Under the 1976 Constitution (as modified 1979, and amended in 1988, 1989, and 1996) Algeria is a multi-party state. The Ministry of the Interior must approve all political parties. To date, Algeria has had more than 40 legal political parties. According to the Constitution, no political association may be formed if it is "based on differences in religion, language, race gender or region." The head of state is the president of the republic, who is elected to a 5-year term, renewable once. Algeria has universal suffrage. The president is the head of the Council of Ministers and of the High Security Council. He appoints the prime minister who also is the head of government. The prime minister appoints the Council of Ministers.

The Algerian Parliament is bicameral, consisting of a lower chamber, the National People's Assembly (APN), with 389 members and an upper chamber, the Council of the Nation, with 144 members. The APN is elected every 5 years. The next round of legislative elections is scheduled to take place in 2004. Two-thirds of the Council of the Nation is elected by regional and municipal authorities; the rest are appointed by the president. The Council of the Nation serves a 6-year term with one-half of the seats up for election or reappointment every 3 years. Either the president or one of the parliamentary chambers may initiate legislation. Legislation must be brought before both chambers before it becomes law. Sessions of the APN are televised.

Algeria is divided into 48 wilaya (state or province) headed by walis (governors) who report to the Minister of Interior. Each wilaya is further divided into communes. The wilayate and communes are each governed by an elected assembly.