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.
LABOUR SUPPLY, EDUCATION AND MIGRATION IN SOUTH MEDITERRANEAN COUNTRIES: POLICY CHALLENGES AND OPTIONS
The analysis of labour supply in South Mediterranean Countries indicates that only a package of long term policies can foster employment creation. The quality of education systems needs to be improved to deliver good employees for companies and, potentially, new entrepreneurs. Social security protection needs to be extended to the private sector to make it more attractive to workers and to reduce informality, whereby it strongly contributes to the endogenous creation of opportunities. Institutional reform at the government level and in the market can significantly support this process. In the medium term, the combination of a growing population and low educational attainment with poor labour opportunities in the region, will only serve as a push factor and foster outflows of migrants.
Using a sustainable migration policy framework that benefits both origins and destinations remains of crucial importance. Lastly, our research also indicates that data availability in the region is a major obstacle to identifying labour market problems and formulating appropriate policy measures but also to monitoring their implementation.
LEGAL MIGRATION PATHWAYS ACROSS THE MEDITERRANEAN: ACHIEVEMENTS, OBSTACLES AND THE WAY FORWARD
This policy brief reviews the state of legal migration across the Mediterranean: it examines the existing migration links between the South Med countries and the EU, attempts to uncover the obstacles to legal migration and suggests ways to improve migration management. We argue that, if used strategically, even small-scale projects to foster legal migration can contribute to expanding legal migration opportunities and reducing irregular crossings in the longer term. However, this can only occur if projects are implemented in close cooperation with governments of the South Med countries and if they can contribute to capacity building of the national labour market and educational institutions. Further, given the prevalence of the family migration channel between the South Med and the EU, one way to foster legal migration is to leverage existing social networks, i.e. by engaging the South Med diaspora residing in the EU and supporting labour market integration of family migrants.