In material terms, Tunisia ranks highest in North Africa, and even higher than Turkey. The country’s diverse economy includes significant agricultural, mining, energy, tourism, and manufacturing sectors, avoiding dependence on the export of commodities. However, Tunisia has been slow to move to higher value-added activities, and high-tech exports are somewhat lacking. The paucity of mass education and low number of patents filed suggest this will be difficult to remedy and may become a hindrance to long-term progress.
However, local entrepreneurship is vibrant and this creates high levels of competitiveness in Tunisia’s markets. The government is pursuing gradual economic reforms, which were enhanced by the country’s 1998 association agreement with the European Union. Currently, Tunisia guarantees considerable business freedom. The labour market is fairly flexible, and governance is generally effective. Total government expenditures, including consumption and transfer payments, make up less than one third of the country’s GDP.
However, there are regulatory obstacles that hinder the economy’s openness and integration into the world economy. Foreign ownership of agricultural land is prohibited, and onshore companies generally require government authorisation. Furthermore, foreign investment is screened by the state and restricted in some sectors, contributing to the low levels of capital investment.
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Tunisia has the highest rank for Comparative Liveability in North Africa, surpassing even some European states, despite relatively low average per capita income levels. However, the lack of political rights and civil liberties remains a major concern as the government relies heavily on the military and on security services to control the population.
Although freedom of association and assembly are guaranteed in the constitution, several political parties, social movements and civil organisations are restricted, and public figures critical to the regime have been imprisoned. Even academic freedom is limited: debates and discussions of politically sensitive topics are constrained and censorship is common.
Perhaps as a consequence, community activities, especially charitable giving, score below the regional average, and social cohesion is weak. These factors, however, do not dampen the optimism of Tunisians, with 94%g believing that they can get ahead through hard work, according to the Gallup World Poll -- perhaps a testimony to the country’s relatively good economic progress.
The regime provides relatively good social security and healthcare. Most Tunisians are satisfied with the efforts to preserve the environment, despite reporting dissatisfaction with the air quality. The satisfaction with personal health is echoed by a moderately high health-adjusted life expectancy of 62.5 years.
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