Source: SVILUPPO DEL MEDITERRANEO

The Euro-Mediterranean Region is one of expanding opportunity. Including the all EU, Euro-Med Region, with 720 millions inhabitants could become a common market by 2010. Such a large market – bigger by far than China – is one that businesses and investors must reckon with.

The Mediterranean region, among three continents, enjoyed its greatest prosperity when it was open to trade, ideas, innovation and private enterprise.

Nowadays, between the two shores, the Mediterranean area holds the world record gap for GDP differential per capita: 1 to 10 between South and North, versus 1 to 7 between Mexico and USA.

Southern MED countries generally blessed with primary natural resources and young population, need for strong growth as a transition versus a stable development status. In these countries, unemployment, limited basic services to the population, infrastructures, and social pressure represent both a waste of resources and a major risk to social/political stability and to business expansion.

The last period of twenty years can be considered a period of missed opportunities for the Mediterranean area development.

In fact, while other regions have become essential links in global productions chains in manufacturing, technology and other dynamics sectors, the North African, the Middle East and few European countries have limited their links with the rest of the world on oil and natural resources exports, tourism and labour migration.

Even if some countries in the region have already begun the transition to greater business openness, the trade and investment climate reforms have been frail.

Indeed, many countries are seeking to strengthen their trade partnerships with Europe, yet the results on the ground remain limited.

On the contrary, integrating with the rest of the world is vital for these regions, and the developed European Mediterranean regions have a privileged location to contribute to this on going development, and a dynamic private sector should be the real engine to generate the indispensable growth and job opportunities.

The common opinion is that trade and private investments are needed to provide new engines of growth and dynamic.

What it is believed necessary to fasten the transition phase for the developing countries is shifting their source of growth: from oil to non-oil sectors7; from public to private and market oriented activities; and from protected import to competitive and export oriented activities.

According to the World Bank estimates, the North African and the Middle East region’s characteristics are favourable to trade, even if now, this region represents only 2 percent of world income while it is 5 percent of world population. This region may attract more investment from abroad and encourage more investment at home. Foreign direct investments (FDI) may perhaps be 5 to 6 times what they are today (from 0.5 percent of GDP to some 3 percent).

The main national and international financial institution already existing, such as EIB (European Investment Bank), are directed towards developing co-operation between the different areas of the North and South of MED region.