The Plan recognises that the Algerian economy has been affected to varying degrees by all the ills of rentier economies -- it is very poorly diversified and relies heavily on public spending. The Plan aims to promote inclusive industrial and economic development through the better use of natural resources and consideration of environmental impacts within a sustainable development framework; reforming the investment climate; and building better infrastructure.
The Plan also mentions that exports are more than 90% (2020) from the hydrocarbon sector, and the state budget's dependence on oil taxes ranges from 40% (2019) to 60% (2010). The Algerian economy is therefore highly vulnerable to oil price shocks. These tend to occur more frequently; the most recent ones occurred in 2008, 2014, and 2020. Furthermore, since hydrocarbons are non-renewable resources, an economic model based primarily on their exploitation cannot be sustainable.
The Plan discusses the need for energy and food security in the context of climate change, and the necessity of the energy transition and transformation in consumption patterns. The strategies therfore include producing and preparing an export strategy for the renewable energy sector; and decentralising the production of renewable energy.
