by Michel Chossudovsky
January 20, 2011
General Zine el Abidine Ben Ali , the defunct
and deposed president of Tunisia is heralded by the Western media, in
chorus, as a dictator.
The Tunisian protest movement is casually described as the consequence of an
undemocratic and authoritarian regime, which defies the norms of the
But Ben Ali was not a "dictator". Dictators decide and dictate. Ben Ali was
a servant of Western economic interests, a faithful political puppet who
obeyed orders, with the active support of the international community.
Foreign interference in Tunisia's domestic affairs is not mentioned in the
media reports. The food price hikes were not "dictated" by the Ben Ali
government. They were imposed by Wall Street and
The role of Ben Ali's government was to enforce the IMF's deadly economic
medicine, which over a period of more than twenty years has served to
destabilize the national economy and impoverish the Tunisian population.
Ben Ali as head of state did not decide on anything of substance. National
sovereignty was foregone. In 1987, at the height of the debt crisis, the
left nationalist government of Habib Bourguiba was replaced by a new regime,
firmly committed to "free market" reforms.
Macroeconomic management under the helm of the IMF was in the hands of
Tunisia's external creditors. Over the last 23 years, economic and social
policy in Tunisia has been dictated by the Washington Consensus.
Ben Ali stayed in power because his government obeyed and effectively
enforced the diktats of the IMF, while serving the interests of both the US
and the European Union.
This pattern has occurred in numerous countries.
Continuity of the IMF's deadly reforms requires "regime replacement".
installation of a political puppet ensures the enforcement of the neoliberal
agenda while also creating conditions for the eventual demise of a corrupt
and unpopular government which has been draw upon to impoverish an entire
The Protest Movement
It is not Wall Street and the Washington based international financial
institutions which are the direct target of the protest movement. The social
implosion was directed against a government rather than against the
interference of foreign powers in the conduct of government policy.
At the outset, the protests were not the result of an organized political
movement directed against the imposition of the neoliberal reforms.
Moreover, there are indications that the protest movement was manipulated
with a view to creating social chaos as well as ensuring political
continuity. There are unconfirmed reports of armed militias conducting acts
of repression and intimidation in major urban areas.
The important question is how will the crisis evolve? How will the broader
issue of foreign interference be addressed by the Tunisian people?
From the standpoint of both Washington and Brussels, an unpopular
authoritarian regime is slated to be replaced by a new puppet government.
Elections are envisaged under the supervision of the so-called international
community, in which case candidates would be pre-selected and approved.
Were this process of regime change to be carried out on behalf of foreign
interests, the new proxy government would no doubt ensure the continuity of
the neoliberal policy agenda which has served to impoverish the Tunisian
The interim government led by acting president Fouad Mebazza is currently in
an impasse, with fierce opposition emanating from the trade union movement (UGTT).
Mebazza has promised to "break with past", without however specifying
whether this signifies a repeal of the neoliberal economic reforms.
The media in chorus have presented the crisis in Tunisia as an issue of
domestic politics, without a historical insight. The presumption is that
with the removal of "the dictator" and the instatement of a duly elected
government, the social crisis will eventually be resolved.
The first "bread riots" in Tunisia date back to 1984.
The January 1984
protest movement was motivated by a 100 percent hike in the price of bread.
This hike had been demanded by the IMF under Tunisia's structural adjustment
program (SAP). The elimination of food subsidies was a de facto condition of
the loan agreement with the IMF.
President Habib Bourguiba, who played a historical role in liberating his
country from French colonialism, declared a state of emergency in response
to the riots:
While gunfire sounded, police and army troops in Jeeps and armored personnel
carriers fanned out through the city to quell the "bread riot." The show of
force finally brought an uneasy calm, but only after more than 50
demonstrators and bystanders were killed.
Then, in a dramatic five-minute
radio and television broadcast, Bourguiba announced that he was reversing
the price hike.
(Tunisia: Bourguiba Lets Them Eat Bread - TIME, January
Following president Bourguiba's retraction, the hike in the price of bread
Bourguiba fired his Minister of the Interior and refused to
abide by the demands of the Washington Consensus.
The neoliberal agenda had nonetheless been instated, leading to rampant
inflation and mass unemployment. Three years later, Bourguiba and his
government were removed in a bloodless coup d'Etat, "on the grounds of
incompetence", leading to the instatement of General Zine el Abidine Ben Ali
as president in November 1987.
This coup was not directed against Bourguiba,
it was largely intended to permanently dismantle the nationalist political
structure initially established in the mid-1950s, while also privatizing
The military coup not only marked the demise of post-colonial nationalism
which had been led by Bourguiba, it also contributed to weakening the role
of France. The Ben Ali government became firmly aligned with Washington
rather than Paris.
Barely a few months following Ben Ali's November 1987 instatement as the
country's president, a major agreement was signed with the IMF. An agreement
had also been reached with Brussels pertaining to the establishment of a
free trade regime with the EU. A massive privatization program under the
the IMF-World Bank was also launched.
hourly wages of
the order of Euro 0.75 an hour, Tunisia had also become a cheap labor haven
for the European Union.
Who is the dictator?
A review of IMF documents suggests that from Ben Ali's inauguration in 1987
to the present, his government had faithfully abided by IMF-World Bank
conditionalities, including the firing of public sector workers, the
elimination of price controls over essential consumer goods and the
implementation of a sweeping privatization program.
The lifting of trade
barriers ordered by the World Bank was conducive to triggering a wave of
Following these dislocations of the national economy, cash remittances from
Tunisian workers in the European Union became an increasingly important
source of the foreign exchange earnings.
There are some 650,000 Tunisians living overseas. Total workers' remittances
in 2010 were of the order of
US$1.960 billion, an increase of 57 percent in
relation to 2003.
A large share of these remittances in foreign exchange
will be used to service the country's external debt.
The Speculative Hike in World Food Prices
In September 2010, an understanding was reached between Tunis and the IMF,
which recommended the removal of remaining subsidies as a means to achieving
Fiscal prudence remains an overarching priority for the [Tunisian]
authorities, who also see the need for maintaining a supportive fiscal
policy in 2010 in the current international environment.
Efforts in the last
decade to bring down the public debt ratio significantly should not be
jeopardized by a too lax fiscal policy. The authorities are committed to
firmly control current expenditure, including subsidies...
2010 Article IV Consultation - Staff Report
Public Information Notice on
the Executive Board Discussion; and Statement by the Executive Director for
It is worth noting that the IMF's insistence on fiscal austerity and the
removal of subsidies coincided chronologically with a renewed upsurge in
staple food prices on the London, New York and Chicago commodity exchanges.
These price hikes are in large part the result of speculative trade by major
financial and corporate agribusiness interests.
These hikes in food prices, which are the result of outright manipulation
(rather than scarcity) have served to impoverish people Worldwide.
in food prices constitutes a new phase of the process of global
"The media has casually misled public opinion on the causes of these price
hikes, focusing almost exclusively on issues of costs of production, climate
and other factors which result in reduced supply and which might contribute
to boosting the price of food staples. While these factors may come into
play, they are of limited relevance in explaining the impressive and
dramatic surge in commodity prices.
Spiralling food prices are in large part the result of market manipulation.
They are largely attributable to speculative trade on the commodity markets.
Grain prices are boosted artificially by large scale speculative operations
on the New York and Chicago mercantile exchanges. ...
Speculative trade in wheat, rice or corn, can occur without the occurrence
of real commodity transactions. The institutions speculating in the grain
market are not necessarily involved in the actual selling or delivery of
The transactions may use commodity index funds which are bets on the general
upward or downward movement of commodity prices. A "put option" is a bet
that the price will go down, a "call option" is a bet that the price will go
up. Through concerted manipulation, institutional traders and financial
institutions make the price go up and then place their bets on an upward
movement in the price of a particular commodity.
Speculation generates market volatility. In turn, the resulting instability
encourages further speculative activity.
Profits are made when the price goes up. Conversely, if the speculator is
short-selling the market, money will be made when the price collapses.
This recent speculative surge in food prices has been conducive to a
Worldwide process of famine formation on an unprecedented scale."
Global Famine, Global Research, May 2,
From 2006 to 2008, there was a dramatic surge in the prices of all major
food staples including rice, wheat and corn. The price of rice tripled over
a five year period, from approximately 600$ a ton in 2003 to more than 1800$
a ton in May 2008.
The Global Crisis: Food, Water and Fuel. Three
Fundamental Necessities of Life in Jeopardy.
For further details, see Michel Chossudovsky, Chapter 7 Global Poverty and
the Economic Crisis in Michel Chossudovsky and Andrew Gavin Marshall,
The Global Economic Crisis, The Great Depression of
the XXI Century)
The recent surge in the price of grain staples is characterized by a 32
percent jump in the FAO's composite food price index recorded in the second
half of 2010.
"Soaring prices of sugar, grain and oilseed drove world food prices to a
record in December, surpassing the levels of 2008 when the cost of food
sparked riots around the World, and prompting warnings of prices being in
An index compiled monthly by the United Nations surpassed its previous
monthly high – June 2008 – in December to reach the highest level since
records began in 1990.
Published by the Rome-based Food and Agriculture
Organization (FAO), the index tracks the prices of a basket of cereals,
oilseeds, dairy, meat and sugar, and has risen for six consecutive months."
World food prices enter 'danger territory' to reach record
high, The Guardian, January 5, 2011)
Against a background of rising food prices, the
the removal of the subsidies with a view to reaching the goal of
Manipulating the Data on Poverty and Unemployment
An atmosphere of social despair prevails, people's lives are destroyed.
While, the protest movement in Tunisia is visibly the direct result of a
process mass impoverishment, the World Bank contends that the levels of
poverty have been reduced as a result of the free market reforms adopted by
the Ben Ali government.
According to the World Bank's country report, the Tunisian government (with
the support of the Bretton Woods institutions) was instrumental in reducing
the levels of poverty to 7 percent (substantially lower than that recorded
in the US and the EU).
Tunisia has made remarkable progress on equitable growth, fighting poverty
and achieving good social indicators. It has sustained an average 5 percent
growth rate over the past 20 years with a steady increase in per capita
income and a corresponding increase in the welfare of its population that is
underscored by a poverty level of 7% that is amongst the lowest in the
The steady increase in per capita income has been the main engine for
poverty reduction... Rural roads have been particularly important in
helping the rural poor connect to urban markets and services.
programs improved the living conditions of the poor and also freed up income
and savings to spend on food and non-food items with resulting positive
impacts on poverty alleviation. Food subsidies, which have been targeted to
the poor, albeit not optimally, have also helped the urban poor.
Tunisia - Country Brief)
These poverty figures, not to mention the underlying economic and social
"analysis", are outright fabrications.
They present the free market as the
engine of poverty alleviation. The World Bank's analytical framework is used
to justify a process of "economic repression", which has been applied
Worldwide in more than 150 developing countries.
With a mere 7 percent of the population living in poverty (as suggested by
the World Bank "estimate") and 93 percent of the population meeting basic
needs in terms of food, housing, health and education, there would be no
social crisis in Tunisia.
The World Bank is actively involved in cooking the data and distorting the
social plight of the Tunisian population. The official rate of unemployment
is 14 percent, the actual level of unemployment is much higher. Recorded
youth unemployment is of the order of 30 percent.
Social services, including
health and education have collapsed under the brunt of the IMF-World Bank
economic austerity measures.
Tunisia and the World
What is happening in Tunisia is part of a global economic process which
destroys people's lives through the deliberate manipulation of market
"the harsh economic and social realities underlying IMF
intervention are soaring food prices, local-level famines, massive lay-offs
of urban workers and civil servants and the destruction of social programs.
Internal purchasing power has collapsed, health clinics and schools have
been closed down, hundreds of millions of children have been denied the
right to primary education."
Global Famine, op cit.)