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 modern Tunisia
In the 1980s the economy performed poorly. In 1983 the International Monetary Fund (IMF) forced the government to raise the price of bread and semolina, causing severe hardship and protest riots. In this situation, the Islamic Tendency Movement (MTI) under Rashid al-Ghannushi provided popular leadership. Civil disturbances, including those by the Islamists, were repressed by government security forces under General Zine El Abidine Ben Ali. The government persisted in following its program; Ben Ali was named prime minister.