Fostering Competitiveness and Diversification
Trebbi, and Subramanian 2002). Policies could include measures to improve the regulatory environment, reduce currency and financial risk, and avoid political and social instability. A truly independent and effective judiciary is a key determinant of a well-functioning accountability framework as it strengthens checks and balances and ensures an even rule of law. Throughout the MENA region, inconsistent and unequal enforcement of laws has eroded public trust in government and has negatively affected business confidence and foreign investment. Global Integrity ratings for the strength of the rule of law in MENA highlight enforcement of judicial decisions and judicial independence as two areas of particular weakness. Furthermore, in many countries in the region, regulations governing conflicts of interest in the national judiciary are weak or nonexistent. Many judiciaries in the MENA region suffer from a lack of independence and credibility. The problem does not stem from the countries’ constitutions, which generally support the principle of judicial independence. In practice, however, the judiciary in many countries is subject to political interference and operates under the thumb of an executive branch that dominates both the judicial and legislative branches. In some countries, judicial independence is further undermined by parallel systems of security—military courts or specialized networks within civil courts—that are entrusted with politically sensitive cases and represent the interests of the ruling elite. The judiciary in Tunisia was the object of serious criticism over its independence, neutrality, and relationship to the executive branch during the protests of 2010/11. Legally, the independence of Tunisian judges was guaranteed by the constitution, and there was, in principle, a higher judicial council to protect the judiciary. In reality, the executive constantly meddled in the judiciary, especially with respect to judicial appointments. Furthermore, in politically motivated cases, courts did not ensure due process and routinely issued convictions, including postprison terms of “administrative control” tantamount to internal exile. Such cases, although limited in number, further damaged the independence and credibility of the judiciary, preventing it from exercising real checks on the executive branch and exposing it to further corruption. The overall situation of the judiciary also had a detrimental impact on legal certainty and contract enforcement, undermining efforts to improve the business environment. These weaknesses are widely recognized and efforts to reform the justice sector are under way in some countries. Morocco has made justice sector reform a top priority and has taken initial steps to renew and strengthen its judiciary council. Jordan and more recently Morocco have invested heavily in court automation to foster transparency and efficiency. Reforms have not yet started in Tunisia, which has been focused on the
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