MICROCAPITAL.ORG STORY: Algeria Launches Microfinance Projects to Prevent Recidivism Among Ex-convicts

The Ministry of National Solidarity, an office of the Algerian government, announced last week that it plans to provide microfinance loans to Algerian prisoners who will complete their sentences in the next six months. These microcredit loans aim to help ex-prisoners start their own businesses, which may aid them financially and ease their process of reintegrating into society. On a larger scale, the government hopes that this initiative will help reduce high recidivism rates among ex-convicts in Algeria. [1]

In an article from Magharebia.com, a website that covers all news from the Maghreb (North African) region, the Director of Prison Administration and Rehabilitation Mokhtar Felyoune said that Algeria has a 43 percent recidivism rate, which means that “one out of every two prisoners commits a crime and returns to jail shortly after being released.” Prison authorities claim that this high rate is due to the lack of programs to aid former prisoners in social reintegration. [1]

On October 22, the Algerian National Solidarity Minister Djamel Ould Abbas met with the Algerian Ministry of Justice to sign the agreement for the microcredit scheme, where he claimed that many prisoners have already begun to express interest in it.  Abbas said that around 170 prisoners have submitted applications to receive loans, and 147 of those applications are already being considered as possible recipients. [1]

In addition to microcredit programs themselves, in order to help encourage and increase the probability of entrepreneurial success, prisons have established educational workshops that teach inmates skills, such as sewing, hairdressing, carpentry, and ironworking. In fact, about 3,000 prisoners have already received qualification certificates from the Ministry for Small- and Medium-sized Enterprises. Also, the Directorate-General for Prison Administration held the fifth National Prison Labor Force Work Fair in Algiers, which displayed crafted products, as well as dissertations and research done by prisoners during their sentences. [1]

Aside from Algeria, microfinance schemes for former prisoners have been implemented in the past in other countries, such as in India. For example, in 2007, the State Bank of India, and in 2005, the Bidar District Central Cooperative Bank provided loans and training for men and women prisoners to increase self-reliance and help ease them back into society. (Look to bibliography for more information on these efforts). [2] [3]

Similarly, the Algerian government hopes that its training programs, supplemented by microfinance loans, will serve as a sufficient boost for ex-prisoners to transition to normal life. The government has not yet reported specifics on the exact mechanisms through which these loans are to be issued.

By Radhika Chandrasekhar, Research Assistant

Bibliography

[1] “Microcredit measure aims to help Algeria’s ex-cons.” Magharebia. October 27, 2009. http://www.magharebia.com/cocoon/awi/xhtml1/en_GB/features/awi/features/2009/10/27/feature-01

[2] NEWS WIRE: “Empowering Women Convicts with Micro-credit in India.” May 29, 2007. https://www.microcapital.org/news-wire-empowering-women-convicts-with-micro-credit-in-india/

[3] “Skills to help them earn a livelihood.” The Hindu. July 20, 2005. http://www.hindu.com/2005/07/20/stories/2005072005790400.htm

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