Algeria: Selected Issues
IMF Staff Country Reports, June 13, 2018
Source details
- Canonical URL
- Algeria: Selected Issues
Other formats
Bibliographic details
- Published: June 13, 2018
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484361764.002
Overview
- This Selected Issues paper discusses measures needed to improve public spending efficiency to foster more inclusive growth in Algeria.
- Fostering more inclusive growth in a sustainable way requires addressing Algeria’s longstanding structural issues that have led to persistently high unemployment, weak private sector job creation, and insufficient quality of public services.
- To help reverse this situation, particularly in an environment of dwindling financial resources, Algeria should improve the efficiency of public spending, including through strengthening public wage bill and investment management.
- Improving public spending efficiency would enable the country to increase the return on investment in human capital and infrastructure, and improve the quality and reach of public service delivery.
- Enhancing spending efficiency would help ensure that the public sector fosters private sector activity rather than competes with it.
Key findings and themes
- Structural challenges documented: persistently high unemployment; weak private sector job creation; insufficient quality of public services.
- Fiscal constraint emphasized: “dwindling financial resources” as a context for reforms.
- Areas of focus identified: public spending efficiency, public wage bill management, public investment management.
- Expected outcomes of reforms: higher return on investment in human capital and infrastructure; improved quality and reach of public service delivery; public sector that supports rather than competes with private sector activity.
Policy recommendations
- Improve the efficiency of public spending.
- Strengthen public wage bill management.
- Strengthen public investment management.
- Prioritize reforms that increase returns on investment in human capital and infrastructure.
- Reorient public sector activity to foster private sector development.
Content in this bundle
- Country Report