How did Algeria’s economic policy change from state planning toward privatization?

Following independence, Algeria initially implemented a centrally planned economy characterized by the nationalization of major industries and the use of multiyear economic plans.1

Beginning in the early 1980s, the government shifted toward privatization and economic liberalization. Under the leadership of Chadli Bendjedid, the state loosened its control by restructuring large state corporations into smaller entities and promoting private enterprise through new regulations and financial incentives.12

This transition involved several key reforms:
* Banking and Finance: The government increased the number of state-owned commercial banks in the mid-1980s and later opened the financial market to private and foreign banks during the 1990s.3
* Price Controls: A 1995 law removed government price controls on various commodities, and price subsidies for basic products were gradually phased out as part of restructuring agreements with the International Monetary Fund.3
* Political Shift: By 1989, a new constitution formally dropped references to socialism and ended the one-party state, further distancing the country from its previous socialist economic model.2