This paper investigates the conditions and consequences of integrating small towns
into industrial production networks. It is based on empirical research conducted in
Algeria, a hydrocarbon-dependent rentier economy characterized by significant regional
inequalities and the political aims of economic diversification and spatial rebalancing.
Elaborating the case study of a state-owned cement factory in the small town of Sigus,
the research provides insights into the multiple roles of the state in shaping production
network integration and the characteristics of small towns as economic locations.
The methodology combines secondary data and information with primary research based
on semi-structured interviews. It reveals the importance of a multi-scalar regional
framework in production network integration, whereby national factors played a key
role due to the centralized Algerian state, the state-owned character of the investing
company, and the shortcomings of the small town’s local environment. It emphasizes
the contradictory impacts of production network integration in economic, social, and
environmental terms, primarily on a local level. These contradictions underscore the
necessity for critical evaluations to maximize the benefits of production network
integration while mitigating its adverse effects. They also call for the more consistent
involvement of the local community in similar economic development decisions. Notably,
this research contributes significantly to the existing body of literature by addressing
the underexplored topic of integrating small towns into production networks within
the Algerian context. Doing so offers a more nuanced understanding of the particular
economic, social, and environmental dynamics at play in these locations, thereby enriching
the discourse on economic development strategies for small towns in rentier economies
like Algeria.
