Economist Professor Mokhtar Allali, who specializes in development and combating corruption at Al-Tahri Muhammad University of Bechar University for Economic Sciences, confirmed in his interview with “Al-Hiwar” that when we look to the future, it becomes clear to us that the Algerian economy, despite its current shortcomings, has great internal ingredients that enable it to transform The current challenges are bets that can be won in the future according to adapting to the external environment and controlling its internal environment, on the basis of the authenticity of society and its experience of real modernity far from tradition and other projects in the border areas, and that the residents of the border areas can, with the help of state agencies, advance Algeria’s economy, achieving an economic leap by activating the regions Free trade, which pushes to reduce parallel trade by exploiting the social structure. The guest of “Al-Hiwar” also touched on many points of interest to the economic world to enrich the Algerian border strip.
What are the factors for the success of the free zones?
Most economists and investors agree that tax incentives are the most important factor for the success of free zones, but they are not the only ones. Rather, there are other factors that make them highly profitable and have an important economic feasibility among these factors, including the geographical area. Free zones must be established in large geographical areas in ports or airports. Or next to it, or in sparsely populated areas with the aim of developing it or achieving balance between it and the territories of the other country, and that these areas are equipped with all necessary facilities and close to the sources of raw materials, and this region enjoys a historical position in international trade, and provides security in the host country with political and security stability, and this is to attract investments And with transparency in information and transactions with local and foreign investors alike, as well as fighting all forms of administrative corruption such as bribery and bureaucracy, with the availability of the host country at the hands of highly qualified and low-cost workers compared to the host country, in addition to establishing a legal space for investment in this region, so that this defines Space for prohibited and permitted projects, as well as guaranteeing investors the survival of their projects and not Exposure to nationalization, confiscation, or other risks, as well as the flexibility of the banking system, and this is through financial facilities and the transfer of profits abroad, as well as raising the interest rate on savings and reducing it when granting investment loans, while providing sufficient information about the local economy, and this is to give the foreign investor a clear picture of this economy, And the relative stability of the currency value, and this is to attract foreign investors.
Would you tell us about the most important free zones in Algeria?
They are the areas that the Corporation supervises its management and investment in, namely: the free zone, Ain Guezzam Bordj Badji Mokhtar, the Tindouf Free Zone, and Qantourine, in addition to the private free zones. To activate the private free zones, it is an implementation of the government’s directive to activate the role of the local and foreign private sector and its contribution to the sustainable development process. Which requires large capitals that contribute to the absorption of part of the national labor and the exploitation of local primary resources, and for this a number of private free zones operating in various economic activities must be licensed.
You advocate the establishment of many companies across the border areas, how is that?
Yes, a media company must be established and placed near media studios, and established as a nucleus for the free media zone project, which must be agreed upon between the Algerian government and the Malian or Nigerian government, in addition to the importance of an Algerian joint stock market company that operates in all land crossings and dry ports, and the sheep company, which is a company operating In the field of livestock and sheep, and an Algerian company for livestock, which is a company working in the field of livestock, and a multi-purpose house of savings and investment company located on the Algerian financial border, the World of Economics investment company, and a multi-purpose company on the Algerian-Nigerian border, a security company, and a company working in the field of The training of security personnel will be in the Tindouf area on the Western Sahara Road, and a company for investment in minerals will be in the Tindouf area
What are the appropriate solutions to facilitate activity in the border areas?
First, the free zones must be equipped with public utilities, services, and infrastructure such as electricity, water, and a modern communications network that includes telephones, the Internet, telex, fax, mail, and a modern network of internal roads. And opening the door to investment in all kinds of transport to serve the free zones to achieve spatial benefits, and the establishment of branches of a number of banks and insurance companies to facilitate the work of investors, as well as the registration of companies investing in free zones instead of the Ministry of Industry and Trade, and the need to issue certificates of origin (free zones) for industrial products that are produced Within the free zones, in which the percentage of local inputs is less than (40%). With the importance of operating an electronic portal for the institution that enables customers to complete and follow up their transactions and view all information available on the portal.
The border strip is considered one of the important tourist destinations. What do you suggest to promote these tourist areas?
A “national authority should be established for the development of these regions and the involvement of local elected officials and civil society in development processes, organizing spaces, and sustainable social and economic rehabilitation of the border regions,” in order to establish “a platform under the supervision of governors to support investors and accompany them at the level of border regions that would provide facilities for specific projects, with The launch of the device for advertising investment projects directed to economic dealers, with the development of new incentives to encourage tourism and agricultural investment in the border areas, and new mechanisms to support employment in them. next to us.”
What are the real objectives of revitalizing border areas?
Of course, activating the border areas will yield many important results, foremost of which is raising the increase in national incomes, raising the standard of living, reducing disparity in income and wealth, as well as building the material basis for progress, in addition to increasing commercial transactions, and invading African markets with local products, as well as contributing to increasing the effectiveness of Economic diplomacy – while reducing the import bill and reducing the cost of parallel trade.
In order to reduce the cost of parallel trade in the border areas, which burdened the public treasury, what should be done?
The financial surpluses must be exploited and directed to institutions with profitable projects, especially small and medium, specialized in renewable energies, which aim to protect the environment in the first place and other benefits, as well as orientation towards investment in wealth, as well as the advancement of the agricultural sector in these areas, which exceed the area of irrigated areas 439 hectares in the southwest of Algeria, for example. In the Tindouf region, it can achieve self-sufficiency for the wilaya, especially with a population that does not exceed 70,000 people, especially with a green belt (forest trees) of 28.5 hectares, and fruit trees such as olives, about 80 hectares, and palm forests estimated at 396 hectares. Following the experience of Wadi Souf, the leading export experience whose products invaded the markets of Malaysia and Indonesia with dates, and the Russian market with potatoes, and it is possible to exploit the watering of truffles to turn it into a global product for its health benefits, and it is possible to exploit these herbs, attracting pharmaceutical factories, or at least opening herbal collection agencies in the border states, Among them is the provision of job positions, especially after the opening of the land crossings with Mauritania, Mali and Niger, as can be done in coordination with the Ministry of Defense. A branch of Saidal was opened in the region to exploit these herbs in providing medicines locally, and to export them abroad instead of importing them, to reduce the import bill, in addition to the need to pay attention to livestock, as these areas have some types of animals represented in the deer, which is one of the rare animals, and what it contains of The secrets of the benefit of its meat to humans, as there are camels in the region, along with cows in small proportions relative to camels and goats. Grazing and feeding methods, which necessitate the people of the region to think about investing in flour mills that produce cattle fodder, and this prompts the people of the region to intensify investment in meat, livestock and camel breeding, and then desert agriculture, as an auxiliary field to attract labor for this field.
Interviewed by: Nasira Syed Ali
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