Investment Climate Assessment : Enterprises' Perception in Post Revolution Tunisia
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Washington, DC
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Located in the heart of the North
African coastline, adjacent to vital shipping channels
connecting Europe and Asia, Tunisia has long been a regional
economic influence in the Middle East and North Africa.
Although socialist policies dominated the Tunisian economy
throughout the latter half of the 20th century, Tunisia has
re-focused its economic strategy on key indicators such as
foreign investment, domestic job creation, exports and
tourism. These have become the backbone of the Tunisian
economy and have helped strengthen relationships with
primary trading partners in the European Union. Exports such
as textiles, computer arts and petrochemicals now account
for a significant portion of the Tunisian economy. This
liberal economic development strategy created years of
stable annual growth and improved living standards well into
the 2000s. However, this growth was unequal due to a culture
of corruption and cronyism that reached its height during
the era of former President Zine el Abidine Ben Ali from
1987 through 2011. Years of progressive economic growth were
stymied by rising unemployment and government waste.
Discontent for the Ben Ali government boiled over in January
2011 with a revolution to overthrow the president, ruling
party and Parliament. In the ensuing months of uncertainty,
declines in tourism and investment contributed to an overall
economic decline that lasted throughout much of the year.
The political climate also remained uncertain as Tunisians
worked to form a new coalition government and transition
into a democratic system.
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