Key Long-Term Development Issues in Tunisia

Mongi Boughzala ()
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Mongi Boughzala: Faculté des Sciences économiques et de Gestion, Université Tunis III, University of Tunis El Manar

No 9524, Working Papers from Economic Research Forum

Abstract: Two opposite views can emerge when analyzing the Tunisian development experience. The first is a view of success and achievements, and the second is a view of a country facing a lot of weaknesses and challenges. The purpose of this paper is to analyze the strategic factors regarding the development of Tunisia in the long run and to make an assessment of the needed reforms. After a structural adjustment period Tunisia has adhered to the Uruguay Agreements and accepted to belong to a Free Trade Area with the European Union (EU). Do these agreements bring new opportunities or more threats to its fragile agricultural and industrial activities? We will argue that the answer will depend on: 1) the true willingness to adjust hence to accept the negative reactions and the costs generated by reforms, and 2) the ability to create the appropriate conditions for growth and to take advantage of dynamic effects. As to static effects, both the Uruguay and the FTA agreements do not seem in favor of Tunisia. Thus, additional actions are necessary mainly regarding more openness towards countries outside the EU.

Date: 1995-19-10, Revised 1995
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Published by The Economic Research Forum (ERF)

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