Tunisia To Speed Up Privatization

Layla Trabeli: The Queen of Theft

The Tunisian government since the rule of Ben Ali in 1986 has embarked on a massive privatization scheme. A majority of previously state-owned and operated industries have since fallen into private hands and are now run for profit - with, naturally, benefits for the nation's economy.

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For the year 2010, the Tunisian government has stated that it will speed up privatization of state enterprises:

Tunisia plans to sell off shares in 12 state-owned companies this year including a steel firm and the national oil distributor, the state privatisation office said on Monday.

The North African country sold shares in only one state-owned firm in 2009, and this year's much bigger sell-off suggested the government was speeding up plans to liberalise the economy as it tries to boost growth.

I will not analyze the economic implications of such a move, but will only concentrate on the political issues that are salient here. Although privatization has rendered economic benefits, it has also been plagued by nepotism and corruption from the beginning. Normally, when a state is going to privatization a corporation it will open up the sale to private bids and the best offer will win. In Tunisia, it has not been that simple. Instead, the ruling elite has been able to walk away with whole industries without making a single bid. President Ben Ali's family has taken over numerous industries. But it is the Trabelsi in-laws who are most notorious in their corruption and greed. Both these family are from humble origins, but now command billions due to being handed over profitable state companies that they now manage for themselves.

There isn't even a subtlety to it. Not even a phony bid. Instead, a state enterprise is given to a, say, Trabelsi for free and now that person has just taken over a multi-million $ firm. Simple as that.

An incredible amount of previously state companies now rest in Ben Ali and Trebelsi hands. And this speeding up of privatization is probably about a last grab effort by both families - especially the latter.

What's the 2010 speed up about? The Tunisian government stated a short while back that given the global recession, it would slow down privatization of state firms since they usually entail layoffs once they transfer into private hands (naturally, since the government tends to be inefficient). Thus it made no sense to privatize firms and lead to unemployment during tough times. But this recent announcement has entirely put aside that logic and abruptly so. As noted, 2009 saw only one privatization due to the recession, but now all of a sudden 12 will be handed to private "buyers". My reasoning: it is widely believed that the 73-year old Ben Ali is several sick and may die so. Without him in power, the Ben Alis and Trebelsis lose their ability to loot the country.

Thus they want to speed up privatization while Ben Ali is on his deathbed in a last effort to secure as much economic clout and money they can.

Nothing - no concern for countrymen or nation - will stand in the way of their greed and theft.