The government legislated reform to encourage foreign investment. But state-owned industry and banking sectors continue to impede this reform. We have supported the continuation of U.S. investment in hydrocarbons essential for Algeria. Other investment may be possible. We strongly support the decision of a U.S. bank to open in Algiers.
Business is possible in some areas, and with due caution.
But, economic change in Algeria is a race against time that the government will lose, unless it picks up its pace of liberalization. This reform is essential to treat the massive unemployment and social desperation which feed extremism. The Algerians want to do more business with American firms and, despite security concerns, U.S. firms have concluded major deals in the petroleum sector. In time, we are hopeful that the economy will grow in other sectors as well, such as housing and construction. We are considering technical training to help the Algerians with their current housing crisis.