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Algerian Economy

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Algerian Economy

Most important money makers to Algeria’s economy are oil and agriculture. But large parts of the revenues from oil do not reach the average Algerianbecause of corruption and badly planned projects. Algeria’s economy is to a major degree decided by the present political situation. Before the civil war started around 1992, Algeria had a fairly diversified economy, and the frames of this have probably survived the clashes that still take place.

Other industries are aiming at the domestic market as well as export of semi-refined goods to Europe. This industry has suffered heavily political situation over the recent years.Agriculture has suffered from the same politics, and has been little advanced since the colonial period. Inefficiency, and low input have made Algeria turn from a net exporter to a net importer of food.

The welfare system, once working well in Algeria, has gradually weakened to such a level that in many areas only the voluntary Islamists had anything to offer the sick, the poor and the unemployed. Slum, real slum, so rare in the Muslim world, has become a real problem in many of the country’s larger cities. Living standards among Algerians have dropped dramatically during the last 10-15 years, but this is more a reason for today’s political situation, than the result of it. Algeria has had a considerable middle class and upper class, and a growing portion of the population has fallen outside the benefits of the society.

Currency: Dinar=100 centimes
100 dinars=US$1.26. US$1=79.43 dinar (May, 2003)

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