2023-09-09 09:40:45
In Tunisia, the shortage of basic commodities is the result of multiple factors, including political instability, dependence on imports, currency depreciation and inefficient management. To resolve this crisis and improve the lives of Tunisians, economic and political reforms are necessary to ensure equitable distribution of basic necessities and stimulate economic growth.
As Tunisia struggles to face a range of economic and social challenges, a worrying crisis has been growing for some time: the shortage of basic products.
Across the country, rapidly emptying supermarket shelves, incessant price hikes and queues to obtain basic necessities have become daily life for Tunisians.
This situation highlights the growing pressures facing the country and raises concerns about economic and social stability. Certainly, the Covid-19 pandemic and the Russian-Ukrainian conflict were the straw that broke the camel’s back with the disruption of global supply chains, but this acute crisis is not limited to these blatant economic aspects , it also touches on other, more complex questions.
Political instability, dependence to imports…
Indeed, Tunisia, like many other countries, has faced a growing shortage of basic products in recent years. This crisis has profound implications for the Tunisian population, both economically and socially, and several factors have contributed to this worrying situation.
At the top of the list is the crisis and political instability that has reigned in the country since the 2011 revolution. Nowadays, Tunisia continues to go through a period of political instability, marked by frequent changes of government. and persistent political tensions. This instability has hampered the implementation of coherent economic policies and discouraged foreign investment.
There is also dependence on imports. For centuries, Tunisia has relied heavily on imports for many commodities, including grains, oil and gas. Over the years, fluctuations in global commodity prices have a direct impact on the costs of these imports, which can lead to price increases in the domestic market.
To this set, we add another factor closely linked to its predecessor and which cannot go unnoticed, namely the depreciation of the currency.
The observation is there, and we cannot deny it! The depreciation of the Tunisian dinar against the main foreign currencies (notably the euro and the dollar) has also contributed to the increase in prices of imported products. This had an impact on the purchasing power of Tunisians and increased pressure on basic necessities.
Furthermore, international studies have not failed to point the finger at ineffective government subsidies. Indeed, for years, the Tunisian government has maintained subsidies on certain basic products to mitigate the impact on consumers. However, these subsidies have often proven to be “ineffective” and “costly”, as they benefit privileged groups rather than the poor.
This is not to mention corruption and inefficient management within government agencies responsible for commodity distribution which have contributed to disruptions in the supply chain. There have been repeated reports of diversion of subsidized products, fueling the crisis.
Need for structural reforms
Certainly, resolving the problem of shortage of basic products in Tunisia is a complex challenge that requires an approach that is both global and coordinated. In the opinion of several experts, to resolve the crisis of shortage of basic products in a sustainable manner, Tunisia must consider structural reforms. This could include a review of subsidies, measures to boost local production and reduce dependence on imports, as well as efforts to combat corruption. First of all, it is essential to diversify the sources of supply of essential basic products, which will reduce its dependence on a few suppliers. This could involve seeking new trading partners and promoting local agriculture to increase domestic production.
Reform can also include improving logistics infrastructure, as investing in transport and logistics infrastructure can help reduce distribution costs and ensure a more stable supply of basic products.
Furthermore, it is high time to create strategic reserves of basic products—as is already the case in several countries—to be able to cope with temporary supply disruptions. These reserves can be managed by the government or by private actors under regulation.
And as agriculture is the bedrock of the Tunisian economy, this sector must be promoted given that strengthening local agriculture and promoting national food production can reduce dependence on imports. This involves investments in agricultural technologies, farmer training, support for small farms…
In this same framework, we must encourage the diversification of the Tunisian economy to be able to reduce its vulnerability to external shocks. This means investing in sectors other than agriculture to create jobs and stimulate economic growth.
Tunisia should also develop economic policies aimed at strengthening its resilience to economic and financial shocks (in particular by developing adequate insurance mechanisms), collaborate with international partners to guarantee continuous supply in the event of a crisis (this may include agreements bilateral or regional on commodities), invest in agricultural research and development, which can improve productivity and resilience to climate shocks, thus contributing to more stable food production…
Finally, and no less important, effective grant management. If subsidies are used to keep prices stable, it is essential to manage them effectively and transparently to avoid abuse and waste. But in parallel with this measure, we must also raise awareness among the population about the management of food resources, the reduction of food waste and the importance of food security, which can contribute to better use of basic products.
Certainly, these measures require long-term planning, government coordination and adequate financial resources which must be integrated into a strategic vision of economic development.
This reform project can also help alleviate the problem of shortage of basic products in Tunisia, but it requires sustained commitment and continued efforts on the part of the government, the private sector and civil society as well as transparent and responsible management of resources.
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