Do national defence and security institutions have beneficial ownership of commercial businesses? If so, how transparent are details of the operations and finances of such businesses?
31a. Extent of commercial ventures
Algeria score: 0/100
Defence institutions have ownership (or are believed to have ownership) of commercial businesses that are major enterprises, or constitute more than 10% of the defence budget.
Defence and security institutions have some ownership of commercial businesses, but totaling less than 10% of the defence budget.
Defence and security institutions do not own commercial businesses of any significant scale. (Equivalent to 1% of the defence budget or less.)
The Algerian armed forces are economically active in various sectors. According to the Director of Military Industries at the Defence Ministry, the military industry includes armament, energy, electronics, textile processing, and mechanical engineering. He also said that the military has 40 companies throughout the country (1). The Algerian military also manufactures trucks (2).
The Deputy Defence Minister has underlined that the military industry is important in the process of developing and modernizing the capabilities of the Algerian armed forces (3) but no information on the exact size of the military industry could be found. According to a military official, the foreign direct investments in projects in the military industry amount to nearly one billion US dollars (4). No further information on this figure, for example, a time period, was found. It is therefore not possible to draw any conclusions about the extent of the military’s commercial businesses.
1) “Le général Rachid Chouaki à la RAI: L’industrie militaire fait partie intégrante du tissu industriel national.” January 25, 2018. Accessed October 29, 2018. http://www.radioalgerie.dz/news/fr/article/20180125/131961.html.
2) “Industrie militaire: livraison de 252 camions fabriqués en Algérie au MDN”, March 18, 2019. Accessed March 19. 2019. http://www.aps.dz/economie/87023-industrie-militaire-livraison-de-252-camions-fabriques-en-algerie-au-mdn.
3) “Gaïd Salah souligne l’importance de l’industrie militaire dans la modernisation des forces armées”, February 13, 2019. Accessed March 19, 2019. http://www.aps.dz/algerie/85508-gaid-salah-souligne-l-importance-de-l-industrie-militaire-dans-la-modernisation-des-forces-armees.
4) “L’industrie militaire algérienne …… L’avenir d’ici”, APN website, March 2018. Accessed October 29, 2018. http://www.apn.dz/fr/plus/liens-importants/actualite/2790-l-industrie-militaire-algerienne-l-avenir-d-ici.
Algeria score: 25/100
These businesses are not publicly declared and are wholly non-transparent.
Only some businesses are publicly declared. Details of their operations and finances are not fully transparent.
These businesses are publicly declared, though details of their operations and finances are not transparent.
All or most ownership of commercial businesses is publicly declared. Either operations and finances are transparent, but not both.
Any ownership of commercial businesses is publicly declared, with details of their operations and finances being transparent, fully disclosed, and with standards of governance equivalent to publicly owned commercial enterprises.
Army officials have publicly spoken about the military industry and its activities (1), (2).
Reports on industry operated by the military give some information on its operation but do not fully disclose the nature of its operations and finances, no information was found. There are reports on the scope of the military’s businesses activities, which ranges from armaments to electronics. Its textile production industry is explicitly utilized for both the military and the civil market (3). According to another source, nearly 30,000 civil workers are employed in the military-economic sector (4).
1) Lyes Khaldoun. “El-Djeich : «Les industries militaires se sont imposées comme un choix stratégique»”, May 10, 2018. Accessed October 29, 2018. https://www.algeriepatriotique.com/2018/05/10/industries-militaires-choix-strategique/.
2) Karim Aoudia. “Industrie militaire : Un développement permanent”, elmoudjahid.com, March, 21, 2017. Accessed October 29, 2018. http://www.elmoudjahid.com/fr/actualites/106690.
3) “Algérie | L’Industrie militaire au coeur de la production nationale (made in Algeria)”, youtube.com, December 22, 2016. Accessed October 29, 2018. https://www.youtube.com/watch?v=cTBzh46tEaE.
4) “Secteur économique militaire : près de 30.000 emplois civils créés”, radioalgerie.dz, Decemer, 26, 2016. Accessed October 29, 2018.
Compare scores by country
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|Country||31a. Extent of commercial ventures||31b. Transparency|
|Algeria||0 / 100||25 / 100|
|Angola||0 / 100||25 / 100|
|Burkina Faso||0 / 100||0 / 100|
|Cameroon||0 / 100||0 / 100|
|Cote d'Ivoire||75 / 100||0 / 100|
|Egypt||0 / 100||25 / 100|
|Ghana||0 / 100||0 / 100|
|Iraq||25 / 100||0 / 100|
|Jordan||0 / 100||50 / 100|
|Kuwait||100 / 100||0 / 100|
|Lebanon||50 / 100||50 / 100|
|Mali||50 / 100||50 / 100|
|Morocco||100 / 100||NA|
|Niger||100 / 100||NA|
|Nigeria||50 / 100||50 / 100|
|Oman||0 / 100||0 / 100|
|Palestine||100 / 100||NA|
|Qatar||0 / 100||25 / 100|
|Saudi Arabia||50 / 100||50 / 100|
|Tunisia||100 / 100||NA|
|United Arab Emirates||100 / 100||0 / 100|