« Dire » is the word that IMF spokesperson Gerry Rice used to describe Tunisia’s economic and financial situation. During an online press conference on May 19, Rice urged the Tunisian government to pursue a reform program as a way out of its current impasse. But is a debt-fuelled solution the only way out? Several NGOs do not believe so, and propose alternative solutions to pull the country out of the crisis.
In early May, an official delegation to Washington D.C. met with International Monetary Fund (IMF) officials for discussions on a new loan program for Tunisia. According to a leaked, confidential document allegedly produced by the Tunisian government which Bloomberg reported on (but did not publish), the government proposed removing food and energy subsidies as part of these discussions. In May and June, the prices of several consumer goods, including subsidized sugar, were raised or increased. Some have claimed these price increases were meant to “appease” the IMF as part of the ongoing loan discussions.
As ally countries and financial institutions have obliged government requests for continued support with new lending agreements, Tunisia concedes to loan upon loan to pay back its debts.
If important steps have been taken to improve management and optimize exploitation of State-owned agricultural lands and alleviate the debts of tenants who lease these properties, adopted measures are yet limited and incomplete … Working at the very heart of a sector upon which depends the country’s food security and, to a certain extent, the economy, Tunisian farmers have yet to gain substantial financial backing, adequate legal support, and due political recognition. Moving onward from a year of climatic fluctuations and political violence which have had devastating effects upon the sector, government officials and decision-makers will do well to recognize and invest in agriculture as the base from which sovereignty, security, and stability can grow.
