Announcement of Tunisia Consultative Group Meeting on June 19, 1975

• 1818 H STREET. N.W .. WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 BANK NEWS RELEASE JUNE 19, 1975 TUNISIA: CONSULTATIVE GROUP MEETING The following announcement was made yesterday by the World Bank European Office. A meeting of the Consultative Group on development assistance to Tunisia was held in Paris on June 17 and 18, 1975, under the chairmanship of the World Bank. Attending the meeting were representatives of Belgium, Canada, Denmark, Finland, France, Germany, Japan, Kuwait, the Netherlands, Saudi Arabia, Spain, Sweden, Switzerland, the United Kingdom, the United States, the African Development Bank, the Arab Fund for Economic and Social Development, the Connnission of the European Communities, the European Investment Bank, the • International Monetary Fund, the United Nations Development Programme and the Development Assistance Committee of the Organization for Economic Coop·- eration and Development. The representatives of Japan, Saudi Arabia; the Arab Fund for Economic and Social Development and of the Commission of the European Communities were attending a meeting of the group for the first time. The Tunisian delegation was headed by his Excellency Moustapha Zaanouni, Minister of Planning. The group congratulated the Government on the recent economic growth of Tunisia, which had been about 9% per year over the 1970-74 periodo This had been achieved in a remarkably stable financial environment. The improvement in the investment climate in the private sector since 1970 and the recent increases in the price of major Tunisian exports, including petro- leum, phosphates and olive oil had been important factors in achieving this growth rate. While private investment had met targets midway through the fourth plan period, 1973-1976, the group noted that public sector investments were somewhat short of anticipated results, and the Tunisian delegation's statement that a further effort at strengthening the capacity for project identification, preparation and execution was in course. It was generally • felt that Tunisia's improved external position should enable the Government to continue to move forward on a gradual, albeit prudent, step-by-step basis, to the liberalization of the economy. I ...  -2- The group heard with satisfaction the Tunisian delegation's presentation on the Government's social development. policies and programs. • It noted that important progress had been made in <lea.ling with Tunisia's employment problem, but that underemployment was still a major issue. The group noted with interest the Government's new programs of regional and rural development and felt that they merited expansion and strengthening. The head of the Tunisian delegation explained that the harmonization of export-oriented growth in a market economy with equity in income distrib- ution was a major Government objective, which it sought to attain through various measures of economic and social legislation and a regional devel- opment strategy. Members of the group informed each other of the diverse and wide ranging programs of financial and technical cooperation which they are undertaking in Tunisia. The group noted that Tunisia had achieved signif- icant progress in its development while receiving less external assistance so far than had been projected in the fourth plan; yet there were indications that Tunisia's ~ecent gains in terms of trade were already being eroded, and the group therefore considered that the continuation of development assistance to Tunisia was fully justified. • The group agreed to have informal consultations among participants about the scope, timing, and venue of its next meeting. - 0 - •