One of them is the increasing unemployment. In this report, the factors behind this problem and their possible remedies will be looked upon.After years and years of heavy losses, Tunisia is now in the phase of economic and financial stability. Practical planning related to economy, finances and the budget of the country has started to show its early fruits. Although this development is moderate, yet it is continuous. The county depended hugely on its oil reserves, phosphates, automotive parts production and tourism. The dissimilar economy of this country is pivoted on tourism, agriculture, mining and minerals, production and export to the European Union. The economic reforms launched in the latter half of the 1980s were aimed at making the economy of Tunisia sound and stable. Did those reforms turn out to be good? This is the question whose answer is searched by many and it has been asked by the Tunisian people as well, especially the youth. The youth of this Arab Republic is highly capable and educated. The youngsters are keen to play their part in the development of their country. They had been under severe pressure and stress due to the unavailability of proper jobs and are forced to live a life below their educational standards. (Stone. McCraw. 2007)The Tunisian government used to control the economy very firmly and had several policies aimed at tightening its control over the economic affairs of the country. This was not appreciated by the international business community. Ultimately the new government has to make certain reforms to ensure that the economy of the country becomes investor friendly, thus paving a way to privatization. The government now has a simplified tax system, which has enabled the local and foreign investors to shift their investments to Tunisia.
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