Are Tunisia’s Leaders Prepared to Address the Economic Challenges Ahead?
Following the announcement of the composition of the new government, Tunisia’s leaders finally begin to shift their attention away from political jockeying, and toward the country’s most pressing issue: The economy.
Today, Tunisia’s newly elected Interim President, Moncef Marzouki, held a press conference with the Tunisian Union of Industry, Commerce and Handcraft (UTICA), to shed light on the various factors contributing to Tunisia’s economic predicament. “Our new democratic system is doomed to failure, if we do not succeed in restarting Tunisia’s economic engine. People want freedom, but also want bread”, stated Marzouki.
President of UTICA, Wided Bouchamaoui, explained that current domestic unrest has exacerbated Tunisia’s delicate economic situation. “Random strikes and sit-ins have led to the economic instability our country now faces. These disturbances have disabled a number of corporations and have shaken the confidence of domestic and foreign investors.”
In a recent interview, Bouchamaoui expressed fears that Tunisia’s primary supplier of natural gas, British Gas, could potentially reconsider its investment in the Tunisian economy in light of the volatile economic environment. “Foreign investors do not adjust well to instability. They only invest if security is assured,” she said.
Concerns regarding economic insecurity as a byproduct of unrest have been aggravated with the recent announcement of the permanent closure of the Yazaki plant in Om Larayes, Gafsa. The shutdown was purportedly caused by disruptions in production due to recent strikes amongst the work force.
Recent reports have reiterated the severity of the economic slump the country is currently enduring on the national level. Foreign investment in Tunisia dropped by a substantial 20.5% during the past 11 months. Additionally, 153 foreign ventures have ceased their activities in the country over the course of last year. To make matters worse, 1.13 million TD have been lost from the tourism sector due to a drop in profits by 33.7% between January and December of 2011. These figures highlight the magnitude of the deficit in foreign confidence regarding the Tunisian economy.
In his recent address to the Constituent Assembly, Hamadi Jebali gave recognition to many of these pervasive economic concerns. In his speech, he touched upon the need to prioritize investment in Tunisia’s isolated regions, many of which were economically marginalized throughout the previous administration. He proposed expanding the public sector by 20-25 thousand positions, as a means of alleviating the pressure of Tunisia’s widespread unemployment. Jebali also suggested the use of micro loans to integrate Tunisian youth into the job market.
However, in spite of his assurances, Jebali provided few tangible solutions to overcome the current economic obstacles Tunisians continue to face.
As the winter cold settles in, and disturbances in production limit the distribution of essential goods (food and gas) to those in need, all eyes are now turned toward Tunisia’s leaders to deliver the country from economic paralysis and to address the issues at the core of Tunisia’s Revolution.
Farah Samti Written in collaboration with Charles Baeder
http://www.tunisia-live.net/2011/12/23/are-tunisias-leaders-prepared-to-address-the-economic-challenges-ahead/
Today, Tunisia’s newly elected Interim President, Moncef Marzouki, held a press conference with the Tunisian Union of Industry, Commerce and Handcraft (UTICA), to shed light on the various factors contributing to Tunisia’s economic predicament. “Our new democratic system is doomed to failure, if we do not succeed in restarting Tunisia’s economic engine. People want freedom, but also want bread”, stated Marzouki.
President of UTICA, Wided Bouchamaoui, explained that current domestic unrest has exacerbated Tunisia’s delicate economic situation. “Random strikes and sit-ins have led to the economic instability our country now faces. These disturbances have disabled a number of corporations and have shaken the confidence of domestic and foreign investors.”
In a recent interview, Bouchamaoui expressed fears that Tunisia’s primary supplier of natural gas, British Gas, could potentially reconsider its investment in the Tunisian economy in light of the volatile economic environment. “Foreign investors do not adjust well to instability. They only invest if security is assured,” she said.
Concerns regarding economic insecurity as a byproduct of unrest have been aggravated with the recent announcement of the permanent closure of the Yazaki plant in Om Larayes, Gafsa. The shutdown was purportedly caused by disruptions in production due to recent strikes amongst the work force.
Recent reports have reiterated the severity of the economic slump the country is currently enduring on the national level. Foreign investment in Tunisia dropped by a substantial 20.5% during the past 11 months. Additionally, 153 foreign ventures have ceased their activities in the country over the course of last year. To make matters worse, 1.13 million TD have been lost from the tourism sector due to a drop in profits by 33.7% between January and December of 2011. These figures highlight the magnitude of the deficit in foreign confidence regarding the Tunisian economy.
In his recent address to the Constituent Assembly, Hamadi Jebali gave recognition to many of these pervasive economic concerns. In his speech, he touched upon the need to prioritize investment in Tunisia’s isolated regions, many of which were economically marginalized throughout the previous administration. He proposed expanding the public sector by 20-25 thousand positions, as a means of alleviating the pressure of Tunisia’s widespread unemployment. Jebali also suggested the use of micro loans to integrate Tunisian youth into the job market.
However, in spite of his assurances, Jebali provided few tangible solutions to overcome the current economic obstacles Tunisians continue to face.
As the winter cold settles in, and disturbances in production limit the distribution of essential goods (food and gas) to those in need, all eyes are now turned toward Tunisia’s leaders to deliver the country from economic paralysis and to address the issues at the core of Tunisia’s Revolution.
Farah Samti Written in collaboration with Charles Baeder
http://www.tunisia-live.net/2011/12/23/are-tunisias-leaders-prepared-to-address-the-economic-challenges-ahead/
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