Economy

Shortly after gaining independence from France in 1962 Algeria established a socialist economy. Except for some light manufacturing industries, virtually all of Algeria's industries were nationalized. Since the late 1980's, however, the Algerian government has enacted measures to encourage the expansion of private enterprise.

Algeria suffers from many obstacles to sustained economic growth. Among them are inadequate health and educational facilities, rapid population growth, widespread unemployment, a lack of trained personnel to run technologically complex new industries, and low agricultural production.

Mineral Production

The mainstay of the economy is the production of petroleum and natural gas, which account for almost all of Algeria's export earnings. Petroleum is produced mainly in the eastern part of the country. Most of the natural gas comes from the Hassi R'mel region, about 250 miles (400 km) south of Algiers. Here lies one of the world's largest natural gas fields. Pipelines link the oil and natural gas fields of the interior to processing and distribution centers along the coast.

Only a few nonfuel minerals are produced in significant amounts. Among them are iron ore, phosphate rock, and mercury.

Manufacturing

The government has invested large sums in manufacturing industries and they have had considerable growth. Growth has been especially evident in the mineral-based industries, including petroleum refining, the liquefying of natural gas, and the making of petrochemicals, fertilizers, iron and steel, and cement. Other manufacturing includes truck and automobile assembly, food processing, and the making of a fairly wide variety of household and personal goods, including radios and television sets. Wine is produced in large amounts, mostly for export.

Agriculture

Although about a quarter of the workforce is employed in agriculture, production is not sufficient to feed the nation and many foods must be imported. Most of Algeria's farmland is privately owned. Much of this land is held in plots of 25 acres (10 hectacres) or less.

Only about 3 per cent of Algeria's land is suitable for cultivation, and most of that is along or near the coast. Virtually all of Algeria's chief crops are produced there; they include wheat, barley, wine grapes, citrus fruit, olives, potatoes, and tomatoes. Livestock consists chiefly of poultry, sheep, and goats. Dates are produced in Saharan oases.

Transportation

Algeria's roads and railways were built largely by the French and have been improved and expanded since independence. Facilities are best developed along the coast and in the Atlas Mountains. Roads have been built into the Sahara, and several north-south routes now cross it. Algiers, Oran, and Annaba are major general-cargo ocean ports; Algiers has the main international air terminal.

Currency

Algeria's basic currency unit is the Algerian dinar.