Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Asharq Al-Awsat
Asharq Al-Awsat
World
Algiers - Asharq Al-Awsat

Lack of Financial Resources Deepens Algerian Government’s Problems

Ahmed Ouyahia gives a speech during a parliamentary election campaign in Algiers, Algeria April 29, 2017. REUTERS/Ramzi Boudina

The Algerian government is passing through its most difficult times since Prime Minister Ahmed Ouyahia came to power on August 15, as a result of scarcity in financial resources, the strike of doctors and teachers, and the criticism of local and international organizations over the condition of human rights in the country.

Given the current situation, some parties are demanding Ouyahia to break his silence and justify the developments taking place in the country, especially the dispute between the ministry of education and the union of teachers, and between the ministry of health and the syndicate of resident doctors.

According to political observers, Algerian President Abdelaziz Bouteflika had made a mistake by returning Ouyahia to the premiership because he is a “provocative” person who tends to show stubbornness towards social protests instead of calling for dialogue.

This policy has been adopted by Ouyahia since his first tenure in 1995. Back then the country was struggling economically because of the scarcity of products and goods as well as the failure of state-owned companies to give salaries to their employees.

He defended measures imposed by the International Monetary Fund (IMF) by shutting down dozens of institutions and dismissing hundreds of workers. Therefore, many sectors in Algeria have concerns that a similar scenario might take place.

Economist Ismail Lalmas told Asharq Al-Awsat newspaper that the government does not seem to have a plan B for the implementation of a ban on imports of hundreds of products in an effort to cut the trade deficit.

He said the government’s decision is “useless.”

Algeria's non-energy sector remains undeveloped, meaning most goods consumed by its 40 million-strong people are shipped from abroad. Oil and gas account for 60 percent of the state budget.

At the start of this year, authorities banned the import of 851 products including foodstuffs and some raw materials in a bid to address a gaping trade deficit that widened as energy earnings almost halved since mid-2014.

The government’s economic problems have been exacerbated by a tough criticism from human rights associations, which have warned against a drop in civil liberties including freedom of speech against the backdrop of the arrest of social media activists. 

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.