Columbia International Affairs Online: Working Papers

CIAO DATE: 04/2014

Promoting Inclusive Growth in Arab Countries: Rural and Regional Development and Inequality in Tunisia

Mongi Boughzala, Mohamed Tlili Hamdi

February 2014

The Brookings Institution

Abstract

Regional disparities and inequality between the rural and the urban areas in Tunisia have been persistently large and perceived as a big injustice. The main regions that did not receive an equitable share from the country’s economic growth, as compared to the coastal regions that are highly urbanized, are the predominantly rural western regions. Their youth often have to migrate to the cities to look for work and most of them end up with low-paying and frustrating jobs in the informal sector. The more educated among them face a very uncertain outlook and the highest rate of unemployment. This bias is strongest for female workers and university graduates living in the poor rural regions. The purpose of this paper is to study the underlying causes and factors of these disparities and to discuss policies and measures that may allow these regions to benefit from faster and more inclusive growth.