Tunisia has implemented various measures to support different sectors and vulnerable populations, but the social protection system still lacks an unemployment benefit scheme and significant inequalities remain. In 2013, a new social contract was signed outlining the necessary reforms for social protection and social justice.

While the current social protection system covers all socio-professional categories in the public and formal private sectors, it excludes informal sector workers who make up around 37 percent of the workforce. Additionally, the system fails to adequately represent poor and illiterate women and girls, including those in rural areas, as well as children.

The absence of appropriate and universal social protection system perpetuates poverty, foster unemployment and informal work, and reduces resilience. However, by investing in a comprehensive and expanded social protection system, the government can mitigate these risks and prioritize reducing poverty, unemployment, and informal work while enhancing overall resilience.

Tunisia's poor management of natural resources and environment hampers wealth and sustainability, worsened by climate change, increasing vulnerabilities and undermining progress. This mismanagement prevents Tunisia from adequately addressing water and land resource challenges and increases the likelihood of instability and conflict as resources become scarcer.

Despite Tunisia's commitment to international agreements like the Paris Agenda and its efforts to enhance resilience to climate change through Nationally Determined Contributions, ineffective resource management exacerbates inequality and threatens economic growth. The negative impacts are disproportionately borne by the poorest, most marginalized, and vulnerable populations, particularly those in the interior regions who heavily rely on the land.  

Investing in resilience-building for the poor can mitigate the risk of poverty, reduce unemployment and informal labor, and minimize conflict. It presents an opportunity for long-term development that emphasizes sustainability, social equity, innovation, and the rights of future generations to natural resources and ecosystems.

Tunisia has been experiencing social and economic challenges, for more than 10 years, with a very tight fiscal space, and weak economic growth, unable to allow for a strong economic recovery based on a investment push and job creation. The pandemic and the war in Ukraine have exacerbated these challenges, with a greater impact on vulnerable populations.

Nevertheless, Tunisia has been committed for several years to unlocking the potential of the private sector and improving the business climate, to enhance the competitiveness and productivity of the Tunisian economy, mainly through the implementation of a series of emergency measures in favor of private investment.

In the medium term, and within the framework of its NDP 2023-2025, the Tunisian government is committed to strengthening the competitiveness  and diversification of the economy, as well as to promoting the knowledge-based economy as a key driver of innovation and creativity, focusing on emerging sectors with high potential of growth, start-ups, and investment in technological infrastructure, to improve Tunisia's positioning on international markets and value chains.

Tunisian industry is characterized by a weak integration into global value chains and low technological content The country's exports are concentrated on a small number of products with limited added value. In addition, inadequate infrastructure in rural areas exacerbates inequality and poverty.

However, by investing in high value-added economic opportunities, Tunisia can improve livelihoods, reduce unemployment rates and strengthen the resilience of its economy. Such investments would contribute to the development of a more robust and competitive industrial sector, enabling Tunisia to better integrate into global markets and improve its overall economic performance.

The profile of poor households has not fundamentally changed in the last 5 years. Tunisia faces increasing exclusion, regional disparities, and marginalization of the youth and other vulnerable groups who are critical actors of change. Youth participation in politics is declining, and inability of the development process and the governance system to integrate youth and provide opportunities for their contribution to economic and social growth.

Promoting equal opportunities through empowerment of all allows increased innovation in sectors, reduces inequalities and reduces unemployment. Tunisia would also benefit from investing in data capacity as the lack of systematically collected and disaggregated data prevents assessing the inclusion of all.  

Tunisia has progressed in setting up new democratic institutions and independent bodies as well as the strengthening of its legislative framework. Major achievements have been made since 2011. Public authorities have taken significant steps in the transitional justice process and in reforming the judicial and security sectors to enhance rule of law, accountability, the transparency of institutions and processes and to enshrine human rights principles. For instance, satisfaction with government services rises at 75%.

Weak democratic control and oversight engenders the persistence of corrosive practices such as corruption, nepotism and discrimination.

Addressing transparency is crucial for Tunisia to ensure its growth is sustainable and inclusive .