This ETF assessment report on Human Capital Development in Tunisia forms part of the fifth round of the ETF Torino Process. Tunisia has been taking part in this process since 2010. Prior to this assessment, a series of self-assessments took place in Tunisia from 2018 to 2020. The Observatoire National de l'Emploi et des Qualifications (ONEQ: National Observatory for Employment and Qualifications) acted as the national coordinating body, bringing together VET stakeholders both at national and sub-national levels. As a result, a draft national Torino Process report 2020 (Zaibi, on behalf of MFPE and ONEQ, publication upcoming) and eight regional Torino Process reports[4] One report for each region participating in the IRADA programme (http://irada.com.tn/), namely Gabès, Médenine, Gafsa, Kasserine, Sfax, Sidi Bouzid, Bizerte and Jendouba.
were produced, the latter in close cooperation with the EU-funded IRADA programme.

The ETF assessment process included an extensive phase of desk research based on the national and regional reports, a literature review of relevant studies, gathering of statistical data and the preparation of an issue paper containing an overview of themes to be discussed in the present report.

Within the regional policy dialogue, the findings and recommendations of the ETF Torino Process assessment provide elements to inform future regional initiatives within the Southern and Eastern Mediterranean area, as well as the ongoing discussions on post-2020 programming. The findings of this report will also feed into the current dialogue, led by the Union for the Mediterranean and the European Commission, on monitoring the progress of the 2019 Ministerial Declaration on Employment and Labour that underlines a range of issues, including the importance of reforming education and training systems in a way that responds to the challenges presented by ensuring employment, employability, and decent work.[5] For the importance of investment in education, higher education and training systems, including VET, as well as lifelong reskilling and upskilling of workers to prepare them for constant changes in the world of work, see Ministerial Declaration on Employment and Labour, April 2019, p. 4.
A cross-country report will consolidate all the outcomes from the Southern and Eastern Mediterranean Torino Process assessments and will contribute to the monitoring and evaluation framework intended to be developed as a concrete output of the Declaration.[6] The labour ministers asked the Union for the Mediterranean Secretariat to coordinate, with the contribution of volunteering countries, the setting up of a framework for national monitoring processes, notably by organising meetings, providing relevant information, contact making and networking, as well as cooperating with countries' stakeholders and international organisations. The ministers invited the European Commission and the relevant EU agencies, in particular the ETF, to provide relevant expertise to this work. See the Ministerial Declaration on Employment and Labour, paragraph 29, April 2019.

The present assessment takes a broader perspective on human capital development in a lifelong learning perspective. After introducing the wider context (chapter 1), the assessment provides an overview of the key human capital development challenges in Tunisia (chapter 2). Chapter 3 concentrates on the VET system, as Tunisian employers demand skilled workers and technicians, and VET graduates stand better chances on the labour market. It elaborates on the two major challenges of external and internal consistency of the VET system and suggests recommendations for how these could be improved in the mid to long term. Chapter 4 provides a conclusion.

In Tunisia in 2011, thousands took to the streets amid frustration of poverty, joblessness and corruption. Millions of people hoped it would inspire change in Tunisia. Since then, the country has been successfully undertaking a democratic transition of its policies and institutions. A new constitution was adopted in 2014 (JORT, 2015). However, challenges stemming from the dire socio-economic situation, as well as 'security concerns related to violent extremism and terrorism' now risk overshadowing the significant progress achieved so far (Colombo and Meddeb, 2018, p. 35).

Tunisia has a young population, with 39% being under 25 years of age in 2018 (Eurostat, 2020, p. 19). Developing a meaningful career path for these young men and women and allowing them to engage in gainful economic activity is a major concern for Tunisia. A weak economy hampers people's participation in the labour market and leads to rising unemployment, informal sector jobs and migration, which affects young people disproportionately (UNECA, 2019). In view of the high unemployment levels, more than 100 000 young people have left Tunisia since the revolution.

In terms of human development, Tunisia ranked 95^th out of 189 countries in the UNDP Human Development Index 2017, qualifying as a country with 'high human development'. Since the Arab Spring, socio-economic conditions have improved, although the perception among the population may be different, as prices of products and services have gone up, unlike their salaries. Progress has been made in terms of access to health and social services, as noted in the voluntary national report on progress vis-à-vis the Sustainable Development Goals (United Nations High-level Political Forum on Sustainable Development, 2019). However, despite the emphasis on social policies, 3.8% of the Tunisian population fall into the category of extremely poor people (MDICI, 2017). In addition, major disparities remain between the regions in the north of the country and along the coast on the one hand and the interior and rural regions on the other.

Tunisia is one of the Arab countries at the forefront of acknowledging women's rights. Recent initiatives include a new law on gender mainstreaming in institutions (Dahmani, 2018). However, Tunisian women continue to suffer from discrimination, both socially and in terms of their labour market integration, despite women often having higher levels of education.

Tunisia has adopted a number of ambitious reform strategies. The overarching strategy is the National Development Plan 2016–2020 (MDICI, 2017).

Responsibilities for the different subsystems of education in Tunisia are distributed over three ministries – the Ministère de l'Éducation, the MESRS and the MJSIP. The latter has recently taken over responsibility for VET and employment, previously under the MFPE.[7] The technocratic government, which was being negotiated at the time of writing in September 2020, did not foresee an MFPE but rather a secretariat dealing with 'insertion professionnelle', which operates under the MJSIP. However, this government is expected to be in place for a temporary period only.
Each ministry has analysed key problems and defined appropriate measures for their subsectors. They receive state funding to implement actions that emerged from the National Development Plan 2016–2020 (MDICI, 2017). The plan highlights the need for cooperation between the three ministries with a view to coordinating and mutually reinforcing initiatives within the context of lifelong learning. A new commission for human capital development, composed of representatives from all three ministries, has been set up. However, its effectiveness is yet to be seen (see also Section 3.1).

Faced with deteriorating levels of skills and high unemployment among young graduates, the government is looking to overhaul the general education and VET systems with a series of reform measures. The aim of the Strategic Plan for the Education Sector 2016–2020 (Ministère de l'Éducation, 2016) is to increase quality through improved teacher training, upgraded curricula and infrastructure, and a new framework for private partnerships. Reforms are expected to address the major challenges at both basic and secondary levels, which include high dropout rates, a lack of infrastructure, and low-quality teaching. For VET, the MFPE, in collaboration with the social partners, designed an ambitious National VET Reform Strategy 2016–2020, which incorporates 14 major projects (see Section 2.5.2 for further details).

Public institutions have taken ownership of these strategies. However, the pace of taking concrete actions has remained slow, despite substantial funding support from the EU and other donors. Frequent changes of governments and their political agendas present serious barriers for the Tunisian administration to push forward reforms in a consistent manner. Also, the new concepts and methodologies, as well as pilots introduced by donors, may have overstretched local capacity for sustaining and mainstreaming reform initiatives. Most strategies are close to their expiry dates, which provides a great opportunity to undertake in-depth evaluations and re-adjust the post-2020 policy priorities.

At higher education level, the Strategic Plan for the Reform of Higher Education and Scientific Research 2015–2025 (MESRS and CNR) sets out five main objectives: improve the quality of teaching and the employability of graduates; promote research and innovation; foster good governance and optimise resource management; review university planning to ensure a better regional balance; and develop teacher training.

Furthermore, in May 2019, the MFPE and the social partners, in collaboration with the ILO, launched discussions for a new National Employment Strategy for the period 2020 to 2030. Prior to that, a first background analysis had been published (ILO, 2018a).

Donors provide great technical and financial contributions to reform. Consultations are organised through so-called 'coordination tables' in different areas. The MFPE increased their donor coordination efforts in 2019 by mapping ongoing support programmes. For donors, there might be an issue of moving from coordination to cooperation – or from exchanging information on their plans and projects to integrating them, for example through joint programming and implementation processes in line with national policy priorities and capacity. Local actors should remain in the driving seat and identify the next steps in the reform process and related funding gaps.