After years of a bloody civil war, the military-backed government tried in the late 1990s to regain popular support -- and foreign investor confidence -- by holding elections and offering a general amnesty to Islamic rebels. But these efforts have failed to return stability to Algeria.

Several opposition groups, including the two main ethnic minority Berber parties, the Socialist Forces Front and the Rally for Culture and Democracy, boycotted the recent elections. In the Berber region, less than 2 percent of those eligible turned out to vote, and sporadic clashes between Berber youths and security forces marked the day.

In addition to the FLN's showing, the National Democratic Rally won 48 seats, the Movement for National Reform won 43 seats, the Movement for Society and Peace won 38 seats and the Workers' Party won 21 seats

In the immediate future, the most obvious impact of the increasing tensions will be a resounding defeat of the government's attempt to rebuild foreign investor confidence. Though this won't likely affect the nation's oil and gas industry, other efforts -- such as winning acceptance into the World Trade Organization and courting European manufacturing firms -- will be hampered.

The continuation of the civil war, a Berber uprising earlier this year, severe housing shortages, skyrocketing unemployment, a dwindling economy and the failure of the government to succor thousands of victims suffering from a devastating flood in Algiers last November have all combined to undermine Algeria's "return to democracy" and the government's efforts to get the country onto stable political and economic footing.

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