The government-walis meeting, held this Saturday, September 25 in Algiers, was an opportunity for the President of the Republic Abdelmadjid Tebboune to make some economic and social announcements, in a situation marked by the decline in the purchasing power of a large fringes Population.
The Head of State once again recognized that Algeria has an “underdeveloped” economy, which will have to be changed from “rent” to “a knowledge economy” and “performance”.
“We must not hide the sun with a sieve: our economy perfectly meets the definition of an underdeveloped economy. It is a disintegrating economy, an economy where there is no intersectoral trade, an economy oriented towards imports,” lamented Abdelmadjid Tebboune.
“Waiting is no longer possible. We must make a qualitative leap and mobilize all energies (…) We must be the locomotive, not just anyone’s wagon,” he thundered.
A balanced trade balance at the end of 2021
Abdelmadjid Tebboune has in this sense announced that there will be new laws within the framework of the investment code, with the opening of the capital of public enterprises which, according to him, “have authoritarian and non-economic management.”
“We are going to open the capital of our companies to investments. We arrived at the need to open up capital, even that of banks. There will be new funding and a new management style,” he said.
He also reassured the walis by insisting on the decriminalization of the act of management, recalling that anonymous letters should not be taken into account and that any investigation targeting public officials must have the approval of the supervisory authority. The fear of legal proceedings is advanced by the President of the Republic as one of the causes of the current “lethargy” of investment.
In terms of good news, and even if the investment still does not take off, Algeria is on the way to achieve a performance that it has not seen for several years. The balance of payments, long in deficit, should be balanced by the end of the current year, according to the head of state. This is a forecast he made last April.
4 to 4.5 billion dollars in exports excluding hydrocarbons
“There are omens and clues, there are Algerians who deserve the recognition of the State”, launched the President of the Republic, who announces another performance: Algeria is not very far from it. The objective of exporting 5 billion dollars of non-hydrocarbon products, set a year ago by Tebboune.
“For the first time in more than 20 years, we have left the range of 1.8, 1.9 billion dollars of non-hydrocarbon exports. As I speak to you, we are at $ 3.1 billion. We hope to end the year with 4 or 4.5 billion dollars in non-hydrocarbon exports,” he said.
The Head of State recalls that the comments he made a year ago had been received with irony. “When, a year ago, I said we had to get to 5 billion, some did not take us seriously. People do not believe in the capabilities of their country. Algeria is a force, a strike force, the whole world recognizes Algeria, except some Algerians who only criticize (…) Everyone knows that Algeria is a regional force, a force for peace and ‘balance in the region (…) It is a problem of national dignity ”, he loses his temper. It is one of the rare times that President Tebboune raises his voice in a public speech.
Unemployment benefit effective at the start of 2022
On the social level, the flagship announcement of the Head of State is the implementation of unemployment benefits in “two or three months”. “Algeria is the first country of its size to institute such an allocation. It is a courageous decision which reflects our concern to take charge of our youth”, welcomes the President of the Republic. And it will not be a symbolic allowance, but a pre-salary.
“It will depend on the means available in each region. It will be deleted when the beneficiary is hired. It will be implemented at 100% in two or three months for its payment to be effective with the 2022 budget. We have allowances such as that for people with specific needs, but this will be a pre-salary”, announces- he.
Revision of the subsidy system
Before announcing the revision of the subsidy system, the President of the Republic wanted to remove any ambiguity, stressing that “social policy will continue, because it is part of the recommendations of the declaration of November 1, 1954”.
“We are not going to sanction the majority because of a few people. There may be, and this is a popular and elected demand, the revision of the current subsidy system which distributes little for everyone,” he said.
Commissions including elected officials, unions, and civil society should be installed in 2022 in order to come out with “a national vision for the redistribution of state aid”.
The objective is to arrive at a system where “the one who is in need must take more and the one who is free from want will take nothing”. “The State must help those who have insufficient income in consumer products”, reiterates the president who welcomes the solidarity between Algerians but who, he believes “must not diminish the responsibility of the State”.
Criminalization of speculation
The presidential speech comes in a context of high inflation and he could not avoid the question of the general rise in prices. For Mr. Tebboune, the culprit is designated, “speculation”, the work of “parasites” which have invaded the trade sector. For him, the solution is to criminalize such acts.
“We will see with the Minister of Justice and the Prime Minister to develop repressive laws to make speculation on commodities an unforgivable crime and punished as such (…) It is not acceptable nor of the point of view of religion or law or morality,” he denounces.
Abdelmadjid Tebboune explains that one can understand the increases when external factors are mentioned, such as the increase in international markets, but that this is not valid for goods produced locally. He also denounces the proliferation of intermediaries.
“For fruits and vegetables, production is abundant but between the producer and the consumer, there are ten intermediaries. The Ministry of Commerce is called upon to find a definitive structural and not cyclical solution. There has to be a producer, a wholesaler, a semi-wholesaler, and a retailer, no more. We are going to criminalize speculation,” he insists.
