· The World Bank approved an Integration and Competiveness Development Policy Loan(DPL) in the amount of US 250 million for Tunisia
· This Integration and Competiveness Loan supports the key strategic elements of Tunisia’s 11th National Development Plan (2007-11)
March 2009 – Tunisia faces today two interrelated challenges: to grow at a much faster rate than in the past to reduce high unemployment (14 %), and to accelerate the structural transformation of the economy to a knowledge-based, skill-intensive and technology-based economy. In its 11th National Development Plan (2007- 2011), the Government clearly reaffirms its objective to deepen and widen the global integration of Tunisia by shifting away from just facilitating the economy’s adjustment to openness towards a more ambitious and deeper global integration agenda.
Press Release The World Bank's support
The World Bank project is based on two key pillars of Tunisia’s 11th National Development Plan : accelerating the pace of growth and preserving macroeconomic stability. The project will assist the Government in responding to the global financial crisis and in accelerating reforms, and sending a strong signal to investors to maintain Tunisia's competitiveness. It focuses on a set of mutually reinforcing policies and actions to deepen Tunisia’s global economic integration and to promote private sector development. Specifically, the proposed DPL will support policy actions in the following areas: - Reducing trade transaction costs and deepening Tunisia’s global economic integration;
- Further improving the business climate to enhance competitiveness of Tunisian firms, including services; and;
- Strengthening the financial sector to increase its capacity to finance private investment.
The loan will also help Tunisia finance its budget deficit and maintain macroeconomic stability in the current international economic environment especially as the Government does not intend to seek financing from the international bond market in 2009. The proposed program is underpinned by the Global Integration Study
The study took stock of Tunisia’s integration policies since the early 1970s, examined the key remaining integration challenges that the country’s manufacturing sector is facing and proposed further reforms to enhance the competitive position of the country; and identified the specific policy reforms needed to realize the largely untapped potential in services.
More on the Study  Data on Tunisia's main sectors - The services sector (59% of GDP) has been the engine of growth (7% annual growth on average in 2000-2007) thanks to dynamism of telecommunications, transport and commerce-while growth in tourism remained modest.
- In the manufacturing sector (17 % of GDP), the mechanical and electrical sector witnessed a double digit growth in both investment and exports. In 2008, the sector accounted for 27 % of merchandise exports (against 13 % in 1995) and captured 31 % of Foreign Direct Investment flowing to the manufacturing sector (against 13.7 % in 1995).
- The textile sector (33 % of exports), on the other hand, weathered well to the external shock of the multi-fibre agreement (MFA) dismantling, as many Western European firms having invested in Eastern Europe switched to countries like Tunisia due to rapid increase in wages following the Eastern European countries' EU accession.
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