Introduction
This paper explores the economic development facing the African country of Tunisia , presenting the country’s current economic position and exploring a few key priorities for continued economic development. After a brief overview of the country’s economic strengths and weaknesses, the paper will turn to a discussion of the effects of agricultural productivity, food security concerns, and unemployment issues on the Tunisian economy and growth process, including a literature review of different economic opinions and policy options. The paper will conclude with a policy recommendation regarding agricultural research development.
Economic Development at a Glance
Overall, the Tunisian economy is fairly strong. It is the most competitive country in Africa, outstripping even South Africa in this measure (World Economic Forum, pp. 9). An efficiency-driven economy, Tunisia has reached Stage 2 of development as categorized by the World Bank, putting it at the same level as Brazil (ibid, pp. 8). The country is ranked in the upper quartile worldwide for institutions, infrastructure, innovation, business sophistication, technological readiness, and education. It is ranked seventh for its science, technology, engineering, and math education (ibid, pp. 230-231. It has made great strides in human development, and is ranked as the seventh “top mover” worldwide for improvement in its HDI measure (sixth when countries are controlled for income) (UNDP, pp. 29). Yet the country does not fair nearly as well in regards to macroeconomic stability, financial market sophistication, or equality. The Human Development Report critiques Tunisia for low gender equality (though improvements have been seen in recent years), and when adjusted for inequality, its human development index drops from 0.683 to 0.511.
Unemployment is a huge issue in Tunisia, with rates between 13-15% over the past decade (World Bank). This, though the country has an incredible number of well-educated engineers and scientists. In a 1998 article, Rama argues that Tunisia’s unemployment rate seems so high in part because of the way unemployment has been measured and asserts that unemployment remains an issue for first-time job seekers only; however, more recent data from the World Economic Forum seems to indicate that rigidity within the market continues to be a major problem: The country is ranked 104th for labor market rigidity, indicating the difficult process of hiring, firing, and unlikelihood of flexible working hours.
Tunisia is home to over 10.4 million residents with a GDP of almost 40 billion (current USD). It has a GDP per capita of just over $8200 (PPP, in current international dollars). Barely a tenth of Tunisia’s gross domestic product comes from agriculture, a larger portion coming from its industries and the great majority from services (World Bank).
Agricultural Policy, the Rural-Urban Divide, and Unemployment
Todaro and Smith (2006, pp.424-442, 452-469) establish that Africa has a large proportion of its labor force in the agricultural sector without much to show for it; indeed, much of African agricultural cannot produce above subsistence levels. They point to the ever-expanding productivity gap between the agriculture and manufacturing sectors. Causal levers for this include impaired technology acquisition and inappropriate technologies, gender inequalities, and governmental priorities. Post-independence, African governments focused on rapid industrialization and urban employment. This was particularly successful in Tunisia, where manufacturing industries are highly modernized and competitive. But as a result, there has been a constant decline in per capita food production since the 1980s and increasing rural-urban divides. King (1999) strongly critiques the structural adjustment policies that seem to have worked so well for the country’s aggregate economic development but have caused great rural poverty.
This tension between rural agriculture and development is seen in Hill and Woodland’s 2003 discussion about the economic effects of various agricultural water management practices. They demonstrate that dam irrigation is used in Tunisia’s central region, which is generally more populous. The southern region, which faces more desertification than the north, uses traditional rainwater harvesting. The authors find that traditional practices, through community-shared knowledge, make agriculture in a risky environment less risky and minimize local economic imbalance. Environmentally, these traditional practices are more sustainable than dams, but dams smooth water supply availability and place Tunisia in the world market. Hill and Woodland assert that the integration of both techniques can maximize benefit to Tunisian society, suggesting that the Tunisian government should more fully utilize traditional techniques as a path to development in addition to dam and strictly “modern” practices. Steen emphasizes the importance of water management and its implications for land use and productivity (1998). Wellens (1997) demonstrates how various techniques for moisture measurement can be used to predict supply available for vegetation and agriculture, helpful in water management systems. In caring for the economic assets provided by Tunisia’s rangelands, Ksiksi, et al. advise greater education and government use of rangeland specialists, subsidies for rangeland farmers, and rural education about rangeland conservation and sustainable use (2002, pp. 21).
Floret and Hadjaj affirm the need for integration between equality-based socioeconomic development and agro-environmental programs. They argue that any governmental attempt to combat harmful agricultural techniques must create alternative economic options for traditional farmers; otherwise, the country’s unemployment concerns become exacerbated.
The above scholars have indicated Tunisia’s struggle with agricultural policy and suggested ways for the country to pay greater attention to its problems, but others see the government’s lack of heavy involvement in the agricultural sector as a key asset. Because the agricultural sector is “not very costly to the economy” (World Economic Forum, pp. 16), Tunisia has been able to focus on industrialization, STEM education, and competition. This has been key in the country’s relative success. This line of reasoning suggests that it is perhaps necessary for Tunisia to all but ignore the agricultural sector in order to continue advancing. However, others believe that Tunisia’s agricultural sector is perhaps too low-cost, with the true expense paid by all citizens ultimately through food insecurity, unemployment, and inequality.
Conclusion
Though there is some debate regarding the causal mechanisms of Tunisia’s current economic development and the role of agriculture, there is consensus that unemployment and inequality are major issues and must be addressed. Though the World Economic Forum cites Tunisia’s lack of focus on agricultural sector as a possible source of economic robustness; partner organizations including the World Bank are beginning to argue for increased attention to agricultural and rural investment. Regardless of whether or not marginalizing the rural populations and agricultural sector was necessary to economic growth, Tunisia’s economy is now strong enough to grant policymakers the “luxury” of focusing on inequality and urban-rural divide issues. Thanks to early investment in STEM education, Tunisia has a large supply of engineers and scientists, well-able to engage in research and development. Tunisia can make use of these engineers by creating agricultural R&D positions, focused on improving productivity, enhancing the country’s food security, and minimizing the rural-urban divide. The benefits of this policy are further outlined in the formal policy recommendation that closes this paper.
Policy Recommendation
To: Said Aydi, Minister of Employment and Vocational Training
CC: Rifaat Chaabouni, Minister of Higher Education and Scientific Research; and
Mokhtar Jallel, Minister of Agriculture and the Environment
Issue: Enhancing Employment through Agricultural Research
Problem Statement: Tunisia has faced 13-15% unemployment rates for over a decade. The country is ranked 7th for STEM education, but 104th for labor market rigidity. A high number of well-educated, intelligent citizens facing unemployment and great inequality is bound to cause resentment and unrest.
Additionally, Tunisia, along with the rest of North Africa, faces increased desertification and concern over both food and water security. Barely a fourth of the country’s land is now readily green. Food prices are increasing around the world, and Tunisia, with a high dependency on imports and weak financial resources to handle shocks, is particularly vulnerable (15). These concerns over food prices and enhancing STEM education continue to worsen the rural-urban divide: 75% of Tunisia’s poor live in rural areas (FoodSecFinal, 13).
Proposed Solution: To help combat both Tunisia’s unemployment predicament and food security concerns, Minister Aydi is advised to create an initiative on government-sponsored agricultural research, employing Tunisia’s engineers and scientists in exploration focused on agricultural productivity, biodiversity, anti-desertification, etc. This initiative, which should include involvement from the Ministry of Higher Education and Scientific Research and the Ministry of Agriculture and the Environment, can help to increase Tunisia’s self-sufficiency and food security, reduce Tunisian dependence on imports, diminish the rural-urban divide, and decrease the country’s unemployment levels. It will also serve to make Tunisia a regional leader in agricultural policy and innovation.
Implementation Challenges: Some scholars and policymakers have suggested that Tunisia’s current competitiveness is due in part to its low budget for internal agricultural policies. Embarking on a serious investment in the agricultural sector may create negative feedback and criticism from these parties. Tunisia also runs the risk of being accused of breaking international trade agreements and/or subsidizing home industries if the program is not implemented carefully. In response to these challenges, it is important to bear in mind that many industrialized and developed countries continue to heavily invest, and often even subsidize, their own agricultural sectors. Tunisia, if it approaches the issue carefully, will be able to use investment its agricultural sector as an asset rather than a burden.
Signed April 6, 2011, Rebecca L. Farnum
Works Cited
Floret, Christian and Mohamed S. Hadjej. 1997. “An Attempt to Combat Desertification in Tunisia.” Ambio 6(6): 366-368.
Hill, Jennifer and Wendy Woodland. 2003. “Contrasting Water Management Techniques in Tunisia: Towards Sustainable Agricultural Use.” The Geographic Journal 169(4): 342-357.
King, Stephen J. 1999. “Structural Adjustment and Rural Poverty in Tunisia.” Middle East Report 210: 41-43.
Ksiksi, Taoufik, Mohamed K. J. El-Shatnawi, and Salah Chouki. 2002. “Rangelands in Jordan and Tunisia.” Rangelands 24(3): 19-22.
Rama, Martin. 1998. “How Bad Is Unemployment in Tunisia? Assessing Labor Market Efficiency in a Developing Country.” The World Bank Research Observer 13(1): 59-77.
Steen Eliel. 1998. “Tunisia, a Mediterranean Country with Dry-Area Problems.” Ambio 27(3): 238-243.
Todaro, Michael P. and Stephen C. Smith. 2006. Economic Development, 9th edition. New York: Addison-Wesle.
United Nations Development Programme. “Human Development Report 2010.”
Wellens, Jane. 1997. “Rangeland Vegetation Dynamics and Moisture Availability in Tunisia: An Investigation Using Satellite and Meteorological Data.” Journal of Biogeography 24(6): 845-855.
World Bank. Tunisian Country Data. Accessed 4 April 2011 at
World Economic Forum, Africa Competitiveness Report 2009. Accessed 4 April 2011 at
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