Political instability has severely impacted on Tunisia’s post revolution economic competitiveness a new ranking by the World Economic Forum, (WEF° has indicated.
According to the WEF report, Tunisia has fallen from 92nd place in world competitiveness last year, to 95th this year; 55 places behind its 2012 ranking of 40.
In a related study, featured on the economic statistical website Trading Economics, which records all WEF rankings, Tunisia was ranked 32 in 2011, (the year of the revolution) in terms of global competitiveness, falling to 40th place the following year.
Between the economic crisis of 2008 and the revolution, Tunisia typically hovered between 32nd and 40th place.
Economics Analyst, Ridha Chkandeli told Tunisia Live that the political instability of the transitioning democracy was a key factor in Tunisia’s current economic problems, pointing specifically to enmity between the country’s parties, especially Nidha Tunis and Ennhada. The rapid succession of governments, five in as many years, had also contributed to the country’s difficulties. “The investors will not invest in a political environment that is so unstable.”
Tunisia continues to have a relatively high unemployment rate. According to the the Institute of National Statistics (INS) the current rate of unemployment is 15.6%. Chkandeli described the job market as being highly problematic, stating that there were few options out of unemployment for many in the labour market.
In terms of the efficiency, (how easy it is to gain employment or change employment) of the labor market, The World Economic Forum’s report ranked Tunisia as 133/138. Tunisia has suffered from numerous well publicized terror attacks, which have decimated it’s previously vibrant tourist industry, resulting in a “cost of terrorism on business” ranking of 127th place.
Chkandeli also highlighted the lack of confidence in Tunisia’s labor market. Although Tunisia is known for having a high level of education, Chkandeli pointed to Tunisia’s growing reputation civil disruption, as seen during the conflict between protesters and the gas giant, Petrofac on Kerkennah Island and at the ongoing disputes at the Phosphate plant in Gafsa, as detracting from Tunisia’s attractions as a possible location for investment. “The labour market is dominated by the unions, there are many strikes and demonstrations” Chkandeli said.
Although fellow North African state Morocco ranks 70th, 25 places above Tunisia in terms of competitiveness, in terms of “Ease of Doing Business,” the World bank places at 74 one point above Morocco.