Algeria Algeria Background After a century of rule by France, Algeria became independent in 1962. The surprising first round success of the fundamentalist FIS (Islamic Salvation Front) party in the December 1991 balloting caused the army to intervene, crack down on the FIS, and postpone the subsequent elections. The fundamentalist response has resulted in a continuous low-grade civil conflict with the secular state apparatus, which nonetheless has allowed elections featuring pro-government and moderate religious-based parties. The FIS's armed wing, the Islamic Salvation Army, disbanded in January 2000 and many armed militants of other groups surrendered under an amnesty program designed to promote national reconciliation. Nevertheless, small numbers of armed militants persist in confronting government forces and carrying out isolated attacks on villages and other types of terrorist attacks. Other concerns include Berber unrest, large-scale unemployment, a shortage of housing, and the need to diversify the petroleum-based economy. Algeria Economy The hydrocarbons sector is the backbone of the economy, accounting for roughly 60% of budget revenues, 30% of GDP, and over 95% of export earnings. Algeria has the fifth-largest reserves of natural gas in the world and is the second-largest gas exporter; it ranks 14th in oil reserves. Algeria's financial and economic indicators improved during the mid-1990s, in part because of policy reforms supported by the IMF and debt rescheduling from the Paris Club. Algeria's finances in 2000-03 benefited from substantial trade surpluses, record foreign exchange reserves, and reductions in foreign debt. Real GDP has risen due to higher oil output and increased government spending. The government's continued efforts to diversify the economy by attracting foreign and domestic investment outside the energy sector, however, has had little success in reducing high unemployment and improving living standards. Algeria Location Northern Africa, bordering the Mediterranean Sea, between Morocco and Tunisia Algeria Flag two equal vertical bands of green (hoist side) and white; a red, five-pointed star within a red crescent centered over the two-color boundary; the crescent, star, and color green are traditional symbols of Islam (the state religion)
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