Updated March 18, 2019
Algeria: In Focus
A sudden surge of large, peaceful protests opposing
Figure 1. Algeria at a Glance
President Abdelaziz Bouteflika’s bid for a fifth five-year
term in office are bringing questions about Algeria’s
presidential succession and political future to the fore.
President Bouteflika (82) is in evident ill-health and has
rarely appeared in public since suffering a stroke in 2013.
On March 11, 2019, he announced in a written statement
that he was rescinding his candidacy and that elections
slated for April would be delayed indefinitely to allow a
“national conference” to draft a new constitution. Protests
have since grown as many demonstrators have interpreted
the announcement as unresponsive to their concerns and a
de facto unilateral extension of Bouteflika’s current term.
Algeria is a republic characterized by a strong presidency
and security apparatus, with a state-centric economy and

Source: CRS graphic; data from CIA World Factbook + IMF (2018).
social welfare programs underpinned by oil and gas

revenues. State decision-making authority is diffuse and
Terrorism and Counterterrorism
often opaque, and the country faces an uncertain transition
as the “revolutionary generation” that fought for
Internal security has improved markedly since the civil
conflict of the 1990s. Terrorist threats persist, particularly
independence from France in the mid-20th century
continues to age. Small strikes and protests arise frequently
in southern and eastern border regions, but the pace of
over socioeconomic issues. The State Department’s human
attacks has decreased since 2013, when 39 foreign nationals
rights report cites “
(including three Americans) were killed during an Islamist
official corruption” as a key issue.
militant assault on a natural gas compound. More recent
Politics
attacks have targeted security force outposts near the
President Bouteflika was first elected in 1999 with military
eastern border with Tunisia, where small cells linked to Al
backing, as Algeria’s decade-long counterinsurgency
Qaeda and the Islamic State (IS) reportedly remain active.
against armed Islamist groups was winding down. He has
Since the start of wars in Libya and Mali in 2011, Algerian
advanced reconciliation initiatives and sought to
security forces have bolstered their presence in border
consolidate executive powers under the presidency, in part
regions and conduct frequent counterterrorism operations.
by asserting greater control over the army and powerful
The government also runs de-radicalization programs and
military intelligence service. Bouteflika last won reelection
has sought to control the content of religious sermons.
in 2014 with 82% of the vote. Top opposition candidate Ali
Al Qaeda in the Islamic Maghreb (AQIM), a regional
Benflis, a former prime minister, decried the 2014 results as
network and U.S.-designated Foreign Terrorist
fraudulent; to some, the results reflected Bouteflika’s
Organization, is the offshoot of an insurgent faction from
enduring popularity. Experts nonetheless have pointed to
Algeria’s
“
1990s conflict. An AQIM splinter faction claimed
political paralysis” due to a lack of elite consensus over
“
responsibility for the aforementioned 2013 gas plant attack.
the general outline of the post-Bouteflika era.”
AQIM’s leader or emir, Abdel Malek Droukdel, reportedly
The bicameral parliament is institutionally weak and
remains based in Algeria’s mountainous northeast, but the
dominated by two parties supportive of Bouteflika: the
group’s center of gravity has moved south into Mali over
National Liberation Front (FLN), which led Algeria’s fight
the past decade. (Since 2017, AQIM’s southern branch has
for independence and was the sole legal party for decades,
been subsumed under a Mali-based jihadist coalition known
and the National Rally for Democracy (RND). The political
as the Group for Supporting Islam and Muslims, or JNIM
opposition is diverse and divided, comprising leftist,
after its transliterated Arabic name.) AQIM elements and
Islamist, Berber-led, and regionally focused groups. Many
offshoots are also active in Libya and Tunisia, as are IS-
parties—including the FLN—also exhibit internal divisions.
linked factions. In 2014, an Algerian IS affiliate beheaded a
Some analysts argue that political Islam has been
French tourist. Algerian security forces reportedly killed the
discredited in Algeria due to Islamists’ role in the 1990s
faction’s leader the following year and they appear to have
civil conflict, or—alternatively—due to some Islamist
been effective in preventing the further spread of IS-linked
politicians’ subsequent accommodation with the state. The
groups within the country.
Islamic Salvation Front (FIS), whose rapid electoral gains
Algerian “foreign fighters” were reportedly prominent
in 1991 sparked a military coup and the subsequent conflict,
within Islamist militant groups in the Balkans, Afghanistan,
remains banned. Religiously conservative Salafist social
and Iraq from the 1980s-2000s. At the height of IS-held
movements have grown in prominence since the conflict.
territory in Iraq and Syria (2014-2015), however, relatively
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Algeria: In Focus
few Algerians reportedly joined the group compared to
Algeria mediated Mali’s 2015 peace accord and backs the
those from neighboring Tunisia and Morocco. At one time,
U.N.-led political process in Libya; generally, Algerian
26 Algerians were held at the U.S. base in Guantánamo;
diplomats advocate inclusive political talks to address civil
nearly all have been repatriated or sent to third countries.
conflicts. Given its large military, financial resources, and
The Economy and Energy Sector
aversion to Western direct intervention, Algeria has also
Algeria has the world’s 11th largest proven natural gas
periodically sought to coordinate a regional response to
reserves and 16th largest proven oil reserves, and is the 7th-
terrorism and other cross-border security threats. Yet the
country’s
largest natural gas exporter. It is also estimated to have the
complex and often distrustful relations with
world’s third-largest recoverable shale gas reserves. More
neighboring states have hindered cooperation, as has the
leadership’s current focus on domestic political questions.
than half of the formal economy is reportedly comprised of

state-owned enterprises, led by the national oil and gas
Algeria’s foreign policy has often conflicted with that of the
company Sonatrach. Most of Algeria’s natural gas exports
United States: e.g., Algeria has close ties to Russia,
go to Europe, either by pipeline or ship. As of 2017 (latest),
regularly criticizes Israel, opposed the 2011 NATO-led
Italy was the top destination for Algeria’s exports and
intervention in Libya, and maintains relations with the Asad
China was its top source of imports.
government in Syria. With regard to Western Sahara, the
High global energy prices prior to 2014 allowed Algeria to
United States has recognized neither Morocco’s claim of
sovereignty nor the Polisario’s self
accrue large foreign exchange reserves, which protected it
-proclaimed Sahrawi
from global economic swings, financed its large military,
Arab Democratic Republic (SADR), which Algeria
and funded social programs that arguably assuaged
recognizes as an independent state. The United States has
domestic dissent. Amid a drop in global energy prices since
backed U.N.-led talks on the territory’s final status.
then, Algeria’s foreign exchange reserves have declined by
U.S. Relations
more than half, according to the International Monetary
Like its predecessors, the Trump Administration has
Fund (IMF), while the country’s “oil stabilization fund”
emphasized the value of U.S.-Algerian cooperation to
decreased from $20 billion to about $7 billion as of 2017.
counter terrorism (notably via information sharing and
The IMF has documented ongoing fiscal deficits and a
coordination in multilateral forums) and respond to crises in
gradual rise in unemployment. (Algeria does not borrow
neighboring Libya and Mali, while continuing to issue
from the IMF but submits to monitoring.) Economic
occasional criticism of Algeria’s human rights performance
frustrations have reportedly fueled illicit, often dangerous,
and challenging business environment. Algeria’s reliance
migration to Europe.
on Russia for most defense acquisitions remains a point of
Algerian leaders have called for diversification and more
friction, though Algeria has increased purchases of U.S.
foreign investment, but reforms that could encourage such
equipment in recent years. U.S. foreign direct investment
outcomes have not advanced. Algerian law requires 51%
(FDI) stocks totaled $3 billion as of 2017 (latest),
local ownership of foreign investment projects, there are
concentrated in the energy sector.
limits on capital flows and currency exchange, and the
During a visit to Algiers in 2018, Deputy Secretary of State
process of setting up a business is “heavily bureaucratic,”
John Sullivan emphasized the United States’ “commitment
according to the U.S. State Department. The government
to strengthening and broadening U.S.-Algerian relations.”
imposed sweeping import restrictions in 2017 in an effort to
In early 2019, Algeria’s then-Foreign Minister, Abdelkader
promote increased local production, causing trade to
Messahel, visited Washington DC for a high-level U.S.-
plummet and possibly fueling inflation and smuggling.
Algeria Strategic Dialogue, which had last convened in
Weak infrastructure linkages with neighboring countries
2015. Officials also meet regularly for bilateral
and the closure of the border with Morocco since 1994 also
counterterrorism and joint military dialogues.
inhibit growth. Critics further point to the absence of a
U.S. bilateral aid comprised $1.3 million for International
modern financial market and an underdeveloped stock
Military Education and Training (IMET) and $0.8 million
exchange and banking system. Algeria has applied to join
for Nonproliferation, Antiterrorism, Demining, and Related
the World Trade Organization (WTO) but has yet to
Programs (NADR) in FY2018 (latest). The Administration
qualify.
has requested $1.3 million in IMET and $0.7 million in
Foreign Policy and Regional Issues
NADR for FY2020. Additional regionally or centrally
Algeria’s foreign policy emphasizes state sovereignty and
managed funds periodically have been provided to promote
non-interference; residual skepticism of Western powers
economic growth, strengthen civil society, and counter
and NATO is a legacy of the country’s armed struggle for
violent extremism. U.S. exchange programs seek to build
independence from France (1954-1962). Although Algeria
relations with young Algerians and other emergent actors.
has by far the largest defense budget in Africa, longstanding
Algeria is among 12 countries participating in the State
policy prohibits troop deployments beyond its borders.
Department-led Trans-Sahara Counter-Terrorism
Relations with neighboring Morocco remain tense due to a
Partnership (TSCTP), but has not been a major recipient of
rivalry for regional influence and opposing views regarding
aid under the program and appears to prefer bilateral
the disputed territory of Western Sahara. Morocco claims
activities. In contrast to Tunisia and Egypt, Congress has
Western Sahara and de facto administers most of it. Algeria
not granted specific authority to the Department of Defense
hosts and backs the Polisario Front, which seeks
to aid Algeria in securing its border with Libya.
independence for the territory. Algeria participated in U.N.-
convened talks on Western Sahara in late 2018, but does
Alexis Arieff, Specialist in African Affairs
not consider itself a party to the dispute.
IF11116
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Algeria: In Focus


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https://crsreports.congress.gov | IF11116 · VERSION 3 · UPDATED

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