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The Unfinished Revolution : Bringing Opportunity, Good Jobs and Greater Wealth to All Tunisians

ACTIVE LABOR ACTIVE LABOR MARKET ACTIVE LABOR MARKET POLICIES ACTIVE LABOR MARKET PROGRAMS ADULT WORKERS AGGREGATE EMPLOYMENT AGGREGATE UNEMPLOYMENT COLLECTIVE AGREEMENT COLLECTIVE AGREEMENTS CREATING JOBS CREATION OF JOBS DISMISSED WORKERS FINDING JOBS JOB CREATION JOB CREATION JOB CREATION RATES JOB DESTRUCTION JOB FLOWS JOB GENERATION JOB INSECURITY JOB LOSS JOB LOSSES JOB MARKET JOB OPPORTUNITIES JOB PROTECTION JOB SEARCH JOB SECURITY JOB SEEKERS JOB TRAINING JOB-SEARCH JOB-SEARCH ASSISTANCE JOB-SEEKERS JOBS JOBS CREATION JOBS CREATION JOBS CREATION JOBS CREATION JOBS CRISIS LABOR LAW LABOR FORCE LABOR MARKET LABOR MARKET INSTITUTIONS LABOR MARKET SEGMENTATION LABOR REGULATIONS LABOR MARKET LABOR MARKET REFORM LABOR MARKET LABOR MARKET REFORMS LABOR PRODUCTIVITY LABOR PRODUCTIVITY GROWTH LABOR STATISTICS LABOR CONTRACT LABOR COSTS LABOR DEMAND LABOR FORCE LABOR FORCE PARTICIPATION LABOR FORCE PARTICIPATION LABOR LEGISLATION LABOR MARKET LABOR MARKET OUTCOMES LABOR MARKET CONDITIONS LABOR MARKET INSTITUTIONS LABOR MARKET OUTCOMES LABOR MARKET POLICIES LABOR MARKET PROGRAMS LABOR MARKET REFORM LABOR MARKET REGULATIONS LABOR MARKET RIGIDITIES LABOR MARKET SEGMENTATION LABOR MARKETS LABOR MOBILITY LABOR PRODUCTIVITY LABOR PRODUCTIVITY GROWTH LABOR REGULATIONS LABOR SHARE LABORERS LOCAL JOBS LOCAL LABOR LOCAL LABOR MARKET LOCAL LABOR MARKET CONDITIONS LOSS OF JOB LOW- SKILLED JOBS NET JOB CREATION NEW JOBS ON-THE-JOB TRAINING PAYING JOBS PERMANENT JOB PUBLIC SECTOR JOBS PUBLIC SECTOR JOBS QUALITY OF JOBS QUALITY OF JOBS SKILLED LABOR SKILLED LABOR SKILLED JOBS SKILLED LABOR SKILLED WORKERS TEMPORARY WORKERS TRAINING CENTERS TRAINING COSTS TRAINING SYSTEM
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Washington, DC
Middle East and North Africa | Tunisia
2014-09-29T21:37:19Z | 2014-09-29T21:37:19Z | 2014-05-24

Until 2010 Tunisia appeared to be doing well and was heralded by the World Bank and the IMF as a role model for other developing countries, and the World Economic Forum repeatedly ranked Tunisia as the most competitive economy in Africa. Yet, the Tunisian model had serious flaws. Inadequate creation of jobs, notably for university graduates, and deep regional disparities were a source of increasing frustration across the country in the run up to the January 2011 Revolution. This development policy review shows that, in contrast to the façade often presented by the former regime, Tunisia's economic environment was and remains deeply deficient. The review highlights an economy that has remained frozen in low-value added activities and where firms are stagnating in terms of productivity and jobs creation. The review argues that Tunisian prosperity has been held back by policies that have reduced the country s overall economic performance. This poor performance results from extensive barriers to entry and market restrictions coupled with a heavy business regulations and a poorly functioning financial system, have resulted in economic stagnation. Economic policies have exacerbated cronyism and rent-seeking, allowing under-performing firms to survive, regardless of their productivity. in order to fulfill its economic potential, Tunisia needs to create a level playing field by opening up the economy and removing Tunisia's three dualisms, namely the onshore-offshore division, the dichotomy between the coast and the interior, and the segmentation of the labor market. A strong social policy is also necessary, of course, and should be designed to accompany private sector-led growth. Tunisia can capitalize on a strong competitive advantage to export wage-intensive goods, expand its export of services, and unleash the potential of agriculture, to the benefit of small businesses, young graduates, and farmers in Tunisia's long-neglected interior regions. Realizing these benefits will require improving the investment climate, rationalizing regulations, and developing more equitable development policies that benefit all of Tunisia's regions. The Unfinished Revolution is a challenge for policymakers to rethink Tunisia's economic development model, to question existing assumptions, and to dare to think big about policy reforms which can accelerate growth and shared prosperity, create quality jobs and promote regional development.

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