BRAIN DRAIN IN SOUTHERN MEDITERRANEAN COUNTRIES: EVIDENCE, CHALLENGES AND POLICIES
A review of the literature and the available data support the evidence that an increasing share of population outflows from the South Med region to the EU is individuals with tertiary education. In recent years, this has gone hand in hand with increasing educational attainments amongst the regional population. The latter is a predictor of both further migration and reduced concern about brain drain. The share of highly educated individuals amongst those who stay is still increasing and, in most countries, is more than those who choose to leave. Lack of job opportunities is the main driver of migration across the population. The impact of migration on the sending countries is not necessarily negative, as remittances – both financial and cultural – are large in the region and, de facto, migration works as a safety valve for mounting pressure, led by high unemployment, especially amongst youths. The key question is not about brain drain but about how to restore a positive dynamic between human capital creation and potential growth leading to job creation. This requires more targeted education policies but, above all, improvement in the quality of public and market institutions.
GLOBAL VALUE CHAINS IN THE EURO-MEDITERRANEAN: BECOMING THE PILLAR FOR REGIONAL INTEGRATION
The objective of this policy brief is to examine the status of global value chains (GVCs) on the two shores of the Mediterranean and provide some insights on how to enhance regional integration. We argue that GVCs will help firms improve their productivity, that SMEs will become more sustainable and generally diversify exports from the region. To achieve this, addressing non-tariff measures, boosting the business environment and improving blue-collar workers skills are all essential.
INSTITUTIONS AND ECONOMIC PERFORMANCE IN THE SOUTHERN MEDITERRANEAN PARTNER COUNTRIES: A RENEWED POLICY AGENDA TO TACKLE INSTITUTIONAL FAILURE
This paper explores the problem of institutional failure in the Southern Mediterranean Partner Countries (SMPC). After reviewing the most recent empirical research on the effect that institutions have on economic performance, including research done in the framework of EMNES, the paper identifies two types of institutional failure pervasive in the region. It concludes with the recommendation that while Type I failure could be remedied by piecemeal institutional reforms, the more pernicious Type II failure is not likely to be corrected without a structural transformation of the balance of political power in the affected country.