Tunisia

This study on a world integration for Tunisia attempts to contribute to the achievement of the growth of the 11th development plan. It first takes stock of past integration... Show More + policies, outlining policies implemented and assessing their impact on foreign direct investments (FDI), exports and employment. Then, it examines the current challenges of integration of Tunisia, which is both global and multisectoral pursuant to the actual creation of a free trade area with Europe for industrial products in January 2008. In the light of challenges expected, another generation of integration reform is identified to further improve the positioning of a competitive Tunisia and realize the potential growth in services. The report contains four chapters. Chapter one analyzes integration policies implemented since the early 70s and evaluates the impact thereof on the FDI, exports and employment. Chapter two examines the current challenges and major reforms necessary to correct the side-effects of past integration policies. Chapter three attempts to identify the reforms necessary to improve quality and lower prices of services. Finally, chapter four examines the prospects for export of professional services (accounting, auditing, legal services) and health by Tunisia, which showed a real capacity to compete in these areas in recent years. Show Less -

This report is the second in a series of World Bank Middle East Economic Studies. It describes the economic progress and prospects of the Republic of Tunisia, and proposes... Show More + ways in which the Government can build on past successes to raise the standard of living of the Tunisian people. Tunisia's recent progress has made it one of the best performing economies in the Middle East and North Africa (MENA) region. Yet, much still remains to be done if Tunisia is to achieve further acceleration of economic growth and welfare for its citizens. The report identifies three key areas for priority attention: 1) deepening and speeding up of the ongoing economic reform program, especially in the area of trade and investment liberalization; 2) privatization and deregulation of publicly provided services in order to improve economic efficiency and promote domestic and foreign private investment; and 3) strong environmental policies to deal with natural resource degradation and scarcity, problems of solid and industrial waste disposal, and air pollution in some urban and industrial centers. Chapter 1 of the report covers monetary, balance of payments, exchange rate and fiscal policies. Chapter 2 deals with the role and size of public enterprises in the economy, the provision of infrastructure services, health and education policies, and environmental management. Chapter 3 discusses a range of policies designed to create a more competitive economy (trade, pricing, labor, industrial, financial and agriculture). Chapter 4 applies the findings of the more recent growth literature and comparative country analysis to the case of Tunisia. Finally, chapter 5 proposes a strategy to maximize the benefits to Tunisia of a closer integration with Europe and the rest of the world. Show Less -