State‐society relations and industrial sustainable growth: The case of post‐Revolution Tunisia

Abstract

This paper investigates the effect of state‐society relations (SSR) in the industrial sector on the sustainable economic growth of post‐Revolution Tunisia. The empirical part of the paper depends mainly on qualitative data collected from fieldwork interviews with the most important actors and publications of civil society organizations. The paper suggests the presence of state capture as the defining characteristic of SSR in post‐Revolution Tunisia. The combination of having powerful tycoons, weaker state, and ineffectively organized social actors produced conditions that harmed sustainability. These settings allowed tycoons to violate environmental regulations and prevented Green innovation through the adoption of Green technologies. Yet, factors such as low value‐added creation, increased labor‐intensity, and low environmental awareness or prioritization all interact with state capture to lower sustainability. In those sectors where tycoons are active and dominant, competing social actors are incapable of effectively exploiting the presence of a freer political system, ultimately failing to successfully organize resisting coalitions, as evident in the textile sector. While higher resistance is witnessed where tycoons are not dominant as was the case in the phosphate sector, tycoons could still use the situation to their advantage.