Section2 Group 18 Tunisia.pdf

8/11/2019 Section2 Group 18 Tunisia.pdf

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Tunisia: CountryAnalysis

Understanding Emerging Markets

1project

Group Members:

Nishanth M V DM15235

Soundarya J DM15254

Lakshmikshatriya DM15268


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Tunisia: Country Analysis Group 18

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Contents

i. Introduction..1

ii. History...5

iii. Demographics..7

iv. Politics and Governance..12

v. Culture ...15

vi.

The Economy...... ..20vii. Doing Business in Tunisia..28

viii. SWOT Analysis.........31

ix. Conclusion..32

x. References.....33


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1.Introduction

Tunisia is in the northern part of Africa, bordered by Algeria on its west, Libya on

the south and Mediterranean Sea on the north and east. Sahara desert lies at the

south of the country. The country is 165000 sq. kms in area and the capital of the

country is Tunis. In their time, the Romans, Arabs, Ottoman Turks and French

recognized its strategic significance, making it a hub for control over the region. It

served as a shipping route for trade related activities.


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National Flag

The first flag of Tunisia has horizontal blue, green and red stripes, referring to the

Ottoman period in the country. Later the Tunisian flag was changed in 1959.

The red color in the flag represents blood of the martyrs killed when Turkey

conquered Tunisia way back in the 16th century.

The white colored circle represents Sun.

The Red Crescent and the five pointed star are the symbols that are widely used

across many Islamic countries and this refers to the Ottoman rule. The crescent

is believed to denote good luck.

Coat of Arms


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The coat of arms of Tunisia has three sections,

Ship- A symbol of freedom

Balance- A symbol of justice

A lion with a sword- A symbol of order

The emblem of the flag of Tunisia is seen above the shield and below the ship, the

national motto is written in Arabic which means- Freedom, Order and Justice.


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2.History

Tunisia was ruled by Roman rulers until invasion by European tribes but Muslims

took over the country in the 7thcentury and in then later it was made a part of the

Ottoman Empire, otherwise called the Turkish Empire. It remained under the

control of Turkey from 1570. Post 1881, the country was made a French

protectorate. Tunisia gained independence from the protectorate in 1956 under the

leadership of Habib Ali Bourguiba and in 1957, it was declared a Republic. In 1959,

Tunisia established a constitution that described the powers of the president, roles

of military. The constitution was derived from French. Tunisia still follows the same

constitution.

Post-independence, the history of the Tunisia can be described in two eras

Bourguiba era

The political party under Bourguiba was the Neo Destour party and he was made

the President after the independence. Bourguiba insisted on anti-Islamic

fundamentals and he placed strong emphasis on economic and social development

concentrating on empowerment of women, free and compulsory education for all,much different from the other neighboring Arab countries. Neo Destour party was

the only party in the country and there was no opposition. Bourguiba was named

the President for life as there wasnt any opposition for his party. But later in 1981,

the government legalized opposition parties to run for office.

Ben Ali

Ben Ali became the President of Tunisia in 1987, after Bourguiba was declared

medical unfit. Ben Ali introduced changes in the constitution where the President

cannot serve more than three five-year terms. The name of the ruling party was

changed to Democratic Constitutional Party. Though the country grew economically

under his leadership, his regime was considered one of the most repressing regimes

and the country suffered from unemployment. In December 2010, there was a mass


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protest in the country against unemployment and corruption and it was called the

Tunisian revolution. A state of emergency was declared by Ben Ali. After 23

years in power, he was forced to step down on January 14, 2011. In June, Ben Ali

and his wife were found guilty in corruption and sentenced to 35 years in prison.

The first election since independence was held on Oct 2011 and Hamadi Jbeli from

the Islamist Ennahda party, was named prime minister and Moncef Marzouki

became the President. Unemployment increased under the new government, the

economy didnt grow and Islamic extremism spread. The ultraconservative Muslim

group called Salafis burned down anything they considered sacrilegious. Ennahda

party was accused of overlooking the violence by the Salafis. The violence continued

in early 2013, the leader of opposition, Chokri Belaid who had been critical of the

Islamists was assassinated and several protesters marched in Tunis after his death,

protesting the government its religious motives. Prime Minister Hamadi Jebali

resigned. Interior Minister Ali Larayedh took over as interim prime minister and he

formed a government. Mohamed Brahmi, the head of the opposition Peoples Party,

was assassinated in July 2013. The government blamed a militant group linked to

al-Qaeda was responsible for the assassination and the opposition blamed the

government for allowing Islamic extremists to operate a country.


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3 Demographics

The population of the country has been increasing and the population growth rate is

0.964%. The population of the country in 2012 is 10.7 million. The birth rate is

17.28 births/ 1000 population. The total median age in the population is 30.5 years.

Tunis, the capital of Tunisia holds the major population of the country, 759000. The

life expectancy years of men in Tunisia is 73 years and is 77 years for women.


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When comparing Tunisia with the other Arab countries, the median age is high

while for nations such as Palestine and Yemen, it is just 18 years. The high median

age is attributed to the declining birth rates in the country, which is because of the

decreasing fertility rates.

From the above figure, we can see that the population in the age group 0-14 has

seen a tremendous change from what it was in 1965 and what it was in 1990, when

the median age was low. Now it is pushed to the intermediates and in 2010, we see

a large percentage in the age group 25-24 and in the estimated population for 2025,

a large percentage of the population seems to be in the age group 35-44 which would

push Tunisia to a mature population and the median age would rise.


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Employment to population ratio

The above graph talks about the employment to population ratio which actually

measures the proportion of the population that is employed. The ratio has been 60

on an average and has not moved beyond that, unemployment is still a majorconcern for the country.


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Ethnic groups

98% of the population are Arab Berbers and they are the inhabitants of North

Africa.

Religion

Ethnic groups

Arab European Jewish & Others

Religion

Muslim Christianity Others


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Islam is obviously the most commonly followed religion and accounts to 98% of the

population following it. Other minor religions are Christianity and Jewish.

Languages

Arabic is the commonly spoken language, French is also spoken in some parts of the

country.

Literacy

74% of the population are literate and when looking at the statistics by gender,

83.4% of men are literates and 65.3% of females are literates. The literacy rate

increased greatly after the independence because of the policies introduced by

Bourguiba. But the literacy in Arabic is very high at 90%.

74%

26%

Literacy

Literates Il literates


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4.Politics and Governance

Structure of Government

Tunisia is a constitutional republic which has an executive president, alegislature and judiciary. The military is neutral and does not play any role in

national politics.

Executive branch

In Tunisia, the term of President is five years. He appoints a Prime Minister

and cabinet, who play a strong role in the execution of policy. Regional governors,

local administrators, mayors and municipal councils also are appointed by thecentral government.

Legislative branch

The lower house of the bicameral Parliament is the Chamber of Deputies of

Tunisia , which has 214 seats. Members are elected by popular vote to serve five-

year terms. At least 25% of the seats in the House of Deputies are reserved for the

opposition. More than 27% of the members of the Chamber of Deputies are women.The Lower House plays a significant role as an arena for debate on national policy.

It holds representatives form 6 parties and hence is a hot platform for discussions of

national interest. Opposition members can vote against bills or abstain. Because of

the comfortable majority enjoyed by the governing party, bills usually pass with

only minor changes as in any democracy.

The Chamber of Advisors is the upper house, which includes 112 members

including representatives of governorates (provinces), professional organizationsand national figures. 41 members are appointed by the Head of state while the the

rest are elected by their peers. About 15% of the members of the Upper house are

women.
http://en.wikipedia.org/wiki/Constitutional_republichttp://en.wikipedia.org/wiki/Republichttp://en.wikipedia.org/wiki/Chamber_of_Deputies_of_Tunisiahttp://en.wikipedia.org/wiki/Chamber_of_Deputies_of_Tunisiahttp://en.wikipedia.org/wiki/Chamber_of_Deputies_of_Tunisiahttp://en.wikipedia.org/wiki/Chamber_of_Deputies_of_Tunisiahttp://en.wikipedia.org/wiki/Republichttp://en.wikipedia.org/wiki/Constitutional_republic


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Judicial branch

The Tunisian legal system is based on French civil law system and Islamic

law.Some judicial review of legislative acts in theSupreme Court in joint session.

Judiciary of the country is independent and the judicial council is chaired by the

head of state.

The 2011 presidential transition

Zine El Abidine Ben Ali's departure in January 2011,Mohamed

Ghannouchi andFouad Mebazaa served terms as acting president. On December

12, 2011,Moncef Marzouki was elected as the interim president of Tunisia by

theConstituent Assembly of Tunisia .

Politics

Tunisia function with a framework of a democratic constitutional republic.

President serves as head of state, Prime Minister as head of government a

bicameral legislature and a court system influenced by French civil law. Between

1956 and 2011, Tunisia operated as a de facto single party system, with politicsdominated by the secular Constitutional Democratic Rally(RCD) under former

Presidents Habib Bourgiba and then Zine el Abidine Ben Ali. In 2011 a national

uprising led to the ouster of the President and the dismantling of the RCD, giving

way for a multiparty democracy. Tunisia is a member of the Arab League, the

Organisation of Islamic Cooperation and the African Union. It maintains close

relations with European Union and especially France. They entered an Association

Agreement in 1995 with the EU. Tunisias favorable relations with the EuropeanUnion is showed by the following years of successful economic cooperation in the

private sector and infrastructure modernization.
http://en.wikipedia.org/wiki/French_civil_lawhttp://en.wikipedia.org/wiki/Shariahttp://en.wikipedia.org/wiki/Shariahttp://en.wikipedia.org/wiki/Shariahttp://en.wikipedia.org/wiki/Supreme_Courthttp://en.wikipedia.org/wiki/Zine_El_Abidine_Ben_Alihttp://en.wikipedia.org/wiki/Mohamed_Ghannouchihttp://en.wikipedia.org/wiki/Mohamed_Ghannouchihttp://en.wikipedia.org/wiki/Fouad_Mebazaahttp://en.wikipedia.org/wiki/Moncef_Marzoukihttp://en.wikipedia.org/wiki/Constituent_Assembly_of_Tunisiahttp://en.wikipedia.org/wiki/Constituent_Assembly_of_Tunisiahttp://en.wikipedia.org/wiki/Habib_Bourgibahttp://en.wikipedia.org/wiki/Zine_el_Abidine_Ben_Alihttp://en.wikipedia.org/wiki/Tunisian_Revolutionhttp://en.wikipedia.org/wiki/Tunisian_Revolutionhttp://en.wikipedia.org/wiki/Arab_Leaguehttp://en.wikipedia.org/wiki/Organisation_of_Islamic_Cooperationhttp://en.wikipedia.org/wiki/African_Unionhttp://en.wikipedia.org/wiki/African_Unionhttp://en.wikipedia.org/wiki/European_Unionhttp://en.wikipedia.org/wiki/European_Unionhttp://en.wikipedia.org/wiki/Association_Agreementhttp://en.wikipedia.org/wiki/Association_Agreementhttp://en.wikipedia.org/wiki/Association_Agreementhttp://en.wikipedia.org/wiki/Association_Agreementhttp://en.wikipedia.org/wiki/European_Unionhttp://en.wikipedia.org/wiki/African_Unionhttp://en.wikipedia.org/wiki/Organisation_of_Islamic_Cooperationhttp://en.wikipedia.org/wiki/Arab_Leaguehttp://en.wikipedia.org/wiki/Tunisian_Revolutionhttp://en.wikipedia.org/wiki/Tunisian_Revolutionhttp://en.wikipedia.org/wiki/Zine_el_Abidine_Ben_Alihttp://en.wikipedia.org/wiki/Habib_Bourgibahttp://en.wikipedia.org/wiki/Constituent_Assembly_of_Tunisiahttp://en.wikipedia.org/wiki/Moncef_Marzoukihttp://en.wikipedia.org/wiki/Fouad_Mebazaahttp://en.wikipedia.org/wiki/Mohamed_Ghannouchihttp://en.wikipedia.org/wiki/Mohamed_Ghannouchihttp://en.wikipedia.org/wiki/Zine_El_Abidine_Ben_Alihttp://en.wikipedia.org/wiki/Supreme_Courthttp://en.wikipedia.org/wiki/Shariahttp://en.wikipedia.org/wiki/Shariahttp://en.wikipedia.org/wiki/French_civil_law


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Political parties and issues

Tunisia has reformed its political system several times, abolishing life-term

presidencies and opened up the parliament to opposition parties since 1987. There

has been an increase in number of new political parties and associations since the

beginning of Ben Ali's presidency in 1987. At present there are 8 recognized

national parties, 6 of which hold national legislative seats. Ben Ali's was

representing a party known as the Constitutional Democratic Rally (RCD). RCD

won clear majorities in local, regional, and national elections. Although RCD was

renamed as the Socialist Destourian Party during President Bourguibas days, its

policies were still considered to be largely secular and conservative. However, the

Tunisian Revolution in 2011 removed the party from power after a long term in

power.

Politics and Society

Women's equality

Women hold 23% of the seats In the Chamber of Deputies women hold 23% of the

seats, outpacing the percentage of women serving in the U.S. Congress, stands at

17% in the 111th Congress. More than 1/5 th of the seats in both chambers of

parliament are held by women. Considering the region in which the country is
http://en.wikipedia.org/wiki/Tunisian_Revolutionhttp://en.wikipedia.org/wiki/Tunisian_Revolution


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located, it is exceptionally high. Polygamy is forbidden by law in Tunisia which is

the only Arab country to do so. This is part of a provision in the countrys Code of

Personal Status which was introduced by President Bourguiba in 1956.

Civil unrest

Tunisias slow pace in improving democratic practices was recently brought to light

by the government which suppressed violent Islamist extremists, who held a pro-

western foreign policy. Some restriction of basic human rights and obstruction of

human rights organizations have been documented by groups. The government was

severely criticized in 2008 for handling of social unrest in the town of Gafsa. But in

general, it has been praised for its efforts in responding constructively to the events.

Trade unionists was initially arrested for protesting working conditions and were

released on the order of President Ben Ali and officially pardoned in October

2009.Amnesty International and various other organizations criticised the Levels of

democracy and freedom of expression in the country


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5.Culture

The culture is a product of more than 3000 years of history and an multiethnic

influx. Ancient Tunisia had a major civilization crossing through history, differentcultures, civilizations and many dynasties. Carthaginian, Roman, Vandal, Jewish,

Christian, Arab, Islamic, Turkish, French and Berbers was their native civilization.

This unique mixture of cultures made the country, with its strategic geographical

location in the Mediterranean, the core of some great civilizations of Mare Nostrum.

Tunisian culture are diverse and represent a unique, mixed heritage.

Arts

The countrys older art came from the influence of China, Spain, Persia and the

near east forming style known as Arabesque. The artists are known for their

mosaics and pottery.

Dance

Dance forms in Tunisia are featured by a multilevel of forms and the

contexts in which it appears, includingcircumstances, weddings and festive events .

Tunisian dance resembles Egyptian dance, and is distinguished mainly by its

dynamic, with its speed with morestaccato, and the multitude forms, with each

region having their own style. It is difficult to explain a Tunisian dance, since it is

influenced by the Egyptian.A social phenomenon born in the working classes of

Tunisian cities is reflected in the dance.
http://en.wikipedia.org/wiki/Circumcisionhttp://en.wikipedia.org/wiki/Circumcisionhttp://en.wikipedia.org/wiki/Staccatohttp://en.wikipedia.org/wiki/Staccatohttp://en.wikipedia.org/wiki/Circumcision


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Literature

Tunisian literature exists in two forms: Arabic and French. Arabic literature dates

back to the 17th century with the starting of Arab civilization in the region. It is

more important as in volume and value than French literature. Douagi Ali, has

produced more than 150 radio stories, over 500 poems and folk songs and nearly 15

plays. Khraief Bashir,an Arabic novelist who published many notable books in the

1930s and caused a scandal because the dialogues were written in Tunisian dialect.

The national bibliography lists about 1249 non-school books published in 2002 in

Tunisia, with 885 of them carrying Arabic titles. By 2006 this figure had increased

to 1,500 and 1,700 in 2007. Nearly a third of the books are published for children.

Festivals

Lots of international festivals, national, regional or local punctuate the

calendar year. National cultural scene is dominated by music and theatrical

festivals .In the July, theCarthage International Festival takes place, the

International Festival of Arts of Mahr and the International Festival of

Hammamet. During the months of OctoberNovember that theCarthage Film

Festival is held. The Carthage Film Festival, created in 1966 by the Tunisian

Minister of Culture, showcases films from theMaghreb,Africa and the Middle East.

Grand prize is theTanit d'or,or "Golden Tanit," named after thelunar goddess of

ancientCarthage. The year is completed by theSahara International Festival,

which celebrates the cultural traditions associated with the Tunisian desert. The

festival attracts many tourists and musicians from all around the world. Other

festivals honor traditional Tunisian music and jazz, including theTabarka Jazz

Festival.
http://en.wikipedia.org/w/index.php?title=Douagi_Ali&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Khraief_Bashir&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Carthage_International_Festival&action=edit&redlink=1http://en.wikipedia.org/wiki/Carthage_Film_Festivalhttp://en.wikipedia.org/wiki/Carthage_Film_Festivalhttp://en.wikipedia.org/wiki/Maghrebhttp://en.wikipedia.org/wiki/Tanit_d%27orhttp://en.wikipedia.org/wiki/Tanit_d%27orhttp://en.wikipedia.org/wiki/Tanit_d%27orhttp://en.wikipedia.org/wiki/Tanithttp://en.wikipedia.org/wiki/Carthagehttp://en.wikipedia.org/wiki/Carthagehttp://en.wikipedia.org/w/index.php?title=Sahara_International_Festival&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Tabarka_Jazz_Festival&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Tabarka_Jazz_Festival&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Tabarka_Jazz_Festival&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Tabarka_Jazz_Festival&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Sahara_International_Festival&action=edit&redlink=1http://en.wikipedia.org/wiki/Carthagehttp://en.wikipedia.org/wiki/Tanithttp://en.wikipedia.org/wiki/Tanit_d%27orhttp://en.wikipedia.org/wiki/Maghrebhttp://en.wikipedia.org/wiki/Carthage_Film_Festivalhttp://en.wikipedia.org/wiki/Carthage_Film_Festivalhttp://en.wikipedia.org/w/index.php?title=Carthage_International_Festival&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Khraief_Bashir&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Douagi_Ali&action=edit&redlink=1


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Food

Tunisian cuisine is a blend of Mediterranean cuisine and desert dweller's culinary

traditions. Its distinctive spicy fieriness comes from neighboring Mediterranean

countries and many civilizations who have ruled Tunisian land such as

Phoenician, Roman, Arab, Turkish, French, and the native Berber people. A variety

of ingredients are used in many different ways. A variety of flavors are used in

cooking, such as oliveoil, aniseed, coriander, cinnamon, saffron, mint, orange,

blossom rosewater etc.

The national dish of Tunisia is Couscous and is prepared in many ways. Its

also known as the best couscous of North Africa. The food is cooked in a special

kind of double boiler called a kiskasin Arabic or couscoussirein French. Meat and

vegetables are half boiled in lower. At the top has holes in the bottom through

which the steam rises to cook the grain which is mixed finally.By doing so , the

grain acquires the flavour of whatever is below. Semolina is the usual grain used.

The grain is piled in the middle of a dish, and the meat and vegetables are put ontop and served. A sauce can be then poured .


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Sports

Football is the most popular sport in Tunisia.TheLigue Professionel has 14

teams that compete against one another for a trophy.It also a chance to qualify for

the Champions league of the African Cup of Nation. The football team won the

African Cup of Nations in the year 2004. However, sports like volleyball with 8

national team championship and handball with 7 national team championship

wins in Africa are also among the sports . Handball is the second most popular sport

in Tunisia.Tunisia held the 2005 World Men's Handball Championship and won

fourth place in the competition. Other sports include rugby union, martial arts like

taekwondo, judo and karate ,athletics and tennis. Other major sports are cycling are

less importance is given, due to lack of infrastructure and equipment but

competitors still compete in the Tour de Tunisia.

Media

Freedom of the press is officially guaranteed and condoned.Independent

press remains restricted.Journalists are often obstructed from reporting on

controversial events. Tunisia practiced internet censorship against popular websites

such as YouTube after the Jasmine Revolution,.Reporters Without Borders includes

Tunisia in the country list of Enemies of the Internet". Tunisia recently has

showed interest to improve its information policy, and hosted the second half of

the United Nations sponsored by the World Summit on the Information Society in

2005.This endorsed the freedom of the internet for political participation and

human rights protection. Further, Tunisians have grown online, as witnessed by the

more than 3.5 million regular internet users, 1.6 million Face book users and 100's

of internet cafes..Five private radio stations have been established including

Mosaique FM, Express FM, Shems FM and private television stations such as

Hannibal TV andNessma TV.
http://en.wikipedia.org/wiki/Tunisian_Ligue_Professionnelle_1http://en.wikipedia.org/wiki/Express_FMhttp://en.wikipedia.org/wiki/Shems_FMhttp://en.wikipedia.org/wiki/Hannibal-TVhttp://en.wikipedia.org/wiki/Nessma_TVhttp://en.wikipedia.org/wiki/Nessma_TVhttp://en.wikipedia.org/wiki/Hannibal-TVhttp://en.wikipedia.org/wiki/Shems_FMhttp://en.wikipedia.org/wiki/Express_FMhttp://en.wikipedia.org/wiki/Tunisian_Ligue_Professionnelle_1


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6.The Economy of Tunisia

History

Tunisia is one of the economic success stories in the African Continent. Over the

last 20 years, The country has enjoyed a good rate of growth when compared with

other countries. On a large scale, the success can be attributed to 3 main factors.

1) The political system and its integrity as well as the economic environment

paved way for a stable economic relation with foreign nations. Trade barriers

were reduced and the country was able to attract foreign investments.

2)

Restructuring of the internal financial practices related to budget deficits,inflation and taxes.

3) Development in infrastructure relative to the growth in the economy.

Tourism and service sectors were given importance.

The foundations for growth were laid by the French, during their occupation of the

country until 1956. The French governance installed a functional judicial system

and a well structured and reliable financial structure.

Brief economic timeline:

1960-1969 The socialist experience: The first president Habib Bourguiba was an

advocate of socialism and attempted nationalization of industries, and more

importantly, agriculture. He grew unpopular among the farmers and the public.

The struggle between capitalism and socialism that was prevalent in the world

affected the Tunisian economy and the world bank intervention pushed the

economy towards capitalism.

The Liberalist 1970s: The rise of state capitalism. The countrys economy changed

towards more liberal capitalist form of government. Privatization of industries and


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legislations to attract foreign investments and private firms took center stage. Even

though the measures took effect, the influence of trade unions prevented complete

liberalization of the economy.

1980-1986. The troubled times: The reducing oil and phosphate prices as well as

the shrinking European economy saw the country ailing under economic troubles.

Riots took place over bread prices and the government had to increase wages.

1985-1995 The Ben Ali Regime: This era saw complete integration of the Tunisian

economy the global economy. The rising public deficits forced the country to sign the

International Monetary funds Structural Adjustment Program. Market pricing

strategies and reduced tariffs became the policy. Subsidies were at 55% ofgovernment spending and the budget deficit at 5.3%. All these forced the country to

restructure its financial structure, trade policies etc.

1995-2010 The Growth Era: Tunisia entered into bilateral agreements with

European Union and several countries which bolstered its economic growth. A

competitive pricing strategy with low labor costs allowed country to grow rapidly.

The Foreign investment climate was becoming more and more favorable. During the

period from 1991-1995, FDI doubled from $126 million to $250 million. Changes

were also visible in the trade sectors where in 1980s, petroleum and petroleum

based products accounted for over 50% of exports, followed by textiles at 18% and

agriculture at 8%. By 2006, Textiles accounted for 33% of exports while machinery

and agriculture amounted to 19% and fuel at 13%. This massive shift helped the

economy withstand external shocks due to fluctuations in oil prices as the

dependency reduced considerably.

The Government also gave importance to developing infrastructure especially

communications. This development helped improve the investment climate and

attractiveness for businesses.


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2010-Present The Post-revolution Years: Unstable political environment and

frequent strikes have resulted in a slow down of economic growth. The country is

still recovering from the affects of revolution. The economy showed a growth of 3.3%

on 2012, thanks to a good agricultural season and improvement in the tourism

sector.

Key Economic Indicators

1. GDP (2000-2013)

The growth in GDP has been steady and healthy. The important fact to note is that

the economy was practically unaffected by the 2008 global financial crisis. The


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growth stagnated during the years 2009-2011 due to the political revolution in the

country.

2. GDP Per Capita(2000-2013)

GDP Per capita also shows a similar trend as the overall GDP growth. The GDP per

capita shrunk from 2011-2012 owing to the political instability in the country.

3. Currency (Tunisian Dinar V/s USD) 2007-2013


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The Tunisian Dinar has been depreciating over the years from 1.35 in 2008 toaround 1.65 in 2013. The average over the years 2002-2013 has been around 1.370with highest of 1.900 (March 2002) and lowest of 1.1300 (March 2008).

4. Inflation Rates


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The inflation rates have shown a fluctuating trend. Inflation has never been an

issue since 2002 and have peaked around 6% and the lowest being around 1.5%.

The rates are quite healthy over the years but the recent years have seen a rise in

inflation rates, again owing to the global economic situation and the internal

political instability.

5. Balance of Trade

The trade balance is negative. This shows that the imports of the country are nore

than exports. When the recent years are being considered, we can see a huge rise in

the balance of trade indicating a weakening of the domestic manufacturing

industry.


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6. Current Account to GDP

The current account deficit of the country is at 8.1% of GDP as in 2013. The country

has a strong dependence on imports and shows a healthy domestic consumption

cross referencing with the balance of trade confirms the increase in imports

resulting in a decrease in balance of trade as well.

7.

Debt to GDP


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The debt to GDP Ratio is at 43.5% in 2013. The value peaked in 2002 at 67.6

and had a minimum in 2011 at 40.4%. The countrys ability to pay future

debts is measured by this value. This value also determines the market

values of government bonds and other debt instruments. The increasing Debt

to GDP ratio in the last 2 years is worrisome for the economy.

8. Unemployment rates


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The unemployment rates had a massive increase from 2011 to 2012, from 13% to

about 19%. The rise in unemployment rates have led to civil unrest in the country

and have resulted in political instability.


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7.Doing Business in Tunisia

Tunisia is ranked 50th in the world in doing business rankings. The country is

classified as an upper middle income country. The ranking have changed from 45 in

2012 to 50 in 2013.

When comparing with the other countries, We can find that the country has a good

rank in comparison with other frontier nations and emerging economies. The

average ranking in the region Middle East and North Africa are is at 98.


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The Ease of starting a business shows how friendly the country is with respect to

starting a new business. In Tunisia,it can be seen that the overall ranking for

starting a business is at 66. In this, Trading across borders have the highest

ranking at 30 and resolving insolvency at 39. This is an indicator of the countries

policies in relation to trade and business processes. The factor Getting credit has a

rather low rank at 104. This is an indication of the difficulty in capital building for

a business. The infrastructure factors are pretty good, indicating a good

infrastructure facility in the country.


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Over the years, it can be seen that some factors have improved considerably while

others have been constant. In comparison with 2005, we can see from the abovediagram that getting credit and protecting investors have become much easier. The

overall ranking has also improved pretty well. However, some factors like enforcing

contracts and dealing with construction permits have stayed constant over the

years.


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8.SWOT analysis:

Strengths

Geographic location and its proximity to Europe Partner of European union

Trade agreements with EU, turkey and few Asian countries promote access to

the free markets.

Stable and sustained economic growth pattern.

Weakness

Unemployment

Political instability

Religious divide

Opportunities

Promotion of higher education leading to higher employment

Simplified procedures in place to attract foreign investments

Threats Unemployment

Competition from European and Asian countries in the textile sector.

Dependence on external funding for Current account deficits.

Terrorism


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9.Conclusion

Tunisia is a country of promise. Over the years, the development has been stable

and healthy. The stable political environment upto 2011 gave a strong base.

According to the world bank, Tunisia is the only country in the Northern African

region who have moved into the middle income region. The economic and political

history has shown the potential the country has in being an economic force to

reckon with. The country now boasts of an economy with over 2100 foreign firms

investing in Tunisian companies. The geographically strategic position and trade

relations with the Middle East as well as European Union ensure a bright future.

The government policies for the future cater to encourage FDI inflows, which

will boost the business environment of the country. Other priorities include

reducing unemployment rates and improving infrastructure. From an Investors

point of view, these factors ensure a good future for the country. The current

political instability is the only thing that is dragging the country down. With a new

constitution and some fresh faces in the governance, it is rest assured that the

country is on the path to being the Economic hub of Africa.


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References

http://www.tradingeconomics.com/tunisia/indicators

https://www.cia.gov/library/publications/the-world-factbook/geos/ts.html

http://repository.upenn.edu/cgi/viewcontent.cgi?article=1141&context=curej

http://www.tunisia-live.net/2013/03/21/a-timeline-of-tunisias-economic-policies-since-

independence/

http://www.newsecuritybeat.org/2011/01/tunisias-shot-at-democracy-what-

demographics-and-recent-history-tell-us/#.UlwsxVDPGhs

http://en.wikipedia.org/wiki/Demographics_of_Tunisia

http://www.indexmundi.com/tunisia/demographics_profile.html

http://www.infoplease.com/country/tunisia.html?pageno=3

http://www.bbc.co.uk/news/world-africa-14107553

http://www.tradingeconomics.com/tunisia/indicators

http://en.wikipedia.org/wiki/Culture_of_Tunisia

http://en.wikipedia.org/wiki/Politics_of_Tunisia
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Section2 Group 18 Tunisia.pdf

Documents

Transcript of Section2 Group 18 Tunisia.pdf