SPECIAL REPORT: AND THE UNITED STATES

TUNISIA’S PRESIDENT ZINE EL ABIDINE BEN ALI’S visit to the United States at the invitation of US President George W Bush has become a crucial watershed in the TUNISIApolitical and economic relations between America and the Arab world. By Anver Versi. & THE USA

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A WATERSHED MOMENT. TUNISIA’S PRESIDENT BEN ALI AND USA PRESIDENT GEORGE BUSH – BRINGING TWO WORLDS TOGETHER.

A PIVOTAL MEETING DIPLOMACY

he handshake between Tunisia’s the region and outside President Ben Ali and US leader it to the negotiating ta- George Bush was pregnant with ble. Th e latest success far weightier symbolism than is was in working behind usually the case when two heads the scenes to persuade Tof state meet. Ben Ali’s visit to the US, accept- to abandon its ing Bush’s invitation delivered in person by US stance on weapons of Secretary of State in December mass destruction. 2003 in , was laden with more import than Th is point was high- cementing the existing excellent relations be- lighted by President Bush when he told Ben Ali: literacy rates. Th e Islamic injunctions on the tween the two countries. It was the coming to- “Tunisia can help lead the greater Middle East to rights and high status of women over-rode cul- gether of two worlds, the Western and the Arab, reform and freedom, something that I know is tural and traditional mores on gender and today at a time when tensions between the two are at necessary for peace for the long term.” Ben Ali Tunisian women enjoy greater equality in the snapping point. responded: “We share principles together, Mr professions and earnings than in many Western Although Ben Ali travelled to the US sole- President and that is the establishment of states countries. Islam’s insistence on an egalitarian ly in his capacity as Head of State of Tunisia, on the bases of democracy, human rights and society and the right of individuals to improve there was no doubt that the eyes of the Middle combating terror.” their living standards has resulted in one of the East and the north African Maghreb region (in- Perhaps more importantly – and this is a highest per capita incomes in the developing cluding , Libya and ) were fi xed point oft en missed by Western observers – al- world, almost 80% home ownership and one of on him. Over the years, Tunisia’s diplomatic though Tunisia is situated on the African con- the lowest poverty levels in the world. skills have chiselled out a unique position for tinent, it is and Muslim at heart. President Bush acknowledged this when he the country as the bridge between the world of Th e constitution and the legal system are praised Tunisia for establishing a “modern and Arab Islam and the West. secular but the offi cial religion is Islam. Right viable education system and for giving equal Tunisia’s credentials in this regard are im- from the time of its independence in 1956, the rights to women”. peccable. Quietly, unpretentiously, but persist- country’s leadership stressed education for both Th ere are few better examples of the living ently, the country has acted the honest broker, boys and girls, as demanded by Islam. Th e re- proof of the Islamic spirit of respect for other bringing together oft en disparate parties from sult is that Tunisia has one of the world’s highest religions and races than Tunisia. People of dif-

TUNISIA: MAIN INDICATORS ▶LIFE EXPECTANCY 72.9years (2001) ▶CLIMATE ▶GOVERNMENT Mild in the north and along the coast ▶LANGUAGES Multi-party democracy. Semi-arid in interior and south Arabic (offi cial) French widely spoken, some English, Italian and German ▶HEAD OF STATE ▶TEMPERATURES President Zine El Abidine Ben Ali. December 11.4 Celsius. July 29.3 Celsius. ▶RELIGION Islamic majority, Christian and Judaism. ▶POPULATION ▶CURRENCY TND 1.51550 9.8m (2002). () = 1 (February 2004). ▶ ADULT LITERACY RATE 74.4% (2000) ▶MAJOR CITIES ▶ NATURAL RESOURCES Tunis (capital),, Bizerte, . Oil, phosphates, iron ore, lead, zinc, salt. ▶GROSS DOMESTIC PRODUCT TND 32.203m (2003) ▶TIME ZONE ▶ DEMOGRAPHIC GROWTH GMT+1. RATE 1.1% (2001) ▶GNP PER C APITA TND 3,125 (2003)

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ferent ethnic backgrounds have lived together systems of government according to their na- so intimately and so easily that, when you are tional priorities, their histories, their cultures, TUNISIA – USA LINKS in Tunisia, even the idea of looking at people’s their value systems. One size does not fi t all – the The relationship between Tunisia and the colour seems as preposterous as grouping peo- British parliamentary system with a constitu- United States of America goes back to the ple according to height or weight. tional monarchy, the American federal system birth of the American nation. Tunisia was one Equally preposterous is the idea of cordoning with an executive president, the French presiden- of the fi rst countries to recognise the USA people according to their faiths. Islam demands tial/prime-ministerial system, the German fed- and one of the fi rst to establish a trade agree- respect for all religions. Th ere is a very sizeable eral organisation with a chancellor at the head ment with it, in 1799. community of Jews who have lived happily and - all are democracies shaped by their societies. Since then the intensity of the relationship prosperously in Tunisia for hundreds of years. US Secretary of State Colin Powell recog- has ebbed and fl owed according to politi- Th e El Ghriba synagogue in Jerba is one of the nised this distinction during his visit to Tunis in cal and economic considerations. The visit most important Jewish shrines and thousands December when he said that the US did not wish by Tunisia’s President, Zine El Abidine Ben of Jews from all over the world attend annual to export its model of democracy but was keen Ali to the USA following an invitation by US President George Bush is expected to deepen celebrations Lag be Omer. to see the installation of democracies where they and strengthen this relationship in terms of Seeking aft er knowledge, progressing, do not exist. On this point, he will fi nd nobody diplomatic activities, trade and mutual de- working hard for yourself and your community, to quarrel with in the region – the struggle for fence needs. equality of the sexes, justice before the law, most people in this area for the last 50 years respect for other faiths and creeds, helping has been precisely that – a democracy cut from TRADE: In 2003, the US imported around the poor and always striving to do good are all their own cloth. $82m in products from Tunisia and exported part of the letter and spirit of Islam. Th is is not Tunisia is a model Arab and Muslim state almost $144m in products to Tunisia. While ‘moderate’ Islam as is sometimes erroneously and it is where most other countries in the re- there is a general acceptance of US products labelled. It is Islam pure and simple. gion want to reach. Its continued success is proof in Tunisia, import duties levied on American Th erefore, that Tunisia is modern, progres- that Islam and modernity go hand in hand. It products make them less competitive against similar products from the European sive, prosperous, at peace with its neighbours is also a body blow to those who for political Union (EU) with whom Tunisia has a free and itself and Islamic is not a contradiction of reasons, seek to persuade the world that Islam trade agreement. A Trade and Investment terms. Tunisians will tell you that it is because and modernity are mutually exclusive and that Framework Agreement (TIFA) signed be- they have remained true to the real spirit of to chose one is to lose the other. tween the two countries is precursor to Islam that other boons have followed. Tunisia’s own battle against terrorism, when negotiations for a Free Trade Agreement. Th is is an important distinction to make – political groups, pretending to be Islamic but in The fi rst TIFA council meeting was held in especially in the West where a distorted view of reality distorting Islam completely out of shape October last year and the second one will be Islam, based on the activities of a few who also in order to create a state of anarchy, was fought held in the spring of 2004. claim to be Muslims, has sometimes reached and won long before America woke up to the At present, 80% of Tunisia’s trade takes place dangerous proportions and in fact, has provided reality of this horror on September 11. with the EU. the so-called ‘fundamentalists’ with a signifi - Th us, at this juncture in the world’s history, US INVESTMENTS IN TUNISIA: Total US in- cance and size well out of proportion to their when many pieces are in fl ux, President Ben vestment in Tunisia is around $552m. real, minute dimensions. Ali’s visit to the US assumed a signifi cance well There are over 50 US companies in the coun- beyond diplomatic and trade relationships. Th is try, mostly in the energy, IT manufacturing HOME GROWN DEMOCRACY visit could lay the ground for rearranging the for export, telecommunications and medi- Th ere is another, unfortunately widely held mis- pieces in the Arab world so that order can be cal equipment supply sectors. US companies conception in the West that for some reason restored to chaos, peace can be given a chance have created over 11,000 jobs. or the other, do not mix. to prevail, hostility can be transformed into US companies have won signifi cant gov- Th is is the opposite of the true state of aff airs. friendship, suspicions can be laid aside, respect ernment contracts. For example, General Everything in Islam promotes the ideal of de- for each other’s needs can be recognised and a Electric won a major contract in 2002 to sup- ply three gas turbines to the state utility com- mocracy – from the concept of the ummah, the strong partnership can be forged. ■ pany and an American-led consortium won a duties of elected offi cials, taxation, so- contract for 470 MW power plant to supply cial welfare, a fl uid legislation, checks over 20% of Tunisia’s power requirements. and balances and the protection of A TRADITION IF RESOECT FOR ALL FAITHS. A Some of the best known American compa- human rights. Autocratic rule is un- JEWISH FAMILY LIGHT A CANDLE AT THE GHRIBA nies operating in Tunisia include: 3M, Boeing, Islamic. Some of the countries which SYNAGOGUE DURING LAG BE UMER CELEBRATION Bristol-Myers, Caterpillar Power Ventures, are predominantly Muslim, such as Citibank, Coca-Cola, Deloitte and Touche, Indonesia, Malaysia, Bangladesh, ExxonMobil, Ford Motor Company, GE, GM, Pakistan, , Algeria, Morocco, IBM, Lear, Lucent Technologies, Microsoft, Turkey, Senegal, Mali, Tanzania, Oradist, Pfi zer, Philip Morris, and Sara Lee. A joint venture, Société d’Electricité d’El Sudan, Iran and so on are all fully Bibane (SEEB) between Caterpillar Power functioning democracies. If a hand- Ventures and Canadian fi rm Centurion be- ful of states which are autocratic also came the fi rst independent power producer happen to have Muslim majorities, it in Tunisia to convert fl ared gas into energy. does not follow that all states which Alpha Ford is collaborating with Ford Motor have Muslim majorities are automati- Company to assemble Ford Rangers on a cally autocratic. ‘completely-built-up’ basis – an ambitious ven- However, all democratic states, by ture which is the fi rst of its kind in the region. defi nition, shape and construct their

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A TUNISIAN DOCTOR EXAMINES A BRAIN SCAN AT A TUNIS HOSPITAL. THE COUNTRY HAS THE BEST HEALTH CARE FACILITIES IN AFRICA

nial rule and was thus able to fully release the energy and ingenuity of its citizens, Tunisia, in common with other countries in the region, became independent only 54 years ago aft er a far longer and more pernicious period of co- lonialism. Th ere is a tendency to underestimate the de- structive nature of colonial rule on a people’s ability to develop. Th e colonial powers were not concerned about the development of the people over whom they ruled; on the contrary, it was in their interest to keep development at the barest minimum. In addition, whatever de- velopment there was, in terms of infrastructure TUNISIA’S or technology, was geared towards benefi ting the foreign powers at the expense of the native FORMULA populations. DAUNTING OBSTACLES When colonial rule ended, the countries liber- ated found themselves backward in almost all FOR SUCCESS spheres of life. Th ey not only had to completely ECONOMY reverse the colonial systems of exploitation and replace them with national development pro- ver the last 15 years, Tunisia Solidarity Movement. grammes, they were always playing catch-up has collected an enviable tally Newsweek describes Tunisia thus: “Alone in a world where all the economic deck was of economic and social kudos. among Arab states, Tunisia has made real stacked against them. Eight out of 10 households own progress building an economy based on resourc- In addition, there was a babble of voices and their own homes; 75% of the es other than oil”. Th e former US Ambassador views about what direction the countries would Opopulation is middle class; education is uni- to Tunis, Rust Deming says: “I believe Tunisia take, personal ambitions were unleashed, un- versal; the social security system is the envy is well placed to be the fi rst truly modern Arab scrupulous profi teers, local and foreign, made of the developing world; poverty is a mere 4%; republic.” a bee-line and various ideological strains dis- per capita income is the highest in Africa and US Secretary of State, Colin Powell, speak- covered a new battleground on which to wage the Maghreb. ing in Tunis during his visit last year, said: “Our their wars. Economic growth has been sustained at bilateral relationship is very, very strong. We Th is was the series of daunting obstacles around 5% for over a decade; population growth are great admirers of Tunisia and the progress facing most developing countries as they en- is 0.9%, leaving a per capita growth in income of that has been achieved under President Ben tered independence. In addition, colonial rule around 4%; infrastructure has quadrupled since Ali’s leadership: One of the highest literacy had deliberately created a permanent system 1987; women form over 25% of the workforce. rates in the world, openness in the society to of poverty traps in order to keep the popula- Some 2,500 foreign companies are based in participation of women, and the political and tion ‘in order’. Tunisia; it is the third highest recipient of FDI economic performance which has taken place Th e fi rst order of business therefore was to in the Middle East despite its small size and over the years.” try and break the poverty cycle, collectively and lack of oil; it has the highest ratio of compu- While Tunisians can justifi ably bask in this individually and do this while maintaining po- ter and car ownership in Africa. And it is the universal approbation, it is easy to take Tunisia’s litical stability, national unity and communal most competitive economy in Africa. Tunisia success for granted unless one remembers that at and ethnic harmony. An order so tall that the has been ranked 33rd out of 95 countries on the independence half a century ago, it was on the majority of developing countries are still strug- latest Davos Forum’s Business Competitiveness same level as other countries emerging from a gling to achieve the balance. Index and Tunisia, alone among African and stifl ing century of colonial rule. But while most Given this backdrop, it was clear that the most Arab countries, has open access to international others have fl oundered in their quest for politi- important element would be leadership. Th e capital markets. cal, economic and social development, Tunisia leadership had to have comprehensive knowl- Tunisia’s National Solidarity Movement has forged ahead. edge of the people – their aspirations, their fears, which has beaten back poverty and successfully Why and how has Tunisia succeeded where their capabilities and their limitations. It had to integrated marginalized groups into the main- so many others failed? have achievable vision and the drive and abil- stream has been so successful, it has been adopt- While the US won its own independence 228 ity to make the vision possible and it had to be ed by the United Nations as the International years ago aft er a relatively short period of colo- a leadership acceptable by all. In short, the call

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was for great leadership. a method of social cohesion as previously mar- compete with the best Europe can off er on an Good leadership is a rare commodity. Great ginalized groups were brought fi rmly back into equal footing. leadership, like a perfect gem, appears once in the mainstream. As Tunisia repeatedly achieved its develop- several generations. Tunisia’s fortune was to be Th e threat posed by extremist terrorism was ment goals and as more and more families grad- blessed by two great leaders in one lifetime. as real and urgent as that now presented by in- uated to middle-class levels, so its reputation for Th e fi rst president, identi- ternational terrorism. Th e terrorist groups were political stability and economic progress began fi ed education, the emancipation of women and not opposition parties or disenchanted factions. to increase in Africa, the Arab world and now the building of a sound economic foundation, Th ey were bent on creating a state of anarchy, worldwide. based on innovation and enterprise, as the na- destroying all institutions and generating a cli- Th e result is that Tunisia is the best known tional goals. mate of fear and panic. and best understood country in Africa and the Progress was slow as the colonial super- Ben Ali was not prepared to wait for sym- Arab world. structure was dismantled and a new one built bolic ‘mushroom clouds’ to rise above the cities Th e economic windfalls have been heavy. as hardened mental attitudes and cultural traits before he acted. He stamped down hard – much “You trust people and countries you know and began to change. as the US and Europe have been forced to do in like,” says Yasin Ismail, a Malaysian garments Towards the end of his long tenure, the ailing their own anti-terrorism legislations. manufacturer. “We always also kept hearing of and increasingly senile Bourguiba lost his grip Th e threat of internal terrorism has now Tunisia in a favourable light so when we were on the government. With the economy stagnant, practically disappeared, thanks to rapidly ris- looking to expand our operations in this region, social and political fi ssures widened alarmingly. ing living standards, the spread of education, the Tunisia naturally came fi rst to mind.” Th ere were riots and baton charges. emancipation of women and the active projec- Tunisia’s high profi le globally also helps A new and dangerous element, which had tion of the true nature of Islam. Tunisian exporters fi nd markets and a welcom- arisen from failed hopes, bitterness and frustra- Terrorism thrives in poverty, ignorance, su- ing reception everywhere. “Nowadays, when you tion in neighbouring countries, spilled over into perstition and fear; remove these, Ben Ali argues, mention Tunisia, people immediately associate Tunisia in the form of religious extremism. and you drain the swamps in which it breeds. it with effi ciency, honesty and general pleasant- Th e extremists, claiming Islamic creden- Developing human capacity included a mas- ness,” says Nabil Akhel, a translator. “Its great to tials but with hidden political agendas, were sive investment in education, training and re- be a Tunisian abroad,” he says. “Our publicity well schooled in the mechanics of anarchy. Th ey training at all levels. To not only survive in the guys have been doing a great job.” unleashed waves of terror against which the modern world but to prevail, says Ben Ali, one Tunisia’s success has not come easily – it has government seemed helpless. has to be the best. Th is seeking for excellence been hard, unrelenting work and a constant With the country tottering, it was time for has led to a nation-wide programme of indus- striving for excellence. Its watchword has been a radical change of leadership. Zine El Abidine trial upgrading, ‘mise à niveau’. By 2010, when pragmatism, not ideology. But, fortune has also Ben Ali, a young man with background in di- all trade barriers with Europe have been elimi- smiled on this country and given it the leader- plomacy and national security, and untainted nated, core Tunisian companies will be able to ship it deserves. ■ by association with the old fractious political parties, was invited to take over the national Th e Tunis Declaration, published at the end of leadership. VITAL EUROPEAN, the summit, will provide a working blueprint ARAB AND AFRICAN for future cooperation. Among other items, del- THE BEN ALI ERA DIALOGUE IN TUNIS egates committed themselves to re-launch the His fi rst act in power was to stop the squabbling Middle East Peace Process in conformity with by inviting all Tunisian factions, including those Th e Mediterranean basin, apart from being the international legality in order to fi nd “a just, in exile, to come around and together hammer crucible of civilisation, is also the centre from comprehensive and fi nal settlement of the Isreali- out a new national blueprint. which Arab, African and European worlds radi- Palestinian confl ict.” Th e core of the blueprint was rapid econom- ate. Cultural, religious, political and economic All heads of state were equally resolved to ic growth based on the country’ s human re- vibrations from each of these regions travel to and support “the restoration of the sovereignty of sources and an equitable sharing of the national fro along the spokes setting off signifi cant tremors Iraq” and to accelerate the transfer of power to wealth, national unity of purpose and revital- in the countries they traverse. Iraqis.” izing Tunisia’s rich cultural legacy. With the geo-political situation in fl ux, In his closing remarks, Tunisia’s President He staff ed his cabinet with some of the most Tunisia’s initiative to bring all the signifi cant Ben Ali said the fi rst summit had made it pos- pragmatic and result-oriented people he could players together in the fi rst summit of its kind sible to reach a common approach through the fi nd and insisted that the administration and has been welcomed. Th e ‘5+5 Dialogue Summit’, Tunis Declaration. “Our dialogue has been at civil service carry out every last detail of each held in Tunis in December, was attended by the the same time profound, sincere and serious,” project. It is remarkable that Tunisia, under Ben heads of state of fi ve Arab Maghreb Union coun- he remarked. Ali’s leadership, has achieved all the goals set tries (Morocco, Algeria, Mauritania, Libya and Th e United Nations Secretary-General, Kofi out in each development plan and surpassed Tunisia) and fi ve southern Mediterranean coun- Annan congratulated Tunisia for taking the ini- targets more oft en than not. tries (Portugal, , , and ). tiative on “organising such an important event”. Th e social agenda, national security and the Discussions focussed on a wide range of is- He added: “the summit was a good opportunity to rule of law were also priorities. Th e ingenious sues, from common security in the face of inter- further reinforce the political, civilisational and National Solidarity Fund (in which govern- national terror, political stability, economic co- cultural dialogue between western Mediterranean ment matches voluntary donations from indi- operation and trade to fi nding a lasting solution countries, with a view to strengthen confi dence viduals, companies and other organizations) to the Palestine crisis and the thorny question between its peoples, encourage harmonious co- not only helped batter down the poverty rate of migration. development in the region and consolidate its from around 30% to less than 4%, it served as Th e talks were free, frank and to the point. security and stability.” ■

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WITH OVER 50 FESTIVALS EACH YEAR, TUNISIA IS THE CULTURE CAPITAL OF THE ARAB WORLD. HERE LEBANESE DIVA NAJWA KARAM DAZZLES THE AUDIENCE AT THE CARTHAGE INTERNATIONAL FESTIVAL. BELOW: EL JEM,ONE OF TUNISIA’S WORLD HERITAGE SITES.

a massive conservation undertaking so close to TREASURE a capital or major city. Tunisia’s cultural treasures are not limited to Carthage and its neighbourhood. Th e whole TROVE OF country is dripping with cultural gems. CUSTODIAN OF WORLD HISTORY Go to the Bardo museum in Tunis and feast on the sumptuous cultural banquet spread CIVILISATION out before you. A new section, Mediterranean CULTURE Treasures, contains a wealth of rare and precious ancient Greek objects. Here you will see daz- unisia contains some of the most Th e park will contain six segments: the an- zling mosaics, including one of Ulysses straining important World Heritage sites. Its cient city of Carthage; La Marsa nature park, against the songs of the Sirens. Th ere is superb cultural roots go back three thou- Sidi Bou Said village, the gardens of Amilcar, Roman sculpture and mosaics, Arabic calligra- sand years to the glory that was the Yasmina sports and leisure park and the phy and coins and thousands of other objects Carthage. Th e subsequent history Carthage coast. collected and preserved over the millennia. Tof the world can be said to have fl owered from One of the fi rst projects will be a $3m memo- In the fabled of Tunis you will fi nd this beginning. rial to Hannibal, one of the greatest generals of the famous Ez-Zitouna Mosque, relatively un- Here in Tunisia, one can see and touch the all times, who took 40,000 men and 38 elephants changed since the founding of Islam in Tunis. milestones of world history - the Numedian and over the Alps to punish Rome. Take a trip to , the fi rst Islamic cen- Punic civilisations, the Roman occupation, the Next in line is a $5m reconstruction of the tre established in the 7th century and marvel at Vandal destruction, the Byzantine elaboration, ancient Punic port, seat of one of the most ex- the Great Mosque of Okba ibn Nafâa where it is the Arab conquest, the Turkish lordship and the tensive commercial networks of the old world. believed resides a hair from the Holy Prophet’s French colonisation. Th e cycle has gone full cir- Carthage, according to Francisco Carillo, a beard. cle and the Tunisian of today is custodian of one Unesco representative in Tunisia, is an “unri- Visit Sfax or walk around the vast Roman of the world’s richest national heritages. valled marvel with many riches still to be un- amphitheatre at El Jem. Go to Kerkouane and It is to protect this fragile but unbroken covered”. gaze at the only example of a Punic settlement historical chain that an exciting new venture Th e park will provide the structure and fa- that has miraculously remained intact to this was given the go-ahead by President Zine El cilities needed to recommence archeological day. Abidine Ben Ali. Some $32m has been allocated digs. Th is is a spectacular conservation project. Join the Jewish pilgrimage, Lag be Omer, on to develop the Carthage-Sidi Bou Said National Several foreign countries have joined the World the 33rd day aft er Passover to El Ghriba - the Park. Th e aim is to halt the urban sprawl that is Bank and Unesco in participating in the project. fi rst synagogue in North Africa - on the island threatening to encroach on one of the world’s When it is completed, Tunisia will be the only of Djerba. Do all this and you only begin to richest archeological seams. country in the Mediterranean to have made such scratch the surface.

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Th ere are at least 26,000 historical and ar- Aldelaziz Gorgi, Rafi k El Kamel, Adel Megdichi lion tourists visit the country but only 10% take cheological sites in Tunisia, with 670 monu- and Rachid Koreichi, an Algerian who lives in the trouble to leave the sun and sand and visit ments in the medina of Tunis alone. Tunisia, to a much wider audience. cultural sites. A new project, ‘City of Culture in the heart Th ere are some 50 festivals between June and Th e potential is therefore enormous when of Tunis is already being talked about by experts September each year in addition to the biannual you consider that millions of tourists visit as possibly the greatest cultural complex in the Carthage Film Festival. With the annual Jazz countries like Britain, or cities like Florence, Mediterranean. It will include a Civilisation festival in Tarbarka attracting greater world- Venice and Rome purely to soak up culture. Museum, an art museum and galleries, three wide attention, Tunisia can now claim to be the Th e Ministry of Tourism, in conjunction with large auditoriums, a cinema and a media li- culture capital of Africa. the Ministries of Culture and Environment are brary. With so much culture oozing from its pores, working on plans to diversify tourism and bring In addition to the Carthage National Park it is hardly surprising that culture tourism is Tunisia’s cultural treasures to the attention of and the City of Culture projects, a number of high on the agenda. Currently some fi ve mil- the world. ■ cultural circuits are being developed through- out the country. By 2005, an extra 20 circuits are expected to be completed. Th ese will range TUNISIA’S CAPTAIN, KHALED BADRA from archaeological circuits, themed tours such (LEFT) AND STAR MIDFIELDER RIADH as mosques or fortresses and visits to bygone BOUAZIZI (RIGHT) LIFT THE AFRICAN civilisations. Cultural tourism should increase NATION’S TROPHY WHILE PRESIDENT visitor numbers by 20% to 30%, tourism offi - BEN ALI JOINS THE CELEBRATIONS. cials say. While the extra revenue will be welcome, the aim is not just to chase the tourist buck. Th e goal is to protect and preserve Tunisia’s cultural heritage. “We will move very slowly to ensure that we don’t destroy our heritage and environ- ment” says an offi cial. CULTURE’S PRIME POSITION Despite all its economic and social success- es, Tunisia has never taken its eye off the vi- tal importance of culture in the grand scheme of things. It provides a unbroken link to the country’s history and therefore roots the na- tional identity Tunisia currently spends a full one percent of GDP on culture. Th e annual budget for culture is expected to grow from $45m in 1999 to $140m in 2004. Budgetary allocation is as follows: Cultural exhibitions (24%); museums and institutions (20%); cinema (14%); literature (14%), theatre (9%) and poetry (4%). Th e country’s cultural wealth does not just TUNISIA – AFRICA’S Earlier, the entire country of Tunisia went reside in monuments but in the people them- wild with jubilation when the home side beat selves. Th is is why half the culture budget will SOCCER CHAMPIONS the pre-tournament favourites, Nigeria, 5-3 on go towards developing and enhancing human Tunisia became the African soccer champions and penalties setting up an all-North African cultural achievements. in February when the home team beat a strong fi nal. Tunisian cinema already enjoys a well de- Moroccan side 2-1 in the fi nals of the Nokia Th e fi nal, which was played at pulsating pace, served international reputation for quality. African Nations Cup tournament at the Rades was easily the best match of this year’s tourna- Film-makers such as Moufi da Tlatli and Farid Stadium, Tunis. ment. Tunisia went into the lead with a goal from Boughedir have won a clutch of awards from Th is was Tunisia’s fi rst ever victory in the 47 their Brazilian national, Dos Santos. Morocco prestigious international juries. year history of the tournament although Tunisia equalised through Mokhtari Yousseff . Th e win- Th e country has a distinguished tradition has reached the fi nal twice – losing to South ning goal, a deft fl ick by Ziad Jaziri, has made in literature and poetry and Tunisian theatre Africa in 1996 and to Ghana in 1965. Tunisia the young forward a national hero. is beginning to create waves on the interna- has hosted this prestigious tournament three Th e tournament in Tunis has also been de- tional stage. times, in 1965, 1994 and 2004. clared as one of the best ever in terms of or- Th e colours, the forms and the quality of Th e bi-annual African Nations Cup is now ganisation, facilities and international cover- light in Tunisia have inspired both local and one of the premier international tournaments age. Th is will stand Tunisia in very good stead international artists such as Paul Klee and on the soccer calendar. African footballers have as it makes a bid to host the 2010 World Cup Auguste Macke. Additional art galleries will become the most sought aft er foreign players in against other African venues – , expose the works of such Tunisian masters as, the massive European leagues. Morocco and Libya.

The Middle East March 2004 37

TTMEME MMarcharch 22004.indb004.indb 3737 221/2/041/2/04 2:46:002:46:00 pmpm SPECIAL REPORT: TUNISIA AND THE UNITED STATES

itself keep well out of business. Taxation is ra- tional and low compared to similar investment destinations. Corruption, the bane of developing coun- tries, is totally absent in Tunisia’s business en- vironment. Speaking to Newsweek, American entrepreneur, Tom Wendt who makes jet-engine parts for General Electric said: “I didn’t have to SINGAPORE pay anybody to do business here”. Given all these attributes, it comes as no sur- prise that some 2,500 international companies, some of them household names such as Levi’s OF THE MED Jeans, BMW, GAP have set up shop in Tunisia INVESTMENT and more are coming. unisia, with a land area of roughly in the EU, it is an associate member. By 2010, it Tunisia is already the fourth largest sup- 163,000 sq km is small compared will become a full associate member with free plier of garments to the European Union and to its Maghrebi neighbours such fl ow of goods and services. its market share is likely to increase as the size as Algeria and Libya; unlike both, Th e cost of doing business in Tunisia com- of the EU expands. Foreign companies, some- it has hardly any hydrocarbon re- pared to Europe is low; business legislation is times in joint-ventures with Tunisians, make Tserves and half the country is desert. Yet Tunisia clear and in line with international norms; red- car and computer components, electrical and leaves them both - and the rest of Africa – stand- tape has been slashed to a bare minimum; tele- electronic goods, processed foods and oils and ing when it comes to economic performance. communications, upgraded via a series of logical a vast array of other manufactures for a hungry Th is is the Singapore of the Mediterranean. steps, is excellent; air and sea transport links are international market. Relying on a well-educated, highly motivated, comprehensive and internal road and rail net- technologically literate workforce, Tunisia has works are some of the best in the Arab world. ISLAND OF STABILITY grown into a buzzing, innovative industrial cen- But the most important element in Tunisia’s In a region abounding with volatile politics, tre situated bang in the middle of one of the attractiveness as an investment destination is Tunisia is an island of stability. Under the stew- world’s most affl uent markets. the people. Th ere is a ready pool of talented, ardship of President Ben Ali, most of the caus- To the east and west lie oil rich Libya and skilled and well educated workforce. Primary es cited for social and political turmoil – such Algeria; to the south, vast areas of sub-Saharan and secondary education is virtually universal as poverty, disenfranchisement and lack of Africa open up; to the north and north-east and the country’s universities turn out thou- opportunities have been addressed and dealt spreads the Mediterranean, with the heel of sands of graduates every year. Vocational train- with. Tunisia has the highest per capita GNP, Italy’s boot only a long stone’s-throw away. ing courses, subsidized by the government, help the highest incidence of home ownership and From the European rim of the Mediterranean, young people enter industry at technical and the lowest level of poverty in the region. With the trade routes form a vast, interconnected managerial levels. Computer literacy, bolstered an annual growth level of around 5% for the network extending from Spain, France, Italy, through government grants to families to buy past decade, Tunisia has practically lost its ‘de- Greece, Turkey through Germany, Switzerland, their own equipment, is widespread among all veloping country’ status. the United Kingdom, the Netherlands, the sections of society. Th is makes for a stable and contented coun- Nordic countries and into the former Soviet try – usually the fi rst criteria investors look at empire. With several East European countries PAIN-FREE INVESTING when deciding where to invest. now joining the European Union, the Eurozone Investing in Tunisia is virtually pain free. One In addition, a vigorous industrial up-grad- is becoming the biggest single market in the stop investment centres quickly and clearly ing programme, (mise à niveau) has targeted world. outline all the options available and guide you some 2,500 Tunisian companies. Results have As the single currency, the euro, spreads fur- through the formalities. Th ere are two free trade been spectacular as state-of-the art manage- ther afi eld, trade and currency barriers disap- zones mainly for export oriented enterprises, ment, production and distribution procedures pear and prices and quality are standardized. one in Bizerte and the other in Zarzis. In addi- replace traditional methods. As the dollar is to the US in terms of inter-state tion there are around 80 fully equipped indus- Th is general raising of the entire productive trading, so the euro is to Europe in terms of trial parks. Information on banking facilities, base to European-level ideals not only spurs inter-country trading. transport, customs clearing and forwarding, economic growth, it has important cost effi cien- It is no wonder then that the Eurozone has shipping and cargo handling services, trans- cies for foreign fi rms based in Tunisia. become such a magnet for international invest- port, labour laws etc are provided rapidly and Th ere are around 50 US or US-related com- ment – nobody wants to be left out when there in detail. panies in Tunisia involved in the manufactur- are such rich pickings to be had. Th e problem Banking is modern and digitalised with a ing and hydrocarbon - mainly gas – sectors. is that the rush of investments, expansions and full range of ATM machines located around the Th is is a surprising low fi gure given the excel- new enterprises has resulted in soaring costs. country. Th e fi nancial sector is very solid and lent relations between the two countries and Th e fi erce competition for land and labour and the local currency, the dinar, has maintained Tunisia’s proximity to one of the world’s most the equally fi erce struggle for market foothold its value roughly equal to the dollar. Infl ation dynamic markets. One can only assume that the means that only the strongest and best equipped is very low, currently at 2.7%. word has not yet reached all the ears it should can hope to survive. While President Ben Ali’s administration have. President Ben Ali’s high profi le visit to Enter Tunisia. It is strategically situated to has pulled out all the stops to make Tunisia the the United States in February has hopefully serve this massive market and although it is not investor’s ideal destination, the government helped spread the word further. ■

An IC Special Report on Tunisia ■ Produced by IC Publications and published in Th e Middle East March 2004. 7 Coldbath Square, London EC1 4LQ. Tel: +44 20 7713 7711 Fax: +44 20 7713 7898

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