By regional comparison, Tunisia remains a success story. Municipal elections were successfully held in 2018 and finally kicked off the important process of decentralization

The state remains an important player in the economy, through both regulation and the numerous state-owned enterprises that dominate some sectors. Powerful union resistance has blocked privatization of state-owned enterprises since the 2011 revolution.

Regional instability weighs down on Tunisia’s own stability. The ongoing conflict in neighboring Libya has pushed many Libyans to seek refuge in Tunisia, with Tunisia increasing spending on security measures to mitigate spillover effects from the conflict in Libya.

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