Burden of “self-reliance” policy will be borne mainly by middle classes and poor

The burden of the policy of "self-reliance" will be borne mainly by the middle classes and the poor in 2023, according to a study carried out under the auspices of the Tunisian Forum for Economic and Social Rights (FTDES) on the "2024 draft budget and the problems of self-reliance.' According to the study's author, Abdejelil Bedoui, the unemployed, vulnerable workers (particularly those in the informal sector) and employees on fixed salaries that have not been adjusted to keep pace with the unprecedented rise in prices will be the first to bear a large part of the burden, which will fall mainly on low and middle income groups. According to Bedoui, the victims of this process of "self-reliance" include small artisans and very small and medium-sized enterprises (VSEs), who have been victims of successive external shocks and deprived of sufficient support from the state. There are also small farmers, who have been suffering for years from the continuous increase in the price of agricultural inputs and the pe rsistence of five consecutive years of drought. Bedoui acknowledged that although the professional and social conditions of these social groups are different, they remain the victims of the austerity policy, which is still being implemented in 2023, albeit at a slow pace that does not meet the dictates and demands of the IMF. This shows that the disagreement between Tunisia and this donor concerned mainly the timing and pace of reforms, rather than the content of these reform policies, which represents a major weakness in the self-reliance process. Bedoui recalled the austerity measures that are still being implemented this year, namely the limitation of job creation, especially in the public sector, in accordance with the IMF's dictates, and the reduction of the public sector wage bill as a percentage of GDP, as well as the reduction of public spending. This led to a decrease and deterioration in the quality of social services and a reduction in subsidy spending. According to the study, since 2011 the pr oportion of the Tunisian middle class has fallen from 60% to 30% of the population, living in a context of anaemic growth, public finances in crisis and inflationary pressures, as well as the commodification of all aspects of life. Only a small section of the middle class has become richer. These are mainly smugglers and large-scale operators in the informal economy, which has developed rapidly following the collapse of the state and the spread of corruption, while a larger proportion of the middle class has joined the ranks of the destitute and poor. As for the rest of this social stratum, Bedoui argues that it continues to suffer the pains of debt and its excessive costs in order to maintain the same social position Source: Agence Tunis Afrique Presse

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