As a new government begins its term in Tunisia, the leadership faces a potent combination of challenges that have the potential to derail some of the progress made since January 2011, when the country began its transition to democratic rule. From an economy wracked by the Covid-19 pandemic, to growing political polarisation, to persistent corruption, Tunisia's political future remains uncertain.
Tunisia has fared relatively well during the pandemic, initiating severe lockdown measures early on that helped keep the number of cases down. While the country has seen an uptick in cases following the reopening of the land, air and sea borders on June 27, the number of cases (more than 8,000 cases and at least 129 deaths as of Thursday) remains low compared to other Mediterranean countries. But the damage Covid-19 has brought to Tunisia is far greater than the disease casualties. Rather, the pandemic has left Tunisia with an unemployment rate of 20 per cent, GDP growth rate expected to decline by 7 per cent this year and a tourism industry a shambles.
Even prior to the pandemic, Tunisia’s economy was fragile and had just started showing signs of positive growth, with some of the best economic figures since the 2010-2011 uprisings. But the pandemic has spoiled much of the good news, making it imperative that the new government prioritise reform aimed at addressing economic growth and levelling the playing field for the country’s traditionally marginalised interior and southern regions, which have suffered disproportionately during the pandemic.
On September 2, the Tunisian parliament approved Prime Minister Hichem Mechichi's government. This is the 12th government since 2011 and the third attempt at government formation since the October 2019 elections that brought this parliament into power. Habib Jemli, who was tasked by the largest party in Parliament, the Islamist Ennahda, to form a government, failed to secure enough votes to move forward. His successor, Elyes Fakhfakh, was chosen by President Kais Saied in January and secured a vote of confidence in his government the following month, leaving the country without a functioning cabinet for four months. But Mr Fakhfakh's government was short-lived, and he was forced out by the President in July.
Mr Saied's choice of Mr Mechichi as Prime Minister surprised many within the political establishment, as he was not one of the candidates put forth by a political party. And while he had some previous governing experience, his most important quality seems to be that of his close ties to Mr Saied. Mr Mechichi is one of Mr Saied's advisers and had served, briefly, as interior minister in the previous government. His appointment signalled that Mr Saied is looking to tighten his control over the government and siphon power away from Ennahda, the controlling party within government, from whom the President has grown increasingly distant over the past few months.
And Mr Mechichi’s choices seem to have echoed his own selection. Rather than cobbling together a government representing various party interests, he chose to arrange a “technocratic” government, with ministers selected based on their technical skills, instead of political affiliation. While some ministers come from the bureaucracy, others are Saied loyalists, including some of the most high-profile posts. The Minister of Interior, for example, is a private lawyer who had served as a campaign co-ordinator for Mr Saied. The Minister of Defence is a former law professor, like Mr Saied. And the Minister of Foreign Affairs is one of his former diplomatic advisers.
Mr Mechichi’s decision to de-politicise the government could be a smart move. Mr Fakhfakh’s government failed, in part, due to growing polarisation. The October 2019 elections brought a whopping 31 parties into parliament, with the two largest parties – Ennahda and Qalb Tounes – holding only 24 and 18 per cent of seats, respectively. This reflects both the high amount of dissatisfaction of the public with the political establishment, particularly traditional parties, and the growing political polarisation within the country.
One trend that is both a result of and contributes to the weakness of political parties is the phenomenon of party tourism, where political figures jump from one party to another in order to stay in power. Additionally, parties tend to quickly shift their alliances, making it difficult to discern what a party actually stands for. For example, Ennahda and Qalb Tounes, which entered 2020 as political foes, with Ennahda vociferously condemning Qalb Tounes for its ties to corruption, have now turned into allies, united by their shared animosity toward President Saied.
The political landscape has also suffered from growing polarisation, which has manifested itself in sometimes violent interactions between politicians within the halls of parliament. Some of the most vicious attacks have been lobbied between the Karama Party, a conservative Islamist party pushing for a larger role of religion within the state, and Abir Moussi’s Free Destourian Party, made up largely of supporters of the former regime, who are fed up with the democratic transition. While the fight is often framed as a secularist-Islamist divide, the reality is far more complex, with fights over religion as well as the Tunisian identity and deeper social issues.
Regardless of the cause, the polarisation and fractured political landscape have made governing difficult and led to little likelihood that parliament or the government will be able to come to agreement on the issues necessary to fix the socio-economic problems that are plaguing the country.
Another major issue facing Tunisia today is the persistence of corruption – one of the key causes of the uprisings. While the country has made tremendous strides in dismantling the mafia-like structures that dominated the Ben Ali era, corruption has become democratised and many of the practices that allowed corruption to flourish have yet to change. The sole issue on which Mr Saied campaigned in the presidential race was fighting corruption. Thus, he has taken a particularly strong interest in this issue. And Mr Fakhfakh was brought down by corruption allegations, despite winning praise from Tunisians for his handling of the pandemic.
The Fakhfakh affair spiralled into a larger contest between him and the National Anti-Corruption Body. In what many saw as a retaliatory measure, Mr Fakhfakh fired its head, Chawki Tabib, who initially refused to leave his post, citing impropriety in his dismissal. Mr Mechichi and his government will need to work closely with the new head, Imed Boukhris, to keep the anti-corruption fight moving forward. This is an issue that Mr Saied continues to watch closely. Most recently, he established of his own committee to fight corruption and recover stolen assets. The committee will be houseed under the presidency, despite corruption falling clearly under the mandate of the prime minister, signalling that even with his close ties to Mr Mechichi, he wants to maintain strict control over the anti-corruption agenda.
Tunisia is embarking on a critical period. December will mark the 10th anniversary of the revolution and will shine a spotlight on the country's successes – and failures – of the past decade. As the second decade of transition begins, there are several signs of hope. First, the continued pride Tunisians, particularly youth, have in their country's accomplishments and dedication to the principles of the revolution shows that the public will not easily turn its back on the democratic transition. Second, despite its challenges, Tunisia continues to serve as a beacon of hope for people across the Arab world, both as a haven for freedom of speech and expression and a potent and living symbol that democracy can flourish in the Arab world.
However, passion, pride and hope are not sufficient to sustain a transition or boost the economy. Rather, Tunisia's new leaders should figure out a way to put politics aside and take on the difficult tasks necessary to thrust their country into the next decade as a healthy democracy.
Sarah Yerkes is a senior fellow in Carnegie’s Middle East Programme
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
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Classification of skills
A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation.
A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.
The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000.
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
Founders: Ines Mena, Claudia Ribas, Simona Agolini, Nourhan Hassan and Therese Hundt
Date started: January 2017, app launched November 2017
Based: Dubai, UAE
Sector: Private/Retail/Leisure
Number of Employees: 18 employees, including full-time and flexible workers
Funding stage and size: Seed round completed Q4 2019 - $1m raised
Funders: Oman Technology Fund, 500 Startups, Vision Ventures, Seedstars, Mindshift Capital, Delta Partners Ventures, with support from the OQAL Angel Investor Network and UAE Business Angels
Islamophobia definition
A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.
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Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
Children who witnessed blood bath want to help others
Aged just 11, Khulood Al Najjar’s daughter, Nora, bravely attempted to fight off Philip Spence. Her finger was injured when she put her hand in between the claw hammer and her mother’s head.
As a vital witness, she was forced to relive the ordeal by police who needed to identify the attacker and ensure he was found guilty.
Now aged 16, Nora has decided she wants to dedicate her career to helping other victims of crime.
“It was very horrible for her. She saw her mum, dying, just next to her eyes. But now she just wants to go forward,” said Khulood, speaking about how her eldest daughter was dealing with the trauma of the incident five years ago. “She is saying, 'mama, I want to be a lawyer, I want to help people achieve justice'.”
Khulood’s youngest daughter, Fatima, was seven at the time of the attack and attempted to help paramedics responding to the incident.
“Now she wants to be a maxillofacial doctor,” Khulood said. “She said to me ‘it is because a maxillofacial doctor returned your face, mama’. Now she wants to help people see themselves in the mirror again.”
Khulood’s son, Saeed, was nine in 2014 and slept through the attack. While he did not witness the trauma, this made it more difficult for him to understand what had happened. He has ambitions to become an engineer.
It Was Just an Accident
Director: Jafar Panahi
Stars: Vahid Mobasseri, Mariam Afshari, Ebrahim Azizi, Hadis Pakbaten, Majid Panahi, Mohamad Ali Elyasmehr
Rating: 4/5
Name: Colm McLoughlin
Country: Galway, Ireland
Job: Executive vice chairman and chief executive of Dubai Duty Free
Favourite golf course: Dubai Creek Golf and Yacht Club
Favourite part of Dubai: Palm Jumeirah
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Profile
Company: Justmop.com
Date started: December 2015
Founders: Kerem Kuyucu and Cagatay Ozcan
Sector: Technology and home services
Based: Jumeirah Lake Towers, Dubai
Size: 55 employees and 100,000 cleaning requests a month
Funding: The company’s investors include Collective Spark, Faith Capital Holding, Oak Capital, VentureFriends, and 500 Startups.