Tunisia: a model for emerging economies?

Tunisia has been hailed as role-model for the world's emerging economies after its response to the global financial crisis. At the beginning of the current year, Tunisia set up a strategy to cope with the international crisis. It spent around 0.6 percent of its GDP in supporting the companies affected by the global financial crisis, Mr Mohamed Ghannouchi, Tunisia's prime minister, said during Emerging Markets Summit in London.

As part of the nation's vision, steps have been taken to assist the national enterprises to preserve the growth of the Tunisian economy. Mr. Ghannouchi said, "one more important programme of investments established in order to develop modern motorway, wide railway network, construct two power stations of 400 MW each, build an oil refinery in south of the country, launch a phosphate plant and create a deep-waters seaport."

The idea behind the investments was to stimulate local demand and offer better opportunities for local businesses. Ghannouchi claims he is working alongside the European Union's fund, World Bank and the African Development Bank to integrate Tunisia's economy into the global market. The programme he is working on aims to ensure all businesses are able to reduce transaction costs, optimise foreign trade measures and improve access to financial market.

It is hoped an empowered Tunisian business sector will attract greater FDI in its expanding sectors such as information and communication technologies, health, car industry, and electronics.

In a further effort to drive Tunisia's economy forward, Mr. Ghannouchi is attempting to diversify its exports, with more direction towards Africa and the Maghreb region, the Middle East and North Africa. The country currently relies heavily on the export of manufactured goods and services, the majority of which going to the EU.

Tunisia's Prime Minister also spoke about his government's plans to make its currency fully convertible, "I do hope to make sure it's converted as soon as reachable. We have made a lot of progress in that area."

"Ghannouchi continued that he hoped international institutions would move fast to disburse an extra $850 billion in resources decided for the International Monetary Fund at the G20 Summit April 2009.

We hope the measures agreed in London will be implemented effectively and as soon as possible."

After 25 years of sustainable growth, the financial crisis hit foreign demand for the developing world's goods and services hard. It is now a priority of the G8 and G20 to restore world demand, promote trade and investment and bring back growth and prosperity to the developing world.

Even during the global economic crisis, Tunisia has managed to preserve its economy, maintain the growth and retain the lead among the North African countries, according to the World Economic Forum Report 2009/2010.

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