Algeria was originally inhabited by Berbers until the Arabs conquered North Africa in the 7th century. Staying mainly in the mountainous regions, the Berbers resisted the spreading Arab influence, managing to preserve much of their language and culture. They make up some 30% of the population.
Part of the Turkish Ottoman empire from the 16th century, Algeria was conquered by the French in 1830 and was given the status of a "departement". The struggle for independence began in 1954 headed by the National Liberation Front, which came to power on independence in 1962.
In the 1990s Algerian politics was dominated by the struggle involving the military and Islamist militants. In 1992 a general election won by an Islamist party was annulled, heralding a bloody civil war in which more than 150,000 people were slaughtered.
An amnesty in 1999 led many rebels to lay down their arms.
Although political violence in Algeria has declined since the 1990s, the country has been shaken by by a campaign of bombings carried out by a group calling itself Al-Qaeda in the Land of Islamic Maghreb (AQLIM).
The group was formerly known as the Salafist Group for Call and Combat, and has its roots in an Islamist militia involved in the civil war in the 1990s.
Although experts doubt whether AQLIM has direct operational links with Osama Bin-Laden, its methods - which include suicide bombings - and its choice of targets, such as foreign workers and the UN headquarters in Algiers, are thought to be inspired by Al-Qaeda. North African governments fear that local Islamist groups in Algeria, Morocco and Tunisia may be linking up under the umbrella of the new movement.
After years of political upheaval and violence, Algeria's economy has been given a lift by frequent oil and gas finds. It has estimated oil reserves of nearly 12 billion barrels, attracting strong interest from foreign oil firms.
However, poverty remains widespread and unemployment high, particularly among Algeria's youth. Endemic government corruption and poor standards in public services are also chronic sources of popular dissatisfaction.
In 2001 the government agreed to a series of demands by the minority Berbers, including official recognition of their language, after months of unrest involving Berber youths demanding greater cultural and political recognition.
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