This Country Assistance Evaluation was prepared in collaboration with the Islamic Development Bank. Tunisia has successfully shifted from resource-based exports dominated by oil and gas to manufactures and services. Real GDP growth has been consistently rising and Tunisians today enjoy more than two-and-a-half times the real incomes that their parents had thirty years ago. Rapid growth made possible a remarkable improvement in social indicators and a decline in the poverty rate from 40 percent in 1970 to 4 percent in 2000; with the remaining poverty predominately rural.