Tag Archives: méditerranée

Mediterranean: Information, a “public good” made accessible by FEMISE

(article appeared in http://ecomnewsmed.com, by Rédaction Ecomnews Med on 27/09/2019)

More than twenty countries celebrate the International Day of Universal Access to Information on 28 September. Focus on the action of the FEMISE network, which aims to promote access to information for citizens and decision-makers in the Mediterranean countries.

Information is a universal good, which is shared and transmitted, a right to which all citizens should have access. A fact that the FEMISE network of researchers is convinced about. Thus, to promote this sharing of information in the countries of the Mediterranean, the Think Tank provides its solutions: “At FEMISE, we promote free access to information. We believe that it is a public good and we encourage all our partners and all the members of the network to do the same, “assures Maryse Louis, General Manager of FEMISE. How ? By establishing partnerships with civil societies and think tanks to disseminate knowledge or providing open access to all online publications produced by the associated researchers. “FEMISE participates in the dissemination of information because the network embodies the link between research and operators who need to rely on the results of this research,” says Patricia Augier, coordinator and president of the Scientific Committee of FEMISE.

Work for positive social change

The objective: to provide information to citizens and decision-makers in the countries of the region and thus promote sustainable and inclusive development. “Access to information is crucial in the Mediterranean to try to reach more inclusive societies. FEMISE is addressing these issues to try to influence policy makers, “says Charlotte François, from Clermont-Auvergne University.

Making information public and sharing it with others provides a better mechanism for monitoring and reporting, as well as better sharing of experiences and sharing of lessons learned,” says Karine Moukaddem, Policy Intern at Union for the Mediterranean and associate researcher at FEMISE.

Information is a crucial issue for democracy, since it requires decision-makers to be accountable. Transparency that can work for positive social change and help develop the countries of the region.

Because, as Karine Moukaddem concludes, “access to information is the key to improving and optimizing political practices“.

Article produced in partnership with EcomNews Med

Financial Inclusion and Stability in the MED Region: Evidence from Poverty and Inequality (report FEM44-01)

Despite a significant growth in profitability and efficiency, the Middle East (MED) well developed banking system seems to be unable to reach vast segments of the population, especially the underprivileged ones. To this end, the onus of policymakers in the region is to create effective opportunities for financial inclusion, and subsequently poverty and income inequality reduction. Whether they have succeeded in their endeavor is an empirical question we seek to address in this research project. Using Panel data, GMM and GLS econometric models, and a sample of six MED countries (Al GMM and GLS econometric models and a sample of six MED countries (Algeria, Egypt, Jordan, Lebanon, Morocco and Tunisia) over the period 2002-2018, this paper assesses empirically the impact of financial inclusion on income inequality, poverty, and financial stability in the MED region. While the empirical literature on the region is relatively scarce, this paper adds to that literature by bridging a significant existing gap, especially in the aftermath of the recent financial and debt crises and the recent political, social, and military turmoil that have been unfolding in several MED countries.

Our empirical results have shown that financial inclusion decreases inequality but has no significant effect on poverty. Inflation and population increase both inequality and poverty. Other empirical results have shown that the secondary enrollment ratio, female labor force participation and the trade openness variables are found to significantly affect poverty. While the empirical evidence indicates that enhanced financial integration is a contributing factor to financial instability, an increase in financial inclusion and in population contributes positively to financial stability. This study has also shown that greater access to financial services is positively contributing to the resilience of the banking system deposit funding base. This is particularly important during times of financial crises. Enhanced resilience of bank funding supports overall financial stability of the banking sector and the entire financial system. The latest debt and financial crises have shown that financial liberalization and inclusion in MED may not always be conducive to poverty reduction and financial stability improvements.

Our empirical findings have important policy implications. MED policy makers face tradeoffs when deciding whether to focus on reforms to promote financial development (financial inclusion, innovation, financial access, etc…) or whether to focus on further improvements in financial stability. However, synergies between promoting financial development and inclusion and financial stability can also exist. The results of this study could help foster a better policy to reform the financial sector by demonstrating how broadening the use of banking can have a direct impact on income distribution.

The recent and uncoordinated liberalization attempts have rendered MED financial and banking sectors more vulnerable to the recent financial and debt crises. In particular, the fast attempts to liberalize and financially integrate the Egypt, Jordan, and Morocco’s financial markets with the more mature markets of the United States and Europe has had devastating consequences on their banking sectors and stock markets.

When deciding on whether to focus on reforms to promote financial development (financial inclusion, innovation, access to financial services, etc.) and reduce poverty and income inequality, or on whether to focus on further improvements in financial stability, MED policy makers will have to bear in mind, the tradeoff that exits between financial liberalization and integration and financial stability. Carefully designed financial liberalization policies need to be timely introduced in order not to destabilize the financial system. Moreover, the latest debt and financial crises have shown that financial liberalization and development may not always be conducive to poverty and inequality reduction on the one hand, and to stimulate growth and development, on the other. On the contrary, and in many instances policies aimed at fostering financial development and innovations have triggered recessions and in many MED countries have had detrimental effects on growth and development and have further widened the gap between the rich and poor.

The MED region stands at a crossroad, with changes sweeping many of its countries and creating an environment conducive to financial and economic reform. Having missed a number of opportunities to reduce poverty and inequality, to introduce extensive financial and institutional reforms, and make substantial progress in financial inclusion, more effort still needs to be devoted in the future. The social movements in the region and the earlier series of financial crises have exposed the weaknesses of the adopted financial development model and have raised questions as to how to reshape financial policies most effectively and create the space to address the needs of everyone in society, reaching even the most deprived. The slow pace of financial development and liberalization policies adopted in most MED countries in the past has yielded a relatively acceptable level of economic growth and, in general, managed to meet the goals of economic and financial stability. Oil booms have generated acceptable growth rates, with oil-abundant MED countries delivering much more than those less developed. However, the impact of such economic and financial policy choices has not led to the desired outcomes in terms of human development, poverty reduction and financial stability. Growth has not been inclusive and has widened the gap between the rich and poor; a case in point is Egypt and Morocco. Indeed, in certain cases, financial liberalization has actually contributed to further financial instability. In light of a critical reassessment of the achievements and failures of MED countries, a new financial development approach should be adopted. This new model should be more holistic, integrating the financial and social spheres in combination with strong financial institutions. It is vital that MED policymaking should expand to accommodate these spheres and place them on equal footing in the service of a long-term rights-based financial developmental vision.

The new model will reconsider financial policies that incorporate developmental priorities and would thus achieve structural change. Financial policies will have to be reshaped to achieve not only financial stabilization, adjustment and economic growth, but to also trigger the transformation required to generate growth that is broad-based, inclusive and sustainable. Within this context, such policy tools as financial development and inclusion, and financial sector diversification and liberalization will have to be addressed. At the same time, financial policies should not shy away from meeting the same objectives as social policy under this new financial development paradigm, in which the interests and welfare of every person in society are the target. It is also of central importance to ensure that social policy goes hand-in-hand with financial development policies to bring about the required transformation and ensure inclusive financial and economic growth. While the social and financial spheres should interconnect to create synergies, this new financial development model will not achieve its goals if political and institutional reforms remain shallow. Finally, sustainable poverty and income inequality reduction requires an acknowledgement that politics, institutions, financial and socio-economic policies are intertwined and have an impact on each other. Synchronizing financial and social policies with institutional and political reform would bring about positive, sustainable change under a clearly defined financial development vision.

Environmental Regulation and Agricultural Trade Development (report FEM44-06)

The political implications of these results are as follows. First, it is illusory to consider bilateral free trade agreements as capable, on their own, of increasing trade flows between the two shores and developing the agricultural sectors of the SEMCs. In fact, and given the vulnerability of agricultural products, without accompanying upstream measures, the opening of the European market in the agricultural sector, in particular that of fruit and vegetables, would bring only a limited advantage to these countries. In addition, support for the modernization and adoption of new technologies that respect the environment and meet the requirements of the European market is necessary so that the SEMCs can really benefit from the liberalization of agricultural trade with the EU. Secondly, the harmonization of agri-environmental measures between the Common Agricultural Policies and those introduced by PSEM is strongly recommended and should make it possible both to increase the competitiveness of their sectors and to facilitate access to the European market. This raises an important point about the trade agreements being considered or being negotiated as it is important to take into account the slowness of the process related to the transformation of agricultural production systems (eg conversion to organic farming, training and adaptation of farmers to new technologies). As a result, appropriate deadlines must be taken into consideration by both parties. Finally, it is clear that the harmonization of non-tariff measures in a second step according to the international system would be a lever to increase agricultural trade and integrate more fully into the global economy.

EuroMed Report: Identification of barriers to the integration of Moroccan SMEs in global value chains

The new EuroMed Report (September, 2019) is now available

Identification of barriers to the integration of Moroccan SMEs in global value chains [1]

The report is available for download here.

 

The purpose of this report is to identify the obstacles to the integration of Moroccan SMEs into global value chains. This new report is a continuation of the previous one because it again deals with issues that concern the private sector. However, this time it offers a more detailed analysis by targeting a specific problem, the integration of Small and Medium Enterprises (SMEs) in global value chains, in the case of one country in particular, Morocco.

This choice enabled us (i) to carry out an in-depth analysis on a given problem, (ii) to work in close collaboration with a Moroccan institution (ISCAE) and with the African Development Bank (AfDB) office in Rabat and (iii) to enhance our report with case studies of Moroccan SMEs and with a series of interviews and working meetings with representatives of business associations and heads of national organizations concerned with the issue. Before the finalization of the economic policy recommendations, this study was also the subject of a workshop organized in Rabat in the presence of decision makers, entrepreneurs and senior civil servants.

The report was coordinated by:

  • Patricia AUGIER (President of the Scientific Committee of FEMISE and of Institut de la Méditerranée),
  • Vincent CASTEL (Chief Country Economist – Morocco at the African Development Bank – AfDB) and
  • Tarik EL MALKI (Professor of Management and Corporate Social Responsibility at ISCAE).

It benefited from contributions by:

  • Mohammed Amine HANIN (Financial Auditor at EY),
  • Maryse LOUIS (General Manager of FEMISE),
  • Josef PERERA (Political Economist and FEMISE Researcher),
  • Constantin TSAKAS (General Secretary of FEMISE and General Manager of Institut de la Méditerranée) and
  • Jocelyn VENTURA (Political Economist at Institut de la Méditerranée / FEMISE).

The Euromed report is an annual publication of FEMISE which deals with topics of importance and interest for the Euro-Med region. The report brings a real added value in terms of knowledge on the topic covered. It provides an in-depth analysis proposed by specialized economists and with a multidisciplinary approach to the North and South of the Mediterranean. This brings a common vision on both sides of the Mediterranean and political recommendations that can contribute to the transition process of the South Med countries.

[1] This report has been prepared with the financial support of the African Development Bank and of the European Union through the FEMISE project on “Support to Economic Research, Studies and Dialogues of the Euro-Mediterranean Partnership”. The content of the publication is the sole responsibility of the authors.

FEMISE MedBRIEF 23: “Developing Social Entrepreneurship and Social Innovation in the Mediterranean and Middle East”

Tallie Hausser, Constantin Tsakas and Karine Moukaddem

The FEMISE Policy Brief series MED BRIEF aspires to provide Forward Thinking for the EuroMediterranean region.The briefs contain succinct, policy-oriented analysis of relevant EuroMed issues, presenting the views of FEMISE researchers and collaborators to policy-makers.

The MED BRIEF “Developing Social Entrepreneurship and Social Innovation in the Mediterranean and Middle East “, is available here.

 

Summary

Our Policy Brief analyzes the social innovation ecosystems in Beirut and Tunis and discusses ways for leading to inclusive innovation that creates jobs, income and opportunities for marginalized populations, women and youth. Findings show that the lack of a legal form for social enterprises, impediments to financing and investment, scarcity of human resources for upper management and difficulties in determining the proper customer base are among the core obstacles faced by social entrepreneurs. We argue that more innovative financing mechanisms should be available for them. Educating investors in the South Med around the concept of impact measurement and impact investment would be needed. In addition, South Med governments ought to actively support social enterprises, meanwhile, corporations should be considering social procurement and including social enterprises in their supply chains. Finally, capitalizing on Euro-Med cooperation could be an inclusivity game-changer. Specifically, an EU-Med Social Impact Platform could multiply funding opportunities for South-Med entrepreneurs and provide a promising market for impact investors.

The list of FEMISE MED BRIEFS is available here.

The policy brief has been produced with the financial assistance of the European Union within the context of the FEMISE program. The contents of this document are the sole responsibility of the authors and can under no circumstances be regarded as reflecting the position of the European Union

“Renewable Energy Development Strategies in the MENA Region” (Report FEM43-04)

This work explores the question of the dynamic link between the development of renewable energies and growth. The main results of this work can be summarized as follows. First, the results show that efforts to develop renewable electricity generation must be supported in the short term because the relationship between renewable electricity production and GDP per capita is asymmetrical. In this case Algeria, Egypt, Morocco and Turkey are concerned by this strategy which will enable them to increase well-being in the long term. Second, the current level of renewable electricity generation in Tunisia and Israel is low enough to have a significant effect on welfare. Both countries must therefore continue their efforts to produce renewable electricity in order to reach levels that allow them to have an impact on well-being. Thirdly, Iran and Lebanon are in a strategy that has a negative impact on welfare, namely hydroelectric power generation. They must try to develop other sources of energy by exploiting their potential in wind and solar energy.

FEMISE MedBRIEF 20: “The Long-Term Impact of Syrian Refugees on Turkish Economy”

Pr. Ramon Mahia (UAM, Spain) and Pr. Ali Koc (Akdeniz University, Turkey)

The FEMISE Policy Brief series MED BRIEF aspires to provide Forward Thinking for the EuroMediterranean region. The briefs contain succinct, policy-oriented analysis of relevant EuroMed issues, presenting the views of FEMISE researchers and collaborators to policy-makers.

The MED BRIEF “The Long-Term Impact of Syrian Refugees on Turkish Economy”, is available here.

 

 

 

Summary

Results for 2017 (short term impact)
• The total value-added impact generated by the occupations of Syrian refugees in the Turkish economy was an estimated 27.2 billion TL at the end of 2017, representing 1.96% of total Turkish GDP.
• Production effect is estimated at 1.51% of GDP for 2017. This impact supposes an increase in production of 30.59 billion TL across different sectors, generating 20.9 billion TL of value added.
• Induced demand effect accounts for the rest of global impact, for 0.45% of GDP in 2017. This induced demand effect implies new production estimated at around 11.7 billion TL, generating 6.2 billion TL in value added. This induced demand effect is essentially produced by direct consumption and investment of Syrian population; the direct effect is estimated at 0.3% of GDP for 2017.
• All in all, native employment induced by Syrian economic integration (from both production and demand effects) was an estimated 132,454 persons in 2017.
• The direct impact of Syrian economic integration is spread unevenly across different sectors, reflecting the greater or lesser presence of Syrian workers in the production effect and specific consumption and investment patterns.
• Details provided by the simulation schema support the idea that enhancing employment opportunities for refugees by improving their education and skills, promoting entrepreneurial capacity and providing work permits in well-targeted sectors will further increase refugees’ contribution to economic growth.

The list of FEMISE MED BRIEFS is available here.

The policy brief has been produced with the financial assistance of the European Union within the context of the FEMISE program. The contents of this document are the sole responsibility of the authors and can under no circumstances be regarded as reflecting the position of the European Union

FEMISE EuroMed Report 2019 : The private sector in the Mediterranean countries: Main dysfunctions and opportunities of social entrepreneurship

ENGLISH VERSION coming soon…

 

Le Rapport EuroMed FEMISE 2019 est maintenant disponible

Le secteur privé dans les pays méditerranéens :

Principaux dysfonctionnements et Opportunités de l’entreprenariat social [1]

La version française du rapport est disponible au téléchargement ici.

Le FEMISE lance son rapport Euro-Méditerranéen 2019 qui porte sur le secteur privé dans les pays méditerranéens. Il a été présenté ce 13 juin dernier aux participants à la conférence annuelle du think tank. Comment ont évolué les pays méditerranéens depuis le lancement du Processus de Barcelone ? Pourquoi la croissance a-t-elle été en deça des attentes ? Quelle rôle peuvent jouer les Banques Centrales pour rendre le secteur privé plus dynamique et attirer davantage d’investissements étrangers ? Comment les pouvoirs publics peuvent-ils contribuer au développement de l’entreprenariat social dans la but de réduire les phénomènes d’exclusivité ? Ce rapport tente de répondre à ces questions à travers 4 chapitres : le premier présente la dynamique observée des pays méditerranéens au cours de ces 20 dernières années ; le second tente d’analyser les principales raisons du manque de croissance ; le troisième porte sur le rôle des Banques Centrales dans l’amélioration de l’environnement des affaires et sur l’attractivité des investissements étrangers. Le quatrième et dernier chapitre est focalisé sur l’entreprenariat social.

Trois raisons majeures ont poussé les experts du réseau FEMISE a consacrer ce rapport au secteur privé en Méditerranée. La première est qu’il y a urgence à créer des emplois et, compte tenu de la situation des comptes publics, ces futures créations d’emplois ne pourront provenir que du secteur privé. La deuxième raison est que ces pays doivent faire évoluer leur régime de croissance pour devenir plus compétitifs et réaliser des montées en gamme. La troisième raison est qu’il était utile, comme le fait ce rapport, d’avoir une synthèse des apports de la littérature académique, des données disponibles, des rapports d’organisations internationales tout en ayant également un tour d’horizon sur les points de vue et recommandations d’experts, membres de la société civile et partenaires opérationnels sur le sujet. Dans le dernier chapitre, ces acteurs du changement exposent et proposent des actions concrètes pour un secteur privé à la hauteur des enjeux en Méditerranée, notamment via l’entreprenariat social.

« Un paradoxe des pays méditerranéens est d’avoir, à la fois, un faible niveau de pauvreté comparativement aux pays en développement et émergents et, dans le même temps certaines parties de la population isolées et/ou exclues de la sphère économique. Il s’agit des jeunes, des femmes et du monde rural éloigné des grandes agglomérations. On pourrait également y ajouter les personnes dont les activités économiques sont dans l’informel. C’est donc un système économique qui repose sur l’exclusion d’au moins les deux tiers de sa population et dont les fondements d’un développement durable ne sont pas assurés » expliquent les auteurs.

Le rapport, produit sous la direction de l‘Institut de la Méditerranée (IM) et coordonnée par Patricia Augier (Présidente du Comité Scientifique du FEMISE), a été rédigé par des économistes du réseau de chercheurs FEMISE. Les auteurs sont :.

Pr. Patricia Augier (Professeur Aix-Marseille School of Economics, Présidente du Comité Scientifique du FEMISE et de l’IM) ;

Dr. Constantin Tsakas (Secrétaire Général du FEMISE et Délégué Général de l’IM) ;

Pr. Sami Mouley (Professeur de Finance Internationale à l’Université de Tunis) ;

Karine Moukaddem (stagiaire analyste politique à l’Union pour la Méditerranée, experte FEMISE) et

Jocelyn Ventura (économiste à l’IM et au FEMISE).

Les 4 chapitres sont également téléchargeables séparément en cliquant ci-dessous :

Le rapport Euromed est une publication annuelle du FEMISE qui traite des thèmes d’importance et d’intérêt pour la région Euro-Med. Le rapport apporte une véritable valeur ajoutée en termes de connaissances sur le thème couvert. Il fournit une analyse approfondie proposée par des économistes spécialisés et avec une approche pluridisciplinaire du Nord et du Sud de la Méditerranée. Cela apporte une vision commune des deux rives de la Méditerranée et des recommandations politiques qui peuvent contribuer au processus de transition des pays du Sud Med.

[1] Ce rapport a reçu un soutien financier de l’Union européenne à travers le projet FEMISE “Support to Economic Research, studies and dialogues of the Euro-Mediterranean Partnership”. Toute opinion exprimée dans ce rapport est de la seule responsabilité des auteurs.

FEMISE annual conference, Brussels, Belgium, June 13th-14th 2019 (agenda available)

FEMISE is happy to announce that its annual conference will take place this year in Brussels, Belgium, on June 13th and 14th 2019.

Please click here to register.

This year’s theme will be on:

SUSTAINABLE DEVELOPMENT: DRAWING AN IMPACTFUL EU-MED ROADMAP

The objectives of this conference are threefold:

(1) To take stock of what the South-Med region has achieved in the past few years in terms
of sustainable development;

(2) To highlight the main challenges they are still facing; and

(3) To propose a road-map on how to move forward towards achieving sustainable
development.

The conference plenary sessions will address the FEMISE four main thematic pillars and will link
them to the SGDs, taking into account their interlinkages, offering a platform for dialogue between
the different stakeholders.

The concept note is available by clicking here.

The conference agenda is available by clicking here.

All the participants bios are available by clicking here.

The FEMISE annual conference provides a platform for the different actors of the EU-Med region of research institutes’ members, academics, policymakers and representatives of the international community including the EU, to engage in a constructive dialogue about the future of the region and the role the EU can play in the context of the new Neighborhoud Policy (ENP). 

To get to know some of our speakers, click on their pictures !

FEMISE MED BRIEF no19 : “Reforming Fossil fuel Subsidies: Challenges and Opportunities for Mediterranean countries”

Stéphane Pouffary & Guillaume de Laboulaye

The FEMISE Policy Brief series MED BRIEF aspires to provide Forward Thinking for the EuroMediterranean region. The briefs contain succinct, policy-oriented analysis of relevant EuroMed issues, presenting the views of FEMISE researchers and collaborators to policy-makers.

The MED BRIEF “Reforming Fossil fuel Subsidies: Challenges and Opportunities for the South and East Mediterranean countries”, is available here (in french).


Abstract: Fossil fuel subsidies have been used for decades to support economic activities, but above all, officially, to enable poorest households to access low-cost energy services. That being the case, regardless of the country, this reality remains highly questionable given that most of these subsidies benefit the wealthiest households who consume much more energy than lower and middle-income households. Moreover, these subsidies are incompatible with a low-carbon society and they contribute to maintaining unsustainable systems from an environmental, economic and social point of view, creating an energy dependence on exporting countries. This policy brief focuses on the issues and challenges of reforming fossil fuel subsidies in Southern and Eastern Mediterranean countries. It reminds that, far from their initial objective, these subsidies contribute on the one hand to slow down the achievement of national climate commitments and, on the other hand, to increase social and economic imbalances.

The list of FEMISE MED BRIEFS is available here.

The policy brief has been produced with the financial assistance of the European Union within the context of the FEMISE program. The contents of this document are the sole responsibility of the authors and can under no circumstances be regarded as reflecting the position of the European Union