Measuring the Quality of Oil Sector Governance in Algeria Based on the Results of Resources Governance Index (RGI)

Abstract

The importance of oil and gas, as main materials using in most industrial products, in the development process makes the governance of hydrocarbons sector very important where the strength and weakness points in this sector should be precisely identified and an index for the quality of the use of such resources should be developed.

In this side, this study aims to measure the quality of governance practices related with oil industry in Algeria based on the three Resources Governance Principles, namely: value realization, revenue management and country’s enabling environment, contained in RGI adopted by the International Institute of Natural Resources Governance.

The research is a descriptive and an analytical research where the results of NRGI report have been analyzed. The main research’s findings are as follows: the lack of creating value due to the weakness of procedures which concerned as the basis for governance practices, the poor revenue management index due to the lack of governance framework that ensures the benefit of citizens from the wealth of extractive resources, the poor quality of the enabling environment due to the low level of accountability and transparency. Based on those results, the recommendations are: the necessity of providing information about extractive activities and implementing laws related to this sector, the need to join the Extractive Industries Transparency Initiative by Algerian Government