Arab Journal of Administration المجلة العربية للإدارة


Since a few years Algerian economy recognized so many perturbations, the digression of oil prices has engendered a deep decrease of the state incomes, which lead to a great macroeconomic imbalance, the trade balance recorded a chronic deficit which make the balance of payments in a catastrophic situation, in fact the budget of the state become not equilibrated. This paper aims to highlighting the economic situation of Algeria, we will focalize our efforts on the explication of the main causes of the Algerian economic crisis, the principal hypothesis is that the Algerian government dedicate a large volume of subsidies to the society with no distribution strategy, and without targeting of the productive sector, which begets a structural deficit in the state budget. The problem becomes more complicated when we know that the huge mass of subsidies has generates many orbits of “the stake holders” –persons and institutions- which have beneficiated considerably of the noyau of subsidies, which make them the primary front of the resistance against any kind of reforms lanced by the Algerian government. We will try to give a deep diagnostic in order to make a precise suggestion to go out of the actual dilemma.