'Participatory govt the only way to conquer the future'

Algerian President Abdelaziz Bouteflika is on his country's first ever visit to Indonesia by a head of state. During the four-day visit, which began on Sunday, Bouteflika responded to written questions submitted by The Jakarta Post's Oei Eng Goan and Harry Bhaskara. The following is an excerpt of the interview.

Question: Since you assumed the presidency in 1999, Algeria has made great strides in its economy, as reflected in the significant increase in its foreign exchange reserves and falling external debt. Could you elaborate on the formula used for these economic gains?

Answer: Indeed, significant strides have been accomplished in the last three years. The financial and macroeconomic balance has been reestablished and consolidated. The enormous budget deficit has been absorbed; and despite a threefold increase in government spending in infrastructure and human resources development, the budget is still balanced. The external debt burden is all manageable, the debt service represents 18 percent of our exports, down from 65 percent in 1999.

We started the transformation of our economy to make it more efficient through a comprehensive program of reforms. Almost all our legislation has been adjusted. The tax system, the customs regime, the investment climate are the kind of policies we introduced .... We also opened, in what I may call a calculated manner, our economy to the world, starting our integration into the European market, which will be achieved in the next 10 years.

(W)e decided to launch a three-year program of about US$8 billion aimed at fostering local development and promoting employment -- which is showing real positive effects (in) depressed regions.

We offered to our business community incentives and an effective environment; the private sector, marginal in size only a few years ago, has been experiencing for the last three years significant development, namely in the industrial and agricultural sectors, not to mention the service sector.

The recipe (for the economy) consist of peace and reconciliation, political and macroeconomic stability, will and commitment and the mobilization of all stakeholders around clear objectives to make the economy more effective and firms more competitive. It is the program I proposed in 1999 and which the Algerian people approved.

(Yet) we face problems of a new kind, pertaining to the emergence of a new economy. We have to consolidate all that we secured and to deepen our economic reform endeavors.

A new open economy and free enterprise make very crucial the need to strengthen national solidarity. Free enterprise and economic openness will make and is making our economy more efficient, but it has adverse social effects. It is our responsibility not to leave behind those citizens or those regions which might be left on the sidelines ....

What has been done to cater to the younger generation, which, as in many other countries, is demanding greater political freedom?

Democracy and good governance, i.e. justice and a public service respectful of the citizenry and the law, are the very framework within which economic development can become reality.

Without people's support ... to solve their own problems, the government has but a limited possibility to achieve its development goals .... Restructuring public institutions, strengthening the public agencies' methods of work and simplifying and improving their procedures are tantamount in our program of development.

Encouraging and promoting a culture of citizenship, finding ways to have the local communities participate effectively ... are critical.

Our citizens have indeed understood that it is the only way to conquer the future. The young generation, the majority of our population, is for and wants change. That is legitimate and now that the institutional reforms have been launched, we will listen even more closely to our youth to adjust and improve our actions.

What agreements have you reached with President Megawati Soekarnoputri? What kinds of cooperation are planned?

Our countries concluded all the bilateral accords essential to the promotion of our cooperation and to promote trade. My very presence represents the initiation of the implementation of these accords. Our trade relations went up to $234 millions in 2002, up from $200 million in 1999.

President Megawati Soekarnoputri and myself are aware that economic partnership and trade can further develop and diversify if our business communities have fora to enable direct ties ....

This is why (our respective) business communities are meeting in Jakarta during my visit and a cooperation agreement is being signed between the chambers of commerce and industry of our two countries. Indeed, new prospects of partnership are emerging that are likely to generate more trade. These are indeed the primary objectives that our two governments have set to give our political bilateral relations, which are excellent, substance.

How do you see the development of the global fight against terrorism over the past two years?

It is reassuring to note that since the unfortunate attack of Sept. 11 (2001), the international community has become aware of the terrorist threat looming over all countries. Algeria, which experienced through the killing of its children the misdeeds of this scourge, never stopped calling attention to the danger terrorism represents.

It was unfortunately neither listened to nor backed in its struggle until Sept. 11. But things have changed over the past two years. Fighting terrorism has become an objective shared by all nations. But one sometimes notes some misinterpretations in that even a legitimate resistance by a people to foreign oppression is likened by some countries to terrorism. This applies indeed to the Palestinian resistance to the Israeli occupation. This ambiguity in defining terrorism can carry a danger to world peace and stability ....

How do you address the issue of Islamic fundamentalism in your country? And how would you respond to the observation that Islamic fundamentalism is on the rise in the world?

Algeria went through a period where Islam was used for political ends. This was instrumental in the national tragedy that the country experienced and then overcame. It confronted terrorism with courage and dignity thanks to a relentless resistance waged by the forces of the nation, in particular its army and law enforcement forces.

It also dealt with terrorism by calling on genuine Islam, a religion of tolerance and peace, and by massively supporting the policy of civil concord initiated in 1999.

Today, by virtue of this policy, all the political stakeholders, including the Islamists, are represented in the Parliament and the government. Political violence and terrorism are unanimously condemned.

Hearts and minds are at peace. Hope is revived. The situation is back to normal. Now concerning the ascent of what you call Islamic fundamentalism in the world, this constitutes a reality that is hard to ignore as long as there is injustice, inequality and the fostering of a diabolic perception of Islam and Muslims.