Tunisia's economic challenges / Lahcen Achy.

"December 2011."

As Tunisia moves away from its former regime, policymakers need to seize this historic opportunity to pursue an innovative economic strategy to overcome four key challenges: high rates of youth unemployment, a large number of marginal jobs, increasing income inequality, and substantial regional disparities. The author suggests that to overcome these challenges, Tunisia needs to develop a sustainable process of job creation that relies on a competitive private sector, and the government must remove barriers to entrepreneurship and investment; policymakers need to design incentives to channel resources toward selected high-value-added and knowledge intensive sectors, and likewise stimulate product innovation and market diversification; Tunisia must review its public finance system to achieve social justice and equitable sharing of the tax burden by streamlining tax regulations and eliminating unjustified tax breaks, cracking down on tax evaders, and ensuring that all taxpayers contribute according to their capacity; and, the government should design a comprehensive development strategy that promotes parity in access to basic services such as education and health across the country's regions.

Includes bibliographical references (pages 23-25).

Introduction -- Tunisia's economy under Ben Ali -- Managing the economic transition -- Challenges and policy options -- Conclusion.

Also available via the Internet.