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Working Paper - 215 - A Regional Budget Development Allocation Formula for Tunisia
Inclusive growth which is both economic and social is crucial for Tunisia. It mainly requires high growth, an overall reduction of unemployment for young people in particular and the reduction of regional inequality through convergence. In fact, the objective of regional convergence, as a pillar of inclusive growth, is not only to allow redistribution from wealthy to poor regions in order to reduce regional inequality. It is also to consolidate the economic structure of the country and to contribute to a dynamic of growth and sustained regional convergence. In order to accomplish this, development budget allocation should take place according to specific rules and a clear process for the purpose of inclusive growth in all its forms, including regional convergence.