Tag Archives: Economy

Ethics, Innovation among Tunisia’s Entrepreneurial Ambitions

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For months, the world has followed the unrest and protest in North Africa stemming from unemployment throughout Tunisia and Egypt. America.gov asked several Tunisian entrepreneurs to share their stories of business development amid the strife in their region.

Mr. Nazeh Ben Ammar is President of the Tunisian American Chamber of Commerce and multimedia company, Excellencia. He recently spoke on entrepreneurial challenges in the Arab world with Jonathan Ortmans, President of the Public Forum Institute and senior fellow at the Kauffman Foundation. Read about their conversation on the Policy Forum Blog.

A man kissing the Tunisian flag

A man kisses the Tunisian flag during a demonstration in Tunis against high prices and unemployment.

Two major events took place in my mother country, Tunisia, while I was in the US. The first was in 1987, when I was completing my bachelor degree at Purdue University. The second was less than a month ago, and I was in California spending four days heading a delegation of major Tunisian entrepreneurs in the IT sector who were taking inspiration from the Silicon Valley spirit to help Tunisians back home.

I am quite accustomed to this environment as I spent nearly two years at Stanford University. My trip back to Silicon Valley was like a pilgrimage for me, 20 years after graduation. Having written my masters thesis on innovation and entrepreneurship, I felt I had returned to my roots. I have applied my studies during my career by focusing on bringing technology, innovative approaches and the entrepreneurship culture back to Tunisia.

For more than a year and a half now I have presided over the Tunisian American Chamber of Commerce (TACC). The chamber has a major role to play in today’s world in developing the entrepreneurial spirit, increasing investment from within Tunisia and the United States, and increasing trade between the two nations.

As a leader of an NGO, a trade company in electronics, an air conditioning company and a real estate company, I felt a lot of institutional pressure coming from a bureaucratic, police-like administration with the stick on our head coming either from customs or the Tunisian IRS. Our doctrine has been to remain ethical and environmentally friendly, which creates quite a challenge when surrounded by unethical practices.

I am proud to be part of the first revolution of the 21st century. The most challenging part is yet to come, and we Tunisians need to bring back our Phoenician, Carthaginian and Mediterranean character and strength of mind. The world is watching us.

The Tunisian American Chamber of Commerce will delegate in Washington, DC March 6-10, 2011.

Tunisia’s Viral Spread of Compassion, Rebellion

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For months, the world has followed the unrest and protest in North Africa stemming from unemployment throughout Tunisia and Egypt. America.gov asked Bilel Bouraoui and several Tunisian entrepreneurs to share their stories of business development amid the strife in their region.

Portrait of Bilel Bouraoui with arms crossed

Bilel Bouraoui

My co-founders and I left the San Francisco Bay area for Tunisia two years ago to meet Tunisian venture capital funds managers and start an online social media business. We had no idea that we were going to witness one of the first social-media fueled revolutions.

We were aware of the Internet’s potential to change the region and the country where we were born, but we were far from grasping the extent to which the country’s tech-savvy, highly-educated youth would embrace it and integrate it into their lifestyle. It was obvious that a new generation of incredibly talented and creative young people had emerged. Yet, we had no clues to the plethora of skills they collectively showed.

It all started with Mohamed Bouazizi, a jobless young man from a remote town ending his own life after suffering an overwhelming injustice. As his story resounded so heavily in the hearts and minds of his region’s youth, they all stepped in to denounce a regime that seemingly no longer cares for its citizens.

That was the beginning of a month-long spiral during which the regime repressed its people, news and shocking videos spread over the Internet, and more people joined the revolution. Compassion and rebellion spread virally through social media networks. For weeks, young people across the country spent their days chanting in the streets and their nights exchanging information on the web until the whole nation was on the same wavelength. Pressure has mounted, people have died, and as more of them died, more became united and determined until the regime could no longer stand the pressure and collapsed.

Determination, compassion and creativity are the skills that helped the young people of my country achieve what once was considered impossible.

For an Internet entrepreneur, living the “Revolution 2.0” from the inside was a humbling experience. It is a promise for a better future, not only for Tunisia but for all nations with a young and well-connected population.

Turning Setbacks into Success and Sustainability

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For months, the world has followed the unrest and protest in North Africa stemming from unemployment throughout Tunisia and Egypt. America.gov asked several Tunisian entrepreneurs to share their stories of business development amid the strife in their region.

Headshot of Ziad Oueslati

Ziad Oueslati

Mr. Ziad Oueslati has studied at MINES ParisTech in France and at The Massachusetts Institute of Technology in America. He is a Founding Partner and CEO of TunInvest-AfricInvest Group.

Upon completing engineering studies in France and the US, I decided to return to Tunisia to contribute to its development and that of Africa. After a few years with an international bank, I created with two partners the first private equity boutique in North Africa. We shared the same drive to help indigenous entrepreneurs and small and medium enterprises to emerge, grow and excel. In time, we managed to expand our activities to a wide number of countries across the African continent, offering financing, coaching and strategic guidance to nearly 100 entrepreneurs and SMEs.

We learned during that period that the main ingredients for building successful and sustainable businesses in Africa – particularly in Tunisia – are transparency, ethics, interest alignment, market viability and strategic vision. We endeavored to reinforce management with the right people, properly incentivize them, seek larger markets through export strategies, promote social and environmental responsibility, and enhance corporate governance at all levels. This also meant avoiding partnering with politically exposed persons, no matter how enticing the opportunity or intense the pressure. That was particularly difficult in Tunisia over the last 10 years, given the rampant corruption of the family of the ex-Tunisian dictator.

This course has spared us from major setbacks after the regime change. Although we foresee difficulties in the short term, we are confident that the cleaner economic environment will restore investors’ confidence and boost private investment and entrepreneurship.

Tunisian entrepreneurs should invest in people and training and seek smart foreign partnerships that bring true added value and technology transfer. To be sustainable over the long term, they should also dare to go outside their borders to neighboring markets and beyond.

Competition, Expansion in Tunisia’s Future

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For months, the world has followed the unrest and protest in North Africa stemming from unemployment throughout Tunisia and Egypt. America.gov asked several Tunisian entrepreneurs to share their stories of business development amid the chaos in their region.

 

Ali Belakhoua stands among tech equipment

Ali Belakhoua

Ali Belakhoua is the Managing Director of STARZ Electronics. He is a Tunisian-American Electrical Engineer with a degree from the University of MO Rolla and was born in St. Louis, Missouri. For more information about Ali’s company, visit www.starzelectronics.com.

The future is in Tunisia. When my family returned to Tunisia in 2002, we realized that it was the perfect place for starting a small company. We founded STARZ Electronics, an electronic and cable assembly manufacturer, in Bizerte with only six employees. Now we count more than 80 permanent and temporary workers, and we are continuously re-investing in equipment to expand our capabilities.

Tunisia has an abundant supply of educated youth with a high work ethic. We have used this asset to grow our business and be very competitive. I would encourage young graduates to attain a well-rounded education with technical training and a focus on language skills. The government also provides a great deal of help for youth recruitment and training.

Our proximity to Europe makes Tunisia ideal for serving the entire European market and North America. Surface transportation is rapid and inexpensive between Tunisia and Europe, so we provide our customers a perfect alternative to subcontracting work in Eastern Europe. Our labor costs are almost as competitive as those in China. English and French language skills are also keys to our success.

The challenge is to continue to expand. We need to spread the word about Tunisia’s potential and highlight the countless success stories of businesses that have found the perfect operating environment here.  For companies moving operations from Europe or the U.S., Tunisia is an ideal alternative to China. 

Obama and the Snowstorm

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This morning, Washington is digging out from a winter storm that hit yesterday evening, covering the region in 8-12 inches of snow. The storm even affected President Obama’s return from a day trip to Manitowoc, Wisconsin, yesterday. 

Obama was in Wisconsin to discuss the policies he laid out in his State of the Union address on Tuesday night and stress the need for investment in clean energy.  On the production floor of Orion Energy Systems, a local firm that specializes in solar energy and energy-efficient technologies, Obama addressed workers and highlighted an unexpected tie-in to his speech the night before where he challenged the American people to seize a new “Sputnik moment” to spur innovation and development. 

“It was right here, almost 50 years ago — I couldn’t have made this up.  It wasn’t until I was on my way here that I found out that a chunk of metal came crashing down to the Earth right here…It turns out that it was part of a satellite called Sputnik that landed right here, and that set the Space Race into motion.  So I want to say to you today that it is here, more than 50 years later, that the race for the 21st century will be won.”

Obama toured Orion Energy and two other renewable energy factories in Wisconsin before departing ahead of schedule in an attempt to beat the snow storm hitting the East Coast of the United States.  Like many other D.C. commuters attempting to get home last night, however, Obama got stuck in traffic trying to get from Andrews Air Force Base, where the President’s plane lands, to the White House.  A trip that usually takes only 20 minutes took over an hour because the White House and police chose not to close streets for the President’s motorcade, which would have diverted resources from handling the snow emergency.

Read the full text of Obama’s speech on the American economy from Manitowoc.

U.S. Remains Committed to Haiti / Crisis in Lebanon / Green Jeans

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U.S. leaders look back, one year after a catastrophic earthquake devastated Haiti. Amid a political crisis in Lebanon, President Obama meets with and expresses support for Lebanese Prime Minister Saad Hariri. Regardless of the outcome, the U.S. calls the Sudanese referendum a “win-win” for both north and south. Chinese President Hu Jintao’s upcoming visit to the United States comes during a significant transition for the global economy. Meet Nadereh Chamlou, an Iranian-American economist who studies gender issues. And finally, learn about Levi’s new green jeans.

U.S. Support for Haiti Endures One Year After Quake
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President Obama and other U.S. leaders mark one year since a catastrophic earthquake devastated Haiti, pledging continued partnership and support as the country rebuilds. “As they forge ahead with the hard work of rebuilding their proud country, the people of Haiti will continue to have an enduring partner in the United States,” he says.

Obama Backs Lebanon’s Hariri
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Lebanese Prime Minister Saad Hariri’s visit to Washington coincided with the resignation of 11 Lebanese cabinet ministers who are allied with the militant group Hezbollah, which the United States has designated as a terrorist organization. Their resignations have forced the collapse of the government. President Obama met with Hariri at the White House and praised his efforts to “reach peace, stability, and consensus in Lebanon under difficult circumstance.”

U.S. Praises Sudanese Officials
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Regardless of the outcome, the referendum on southern Sudanese self-determination can present new opportunities for the people of both northern and southern Sudan, says Assistant Secretary of State for African Affairs Johnnie Carson.

Economic Reform in China
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The state visit of China’s President Hu Jintao to the United States January 19 comes during a significant transition for the global economy, China’s economy and for the United States, says Treasury Secretary Timothy Geithner.

The Cost of Gender Barriers
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Nadereh Chamlou is senior adviser to the World Bank’s chief economist for the Middle East and North Africa and an authority on the crucial difference women can play in the economic success of families, companies and countries. “Gender issues can no longer be seen as a political issue or an issue of culture. No, these are becoming now international issues,” says the Iranian-born Chamlou.

Levi's jeansWhen Jeans Turn Green
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Levi Strauss & Co. just rolled out a collection of pants that requires a fraction of the water normally used during production. The initiative is part of its broader campaign to shrink the overall environmental footprint of its global supply chain. “We know it’s vital to understand, and reduce, the impact our products have on the environment,” says Michael Kobori, Levi’s vice president of social and environmental sustainability.

Is Corruption Good for Business?

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Believe it or not, corruption can help entrepreneurs in some situations. Some research points out that bribes can grease the cogs of bureaucracy in highly regulated economies and make it possible for entrepreneurs to achieve their goal of starting a business. But make no mistake: in general, corruption is a deterrent to potential entrepreneurs, and countries should strive for less regulation rather than more corruption.
In sub-Saharan Africa, South Asia and other regions with widespread corruption and difficult business climates, the entrepreneurial spirit is often stifled, and when it is not, entrepreneurial energy is channeled into informal sectors outside formal legal and financial systems. Unregistered firms may thrive: in some countries the informal sector makes up around 40 percent or more of economies. But such businesses don’t contribute much to the public welfare as they don’t pay taxes and sometimes pose a danger to the public. Informal businesses themselves rarely if ever are capable of reaching their growth potential because of impediments of an informal economy: “higher capital and transportation costs, more storage problems, greater difficulty hiring quality staff and less ability to enforce contracts”.

Countries that want to tap entrepreneurial energy start with relaxing their regulatory regimes. This reduces the potential for corruption. For example, according to the World Bank’s Doing Business 2011 report, Kazakhstan, Tajikistan and Hungary have made significant progress in deregulating their economies, thereby improving conditions for starting a business. This promotes much stronger economic growth than the opposite strategy – increasing regulation and counting on entrepreneurs to make the system work by greasing the wheel.

Obama: American Automaker General Motors a “Success Story”

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After years of declining sales and management missteps, American Automaker General Motors appeared ready to collapse by the time President Obama took office in 2009. Such a collapse would have cost millions of American jobs and signaled the decline and possible death of an industry that once stood as an example of American manufacturing power. President Obama decided to invest $49 billion of American taxpayer money into General Motors to try to save the company.

The money came with conditions – a massive restructuring effort, firing the CEO and nearly 30% of management, getting concessions from workers on issues of pay and benefits – and would need to be paid back to the U.S. Treasury if the plan worked. Some Americans supported the president’s decision to invest in General Motors and some thought it was a bad idea and would result in a total loss of the $49 billion investment.

Yesterday, General Motor started selling shares to the public again for the first time since the government acted to save the company. President Obama spoke about the milestone saying:

“Today, one of the toughest tales of the recession took another big step towards becoming a success story. General Motors relaunched itself as a public company, cutting the government’s stake in the company by nearly half. What’s more, American taxpayers are now positioned to recover more than my administration invested in GM…And I have faith that America’s best days and America’s — and American manufacturing’s best days are still ahead of us.”

Haiti Braces for Tropical Storm / New U.S. Central Bank Initiative / Social Media, Social Change

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The U.S. is helping Haiti prepare for tropical storm Tomas. The Federal Reserve announces an aggressive new economic plan while the U.S. Treasury announces new sanctions on terror groups. Americans celebrate their heritage in many ways; explore a photo gallery showing some of them. And finally, watch a video of students from America and Kosovo discussing the potential of social media for effecting social change.

Haiti Braces for Storm, With U.S. Help
U.S. civilian and military personnel are helping the Haitian government prepare its people for tropical storm Tomas which is bearing down on the island nation. Of special concern: More than one million Haitians who have lived in temporary shelters after being displaced from their homes by the January 13 earthquake. At right, a man holds a child in a refugee camp.


New Action by U.S. Central Bank
The Federal Reserve has stepped in to boost the sputtering U.S. economy with an aggressive plan to buy $600 billion in U.S. Treasury securities aimed at reducing interest rates and spurring employment. Federal Reserve Chairman Ben Bernanke, right, says the buying of Treasury securities has helped in the past and looks to be effective again.

New Sanctions for Terror Groups
The U.S. Treasury Department announces actions against the financial and support networks of two Pakistan-based terrorist groups, including sanctions to seize or freeze the assets of their key leaders. The two terrorist groups, Lashkar-e Tayyiba and Jaish-e Mohammed, “have proven both their willingness and ability to execute attacks against innocent civilians,” says Under Secretary Stuart Levey.

Americans Preserving Cultural Heritage
Americans preserve music, dance and other cultural expressions by living and celebrating them in communities both large and small. This photo gallery explores ways Americans celebrate their cultural heritages. It includes shots from a Vietnamese Cultural Center in Boston, Massachusetts; a steel drum performance in Houston, Texas; and a Scottish Heritage Festival and Celtic Gathering in West Virginia. The photo gallery is part of an eJournal called “A Living Legacy: Preserving Intangible Culture”

Student Dialogue: New Media and Social Change
In the below video, students from the United States and Kosovo meet in Washington, D.C. to discuss the role of new media tools, such as Facebook and Twitter, and their profound effects on social change. One woman says that the international view of Kosovo as a whole has changed because observers see that young people in Kosovo are up-to-date on movies, culture and global issues and are not “all about war.” Another woman discusses how social media “gives people a voice who didn’t have a voice before.” See what others had to say.

[video href = "http://www.america.gov/multimedia/video.html?videoId=653165684001"]

Recapping the U.S. Election / Clinton’s Day in Asia / A Month to Honor American Indians

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The Republicans make big gains in U.S. midterm elections and President Obama offers his assessment. Secretary Clinton’s Asian travels take her to Malaysia and Papua New Guinea. Catch up with Brad Pitt and his effort to bring green housing to New Orleans. Learn about ArtsLink, a program that brings artists from around the world to the United States. Tajikistan is getting an energy boost. A 1,000-year-old Iranian poem is the inspiration for some awesome illustrations. And, it’s American Indian Heritage Month in America.

Election Gains for Republicans
Republicans gain at least 60 seats in the House of Representatives in U.S. elections November 2, more than enough to wrest control of the chamber from the Democrats. This means a divided government for at least the next two years, as Democratic President Obama shares power with Republicans in the House. Democrats retain control of the Senate, but with a reduced majority.

Obama: The Economy Hurt Democrats
The American electorate demonstrated its frustration with the state of the economy when it stripped Democrats of their majority in the House of Representatives and trimmed their majority in the Senate, President Obama says.

Clinton Praises Malaysia’s Religious Tolerance
Secretary of State Hillary Rodham Clinton is praising Malaysia’s commitment to religious tolerance during her visit to the Muslim-majority country. “Extremism is not a path to building sustainable prosperity, peace, stability or democracy – it only promotes conflicts and hardens hearts,” she says. 

Human Rights in Papua New Guinea
During a visit to Papua New Guinea, Secretary of State Hillary Rodham Clinton encouraged the country to address its human rights conditions and to strengthen anti-corruption efforts. Clinton also offered to help the government set up a sovereign wealth fund to manage resource revenue from oil and natural gas fields, in order to translate “natural resources into widespread prosperity.”

Green Homes Make it Right
Make It Right, a foundation created by actor and film producer Brad Pitt, builds energy-efficient, green homes to replace housing destroyed in New Orleans by Hurricane Katrina. In three years, the foundation has completed 50 homes in New Orleans’ Lower 9th Ward. Another 30 are under construction.

ArtsLink Fellows Come to America
Visual artists, photographers, filmmakers and arts managers from 14 countries are currently enjoying five-week residencies in the United States under awards offered by U.S.-based international arts organization, CEC ArtsLink.

Green Energy for Tajikistan
The U.S. embassy in Dushanbe, Tajik government agencies and international partners, are working together to bring alternative energy solutions to Central Asia. The projects include the use of solar, water and wind power to provide energy to remote locations.

Shahnameh on Display
The Smithsonian Institution is celebrating the Shahnameh’s 1,000 years with an exhibition of some of the best illustrations ever created for Iran’s greatest epic poem. The Shahnameh’s stories cover the reigns of 50 kings, real and imagined, from the creation of the world up to the Arab conquest of Iran in the 7th century.

American Indian Heritage Month
November is National American Indian Heritage Month, which celebrates the heritage and contributions of American Indians and Alaska Natives — the first Americans — to the history and culture of the United States. Right, members of the Alabama-Coushatta Indian tribe from Livingston, Texas, wait to perform at the New Orleans Jazz and Heritage Festival in April 2010.