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Essay / Erosion of the economy and the middle class in Tunisia
Erosion of the economy and the middle class Since 1987, when Ben Ali assumed the presidency, there has been a much-needed economic boom due to sustained growth of more than 5 percent, improving living standards and increasing employment opportunities. Economic stability has also improved health care and the education system (El-Khawas, 2012). The economic policies introduced by Ben Ali were not effective and even when economic growth and liberalization took place in Tunisia, they did not lead to the creation of jobs for educated youth. Employment opportunities and exports have mainly developed for low-skilled activities. The introduction of FDI in recent years has also not improved the labor market, as the incentive for FDI was privatization rather than new investment avenues. Market sector reforms aimed at supporting the private sector have not resulted in an increase in private sector investment in Tunisia (Paciello, 2011). Tunisia began experiencing an economic depression in 2008, worsened by the financial crisis in Europe that year. According to a World Bank report, average economic growth in Tunisia fell from 6.3% in 2007 to 4.5% subsequently, then to 3.3% in 2009 (World Bank, 2010). Exports declined as did the industrial and service sectors. Along with this, WikiLeaks cables revealed the luxurious lifestyle of the ruling family, exposing corruption and nepotism within the government. In one of the cables, Robert Godec, the American ambassador said that "the opulence with which El Materi and [his wife] live and their behavior clearly show why they and other members of Ben Ali's family are hated and even hated by some Tunisians. The excesses of the Ben Ali family are increasing” (Black, 2010). The middle class has been severely affected...... middle of paper ...... African Development Bank (AfDB) Group. Paciello, M. C. (2011). Tunisia: Changes and challenges of political transition. Brussels: MEDPRO.Roko, JR (2012). Contentious policies in the Maghreb: a comparative study of mobilization in Tunisia and Morocco. Lambert Academic Publishing. World Bank. (2010). Global Economic Outlook 2010. Washington DC: World Bank. Zemni, S. (2013). Chapter 5: The socio-economic protest against the national revolt: the working origins of the Tunisian revolution. In N. Gana (Ed.), The making of the Tunisian revolution (pp. 127-146). Edinburgh: Edinburgh University Press. Mahjoub, A. (2010), “Labour Markets Performance and Migration Flows in Tunisia”, in Directorate-General for Economic and Financial Affairs of the European Commission, Labor Markets Performance and Migration, Tunisia, Morocco and Algeria, occasional. Papers 60, Vol.2, Brussels, Belgium.