Abstract

In most economies, strategies that promote greater equity and less precariousness have become more than a necessity for reducing the effects of poverty. Thus, the focus is on inclusive growth by policy makers and institutions in charge of development and poverty alleviation. For Tunisia, there was a broad consensus on the need for structural reforms to promote inclusive economic growth that reduce social inequalities and regional disparities. This article aims to determine a synthetic indicator of inclusive growth in Tunisia. The method used is the Principal Component Analysis (PCA). The purpose of the latter is to provide weightings that take into account the variability of the data through time. The results found showed that Tunisia’s Inclusive Growth Index (IGI) deteriorated during the period from 1980 to 2017, falling from 5.35 to –3.40. The Tunisian government must embark on deep structural reforms to open up channels for a more egalitarian and inclusive society and put the country on a path to more sustainable development.

Highlights

  • Recent years have been signaled by a series of economic crises such as the 2008–2009 global financial crisis, the European sovereign debt crisis (2010–2012) and the commodity price corrections (2014–2016)

  • The results found showed that Tunisia’s Inclusive Growth Index (IGI) deteriorated during the period from 1980 to 2017, falling from 5.35 to –3.40

  • For a long time and before the revolution, Tunisia had been characterized by a solid growth compared with the African continent with an average annual GDP growth rate of around 5% (1960–2010) but this rate was only 1.5% during the period from 2011 to 2015

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Summary

Introduction

Recent years have been signaled by a series of economic crises such as the 2008–2009 global financial crisis, the European sovereign debt crisis (2010–2012) and the commodity price corrections (2014–2016). This recession marked the beginning of a period of slow economic growth, coupled with pronounced attention to the more unequal distribution of its gains. For a long time and before the revolution, Tunisia had been characterized by a solid growth compared with the African continent with an average annual GDP growth rate of around 5% (1960–2010) but this rate was only 1.5% during the period from 2011 to 2015 This growth has for a long time been higher than the average recorded by MENA countries

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