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 at the low level.

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

Unemployment is widespread in all six countries, and in all of them causes great concern. Addressing it is rendered all the more urgent by its correlation with poverty and with social discontent; and given the use of those “arguments” by radical groups. The unemployment problem is likely to be exacerbated by a still rapid population growth, women’s increasing labour market participation, the inevitable freeze in government hiring, and the labour shedding expected to accompany the ongoing restructuring and privatization processes. Youths are most affected. Labour market information and orientation are 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 differ widely between countries. Social security systems have limited population coverage, and are marred by some 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 make 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 appear here too between countries, although in all them there is scope for improvement.

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. Here too countries display significant differences, and all have areas that merit strengthening.

In general, the challenges of globalization that North Africa appears determined to take up are constituting a good stimulus to undertake the needed reforms.