Algeria: A Future Hijacked by Corruption

Abstract

In July 2007 Algeria will celebrate 45 years of independence. A one-party system was in place for more than 25 years, characterized by an undermining of liberty, an enormous petroleum windfall, and a dramatic rise in corruption. A democratic opening in 1989 was followed by a long period of Islamist terrorism and state violence, a civil war that left more than 200,000 dead. Petty corruption has spread throughout society and grand corruption has eaten away at state institutions. Poverty continues to ravage society. What is the solution for Algeria? How can it get out of this impasse? The first part of the article gives a brief history of corruption in Algeria since independence. The second part looks at the development and functioning of mafia systems. It is clear that in order to understand the emergence and expansion of corruption in Algeria, one has to take into account the role of hydrocarbons in the economy. The third section dwells at length on the ‘Khalifa affair’, a huge corruption scandal with international implications that Algeria has dealt with for the last five years. One of the trials in this scandal began in January 2007. The last part of the article examines Algeria in the light of international efforts to fight corruption.