The New Industrial Strategy in a Context of Financial Contraction in Algeria

Chaib Baghdad; Rachedi Abdelkader

doi:doi:10.11648/j.ijebo.20210902.11

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The New Industrial Strategy in a Context of Financial Contraction in Algeria

Chaib Baghdad, Rachedi Abdelkader

Published in International Journal of Economic Behavior and Organization (Volume 9, Issue 2)

Received: 29 March 2021 Accepted: 12 May 2021 Published: 7 June 2021

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Abstract

Industrial development has gained a position of strength in the successive debates on the realization of economic development projects, accentuated by exceptional progress of new technologies, such as innovation, creativity and entrepreneurship, with a tremendous growth of more innovative companies in terms of production, service delivery or simply concentrated on resell. One can, of course, invoke innumerable theoretical and literary arguments about the contribution of the industrial sector in the economic growth, starting from the works and approaches of the classics and neo-classics, particularly the most contemporary ones, like Rosenstein-Rodan, Myrdal, Nurkse, Hirschman, and many others, as long as the debate focused on the means and instruments to benefit States, provided that it is well managed. Algeria has been well engaged in the implementation of an industrialization strategy, through some programs and projects of revival of the industrial apparatus, in particular the model, globally recognized,” industrializing industries” in order to find alternatives for import substitution and the establishment of an industrial platform capable of raising the level of economic development upwards, and above. Indeed, industrial policy has become hostage of energy and hydrocarbon policy, as long as all investments and efforts have been made and directed in the promotion of the extractive industries, since the oil markets have created opportunities an for financing economic projects, leaving behind other components of the industrial sector, especially manufacturing industries. Taking this into account and in another effort to break away from the grip of the oil sector, the Algerian State turned to a new industrial policy and strategy, which will be more interested in the promotion of manufacturing industries, but this becomes relatively complicated and delicate, in view of the deterioration of public revenues and the possibility of drying up of revenues, as a consequence of the fall in oil prices, leaving, thus, puzzled economic decision-makers on the appropriate means of financing and accompanying this step. We will try, through this paper, to examine the planned and tracked modalities for such a large project, given the economic and financial context, which calls for greater prudence and the rationalization of public expenditures and their targeting.

Published in	International Journal of Economic Behavior and Organization (Volume 9, Issue 2)
DOI	10.11648/j.ijebo.20210902.11
Page(s)	27-35
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2021. Published by Science Publishing Group

Keywords

Industrial Strategy, Energy, Algeria, Financing, State, Conjuncture, Development

References

[1]	A. ALBERT and MAXIME A. CRENER, "The New Industrialized Countries: Strategies for Industrial Development-the Case of South Korea and Brazil," International Studies, Vol 13, No. 2, 1982.
[2]	A. BOUZIDI, "Industrialization and industries in Algeria", in the Algeria of tomorrow: taking up the challenges to win the future ", electronic site.
[3]	A. MEBTOUL, "Evolution of the structures of the Algerian economy 1967/1980", Volume 1, Algiers, 1981.
[4]	A. BOUYAKOUB, quoted in "Where's Algeria heading?” By A. MAHIOU and J. R. HRNRY, IREMA, Karthala, 2001.
[5]	A. GHOUFI, "Growth Strategies and Industrial Policies: An Analysis of the Algerian Case", Journal of Economic and Managerial Research, No. 6, December 2009, University of Biskra (Algeria).
[6]	G. RAVEAUD, "Industrial policies to the rescue of globalization", Revue Alternatives Economiques ", No. 282, July 2009.
[7]	J. A. ROBINSON, "Industrial policy and development: Analysis in terms of political economy", Development Economics Review, No. 4, Volume 18, 2010, page 21.
[8]	H. DJOUFELKIT, "Annuity, development of the productive sector and growth in Algeria", Working Document, AFD N ° 64, June 2008.
[9]	O. BOUKHDOUNI, "The new industrial strategy in Algeria: Realities and perspectives", journal Economic and managerial researches, N ° 16, University of Biskra, 2014 (Algeria).
[10]	The magazine "Alternatives Economiques", Hors-série N ° 98, October 2013.
[11]	UNIDO report entitled "Report on Industrial Development: Supporting Employment Growth: The Role of the Manufacturing Sector and Structural Change", 2013.
[12]	UNDP report entitled: "Support to the implementation of the industrial strategy and the promotion of investments", Algiers, 2012.
[13]	The financial institution's report regarding the MOANAP of April 2016.
[14]	World Bank Report of June 2016 on the World Economic Outlook.
[15]	Various reports from the Ministry of Industry and Mines, Algiers.

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APA Style

Chaib Baghdad, Rachedi Abdelkader. (2021). The New Industrial Strategy in a Context of Financial Contraction in Algeria. International Journal of Economic Behavior and Organization, 9(2), 27-35. https://doi.org/10.11648/j.ijebo.20210902.11

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Chaib Baghdad; Rachedi Abdelkader. The New Industrial Strategy in a Context of Financial Contraction in Algeria. Int. J. Econ. Behav. Organ. 2021, 9(2), 27-35. doi: 10.11648/j.ijebo.20210902.11

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AMA Style

Chaib Baghdad, Rachedi Abdelkader. The New Industrial Strategy in a Context of Financial Contraction in Algeria. Int J Econ Behav Organ. 2021;9(2):27-35. doi: 10.11648/j.ijebo.20210902.11

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@article{10.11648/j.ijebo.20210902.11,
  author = {Chaib Baghdad and Rachedi Abdelkader},
  title = {The New Industrial Strategy in a Context of Financial Contraction in Algeria},
  journal = {International Journal of Economic Behavior and Organization},
  volume = {9},
  number = {2},
  pages = {27-35},
  doi = {10.11648/j.ijebo.20210902.11},
  url = {https://doi.org/10.11648/j.ijebo.20210902.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijebo.20210902.11},
  abstract = {Industrial development has gained a position of strength in the successive debates on the realization of economic development projects, accentuated by exceptional progress of new technologies, such as innovation, creativity and entrepreneurship, with a tremendous growth of more innovative companies in terms of production, service delivery or simply concentrated on resell. One can, of course, invoke innumerable theoretical and literary arguments about the contribution of the industrial sector in the economic growth, starting from the works and approaches of the classics and neo-classics, particularly the most contemporary ones, like Rosenstein-Rodan, Myrdal, Nurkse, Hirschman, and many others, as long as the debate focused on the means and instruments to benefit States, provided that it is well managed. Algeria has been well engaged in the implementation of an industrialization strategy, through some programs and projects of revival of the industrial apparatus, in particular the model, globally recognized,” industrializing industries” in order to find alternatives for import substitution and the establishment of an industrial platform capable of raising the level of economic development upwards, and above. Indeed, industrial policy has become hostage of energy and hydrocarbon policy, as long as all investments and efforts have been made and directed in the promotion of the extractive industries, since the oil markets have created opportunities an for financing economic projects, leaving behind other components of the industrial sector, especially manufacturing industries. Taking this into account and in another effort to break away from the grip of the oil sector, the Algerian State turned to a new industrial policy and strategy, which will be more interested in the promotion of manufacturing industries, but this becomes relatively complicated and delicate, in view of the deterioration of public revenues and the possibility of drying up of revenues, as a consequence of the fall in oil prices, leaving, thus, puzzled economic decision-makers on the appropriate means of financing and accompanying this step. We will try, through this paper, to examine the planned and tracked modalities for such a large project, given the economic and financial context, which calls for greater prudence and the rationalization of public expenditures and their targeting.},
 year = {2021}
}

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TY  - JOUR
T1  - The New Industrial Strategy in a Context of Financial Contraction in Algeria
AU  - Chaib Baghdad
AU  - Rachedi Abdelkader
Y1  - 2021/06/07
PY  - 2021
N1  - https://doi.org/10.11648/j.ijebo.20210902.11
DO  - 10.11648/j.ijebo.20210902.11
T2  - International Journal of Economic Behavior and Organization
JF  - International Journal of Economic Behavior and Organization
JO  - International Journal of Economic Behavior and Organization
SP  - 27
EP  - 35
PB  - Science Publishing Group
SN  - 2328-7616
UR  - https://doi.org/10.11648/j.ijebo.20210902.11
AB  - Industrial development has gained a position of strength in the successive debates on the realization of economic development projects, accentuated by exceptional progress of new technologies, such as innovation, creativity and entrepreneurship, with a tremendous growth of more innovative companies in terms of production, service delivery or simply concentrated on resell. One can, of course, invoke innumerable theoretical and literary arguments about the contribution of the industrial sector in the economic growth, starting from the works and approaches of the classics and neo-classics, particularly the most contemporary ones, like Rosenstein-Rodan, Myrdal, Nurkse, Hirschman, and many others, as long as the debate focused on the means and instruments to benefit States, provided that it is well managed. Algeria has been well engaged in the implementation of an industrialization strategy, through some programs and projects of revival of the industrial apparatus, in particular the model, globally recognized,” industrializing industries” in order to find alternatives for import substitution and the establishment of an industrial platform capable of raising the level of economic development upwards, and above. Indeed, industrial policy has become hostage of energy and hydrocarbon policy, as long as all investments and efforts have been made and directed in the promotion of the extractive industries, since the oil markets have created opportunities an for financing economic projects, leaving behind other components of the industrial sector, especially manufacturing industries. Taking this into account and in another effort to break away from the grip of the oil sector, the Algerian State turned to a new industrial policy and strategy, which will be more interested in the promotion of manufacturing industries, but this becomes relatively complicated and delicate, in view of the deterioration of public revenues and the possibility of drying up of revenues, as a consequence of the fall in oil prices, leaving, thus, puzzled economic decision-makers on the appropriate means of financing and accompanying this step. We will try, through this paper, to examine the planned and tracked modalities for such a large project, given the economic and financial context, which calls for greater prudence and the rationalization of public expenditures and their targeting.
VL  - 9
IS  - 2
ER  -

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Author Information

Chaib Baghdad

Faculty of Economics, Laboratory of Money and Financial Markets in the Maghreb, University of Tlemcen, Tlemcen, Algeria
Rachedi Abdelkader

Faculty of Economics, University of Saida, Saida, Algeria

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APA Style

Chaib Baghdad, Rachedi Abdelkader. (2021). The New Industrial Strategy in a Context of Financial Contraction in Algeria. International Journal of Economic Behavior and Organization, 9(2), 27-35. https://doi.org/10.11648/j.ijebo.20210902.11

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ACS Style

Chaib Baghdad; Rachedi Abdelkader. The New Industrial Strategy in a Context of Financial Contraction in Algeria. Int. J. Econ. Behav. Organ. 2021, 9(2), 27-35. doi: 10.11648/j.ijebo.20210902.11

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AMA Style

Chaib Baghdad, Rachedi Abdelkader. The New Industrial Strategy in a Context of Financial Contraction in Algeria. Int J Econ Behav Organ. 2021;9(2):27-35. doi: 10.11648/j.ijebo.20210902.11

Copy | Download

@article{10.11648/j.ijebo.20210902.11,
  author = {Chaib Baghdad and Rachedi Abdelkader},
  title = {The New Industrial Strategy in a Context of Financial Contraction in Algeria},
  journal = {International Journal of Economic Behavior and Organization},
  volume = {9},
  number = {2},
  pages = {27-35},
  doi = {10.11648/j.ijebo.20210902.11},
  url = {https://doi.org/10.11648/j.ijebo.20210902.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijebo.20210902.11},
  abstract = {Industrial development has gained a position of strength in the successive debates on the realization of economic development projects, accentuated by exceptional progress of new technologies, such as innovation, creativity and entrepreneurship, with a tremendous growth of more innovative companies in terms of production, service delivery or simply concentrated on resell. One can, of course, invoke innumerable theoretical and literary arguments about the contribution of the industrial sector in the economic growth, starting from the works and approaches of the classics and neo-classics, particularly the most contemporary ones, like Rosenstein-Rodan, Myrdal, Nurkse, Hirschman, and many others, as long as the debate focused on the means and instruments to benefit States, provided that it is well managed. Algeria has been well engaged in the implementation of an industrialization strategy, through some programs and projects of revival of the industrial apparatus, in particular the model, globally recognized,” industrializing industries” in order to find alternatives for import substitution and the establishment of an industrial platform capable of raising the level of economic development upwards, and above. Indeed, industrial policy has become hostage of energy and hydrocarbon policy, as long as all investments and efforts have been made and directed in the promotion of the extractive industries, since the oil markets have created opportunities an for financing economic projects, leaving behind other components of the industrial sector, especially manufacturing industries. Taking this into account and in another effort to break away from the grip of the oil sector, the Algerian State turned to a new industrial policy and strategy, which will be more interested in the promotion of manufacturing industries, but this becomes relatively complicated and delicate, in view of the deterioration of public revenues and the possibility of drying up of revenues, as a consequence of the fall in oil prices, leaving, thus, puzzled economic decision-makers on the appropriate means of financing and accompanying this step. We will try, through this paper, to examine the planned and tracked modalities for such a large project, given the economic and financial context, which calls for greater prudence and the rationalization of public expenditures and their targeting.},
 year = {2021}
}

Copy | Download

TY  - JOUR
T1  - The New Industrial Strategy in a Context of Financial Contraction in Algeria
AU  - Chaib Baghdad
AU  - Rachedi Abdelkader
Y1  - 2021/06/07
PY  - 2021
N1  - https://doi.org/10.11648/j.ijebo.20210902.11
DO  - 10.11648/j.ijebo.20210902.11
T2  - International Journal of Economic Behavior and Organization
JF  - International Journal of Economic Behavior and Organization
JO  - International Journal of Economic Behavior and Organization
SP  - 27
EP  - 35
PB  - Science Publishing Group
SN  - 2328-7616
UR  - https://doi.org/10.11648/j.ijebo.20210902.11
AB  - Industrial development has gained a position of strength in the successive debates on the realization of economic development projects, accentuated by exceptional progress of new technologies, such as innovation, creativity and entrepreneurship, with a tremendous growth of more innovative companies in terms of production, service delivery or simply concentrated on resell. One can, of course, invoke innumerable theoretical and literary arguments about the contribution of the industrial sector in the economic growth, starting from the works and approaches of the classics and neo-classics, particularly the most contemporary ones, like Rosenstein-Rodan, Myrdal, Nurkse, Hirschman, and many others, as long as the debate focused on the means and instruments to benefit States, provided that it is well managed. Algeria has been well engaged in the implementation of an industrialization strategy, through some programs and projects of revival of the industrial apparatus, in particular the model, globally recognized,” industrializing industries” in order to find alternatives for import substitution and the establishment of an industrial platform capable of raising the level of economic development upwards, and above. Indeed, industrial policy has become hostage of energy and hydrocarbon policy, as long as all investments and efforts have been made and directed in the promotion of the extractive industries, since the oil markets have created opportunities an for financing economic projects, leaving behind other components of the industrial sector, especially manufacturing industries. Taking this into account and in another effort to break away from the grip of the oil sector, the Algerian State turned to a new industrial policy and strategy, which will be more interested in the promotion of manufacturing industries, but this becomes relatively complicated and delicate, in view of the deterioration of public revenues and the possibility of drying up of revenues, as a consequence of the fall in oil prices, leaving, thus, puzzled economic decision-makers on the appropriate means of financing and accompanying this step. We will try, through this paper, to examine the planned and tracked modalities for such a large project, given the economic and financial context, which calls for greater prudence and the rationalization of public expenditures and their targeting.
VL  - 9
IS  - 2
ER  -

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