Professional economists believe that the development of basic industries in general and the steel industry in particular is the best beginning step in the process of economic development of underdeveloped countries. This book discusses these positions by using the Algerian experience with the steel industry as a case in point at particular times, as today tremendous change can be seen in Algeria and in the rest of the world as far as the role of the steel industry is concerned. The iron and steel industry has been known to create the necessary conditions for sustained capital formation at a rapid rate. In addition to the savings in foreign exchange (affected by the reduction of steel imports), the other beneficial effects in the establishment of a local steel industry are employment generation and skill formation.
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