ABSTRACT

The late 1980s were characterised by the disintegration of communism and the long struggle in many formerly socialist countries to transform their economies from command to market-based systems. Despite many vested political interests favouring the status quo, Algeria was among those that undertook comprehensive programmes of economic and political reform. While many countries, with the exception of Cuba and North Korea, have attempted to make this transition, the decision to do so and the appropriate path and pace are neither unambiguous nor inevitable. This essay begins by examining the impetus for Algeria’s decision to commence with reforms aimed at opening its political and economic systems in the presence of so many who benefited from the state-centred structure. Second, it assesses the areas in which Algeria has made progress as well as those sectors in which political and economic obstacles delay reform, and identifies lessons for the future. Finally, it proposes measures that could hasten the transition period and put the country on track toward a more open and democratic society based, among other things, on a market-oriented economic system.