The rentier state crisis in Algeria in 2014: from expanded spending to policy of rationalization of public spending

Abstract

Rentier countries carry a set of economic and social peculiarities that differ from those in countries based on an economy that produces wealth. Algeria as an oil rentier country, which is based on rentier economy as a primary determinant in shaping development policy in all areas, the government adopts expansionary public policies in periods The revenues of petroleum taxation increase, while austerity is in the decline of the latter, so the authority moved from a policy of excessive financing for development programs starting from the beginning of the third millennium, towards implementing austerity measures once fuel prices retreated in international markets at the end of 2014.