Introduction
As part of the Liqaaet conference series, which alternates between economic, political and institutional discussions, the issue of the rent-based economy in Tunisia takes center stage. With the participation of the ALERT association (Association de Lutte contre l'Économie de Rente en Tunisie), this conference aimed to define the notion of rente, analyze its manifestations in Tunisia and propose ways out of this pernicious system. The conference highlighted a major problem that hinders the country's economic development and deepens social inequalities.
The cash economy: a concept at the heart of the debate
The rentier economy is based on a simple principle: income is obtained without work or production, but through the monopolization of opportunities at the expense of others. It translates into privileges granted to a minority that locks out access to certain economic sectors.
In Tunisia, this phenomenon is part of a well-established corporatist organization. Each sector is regulated by a council made up of professional and administrative representatives, who set the rules for market entry, prices and taxation. This system prevents competition and hinders innovation.
One emblematic example is Tunisian feziers. In the 19th century, Tunisia dominated this market, supplying two-thirds of Egyptian imports. However, Tunisian producers were forbidden to industrialize their production. The result: in the face of foreign modernization, Tunisian exports plummeted by 95% in five years, and prices soared.
The impact of the cash economy in Tunisia
A rent-based economy kills innovation and prevents growth. A rent-based system relies on the sharing of a "frozen cake", shared between the same players instead of being reinvested to generate new opportunities.
The agricultural sector is a case in point. Farmers have to go through wholesale markets to which only unionized transporters have the right of access. These carriers have negotiated a tax of 2-6% on the goods, but in reality employ underpaid black market workers. This system penalizes farmers, consumers and precarious workers, while the union profits. As a result, less than 5% of goods pass through the official markets, favoring the black market and speculation.
Cash economy and political power
An extractive economic system is inextricably linked to closed political power. The cash economy thrives when a small group holds power and suppresses any economic or political competition.
The 2011 revolution in Tunisia was motivated by social and economic demands, notably employment and social justice. However, the absence of structural reforms has allowed the system of rents to continue.
An example of this interweaving of politics and the extractive economy is that of a former director of the Central Bank of Tunisia. When he published a commentary criticizing the liberalization sought by Ben Ali, he suffered immediate repression: public banks withdrew their funds from the Central Bank, and his collaborators were threatened and forced to resign. This episode illustrates how an authoritarian political system can only generate a closed economy and fuel popular discontent.
How can we combat the cash economy?
The aim of ALERT and the Liqaaet cycle is to put the general interest back at the heart of the debate. The aim is to break down the barriers between corporatist sectors and promote an inclusive economic model.
In a context of political regression, mobilizing for economic freedom becomes a challenge. Citizens need to be made aware of the direct impact of rents on their daily lives: high cost of living, lack of opportunities and economic stagnation. It's a question of involving the population and strengthening counter-powers.
The conference highlighted a number of avenues for combating the rent-based economy: promoting transparency and competition, encouraging innovation and supporting young entrepreneurs, strengthening institutions and fighting corruption, refocusing debate on the general interest, breaking down walls between economic sectors, and taking political action based on economic foundations.
The CRLDHT stresses that the cash economy in Tunisia only accentuates inequalities and slows down any democratic dynamic. As long as this system persists, economic and political rights will remain confiscated by a minority. Structural reforms are urgently needed to put an end to this system and restore equal opportunities for all.
