Financial Corruption and its Relationship to the Parallel Economy

Abstract

The emergence of black markets in Algeria dates back to the 1970s. This was due to a significant gap between the decreasing supply of food commodities and the increasing demand for them, coupled with a decline in agricultural production. Various food items were sold in these markets at prices significantly higher than those in the official market, which was subsidized by the state at the time. The informal sector began to emerge in the mid-1980s following the economic crisis, which led to several negative consequences that significantly impacted the national economy. This prompted Algeria to pursue reforms that resulted in the shift from the socialist system to a market economy. All of this contributed, in one way or another, to the spread of corruption in its various forms in Algeria, particularly financial corruption, which had a major impact on the national economy.