Algeria's first president was the FLN leader Ahmed Ben Bella. Morocco's
claim to portions of western Algeria led to the Sand War in 1963. Ben
Bella was overthrown by his former ally and defense minister, Houari
Boumédienne in 1965. Under Ben Bella, the government had already become
increasingly socialist and authoritarian, and this trend continued
throughout Boumédienne's government. However, Boumédienne relied much
more heavily on the army, and reduced the sole legal party to a merely
symbolic role. Agriculture was collectivised, and a massive
industrialization drive launched. Oil extraction facilities were
nationalized. This was especially beneficial to the leadership after the
1973 oil crisis. In the 1960s and 70s under President Houari
Boumediene, Algeria pursued a programme of industrialisation within a
state-controlled socialist economy. Boumediene’s successor, Chadli
Bendjedid, introduced some liberal economic reforms and prosecuted a
policy of Arabisation in Algerian society and public life. Teachers of
Arabic, brought in from other Muslim countries, spread radical Islamic
thought in schools and sowed the seeds of political Islamism.
The Algerian economy became increasingly dependent on oil,
which led to hardship when the price collapsed during the 1980s oil glut.
Economic recession caused by the crash in world oil prices resulting in social
unrest during the 1980s and ultimately forced Bendjedid to bring in a
multi-party system at the end of the decade. Political parties developed such
as the Front Islamique du Salut (FIS), a broad coalition of Islamist groups.
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