICRM, IDA, IDB, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC, LAS, MIGA, NAM, OAPEC, OAS (observer), OIC, OPCW, OPEC, OSCE (partner), UN, UNCTAD, UNESCO, UNHCR, UNIDO, UNMEE, UNWTO, UPU, WCO, WHO, WIPO, WMO, WTO (observer) ABEDA, AfDB, AFESD, AMF, AMU, AU, BIS, FAO, G-15, G-24, G-77, IAEA, IBRD, ICAO, ICC, ICCt (signatory), ICRM, IDA, IDB, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC, LAS, MIGA, MONUC, NAM, OAPEC, OAS (observer), OIC, ONUB, OPCW, OPEC, OSCE (partner), UN, UNCTAD, UNESCO, UNHCR, UNIDO, UNMEE, UNWTO, UPU, WCO, WHO, WIPO, WMO, WTO (observer)
Labor force 9.38 million (2007 est.) 9.31 million (2006 est.)
Legislative branch bicameral Parliament consists of the National People's Assembly or Al-Majlis Al-Shabi Al-Watani (389 seats; members elected by popular vote to serve five-year terms) and the Council of Nations (Senate) (144 seats; one-third of the members appointed by the president, two-thirds elected by indirect vote; to serve six-year terms; the constitution requires half the council to be renewed every three years)


elections: National People's Assembly - last held 17 May 2007 (next to be held in 2012); Council of Nations (Senate) - last held 28 December 2006 (next to be held in 2009)


election results: National People's Assembly - percent of vote by party - NA; seats by party - FLN 136, RND 61, MSP 52, PT 26, RCD 19, FNA 13, other 49, independents 33; Council of Nations - percent of vote by party - NA; seats by party - FLN 29, RND 12, MSP 3, RCD 1, independents 3, presidential appointees (unknown affiliation) 24; note - Council seating reflects the number of replaced council members rather than the whole Council
bicameral Parliament consists of the National People's Assembly or Al-Majlis Ech-Chaabi Al-Watani (389 seats; members elected by popular vote to serve five-year terms) and the Council of Nations (Senate) (144 seats; one-third of the members appointed by the president, two-thirds elected by indirect vote; to serve six-year terms; the constitution requires half the council to be renewed every three years)


elections: National People's Assembly - last held 17 May 2007 (next to be held in 2012); Council of Nations (Senate) - last held 28 December 2006 (next to be held in 2009)


election results: National People's Assembly - percent of vote by party - FLN 23%, RND 10.3%, MSP 9.6%, PT 5.1%, RCD 3.4%, FNA 4.2%, other 34.6%, independents 9.8%; seats by party - FLN 136, RND 61, MSP 52, PT 26, RCD 19, FNA 13, other 49, independents 33; Council of Nations - percent of vote by party - NA; seats by party - FLN 29, RND 12, MSP 3, RCD 1, independents 3, presidential appointees (unknown affiliation) 24; note - Council seating reflects the number of replaced council members rather than the whole Council
Pipelines condensate 1,532 km; gas 13,861 km; liquid petroleum gas 2,408 km; oil 6,878 km (2007) condensate 1,344 km; gas 85,946 km; liquid petroleum gas 2,213 km; oil 6,496 km (2005)
Political parties and leaders Ahd 54 [Ali Fauzi REBAINE]; Algerian National Front or FNA [Moussa TOUATI]; National Democratic Rally (Rassemblement National Democratique) or RND [Ahmed OUYAHIA]; Islamic Salvation Front or FIS (outlawed April 1992) [Ali BELHADJ, Dr. Abassi MADANI, Rabeh KEBIR]; National Entente Movement or MEN [Ali BOUKHAZNA]; National Liberation Front or FLN [Abdelaziz BELKHADEM, secretary general]; National Reform Movement or Islah (formerly MRN) [Mohamed BOULAHIA]; National Renewal Party or PRA [Mohamed BENSMAIL]; Rally for Culture and Democracy or RCD [Said SADI]; Renaissance Movement or EnNahda Movement [Fatah RABEI]; Socialist Forces Front or FFS [Hocine Ait AHMED]; Social Liberal Party or PSL [Ahmed KHELIL]; Society of Peace Movement or MSP [Boudjerra SOLTANI]; Workers Party or PT [Louisa HANOUNE]


note: a law banning political parties based on religion was enacted in March 1997
Ahd 54 [Ali Fauzi REBAINE]; Algerian National Front or FNA [Moussa TOUATI]; National Democratic Rally (Rassemblement National Democratique) or RND [Ahmed OUYAHIA]; Islamic Salvation Front or FIS (outlawed April 1992) [Ali BELHADJ, Dr. Abassi MADANI, Rabeh KEBIR]; National Entente Movement or MEN [Ali BOUKHAZNA]; National Liberation Front or FLN [Abdelaziz BELKHADEM, secretary general]; National Reform Movement or Islah (formerly MRN) [Abdellah DJABALLAH]; National Renewal Party or PRA [Mohamed BENSMAIL]; Rally for Culture and Democracy or RCD [Said SADI]; Renaissance Movement or EnNahda Movement [Fatah RABEI]; Socialist Forces Front or FFS [Hocine Ait AHMED]; Social Liberal Party or PSL [Ahmed KHELIL]; Society of Peace Movement or MSP [Boudjerra SOLTANI]; Workers Party or PT [Louisa HANOUNE]


note: a law banning political parties based on religion was enacted in March 1997
Unemployment rate 14.1% (2007 est.) 15.7% (2006 est.)
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