ARTHUR YOUNG AND CO.
In light of an economic crisis caused by oil price reductions, the Tunisian government has recognized the need to reform and liberalize its economy.
1988

Abstract
This report defines the country"s economic needs and priorities, as well as opportunities for private sector development. It then summarizes USAID/Tunisia"s private sector strategy, which complements current or planned government actions and which focuses on reforms in three areas. Privatization is the Mission"s top priority, since the government currently owns 500 enterprises, many of which incur chronic deficits. Financial markets, which are closely linked to privatization, are the second priority, while trade liberalization is seen as necessary for alleviating Tunisia"s long-standing balance of payments problems. The report discusses the need for reform in each of these areas, outlines relevant government policies and guidelines for implementing them, and describes the extent of proposed A.I.D. support in the form of technical assistance, training, research, policy dialogue, and credit.
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Classification
USAID DEC