COUNTRY FACT SHEET ALGERIA (August 2012) Disclaimer IOM has carried out the gathering of information with great care. IOM provides information at its best knowledge and in all conscience. Nevertheless, IOM cannot assume to be held accountable for the correctness of the information provided. Furthermore, IOM shall not be liable for any conclusions made or any results, which are drawn from the information provided by IOM. 1 Table of contents I. GENERAL INFORMATION 1. Geography 2. Population 3. Government 4. Economy 3 II. INFRASTRUCTURE 1. Public Transport 2. Communications Network 7 III. MIGRATION 8 IV. SOCIAL WELFARE 1. General Information 2. Recent Developments 9 V. POVERTY REDUCTION 10 VI. HEALTH AND EDUCATION 10 VI. LABOUR MARKET 1. General Indicators 2. Overview: Focus on Youth Unemployment 11 VII. FINCANCIAL SECTOR 13 VIII. GENDER EQUALITY 14 IX. REINTEGRATION AND RECONSTRUCTION ASSISTANCE 14 X. TRAFFICKING IN PERSONS 14 XI. INTERNATIONAL ORGANISATIONS AND NGOs 15 2 I.GENERAL INFORMATION 1. Geography1 Location: Northern Africa, bordering the Mediterranean Sea, between Morocco and Tunisia Area: total: 2,381,741 sq km land: 2,381,741 sq km water: 0 sq km Land boundaries: Total: 6,343 km border countries: Libya 982 km, Mali 1,376 km, Mauritania 463 km, Morocco 1,559 km, Niger 956 km, Tunisia 965 km, Western Sahara 42 km Coastline: 998 km Climate: Arid to semiarid; mild, wet winters with hot, dry summers along coast; drier with cold winters and hot summers on high plateau; sirocco is a hot, dust/sand-laden wind especially common in summer Natural resources: Petroleum, natural gas, iron ore, phosphates, uranium, lead, zinc Land use: arable land: 3.17% permanent crops: 0.28% other: 96.55% 2. Population Population2: 37,100,000 18,776,310 male, 18,323,690 female (based on sample of 10,000) Population Density3: 14.4 (people per km2, 2008) Growth rate4: 2.04% Urban Population5: 65.9 (% of pop., 2009) Age structure67: 1 2 3 0-14 years: 27.74% (male 5,275,620/female 5,012,210) 15-64 years: 66.8% (male 12,502,700/female 12,280,100) 65 years plus: 5.46% (male 1,001,700/female 1,027,670) CIA World Factbook Algeria; CIA. Retrieved from https://www.cia.gov/library/publications/the-world-factbook/geos/ag.html DEMOGRAPHIE ALGERIENNE, no. 600, 2011, Office National des Statistiques, Algeria. World Bank Migration and Remittances Factbook, 2011 4 DEMOGRAPHIE ALGERIENNE, no. 600, 2011, Office National des Statistiques, Algeria. 5 Ibid. 6 Ibid. 7 Source: Population Division of the Department of Economic and Social Affairs of the United Nations Secretariat (2009). World Population Prospects: The 2008 Revision. Highlights. New York: United Nations. 3 Median age8: total: 27.6 years male: 27.4 years female: 27.8 years (2011 est.) Age Dependency Ratio: 46.9% (2009)9 Birth rate10: 24.78 births/1,000 population Death rate11: 4.41 deaths/1,000 population Total fertility rate12: 2.87 children born/woman Religions13: Sunni Muslim (state religion) 99%, Christian and Jewish 1% Languages: Arabic (official), French, Berber dialects (also taught in schools) 3. Government14 The state of emergency which had been in force since 1992 was lifted during 2011 following mass protests, and several pieces of legislation were enacted, dealing with political parties, the electoral code and the representation of women in elected bodies.15 Administration: 48 provinces (wilayat): Adrar, Ain Defla, Ain Temouchent, Alger, Annaba, Batna, Bechar, Bejaia, Biskra, Blida, Bordj Bou Arreridj, Bouira, Boumerdes, Chlef, Constantine, Djelfa, El Bayadh, El Oued, El Tarf, Ghardaia, Guelma, Illizi, Jijel, Khenchela, Laghouat, Mascara, Medea, Mila, Mostaganem, M'Sila, Naama, Oran, Ouargla, Oum el Bouaghi, Relizane, Saida, Setif, Sidi Bel Abbes, Skikda, Souk Ahras, Tamanghasset, Tebessa, Tiaret, Tindouf, Tipaza, Tissemsilt, Tizi Ouzou and Tlemcen. Independence: 5 July 1962 (from France) National holiday: 5 July 1962 National holiday: Revolution Day, 1 November (1954) Executive branch: Chief of state: President Abdelaziz BOUTEFLIKA (since 28 April 1999) Head of government: Prime Minister Ahmed OUYAHIA (since 23 June 2008) Cabinet: Cabinet of Ministers appointed by the president Elections: president elected by popular vote for a five-year 8 CIA World Factbook Algeria; CIA. Retrieved from https://www.cia.gov/library/publications/the-world-factbook/geos/ag.html World Bank Migration and Remittances Factbook ,2011. DEMOGRAPHIE ALGERIENNE, no. 600, 2011, Office National des Statistiques, Algeria. 11 Ibid. 12 Ibid 13 CIA World Factbook Algeria; CIA. Retrieved from https://www.cia.gov/library/publications/the-world-factbook/geos/ag.html 14 Ibid 15 African Economic Outlook 2012, Algeria, http://www.africaneconomicoutlook.org/en/countries/north-africa/algeria/ 9 10 4 term (eligible for a second term); election last held 8 April 2004 (next to be held in April 2014); prime minister appointed by the president. Election results: Abdelaziz BOUTEFLIKA re-elected president for third term; percent of vote - Abdelaziz BOUTEFLIKA 90.24%, Louisa Hanoune: 4.22%; Moussa Touati: 2.31% IO’s: ABEDA, AfDB, AFESD, AMF, AMU, AU, BIS, FAO, G-15, G-24, G-77, IAEA, IBRD, ICAO, ICC, ICCt (signatory), ICRM, IDA, IDB, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC, LAS, MIGA, NAM, OAPEC, OAS (observer), OIC, OPCW, OPEC, OSCE (partner), UN, UNCTAD, UNESCO, UNHCR, UNIDO, UNITAR, UNMEE, UNWTO, UPU, WCO, WHO, WIPO, WMO, WTO (observer) 4. Economy16 Hydrocarbons have long been the backbone of the economy, accounting for roughly 60% of budget revenues, 30% of GDP, and over 95% of export earnings. Algeria has the tenthlargest reserves of natural gas in the world and is the sixth-largest gas exporter. It ranks 16th in oil reserves. Algeria is running substantial trade surpluses and building up record foreign exchange reserves. Algeria has decreased its external debt is about 2% of GDP after repaying its Paris Club and London Club debt in 2006. Real GDP has risen due to higher oil output and increased government spending. The government's continued efforts to diversify the economy by attracting foreign and domestic investment outside the energy sector. The government's efforts to diversify the economy by attracting foreign and domestic investment outside the energy sector have done little to reduce high youth unemployment rates or to address housing shortages. A wave of economic protests in February and March 2011 prompted the Algerian Government to offer more than $23 billion in public grants and retroactive salary and benefit increases. Public spending has increased by 27% annually during the past five years. Long-term economic challenges include diversification from hydrocarbons, relaxing state control of the economy, and providing adequate jobs for younger Algerians. GDP (purchasing power parity) 17: $313.552 billion GDP (official exchange rate)18: $188.681 billion GDP - real growth rate19: 2.5% GDP – per capita20: $5.244 GDP - composition by sector21: agriculture:12% industry:56.5% services: 31.5% (2011 est.) 16 CIA World Factbook Algeria; CIA. Retrieved from https://www.cia.gov/library/publications/the-world-factbook/geos/ag.html. World Bank Data 2011 Ibid 19 Ibid 20 Ibid 17 18 5 Labor force22: 11.04 million (2011 est.) Unemployment23: 10% (2010) Population below poverty line24: 23% (2006 est.) Inflation rate (consumer prices) 25: 4.5% Investment (Gross fixed) 26: 33.3% of GDP (2011 est.) Budget27: revenues: $73.74 billion expenditures: $78.58 billion (2011 est.) Public debt28: 6.6% of GDP (2011 est.) Industrial production growth rate: -3.1% (2011 est.) Current account Balance: Exports: Imports: $18.12 billion (2011 est.) $78.51 billion (2011 est.) $49.84 billion (2011 est.) Net bilateral aid Flows from Development Assistance Commission Donors29: $194,710,000 (2010 est.) Reserves of foreign exchange and gold: $185.9 billion (31 December 2011 est.) Debt - external: $4.421 billion (31 December 2011 est.) Stock of direct foreign investment - at home: $24.53 billion (31 December 2011 est.) - abroad: $1.944 billion (31 December 2011 est.) 21 CIA World Factbook Algeria; CIA. Retrieved from https://www.cia.gov/library/publications/the-world-factbook/geos/ag.html. Ibid. 23 Statistical Update on Arab States and Territories and North African Countries, ILO Department of Statistics, May 2011. 24 CIA World Factbook Algeria; CIA. Retrieved from https://www.cia.gov/library/publications/the-world-factbook/geos/ag.html. 25 World Bank Data 2011 26 CIA World Factbook Algeria; CIA. Retrieved from https://www.cia.gov/library/publications/the-world-factbook/geos/ag.html. 27 Ibid. 28 Ibid. 29 World Bank Data 2011 22 6 Currency (code): Algerian dinar (DZD) Exchange rates: Algerian dinars per US dollar – 72.51 (2011) 76 (2010), 72.65 (2009), 63.25 (2008), 69.9 (2007), 72.647 (2006) II. INFRASTRUCTURE 1. Public transport30 • Airports: 142 (2012) with paved runways : 60 with unpaved runways: 82 • Heliports: 3 (2012) • Railways: total: 3,973 km standard gauge: 2,888 km 1.435-m gauge (283 km electrified) narrow gauge: 1,085 km 1.055m gauge • Roadways: total: 111, 261 km paved: 81, 732 km unpaved: 29, 529 km • Merchant marine: total: 38 ships by type: bulk carrier 6, cargo 8, chemical tanker 3, liquefied gas 11, passenger/cargo 3, petroleum tanker 4, roll on/roll off 3, foreign-owned: 15 (UK 15) (2010) • Ports / terminals: Algiers, Annaba, Arzew, Bejaia, Djendjene, Jijel, Mostaganem, Oran, Skikda 2. Communication Network Telecommunication With a fixed-line penetration of around 8% and mobile penetration close to 100%, Algeria has one of the highest teledensities in Africa. Its relatively well developed infrastructure includes a national fibre backbone and one of Africa’s first FttH deployments. The country’s oil and gas reserves have made it one of the wealthiest nations in Africa. Competition in the fixed-line sector received a setback in 2008 when the second operator, Lacom (a joint venture between Egypt’s Orascom Telecom and Telecom Egypt) exited the market after three years of operations, citing regulatory barriers that made it impossible to compete with Algerie Telecom. Only months later, the already delayed privatisation of Algerie Telecom was called off and the licensing of third generation mobile spectrum delayed further. The number of fixed lines in service fell by 16% the following year but has since then recovered. 3G licences are now expected in 2012. To provide fixed connections, Algerie Telecom has made extensive use of CDMA wireless technology which supports broadband and full mobility. In parallel with the access networks, the national and international fibre optic backbone is being upgraded to an IP-based nextgeneration network. The government has announced investments of €100 million into national fibre infrastructure over the five years to 2014.31 30 CIA World Factbook Algeria; CIA. Retrieved from https://www.cia.gov/library/publications/the-world-factbook/geos/ag.html. Algeria - Key Statistics, Regulatory and Fixed-Line Telecoms Overview, 2012 https://www.budde.com.au/Research/AlgeriaKey-Statistics-Regulatory-and-Fixed-Line-Telecoms-Overview.html 31 7 Subscriber growth in Algeria’s mobile market has slowed considerably, and the attention is shifting to maintaining or improving the average revenue per user which has continued to decline under intensifying price competition between the three networks: Algerie Telecom’s Mobilis, Orascom’s Djezzy, and Wataniya’s Nedjma. The operators have entered the underdeveloped internet market by launching basic mobile data services, but the licensing of third-generation spectrum has been delayed, which has made it difficult for them to fully compete in the broadband sector. The market has been affected by the global economic crisis, and its recovery will in part depend on how the wave of social and political unrest currently sweeping the region will pan out. A shadow has also been cast on investor confidence by recent moves of the government to take control of the country’s leading mobile operator. However, should the mobile networks succeed in ending their price war and transforming themselves into converged service providers, absorbing much of the broadband internet market on top of the mobile voice market, the market still has enormous potential.32 • Telephones - main lines in use33: 2.923 million (2009) • Telephones - mobile cellular: 32.78 million (2009) • Domestic: a limited network of fixed lines with a teledensity of less than 10 telephones per 100 persons is offset by the rapid increase in mobile-cellular subscribership; in 2010, combined fixed-line and mobile-cellular teledensity was roughly 100 telephones per 100 persons • International: country code - 213; landing point for the SEA-ME-WE-4 fiber- optic submarine cable system that provides links to Europe, the Middle East, and Asia; microwave radio relay to Italy, France, Spain, Morocco, and Tunisia; coaxial cable to Morocco and Tunisia; participant in Medarabtel; satellite earth stations - 51 (Intelsat, Intersputnik, and Arabsat) Internet country code: Internet hosts: Internet users: Internet penetration34: .dz 561 4.7 million 13.4% III. MIGRATION Net migration rate35: -0.27 migrant(s)/1,000 population (2011 est.) Remittances36: USD 1,942 million Emigration (2010)37: - Stock of emigrants: 1,211,100 - Stock of Emigrants as a percentage of population: 3.4% - Top destinations: France, Spain, Israel, Canada, Italy, Belgium, Germany, the United Kingdom, Tunisia, the United States 32 Ibid. CIA World Factbook Algeria; CIA. Retrieved from https://www.cia.gov/library/publications/the-world-factbook/geos/ag.html. 34 Internet World Stats,2011 http://www.internetworldstats.com/stats1.htm 35 CIA World Factbook Algeria; CIA. Retrieved from https://www.cia.gov/library/publications/the-world-factbook/geos/ag.html 36 World Bank Data 2011, from IOM Algeria website http://www.iom.int/jahia/Jahia/algeria 37 World Bank Migration and Remittances Factbook, 2011 33 8 Skilled Emigration (2000): - Emigration rate of tertiary-educated population: 9.4% - Emigration of physicians: (a) 879 or 2.8% of physicians trained in the country (b) 10,860 or 44.3% of physicians born in the country - Emigration of nurses: 8,245 or 9.0% of nurses born in the country Immigration (2010): - Stock of immigrants: 242.3 thousands - Stock of immigrants as percentage of population: 0.7% - Females as percentage of immigrants: 45.2% - Refugees as percentage of immigrants: 38.9% IV. SOCIAL WELFARE38 1. General Information: • Regulatory Framework: First law: 1949. Current laws: 1983, implemented in 1984, with 1996, 1997, and 1999 amendments; and 1994 (early pension). • Type of System: Social insurance system. Coverage includes all persons employed under a labour contract, domestic workers, actors, and certain categories of fishermen and apprentices with earnings at least equal to half the legal minimum wage (18,000 dinars) unless disabled, ill, retired or in receipt of benefits. Dependants (spouse, children) are also covered by employed person’s contributions. There are special systems for the armed forces. • Source of funds: Based on contributions of those insured, employer payroll contributions, and government subsidies. • Areas Covered: - Old Age, Disability, Survivors Sickness and Maternity Work Injury Unemployment Family Allowances • Eligibility Criteria: are strictly defined according to circumstances of member(s) of the household who pay contributions. They are disbursed in parity with the minimum wage (18,000 dinars) or historic earnings. 2. Recent Developments: The social-security safety net has been strengthened and steps were taken in February 2011 to give a general subsidy to the prices of widely consumed products such as cereals, sugar, cooking oils and milk. The removal of makeshift housing and the development of social housing are on the agenda. As part of the battle against unemployment among the young (aged15-24), job creation measures have been strengthened and access to them made easier and more flexible. 38 US Social Security Administration. Algeria—Social Security Programs Throughout the World: Africa. Retrieved from http://www.ssa.gov/policy/docs/progdesc/ssptw/2004-2005/africa/algeria.html 9 Emergency measures were taken against a background of powerful social demands. Pay rises were granted, varying according to the different sectors. The national minimum wage rose from DZD 15 000 to DZD 18 000. In December 2011 pensions rose by 20% to 30%. People without pensions or income benefit from a special solidarity allowance (AFS). The 2011 budget also provided for the state to take over the share of social contributions withheld from the pay of each employee recruited in the context of social insertion measures. A special tax on the purchase of pleasure boats (set at DZD 250 000, or USD 3 345) was introduced. A levy of 5% on the net profits of importers and wholesalers of imported medical supplies also came into effect. The product of these two taxes is paid into the national socialsecurity fund, the FNSS. 39 V. POVERTY REDUCTION40: Population below poverty line41: 23% (2006 est.) Poverty headcount ratio at national poverty line 4.3% (2005) (% of pop) 42: Household income or consumption by percentage share43: lowest10%:2.8% highest 10%: 26.8% (1995) Distribution of family income Gini index44: 35.3 (1995) Substantial progress has been made towards the Millennium Development Goals (MDGs). Per capita GDP was USD 4 500 in 2011 compared with USD 1 610 in 2000. Only 0.5% of the population lived in conditions of extreme poverty in 2011, compared with 1.9% in 1988. As defined by the MDGs, extreme poverty was almost completely eradicated in 2011. In respect of health, life expectancy rose from 71 in 2000 to 74.5 in 2011 (76.3 for women and 72.8 for men.) According to the UNDP's HDI, Algeria occupies 96th place in a total of 187 countries. Housing remains a major challenge, as does unemployment, which affected 10% of the labour force in 2011 (and 27% of those aged under 30). VI. HEALTH AND EDUCATION 45: Infant mortality rate46: total: 23.1 deaths/1,000 live births male: 24.6 deaths/1,000 live births female: 21.6 deaths/1,000 live births 39 African Economic Outlook 2012, Algeria, http://www.africaneconomicoutlook.org/en/countries/north-africa/algeria/ Ibid. CIA World Factbook Algeria; CIA. Retrieved from https://www.cia.gov/library/publications/the-world-factbook/geos/ag.html. 42 World Bank Migration and Remittances Factbook, 2011 43 CIA World Factbook Algeria; CIA. Retrieved from https://www.cia.gov/library/publications/the-world-factbook/geos/ag.html. 44 Ibid. 45 African Economic Outlook 2012, Algeria, http://www.africaneconomicoutlook.org/en/countries/north-africa/algeria/ 46 DEMOGRAPHIE ALGERIENNE, no. 600, 2011, Office National des Statistiques, Algeria. 40 41 10 Life expectancy47: total population: 76.4 years male: 75.7 years female: 77.2 years Literacy48: Definition: age 15 and over can read and write total population: 72.6% male: 81.3% female: 63.9% (2006 est.) Algeria has made developing human resources a priority. A 2011 United Nations Development Programme (UNDP) report confirmed that progress has been made. Algeria recorded a score of 0.698 in the Human Development Index (HDI) and occupies 96th place out of 187 countries in the HDI ranking. In general terms its performance in the fields of access to basic education and health care are good. Efforts are being madeto improve the co-ordination of public policies and provide good-quality services. The major public investment programme drawn up for the period 2010-14 and costing USD 286 billion could be implemented in a more effective way. About 40% of the programme, or USD 154 billion, has been set aside for human development through the creation of almost 5 000 educational establishments, 1 500 sanitation infrastructures and improved access to drinking water. In 2011, social spending actually carried out amounted to USD 17.2 billion, USD 3.14 billion of which were devoted to the area of public health. School attendance is compulsory for children aged between 6 and 15. The national education service has 7.38 million children in primary (44%), middle (42.8%) and secondary (13%) schools. The number of girls is put at 3.64 million, or 49.3% of pupils, for a ratio of 97 girls for every 100 boys. Almost 208 000 pupils are educated through correspondence courses and 18 000 are privately schooled. There are more than 22 000 schools nationwide. Some 1.25 million students were enrolled in higher education in 2011-12. The literacy rate is 80%. As part of its national literacy strategy, the country aims to cut by 22% the rate of illiteracy among those aged 10 and above by 2012. VI. LABOUR MARKET49 1. General Indicators: Total Labour Force50: 11.04 million (2011) Labour Force Participation: 41.7% (2010) Employment to Population: 37.6% (2010) Paid to Total Employment: 33.4% (2010) Unemployment51: 10% (2010) Youth Unemployment: 21.5% (2010) 47 Ibid.. 48 UNESCO National adult literacy rates (15+), youth literacy rates (15-24) and elderly literacy rates (65+) 49 Statistical Update on Arab States and Territories and North African Countries, ILO Department of Statistics, May 2011. 50 CIA World Factbook Algeria; CIA. Retrieved from https://www.cia.gov/library/publications/the-world-factbook/geos/ag.html. 51 Statistical Update on Arab States and Territories and North African Countries, ILO Department of Statistics, May 2011. 11 Situation of Females in Labour Market: Labour market participation is lower among females (approximately 14% vs. 68%) and unemployment rates are higher for females (over 15%), especially young females (approx 25%) (2006-2010 averages). Unemployment Rate by Education Level (2010): • Less than basic: 1.9% • Basic: 7.6% • Intermediate: 8.9% • Advanced: 20.3% Sectoral Share in Total Employment: Community, social & personal services 27.6%; trade, restaurants, transport & finance 25%; manufacturing and construction 24.7%; primary &mining 22.8%. Unionisation52: Progress was made in 2011 with a view to strengthening trade-union rights in respect of job protection. The country has about 20 independent trade unions, but the government still regards the General Union of Algerian Workers (UGTA) as the only representative organisation. In 2011, public- and private-sector workers undertook a number of strikes, prompting a government reaction 2. Overview: 53 Focus on Youth Unemployment The battle against unemployment has changed in nature, shifting from the development of economic activities to that of human resources and of a knowledge-based economy. Production cycles increasingly call for training that meets international standards. In the armoury of weapons in the battle against unemployment there are temporary jobs, early retirement, microcredit and microenterprises. Nonetheless, the supply of jobs is inadequate and the system functions badly. An inquiry into employment conducted among households found that 40.6% of jobs were filled by way of personal or family connections, 15.7% by competition or examination and 14.2% through contact with the employer. Only 9.1% of jobs were filled through the national employment agency [ANE) and 3.8 % through training establishments. In other words, only a third of jobs went through the labour market. The employment programmes launched in1988 were bolstered by an aid scheme to promote employability among young people (DAIP) established in 2008. This programme supports young people, places them and assists them in getting a job contract. It helped create 169 296 jobs in 2011. Additionally the national agency for the support of youth employment (ANSEI) concentrates on young entrepreneurs aged between 19 and 35 in the creation and expansion of production of goods and services. The national agency for microcredit management (ANGEM) is aimed at self-employed workers, home workers and people doing small-scale jobs in handicrafts, production of goods or provision of services. The unemployment insurance fund CNAC provides support to workers aged between 30 to 50 who have lost their jobs for economic reasons. The pre-employment contract scheme (CPE) targets people affected by poverty, unemployment and exclusion. It takes a number of forms including work on local initiatives (ESIL), labour-intensive community work (TUPHIMO) and a general-interest activity allowance (IAIG). All these measures have served to mitigate unemployment. The available data shows that 660 810 job seekers received help in their search for work in 2011. About 50 000 were given an assisted work contract (CTA), and another 50 000 jobs were created in the private sector. To obtain a work contract young job seekers have the possibility of signing up at public institutions in the various jobs schemes or with private agencies. Relationships between the 52 53 African Economic Outlook 2012, Algeria, http://www.africaneconomicoutlook.org/en/countries/north-africa/algeria/ Ibid. 12 universities, the grandes écoles (the top non-university higher-education institutions) and the world of work do exist but need to be strengthened. Some enterprises do not yet appreciate the contribution of innovation and economic intelligence to the development of production and in particular to productivity. For most young people who benefit from different types of pre-employment contract the question of their being given a regular contract remains open. The democratisation and widening of professional training and higher education are national priorities in the search for a better match with the labour market. In a context of such a high unemployment rate, young people accept jobs that do not reflect their qualifications and are sometimes underpaid. Yet as part of the incentives for recruitment, social contributions and employers' charges linked to employment of the young are taken over by the state. Young people display flexibility in terms of jobs and readiness to move. Employers, on the other hand, are reluctant to take on job seekers without experience. Given an environment where jobs and qualifications are changing in nature, the only way to reduce unemployment in the long term is to encourage expertise, updating of skills and retraining. Against this background, the government is seeking to diversify the economy and ensure that the education and research systems correspond more closely to the industrial and technological needs of the nation. VII. FINCANCIAL SECTOR54 The banking sysytem is made up of 26 banks, 6 of them public, among them a savings bank,Caisse nationale d’épargne et de prévoyance (CNEP). It also includes non-banking establishments such as insurance companies, and leasing and microfinance companies, and a limited stock exchange. The treasury's financial operations are conducted through the bond market for the purchase of the debts of public enterprises and the financing of public investment. The public banking sector remains dominant, with 89% of total assets, but the private banks are taking an increasingly prominent position in financing the economy (23.2% of credits in 2011, compared with 19.2% for the public banks). There is still a structural excess of liquidity in Algeria's banks. Since 2001, the commercial banks have no longer sought refinancing from the Bank of Algeria. In 2011 they strengthened their financial solidity with a solvability ratio of 23% at the end of December but they suffer from weak banking intermediation in attracting household savings and are having trouble transforming resources into investment. The proportion of non-performing loans declared by the banks fell from 19.05% to 16.63% between the end of 2010 and the end of 2010. Long-term capital resources are rare and stricter prudential regulations prevent the banks from financing major projects. Transactions on the stock exchange are limited. A small number of businesses account for activity on the exchange. The main players on the financial markets are the national financial institutions and the public banks. Algeria has embarked on a programme of modernising the banking and financial sector with a view to stimulating growth, and promoting and diversifying investment, developing SMEs and creating jobs. Monitoring of the measures taken by banks and financial institutions to combat moneylaundering and the financing of terrorism has been intensified. The currency and credit council, the Conseil de la monnaie et du crédit (CMC), put in place in 2011 a system of internal surveillance and limitation of counterparties of outstanding interbank loans and 54 African Economic Outlook 2012, Algeria, http://www.africaneconomicoutlook.org/en/countries/north-africa/algeria/ 13 borrowing, in particular on the money market. These new mechanisms have enhanced the stability and robustness of the banking system. VIII. GENDER EQUALITY55: Several legal instruments, among them the codes governing the family and nationality as well as the penal code and the law relating to prison organisation, were amended in 2011 to take into account the interests of women and their protection. The gender equality index is 0.93. Nationwide there are more girls at all educational levels combined than boys, with girls accounting for 50.6% of those being educated. The literacy rate among those aged 15 and above is put at around 75% (80% of males, 60% of females). When it comes to getting a job, women are in a much less favourable position, since the unemployment rate among women with university degrees is 33.3% while that of male graduates is 10.5%. The rate of economic activity among women is 14.2%. Women have only a limited role in making political and economic decisions. There is a specific ministry devoted to gender issues, but there are only three women ministers out of a total of 39 and 30 women among the 389 members of the 2007-12 legislature. This state of affairs will change in the light of a law enacted in 2011, which imposes a quota of at least 30% of women in elected bodies. The law follows the constitutional revision of 15 November 2008 which introduced substantial changes to the political rights of women and provides for their better representation in elected bodies. Article 31 (2) of the constitution stipulates that all citizens have equal rights and duties. IX. REINTEGRATION AND RECONSTRUCTION ASSISTANCE 1. Reintegration efforts UNHCR began its humanitarian activities in North Africa in the late 1950s with the care and maintenance and further the repatriation of the Algerian refugees from the neighbouring countries. Ten years later a UNHCR Branch Office was established in Algiers and a SubOffice in Tindouf was created in 1996.56 Algerian nationals may return voluntarily to any region of Algeria at any time by way of the Voluntary Assisted Return and Reintegration Programme run by the International Organization for Migration (IOM) and co-funded by the European Refugee Fund. IOM will provide advice and help with obtaining travel documents and booking flights. The programme was established in 2001, and is open to those awaiting an asylum decision or the outcome of an appeal, as well as failed asylum seekers.57 X. TRAFFICKING IN PERSONS58 US TiP Report Ranking: Tier 3 (lowest rank) Algeria is a transit and, to a lesser extent, a destination and source country for women and, to a lesser extent, men, subjected to forced labour and sex trafficking. Most commonly, subSaharan African men and women enter Algeria voluntarily but illegally, often with the 55 Ibid. UNHCR, Country Operations Plan (2006) 57 Home Office: Immigration and Nationality Directorate, Operational Guidance Note: Algeria) 56 58 US Trafficking in Persons Report, June 2012 14 assistance of smugglers, for the purpose of travelling to Europe. Some of these women are forced into prostitution. Criminal networks which sometimes extend to sub-Saharan Africa and to Europe are involved in both smuggling and human trafficking. The “chairmen,” or leaders, of the “African villages” – small non-Algerian ethnic enclaves located in and around the southern city of Tamanrasset – are among those responsible for forcing women into prostitution. To a lesser extent, some sub-Saharan African men, mostly from Mali, are forced domestic workers; homeowners sometimes confiscate identification documents, indicative of forced labour. Some Algerian women are also forced into prostitution. Civil society groups believe that as Europe tightens its borders, Algeria is increasingly becoming a destination for both undocumented migration and trafficking. The “cost” – in terms of fees – of a migrant’s trip to and through Algeria have increased due to a greater crackdown against undocumented migration. Malians continue to flee insecurity in Mali and flood into southern Algeria; some of these migrants could be vulnerable to forced labour or forced prostitution. The Government of Algeria does not fully comply with the minimum standards for the elimination of trafficking and is not making significant efforts to do so. During the reporting period, the government sought prosecutions under its 2009 anti-trafficking law, yet continued to conflate human trafficking and smuggling. It failed to identify and protect trafficking victims and continued to lack adequate measures to protect victims. The government engaged in some awareness efforts to educate the public about human trafficking and workplace exploitation. XI. INTERNATIONAL ORGANISATIONS AND NGOs • UNHCR Liaison Office in Algeria: [email protected] • Algerian Mission to the UN: http://www.algeria-un.org/ • Algerian Red Crescent: Address:15 bis, Boulevard Mohammed V 16000 Alger Tel: (213) (21) 63 31 55 / 63 39 62 / 63 39 86 / 63 39 56 Fax: (213) (21) 63 43 14/63 36 90 E-Mail: [email protected] Web: http://www.cra-dz.org • International Monetary Fund: http://www.imf.org/external/country/DZA/index.htm • Bank of Algeria: http://www.bank-of-algeria.dz/ 15
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