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Algeria's energy wealth will help weaken the Hirak

Tuesday, March 28, 2023

Significance

The COVID-19 pandemic and energy revenues in 2021-22 allowed Algerian authorities effectively to weaken the Hirak movement -- the large-scale popular protests that demanded the resignation of former President Abdelaziz Bouteflika and the removal of the army from politics.

Impacts

  • Foreign and domestic firms will continue to face an unfavourable business environment and red tape despite increased political stability.
  • Although labour unions are weakened, manufacturing operations may remain vulnerable to disruptions and strikes.
  • Government actions to promote non-oil exports will benefit agriculture, cement and steel industries.
  • State inability to deliver some social services could occasionally destabilise social peace.

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