The main objectives of the Country Environmental Analysis for Tunisia are: (a) to facilitate the integration of environmental issues into sectoral development strategies, which could affect the sustainability of development in particular with respect to economic growth, poverty reduction, and quality of life, and (b) to improve, adapt, and strengthen institutional capacity and decision-making processes in line within this integration requirement and the international economic context. Three outcome and progress indicators, which despite being incomplete and could be improved, made it possible to assess the trends and environmental progress for this study: The cost of environmental degradation is estimated at 522 million Tunisian dinars, or 2.1 percent of gross domestic product (GDP)-the lowest rate among the Mashreq and Maghreb countries. Adjusted Net Savings (ANS) rose from 2.6 percent of GDP in 1980 to 19 percent in 1999, with a prevalence of around 15 percent and steady growth between 1993 and 1999. In the Environmental Sustainability Index, Tunisia ranks 61st among 142 countries rated. Its ranking places it in the middle of the countries of the Mediterranean Basin and first in the group of southern Mediterranean countries.