By Joseph E. Stiglitz
DAVOS – The whole world celebrates Tunisia’s democratic revolution, which has set off a cascade of events elsewhere in the region – particularly in Egypt – with untold consequences. The eyes of the world are now set on this small country of ten million, to learn the lessons of its recent experience and to see if the young people who overthrew a corrupt autocrat can create a stable, functioning democracy.
First, the lessons. For starters, it is not enough for governments to deliver reasonable growth. After all, GDP grew at around 5% annually in Tunisia over the last 20 years, and the country was often cited as boasting one of the better-performing economies, particularly within the region.
Nor is it enough to follow the dictates of international financial markets – that may get good bond ratings and please international investors, but it does not mean that jobs are being created or that standards of living are being increased for most citizens. Indeed,