Algeria’s Crisis: An Intersection of Economic Fragility and Political Deadlock

Christian Baghai
3 min readOct 6, 2023

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Algeria stands at the crossroads of economic fragility and political unrest, a volatile blend threatening to unravel the very fabric of the nation. The Maghreb giant, a pivotal player in North Africa, is a case study in how systemic issues, if not resolved promptly and adequately, can lead to a societal malaise that could have far-reaching implications.

Economic Woes: When Black Gold Loses Its Luster

Algeria’s severe economic crisis traces its origins to a singular dependency on oil revenues, which have plummeted in recent years. The economic decline has been exacerbated by the crippling COVID-19 pandemic, eroding both public health and social welfare systems. The statistics are alarming: Algeria’s economy shrank by a stunning 6.4 percent in 2020, with only a marginal projected recovery of 2.9 percent in 2021. In this declining financial landscape, the unemployment rate has surged, hitting young Algerians particularly hard.

The problem is not just cyclical but structural. The country’s economy is marred by inefficiencies, low productivity, rampant corruption, and a sprawling informal sector that operates beyond the reach of state regulation and taxation. All of these culminate in an economic framework that is less a model of sustainable development and more a ticking time bomb of social discontent.

The Political Maze: A Closed Circuit of Elite Dominance

While the economy stumbles, Algeria’s political system is far from being the stabilizing anchor one would hope for. Dominated by a closed elite — comprising military figures and the ruling party, the National Liberation Front (FLN) — the regime has found itself under siege from its people since 2019. The Hirak movement, a spontaneous, widespread uprising, sparked when then-President Abdelaziz Bouteflika announced his intention to run for a fifth term. The protesters demanded not just the end of Bouteflika’s reign but the overhaul of an entire system marred by corruption and authoritarianism.

Although Bouteflika eventually resigned, the presidential elections that followed, won by Abdelmadjid Tebboune, were seen as more of the same — a reshuffling of the same old cards. The regime’s attempts at constitutional reform have been dismissed as mere window-dressing, lacking the substantive changes that could herald a new era of democracy and accountability. This popular disillusionment manifests in shockingly low electoral participation rates, signifying a loss of faith in institutional politics.

A Troubled History with France: The Past as Prologue

Further complicating matters is Algeria’s often fractious relationship with France, its former colonial ruler. The political rhetoric between the two nations reached a fever pitch in October 2021, after comments from French President Emmanuel Macron led Algeria to recall its ambassador and ban French military planes from its airspace. This diplomatic tit-for-tat only deepens the mistrust and animosity that exist on both sides, further isolating Algeria on the global stage.

The Crisis of Legitimacy: Where Do We Go from Here?

With a government widely perceived as illegitimate and disconnected from its people, Algeria’s challenges are not just economic or political but fundamentally existential. Repression of activists, journalists, and critics has not silenced the Hirak movement; it has merely deepened the state’s credibility crisis and its isolation from the Algerian populace.

In this convoluted landscape, there is a pressing need for transformative change — a radical overhaul of both the economic and political systems. Cosmetic reforms and blame games with foreign nations will not suffice. What is needed is a transparent, accountable, and democratic government that can usher in economic reform, diversify the country’s revenue streams, and restore faith in the electoral process.

The Algerian people have signaled their readiness for change. The question now is, can the state rise to meet them? The clock is ticking, and the world is watching.

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Christian Baghai
Christian Baghai

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