Countries Covered

North Africa, in a nutshell

This Sub-region displays as many distinct contexts as the number of countries composing it. North African countries share traditionally a number of socio-economic features, but their situation, and their reaction to challenges vary considerably. The 2003 Human Development Index (measuring the average achievements of a country in the areas of life expectancy, educational attainment and per capita GDP) had Libya at a medium-high level, due to its oil revenue; Tunisia, Algeria, Egypt and Morocco, in that order, towards the low end of the medium level; and Sudan and South Sudan at the low level.

Most North African economies have achieved good levels of macroeconomic stability and economic growth, and should maintain that performance in the near future. Most of them are also resolutely entering into the globalization process by liberalising, privatising, opening their economies further and upgrading them to face competition. However, this economic dynamism is in sharp contrast with their employment and welfare situation.

Unemployment is widespread and causes great concern in all seven countries. Addressing it is rendered all the more urgent by its correlation with poverty and social discontent, particularly given the use of those “arguments” by radical groups. The unemployment problem is likely to be exacerbated by a still-rapid population growth, the increasing participation of women in the labour market, the inevitable freeze in government hiring and the labour cuts expected to accompany the ongoing restructuring and privatisation processes. Youth are most affected. Labour market information is scanty, and the educational and training systems have difficulty matching the quality level and types of skills required by the market.

Poverty levels are generally high, but widely differ between countries. Social security systems have limited population coverage and are marred by inefficient, ineffective and sometimes distorted structures and practices. They appear inadequate to support the structural changes expected in the world of work; particularly where widespread poverty makes the social fabric thin.

Social dialogue, tripartism and participatory approaches are progressing and prove fundamental for success in welfare and employment promotion, as well as in the quest for competitiveness. Wide differences also appear here between countries, although there is scope for improvement in all seven.

Commitment to international labour standards is generally good too, and is another essential element in the quest for sustainable growth, true development and long-lasting competitiveness. Again, the seven North African countries display significant differences in their levels of commitment, and all have areas that merit further strengthening.

The challenges of globalization, and North Africa’s willingness to face them, constitute a positive stimulus for needed reforms.