Poverty and Inequality in Tunisia
Tunisia achieved rapid progress in reducing poverty in both rural and urban areas during the 2000s, continuing the progress made since independence in 1956. The incidence of extreme poverty (using the national poverty line) declined from 40% in 1960 to 4.6% in 2010. However, there are large geographic disparities among the regions because social conditions in Tunisia’s urban areas and coastal regions are much better than those in rural areas and the interior of the country.
Resulting estimates of the prevalence of poverty in Tunisia
As indicated in table 1, the poverty rate at the national level was 15.5% in 2010 compared to 23.3% in 2005 and 32.4% in 2000. Extreme poverty fell from 12% in 2000 to 4.6% in 2010. This significant decline in poverty could be explained by the strong consumption growth during this period. It rose 2.9%[1] annually faster than prices during 2000–10, leading to a remarkable decrease in the proportion of Tunisians living below the poverty line.
Despite this major reduction in poverty at the national level, the poverty rates are persistently higher in rural areas than in urban areas, and the gap between the two regions has worsened. For example, while the extreme poverty rate in large cities was four times higher than in the rural areas in 2000, it was seven times higher in 2010 (9.2% compared to only 1.3%).
Table 1: Prevalence of Poverty and Extreme Poverty Rates, 2000–10(%)
|
|
Poverty Rate |
Extreme Poverty Rate |
||||
|
2000 |
2005 |
2010 |
2000 |
2005 |
2010 |
|
|
National |
32.4 |
23.3 |
15.5 |
12.0 |
7.6 |
4.6 |
|
Large cities |
21.5 |
15.4 |
9.0 |
4.3 |
2.2 |
1.3 |
|
Medium cities and towns |
32.5 |
22.1 |
14.0 |
10.5 |
6.5 |
2.9 |
|
Rural areas |
40.4 |
31.5 |
22.6 |
19.1 |
13.4 |
9.2 |
Source: National Institute of Statistics, 2012 estimates.
Even the decline in absolute poverty within each geographic boundary has shown steep decline, the inequality of poverty between regions is striking. Rural areas have over 4 times the extreme poverty rate of large cities.
In conclusion, Tunisia has experienced a remarkable decline in its poverty rate, and is approaching the 2015 United Nations international target of about 3.0% as established in the MDG on extreme poverty, using the international poverty line of US$1.25 a day. Despite the progress achieved, however, poverty remains a major problem. Recognizing the strong correlation between unemployment and poverty, consistent reforms must be introduced including social transfers, promoting employment, sustained economic growth, and creating social economy opportunities.
[1] INS and African Development Bank, “Measuring Poverty, Inequalities and Polarization in Tunisia 2000–2010.”
Sofiane Ghali is a full professor of economics and Dean of the Higher School of Economic and Commercial Sciences of Tunis (ESSECT, University of Tunis). His fields of specialization are in the areas of industrial organizations and international economics. He has published papers in internationally refereed journals and contributed to several studies for Tunisian national agencies and organizations such as the ITCEQ and IACE, and international organizations like the World Bank, OECD, EIB, FEMISE, ERF, and GDN. He holds a Ph.D. in Economics.
Sami Rezgui is a full professor at the University of Manouba in Tunisia. He is specialized in the areas of macroeconomic policies, international economics, industrial economics and innovation policy. He is author of several research papers published in international journals and he is also consultant and contributor to various reports for international agencies (OECD, World Bank, Femise, Mediterranean Institute) and national institutions (Institute of quantitative Studies, Arab Institute of Business Managers, Ministry of Trade, Investment Agency Promotion). He Holds a Ph.D. in Economics.
