Oil has been the central pillar of the Algerian economy. DR
Par A. Boumezrag – Since its emergence on the national scene in 1956, oil has exerted a dominating influence on Algeria, dictating not only its economic policies, but also its governance. Over the decades, oil has been the central pillar of the Algerian economy, providing substantial revenues but also posing major structural challenges. Oil boom periods saw Algeria prosper economically, with visible modernization in infrastructure and public services. However, this abundance has also fueled chronic dependence, weakening the national economy in the face of unpredictable fluctuations in global oil prices.
Politically, oil has consolidated the power of the Algerian state, influencing internal decisions and shaping the country’s external relations. Periods of high profits have sometimes masked deep-seated problems, including sometimes opaque governance and endemic corruption.
In 2024, Algeria faces a critical situation. Oil reserves are gradually dwindling, highlighting the urgency of economic diversification. This transition is essential to strengthen the country’s economic resilience and create sustainable employment opportunities for its growing youth.
Future prospects require a bold and strategic vision. Reducing dependence on oil will require deep structural reforms, particularly in the energy, agriculture and new technology sectors. Promoting innovation and entrepreneurship, as well as improving the business environment will be crucial to attracting the investments necessary for this transformation.
As Algeria enters a new phase of its economic development, the challenge of breaking away from oil domination is essential to guarantee a prosperous and sustainable future for its citizens. The path to economic diversification will not be without obstacles, but it represents a unique opportunity to unlock the potential of an entire country and forge a more resilient and inclusive future.
Oil, a true dictator in Algeria since 1956, has shaped not only the economy but also the governance of the country. Today, diversifying to survive is imperative in order to unlock the country’s economic and political potential.
A. B.
