A decade of terrorist violence in Algeria has resulted in more than 100,000 deaths since 1991. Although the security situation in the country has improved, addressing the underlying issues, which brought about the political turmoil of the 1990s, remains the government's major task. In keeping with its amended Constitution, the Algerian Government espouses participatory democracy and free-market competition. The government has stated that it will continue to open the political process and encourage the creation of political institutions. Presidential elections are scheduled for April 2004.

Algeria has more than 30 daily newspapers published in French and Arabic, with a total publication run of more than 1.5 million copies. Although relatively free to write as they choose, in 2001, the government amended the penal code provisions relating to defamation and slander, a step widely viewed as an effort to rein in the press. Government monopoly of newsprint and advertising is seen as another means to influence the press, although it has permitted newspapers to create their own printing distribution networks.

Population growth and associated problems--unemployment and underemployment, inability of social services to keep pace with rapid urban migration, inadequate industrial management and productivity, a decaying infrastructure--continue to plague Algerian society. Increases in the production and prices of oil and gas over the past decade have led to a budgetary surplus of close to $20 billion. The government began an economic reform program in 1994, which focuses on macroeconomic stability and structural reform. These reforms are aimed at liberalizing the economy, making Algeria competitive in the global market, and meeting the needs of the Algerian people.

President Bouteflika announced September 2003 major changes in his government, replacing six cabinet-level ministers or ministers-delegate. In October 2003, seven other cabinet members resigned citing political differences between Bouteflika and their party leader, former Prime Minister and FLN Secretary General Ali Benflis. Bouteflika dismissed Benflis as Prime Minister in May 2003.