Algerian reassessment of companies: $ 180 billion according Lamiri   Leave a comment

Algeria – There are indeed problems of “credibility” of the economic reforms undertaken by the Algerian government. This is one sentence, yesterday, think-tank “Defending the business” of the daily Liberté, for Najy Benhassine, senior economist at the World Bank, who presented a paper on “Policies to promote private enterprise in developing countries South-East Asia and the lessons learned in Algeria. ”

For the economist of the World Bank, “there is a problem of economic performance. This is not necessarily a problem of lack of reforms, but rather the quality and credibility of these reforms. “Armed with comparative statistics like any economist, warned Mr. Benhassine said that Algeria, like other countries in the MENA region is in a category of countries whose index of business climate is less than 45.6%. Private investment in oil producing countries in the MENA region, including Algeria, stagnating over the last twenty years. Ditto for what is the index of non-hydrocarbon exports. In his view, Algeria exports only 124 products.

The economic model is lacking. Touching the subject of economic growth, Abdelhak Lamiri, economist and CEO of the inSIM, bluntly put a cat among the pigeons by launching this: “The state has invested $ 180 billion since the late 1980s in operations financial consolidation of public enterprises and non-recoverable loans. ”

This capital, according to him, could have been used to create over three million jobs and an industrial base capable of generating an annual turnover of 80 billion. Funds raised by the state for the benefit of these moribund enterprises have served, on balance, to preserve 200,000 jobs. Worse, the state injects 33% of GDP to create 3% growth, when the coffers are being increasingly challenged. Public spending is up 25%, while imports are expected to again surpass the $ 40 billion at the end of 2011.

The public sector has, however, only 5 to 6% of bank loans. Najy Benhassine has refocused the debate on the life of public enterprises in Algeria as in other countries in the MENA region, spread to twenty years, while the age of heads of company is close to 60 years. “There is a crisis of succession and renewal of the industrial fabric”, he said. But for Mr. Lamiri, political appointments at the expense of taking over responsibility in the public sector.

Growth below the African average If economists were content yesterday to challenge figures to support an economic model arid operators, they did not hesitate to pose the problem in both its economic aspects and politics. The President of the CFE (Forum of business leaders), Reda Hamiani, has seen the country achieve economic growth below the African average even in spite of the 500 billion injected in the last ten years. “Without the ferrous and non ferrous metals and petroleum products, we will be exporting oil out that Cevital and Michelin,” he laments its momentum. A political problem also arises.

“During the past 10 years, we could not, as an organization of employers, have tea with the President of the Republic.Consultation with the Prime Minister, they are not the type to be a good example of dialogue. ”

Thus, the boss of bosses decided to take the outright bull by the horns, so it is usually in favor of diplomatic discourse.

Followed suit, Issad Rebrab, CEO of Cevital, considered the best non-oil exporter in 2010, identified a glaring gap in economic vision in Algerian officials in charge of economic issues. In support of his speech, the head of Cevital fetched ingredients in a supporting field whose realities are much more stringent for operators.

“We are the only country to hold auction for a concession of land for an investment. In the largest country in Africa, considering that the land is a scarce resource. Today, in 2011, on a single order we impose on private companies that a public company take a 50% stake and a decline back, “laments Issad Rebrab.

It was confirmed in his opinions by the economist at the World Bank which lent credence to hard the notion that “there is a lack of desire for growth in Algeria.” “Neighbouring countries are years ahead of us. They do not have oil but they have good growth, “said Najy Benhassine, alluding to Morocco and Tunisia, an example that irritates many Algerian officials.

The Economist BA departed the field of investment that it is true that “Asian countries limit the participation of foreign capital in FDI, but Algeria is the only country to limit the participation in all economic sectors, “referring to the rule of 51/49% as decried by foreign investors. For the economist Abdelmadjid Bouzidi, “the problem of the Algerian economy is an issue of regulation.”

source: Elwatan (Ali Titouche)

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Posted July 10, 2011 by newworldconsulting in Uncategorized

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