Finance minister reveals Algeria’s new economic model

Cabinet ministers Wednesday listened to a detailed presentation made by finance minister Hadji Baba Ami about Algeria’s new economic model. It aims at liberating national economy from dependency on hydrocarbons and public expenses. It is also meant to establish a social support system which focuses on needy people rather than industrials and rich people, Echorouk has learnt.

The new model raised a debate among ministers as it stops public funding of projects and limit social support to certain categories only. 

According to the same sources, the government gave the go-ahead to the finance minister to set up a selective plan as part of social support. The government will pass through a transition phase while it will adapt public policies and set up new bases for governance.

According to the finance ministry’s plan, public expenses will remain the government’s development and growth pillar as part of a new financial policy. It aims at limiting the public expenses role and making it a tool for public investment, a factor for productive economic activities and a mechanism for reinforcing public policies.

The government will adopt a progressive endeavour to apply the policy of economic diversification and structural transformation in order to avoid any negative consequences or reactions.

The new economic model was approved by the latest tripartite meeting. It was motivated by the fact that economic and social development in Algeria has depended on hydrocarbons and public expenses. 

The new model will be based on an economic investment policy meant to valorise private investment, economic diversification and competitiveness.