Studies on Growth with Equity - Tunisia: A New Social Contract for Fair and Equitable Growth

It is often argued that the cost of social equity is less economic growth, highlighting the supposed trade-off between these two goals. The crisis that erupted in 2008, which was preceded by rising social inequalities, has shown that this is simply not the case. In fact, if properly designed, equity-enhancing policies can also promote prosperity and reduce the risk of future crises. The aim of the 'Studies on Growth with Equity' is to show how such policy complementarities can be achieved.

The Tunisian revolution of January 14, 2011 provides a stark example of the limits of economic growth without social justice. The country’s strong growth performance and stable macroeconomic environment covered deeply-rooted structural imbalances such as widespread inequality, high unemployment, and limited opportunities to obtain decent work. This study puts forth a strategy to develop a more inclusive model of growth that centres on stronger quality job creation especially for young people, improved governance and transparency, and greater social dialogue in order to achieve a more socially and economically sustainable growth.