Tunisia’s IMF Journey: Unveiling the Successes, Failures, and Ongoing Challenges.
Brief Introduction to the Study
Tax policy is one of the fundamental tools of economic policy that states use to achieve an effective balance between public resources and expenditures while ensuring a fair distribution of tax burdens across different segments of society. The International Monetary Fund (IMF) intervenes in this context by providing advice and recommendations within the framework of economic reform programs that it conditions on countries seeking necessary financial support.
In Tunisia, the IMF has played a pivotal role in shaping economic policies, particularly tax policies, especially after the 2011 revolution, when Tunisia relied on IMF programs to support its public finances. These programs have led to fundamental changes in the tax system, along with impacts on other financial and structural policies. However, the effects of these policies have sparked widespread debate, with differing opinions on their effectiveness in achieving economic growth and financial stability.
From the perspective of the government and economic authorities, the tax policies and other reforms recommended by the IMF have contributed to achieving some short-term fiscal objectives, such as improving budget deficits and increasing public revenues, making them essential for ensuring financial stability during a difficult transitional period. In contrast, the private sector and investors argue that these policies have had a negative impact on the business and investment environment, increasing financial burdens on companies and individuals, thereby affecting economic activity and creating market instability. Meanwhile, civil society and researchers focus on the broader social and economic effects of these programs, arguing that their implementation has placed a greater burden on lower-income groups, deepening social and economic inequalities. They also contend that these policies have failed to deliver tangible improvements in living standards and social justice.
In this context, academics and experts provide critical analyses based on data and comparative experiences. Some argue that IMF programs can be effective in achieving financial stability but require adjustments to better align with local conditions and Tunisia’s economic needs. Others contend that these programs have had limited or even negative effects on overall economic growth and social stability.
This study aims to provide a comprehensive analysis of the IMF’s programs in Tunisia, highlighting their successes, failures, and ongoing challenges, with a particular focus on tax policies as part of these programs. Additionally, the study seeks to evaluate the economic and social impacts of these policies based on diverse perspectives and reliable data.
By Aicha Karafi Hosni