Social Support Strategies And Economic Impacts In Algeria

Abstract

Algeria urgently needs to thoroughly reform its subsidy policy and public financial management in response to growing economic challenges. This reform aims to reconcile essential social support, financial sustainability, and the promotion of economic development. Although subsidies aim to stabilize prices and assist citizens, they represent a significant financial burden for the state, contributing to worsening socioeconomic inequalities. These measures tend to disproportionately benefit high-income individuals at the expense of the most vulnerable. Moreover, the state of public finances and foreign trade, as well as the adjustments provided for by the 2024 Finance Act, are key elements that place subsidies at the heart of political and economic debates. This critical study scrutinizes the historical and ideological foundations of Algeria's welfare state, analyzes the current rentier state crisis, and proposes a multifaceted social policy strategy for significant reform, aiming to secure an economically sustainable and socially fair future for Algeria