Economy of Tunisia
The Tunisian government adopted a unified investment code in 1993 to attract foreign capital. More than 1,600 export-oriented joint venture firms operate in Tunisia to take advantage of relatively low labor costs and preferential access to nearby European markets. Economic links are closest with European countries, which dominate Tunisia's trade. Tunisia's currency, the dinar, is not traded outside Tunisia. However, partial convertibility exists for bona fide commercial and investment transaction. Certain restrictions still limit operations carried out by Tunisian residents.
History of Tunisia
As the 19th century commenced, the country remained quasi-autonomous, although officially still an Ottoman province. Trade with Europe increased dramatically with western merchants arriving to establish businesses in the country. In 1861, Tunisia enacted the first constitution in the Arab world, but a move toward a modernizing republic was hampered by the poor economy and by political unrest. Loans made by foreigners to the government were becoming difficult to manage. In 1869, Tunisia declared itself bankrupt; an international financial commission, with representatives from France, the United Kingdom, and Italy, took control over the economy.