So, what should we expect from Algerian skills abroad? According to a study dedicated to the diaspora in the South Mediterranean region, conducted by the Euro-Mediterranean cooperation network Anima in 2011, these talents organize themselves into networks to be effective in serving as “bridges for economic development between their countries of origin and host countries.” Algeria has about forty such networks (compared to 67 in Morocco) of skills detected abroad, mainly in Europe and North America. Half of these networks are related to the business world, while the rest are spread between civil society and the scientific and technical fields.
In terms of economic initiatives, these networks attempt to bring businessmen from their host countries closer to the Algerian market through regular business meetings or visits of economic delegations to Algeria. For instance, the Algerian-American Business Council and the Network of Algerians Graduated from Prestigious Schools are involved in such efforts. The Algerian Start-up Initiative (ASI), comprising talented Algerians living in Silicon Valley, has been organizing a competition since 2009 to assist Algerians in the diaspora who wish to launch investment projects in Algeria. According to the ASI, training and entrepreneurship are “good entry points for qualified expatriates.”
These competency networks are expanding every year. In 2012, an association dedicated to the Algerian diaspora was born, called AIDA (Algerian International Diaspora Association). Its objective is to “bring together the Algerian diaspora worldwide to create an effective network of solidarity and contribute to Algeria’s development.” However, it seems that this objective has not been fully achieved.
Whose fault is it?
However, the Algerian diaspora is often criticized for its limited contribution to the national economy. In other countries, particularly Arab nations, this contribution is as significant as tourist revenues or foreign direct investments (FDI). For example, according to ANIMA’s study, in Jordan, remittances from the Jordanian diaspora accounted for over 15% of the GDP in 2009, surpassing tourism revenues (10.7%) and doubling FDI (6.4%). In Morocco (6.9% of GDP) and Tunisia (5% of GDP), the share of remittances exceeds that of FDI, accounting for 6.1% and 2.2% of the GDP, respectively.
Representatives of the Algerian community believe that the fault mainly lies with the Algerian government. Abdelwahab Rahim, CEO of Arcofina Group and President of AIDA, stated in one of his media appearances that the Algerian diaspora is willing to contribute its expertise provided that the government creates the “appropriate conditions” for investment. He emphasized that all Algerian businessmen demand “clarity” in terms of economic approach.
On the other hand, networks of scientific skills demand an “exchange space” that allows them to “promote professional exchanges within the network.” Bachir Mazouz, President of RAUC, pointed out in ANIMA’s study the “lack of organization in the university and academic hosting structures.” To address these requests and anticipate them, an advisory council for the Algerian community abroad was created in 2009, with the mission of mobilizing skills to contribute to Algeria’s development.
Participation of the Diaspora in the National Economy
Remittances represent only 1% of the GDP
With $1.84 billion transferred in 2012 ($2.2 billion in 2008), Algeria ranks fifth in Africa in terms of funds sent by immigrants established abroad, according to the latest World Bank report. These remittances represent only 1% of the national GDP.
Considered a form of “capital export from industrialized countries to countries of origin,” they should be more significant, according to Belkacem Sahli, the Secretary of State for the Algerian Community Abroad, especially when compared to other countries, particularly Arab nations.
According to a study on the South Mediterranean region’s diaspora conducted by the Euro-Mediterranean cooperation network ANIMA in 2011, remittances from the Algerian diaspora during the 2001-2009 decade amounted to $16.1 billion. During the same period, the Egyptian diaspora transferred $45.9 billion, the Moroccan diaspora $43.9 billion, and the Jordanian diaspora $24.9 billion.
Some members of the Algerian community abroad attribute this situation to the failure of the banking system and, particularly, to a more attractive parallel currency market.
However, these figures should be taken with caution. According to Abderrahmane Benkhalfa, former General Delegate of the Association of Banks and Financial Institutions (ABEF), remittances arrive in Algeria in the form of transfers to foreign currency accounts or through currency exchange at the airport upon arrival in Algeria. However, the statistics “do not differentiate.” It is unclear whether the transfers made from abroad to foreign currency accounts in Algerian banks are from Algerians residing abroad or just passing through, and it is also unclear whether currency exchange at the airport is done by Algerian immigrants or ordinary tourists. Although immigrants are “majority in incoming flows” since “we do not have an export activity of goods and services that attracts significant foreign flows.”
In any case, regulations regarding incoming transfers are “free except in the case of money laundering control, which mainly affects large amounts and especially when there is a deposit.”
The difference between Algeria and neighboring countries is that the diaspora is genuinely considered a vector of economic development, notably because there is “a channel that allows capturing this flow.” For example, in Morocco, there are “individualized statistics” of remittances, and there is even the concept of MRE (Moroccans residing abroad), as our interlocutor pointed out. Moreover, “Moroccan and Tunisian immigrants have banks established abroad that attract up to 70% of flows in the case of the former.”
