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Agrarian Reform and the Development of Capitalist Agriculture in Algeria

In 1971, Algeria's top government officials announced an "agrarian revolution" with two avowed goals. The first goal was to serve the direct economic ends of increasing the supply of food and raw-material inputs to the growing industrial sector, while simultaneously increasing the domestic demand for industrial output. The second goal was to serve the social ends of reorganizing land, labor, and technology in agriculture, putting "an end to the exploitation of man by man" and securing "a just distribution of the proceeds of agriculture." The concern for equity and justice embodied in this announcement presented a puzzle. My previous study of Algeria had revealed that this country had not been developing "socialist" institutions since its independence. Rather more like Turkey under Ataturk and Egypt under Nasser, Algeria had been following a "state capitalist" development path. Under state capitalism, the government owns the major means of production and promotes industrial production of both capital and consumer goods. The private sector in both industry and agriculture, however, remains important and grows, market forces (as contrasted with central planning) remain paramount, both state-run and private enterprises pursue profit maximization, and capitalist/wage-labor social relations of production prevail in all firms. How could a truly egalitarian agrarian reform fit into this scenario? Was the reform merely an empty ruse? Or was the previous research misleading and the scenario wrongly painted? Or might the reform's institutional shape be made to conform to the state-capitalist contours?