NationMaster - Encyclopedia: Economy of Tunisia

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I n s e r t f o r m u l a h e r e

Insert non-formatted text hereTunisia is in the process of economic reform and liberalization after decades of heavy state direction and participation in the economy. Prudent economic and fiscal planning have resulted in moderate sustained growth for over a decade. Tunisia's economic growth historically has depended on oil, phosphates, agriculture, and tourism. The government's economic policies had limited success during the early years of independence. During the 1960s, a drive for collectivization caused unrest, and farm production fell sharply. Higher prices for phosphates and oil and growing revenues from tourism stimulated growth in the 1970s, but an emphasis on protectionism and import substitution led to inefficiencies. Tunisia received considerable economic assistance during this period from the United States and European and Arab countries and is one of the few developing countries in the region to have moved into the "middle income" category. In general, liberalization refers to a relaxation of previous government restrictions, usually in areas of social or economic policy. ... Pumpjack pumping an oil well near Sarnia, Ontario Petroleum (from Greek petra â€“ rock and elaion â€“ oil or Latin oleum â€“ oil ), crude oil, sometimes colloquially called black gold or Texas Tea, is a thick, dark brown or greenish liquid. ... In inorganic chemistry, a phosphate is a salt of phosphoric acid. ... Tourist redirects here; for the album by Athlete, see Tourist (album) Tourism is the act of travel for the purpose of recreation and business, and the provision of services for this act. ... Collective can also refer to the collective pitch flight control in helicopters A collective is a group of people who share or are motivated by at least one common issue or interest, or work together on a specific project(s) to achieve a common objective. ... Protectionism is the economic policy of protecting a nations manufacturing base from the effects of foreign competition (such as including Dumping) by means of high tariffs on imported goods, restrictive quotas, and other means of reducing importation. ... Import substitution industrialization also called ISI is a trade and economic policy based on the premise that a developing country should attempt to substitute products which it imports, mostly finished goods, with locally produced substitutes. ... Europe is conventionally considered one of the seven continents of Earth which, in this case, is more a cultural and political distinction than a physiographic one. ... The Arabs (Arabic: Ø¹Ø±Ø¨ ) are a large and heterogeneous ethnic group found throughout the Middle East and North Africa, originating in the Arabian Peninsula of southwest Asia. ...

An overvalued Tunisian dinar and a growing foreign debt sparked a foreign exchange crisis in the mid-1980s. In 1986, the government launched a structural adjustment program to liberalize prices, reduce tariffs, and reorient Tunisia toward a market economy. The dinar (ISO 4217 currency code TND) is the currency of Tunisia. ... ). External debt is the part of a countrys debt owed to creditors outside the country. ... Foreign exchange has several meanings: In telecommunications, Foreign exchange service is a type of network service. ... Structural adjustment is a term used by the International Monetary Fund (IMF) for the changes it recommends for developing countries. ... A tariff is a tax on imported goods. ... A market economy is an economic system in which goods and services are traded, with the price at which goods and services are exchanged being determined by trades that occur as a result of sellers asking prices matching buyers bid prices. ...

Tunisia's economic reform program has been lauded as a model by international financial institutions. The government has liberalized prices, reduced tariffs, lowered debt-service-to-exports and debt-to-GDP ratios, and extended the average maturity of its $10 billion foreign debt. Structural adjustment brought additional lending from the World Bank and other Western creditors. In 1990, Tunisia acceded to the General Agreement on Tariffs and Trade (GATT) and is a member of the World Trade Organization (WTO). Logo of the World Bank The International Bank for Reconstruction and Development (IBRD, in Romance languages: BIRD), better known as the World Bank, is an international organization whose original mission was to finance the reconstruction of nations devastated by WWII. Now, its mission has expanded to fight poverty by means... General Agreement on Tariffs and Trade (typically abbreviated GATT) functioned as the precursor to the World Trade Organization trading system. ... WTO Logo The World Trade Organization (WTO) is an international, multilateral organization, which sets the rules for the global trading system and resolves disputes between its member states, all of whom are signatories to its about 30 agreements. ...

In 1996 Tunisia entered into an "Association Agreement" with the European Union (EU) which removes tariff and other trade barriers on most goods by 2008. In conjunction with the Association Agreement, the EU is assisting the Tunisian government's Mise A Niveau (upgrading) program to enhance the productivity of Tunisian businesses and prepare for competition in the global marketplace. A trade barrier is general term that describes any government policy or regulation that restricts international trade, the barriers can take many forms, including: Import duties Import licenses Export licenses Quotas Tariffs Subsidies Non-tariff barriers to trade Most trade barriers work on the same principle: the imposition of some...

The government has totally or partially privatized about 160 state-owned enterprises since the privatization program was launched in 1987. Although the program is supported by the GATT, the government has had to move carefully to avoid mass firings. Unemployment continues to plague Tunisia's economy and is aggravated by a rapidly growing work force. An estimated 55% of the population is under the age of 25. Officially, 15% of the Tunisian work force is unemployed, but the real numbers of jobless or underemployed are higher. A state-owned enterprise (SOE) is an enterprise, often a corporation, owned by a government. ... Privatization (sometimes privatisation, denationalization, or, especially in India, disinvestment) is the process of transferring property, from public ownership to private ownership and/or transferring the management of a service or activity from the government to the private sector. ... In economics, a person who is able and willing to work at prevailing wage rate yet is unable to find a paying job is considered unemployed. ...

In 1992, Tunisia reentered the private international capital market for the first time in 6 years, securing a $10-million line of credit for balance-of-payments support. In January 2003 Standard & Poor's affirmed its investment grade credit ratings for Tunisia. The World Economic Forum 2002-03 ranked Tunisia 34th in the Global Competitiveness Index Ratings (two places behind South Africa, the continent's leader). In April 2002, Tunisia's first US dollar-denominated sovereign bond issue since 1997 raised $458 million, with maturity in 2012. The balance of payments (or BOP) is a measure of the payments that flow into and out from a particular country from and to other countries. ... Publications Standard & Poors publishes a weekly (48 times a year) stock market analysis newsletter called The Outlook, which is issued both in print and online to subscribers. ... The World Economic Forum (WEF) is a Geneva-based foundation whose annual meeting of chief executives of the worlds richest corporations, some national political leaders (presidents, prime ministers and others), and selected intellectuals and journalists, about 2000 people in all, is usually held in Davos, Switzerland. ... This article is about general United States currency. ... A sovereign bond is a bond issued by a national government denominated in a foreign currency. ...

The Bourse de Tunis is under the control of the state-run Financial Market Council and lists nearly 50 companies. The government offers substantial tax incentives to encourage companies to join the exchange, but expansion is still slow. The Bourse des Valeurs MobiliÃ¨res de Tunis or Bourse de Tunis is a stock exchange based in Tunis, Tunisia. ...

The Tunisian government adopted a unified investment code in 1993 to attract foreign capital. More than 1,600 export-oriented joint venture firms operate in Tunisia to take advantage of relatively low labor costs and preferential access to nearby European markets. Economic links are closest with European countries, which dominate Tunisia's trade. Tunisia's currency, the dinar, is not traded outside Tunisia. However, partial convertibility exists for bonafide commercial and investment transaction. Certain restrictions still limit operations carried out by Tunisian residents. A joint venture (often abbreviated JV, and sometimes known by the older term joint adventure) is a strategic alliance between two or more parties to undertake economic activity together. ...

Economic data

GDP - composition by sector:
agriculture: 13.9%
industry: 32.2%
services: 53.9% (2003 est.)

Household income or consumption by percentage share:
lowest 10%: 2.3%
highest 10%: 31.8% (1995)

Labor force - by occupation: services 55%, industry 23%, agriculture 22% (1995 est.)

Budget:
revenues: $6.101 billion
expenditures: $6.855 billion, including capital expenditures of $1.6 billion (2003 est.)

Industries: petroleum, mining (particularly phosphate and iron ore), tourism, textiles, footwear, food, beverages General Name, Symbol, Number iron, Fe, 26 Chemical series transition metals Group, Period, Block 8, 4, d Appearance lustrous metallic with a grayish tinge Atomic mass 55. ...

Electricity

Agriculture

Agriculture - products: olives, grain, dairy products, tomatoes, citrus fruit, beef, sugar beets, dates, almonds Binomial name Olea europaea L. The Olive (Olea europaea) is a species of small tree in the family Oleaceae, native to coastal areas of the eastern Mediterranean region, from Syria and the maritime parts of Asia Minor and northern Iran at the south end of the Caspian Sea. ... Cereal crops are mostly grasses cultivated for their edible seeds (actually a fruit called a caryopsis). ... Dairy farm near Oxford, New York A dairy is a facility for the extraction and processing of animal milk (mostly from cows, sometimes from buffalo, sheep or goats) and other farm animals, for human consumption. ... Binomial name Solanum lycopersicum L. The tomato (Solanum lycopersicum) is a plant in the Solanaceae or nightshade family, native to Central and South America, from Mexico to Peru. ... Species & major hybrids Species Citrus maxima - Pomelo Citrus medica - Citron Citrus reticulata - Mandarin & Tangerine Major hybrids Citrus x aurantifolia - Lime Citrus x aurantium - Bitter Orange Citrus x bergamia - Bergamot Citrus x hystrix - Kaffir Lime Citrus x ichangensis - Ichang Lemon Citrus x limon - Lemon Citrus x limonia - Rangpur Citrus x paradisi... Beef A salt beef with mustard bagel Beef is meat obtained from a bovine. ... Two sugar beets - the one on the left has been cultivated to be smoother than the traditional beet, so that it traps less soil. ... Binomial name Phoenix dactylifera L. The Date Palm Phoenix dactylifera is a palm, extensively cultivated for its edible fruit. ... Binomial name Prunus dulcis (Mill. ...

Exports and imports

Currency

Currency: 1 Tunisian dinar (TD) = 1,000 millimes The dinar (ISO 4217 currency code TND) is the currency of Tunisia. ...

Exchange rates: Tunisian dinars (TD) per US$1 - 1.2455 (January 2000), 1.2546 (December 1999), 1.1387 (1998), 1.1059 (1997), 0.9734 (1996), 0.9458 (1995)

Encyclopedia > Economy of Tunisia

Contents

Economic data

Electricity

Agriculture

Exports and imports

Currency

See also