Tunisia PL-480 : update paper

The pre-1984 program was designed to support Tunisian agricultural programs and policies dedicated to accelerating production and farm income - balance-of-payments (BOP) support and budget support were not design elements of the program, nor were self-help measures targeted at economic policy reform. This set of objectives could not maintain continued assistance, because the Tunisian economy is very broad-based and agriculture represents only 14 percent of GDP. The objectives of the post-1984 program are unrelated to the old ones - Title I resources are programmed as a part of the total Mission resources, as a complement to ESF funds, targeted in the context of a severe structural adjustment process to provide a "safety net" within a "relatively sophisticated economy undergoing difficulties and needing budgetary and BOP support." "If the structural adjustment process fails, or is greatly prolonged, then the Title I resources used in the safety net program will have provided nutritional benefits for those most affected. If the government falls or greatly modifies its policies because of the hardships imposed by the structural adjustment process, then both the nutrition and foreign exchange benefits from Title I will alleviate some of those hardships." Under the new regime, subsidies are being reduced, and although the price increase will reduce the quantity of food demanded, which may eliminate the anecdotally reported wastage of past subsidized grain, it will also directly affect the poorest segment of the population. Thus, in such a transitional policy regime, any part of P.L. 480 resources which are targeted will contribute directly to nutrition, and will probably have some income effect, as will the restructuring of prices. (Author abstract, from PN-ABD-893)