Europe encouraged to help Tunisia institute financial reforms

Europe should do more to support Tunisia to encourage swift reforms and set an example to the rest of North Africa, the regional head in Tunis of the African Development Bank told Reuters.

The executive, Jacob Kolster, said that he is disappointed with the outpouring of real financial support from European countries.

“Here is a golden opportunity to try and help North Africa to bring itself closer to what the occidental world believes is good governance,” he said.

He believes that in supporting the political-crisis-swept Tunisia to ensure reforms, other North African countries will be influenced.

Tunisia’s mass protests in January resulted in the ousting of President Zine El Abidine Ben Ali, and sparked revolutionary civil unrest in Egypt, Libya and other Middle East and North African countries.

Tunisia estimates it needs about $4 billion in foreign loans to ride out the turmoil after the revolution, in addition to the emergency support.

The civil unrest has hit the Tunisian economy hard; economic growth is expected to slow to 1 percent to 1.5 percent this year.

Tunisia, with a population of has an annual GDP of $100.3 billion and a GDP per capita of $9, 500. It is one of the low-middle income countries in the Arab world.

The country lacks oil and gas reserves that have been cushioning the blow for its neighboring oil-rich economies.

Europe has pledged to step up support for North Africa, Reuters reported, but it also has to meet demands elsewhere. Libya is currently at war, while Egypt needs aid after the mass uprising in February also led to economic shocks.

But Mr. Kolster still wants Europe to focus on aid to Tunisia.

“I would have expected massive grant support,” he said, for helping to build political institutions and civil society that would “cement the gains of what came out from the blood, sweat and tears of young people taking to the streets,” Reuters reported.

(Eman El-Shenawi of Al Arabiya can be reached at: [email protected])