Tunisia Proposed Compact - Constraints Analysis

MCC’s evidence-based approach to its investments begins with a mutual understanding of a country’s main growth challenges. During the first phase of the compact or threshold program development process, MCC and the selected partner country, jointly conduct a constraints-to-growth analysis (CA). This analysis identifies the constraints to private investment and entrepreneurship that are most binding to economic growth in the country. The results of this analysis enable the country, together with MCC, to select activities most likely to contribute to sustainable, poverty-reducing growth.

The Constraints Analysis Report for the Tunisia Proposed Compact highlights the following binding constraints to economic growth: 

1. Excessive market controls of goods and services;
2. Restrictive labor market regulations; and
3. Inadequate and variable supply of water in interior regions.