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Geography, agriculture and economy

Geography

The People’s Democratic Republic of Algeria is located in North Africa and covers an area of 2.39 million km². It shares borders with Tunisia, Libya, Morocco, Niger, Mali and Mauritania, and its coastline on the Mediterranean Sea extends for more than 1,000 km. The coastal area is predominately hilly, with some mountains and natural harbours. Just south of the coast is the Tell Atlas, which holds the country’s most fertile land. Farther to the south are the Atlas mountain range and the Sahara Desert. The Ahaggar Mountains lie within the Sahara Desert. Algeria is divided into 48 wilayas (provinces). 

Agriculture

Since land reforms in 1987 Algeria’s agricultural sector has shifted towards a system based on small and medium-scale farmers. The private sector is the leader in production. Algeria is renowned for its fertile soil. Most of the country’s arable land is located in the northern region, the Tell. In the steppe region, pastoralism is the dominant activity. In the desert areas south of the Atlas mountain chain, agriculture is possible only within the oasis farming system.

Farmers typically cultivate date palm, legumes, vegetables and other crops in the southern oases. Grain grows in the Tell region. The country also produces and exports a wide range of vegetables and fruits, figs, dates, esparto grass and cork. Algeria is also home of Africa’s largest oak market. Livestock production accounts for 50 per cent of the agricultural production. Current threats to the natural resource base include soil erosion, deforestation, rangeland deterioration, dam siltation, soil salinization and sand encroachment.

Economy

Algeria’s economy prospered during the oil boom years before the mid 1980s, allowing the government to invest in education, health services and basic infrastructure. But after the 1986 drop in oil prices, economic and social conditions deteriorated rapidly. The country fell into a decade-long economic decline. To emerge from the recession the government implemented major structural changes with the help of the International Monetary Fund and debt rescheduling from the Paris Club. The country’s objective is to reduce its foreign debt by repaying in full its debt to the Paris Club (US$5 billion). Russia has erased Algeria’s Soviet-era debt.

Algeria is also attracting foreign and domestic investment in an effort to reduce the problem of a high unemployment rate while improving people’s standards of living. Algeria has been classified as a lower-middle income country, and it ranks 102 on the Human Development Index (2006). The gross domestic product (GDP) per capita in 2006 increased to US$3,443. The agricultural sector accounts for 8.5 per cent of GDP, services account for 30.1 per cent, and industry for 61.5 per cent (2005). The economy is recovering and growing stronger as a result of reduced foreign debt and high revenues from oil and gas exports as energy prices increase.

Source: IFAD