Tunisia Tunisia Background Following independence from France in 1956, President Habib BOURGUIBA established a strict one-party state. He dominated the country for 31 years, repressing Islamic fundamentalism and establishing rights for women unmatched by any other Arab nation. In recent years, Tunisia has taken a moderate, non-aligned stance in its foreign relations. Domestically, it has sought to defuse rising pressure for a more open political society. Tunisia Economy Tunisia has a diverse economy, with important agricultural, mining, energy, tourism, and manufacturing sectors. Governmental control of economic affairs while still heavy has gradually lessened over the past decade with increasing privatization, simplification of the tax structure, and a prudent approach to debt. Real growth averaged 5.4% in 1997-2001 but slowed to 1.9% in 2002 because of agricultural drought, slow investment, and lackluster tourism. Increased rainfall portends higher growth levels for 2003, but continued regional tension from the war in Iraq will most likely continue to suppress tourism earnings. Tunisia has agreed to gradually remove barriers to trade with the European Union over the next decade. Broader privatization, further liberalization of the investment code to increase foreign investment, improvements in government efficiency, and reduction of the trade deficit are among the challenges for the future. Tunisia Location Northern Africa, bordering the Mediterranean Sea, between Algeria and Libya Tunisia Flag red with a white disk in the center bearing a red crescent nearly encircling a red five-pointed star; the crescent and star are traditional symbols of Islam
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