The triumph of pragmatism
In eleven short years under the leadership of President Zine El Abidine Ben Ali, Tunisia has been transformed
into a modern economic powerhouse. It is now poised to join the ranks of the developed world. Survey written
by Anver Versi
Tunisia, sandwiched between its physically massive neighbours, Libya and Algeria, may be small in size but it
packs a more powerful economic punch than any other country in the southern Mediterranean. This north-African country,
once the seat of arguably the greatest city-state of antiquity, Carthage, is once again poised to become the hub
around which the trade of three worlds, European, Arab and African, will revolve.
By the year 2008, barring unforeseeable obstacles, Tunisia will have moved up its weight class from 'emerging
economy' status to 'developed nation' status. It will open its borders to free trade with the increasing powerful
European Union block. This will give it access to a high-income market of over 350m people.
Tunisia's remarkable transformation from a lower middle-income country into an economic dynamo has taken just
10 years. What makes Tunisia's success even more impressive is that it does not possess any valuable natural resource
such as oil or minerals; and half the country consists of desert. Unlike South East Asian economies, it does not
have a large industrious population to give it a competitive edge and yet it comes second to Mauritius as the most
competitive country in Africa. Over 30% of the population is under 16 years of age, yet the per capita income,
at $2,224, with a purchasing power parity of nearly $5,100, is one of the highest in Africa. Some 80% of households
own their own homes and the middle class forms 60% of the population. Few African or Arab countries have so many
women in such high professional positions as does Tunisia.
Yet, a little more than a decade ago, the idea that Tunisia could make such strides in so many areas in such
a short time would have been laughed out of court.
The country's first President, Habib Bourguiba, who set the foundations for a modern Tunisian state, was 80
years old and his mental faculties were failing him. The entire region was being rocked by conflicting ideologies
and swept by fundamentalist winds. The government of the day decided to take a pragmatic course and Habib Bourguiba
was retired. Zine El Abidine Ben Ali, then the Prime Minister and constitutionally-ordained successor, took over
the Presidency on 7 November 1987. This is referred to even today in Tunisia as the "the great change",
the start of new era of modernity and prosperity.
President Ben Ali's first priority was to create an open society. He gathered technocrats, professionals and
politicians into his cabinet. Decision making came via a pyramidical structure with the people forming the base,
experts and the government outlining and executing policies. "The prime factor in any process of development,
the condition for its success, is the human factor," says President Ben Ali. "We have therefore made
sure that the Tunisian citizen is at once the author and the beneficiary of the general effort of social and economic
development, as well as the source of support."
Perhaps Habib Bourguiba's greatest legacy was to completely change the status of women and set them on the road
to total emancipation. After 1987, a series of constitutional amendments to divorce, professional, inheritance,
social security and home ownership laws has made women equal partners with men and has led to a highly enterprising
class of women professionals and heads of business. Education is mandatory for all boys and girls to the age of
16.
The other pillars of policy included reducing income disparities without discouraging the entrepreneurial class,
raising the national income levels, developing a highly-qualified workforce and making the entire economy and administration
efficient and competitive.
This is still very much the case today and explains the importance given to the National Solidarity Fund aimed
at marginalised groups, the allocation of 20% of the budget to education (one of the highest in the world); the
plethora of training and retraining programmes, the free access to basic health facilities, the zeal over environmental
issues and the careful husbanding of the economy.
Compulsory schooling and a large number of institutions of higher learning and training have produced the best
qualified labour force not only in the whole of Africa but also in the southern Mediterranean. Per capita income
has leap-frogged from $30 in 1956 to $2,226 in 1977. Poverty levels have been hammered down from 33% in 1967 to
6.2% in 1997. Life expectancy has risen from 50 years in 1956 to 71.3 years now and infant mortality has dropped
from 60 to 30 per thousand during the same period. The population growth rate of 1.6% is the lowest in Africa and
one of the lowest in the developing world.
All this has been made possible by a steady economic growth of around 5.7% since 1987, peaking at 8.6% in 1992.
The aim now is to reach and maintain a growth of around 6% per annum over the next decade.
What is the secret of Tunisia's success?
"Pragmatism and the development of our people," says President Zine El Abidine Ben Ali. The nation's
concept of basic human rights consists of ensuring that all citizens have access to food, clean water, health facilities,
education and the opportunity to fully realise their potential. The quality of its human resource is Tunisia's
most potent tool.
It is this confidence in the capabilities of its people that encouraged Tunisia to become the first country
in the southern Mediterranean to sign an association agreement with the European Union (EU) in 1995. The agreement
became effective in 1998 and will lead to a free trade zone for industrialised goods by the year 2008. This is
a risky undertaking because if the Tunisian industrial sector, which currently contributes over 50% of exports,
fails to reach European standards by that date, European imports could swamp the country and destroy its industrial
base.
But Tunisia is facing the future with a well-calculated confidence. "The agreement means that Tunisia must
raise itself to the level of the European economies in order to acquire the necessary competitiveness and vitality.
This implies an indispensable upgrading of all sectors of the economy," says President Ben Ali. "What
is necessary above all is a new mindset with competitiveness as a major concern, that of an economy geared essentially
towards production and export," he adds.
The upgrading is already in full swing with the state providing subsidies and support to major companies in
an effort to modernise and streamline the productive, distributive and administrative functions.
The 'mindset' change, which is cultural and regarded as by far the most difficult to achieve for any society,
is already evident in the streets and offices of Tunisia's major towns. The work ethic has become paramount but
without sacrificing the traditional Tunisian friendliness and hospitality. Schools are being computerised and virtually
everybody you meet is talking about the internet. Tunis, the capital, is sparkling - thanks to an aggressive environment
friendly campaign; the roads, especially the motorways, are a joy to drive on and there are telephone and postal
links to virtually every corner of the country.
Moiz, who works as a chauffeur, says he missed out on some schooling because "in those days, our parents
did not place much importance on learning." Nevertheless, he is fully aware of Tunisia's date with destiny
and takes great pride in pointing out its landmarks. There is not much fear that his own children will miss schooling
because primary education is compulsory. "The children are teaching us now," he laughs. "They know
things we could not even dream about."
By 2008, these children and others who preceded them will form the bulk of the workforce. They will be fluent
in French, Arabic and very likely, English. They will be perfectly at home with computers and all other forms of
electronic multimedia. They will have taken Western output levels for granted. They will be grounded in their rich
historical heritage and will therefore be able to assimilate and adapt new ideas with the ease that comes from
self-confidence. They will be able to function as comfortably in the European world as they will in the Arab and
African worlds. Tunisia, as it did when Carthage was in its pomp, will once again be the axis around which the
African, Arab and European worlds rotate.
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