Natural Resources

Algeria is located in North Africa and while being the second largest country in Africa, finds itself in the precarious position of being located on the edge of the Sahara Desert. Economically, the are advantages and disadvantages of such a location. The discussion of Algeria's main exports tie directly into its position geographically.

While part of Algeria is located on the coast, most of the country is a desert. For this reason, Algeria is not an agricultural powerhouse. One commentator said, "There is not enough potentially arable land remaining in Algeria to equate demand and supply by simply expanding cropland. Possibilities for new development are limited to about 250,000 acres; irrigation offers, additionally, more efficient use of less than half that amount" (Holm, 1). In addition, agriculture used to be Algeria's dominant sector but quickly became handicapped after French colonization ended (Metz, 152). Wine production, olives, wheat and barely represent some of Algeria's main staple crops. While some agriculture does exist in Algeria, the major exports of Algeria are in minerals and oil.

One source states that the major industries in Algeria are: oil, natural gas, light industries, and food processing (Algeria, 1). Oil is probably one of the biggest attractions for investors in Algeria due to its relative distance to Europe: "Algeria is very well positioned on the supply side to meet a healthy portion of this growth in demand [for oil]. As the second largest country in Africa and the tenth largest in the world, it has the advantages of an abundance of hydrocarbons and its proximity to Southern Europe" (Majumdar, Chapter 12). Hydrocarbons represented an average of just over 23 percent of Algeria's GDP in 1990 (Metz, 145). In addition, Algeria's mineral deposits are vast. The main minerals Algeria exports are: iron, phosphate, mercury, and zinc (Metz, 148). One estimate of iron ore found in Algeria could be as large as two billion tons. Natural gas also constitutes a vast part of the Algerian economy. In 1992, it was estimated that Algeria's 3,200 billion cubic meters of recoverable natural gas could last up to sixty years (Metz, 147).

Much of Algeria's economic prospects have changed drastically in the years since French colonization ended. As discussed, Algeria was somewhat crippled agriculturally after the French departed. Algeria is still positioned well in the world for international trade as it became its own country, however. The proximity of Europe ensures that Algeria will continue to funnel resources North to satisfy the appetites of Europeans.

Bibliography

"Algeria." In The World Almanac and Book of Facts, 596. New York: World Almanac Books, 2001. General OneFile (accessed September 25, 2016). http://p2048-ezproxy.liberty.edu.ezproxy.liberty.edu/login?url=http://go.galegroup.com.ezproxy.liberty.edu/ps/i.do?p=ITOF&sw=w&u=vic_liberty&v=2.1&it=r&id=GALE%7CA73404917&sid=summon&asid=dfbc94fe473f6864d7cf908fe5dda677.

Holm, Henrietta. The Agricultural Economy of Algeria. Washington D.C.: The United States Department of Agriculture, 1911.

Metz, Helen C. Area Handbook Series: Algeria a Country Study. Washington D.C.: PN, 1993.

Saad, Mohammed A., and Margaret Majumdar. Transition and Development in Algeria. Bristol: Intellect Ltd., 2012.