26 November 2009
Prime Minister Mohamed Ghannouchi chaired, on Wednesday in Tunis, the Higher Development Council's meeting with attendance of representatives of political parties, national organisations, regional councils and several executives.

The meeting was devoted to the assessment of the results of the first three years of the 11th Development Plan (2007-2011) to devise policies and programmes designed to achieve the goals of the next five-year period spanning 2010-201 as part of the flexible plan, a strategy serving as a linker between the current development plan and the next one which coincides with the implementation of the new presidential programme (2009-2014).

On the occasion, Mr. Ghannouchi pointed out that this Council is a sphere for enriching dialogue and consultation on the development process, all its different aspects and dimensions. It is also designed to draw the balance of this process and conceive of ways to strengthen the gains made and take up challenges posed.

With regard to the development process, the prime minister said that the first three years of the 11th Plan, i.e. 2007-2009, were marked by two different periods, each of which having its peculiarity. Results of the first period, he specified, were up to the fixed targets, and often above forecasts, especially in the areas of development, investment and trade exchanges, despite the delicate economic situation.

Tunisia has managed to circumscribe the effects of the global financial and economic crisis
As to the second period, which corresponds to the second half of 2008 and the whole year of 2009, he pointed out, it was characterised by the worsening global financial and economic crisis the effects of which hit all countries with no exception.

The prime minister added that Tunisia managed to circumscribe the effects of this crisis, thanks to measures ordered by the Head of State, as soon as the first signs of the crisis erupted, as part of a complementary programme including temporary measures aimed to strengthen capacities of firms, particularly the exporting ones, to mitigate the adverse impact of the crisis on their activity; and structural measures, as well, that centred on reinforcing the national economy's competitiveness and its resistance to the accelerated world changes.

The prime minister reviewed the reforms carried out in the past period, including those meant to encourage private initiative, the enactment of law on concessions, review of the Insurance Code and Customs Code, in addition to speeding up the administration reform to bring its services closer to citizens and enterprises, improve the pace of reform of the banking sector and of the financial foundation, in addition to strengthening efficiency and transparency.

As part of developing human resources, the education, training and higher education reform was carried on through working out a new law on vocational training.

A new law on higher education was also promulgated to enhance the sector's quality and introduce changes in the diploma systems.

This reform drive, he said, was accompanied by efforts exerted in the area of modernisation of basic infrastructure (roads, bridges, railways, logistic zones, communication networks, etc.).

He also pointed out that the upgrading programme of production units went on, in line with the fixed targets. As a result, the number of enterprises in the manufacturing industries and services, whose upgrading programmes were adopted, have reached 3,045 enterprises. The Industrial Modernisation Programme (PMI) is continuing. Hence, 1,300 enterprises obtained their certification to international standards.

The implementation of the development programme of a second generation of industrial and technological zones in conformity with the most modern standards to strengthen their competitiveness and attract more investors has also started.

Mr. Mohamed Ghannouchi underlined, in this context, that the strategies for developing the productive sectors have experienced a great impetus, to improve their yield and efficiency and attenuate the impact of international fluctuations on the large-scale farming, textile and clothing, information and communication technologies and renewable energies sectors.

He added that regional development has always been driven by forceful dynamics throughout the 2007-2009 period, thanks to projects carried out in the areas of extension and modernisation of the motorway network, development of industrial areas and generalisation of public interest business centres across all governorates of the country, which helped generate a dynamics that stimulated investment in the inland regions.

The prime minister pointed out that the difficulties and fallout of the global financial and economic crisis did not prevent the State from carrying on its social investment policy by implementing a three-year wage rise programme for the period between 2008 and 2010, equalisation of basic foodstuff and reinforcement of guidance for low-income families and special needs categories. Thus, social transfers reached 19% of the GDP.

217,000 new jobs were created during the first three years of the Plan, i.e. 52.7% of the jobs set by the Plan
Mr. Ghannouchi said these policies and programmes helped strengthen the national economy's capacity to face up to external hardships and shocks. This resilience was translated in the achievement of a rate of growth of 3% this year, compared with a 1.1% drop of the world GDP, and the achievement of an average growth rate of the GDP of 4.7% at constant prices in the first three years of the 11th Development Plan (2007-2011).

The prime minister pointed out that some 217,000 new jobs were created during the first three years of the Plan, i.e. 52.7% of the jobs set by the Plan.

Other indicators: the current deficit of the payment balance was kept within the limit of 3.3% of the GDP in the first three years of the Plan, while necessary external resources were mobilised and avoiding resorting to the private world financial market in 2008 and 2009, viz. years marked by fluctuations of the world financial markets, fall in liquidities and tightening of credit. Besides, the ratio of foreign debt compared to GDP was brought down to 41.3% in 2009.

Mr. Mohamed Ghannouchi added that the State budget contributed to the achievement of these results by keeping the budget deficit within 2.7% of the GDP, i.e. the same rate that was set by the 2007-2009 Plan.

He said that owing to this approach, Tunisia's position on the international scene has been reinforced as reflected in Tunisia's good ratings by specialised international institutions and bodies in the areas of macro-economic competitiveness, good governance, business environment, information and communication technologies and human resources development.

Tunisia's position on the international scene has prompted growth of foreign direct investments
This position has also prompted growth of foreign direct investments (FDI) which are estimated at 7,865 million dinars (5.3% of the GDP), compared with 4,565 million dinars (3.1% of the GDP) initially forecast for the 2007-2009 period.

These results were achieved despite the negative impact of the global financial crisis on the movement of world capitals and the dynamics of attracting FDI on the international scale.

The prime minister pointed out that, as part of the economic budget for 2010, Tunisia hopes to regain its rate of growth and job creation by reaching a growth rate of 4% and creating 70,000 jobs and boosting high technological contents and high-employability activities, particularly for university graduates.

This year's development scheme also provides for strengthening the foundations of regional development on the basis of a coherent approach aimed to develop infrastructure, promote human resources, encourage the private sector to invest and produce and carry on the policy of correlation between the economic and social dimensions of development.

© Tunisia Online News 2009