Algeria has made significant gains in human development indicators over the past two decades, reducing poverty by 20% and rising in the UN's Human Development Index rankings. However, challenges remain, including an unemployment rate of 11% and poverty among 30% of the population. The document discusses strategies Algeria could adopt to transition its economy and build a more inclusive society, such as diversifying away from oil dependence, strengthening small and medium enterprises, reforming governance, improving education and health systems, and ensuring jobs are created to support widespread spending power.

1. © Rajendra Pratap Gupta
Algeria – Building an Inclusive Economy
&
The Future of Jobs
Keynote Address
Prof. Rajendra Pratap Gupta

2. © Rajendra Pratap Gupta
Algeria is one of a hand full of countries that have achieved 20% poverty reduction in the past two decades.
World Bank *
* http://www.worldbank.org/en/country/algeria/overview

3. © Rajendra Pratap Gupta
Algeria has made significant gains in each of the key Human Development Indicators (HDI). The country’s
position is now 83rd out of 188 countries, which ranks it among the highly developed cohort in the latest
Human Development Report.
World Bank *
* http://www.worldbank.org/en/country/algeria/overview

4. © Rajendra Pratap Gupta
The most important time is now to plan
the Transition & the Transformation

5. © Rajendra Pratap Gupta
Strengths
Its People
Young country with a
median age of 27.5
years
Potential for
diversification
Solid external
financial position
(low external
indebtedness &
foreign exchange
reserves)
Assets
Oil & Gas Reserves ,
Minerals, Heritage &
Coastline.
01
0203
04

6. © Rajendra Pratap Gupta
Oil & Natural
Gas is a
major
contributor to
Economy
Automation
& Newer
Technologies
Economic
Model
Bureaucracy
& Red tape
Population
dependent on
agriculture Vs GDP
Challenges

7. © Rajendra Pratap Gupta
• Growth rate going
down and inflation is
going up
• Unemployment rate 11
% (estimated)
• 11.8 % of population lives in slums.
• 75 % of the poor live in Urban areas.
• Poverty + Unemployment + Rural
Areas
• Unemployment
under 30 years age is
a challenge
Challenges

8. © Rajendra Pratap Gupta
Investors
Make in Algeria -
Availability of Capital –
Conducive environment
Empowered Consumers
Spending Power – Your
‘Ultimate Rating’ & Strength
Effective Governance
The key lies in
Implementation
Creating consumers is the KEY &
the GOAL for sustainable growth

9. © Rajendra Pratap Gupta
03
01
04
02 05
06Education & Skills
Development
Health care
Connectivity &
Logistics
Research &
Development
Micro- Small &
Medium Enterprise
Environment
Governance and Administration
The choice between ‘Investment Deficit’ & ‘Fiscal Deficit’ is a no brainer
Prof. Rajendra Pratap Gupta

10. © Rajendra Pratap Gupta
A Paradigm Shift is Needed

11. © Rajendra Pratap Gupta
Germany
Learn from Germany’s ‘Mittelstand’ –
SMEs* .
• All in all, more than 99
percent of German
companies are SMEs
• Provide more than 60 percent
of all jobs in Germany
• All kinds of sectors and
offering all kinds of products
and services.
https://swarajyamag.com/economy/make-in-bharat-is-the-
need-of-the-hour
‘ Accumulated Growth
Model’ to ‘Distributed
Growth Model’
Key considerations
• Number of households – Dependency
Ratio – Average Age – NRR
• Number of households (HH)– > 7
million
• Average size of HH – 5.9
• Innovation, Quality & Productivity
• Build entrepreneurship - ‘individual,
micro, small medium enterprises’ in
every sector
• Address the unreached – Rural areas
Growth alone will not suffice . The economic model built around ‘distributed’ wealth creation across the
population will lead to ‘distributed growth’ & that’s the key for sustainable growth & ‘Development’.
Prof. Rajendra Pratap Gupta
PEFA in 48 provinces
must study, analyze,
facilitate and guide
the establishment of a
sustainable Economic
Enterprise
PEFA can be a
wonderful example of
sustainable PPP.
PEFA – Provincial
Entrepreneurship &
Employment Facilitation
Agency

12. © Rajendra Pratap Gupta
Economy - Broad-base & Diversify to De-risk

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Assets available Investment areas for private Public Good
Oil & Natural Gas Solar Power & renewable sources of power Exploration (domestic PPPs)
Tourism Invest in hospitality Government should invest in connectivity /
safety / Training
Education Industry should partner in application based & I.P
oriented research
Public Schools & Higher Education
Health Pharmaceuticals, equipment and Medical supplies ,
Training and skills development
Medical education and delivery of care.
Clinical Research could be done in PPP
Logistics Distribution network Public infrastructure , ports , railways and air
connectivity
Retail Retail business is about wealth generation from
country’s consumption expenditure – Be cautious on
FDI
Tax & regulatory framework be trader
friendly
Defense AI – Robotics , Drones based & Cyber space. Youth /
entrepreneurs can be leaders in this space
Investing in R&D and technology transfer
Micro, Small &
Medium Enterprises
Across sectors Government must create a separate Ministry
to focus on this segment for economic value
addition and Job creation
Identify the Sectors for private – public sector participation

14. © Rajendra Pratap Gupta
Expertise
Start lateral entry of experts
Bureaucracy & Delays
Major developing economies are facing the
outdated bureaucratic system that does not
prefer transformational change
System Driven
Bureaucracy needs a major overhaul
System driven than people driven
Governance
Time to make senior government
appointments on 5 years renewable
performance based contracts
Performance
Individual performance be assessed in relation
to the provincial and national growth to break
the silos
Pro Consumer & Pro-
Business
Algeria is ranked 166 among 190 economies in
the ease of doing business- 2017
Regulatory
Reduce the number of approvals. Move all
processes online with self declaration
De-silo
Intra & Inter-departmental cooperation is the
key for implementation & to avoid duplication
Governance & Administration
https://www.outlookindia.com/website/story/kill-bureaucracy-to-keep-the-country-alive/297251

15. © Rajendra Pratap Gupta
G e t t i n g i n v e s t o r s a n d i n v e s t m e n t i s e a s y b u t f i n a n c i n g t h e m f o r
s u s t a i n a b i l i t y r e q u i r e s c o n s u m e r s w i t h s p e n d i n g p o w e r . ‘ G a i n f u l l y e m p l o y e d
l a b o u r f o r c e ’ i s t h e ‘ R E A L F I N A N C I E R ’ o f y o u r e c o n o m i c i n v e s t m e n t s
P r o f . R a j e n d r a P r a t a p G u p t a

16. © Rajendra Pratap Gupta
13%
31%
36%
31%
51% 58%
GDP (2017) LABOR
SERVICES
INDUSTRY
AGRICULTURE
ALGERIA – Labour force needs a major re-skilling program

17. © Rajendra Pratap Gupta Ref: MGI 2015
Education - A Challenge BUT a Big Opportunity

18. © Rajendra Pratap Gupta
Dependency Ratio : Education & Economy
The world is changing
faster that we thought
a decade ago
Education system is full
of artificial barriers and
is exam oriented
AI , ML , Automation will be a big threat to
the current ’Job Ecosystem’ but if our
education system is future proof, it can
turn out to be a big opportunity for jobs
and the economy .
N e e d t o s h i f t f r o m
‘ E d u c a t i o n ’ t o
‘ C o m p e t e n c e & ‘ l i f e -
l o n g l e a r n i n g ’ ,
‘ A p p l i c a t i o n b a s e d
l e a r n i n g ’ a n d ‘ S k i l l s
d e v e l o p m e n t ’ ; k e e p i n g
A I & A u t o m a t i o n i n
m i n d
E d u c a t i o n i s a n
o p p o r t u n i t y t o a d d r e s s
a l l m a j o r c h a l l e n g e s –
P r o f . R a j e n d r a P r a t a p G u p t a

19. © Rajendra Pratap Gupta
Median Age 27. 5 years – ‘Pre-emptive’ Healthcare Model
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02
03
04
05
Ignoring the health needs of the population will make
the healthcare system unsustainable for the economy
The world over, healthcare system is a supplier driven
system
Unless preventive care becomes demand driven ,
healthcare will remain supplier driven
Child health – Pre-emptive care model needs to be adopted
with a major focus on child health @ school level
Focus on health risk assessment & behavioral change
Ref: https://www.youtube.com/watch?v=iI6Kj6fds10

20. © Rajendra Pratap Gupta
Number of jobs created and the strength of the currency depicts the
strength of the economy
Prof. Rajendra Pratap Gupta

21. © Rajendra Pratap Gupta
In developed economies, it is tough
to roll back , undo and redo
systems; but in developing
economies, you can embed
‘SMARTNESS’ & ‘SUSTAINABILITY’
while laying the foundation
Prof. Rajendra Pratap Gupta

22. © Rajendra Pratap Gupta
Prof. Rajendra Pratap Gupta
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