Socialist Resistance

An archive of socialistresistance.org, 2002–2022

International: IMF 'Economic Medicine' led to mass poverty and unemployment

 |  Socialist Resistance magazine, issue 63  |  printed page 23

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Basel Saleh gives some of the economic and political background to events in Tunisia. and unemployment

Mass and spontaneous demonstrations erupted on Friday, December 17th in the city of Sidi Bouzid when Mohammad Bouazizi, a 26 year-old, doused himself with gasoline and set himself on fire after a female police officer slapped and spat on him. The only crime Bouazizi committed was that of being a street vendor selling vegetables and fruits without a permit, in a country where neoliberal economic policies failed to provide economic opportunities to Bouazizi and thousands of others like him. Bouazizi' s attempted suicide, which comes hard on the heels of police humiliation and confiscation of his only source of income, reveals the utter despair prevalent today among Tunisia's population especially college graduates. Twenty-four years of ruthless corruptions, dictatorship, and neoliberal economic policies led to wealth being concentrated in the hands of very few people connected to President Zine El Abidine Ben Ali and his wife's family. Bouazizi, a college graduate, was trying to live in dignity and provide for his family by becoming a street vendor despite living in a country that is considered an economic miracle and one of the African lions by western economic monitors and analysts.

The miserable economic conditions in the interior of the country, lack of employment opportunities and political freedoms pushed Bouazizi, like thousands of other young men and women in the Maghreb countries, to the margins of society. Tunisia's national unemployment rate, which understates the true unemployment situation, stands at 14%.However, the youth unemployment rate (those between15-24 year-old) is at 31%. The income share of the top 10% is approximately 32%, and the top 20% of the population controls 47% of Tunisia's income. Tunisia's inequality is so severe that the bottom 60% of the population earns only 30% (the top 40% take home 70% of the income). Still, the IMF describes the government management of the economy and the uneven economic growth which benefited mainly northern and coastal cities while marginalizing the interior of the country as a "prudent macroeconomic management."

The despicable behaviour of the police officer described above is not uncommon in Tunisia and is condoned by the police state that ignores basic human rights, shows no respect for the dignity of its citizens, and does not tolerate any signs of dissent. Poverty, unemployment and oppression have pushed yet another young man to commit suicide just few days later after Bouazizi's attempt.

The epidemic of youth unemployment, inequality, political repression, and lack of any meaningful freedoms inflamed solidarity among the population which took to the streets in a spontaneous and unplanned organic protests. Within days of the attempted suicide by Bouazizi protests spread across the country and reached the capital Tunis and are still ongoing even in the face of total national media blackout and police brutality which resulted in the killing of an 18 year-old. This is not the first time the dictator of Tunisia Zine El Abidine Ben Ali has faced street anger over joblessness and economic misery during his 24-year reign, but this is by far the most serious challenge to his rule. About three years ago in January 2008, his security apparatus crushed protesters in the southern mining town of Redhayef when workers and young people protested wages and unemployment. At that time, over 300 people were arrested as a result of the protests. However, this time the desperation among the population has reached the boiling point. Aided by social media, some protesters launched a Facebook page to document riots and share news although the government promptly shuts down any protest-linked websites. The protesters are fed up with the status quo of a self-enriching and corrupt ruling family which is the de facto governing system in the Middle East and A western ally Respect for human rights and freedom of the press is almost nonexistent in Tunisia. The Heritage Foundation Index of Economic Freedom labels Tunisia as 'mostly unfree' nation and marginally close to being repressed -its lowest score. Transparency International ranks Tunisia among its seriously corrupt nations with a score of 4.3 out of 10 (10 being free of corruption and 1 as most corrupt). This is no surprise in a country where the government controls almost all aspects of people's lives. Young people are especially tightly controlled and monitored. Even fields of study in post-secondary education are decided by the government where the Ministry of Education, Higher Education and Scientific Research decides in which field of study students will be placed.

Although the protests that spread across the country took on the form of social unrest for the first few days, they

23 * International rapidly metamorphosed to become a mass political rally by the people. The protesters were on the streets calling openly for the president Zine El Abidine Ben Ali to leave office by holding signs in Tunisian Arabic dialect that read "Yezzi Fock" (Ben Ali, it is enough) which has become the protesters' political slogan. Labour and industry unions which played an active role in public life since independence from France are also supporting the protesters. Ben Ali, nearing 80, was very aware of the gravity and the real threat to his grip on power. His first reaction was to pre-empt the protesters by firing some local officials, replace some ministers in his cabinet, and then immediately promising more investment and job creation completely oblivious to his record after 24 years in power. When these empty promises failed to deflate the protesters' anger, he resorted to the routine policies of riot police and explicit threats directed to his citizens. Facing the most serious unrest in the history of his rule, he took to the airways and gave a televised address in response to the demonstrations. He vowed to punish "the minority of extremists" whom he blamed for the riots (as he calls them) and also indicated that these protests "will have a negative impact on creating jobs. It will discourage investors and tourists which will hit jobs." It appears that the President's main concern is the tourism industry which is tightly controlled by his family and that of his wife as revealed by several Wikileaks concerning the economic and financial corruption of the first family.

The Tunisian dictator and his family were touted by Western governments as an example of a stable and progressive North African Muslim nation. The neoliberal economic policies are hailed as prudent and wise by the IMF yet these policies primarily benefited his family, that of his wife in addition to other well-connected wealthy Tunisians. In one incident of corruption revealed by Wikileaks, the Son-in-Law of the President purchased a 17% share of a bank just before it was to be privatized and then sold the shares at a premium. U.S. diplomatic cables underscore that success in the Tunisian economy is directly related to connection to the first family. Income and regional inequalities are on the rise in Tunisia. Job creation and widespread prosperity promised by defunct orthodox economic dictates never trickled down to the masses or even materialised.

The Tunisian Government is an important ally for the U.S. in its resource-driven