Civil war memories, oil wealth smooth Algeria politics

Algeria's President Abdelaziz Bouteflika listens to the speech of Libya's leader Muammar Gaddafi at the start of the third European Union-Africa summit in Tripoli November 29, 2010. REUTERS/Francois Lenoir

BOUMERDES, Algeria (Reuters) - With its president in a French hospital for over a month and the surrounding region in turmoil, Algeria looks from the outside to be on course for a period of unrest.

The reality on the ground is different. The state has $200 billion (130.2 billion pounds) in reserves from oil and gas revenues to spend placating the population with jobs and subsidies and a powerful and secretive security service.