Algeria’s Performance on the Resource Governance Index
Algeria received a “failing” score of 38, ranking 45th out of 58 countries. Very low scores on Safeguards and Quality Controls, and Enabling Environment—and a “weak” score on Reporting Practices, led to this outcome.
(out of 58)
(out of 100)
|37||Institutional & Legal Setting||57|
|51||Safeguards & Quality Controls||28|
Institutional & Legal Setting Rank: 37th/58, Score: 57/100 learn more
Algeria received a “partial” score of 57, its strongest performance on any component.
Substantial resource revenues bypass the national treasury and are not reported to the legislature. The Ministry of Energy and Mines (MEM) grants licenses following direct negotiations, not competitive processes. Environmental impact assessments are required and information on the extractive sector legal framework is available online, but Algeria has no freedom of information law nor does it participate in the Extractive Industries Transparency Initiative.
Reporting Practices Rank: 38th/58, Score: 41/100 learn more
Algeria’s “weak” score of 41 stems from minimal disclosures about licensing, contracts, environmental assessments and resource revenues.
The Finance Ministry publishes limited information on oil prices and value of resource exports. The MEM published data from 2005 on hydrocarbon reserves, production volumes, exports, companies operating in the country and production data by company/block. It does not publish any information on disaggregated revenue streams.
Safeguards & Quality Controls Rank: 51st/58, Score: 28/100 learn more
Algeria’s “failing” performance is a result of the high levels of sway enjoyed by Sonatrach, its state-owned company, over the award of licenses and the absence of a process for appealing licensing decisions. A national audit agency reviews oil revenues and reports to the legislature; however, these reports are available only upon request. MEM reports are internally audited only. Government officials with oversight roles are not required to disclose their financial interests in extractive activities.
Enabling Environment Rank: 39th/58, Score: 26/100 learn more
Algeria releases negligible information about the national budget process and faces challenges with the quality of the rule of law. Levels of democratic accountability are particularly low.
State-Owned Companies Rank: 22nd/45, Score: 49/100 learn more
Sonatrach is owned by the government and holds a majority share in ventures with all other energy companies. Its transparency and governance systems leave room for improvement. Its annual reports are available but feature gaps, such as weak reporting on quasi-fiscal activities. Sonatrach’s audited financial statements do not use international accounting standards and are available only on request.
Natural Resource Funds Rank: 20th/23, Score: 6/100 learn more
Established in 2000 and administered by the finance ministry and the central bank, the Revenue Regulation Fund performs poorly on the RGI. Detailed reports on the fund’s assets, investments and transactions are not published; procedures for making withdrawals are unclear; and spending decisions are not rule-based.
Subnational Transfers Rank: 14th/30, Score: 64/100 learn more
The central government transfers resource revenue to local authorities, but only after merging them with other revenues in a Common Fund for Local Authorities. Information on distributions from the common fund is published in local government budgets, available by request from local governments or the Interior Ministry. However, the rules that determine the allocations are not available.
INSTITUTIONAL & LEGAL SETTING
SAFEGUARDS & QUALITY CONTROLS
To explore all data and compare country scores, use the RGI Data Tool.
Key Economic Indicators
|GDP (constant 2011 international $ billions)||69.9||115.9||188.7|
|GDP per capita, PPP (constant 2005 international $)||6,081||7,169||7,643|
|Oil and gas revenue (% total government revenue)||76||67|
|Extractive exports (% total exports)||97||99||98|
|Sources: Oil and gas revenue as share of total government revenue from the Economist Intelligence Unit and the International Monetary Fund. All other data from the World Bank.|