Publication: The Unfinished Revolution : Bringing Opportunity, Good Jobs and Greater Wealth to All Tunisians
Loading...
Files in English
2,041 downloads
1,435 downloads
343 downloads
893 downloads
Published
2014-05-24
ISSN
Date
2014-09-29
Author(s)
Editor(s)
Abstract
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.
Link to Data Set
Citation
“World Bank. 2014. The Unfinished Revolution : Bringing Opportunity, Good Jobs and Greater Wealth to All Tunisians. © http://hdl.handle.net/10986/20267 License: CC BY 3.0 IGO.”
Digital Object Identifier
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Youth Employment : A Human Development Agenda for the Next Decade(World Bank, Washington, DC, 2013-06)This paper reviews the main challenges facing countries in attempting to improve labor market outcomes among youth, focusing on the issues that became starkly visible during the recent financial crisis. In order to better identify and set up human development interventions, the paper proposes an agenda that focuses on three areas: (1) improving the understanding of the causes and consequences of poor labor market outcomes for youth; (2) continuing to learn from the evaluation of pilots and programs that aim to promote productive employment among young people; and (3) addressing implementation issues which frequently overwhelm the best designs. The paper utilizes research on youth employment to take stock of youth labor market outcomes across regions, focusing on inactivity, unemployment, and employment indicators. A review of what is known about current interventions, including those that appear in the youth employment Inventory database of programs, provides the basis for determining the efficacy of five categories of intervention: (i) skills training (including vocational training, on-the-job-training programs, literacy and numeracy programs, second-chance and equivalency programs, and soft-skills programs); (ii) entrepreneurship promotion (financial assistance, technical assistance, and entrepreneurship training); (iii) subsidized employment (including wage subsidy programs, public works, and public/community service programs); (iv) employment services (including search assistance and access to labor market information, job counseling and placement services, and financial assistance for job search); and (v) reforms to labor market regulation (including anti-discrimination legislation) training programs, wage subsidies. Finally, the paper proposes an agenda for research and policy analysis in the area of human development that is expected to help both deepen the understanding of youth employment issues and improve the selection, design, and implementation of youth employment programs.Publication Labor Policy to Promote Good Jobs in Tunisia : Revisiting Labor Regulation, Social Security, and Active Labor Market Programs(Washington, DC: World Bank, 2015)Tunisians are striving for the opportunity to realize their potential and aspirations in a country that is rich in both human and physical capital, but whose recent economic growth has failed to create enough opportunities in the form of good and productive jobs. This report highlights the main barriers that hinder the Tunisian labor market from providing income, protection, and prosperity to its citizens and proposes a set of labor policies that could facilitate the creation of better, more inclusive, and more productive jobs. The weak economic performance and insufficient and low-quality job creation in Tunisia is primarily the result of an economic environment permeated by distortions, barriers to competition, and excessive red tape, including in the labor market. This has resulted in the creation of a insufficient number of jobs, especially in the formal sector. To change this situation, policy makers need to address five strategic directives that can promote long-term inclusive growth and formality: foster competition; realign incentives, pay, and benefit packages in the public sector; move toward labor regulations that promote labor mobility and provide support to workers in periods of transition; enhance the productivity of informal workers through training and skills building; and reform existing social insurance systems and introduce new instruments to attain broader coverage.Publication Romania - Functional Review : Labor and Social Protection Sector, Final Report, Volume 2(Washington, DC, 2011-06)The Government of Romania (GOR), in agreement with the European Commission (EC), requested functional reviews of the Romanian public administration through an independent advisory service with the World Bank. The general objective of this advisory service is to review the current situation of the Labor and Social Protection (L&SP) sector, assess its functioning and develop an action plan that the GOR can use over the short- to medium-term to strengthen its effectiveness in the public administration. In meeting this objective, the World Bank examined: (i) whether the policy goals and objectives of the Ministry of Labor and Social Protection (MoLFSP) and its agencies are clearly defined in measurable and achievable terms; (ii) whether the management systems, policies, staffing, and organizational structure are appropriate for them to meet their objectives; and (iii) whether factors external to the institutions that may impede their ability to meet their objectives. The report is organized into two volumes. Volume One summarizes the main findings and messages, presents priorities for reform, and suggests an action plan to carry out these priority reforms. Volume Two provides chapters with the background diagnostics, assessment and findings in depth, covering: Main Sector Features and Institutional Mapping; Ministry of Labor Family and Social Protection; Labor Market; Pensions; Social Assistance (Cash Transfers); Social Assistance Services; Information Management (cross-cutting)Publication Building Effective Employment Programs for Unemployed Youth in the Middle East and North Africa(Washington, DC: World Bank, 2013)This study surveys active labor market programs (ALMPs) in selected countries of the Middle East and North Africa (MENA) region, identifies key challenges to their effective and efficient delivery, and proposes a policy framework for reforming public service provision. This study draws on data collected through surveys administered to public social, employment, and education agencies in selected MENA countries to identify key constraints and options for reforming publicly provided employment programs. Recent political transitions arising from the Arab Spring have contributed to the deterioration of labor market outcomes in the MENA region. In this context, ALMPs could become an important policy lever to address some of the challenges facing labor markets. These include: joblessness, skills mismatches, lack of labor market mobility, large and expanding informal sector, and lack of formal employment networks. The study also provides specific details on the beneficiaries, targeting, and expenditures of ALMPs during this same period.Publication Climate Change Policies and Employment in Eastern Europe and Central Asia(World Bank, Washington, DC, 2012-12)This paper analyzes the differential impact of climate change policies on employment in Eastern Europe and Central Asia. In particular, the paper examines (i) how vulnerable labor markets are in Eastern European and Central Asian countries to future carbon regulation, and (ii) what countries can do to mitigate some of the potential negative effects of these regulatory changes on employment. In many aspects, the nature of the shock associated with climate regulation is similar to that associated with an increase in energy prices. Constraints on carbon emissions put a price on climate-damaging activities and make hydrocarbon-based energy production and consumption more expensive. As a result, firms in energy-intensive industries may react to higher energy prices by reducing production, which in turn would lead to lower employment. In the presence of frictions in labor markets, these sector shifts will cause resources to be unemployed, at least in the short term. Using principal component analysis, the paper finds that Eastern European and Central Asian countries vary greatly in their vulnerability and adaptability of employment to carbon regulation. Since the economy takes time to adjust, policy-makers will need to ensure that the incentives are there for new firms to emerge and employ workers, and that workers have the skills to respond to that demand. Moreover, governments have a role to play in ensuring that workers that are displaced have a proper safety net that will not only help in protecting their welfare, but will also allow workers to make more efficient labor market transitions.
Users also downloaded
Showing related downloaded files
No results found.