Algeria
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General Information
Capital:
Algiers 1,483,000 (1987 est.) Area: 2,381,741 sq km (919,595 sq mi) Form of government Multiparty Republic with two legislative bodies GDP per capita Purchasing power parity - $4,700 (1999 est.) Population 31,193,917 (July 2000 est.) Ethnic composition Arab - 80% Berber - 19% European (e.g. French, Jewish) - 1% Official Language(s) Arabic (Modern Standard Arabic) Other facts Largest country in Africa |
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Natural Resources
Petroleum and natural gas are the two most important natural resources to Algeria for their economy. They are the leading natural gas producer in Africa and in the top three for petroleum production. These two resources account for most of their exports and brings in the majority of the revenue for the country. Furthermore, nearly two thirds of Algeria has yet to be explored for crude oil and natural gases. (EIA, 2013) Other natural resources in Algeria include iron ore, phosphates, uranium, and lead. The main mining centers in Algeria are at Quenza and Djebel Onk. Much of the iron ore come from these mining areas. Non-iron ore deposits are much more scattered and smaller throughout the region. There has been scoping in the Ahaggar Maountains where traces of many minerals have been found such as tin, nickel, cobalt, and uranium. More analysis of the oil and natural gas can be found here Oil
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Natural Gas
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War/Strife
Algeria has had an history of struggling to gain independence which in turn negatively impacted their own economic development.
Algerian War for Independence One of the most notable wars in the entire Northern region of Africa was the Battle of Algiers which was a fight for independence against the French. This war occurred from 1954 to 1962 and was between the French and a revolutionary Algerian group known as the FLN (National Liberation Front). The war was extremely brutal and bloody with the use of terrorism from both sides. The country was in a very crippled stage after the war was over. The road to build up their economies was extremely difficult. The government had to completely rebuild businesses and restructure bank accounts, lands, and jobs for the people. Also many Algerians were homeless and suffering from illness due to the effects from the war. Over 70% were unemployed at this point. |
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Agriculture
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Neglected Sector
Agriculture is a weak point of Algeria due to lack of investment, poor government management, and unsuitable land for growth. Most of Algeria's economy is heavily focused on natural resources such oil and gas. Agriculture production contributes to less than 1/10 of the GDP yearly. (EIA, 2013) Before independence, the country was a a food-exporting nation. Climate and agriculture Most of the fertile land in Algeria is found near the coastal plains and valleys notably in areas around Bejaia and Annaba (east), Mitidja Plain (south), and in the Medea and Mascara plateaus. Despite being one of the largest countries in Africa, most of the land is not ideal for agriculture since a vast majority of Algeria is covered by the Sahara desert. Only 3% percent of their land is suitable for commercial farming. Preciptitation also has an irregular pattern which makes agriculture tricky to manage. Some areas of Algeria may not have rain for around 20 years. Precipitation is more frequent is coastal areas in the North which makes it much more suitable for farming. Irrigation systems and dam constructions have helped in supplying water, but water resources are still too low to meet the demands. Most of the land that is viable for agriculture is typically for pasture, but stock raising is not very prominent due to the climate once again. The rest of these fields is then used for vineyards and orchards. The main crops grown in these fields are wheat, barley, oats, and dates. |
Economic Development
Much of the economic development in Algeria did not start until after the country gained independence from French. Before 1962 when the fight for freedom ended, their economy was based primarily in agriculture and aided the French economy. The French took advantage of their control and reaped the benefits. As mentioned in the agriculture section, Algeria was a food-exporting nation before independence. French settlers in Algeria established numerous vineyards, orchards, and gardens in the fertile regions.
Since independence, however, Algeria's main source of revenue shifted towards its petroleum and gas reserves. Algeria has some of the largest oil and natural gas deposits in the world. With such rich amounts of natural resources, Algeria showed to flourish in this sector as a country being the 6th largest gas exporter in the world and 16th largest oil exporter in the world. The Algerian government started out as a centrally focused economy by nationalized many of its major industries and developed long term economic plans. However, in the 1980s, the movement shifted towards privatization with many sectors becoming jointly owned by private foreign companies. Algeria has improved the standard way of life and is now a moderately developed country. However, due to lack of investment in agriculture since independence, the country's food production cannot sustain itself and relies on export from other countries. |
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References
- "Algeria." : Maps, History, Geography, Government, Culture, Facts, Guide & Travel/Holidays/Cities. N.p., n.d. Web. 16 Apr. 2015.
- "Algeria." Economy: Population, GDP, Inflation, Business, Trade, FDI, Corruption. N.p., n.d. Web. 16 Apr. 2015.
- "Algeria." OPEC :. N.p., n.d. Web. 16 Apr. 2015.
- "The Algerian War of Independence." Encyclopedia Britannica Online. Encyclopedia Britannica, n.d. Web. 16 Apr. 2015.
- "Climate & Agriculture." Our Africa. N.p., n.d. Web. 16 Apr. 2015.
- "Hospitals Often Ignore Policy on Using Qualified Medical Interpreters, Patient Safety Is Endangered." Modern Healthcare. N.p., n.d. Web. 14 Apr. 2015.
- "U.S. Energy Information Administration - EIA - Independent Statistics and Analysis." U.S. Energy Information Administration (EIA). N.p., n.d. Web. 22 Apr. 2015.
- "Algeria - NATURAL RESOURCES AND ENERGY." Algeria - NATURAL RESOURCES AND ENERGY. N.p., n.d. Web. 22 Apr. 2015.