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The Tunisian Economy and the
Democratic Transition
Zouhair Ben Larbi, Sami Ben Mansour (Tunisia)




The Economic Implications of the Arab Spring : Opportunities
and Challenges for Free Markets Policies
Beirut (Lebanon), October 19 to 22, 2011
The tunisian economy and the democratic transition
Tunisian Revolution : How everything started ..


 An    unemployed young man with a vegetable
    trolley sends Ben Ali to KSA without a trolley

 Popular   revolution unifying all currents
    under a unique motto : Freedom & Dignity




2
The tunisian economy and the democratic transition
Obstacles to the Private initiative and
Investment
 Predation   Economy

 Mafia   Phenomena

 Nepotism


 Failure   to comply with law

 Unpredictable    Judiciary system

3
The tunisian economy and the democratic transition
Obstacles to private initiative and investment
(2)

   Endemic corruption within public administration and
    business

   Unequal development

   Substantial bureaucracy

   General Business Climate was viciated

   200 000 job opportunities lost between 1995-2010
4
The tunisian economy and the democratic transition
Economic transition

 Entrepreneurship     stand by

 Stagnation    & contaction of the economic
    activity

 Budget   deficit + Commercial exchange
    overdraft

 Decrease     of :   - Production
                      - Investment
5
                      - Currency reserve
The tunisian economy and the democratic transition
Development conditions of entrepreneurship
in the new Tunisian Democracy

 Private   companies are the N° 1 Job creator
 Economic    rehabilitation
 Integration   perspectives Tunisia / Libya
 Renewal    of the Patronat
 Encouragement    of domestic investment
 Economic development favorised by
  international financial institutions

6
The tunisian economy and the democratic transition
23 october : New Constitution to build-up
Democraty

A    democratic state : Transparency
A    state under the rule of law : clear rules and
    an independant justice
 Fight   against corruption
 End   of the grip of the Mafias on the
    economy
 Liberation   of private initiative

7
References
 Baccar    Gherib, Ayssen Makni, « Economie
    politique de la transition démocratique »,
    Observatoire tunisien de la transition
    démocratique, October 2011

«    Democratic Transition / défis socio-
    economic challenges : experiences
    international, success and retained
    outcome", International Round Table of the
    UNDP, June 3rd 2011
8

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The Tunisian Economy and the Democratic Transition

  • 1. The Tunisian Economy and the Democratic Transition Zouhair Ben Larbi, Sami Ben Mansour (Tunisia) The Economic Implications of the Arab Spring : Opportunities and Challenges for Free Markets Policies Beirut (Lebanon), October 19 to 22, 2011
  • 2. The tunisian economy and the democratic transition Tunisian Revolution : How everything started ..  An unemployed young man with a vegetable trolley sends Ben Ali to KSA without a trolley  Popular revolution unifying all currents under a unique motto : Freedom & Dignity 2
  • 3. The tunisian economy and the democratic transition Obstacles to the Private initiative and Investment  Predation Economy  Mafia Phenomena  Nepotism  Failure to comply with law  Unpredictable Judiciary system 3
  • 4. The tunisian economy and the democratic transition Obstacles to private initiative and investment (2)  Endemic corruption within public administration and business  Unequal development  Substantial bureaucracy  General Business Climate was viciated  200 000 job opportunities lost between 1995-2010 4
  • 5. The tunisian economy and the democratic transition Economic transition  Entrepreneurship stand by  Stagnation & contaction of the economic activity  Budget deficit + Commercial exchange overdraft  Decrease of : - Production - Investment 5 - Currency reserve
  • 6. The tunisian economy and the democratic transition Development conditions of entrepreneurship in the new Tunisian Democracy  Private companies are the N° 1 Job creator  Economic rehabilitation  Integration perspectives Tunisia / Libya  Renewal of the Patronat  Encouragement of domestic investment  Economic development favorised by international financial institutions 6
  • 7. The tunisian economy and the democratic transition 23 october : New Constitution to build-up Democraty A democratic state : Transparency A state under the rule of law : clear rules and an independant justice  Fight against corruption  End of the grip of the Mafias on the economy  Liberation of private initiative 7
  • 8. References  Baccar Gherib, Ayssen Makni, « Economie politique de la transition démocratique », Observatoire tunisien de la transition démocratique, October 2011 « Democratic Transition / défis socio- economic challenges : experiences international, success and retained outcome", International Round Table of the UNDP, June 3rd 2011 8