Since the 5th century B.C., the indigenous tribes of northern Africa (identified by the Romans as \"Berbers\") have been pushed back from the coast by successive waves of Phoenician, Roman, Vandal, Byzantine, Arab, Turkish, and, finally, French invaders. The greatest cultural impact came from the Arab invasions of the 8th and 11th centuries A.D., which brought Islam and the Arabic language. The effects of the most recent (French) occupation-French language and European-inspired socialism-are still pervasive. 

North African boundaries have shifted during various stages of the conquests. Algeria\'s modern borders were created by the French, whose colonization began in 1830. To benefit French colonists, most of whom were farmers and businessmen, northern Algeria was eventually organized into overseas departments of France, with representatives in the French National Assembly. France controlled the entire country, but the traditional Muslim population in the rural areas remained separated from the modern economic infrastructure of the European community. 

Indigenous Algerians began their revolt on November 1, 1954; to gain rights denied them under French rule. The revolution, launched by a small group of nationalists who called themselves the National Liberation Front (FLN), was a guerrilla war in which both sides targeted civilians and otherwise used brutal tactics. Eventually, protracted negotiations led to a cease-fire signed by France and the FLN on March 18, 1962, at Evian, France. The Evian accords also provided for continuing economic, financial, technical, and cultural relations, along with interim administrative arrangements until a referendum on self-determination could be held. Over 1 million French citizens living in Algeria at the time, called the \"pieds-noirs\", left Algeria for France. 

The referendum was held in Algeria on July 1, 1962, and France declared Algeria independent on July 3. On September 8, 1963, a constitution was adopted by referendum, and later that month, Ahmed Ben Bella was formally elected President. On June 19, 1965, President Ben Bella was replaced in a bloodless coup by a Council of the Revolution headed by Minister of Defense Col. Houari Boumediene. Ben Bella was first imprisoned and then exiled. Boumediene, as President of the Council of the Revolution, led the country as head of state until he was formally elected on December 10, 1976. Boumediene is credited with building \"modern Algeria.\" He died on December 27, 1978. 

Following nomination by an FLN Party Congress, Col. Chadli Bendjedid was elected President in 1979 and re-elected in 1984 and 1988. A new constitution was adopted in 1989 that allowed the formation of political associations other than the FLN. It also removed the armed forces, which had run the government since the days of Boumediene, from a designated role in the operation of the government. Among the scores of parties that sprang up under the new constitution, the militant Islamic Salvation Front (FIS) was the most successful, winning more than 50% of all votes cast in municipal elections in June 1990 as well as in the first stage of national legislative elections held in December 1991. 

Faced with the real possibility of a sweeping FIS victory, the National People\'s Assembly was dissolved by presidential decree on January 4, 1992, and on January 11, under pressure of the military leadership, President Chadli Bendje did resigned. On January 14, a five-member High Council of State was appointed by the High Council of Security to act as a collegiate presidency and immediately canceled the second round of elections. This action, coupled with political uncertainty and economic turmoil, led to a violent reaction on the part of the Islamists. A campaign of terror in the country, including assassinations, bombings, and massacres, commenced. On January 16, Mohamed Boudiaf, a hero of the Liberation War, returned after 28 years of exile to serve as Algeria\'s fourth President. Facing sporadic outbreaks of violence and terrorism, the security forces took control of the FIS offices in early February, and the High Council of State declared a state of emergency. In March, following a court decision, the FIS Party was formally dissolved, and a series of arrests and trials of FIS members occurred, resulting in more than 50,000 members being jailed. Algeria became caught in a cycle of violence, which became increasingly random and indiscriminate. On June 29, 1992, President Boudiaf was assassinated in Annaba by Army Lt. Lembarek Boumarafi, who allegedly confessed to carrying out the killing on behalf of the Islamists. 

Despite efforts to restore the political process, violence and terrorism characterized the Algeria landscape during the 1990s. In 1994, Liamine Zeroual, former Minister of Defense, was appointed head of state by the High Council of State for a 3-year term. During this period, the Armed Islamic Group (GIA) launched terrorist campaigns against government figures and institutions to protest the banning of the Islamist parties. A breakaway GIA group--the Salafist Group for Preaching and Combat (GSPC)--also undertook terrorist activity in the country. Government officials estimate that more than 100,000 Algerians died during this period. 

Zeroual called for presidential elections in 1995, though some parties objected to holding elections that excluded the FIS. Zeroual was elected President with 75% of the vote. By 1997, in an attempt to bring political stability to the nation, the Rassemblement National Democratique (RND) party was formed by a progressive group of FLN members. In September 1998, President Liamine Zeroual announced that he would step down in February 1999, 21 months before the end of his term, and that presidential elections would be held. 

Algerians went to the polls in April 1999, following a campaign in which seven candidates qualified for election. On the eve of the election, all candidates except Abdelaziz Bouteflika pulled out amid charges of widespread electoral fraud. Bouteflika, the candidate who appeared to enjoy the backing of the military, as well as FLN and RND party regulars, won with an official vote count of 70% of all votes cast. He was inaugurated on April 27, 1999 for a 5-year term. 

President Bouteflika\'s agenda focused initially on restoring security and stability to the country. Following his inauguration, he proposed an official amnesty for those who fought against the government during the 1990s unless they had engaged in \"blood crimes,\" such as rape or murder. This \"Civil Concord\" policy was widely approved in a nationwide referendum in September 2000. Government officials estimate that 85% of those who were fighting the regime during the 1990s had accepted the amnesty offer and had been reintegrated into Algerian society. Bouteflika also launched national commissions to study education and judicial reform, as well as restructuring of the state bureaucracy. His government had set ambitious targets for economic reform and attracting foreign investment. 

Three years into Bouteflika\'s mandate, the security situation in Algeria had improved markedly. However, terrorism had not been totally eliminated, and terrorist incidents still occurred, particularly in remote or isolated areas of the country. An estimated 30 Algerians were killed monthly, down from a high of 1,200 or more in the mid-1990s. In 2001, Berber activists in the Kabylie region of the country, reacting to the death of a youth in gendarme custody, unleashed a resistance campaign against what they saw as government repression. Strikes and demonstrations in the Kabylie region had become commonplace as a result, and some have spread to the capital. Chief among Berber demands was recognition of Tamazight (Berber) as a national language, restitution for death of Kabylies killed or wounded in demonstrations, and greater control over their own regional affairs. In October 2001, the Tamazight language was recognized as a national language. 

In November 2001, devastating floods hit Algiers, killing more than 800 people, mostly in the capital\'s Bab El-Oued area. The floods caused an estimated $350 million in damages. On May 21, 2003, a strong earthquake with a magnitude of 6.8 struck the country and caused catastrophic damage in five provinces in the north-central section of Algeria. The province of Boumerdes, including the coastal city of Boumerdes and the eastern district of the capital city of Algiers were most affected by the earthquake. Official figures put the number of casualties at 2,320 persons killed and 10,147 injured. Hundreds of thousands were left homeless. Prime Minister Ouyahia declared that the economic cost of the earthquake would reach U.S.$1.5 billion. 

Algeria’s most recent presidential election took place on April 8, 2004. For the first time since independence, the presidential race was democratically contested through to the end. Besides incumbent President Bouteflika, five other candidates competed in the election. Opposition candidates complained of some irregularities on polling day, particularly in the Kabylie, and of unfair media coverage during the campaign as Bouteflika, by virtue of his office, appeared on state-owned television daily. Bouteflika was re-elected in the first round of the election with 84.99% of the vote. Just over 58% of those Algerians eligible to vote participated in the election. 

A decade of terrorist violence in Algeria has resulted in more than 100,000 deaths since 1991. Although the security situation in the country has improved, addressing the underlying issues, which brought about the political turmoil of the 1990s, remains the government\'s major task. In keeping with its amended constitution, the Algerian Government espouses participatory democracy and free-market competition. The government has stated that it will continue to open the political process and encourage the creation of political institutions. Presidential elections took place in April 2004 and returned President Bouteflika to office with 84.99% of the vote. 

Algeria has more than 30 daily newspapers published in French and Arabic, with a total publication run of more than 1.5 million copies. Although relatively free to write as they choose, in 2001, the government amended the penal code provisions relating to defamation and slander, a step widely viewed as an effort to rein in the press. Government monopoly of newsprint and advertising is seen as another means to influence the press, although it has permitted newspapers to create their own printing distribution networks. 

Population growth and associated problems--unemployment and underemployment, inability of social services to keep pace with rapid urban migration, inadequate industrial management and productivity, a decaying infrastructure--continue to plague Algerian society. Increases in the production and prices of oil and gas over the past decade have led to a budgetary surplus of close to $20 billion. The government began an economic reform program in 1994, which focuses on macroeconomic stability and structural reform. These reforms are aimed at liberalizing the economy, making Algeria competitive in the global market, and meeting the needs of the Algerian people. 

In September 2003 President Bouteflika announced major changes in his government, replacing six cabinet-level ministers or ministers-delegate. In October 2003, seven other cabinet members resigned citing political differences between Bouteflika and their party leader, former Prime Minister and FLN Secretary General Ali Benflis. Bouteflika dismissed Benflis as Prime Minister in May 2003. In April 2004, after his re-election, Bouteflika again reorganized his cabinet. 

Below is an analysis of Algeria according to 2005 Index of Economic Freedom, The Heritage Foundation and The Wall Street Journal.

Rank: 114

Category: Mostly Unfree

Population: 32,320,000

Total area: 2,381,740 sq. km

GDP: $52.1 billion

GDP growth rate: 4.1%

GDP per capita: $1,655

Major exports: Petroleum, natural gas, petroleum products

Export of goods and services: $15.5 billion

Major export trading partners: Italy 18.4%, Spain 12.7%, France 12.6%, US 11.7%

Imports of goods and services: $14.8 billion

Major import trading partners: France 35.9%, Italy 11.5%, US 9.6%, Germany 8.1%

Foreign direct investment (net): $965 million

REFERENCE

www3.baylor.edu/-Elijah_Beaver/Algeria.htm

www.historyofnations.net/africa/Algeria.htm

2005 Index of Economic Freedom, The Heritage Foundation and The Wall Street Journal