The popular uprisings in Tunisia and Egypt in 2011 were sparked by citizen frustration based on a range of grievances including lack of opportunity, dissatisfaction with local governance, corruption, and unemployment. The public self-immolation by Tunisian informal entrepreneur, Mohamed Bouazizi, was a shocking demonstration of the frustration and hopelessness felt by some sectors of society and led to calls for political and economic reforms to address citizen grievances. Today, however, North African economies still urgently need economic reforms to promote greater economic inclusion and provide opportunities for youth.
The Center on Development, Democracy, and the Rule of Law at Stanford, in cooperation with CIPE, has conducted a survey of 131 Egyptian and Tunisian entrepreneurs and business owners to find what that the greatest barriers are to the growth of businesses in these countries. As Global Entrepreneurship Week comes to a close, CIPE is releasing an Economic Reform Feature Service article by Amr Adly about the study to contribute to the continuing conversation on supporting entrepreneurs around the world.
Members of Tunisia’s business community share their concerns at a March 2014 policy roundtable.
We know that North African economies urgently need economic reforms, opportunities for youth, and greater economic inclusion. But what do we know about where the opportunities lie and – just as important – what are the greatest barriers that obstruct the growth of businesses?
A few salient insights emerged from a recent survey of 131 Egyptian and 100 Tunisian entrepreneurs and business owners, which was conducted by the Center on Development, Democracy, and the Rule of Law at Stanford in cooperation with CIPE. Many of the findings will come as no surprise — the business environment and entrepreneurial ecosystems have room to improve in both countries, and political uncertainty puts a drag on business. One major, policy-relevant finding is the need to address disparities in access to opportunity.
For vacationers looking for more than some sun and relaxation, there is an endless array of creative travel options, from dining tours to ecotourism, service projects to extreme sports. But what about the savvy headline reader who wants to make sure her hard-earned vacation fund supports a country that serves its citizens? Call it “democracy tourism.”
With so much choice for consumers, the world’s ministries of tourism need to work that much harder to attract foreign visitors. As a traveler, you’ve got the power! While looking for great food, wine, music, or beach destinations, world travelers can also make a statement with their dollars by choosing a country that is moving towards democracy.
A little intellectual for vacation research? Perhaps. But you can travel guilt-free, knowing the locals you meet on your trip live in a society that is working for them. Here are five destinations that satisfy both the avid traveler and the conscious world citizen.
Since the revolution, CIPE partner IACE – the Institut arabe des chefs d’entreprises, or Arab Institute of Business Leaders – has reached out to citizens from all walks of life in Tunisia – young entrepreneurs, business leaders, students, policymakers and more – to debate and search for solutions to Tunisia’s persistent economic challenges. To involve even more people in the exchange of knowledge and ideas, IACE just launched a new newsletter to share updates on Tunisia’s economic progress and upcoming events.
Among other features, the newsletter includes a new op-ed, The Second Republic, or the Third Conflict Cycle? The piece makes the urgent and vital point that even with a new Constitution approved and focus on upcoming elections, it is the economy that still matters most.
In 2011, both Tunisia and Egypt were rocked by popular protests against economic and political repression that ended in the ouster of their authoritarian governments. Three years later, how much progress have these states made in reforming their economies? And what has happened to the entrepreneurs whose grievances helped fuel these revolutions?
Reforming the Entrepreneurship Ecosystem in Post-Revolutionary Egypt and Tunisia, a report from CIPE and Stanford University’s Center for Democracy, Development, and the Rule of Law (CDDRL), attempts to answer these key questions. With this report, CIPE staff and IACE will engage policymakers and stakeholders in roundtable discussions to formulate policy recommendations in the coming weeks.
Working with CIPE Cairo staff and CIPE partner L’Institut Arabe des Chefs d’Entreprises (IACE) in Tunisia, lead researcher Amr Adly conducted an extensive study of existing literature and over 100 detailed interviews with entrepreneurs in each country to shed light on the obstacles and opportunities that comprise the entrepreneurial ecosystems in these post-revolutionary states.
The survey results paint a small yet detailed portrait of what life is like for the Egyptians and Tunisians trying to make ends meet in countries with increasing unemployment rates, among other worries. Dysfunctional and inaccessible regulatory structures, crony networks solidified by corrupt past regimes, and a lack of access to information for the private sector and policymakers are only a few of the areas for which Adly’s research provides nuance.
Who are the entrepreneurs that can withstand such an unstable environment? The majority of respondents in both countries affirmed that they do not trust formal contract enforcement, managed to start their business largely through self-financing due to a lack of access to loans, and endure high transaction costs as a result of inadequate institutions. They are men and women, younger and older, more or less educated, formally registered or informally operating, risking bankruptcy and/or jail time for a failed venture, running joint or solo endeavors—and they are all citizens for whom their government is not working.
Louis Delcart is the Director of Internationalisation and Innovation at VOKA – Flanders’ Chamber of Commerce Halle-Vilvoorde. He is serving as a mentor to the Chamber of Commerce and Industry of the Centre through CIPE’s Knowhow Mentorship program.
Tunisia is, for us Europeans, a touristic paradise, like Spain or Turkey. But it is also a country with an ancient civilization, dating from centuries before: Queen Dido, Hannibal and the Carthaginians, Pompey the Great and his African conquests, the Beys of Tunis and the corsairs attacking European ships from the pirates near Mahdia. They all are part of 3,000 years of rich history.
It was also in this country that the Arab Spring started in 2011. Within three weeks time, the popular uprising chased out the country’s autocratic leader, Ben Ali. A democratic process was started, with the election of Ennahda, a moderate Islamic party, to power. After three years, the love of the people for its new government is over. But Tunisia’s subsequent political development has been different from its neighboring countries: a technocratic interim government was recently formed and a new constitution is being edited, discussed, and voted on article by article in the parliament. Tunisia is – at least to this point — not missing its turn towards democracy.
It is in this context that I was invited by CIPE to mentor a chamber of commerce in this country. I was given a choice between two regional chambers, and I selected the one with the most elaborate strategic plan, the Chamber of Commerce and Industry of Centre (CCI-Centre) in Sousse, which made me curious.
Entrepreneurship is increasingly touted as a key ingredient to economic growth, job creation, and expanding opportunity, particularly for youth and women, in the Middle East and North Africa region. As a result, the number of initiatives supporting entrepreneurship in the region has increased exponentially, particularly following the Arab Spring.