This paper is intended to analyse Ihe crisis of development management in Algeria at various organizational levels from the top to the bottom, and provide guidelines within a comprehensive reform perspective. The analysis begins at the top, the political level, the level where economic decisions are made. It goes on to deal with the economic sectors which have been fully subjugated to the political will through respective ministries, and finally to the basic level of micro-economic units, which is characterized by managerial vacuum and indecision. Reform requires that micro-economic decisions be taken al the basic level itself, essentially through private businesses and initiatives. AI higher levels emphasis is to be placed on coordination, orientation, and supportive indirect intervention of the state. Political and institutional reforms are indispensable in order to accommodate managerial and economic reforms.