The beneficiary of many World Bank development programs, Tunisia has made a concerted effort to privatize many state-run enterprises, and attract foreign investment. The Tunisian economy has seen growth in recent years, largely due to the expansion of the tourism sector, and the launch of an association agreement with the European Union in March 1998 will assist in accelerating economic development. In the next presidential elections, scheduled for November 1999, Ben Ali is expected to be re-elected for his third and final term, although opposition candidates will, for the first time, be allowed to run against him. Tunisia s unicameral parliament, the Chamber of Deputies, has 163 members also elected to five-year terms. The country is divided into 23 governorates and has 257 municipalities.
Tunisian law prohibits the existence of any political party based on race, religion, or language.
While these parties are recognized, their comparatively small size and lack of broad-based support hinder them from playing any significant role in the political scene. Privatization will continue to be a top priority as well, as witnessed by the recent sale of several state-owned cement companies. The government hopes that an increased effort to privatize will attract greater foreign interest, accelerate the transfer of technology, improve the fiscal balance, and stimulate the stock exchange. Growth in the coming year should be fueled by an expansion of investment as well as productivity improvements, specifically in the services sector. The IMF has predicted a strong 6.5 percent growth in 1999, and domestic consumption is also expected to increase, further stimulating the Tunisian economy.