Iran elections bearing on renewed business enthusiasts

Iran elections bearing on renewed business enthusiasts

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According to Fresh Business Thinking. an online resource for business owners, directors and entrepreneurs  May 17th will see the next Iranian presidential election – and the result really matters to us in the west more than that of the recent one in France, etc.  In this context of Iran elections bearing on renewed business enthusiasts, we would like to propose this article of Chatham House, the Royal Institute of International Affairs who Emailed me this note on what’s going on in Iran’s presidential elections. It does elaborate fairly well on what matters most not only for the country’s citizens but also for everyone around.

This time next week we will know – we know whether the President of Iran is the reformist current president Hassan Rouhani, or someone else, most likely Ebrahim Raisi, a former judge who sat on what was called ‘death commissions.’ There is a third serious contender, the debonair Mohammad Baqer Qalibaf.

Will ‘Resistance’ Carry the Day in Iran’s Election?

Sanam Vakil , Associate Fellow, Middle East and North Africa Programme

In the run up to Iran’s presidential election on 19 May, the idea of ‘resistance’ has become a key theme. Supreme Leader Ali Khamenei set the tone in his annual Persian New Year address in March by declaring the coming year the ‘Year of the Resistance Economy’, a term that has been reiterated by conservative candidates who also speak of ‘the axis of resistance’ and ‘Islamic resistance’. But exactly what is Iran supposed to be resisting?

Resistance is not a new concept in the Islamic Republic. Indeed, since the 1979 revolution, conservative politicians have continued to invoke the concept of ‘resistance’ to exploit popular fears of Western meddling in Iranian affairs. The narrative of resistance has also stoked the spirit of Iranian nationalism and independence inspired by the words of revolutionary leader Ayatollah Khomeini’s call for Iran to be dependent on ‘neither East nor West’. The Supreme Leader and conservative politicians have long used the narrative of economic and political resistance as a means to preserve Iranian autonomy.

 

‘The Supreme Leader and conservative candidates are playing on old fears of international interference in an attempt to see off reform in the Islamic Republic.’

Enmity with the United States and by extension Israel is also tied to a national concept of resistance. Over the years, this national spirit has been used to justify Tehran’s unconventional foreign policy of supporting proxy groups as well as to provide support for its nuclear program. Resistance takes the form of political, revolutionary, social, cultural, economic and foreign resistance to change and interference from abroad all of which would result in the erosion of power. Ultimately, resistance is about protecting and preserving the Islamic Republic and its revolutionary ideals that have been gradually loosing sway and giving way to notions of reform from within.

In the upcoming election, this notion of reform is personified by the incumbent president centrist Hassan Rouhani. Rouhani’s main achievement in office has been the nuclear pact with the P5+1, which compromised on developing Iran’s nuclear program in exchange for relief from grueling economic sanctions, including an embargo on Iranian oil sales. But while investment has trickled in and economic growth has returned, albeit at a limited rate, Rouhani has struggled to translate growth into tangible popular economic gains. This has left him vulnerable to conservative attack…

 

France’s presidential elections impacting Algeria

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And the prospects of mutual cooperation . . .

The two countries  confronted to their specific challenges ought to have a common vision in order to contribute to a prosperous future as based on genuine co-development and not on obscuring the memory of a shared past for long lasting relationships. The recent France’s presidential elections impacting Algeria, are looked at here as positively as they could be in so many years.

The 187 odd years of very close relationship between the two countries will certainly be in the agendas of each as the renewed French leadership confronted to challenges from all around is settling down shortly for business anew.    

It is about preparing the future through mutual respect; a point that I always made during my various meetings with political and economic personalities, and maintained that Algeria should not be considered as a market only. It is in this context that a co-partnership between Algeria and France, far from prejudice and spirit of domination must be inscribed.

We must be aware that the new international relations are no more based on relationships between heads of State, but on custom networks and on decentralized organizations through the involvement of notably business and civil society cooperation, dialogue of cultures, tolerance and the symbiosis of the contributions of the East and the West.

Because it might be unproductive to be and remain locked in distant positions as the latest events should rather make us think of to how avoid antagonising each other beliefs be it religious.  After all Islam, Christianity or Judaism did contribute to the development of civilization.

Future relations between Algeria and France must also concern the Maghreb-Europe space and more generally the Mediterranean-Europe area. Our two countries can be dynamic agents, because southern Europe and the Maghreb cannot escape adaptation to the current global changes (the present crisis already causing upheaval in both socio-economic and geo-strategic) and more generally throughout the Mediterranean region.

Because it is necessary to go beyond narrow chauvinist nationalism insofar as real nationalism will be defined in the future as the ability to together expand the standard of living of our people by our contribution to the global value.

Today’s world is characterized by interdependence. This does not mean the end of the role of the State but a separation of politics and economics which cannot be the vagaries of the economic climate, the State dedicated to its natural role as regulator of macroeconomic and macro-social life.  I firmly believe and after analysis that the intensification of the cooperation between  Algeria and France not forgetting all other cooperation between Algeria and the USA, all emerging countries such as China, Japan, India, the Brazil, Turkey, South Korea and Russia etc…

And in a more comprehensive way between the Maghreb and Europe as based on a genuine co-development, partnership, the introduction of direct investment would upset the bureaucratic behaviour conservative annuitants and enrol them in a dynamic perspective that is beneficial to the peoples of the region thus helping to  turn the Mediterranean into a lake of peace and prosperity.  The Mediterranean can be that place of rational networking to communicate with distant cultures, encouraging the symbiosis of contributions of the East and the West.

This network should facilitate communication links, freedom insofar as the excesses of the collective voluntarism inhibit any spirit of creativity. It is that the Maghreb and Europe are two geographic areas with an opening on the Latinity millennial experience and the Arab world with natural links and overall culture and Anglo-Saxon influences…

It is essential that Europe developed all actions that can be implemented to achieve a desirable balance within this set. In fact the formation of weak regional economic areas is a step of structural adjustment within the globalized economy with for a goal to promote political democracy, – a humanized, competitive market economy – promotion of ideas through social and cultural debates so as to combat extremism and racism – the implementation of common business whilst never forgetting that these are driven by the logic of profit and not emotions.

Thus, it is necessary to pay special attention to the educational action because human thinking and creation should in the future be the beneficiary and the leading actor in the development process. That’s why I would advocate the creation of a Euro-Maghrebine University as a cultural center as well as a central Euro Mediterranean bank as a facilitator for all Exchange.

It is in this context that a realistic approach must be apprehended so as to the co-partnership between Algeria and France taking into account all potentialities.  At the global level, we are witnessing the evolution of a built-up passed based on a purely material vision, characterized by hierarchical rigid organizations, to a new mode of accumulation based on the mastery of knowledge, of new technologies and flexible organizations as networking around the world, with globally segmented supply chains of production where investment in comparative advantages takes place in sub-segments of these channels.

As rightly noted by Jean-Louis Guigou, President of IPEMED (Institute of Prospective Economic of the Mediterranean world, in Paris), it should be that, in the interest of both of the Algerians and of the French, and more generally of the Maghreb and the Europeans as well as all South-Mediterranean populations, the boundaries of the common market of the future, the borders of Schengen in the future, the borders of social protection in the future the borders of the environmental requirements of tomorrow, must be South of the Morocco, the Tunisia and Algeria, South and East of the Lebanon, Syria, of the Jordan and the Turkey, through a lasting peace in the Middle East, Arab and Jewish populations with a thousand-year history of peaceful coexistence.

Specifically, Algeria and France have economically other strengths and potential for the promotion of diverse activities and this experience can be an example of this global partnership becoming the privileged axis of the re-balancing of the South of Europe by amplification and the tightening of links and exchanges in different forms. Per the official foreign trade balance of Algeria in 2016, the countries of the European Union are still its main partners, with the respective proportions of 47.47% and 57.95% of exports and imports.  Italy is the main customer and France the main supplier.

Between France and Algeria, trade can be intensified in all areas, i.e.: agriculture, industry, services, tourism, education, not to mention cooperation in the military field, where Algeria can be an active player, as shown by its efforts to bring stability to the region.

Also, let’s not forget the diaspora with residents of Algerian origin in France that would exceed 4 million, including more than 2 million bi-nationals. This regardless of the numbers is an essential element of reconciliation between Algeria and France, because it holds significant intellectual, economic and financial potential. The promotion of the relations between Algeria and its emigrant community should be mobilized in various stages of intervention initiatives of all the parties concerned, namely the Government, diplomatic missions, universities, entrepreneurs and civil society.

Hence, any intensification of this cooperation won’t possible – whilst not forgetting the duty of memory – if Algeria and France have a realistic approach to the co-partnership for a win-win partnership away from any mercantilism and spirit of domination. The two countries must have a common vision of their future.

Algeria can overcome its current difficulties but the success of national and international industrial partnerships is not feasible without a total renovation of all central and local governance systems with a coherent vision based on both political, social, economic structural reforms including financial market, land and property market, labour and especially reform of the socio-educational system, at the dawn of the fourth technological revolution.

The objective for Algeria is to commit for structural reform, whilst assuming a broad internal mobilization of the social front, tolerating the different sensitivities, in the face of the many challenges in order to allow Algeria to emerge, in the medium and long term.  For this, the dominance of the bureaucratic approach must give way to economic operational approach, with positive social and economic impacts. Also, in the face of the new global changes, Algeria undergoing this transition towards a productive economy closely tied to its energy transition, needs an accumulation of technological and management expertise with assistance from its foreign partners.

In short, Algeria and France are key actors for the stability of the region, and that any destabilization of Algeria would have negative geo-strategic repercussions throughout the Mediterranean and African region, as I pointed out in my interview on December 28, 2016, the American Herald Tribune (3).

And of course, subject to Algeria furthering into the rule of law, democratization of society and that it’s reorienting its economic policy in order to achieve sustainable development. The current tensions between Algeria and France are only temporary, as per information gathered with friends of mine in France.

It is only in this context that cooperation must return for a win-win partnership far from all prejudice and in mutual respect.

 

Notes : See recent contributions and international interviews of Professor Abderrahmane Mebtoul

  1. -«Wahl in Algerien Der Graben ist tief – wer stimmt ab?» – www.tagesschau.de –ARD-  04/05/2017
  2. -« Après Glavany et Macron… « Dépassionner les relations entre l’Algérie et la France » quotidien financier  français la Tribune .Fr 19 février 2017 – (“After Glavany and Macron…» “Take the heat out the relationship between Algeria and France” by French financial daily la Tribune.fr  19 February 2017)
  3.  – American Herald Tribune 28/12/2016 «  Prof. Abderrahmane Mebtoul: Any Destabilization of Algeria would have Geo-strategic Repercussions on all the Mediterranean and African Space
  4.  -Interviews with the weekly Point Afrique (Paris-24/03/2016) and the Express (07/04/2016, Paris) on the prospects for co-operation Algeria-France.
  5.  -This theme was developed by Prof. Abderrahmane Mebtoul, on 7 April 2016 in Marseille at the Mediterranean Villa

 

 

MENA region from ‘the Gulf to the Atlantic’

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The World Economic Forum will be meeting in the MENA region this coming May. for as much as it can be mustered in a three day gathering hosted by Jordan at a Dead Sea resort location.
It will definitely be quite a change from the high climes of Davos as the different participants will be debating of the present conjecture from a lower than sea level altitude.
The debates on the MENA’s multi-faceted diversity of languages, ethnics and of course economies types will certainly be spanning from the lower oil & gas prices impacted earnings of the GCC countries to the so-called globalisation induced feelings of instability in the various hot spots of the Maghreb and/or Mashreq and all their ensuing traumatising effects on the rest of the region’s as well as the world.
For starters, would Iran and Turkey also be on the agenda, since these 2 countries do participate in the MENA countries life?
Meanwhile, the WEF’s website produced this article that is republished here with our thanks to the author Jenny Soffel, Website Editor and its publisher; our aim is none more than to help in this campaign of gathering as many people of good repute and knowledge as possible for the summit.

How to follow our meeting on the Middle East and North Africa 2017

The image above is of REUTERS / Muhammad Hamed

The World Economic Forum is holding a summit on the Middle East and North Africa 2017 at the Dead Sea, Jordan, on 19-21 May. The meeting will take place in the context of growing economic reform efforts that are being made in many countries of the region, as well as shifting investment and trade priorities. It will also aim to address continued geopolitical shifts and humanitarian challenges by supporting multi-stakeholder dialogue on the situation in Syria, Iraq and Libya, as well as the ongoing refugee crisis.

Here is our guide to how to follow #mena17 on our digital channels, as well as how to embed individual sessions on your website.

Join the conversation

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During the meeting on MENA 2017, we will be publishing articles by participants, from CEOs and industry leaders to members of our communities – Young Global LeadersSocial Entrepreneurs and Global Shapers – on our content platform, Agenda.

You are welcome to republish content on this feed: http://wef.ch/feed under the terms of Creative Commons Attribution-NonCommercial-NoDerivs 4.0 Unported License (“CCPL”). You can view a copy of this licence at https://creativecommons.org/licenses/by-nc-nd/4.0/legalcode.

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Follow our live blog of key sessions that will keep you up to date on all the key developments of our 2017 meeting on the Middle East and North Africa, at http://wef.ch/mena17.

 

UAE and India to enjoy stronger trade and cultural ties

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The United Arab Emirates (UAE) has a GDP of about $350 billion and a high GDP per capita, but it is a commodity-based economy, with hydrocarbons accounting for 40% of total exports and 38% of its GDP. In its drive towards diversifying its economy and reduce its dependence on oil revenues, the UAE programmed for tourism, financial and construction sectors to receive most of its investments. Meanwhile, manufacturing activity accounted for 42% of output growth, transport and communication for 23%, wholesale and retail trade for 16.5% and catering and hospitality for 15.5% whilst construction and agriculture contracted these last 2 years. All of these activities are manned by active populations which according to all governments agencies and local media are made of more than 85% of expatriate population with 71% mostly Indian. The UAE and India to enjoy stronger trade and cultural ties further have to come together in a range of agreements .

Arabian Business.com  came up on Monday, 13 March 2017 with this article by Hamad Buamim, thus providing an idea as it were from the inside to show where the UAE’s heart lies hence the subject of the proposed article on tying ever more closer relationships with India. Like all countries of the GCC, the UAE has some difficulty in accepting to apply some sort of minimal fair ‘Equal Opportunity’ treatment to all their residents, if only to sedenterise them better. It must however be said on this chapter, the UAE have prominently shown the way, by being at the forefront of the other members of the GCCs.

Why the UAE is forging closer ties with India

[ . . . ] The UAE and India have enjoyed strong trade and cultural ties that date back more than a century. This unique relationship has strengthened in recent decades amid an increase in bilateral trade and investment. Non-oil trade between India and Dubai has accounted for the largest volume of trade, amounting to $19bn in the first nine months of 2016, and solidifying India’s position as the emirate’s second-largest trading partner.

The Indian business community in the UAE has contributed significantly to bilateral relations and trade. In fact, 29 percent of all new companies that registered with Dubai Chamber last year were Indian, bringing the total number of Indian members to over 36,000. At the same time, India remains one of the top export markets for Dubai Chamber members, with exports and re-exports to the country growing steadily in recent years to reach $1.7bn by the end of 2016.

Yet, we see huge potential within India’s fast-growing economy that has yet to be explored. The two countries share many synergies, especially within the areas of agriculture, pharmaceuticals, manufacturing and metals.

The world’s fifth-largest economy has renewed its focus on foreign trade, while it has also outpaced China in exports of locally made retail and lifestyle products. At the same time, it has stepped up efforts to strengthen its economic cooperation with the UAE in the areas of agriculture, food security, energy, defence, technology and healthcare.

India has put forth a clear roadmap to fuel future economic growth that places a major emphasis on expanding its infrastructure and boosting foreign direct investment. The country is building several cluster cities and recently opened its first international finance services centre in Ahmedabad. New policies are also focussed on turning India into a manufacturing hub for pharmaceutical and medical products under the “Make In India” initiative.

There are also exciting new technologies that India is embracing, such as blockchain, which has now been successfully tested by the country’s central bank.   Smart city concepts are also gaining momentum and the adoption of innovative solutions stands to make the country a major hotspot for smart city developments.

As a country that has excelled in rapidly expanding its infrastructure and economy, I believe that the UAE can offer the right level of expertise and investment needed to meet growing demand within India and help turn the country’s ambitions into a reality. [ . . . ]

Chancellor Angela Merkel in Algiers on 20 and 21 February

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Cooperation between the 2 countries ? How ?

German Chancellor Angela Merkel, calling for closer cooperation with the countries of North Africa, intends to obviously achieve, on the occasion of her visit, more of the security situation in the region and by the same consolidate the economic relations between the 2 countries. Chancellor Angela Merkel in Algiers on 20 and 21 February follows on the Algerian Prime Minister’s visit on 12 January 2016 that in addition to the discussed security aspects, it had enrolled as part of the consolidation of economic cooperation between Algeria and Germany notably through the germano-algerian joint commission. This latter was set up in 2010, following the visit of the president of the Algerian Republic, to Berlin.

Germany’s socio-economic

German politics traditionally are normally dominated by two large movements, the CDU – CSU (the Christian democratic union of Ms Merkel and its Bavarian ally, the Christian Social Union) and the SPD (Social Democratic Party). German diplomacy strives to develop a balanced position in its dialogue with the Arab and Muslim world. Present in several States in the region, close political foundations of the major German parties play an important role in this effort of dialogue with all of the local political movements.

Currently, the migration crisis and the situation in the Middle East do concern jointly Turkey (first host country of refugees, with 2.5 million) and Germany, (first host of the European Union). Dialogue around this issue, for which Germany is quite involved, was to find an agreement between the European Union and Turkey, which aims to permanently reduce the number of people seeking asylum in Europe. Based on three central pillars (bilateral trade rooms, Germany Trade and Invest Agency, and economic counsellors of embassies), economic diplomacy conducted by Berlin translates into a strong attention paid to large emerging countries.

Largest economy in the European Union, Germany is a federal State consisting of 16 Länder account about 82 million inhabitants to 01 January 2016 with demographic projections of 72.2 million in 2030 explaining its immigration target with a + 1.4 million migratory balance policy (2015) where the Turks represent in 2015, 9.1 million or 11.1 percent of the total population.

This may put into question its economic dynamism and eventually expose it as a result its open economy to international uncertainties including the protectionist threat of the new American president, the British Exit from the EU and the current fragility of China. Its Gross Domestic Product in 2015 was € 3026.6 billion, with a Per Capita GDP of € 37,107 with an unemployment rate of 5.0% (2015) and 4.5% for 2016, with an annual average inflation rate to 0.1% for 2015.

Meanwhile Germany continues for several years its fiscal policy that is marked by the desire to reduce debt and public deficits, in accordance with objectives set by European treaties. Public debt amounted to € 2150 billion at the end of year 2015 (71.2% of GDP) and 69.2% (2016). The Bundestag has adopted on November 25, 2016 a Federal budget for 2017 and plan for its 2018-2020 program a budget that will be balanced on the whole of the period.

The 2017 federal budget spending is € 329.1 billion, representing an increase of € 12.1 billion compared to 2016.

Tax revenues are planned at € 301.03 billion. According to the multi-annual programming of the Bund, the federal budget should be balanced and should continue to be as such on the whole of the budgetary program of 2018 to 2020 period.

Industry, which represents a significant share of GDP remained almost stable for 20 years (25.7% in 2016 and 23.0% in 1994).  Agriculture represents 0.9%, industry 28.2% and services based on new technologies 72%.

German GDP grew by 4.1% in 2010, from 3.7% in 2011, 0.5% in 2012, 0.5% in 2013, 1.6% in 2014, 1.7% in 2015, and 1.9% in 2016. Highly internationalised companies, exports represent 39% of the GDP in 2015. World Trade Organisation ranked the country in 2015 as the third largest global exporter, behind China and the United States. The density of its fabric of medium and intermediate-sized companies (the “Mittelstand”) innovative and export

Literally champion of the world for exports, Germany has with a trade surplus in current accounts at $ 297 billion for 2016 before China’s $ 245 billion, according to a study by the IFO economic Institute, while in 2015, the balance of payments surplus of China totalled $ 293 billion and that of Germany was $ 257 billion and the United States run a deficit of $ 478 billion.

For 2015, its main customers were: United States (9.5%), France (8.6%), United Kingdom (7.5%), Netherlands (6.6%), China (5.9%), Italy and Austria (4.8%) and suppliers (2015): China (9.7%), Netherlands (9.3%), China (9.7%), Netherlands (9.3%), France (7.1%), United States (6.3%), Italy (5.3%)

 

What prospects for cooperation?

According to the Secretary of State at Germany’s Ministry of Economy and Energy and co-Chair of the economic joint commission, Germany and Algeria since its independence had good relations of friendship, and I quote him :

“We are aware of the political importance of Algeria in the Arab world and Africa. Algeria is a major and reliable political partner of Europe, for example in the areas of security, regional stability and our common fight against terrorism which are the subject of a close and trusting cooperation between our countries since many years. In addition, Algeria is one of the largest national economies in Africa. It is located at the interface of the Western world, of the Eastern world and the African world, and connects, because of its geographical location, the markets of Europe, Africa and the Arab world.”

Algeria at current prices Gross Domestic Product according to the World Bank was for 2015 at $ 214 billion, with as at January 1st, 2016 a population of 40.4 million inhabitants and an economy that directly and indirectly relies on hydrocarbon exports for 97 / 98% of its foreign exchange earnings.

The volume of bilateral trade between Algeria and Germany recorded in 2014 about € 5.1 billion and no significant change between 2015 and 2016. Germany imported from Algeria for an amount of € 2.5 billion (mainly oil) and exported at a cost of about € 2.6 billion to Algeria. According to Reuters News Agency and the information site “Deutsche Welle”, there was a signing of a major contract of armament between Algeria and Germany (to be confirmed) and exports in armament of Germany destined for Algeria would have reached during the period of January to September 2016 over € 4,029 billion.

In 2015, the bulk of the external trade of Algeria remained focused on its traditional partners such as China with $ 8.22 billion, France $ 5.42, Italy with $ 4.82, Spain with $ 3.93 and Germany $ 3.38 billion. In the first eleven months of 2016, Algerian Customs data show $ 42,78 billion for imports of goods, services not included.

Italy preserved its traditional first customer position of Algeria’s in the first eleven months in 2016, by absorbing $ 4.41 billion of exports, or 17.24% of Algerian overall exports during this period. It was followed by Spain, France and the United States, as well as by Canada that have imported for respective amounts of $ 3.24 billion (12.67%), $ 2.95 billion (11.53%), $ 2.79 billion (10.9%) and $ 1.25 billion (4.91%). Paradoxically Germany does not show in this section of the Algerian exports for these seem not exactly high enough to be classed within it.

In terms of imports, China remains at the top of the supplying countries of Algeria with $ 7.7 billion representing 18.01% of imports overall Algerian between January and November. France with $ 4.37 billion (10.22%), followed by Italy with $ 4.26 billion (9.96%), Spain with $ 3.29 billion (7.71%) and Germany with $ 2.7 billion (6.34%).

So what are these prospects for the Algero-German cooperation? 

Several areas of cooperation have been identified, but the main hurdle would be that most German operators appear not to be attracted by investments in Algeria, for at least as long as the regulatory framework is really not in their favour.  According to numerous statements of many German operators and government agencies, the Algerian rule 51/49 share ownership split, that is applied to foreign investments, with total disregard for either strategic or non-strategic sectors would be the main culprit for all potential German investors including SMIs/SMEs like from many other countries to stay away from Algeria.

However some 4400 family-run companies in Germany form the backbone of the German economy, not to mention an Algerian diaspora evaluated to approximate 30,000 in Germany, are rather “well integrated”. According to German data, about 220 German companies are located in Algeria and employ around 2000 people, operating in different sectors of activity such like energy, services, hydraulics, transport and construction technology and the development of renewable energy in which Germany has a great experience. Algeria import essentially mechanical, electric, steel, equipment vehicles and chemical products and fats from Germany.

Algerian exports are, conversely, made up mainly of hydrocarbons (oil and gas) and derivatives. Despite this minimal trading far below the potential, the ‘shared’ political of the two capitals and their economic and geostrategic interests, remain, despite the world economic and financial crisis, in support of the strengthening of all economic exchanges and bilateral cooperation in all sectors. The main objective is to strengthen the partnership, while studying the economic market of the two countries to seek opportunities of cooperation so as to increase trade and bilateral cooperation especially in the sector of energy (solar, wind, and solar) and technologies.

Algeria, prioritised for next years, despite the existence of several other options, resourcing of renewable energy whilst pursuing at the same time win/win partnership with Germany for an integration and advancement of technological and managerial know-how of Algerians, with the aim to concluding contracts of cooperation with Algerian companies in all sectors including those channels where Algeria has a global comparative advantage to use its international business networks.

 

In conclusion, Germans that generally have no historical precedent with Algeria, as of their well-reputed pragmatic attitudes and well-known frankness did recently approach the Algerian Government confirming that their readiness to intensify cooperation, was it not for those recent Government measures of Algeria.  These were qualified as being counterproductive, administrative in their outlook whereas what is required should focus as the economic reference of the currency exchange balance as well as the accumulation of organisational and technological knowledge. The Algerian economy predominantly bureaucratic and rentier economy that produces the informal sphere could do with a financial and socio-educational reform, in addition to the lifting of the land system.  And it is up to the Algerians to remove those obstacles for the good implementation of the business, assuming of deep structural reforms, good governance and a visibility and coherence of socio-economic policies of the Government.  It is under these reservations, that any Algero-German cooperation could be and intensify in the context of mutual respect.

ademmebtoul@gmail.com

Updated on February 22, 2017.

The planned visit to Algiers was put off at the request of the Algerians, the German government spokesman said.

“The Algerian government asked at short notice for it to be postponed, the federal chancellor complied with this wish.”