Survey written by Anver Versi

Tunisia celebrates 45 years of independence on March 20. This is a brief span of time in terms of the age of a 3,000 year old civilisation; but in terms of achievement, those 45 years have surely been the most dynamic of any century. Over the last 45 years, Tunisia has transformed itself from the French colonial backwater it had been reduced to, into the most modern state in Africa.

The Africa Competitiveness Report, published recently by the World Economic Forum, puts Tunisia at the top of the competitive league table, above Mauritius, Botswana and 21 other African countries.

This is a remarkable achievement for a country which has no oil or, for that matter, significant natural resources. Half the country is desert and the population is only nine million strong. So, why has Tunisia succeeded where so many others, on the continent and in the rest of the developing world, failed? The secret of Tunisia's success, according to President Zine El Abiddine Ben Ali, is that it placed its trust entirely on the resourcefulness of its people. "Our greatest natural asset," he says, "is our people." It is hardly surprising therefore that the World Economic Forum report also places Tunisia at the top of the human development league table.

Tunisia's success has made nonsense of the theory that emerging economies cannot make a go of it unless they have vital natural resources like oil, minerals or gemstones. In fact, there are several countries all over the continent which are richly endowed with natural resources but which still languish in poverty.

"Since we rely so heavily on human resources for our livelihood and prosperity as a nation, " says Prime Minister Mohamed Ghannouchi, "it is natural that we should take good care of our people and develop their potential to the full."

Taking good care of the people has translated into a dramatic rise in living standards. Some 70% of the population today are middle class home owners. Income per head has soared from US$30 in 1956 to US$2,138. All citizens, regardless of income, are eligible for healthcare cover. Life expectancy has increased from 50 years in 1956 to 70 years today - the highest in Africa. Poverty levels have been slashed down to a meagre 5%, lower than in many developed nations.

Development of human resources begins very early in life. Infant mortality, at less than 30 per 1,000 births is the lowest in Africa. There are 1,886 primary health centres to ensure that new borns and their mothers get all the attention they require.

Tunisia's allocation of 20% of the GDP to education is one of the highest in the world, let alone Africa. Education is free for all children and primary school enrollment now covers 95% of children. At independence in 1956, less than 5% of children attended school. Secondary school enrollment is today around 75%. According to the World Economic Forum report, the quality of education at both levels is the highest in Africa.

Tunisia's six universities produce around 155,000 graduates every year. A network of vocational training centres caters for around 60,000 trainees. There are numerous retraining and upgrading programmes for those in employment. In addition, several schemes, including unsecured loans from the National Solidarity Bank, give aspiring entrepreneurs that all important first start in business.

Tunisia also ranks very high in the number of internet users - with very cheap access available in schools, libraries and cyber-cafes. Computers have become part of everyday life - with a growing number of households owning their own equipment. Micro credit loans are available to people who want to purchase their own computers.

This is the bed-rock on which Tunisia has built its economic and social house. But all good intentions might have come to nothing without the sort of enlightened leadership the country has enjoyed through its 45 years of independence.

Habib Bourguiba, Tunisia's first President began the process of modernisation when he swept away several anachronistic laws and customs. He raised women from their traditional role as subservient to men and placed them at the heart of the nation’s economic and cultural life. He placed great emphasis on education and self reliance.

The upward momentum really gathered pace with The Change, when Ben Ali became President in 1987. The new leadership blew away the last vestiges of class distinction and old privilege that still persisted, ushering in a new era of pragmatic thinking and practical policies.

He wanted results, not excuses for why things were not working. In a few short months, he convinced the various political factions to pull together instead of pulling apart. He persuaded various leaders to stop wasting time and energy engaging in petty politics while there was a mountain of work to be done to build the economy.

He got the country's top brains and planners to work out all the details of a strategy that would catapult Tunisia from a low income Third World country into a high income modern state in record time. He made sure the policies were followed to the letter. If a strategy or tactic was seen not to work, he had no hesitation in ditching it for another.

The success of some of the schemes initiated by Tunisia, such as the 26-26 National Solidarity Fund against poverty and the 21-21 scheme against unemployment have gained such international renown that the UN wants to extend them to all developing countries of the world.

Under Ben Ali, Tunisia freed itself from the shackles of conformity. It was no longer prepared to blindly follow prescriptions from self-styled experts. The country would do whatever was required in order to achieve its goals. One of these was to ensure political stability but stamping down hard and early on destructive forces such as fundamentalism and all other forms of extremism. Tunisia, unlike so many other African nations, was not going to be turned into a football for various interested parties to kick around.

The results of this single-minded, pragmatic approach, Tunisia's top officials now admit, have been even more spectacular than they could ever have imagined. Growth has been sustained at around 5% per annum, inflation has been nailed to the floor, the currency has held its value for a decade and thousands of foreign companies have poured in. Today, Tunisia can bask in the glory of being accredited the most competitive country in Africa.

But the country's planners say there is still a long way to go before the dream is fully realised. They want to see an end to unemployment, they want to eradicate poverty and they want incomes to rise inexorably to match those of the developed world. By 2010, when an association agreement with the EU comes into effect, Tunisia wants its economy to be on par with that of Europe.

It is well on the way to getting there.

Africa's most competitive nation

Political stability, sound economic policies, a modern, developed infrastructure and a well qualified workforce have made Tunisia Africa's leading foreign direct investment destination. There are more than 1,800 foreign companies in Tunisia, including such household names as British Gas, Benetton, General Motors, Lee Cooper, Mitsubishi, Sony and Siemens.

In order to provide the investment world with a comprehensive evaluation of the competitiveness of African countries, Professor Klaus Schwab, president of the World Economic Forum at Davos and Professor Jeffrey Sachs, director of the International Development Centre at Harvard University, USA, commissioned The Africa Competitiveness Report which was released in January.

Sources include The World Bank, the IMF, the United Nations, and the Economist Intelligence Unit. Questionnaires were sent to 1,800 foreign companies in 24 African states whose combined GDP accounts for 80% of Africa’s total GDP. The study looked at 70 criteria divided into six categories. In addition to information about investment climate and competitiveness, the report also examined the state of human development in each country.

The overall ranking was based on a combination of both competitiveness and human development rankings. Following are excerpts from the report:

Degree of Openness

1) Foreign Trade: Degree of liberalisation (quotas, licences, foreign exchange). Tunisia is among the top 10 countries. Mauritius is the most open.

2) Import quotas: Ease of obtaining import quotas for equipment and spare parts: Tunisia comes first, followed by Botswana and Lesotho.

3) Foreign exchange currencies: Ease of obtaining foreign exchange for imports: There are no problems in five countries: Tunisia, Botswana, Senegal, Morocco and Mauritius.

4) Priority given to exports: Strong priority for exports exists in Tunisia, Cote d’Ivoire, Mauritius, Morocco, Botswana, Ethiopia and Senegal.

5) Export guarantees and taxes: Top performers are: Tunisia, Botswana, Namibia and Morocco.

6) Local currency value: The value of local currency is found most adequate in Tunisia, Senegal (Cfa), Botswana, Namibia.

7) Political stability: Political stability and most favourable climate for expanding enterprises exists in Tunisia, Senegal, Botswana, Namibia, Tanzania, Madagascar, South Africa.

8) Exchange rate stability: Investors rated reliability and consistency of policy most highly in Tunisia, Botswana, Morocco, Mozambique and Tanzania.

Good Governance

1) Labour regulations: The most precise labour regulations exist in Tunisia, Botswana, Namibia, Mauritius and Morocco.

2) Application of legislation: The most rigorous application of legislation occurs in Tunisia, Botswana, Namibia, Mauritius and South Africa.

3) Degree of tax evasion: There is no tax evasion in Tunisia, Botswana, Mauritius and Namibia.

4) Corruption: Corruption is negligible in only two countries - Tunisia and Botswana.

5) State support for ailing companies: Enterprises which fall into difficulties receive the most state support in Tunisia, Egypt, Botswana.

6) Dependence on state: Degree to which companies depend on the state - Least dependence in Tunisia, Morocco and Egypt.

Finances

1) Rate of investment: Highest rate of investment at 25% of GDP in Lesotho, Burkina, Mauritius, Tunisia and Botswana;

2) National savings: Botswana, Tunisia, Mauritius and Cameroon.

3) Confidence in the banking system: Highest confidence in Tunisia, Egypt, Botswana, South Africa, Mauritius and Morocco.

4) Importance of personal relations in business transactions: Strongest in Tunisia, Ethiopia, Namibia and Cote d’Ivoire.

Infrastructure

1) Tarred roads: Over 80% in Tunisia, Mauritius, and Egypt.

2) Quality of roads: The best roads are in Namibia, Botswana, Tunisia, Egypt and Mauritius.

3) Telephone density: Mauritius, with 195 lines per 1,000 inhabitants takes the lead, followed by South Africa with 107 lines and Tunisia with 70.

4) Access to the internet: Very good access is provided in Namibia, Tunisia, South Africa, Mauritius and Morocco.

5) Clearing period for goods: Goods are cleared in five to 10 days in Morocco, Tunisia, Egypt, South Africa and Botswana.

6) Telephone charges: Lowest charges apply in Egypt, Tunisia and Mauritius.

7) Air transport: Best air transport performance occurs in Tunisia, Egypt, Ethiopia, South Africa, Namibia and Botswana.

8) Quality of air transport: Only three countries provide high quality air transport: Tunisia, South Africa and Egypt.

Population and Labour

1) Life expectancy: 70 years in Tunisia and Mauritius.

2) Infant mortality: Below 30 per 1,000 in Tunisia and Mauritius.

3) Primary schooling: Over 95% enrollment in Tunisia, South Africa and Malawi.

4) Secondary schooling: Only one country, South Africa, has reached 95% enrollment. Enrollment is 75% in Tunisia and Egypt, 68% in Mauritius.

5) Quality of primary and secondary education: Tunisia scores the highest (5.18 and 5.27 out of a maximum 6 points) in both categories.

6) Absenteeism from work: Negligable in Tunisia, Morocco, South Africa and Mauritius; very marked in Zambia and Malawi.

7) Labour days lost to strikes: Negligable in Ethiopia, Egypt, Tunisia and Botswana

Institutions

1) Legal status of contracts: Contracts receive the greatest legal respect and fairest arbitration in only two countries: Tunisia and Botswana.

2) Impartiality of the judicial system: The highest marks were given to Botswana, Namibia, Egypt, Tunisia, South Africa and Mauritius.

3) Execution of judicial directives: Court orders are carried out most rapidly in Tunisia, Botswana, Namibia, Egypt and Mauritius.

4) Quality, integrity and efficiency of security forces: Good in Tunisia, Egypt and Morocco.

5) Impact of organised crime on business: Insignificant in Morocco and Tunisia.

6) Would the civil service function in the event of political instability?: Most certainly in the case of Tunisia, followed by Botswana and Morocco.


Ranking: Competitiveness — Tunisia (1); Human Development - Tunisia (2). Overall ranking in Africa - Tunisia (1).

Fresh hope as Tunisia chairs UN Security Council

Tunisia, which has been a member of the UN Security Council since October 1999, began its period as Chair of this all-important UN body on February 1, raising hopes, particularly in the Middle East and Africa, of a more effective search for peace and justice.

Outlining Tunisia’s role in this key international post, President Ben Ali said his country was Òcommitted to making the values of law and justice prevail in accordance with the noble principles set out in the UN Charter. Tunisia will continue to work actively in order to contain the hotbeds of tension and conflict in the world and to make dialogue and consensus prevail in the settlement of the problems posed.”

The Minister for Foreign Affairs, Habib Ben Yahia has been touring a number of Western capitals to gather opinion and coordinate the work of the Security Council.

Tunisia's chairmanship of the Security Council has been widely welcomed. UN Secretary-General Kofi Annan said ÒWe very much count on Tunisian diplomacy for the settlement of the questions to be submitted to the Security Council.” He also paid tribute to the Tunisian approach, initiated by Ben Ali, in resolving international conflicts and combating poverty on a global scale. (International Solidarity, inspired by the Tunisian model).

Ismat Adbul Magid, Secretary-general of the League of Arab States, also expressed his deep satisfaction. ÒWe are very optimistic about the role Tunisia will play in the support for Arab, more particularly, Palestinian causes,” he said.

Over the years, Tunisia has earned an excellent reputation world-wide as both a mediator in conflict resolution and the stance it has taken against poverty and the loss of human dignity in underdeveloped areas of the world.

It has been involved in several peace-keeping operations as part of the Blue Berets operations in Cambodia, Rwanda, Bosnia, Somalia, Kosovo and other conflict areas.

Tunisia's diplomatic role in the Arab and Islamic spheres has become crucial. Most recently, several Tunisian proposals over the Palestinian question were adopted at an extraordinary summit of Arab countries in Egypt. It is expected that during Tunisia's chairmanship of the Security Council, many of these far-reaching proposals will become effective.

On the African continent itself, Tunisia serves not only a model of success for others to follow, but also as a catalyst for new approaches to social and economic problems.

Tunisia is rapidly becoming the hub around which the Mediterranean basin resolves. Trade, cultural and other relations with Mediterranean countries are intensifying. In November 2001, Tunisia will become the first country in the region to host the Mediterranean Games twice.

On the wider international scale, Tunisia has been campaigning vigorously for more transparency and democracy within the decision making structures of the UN. It wants greater emphasis on the aspirations and interests of the developing world and has proposed that the Security Council should be expanded to include representatives from all regions of the world.

Tunisia's chairmanship of the Security Council promise plenty of exciting new ventures, particularly for the developing world - and a genuine expectation that a number of conflicts will be resolved.

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