Algerian economy coming out of eight years of stagnation

Algerian economy coming out of eight years of stagnation

JAKARTA (JP): Although lying far away in northwest Africa,
Algeria is one of Indonesia's closest friends, be it as a
predominantly Moslem country or as a developing nation.

Indonesia also gave strong moral support to the Algerian
people and patriots during their struggle for independence when
they began to take up arms against the French colonial rule on
Nov. 1, 1954, up to the time they achieved victory on July 5,
1962, making Algeria a sovereign country.

Marking the 44th anniversary of Algeria's national day, which
falls on Nov. 1, The Jakarta Post posed a number of questions to
Soufiane Mimouni, Algeria's ambassador to Indonesia.

How do you see trade relations between Algeria and Indonesia
over the past few years?

Trade relations between Algeria and Indonesia have progressed
in a positive way in the last few years with the volume of annual
transactions reaching more than US$150 million. This increase in
trade between the two countries was also followed by the signing
of several important agreements like the one on the avoidance of
double taxation and the setting up of a joint commission. But
this positive result does not reflect, in my view, the real
potentialities of the two countries and there is still
insufficient knowledge of the opportunities in the two markets.

Therefore even if trade relations have witnessed significant
improvements, much remains to be done by the two countries to
take the best of their economic potentialities and give a real
sense to the South-South cooperation.

In your opinion, what other measures should the two countries
take to boost bilateral trade in term of value and volume?

In order to foster the bilateral cooperation, I believe that
efforts from both sides should be devoted to create a strong
cooperation, not only based on trade, but also on sound
partnerships. Furthermore, there is a need to promote the
opportunities of the two markets.

Businessmen from both sides seem to concentrate their efforts
on proximity or traditional markets. This situation has to
change. The two countries also need to increase the number of
visits by their officials and businessmen. But I remain confident
that the two countries will achieve this goal and the next
holding of the session of the joint commission will certainly
contribute to expanding the Algerian-Indonesian economic
relations.

Can you tell us about the recent political developments in
Algeria?

Algeria has been engaged in the last four years in a process
aimed at building a strong and modern state and establishing a
genuine democracy. Following a political process initiated by
President Liamine Zeroual in 1994, which included all political
parties which accepted to respect the constitution and reject
violence, Algeria as a whole engaged in an action to restore the
electoral process with all guarantees of legitimacy and
transparency including the presence of international observers.

Today, Algeria has already completed its electoral process and
succeeded in establishing democratic institutions based on free
and fair elections. All Algerians enjoy full freedom. Our medias
are independent and reflect reality in total liberty. The opinion
of several personalities who recently visited the country
converge on the fact that the democratic process in Algeria is
truly authentic.

The recent decision of President Liamine Zeroual to call for
an early presidential election, in which he will not be a
candidate, will definitely contribute toward deepening the
democratic political process. In addition, it will allow for the
free exercise of power transfer which constitutes one of the main
pillars of democracy.

In short, Algeria of today is the reflection of a country at
work, mobilized to ensure the reestablishment of its security and
stability, to consolidate its democracy and to resolve the
entangled socio economic problems.

Is there a chance for the outlawed Islamic Salvation Front
(FIS) to take part in the coming presidential election which is
scheduled for early next year?

The file of the outlawed Islamic Salvation Front (FIS) is
closed and there is no way it will take part in the next
presidential election. All national political forces which had in
the past accepted two basic conditions, namely the respect for
the constitution, the law and the rejection of violence, have
today become part of the national political scene. Those who are
not taking part in this process are those who have chosen to
devote themselves passively or actively to terrorism.

How great a role does the Algerian press play in the
development of democratization and human rights in your country?

We are proud to have a vibrant and pluralistic press which
reflect reality in total liberty. In this regard, I must say that
the Algerian press is playing a significant role in the
consolidation of democracy in the country by tackling all issues.
The independence of our press is an important gain which attests
the respect of freedom of expression in our country.

In our effort to reinforce the democratic process, we are
convinced that democracy and human rights cannot be dissociated
and the government continues to stress the primacy of human
rights and the rule of law.

In this regard, several institutions have been established
among them a national human rights observatory which report
directly to the President and an ombudsman. Besides a national
mechanism, Algeria is party to 32 conventions on human rights and
is regularly fulfilling its conventional obligations by reporting
to UN human rights treaty bodies.

So as far as human rights are concerned I don't think that
there are human rights violations in Algeria as some pretend.
There are some individuals and isolated cases of excess behavior
which the Algerian authorities have not only admitted, but whose
authors were systematically brought before the tribunals and
sentenced.

This can happen in any country and the Algerian authorities
are making every possible effort to prevent such cases.

How is the government dealing with the economic crisis ?

Algeria has experienced a strong economic transformation
during the past four years. Indeed, political reforms have gone
hand in hand with economic restructuring. The government has
engaged on a vast program of reforms aimed at liberalizing the
economy and establishing a firm foundation for a competitive
modern economy.

The results of these reforms are today clear. Despite a
continuous decrease in oil prices, Algeria has revived its
economy from eight successive years of stagnation and achieved
steady growth rates, with the last three years showing a positive
performance and a strong growth forecast in 1998.

The government expects this year's gross domestic product to
grow by 5 percent. Inflation which was 29 percent in 1995 fell to
5 percent in 1998. The country's foreign exchange reserves now
stand at $8 billion compared to $2 billion in 1995. The budget
deficit which was 4.4 percent of GDP in 1994 transformed into a
surplus in the last three years. There were also improvements in
the balance of trade where Algeria achieved a trade surplus.

This improvement in the economic situation of Algeria need now
to be supported through a strengthening of growth and an increase
in employment. (ego)