Greater investment in development, more progress in gender issues
Favoured by high oil prices, the Government increased social investment, achieving such advances as a significant reduction of poverty. For their part, Algerian women are now revealing a greater presence in positions traditionally occupied by men.
With the Plan in Support of Economic Reactivation (PSRE) 2000-2004, the Government is preparing to grant about USD 55 billion to the Complementary Plan in Support of Economic Growth 2005-2009 (PCSCE). This is a considerable amount for a country like Algeria.
Social indicators should experience significant progress, given that this budget allots 25.5% for housing and environment, 15.8% for human development (2005 Finance Law) and 22.7% for infrastructure.
A goal achieved
According to estimates made by the General Commissioner for Planning and Prospects, the proportion of the population living on less than USD 1 per day decreased from 1.9% in 1998 to 0.8% in 2000. This means that the Millennium Development Goal of reducing by half the number of people living on less than USD 1 per day by 2015 has already been reached. The percentage of poverty increased from 3.6% in 1988 to 5.7% in 1995 and then decreased to 3.1% in 2000 and 1.6% in 2004. In absolute terms, the number of poor people of this category of the population decreased from 1.6 million in 1995 to 605,112 in 2003, a reduction of more than 62%.
Table 1. Incidence of poverty and food poverty (1988-2004)
|
1988
|
1995
|
2000
|
2004
|
|
| Incidence (%) beneath food poverty line |
3.6 |
5.7 |
3.1 |
1.6 |
| Incidence (%) beneath general poverty line |
8.1 |
14.1 |
12.1 |
6.8 |
Source: General Commissioner for Planning and Prospects
Child malnutrition
According to the National Economic and Social Council (CNES), malnutrition in children under five years, measured by weight deficiency, increased markedly, from 9.2% in 1992 to 10.4% in 2002. This regression is an alert in itself, revealing a situation that appears paradoxical in comparison with the other changes. The CNES is concerned about inflation, which is affecting the family basket, in particular the price of milk. The purchasing power of the national minimum wage decreased, and the percentage of that wage necessary to purchase one litre of milk increased from 0.16% in 1992 to 0.3% in 2002.
Oil benefits
From a global perspective, these results should be perceived in terms of a favourable economic situation due to the spectacular increase of the price of oil. Exceptionally high State income has permitted the implementation of the PSRE which, according to the CNES, culminated in the creation of 728,000 jobs, 63% of them permanent.[1]![endif]>![if> The same source indicates that job creation appears to have responded favourably to the concern over regional stability, since the index of jobs created per 1,000 inhabitants has been favourable for southern regions, followed by the highlands. Although state subsidies for employment policies represent only 0.4% of the gross domestic product (GDP) – compared with figures ranging from 3% to 5.5% of GDP in countries of the Organization for Cooperation and Economic Development – funding for these programmes doubled between 1997 and 2002.[2]![endif]>![if>
Additionally, in January 2004 the minimum wage was raised by 25%, thus improving purchasing power. Added to this is a greater State intervention in gross family incomes. Transfers went from 16.2% in 1996 to 20.3% in 2000 and 23% in 2004. In June 2006, the State granted a budget of more than DZD 100 billion (USD 1.4 million) for the improvement of the insurance system for government employees. This will allow the public minimum wage to be raised by approximately 15%. This minimum wage increase is one of the points to be discussed in a tripartite meeting in September of this year.
Another achievement was a programme for the construction of one million homes under the PSRE, already implemented to a great extent. The occupancy rate per dwelling decreased from 7 people to 5.5 between 1999 and 2004. It should reach 5 in 2009, after the construction of another million homes projected by the PCSE.
The progress of women
The strong presence of women in schools and universities is a strong and objective signal of a restructuring of the gender system in the mid term. The education of girls is now an established tendency in Algeria. Inequalities between the sexes no longer exist in the secondary school system. The numbers of 6- to 15-year-old girls who attend school has evolved positively and more quickly than that of boys. As a result, discrimination has decreased against girls in this age range, 91.87 of whom were educated per 100 boys in 2002, compared with only 81 in 1990-1991 and 87.8 in 1999-2000. In 2006, the rate of women who received a secondary school diploma was 62%, while the overall rate was 52%.
The most significant growth is that of women in the labour force. According to the General Census of Population and Housing, the rate of female activity in the labour force increased from 1.8% in 1966 to 9.6% in 1998. The World Bank estimated the rate of female labour for 2001 at 27%[3]![endif]>

