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  • Tunisia: Understanding Successful Socioeconomic Development

    Tunisia: Understanding Successful Socioeconomic Development A Joint World Bank–Islamic Development Bank Evaluation of Assistance A Joint World Bank–Islamic Development Bank Evaluation of Assistance

    THE WORLD BANK

    THE ISLAMIC DEVELOPMENT BANK

    W O R L D B A N K O P E R A T I O N S E V A L U A T I O N D E P A R T M E N T I S L A M I C D E V E L O P M E N T B A N K O P E R AT I O N S E VA L U AT I O N O F F I C E

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  • ENHANCING DEVELOPMENT EFFECTIVENESS THROUGH EXCELLENCE AND INDEPENDENCE IN EVALUATION

    The Operations Evaluation Department (OED) is an independent unit within the World Bank; it reports directly to the Bank’s Board of Executive Directors. OED assesses what works, and what does not; how a borrower plans to run and maintain a project; and the lasting contribution of the Bank to a country’s overall development. The goals of evaluation are to learn from experience, to provide an objective basis for assessing the results of the Bank’s work, and to provide accountability in the achievement of its objectives. It also improves Bank work by identifying and disseminating the lessons learned from experience and by framing recommendations drawn from evaluation findings.

    OPERATIONS EVALUATION DEPARTMENT

  • Tunisia: Understanding Successful Socioeconomic Development A Joint World Bank–Islamic Development Bank Evaluation of Assistance

    2005

    The World Bank Washington, D.C.

    Islamic Development Bank Jeddah, Saudi Arabia

    W O R L D B A N K O P E R A T I O N S E V A L U A T I O N D E P A R T M E N T

    I S L A M I C D E V E LO P M E N T B A N K O P E R AT I O N S E VA LUAT I O N O F F I C E

    http://www.worldbank.org/oed http://www.isdb.org

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  • i i i

    v Acknowledgments

    vii Preface, Prefacio, Préface

    ix Executive Summary, Résumen, Résumé

    xvii Acronyms and Abbreviations

    1 1 Tunisia’s Socioeconomic Development: Progress Achieved and Challenges Ahead 1 Background 3 Poverty and Social Conditions 5 Debt Burden and External Assistance 6 Meeting the Challenges of Globalization

    9 2 World Bank Assistance Program 9 World Bank Assistance Strategies 10 Economic and Sector Work 13 Lending

    17 3 The Development Impact of World Bank Assistance 17 Macroeconomic Stabilization, Growth, and Structural Reforms 22 Human Development and Progress toward MDGs 25 Poverty Alleviation and Rural Development 29 Outcome, Sustainability, and Institutional Development

    31 4 Contributors’ Performance 31 Tunisia’s Own Central Role 32 The World Bank’s Performance 33 Other Development Partners 35 Exogenous Factors

    37 5 Recommendations

    39 Annexes 41 A: Statistical Annexes 79 B: List of People Met on Mission in Tunisia (and World Bank and IMF

    Staff Interviewed) 83 C: Guide to OED’s Country Assistance Evaluation Methodology 87 D: Management Action Record

    Contents

  • 89 Attachments 89 1: Islamic Development Bank—Tunisia Country Assistance Evaluation 93 2: Report from the Committee on Development Effectiveness (CODE)

    97 Endnotes

    99 References

    Boxes 7 1.1 Mise à niveau Program (Enterprise Restructuring and Upgrading) 11 2.1 World Bank Strategies 23 3.1 Tunisia’s Progress in Meeting the Millennium Development Goals

    Tables 3 1.1 Tunisia’s Export Diversification, 1980–01 3 1.2 Main Macroeconomic Indicators 4 1.3 Poverty and Inequality Trends in Tunisia, 1990–2000 4 1.4 Selected Human Development Indicators in Tunisia and Comparator

    Countries 6 1.5 Tunisia: Net Receipts of External Financial Resources, 1990–01 13 2.1 Distribution of World Bank Commitments by Sector (FY90–03) 14 2.2 IBRD Proposed and Actual Lending, FY97–02 14 2.3 OED Evaluation Findings of Recently Evaluated Projects by Value 18 3.1 Tunisia and Comparators: Per Capita Income Indicators 21 3.2 Privatization by Sector, in Million Tunisian Dinar 28 3.3 Northwest Mountainous Areas Development Project: Selected Results

    from the 2000 Survey

    Figures 10 2.1 Bank Commitments, Disbursements, and Transfers 21 3.1 Business Climate Indices for Tunisia, MNA, and OECD 25 3.2 Education System Expansion at the Post-Basic Level 26 3.3 Net Primary Enrollment 26 3.4 Illiteracy 26 3.5 Infant Mortality

    T U N I S I A : U N D E R S TA N D I N G S U C C E S S F U L S O C I O E C O N O M I C D E V E L O P M E N T

    i v

  • v

    Acknowledgments

    Fareed M. A. Hassan was the Task Manager for this report and acknowledges with thanks the con- tributions by Adil Kanaan, Elaine W. Ooi, and Is- abelle Tsakok (consultants). Ibrahim A. Elbadawi and Jorge Garcia-Garcia reviewed the report. Gonzalo Salinas provided statistical information, and Janice Joshi, administrative support.

    The evaluation is the second cooperative ef- fort with the Islamic Development Bank, fol- lowing the joint evaluation of the Jordan program. The support of Bader Eddine Nouioua, Adviser, Operations Evaluation and Audit, IDB, and Djel- loul Al-Saci, Head, Operations Evaluation Office,

    IDB, is greatly acknowledged. Gregory K. In- gram, Director-General, Operations Evaluation; Ajay Chhibber, Director, Operations Evaluation Department; and Kyle Peters, Senior Manager, OEDCR, provided overall guidance, with sub- stantial input into the formulation of the report.

    Special thanks are due to the officials of the government of Tunisia for their valuable assis- tance and to the civil society and donor repre- sentatives interviewed in the country. The report has also benefited significantly from helpful and constructive suggestions from numerous World Bank, IDB, and IMF staff.

    Director-General, Operations Evaluation: Gregory K. Ingram

    Director, Operations Evaluation Department: Ajay Chhibber

    Senior Manager, Country Evaluation & Regional Relations: R. Kyle Peters

    Task Manager: Fareed M.A. Hassan

  • PREFACE

    This Country Assistance Eval- uation (CAE) on Tunisia is the second cooperative effort with the Operations Evaluation Office (OEO) of the Islamic Development Bank, following the joint OED-OEO assessment of the Jordan Program. The two institutions carried out a joint assessment of Tunisia’s eco- nomic and social development since 1990 and the challenges facing the country. There will be two separate reports; the assessments of each in- stitution’s assistance program were prepared in parallel. This report ben- efited from consultations and com- ments from OEO staff, and the two evaluations generally agree on their analysis. The Executive Summary of the Islamic Development Bank’s re- port is attached (Attachment 1).

    A joint OED-OEO mission visited Tunisia in September 2003. The visit was facilitated by arrangements made by the staff of the Tunisian Ministry of Economic Development and International Cooperation. Their cooperati