The theoretical works of Alec Nove, John E. Roemer and James A. Yunker among others have developed a body of litterature pertaining to the field of market socialism. While interest in this field seems to have diminished since the downfall of the planned economies, it may be worthwile to explore the potential of a market socialist economy in the midst of the current financial crisis.

Quebec workers, who show the highest rate of unionization in North America, have developed, through their unions, powerful financial institutions whose mission is to create and maintain jobs in the province.

While an evaluation of the performance of these funds will be presented in September 2009 at the XXIXes Journées de l’Association d’économie sociale, this presentation will focus on a parallel but related development of the workers’ funds but this time in Algeria.

Created in 2004, the Fonds de soutien à l’investissement pour l’emploi is a brand new initiative by the Algerian workers union Union générale des travailleurs algériens. This project, which plans to gather the savings of 20 000 workers/investors by 2010 is directly inspired by the experience of Quebec’s Fonds de solidarité FTQ.

This paper constitutes a pioneer research on the Algerian fund: nothing has been published so far on the topic. Therefore, after the completion of a field study in August 2009, this paper presents the challenges of establishing a workers’ fund aimed at creating jobs and fighting unemployment. The paper highlights the action of the Algerian State as well as the goals and means of the Algerian trade unions. The paper explains how the Algerian actors have tried to replicate the financial success of Quebec workers’ funds and how they adapt this model to their local conditions.

Three years after the failure of a similar kind of fund in Senegal, the paper tries to explain what has been learned from the Senegal experience and how the Algerian actors try to avoid the pitfalls of the creation of a venture capital initiative led by workers unions.

This research takes place at the very beginning of the creation of the Algerian Fonds de soutien à l’investissement pour l’emploi. While it is too early to evaluate the success of the initiative, the paper documents the early phases of the project which are crucial for later developments.

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Lamonde P., Martineau Y.et Allen D., “Impact économique et fiscal des investissements du Fonds de solidarité des travailleurs du Québec.” (FTQX 1984-1993, INRS-Urbanisation).

Nove, A., ” The Economics of Feasible Socialism revisited.” London, Harper Collins, 1991.

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