In Light of the Economic Challenges in Algeria, We Look to the Church for Creativity in Its Contribution to the Common Good

By Raffi Chilingirian

News

Algeria began 2018 with economic indicators and projections warning it of a more difficult year than 2017. The Algerian government is facing enormous economic challenges as the country enters its fourth consecutive year of financial crisis resulting from the decline of oil revenues. This has intensified fear among Algerian citizens with regard to a forthcoming increase in prices on products.

The World Bank reports that the Algerian economy is expected to slow down and the real GDP growth is expected to average 1.2% in 2017-2019. The economic slow-down will be accompanied by an increase in the unemployment rate, which is expected to reach up to 13.2% at the end of 2018. Last year, the unemployment rate reached 11.7%, while in 2016 it was 10.5%.

Moreover, if the financial crisis is a huge problem for the government internationally, what is expected internally with regard to the obligations of the government towards its citizens is an even greater challenge in relation to the social, economic and political sectors.

Analysis

Historically, the Algerian leadership had relied heavily on oil revenues in order to appease the middle class, granting them incentives and a share of the resources in order to keep them under its influence and control and hence maintaining their popular support. However, as resources get depleted, and as oil prices decrease, economies also slow down, putting the ‘alliance’ between the leadership and the middle classes at risk. This scenario has been prevalent in almost all Middle Eastern and North African countries. As for those citizens outside this power-sharing formula, they receive little benefit and, as such, often see no chance for betterment other than to migrate and pursue work opportunities elsewhere.

Today, the Algerian government is facing the challenge of maintaining the value of the dinar in order to protect the purchasing power of its citizens. The dinar dropped nearly 35% in value within the past two years, and this has increased the inflation rate to 6%. All this has led to an increase in prices by about 30%, while some items and products have gone up 50%. On the other hand, the salaries of the employees have not changed. Algerian citizens are now able to buy less with their current salaries.

In order to mitigate this threatening economic crisis, the government is putting restrictions on imports and encouraging local manufacturing and industry, as well as opening up factories with local and foreign partners in order to push for an emerging economy that is developed by the private sector and not solely reliant on oil revenues. Eventually, the government plans to replace certain imports once the local manufacturing industry gains traction. Time will show how viable and effective these measures are in bringing the economy back on track. Despite these initiatives, Algeria still suffers from low levels of human capital, poor economic governance, a lack of competition in almost all sectors, and an extremely challenging business climate.

Theological Reflection and Recommendations

How can the church in the MENA region speak out prophetically against the crony capitalism that is rampant among the ruling elites in the region? Moreover, what role can the Algerian church play in relieving its communities and neighborhoods from the threat of a failing economy that is looming on the horizon?

During its infancy, the church had been active in creating a support system that took care of the poor, the orphans, and the widows. When the Roman Empire was neglecting its own citizens, the Christians were creating welfare services for the poor, the sick, widows and orphans, prisoners and incurables.

The Apostle Paul was influential in collecting alms and financial aid to the brothers and sisters in the church of Jerusalem who were going through economic hardships. Paul had a mission to evangelize and bring the Good News to the gentiles; however, despite his busyness and his focus on his mission, he never forgot about the poor, the orphans, and the widow, reminding the churches to set aside aid.

“During this time some prophets from Jerusalem came to Antioch. One of them was Agabus. Then with the help of the Spirit, he told that there would be a terrible famine everywhere in the world. And it happened when Claudius was Emperor. The followers in Antioch decided to send whatever help they could to the followers in Judea. So they had Barnabas and Saul take their gifts to the church leaders in Jerusalem” (Acts 11:27-30).

The church could also think creatively to come up with ideas for helping its surrounding communities, whether through social entrepreneurship, teaching skills needed in the market, or opening up small shops that can help sustain a family.

On the other hand, the worldwide church ought to be careful in its approach to charitable giving, not to fall prey to top-down and paternalistic approaches, but to aid the other in a manner that empowers the receiver and allows them to retain their value, worth, and dignity as persons.