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Med Change Makers e05 : Katarzyna SIDLO, Women Empowerment and Collaborative Economy

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FEMISE recently launched its series of interviews called « Med Change Makers ».

« Med Change Makers » are text and video-based interviews that allow dynamic researchers of the FEMISE network to illustrate how their research addresses a policy-relevant question and how it contributes to the policy-making process in the Euro-Mediterranean region.

 

Boosting female labour market participation rates in the MENA region : Can collaborative economy be of help? ”

Interview with Katarzyna Sidlo, Political Analyst at CASE, researcher at FEMISE

FEMISE recently published its Policy Brief “Boosting female labour market participation rates in the MENA region : Can collaborative economy be of help?”.

Autthor of the MED BRIEF, Dr. Katarzyna Sidlo is a FEMISE researcher who actively participates in the activities of the network. Her work assesses the potential of the collaborative economy to increase women’s labor force participation in the MENA region (Middle East and North Africa). More specifically, it examines ways in which the collaborative economy can enable women who are interested to join the labor market.

  1. How do you define collaborative economy? Can you give us examples from different sectors of such initiatives?

The collaborative (or sharing) economy refers to business models that create an open marketplace for access to goods and services thanks to the use of modern technology. It covers a variety of sectors, is rapidly emerging throughout the world and provides new opportunities for citizens who are able to get what they need from each other instead of going to large organizations (at least that is the theory). Some of the best-known examples of collaborative economy businesses are car-hailing applications such as Uber or Careem, peer-to-peer accommodation website Airbnb, crowdsourcing platforms Kickstarter or Indiegogo, or online marketplace Etsy. Many of them are already household names.

  1. Do you think that collaborative economy is a feasible solution in MENA countries given internet access obstacles and public perceptions?

Well, firstly according to the World Bank, 59% of individuals in the MENA region are internet users. Access to internet as such is therefore not a problem everywhere in the region, although of course in many places broadband is expensive, slow and generally unreliable and in many other, especially urban areas, simply not yet readily available. More importantly, however, I would look at the problem stated in the question in a different way: the potential to make use of what collaborative economy has to offer can be one more argument in favour of extending efforts to provide access to internet to as many people as possible. If internet is not available in a village in the south of Egypt, chances are that neither are many job offers. By providing inhabitants of such a village with access to internet, you give them an opportunity to enter the labour market as well. For instance, they could study for free on one of the many Massive Open Online Courses (MOOCs) platforms available – increasingly also in Arabic – and gain skills that will allow them to find employment. Or they could give Arabic classes online (one platform, NaTakallam, offers such classes taught by refugees). All without having to emigrate and leave their villages or, indeed, houses.

I strongly believe that even if just a small percentage of people in a given society use this chance, it will be worth it. So while the sharing economy will by no means solve all or even most of the problems related to the low female (and male) labour force participation – it would not even if virtually every single person in the region had access to a fast, affordable, and reliable internet – it has a huge potential to contribute to the alleviation of this problem.

  1. What are the main obstacles for female labour force participation in the MENA region and how does collaborative economy bring innovative solutions to each?

Women in the MENA region wishing to join the labour market face numerous obstacles, from practical ones (lack of jobs, difficult commutes) to those of socio-cultural nature (restrictions on outside-of-the-house activities, caring responsibilities) nature. Sharing economy can help to overcome a number of those. Most importantly, it allows women to perform work – and indeed create their own businesses – from the comfort of their own homes. Thanks to this even those women, who due to various family- or culture-related reasons would not undertake paid work outside of the house, can earn their own income (and economic empowerment is a great step towards social and political empowerment). Another good example are ride-hailing services, providing a safer, more reliable and cheaper (compared to traditional taxis) alternative to faulty or point-blank non-existent public transport, oftentimes believed to be not appropriate for use by non-accompanied women. An extreme case in point was Saudi Arabia, where prior to lifting the ban on women driving 80% of Uber’s and 70% of Careem’s clients were female.

  1. One of the article’s recommendations was to improve the legal frameworks in each MENA country to enable the optimal functioning of sharing-economy businesses. What concrete measures can be successfully implemented in the region as a whole and in case-specific contexts?

One of the main advantages of the sharing economy is its flexibility. However, this flexibility can also oftentimes mean lack of clarity for instance in terms of liability, taxation, consumer protection, licensing or insurance. Think about ride hailing services such as Uber, Careem or Lyft: in case of an accident, whose insurance should cover the damages? As drivers are using their private vehicles they may not possess commercial, but rather personal insurance, which can lead to insurers denying the claim. Should the company owning the platform through which drivers are matched with clients be liable at all? Are the drivers even their employees or clients making use of the platforms features? The answer to that question determines answers to many subsequent ones related to social protection (maternity leaves, pensions, health insurance etc.) of the collaborative service providers. Another issue is of course taxation.

Unfortunately, there are no easy answers. The European Union is for instance pondering issuing EU level guidelines but currently whether and to what extent the sharing economy should be regulated is still a matter of a lively debate. The big question is of course how to regulate so that you don’t overregulate and therefore kill the flexibility that makes participating in sharing economy so convenient.

In the MENA region, countries should think about solutions that work best under their specific circumstances. For instance, a voluntary health insurance scheme could be introduced to help those earning their income within the sharing economy to gain social protection (an interesting study on this topic for Tunisia by Khaled Makhloufi, Mohammad Abu-Zaineh, and Bruno Ventelou has been published recently by FEMISE). In Jordan, where the government is working on a tax reform, the question of imposing corporate law tax on collaborative platforms could be investigated.

  1. What is the role you see for the civil society and NGOs in the proliferation of collaborative economy? Would cooperation and synergies between different actors/ stakeholders possible in your opinion?

Collaborative economy has it for-profit and non-profit dimension. Speaking of increasing female labour market participation in the MENA region and the role of CSOs and NGOs, we should probably focus on the latter. The spectrum of possibilities is really broad. Both types of organizations could for instance facilitate women organizing their own car pooling schemes, helping each other to safely and conveniently get to and from work on daily basis. They could set up collaborative working spaces, where female entrepreneurs could set up and run their businesses in a friendly, safe and inspiring environment. They could create online courses in local dialects of Arabic, providing free training to women thinking about starting their own business or work on translations into Arabic of courses which are already available on various MOOC platforms and which provide knowledge and skills that make finding a job easier. All that – and much more – can of course be done in collaboration between different stakeholders. After all that is what collaborative economy is all about.

The MED BRIEF is available for download by clicking here.

Interview by Constantin Tsakas

This activity received financial support from the European Union through the FEMISE project on “Support to Economic Research, studies and dialogues of the Euro-Mediterranean Partnership”. Any views expressed are the sole responsibility of the speakers.

FEMISE MED BRIEF no13 : “The success pillars of a national innovation system in Maghreb”

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Sonia BEN SLIMANE (ESCP Europe) & Maarouf RAMADAN (KEDGE, FEMISE))

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 latest MED BRIEF on “The success pillars of a national innovation system in Maghreb” is available here.

It is also available in arabic here.

Abstract: The perspective of economic growth supported by innovation activity has now proved ineffective for Maghreb countries (Morocco, Algeria and Tunisia). Our analysis under the angle of the national innovation system emphasizes the main causes such as structural weaknesses and lack of time-consuming coordination among the actors of innovation. Our recommendations are based on proposing an appropriate systemic model of innovation that takes into account the specificities of these three countries. The pillars of success of this model are first “Structural”: Setting up an effective “support structures” for innovation and entrepreneurship, offering appropriate tools and complementary services; Second, “Coordination”: Coordinated coherent interactions between public and private actors of innovation in the development of new production methods and the dissemination of knowledge; And third, “Governance”: The rehabilitation of the role of the Government in education, in ensuring and overall coherence of the actor’s actions (regulation protecting innovation, financing of innovation, supporting scientific research activities and an education system favoring the development of a new generation of innovative entrepreneurs).

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.

The private sector, its role as an engine of growth and job creation, at the heart of FEMISE research

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FEMISE Brochure

Mediterranean countries suffer from a lack of dynamism of their private sector, which is not sufficiently competitive nor job-creating.

Therefore, FEMISE has placed the theme of the private sector, and in particular its role as an engine of growth, job creation and inclusivity, at the center of its research activities. A special attention is paid to the causes that prevent the sector from reaching its potential, in particular the constraints faced by firms in the Southern Mediterranean Region, and to the importance of innovation in the development of the Mediterranean private sector.

One of the specificities of the FEMISE network, coordinated by the Economic Research Forum (ERF) and Institut de la Méditerranée (IM), is to always strive to integrate the points of view of politicians, of private operators and, more broadly, of all local actors, in the discussions carried out under this theme. This approach provides better feedback on the research, and ensures its policy relevance.

The private sector at the center of the FEMISE academic research

Patricia AUGIER (Scientific Pres. of Institut de la Méditerranée, Coordinator and Scientific Pres. of FEMISE), coordinates the 2018 EuroMed report

Firstly, the 2018 FEMISE EuroMed report, the flagship publication of the network, will focus on the private sector in the Mediterranean countries. The objective of the report will be to take stock of the economic dynamics of the Mediterranean countries over the last 20 years (ie since the Barcelona Process), and to understand the blocking points. The general idea is that growth in Mediterranean countries must accelerate to absorb a growing number of incoming individuals in the labor market, and that this growth must be based on productivity gains rather than on factors accumulation : the development of the private sector is therefore at the heart of the definition of a new development model. One of the chapters will focus more specifically on the role of central banks in private sector development. Finally, the major concern of a more inclusive growth will lead us to consider social entrepreneurship as a potential opportunity for the Mediterranean countries.

A “Science for Business” partnership dynamic with technical and operational support actors

Secondly, FEMISE participates, in partnership with ANIMA, in THE NEXT SOCIETY project, which brings together public and private actors from 7 Mediterranean countries with the aim of supporting innovation ecosystems. This collaboration gives the opportunity to FEMISE and ANIMA to pool their complementary skills, which are analysis and production of academic knowledge on the one hand, and technical and operational support on the other hand.

FEMISE’s contribution is firstly to draw-up a scoreboard and analyze the position of each country in terms of innovation and competitiveness indicators, such as the Global Innovation Index, at different stages of innovation (inputs, process and outputs). FEMISE also carries out an analysis of the national innovation strategies and of the ecosystem of involved actors (government, associations, private operators…).

Next, FEMISE identifies high-performing sectors and products to highlight new national comparative advantages and investment opportunities.

Dr. Maryse LOUIS (General Manager FEMISE, Programs Manager ERF) and Dr. Constantin TSAKAS (General Manager Institut de la Méditerranée, General Secretary FEMISE) presenting FEMISE research at THE NEXT SOCIETY panels in Tunisia and Jordan.

FEMISE presents its findings on the occasion of advocacy panels bringing together academics, entrepreneurs, investors, managers of incubators and innovation structures and public actors. This allows to benefit from their feedback and, above all, from their point of view regarding the factors that led to the emergence of these new comparative advantages. This approach ensures that the findings and recommendations from FEMISE work can contribute to elaborate public policies. The challenge of these panels is to establish, for each country, a roadmap for innovation, from implementation to evaluation, with the objectives of strengthening national innovation systems, fostering coordination between stakeholders, and improving the instruments of innovation policies and strategies.

An opening towards South-Mediterranean institutions in a “Science for Policy” approach

Les jeunes chercheurs du FEMISE participent activement aux recherches, Karine MOUKADDEM et Jocelyn VENTURA (Institut de la Méditerranée, FEMISE) et Dalia RAFIK (ERF, FEMISE)

Thirdly, FEMISE is opening-up by cooperating with South Mediterranean actors and institutions directly concerned by these issues. Therefore, FEMISE co-authored and will publish in 2019 the2019 EuroMed report which will identify the constraints to growth and integration in the global value chains of Moroccan SMEs. This document results from the cooperation of the network with the African Development Bank, a main regional funder for development aid, and with the Institut supérieur de commerce et de gestion d’administration des entreprises (ISCAE) established in Morocco.

It is essential for the Mediterranean countries to better integrate SMEs into the global value chains in which most international trade takes place. In this report, we have chosen to focus on the case of Moroccan firms. It will be based on surveys and field interviews of SME managers and representatives of professional associations as well as on the Enterprise Surveys and Doing Business indicators of the World Bank. It is in this approach of discussions between researchers and public and private operators that the preliminary results of the report were presented before publication, in order to gather comments, suggestions and recommendations to enrich the research.

A triple anchoring to obtain research that is relevant from a political and operational dimension

To conclude, in addition to the ongoing academic research conducted by network members and supported financially by FEMISE funds (research available on the website), 3 other types of work devoted to the private sector are currently mobilizing the FEMISE team: (1) an analysis of the situation and a general discussion covering the entire region (EuroMed2018 Report), (2) a targeted and co-authored thematic analysis with a national focus (EuroMed2019 Report) and (3) a project on innovation in partnership with ANIMA.

Our analysis feeds on both (i) the knowledge and contributions of academic research, (ii) the consideration of concrete situations within the countries, as well as (iii) the points of view and insights from politicians and business actors. This triple anchoring allows us to develop products that are relevant from a political and operational dimension.

To get the FEMISE Brochure, with a presentation of the activities of the network and its new thematic approaches please click here.

To find out more about the preliminary findings of the report co-led with the AfDB, some answers are available in the interview below:

Article written by Jocelyn Ventura (Economist Institut de la Méditerranée)

FEMISE MED BRIEF no12 : « The key role of education in the professional integration of young people in the Marrakech region »

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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 latest issue of MED BRIEF “The key role of education in the professional integration of young people in the Marrakech region” is available (in FR) by clicking here.

 

Alexandra Flayols (Université de Toulon)

Summary: The difficulties of young Moroccans, both in terms of their professional integration and in the education system have led us to question the constraints that can weigh on these young people in the pursuit of their studies and their access to paid employment. Our results highlight the important role of secondary education in gaining paid employment. However, many young people drop out of school early. The analysis of reasons for stopping studies is essential so that public authorities can put in place effective measures.

 

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 MED BRIEF no11 : “External and internal imbalances in South Mediterranean countries”

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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 eleventh issue of MED BRIEF “External and internal imbalances in South Mediterranean countries” is available by clicking here.

 

Dr Doaa Salman (MSA, Egypt) and Dr Vassilis Monastiriotis (LSE, UK)

This MED brief provides insights on the medium and the long term consequences of the external and internal imbalances in the South Mediterranean (South Med) countries over the period of the last twenty years, trying to identify the main areas of macroeconomic imbalance in these countries and the key aggregates which seem to drive wider developments in their macroeconomic and fiscal positions.

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.

Med Change Makers e04 : Myriam BEN SAAD, Sophistication of productive systems and economic transition in MENA

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FEMISE recently launched its new series of interviews called « Med Change Makers ».

« Med Change Makers » are text and video-based interviews that allow dynamic researchers of the FEMISE network to illustrate how their research addresses a policy-relevant question and how it contributes to the policy-making process in the Euro-Mediterranean region.

 

 

The sophistication of productive systems as a vector of economic transition in MENA countries and the role of short-term policies

Dr Myriam Ben Saad, Université de Toulon (LEAD), Université Paris Sorbonne, FEMISE

FEMISE has just published its research project FEM42-07, ”Complexification of production as a vector of economic transition and the role of short-term policies”, coordinated by LEAD, Université de Toulon.

Member of the project coordinating team, Dr. Myriam Ben Saad is one of the young FEMISE researchers who actively participates in the activities of the network.

Her work shows the importance of the economic complexity of a country to create more growth and jobs and sketch out clues for the future in the Southern Mediterranean countries.

 

  1. Your report addresses the issue of the sophistication of productive systems. Why is this issue important for the South of the Mediterranean? 

This question is crucial. We observe large economic disparities between countries, largely due to a low level of economic complexity. The latter is sometimes one of the main causes for which economic growth is limited in the Mediterranean. The productive structure of a country is also a decisive parameter, which explains the inequalities of development within a country. Finally, the productive structure can better predict future economic growth. Unfortunately, today we have very few elements on the models and rhythms of sophistication of the productive systems of MENA countries. Our report seeks to remedy that. We try to understand why some countries remain stuck in the intermediate complexity class and make recommendations to enable them to move towards an advanced complexity class that generates more growth and jobs.

  1. The need to develop innovative sectors is arising in the South. What is the best way to proceed according to your results? Do you have success stories to illustrate?

It is important to have appropriate trade policies to address market failures and especially institutional failures that block the competitiveness of exports. We therefore recommend that MENA countries commit themselves to a proactive strategy of export diversification by rethinking their commercial policy to make it a lever for promoting industrial development and structural transformation.

These countries would have an interest in orienting their policies towards national and regional development objectives by improving economic freedom, in particular through administrative simplification laws. This will contribute to the improvement of the business environment in relation to a labor market reform aimed at making it more flexible, transparent and competitive (labor law).

In addition, the development of innovative sectors (support to certain start-ups, to FDI, to the development of free zones or technological business zones) requires a tax incentive policy. This reminds me of the recent experience of a young Franco-Tunisian engineer, installed in a free zone, who managed to transform the production of fine salt into salt pellets. This productive transformation has not only led to the creation of several skilled and unskilled jobs but also to better dynamics and integration of the area.

  1. You stress the need to reform higher and vocational education. What do you propose as concrete solutions?

A plethora of tools could be put in place. In particular, it would be a question of reinforcing the adequacy of training in relation to new professions, developing partnerships with foreign universities (especially European, Asian or American), but also developing public-private partnerships and using the system of professionalised delocalised diplomas.

  1. Can an improved management of natural resources help to promote growth and employment in the South and how?

MENA countries have large reserves of natural resources, mostly non-renewable, among the largest in the world. Despite significant commercial exploitation of these resources, MENA countries remain one of the least known and least visible geological regions of the planet. If recent gas and oil discoveries are to be believed, the abundance of these resources would fund the MENA transformation agenda. Natural resources could make the difference if they were transformed.

Transformation can be achieved by implementing a range of “smart” structural policies, i.e using the benefits of natural resources to diversify and make the economy more sophisticated, develop industrial zones based on the comparative advantage in natural resources, improve macroeconomic policies to effectively manage the risks associated with the volatility of revenues from natural resources etc.

  1. In your opinion, what should the Southern States do in order of priority to accelerate this process of making their economies more sophisticated?

The past few years have been difficult ones for MENA countries, given the seriousness of the challenges facing this region. While the process of structural transformation has been in progress for the last two decades, it is clear that the process is still in its beginning in the region.

  • To become more sophisticated, improving the education and training system is the first challenge. The training of human capital, particularly through access to higher education (engineering), could facilitate structural change and productive modernization.
  • Improving the quality of institutions and economic and structural vulnerability is the second challenge. In this region, some countries find it difficult to implement measures to transform their productive structures because of persistent corruption, which erodes their capacity.
  • At the macroeconomic level, the first step would be to reduce the corporate tax system, especially for local investors. At the micro level, it would be more about launching new development programs and large-scale projects for young people who work in a company and want to invest in it.

Thus, the countries of the region must find collective and not individual solutions to conduct more favorable trade negotiations with their European trading partners, or even better open-up and conquer new markets, particularly the African market. To achieve this, the region will have to find sectorial complementarities to secure the competitiveness and values of the region at the international level.

The report is available for download by clicking here.

Interviewed by Constantin Tsakas

(Deadline extended to 10/09) FEMISE 2018/19 Internal Competition: Fourth round of Scientific programme

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–  Deadline extended to September 10th! –

FEMISE is pleased to announce the launch of its fourth and final Internal Competition 2018/2019 within the current Scientific programme (2015-2019)

 

  1. INTRODUCTION AND THEME OF THE CALL

 Members of the FEMISE network who participated as affiliates of FEMISE in the European Commission Call (Access the list of these members) are invited to submit research proposals under the theme of:

Priorities of the EU-MED region

The deadline for the submission is on the 10th of September 2018 (included-French date and time)

Winning proposals will meet the criteria of having a real value added (generating fresh knowledge), using rigorous and sound methodology, and having the potential of offering policy recommendations.

This fourth call for internal competition completes the research agenda for FEMISE for the four years Scientific Programme (2015-2019) by setting the Priorities of the EU-Med region.

Reminder: The first, was launched in 2015 and the selected proposals focused on modernisation in the countries in the south in the long run. The second, was launched in 2016 and the selected proposals focused on the navigating through the transition in the short run. The third round, was launched in 2017, and selected proposals focused on the Role of the EU in facilitating the transition of the South Med countries. A list of accepted proposals under the three rounds is given in the scientific program below to avoid repetition.

Details about the theme of the current Call for proposals, can be found in the link below:

in English, pdf

in French, pdf

II. TIME TABLE

Deadline for submissions of proposals: 10th of September 2018

Tentative time plan:

Evaluation of proposals: 17 September 2018

Selection and Notification of acceptance: 21 September 2018

Signing Agreements for selected proposals: 24-26 September 2018

Submissions of first drafts: May 2019

Submission of final drafts at FEMISE conference: June 2019

III. SUBMISSION PROCESS

 The dossier of the research proposals should include the following documents:

(1) The research proposal should not exceed 5 pages and should include the following:

  1. Summary (1/2 page)
  2. Statement of research stating the problem addressed, brief review of the literature and the knowledge gap the paper will fulfil.
  3. Conceptual Framework of the research analysis and how challenges are addressed
  4. Research Methodology stating the research question, the hypothesis to be tested, and the methodology that will be employed (e.g case studies, empirical evidence, etc.) and explain the rationale for using the selected methodology.
  5. Policy implications, how will the expected results of the paper contribute to the policy making.
  6. Time Frame, expected output (number of research reports produced), dissemination plan and division of labour in the consortium. Please note the duration for the projects in this call cannot exceed 10 months.

(2) The filled Application form 2018 (download here);

(3) The CVs of the members of the research consortium (standard forms can be downloaded here)

The dossier of the research proposal of the consortium can be sent to FEMISE bureau by email, fax or courier before: 10 th of September (included -French date and time)- More details in VIII. below

Any applications received after this date will not be considered.

IV. ELIGIBILITY

(1) Only Affiliates members’ to the FEMISE-EU Contract on “Support to dialogues, political and economic research and studies of the Euro-Mediterranean Partnership” can be funded in this call (Please click here to download the list of those Affiliates to find out if your institute is eligible).

(2) All proposals have to be submitted in Consortiums as follows: at least one Affiliate member from the North AND one Affiliate member from the South.

Each consortium should have one Team Leader who will send the proposal on behalf of the consortium and will be responsible for the project (in terms of its executing, deliverables and admin process); he/she will be the contact person for all correspondence with FEMISE. Details of the legal representative who will be signing the agreement if the proposal is successful should also be provided in the application form. Proposals submitted with ONE member only will not be considered.

(3) Each researcher can only be involved in one funded project. In the case where a researcher is involved in several proposals, only the highest ranked proposal will be selected. The others (less well ranked) will be automatically eliminated.

V. Funding Scheme

The total budget envelope for all selected proposals in this fourth round of the internal competition will be approximate €64,000. Each consortium needs to specify in the application form provided the total amount requested for the honorarium of the team that will work on the project.

FEMISE will contribute a maximum of 80% of the final amount and the 20% amount will be considered as an “own contribution” from the consortium.

For example, if the approved budget for a selected proposal is Euros 8,000, FEMISE will contribute up to a maximum of Euros 6,400 towards this proposal and the remaining amount of Euros 1,600 will be considered as an “Own contribution” from the members of the consortium towards the project.

Teams are encouraged to produce more than one paper. The requested amount in the proposal needs to match the number of research papers produced and their quality, and will be part of the evaluation. The Selection committee reserves the right to modify the requested amount.

The funding through this call will ONLY cover the honorarium of the researchers (verified by Time sheets) that will be working on the selected proposals.

 VI. EVALUATION AND SELECTION PROCESS

Following the initial screening for eligibility, proposals will go through the following evaluation process:

I. Evaluation: The FEMISE Evaluation Committee will perform the technical evaluation of the proposals, addressing the following criteria:

  1. Scientific quality of the proposal, in terms of:
  • Relevance of the topic to the economic policy issues of the Euro-Med Partnership
  • Value added of the proposed topic to the existing knowledge
  • The quality of the methodology and its ability to address the issue efficiently
  • Integration of the ‘policy oriented’ dimension and its relevance to South Med policy framework.
  1. Other evaluation criteria
  • Degree of cooperation between teams (North and South)
  • Geographic coverage (number of countries covered, coverage of countries poorly studied (e.g. Algeria, Jordan, Lebanon). Though comparative approach is encouraged, proposals that are addressing one country specific topics could be accepted;
  • Overall Experience of the team of researchers while encouraging the participation of young researchers.
  • The Dissemination plan included in the proposal

 II. Selection: Based on this technical evaluation, a selection process will take place for the proposals that will receive funding.

The decision of the selection committee will be one of the following:

  • The proposal is accepted
  • The proposal is accepted with a modification in the requested budget
  • The proposal is accepted with suggested modifications (coverage, scope, etc.)
  • The proposal is rejected

Team leader of all proposals will be informed of the decision of the selection committee. The reports of evaluation received by the referees will be sent to all teams. For the accepted proposals, the bureau will send the necessary agreements, general conditions and forms.

 VII. Research Quality and Dissemination

The output of the research should be made in terms of one ore more research report of an average of 40-50 pages, ensuring a good focused analysis and increasing publications’ potentials in scientific journals, articles and policy briefs.

Expected outputs and peer reviewing:

(1) Drafts of the submitted research reports will go through an ex-post evaluation process (‘Peer Review’).

(2) Dissemination plans (other than the channels provided by FEMISE) are very much encouraged but needs to be discussed with FEMISE to ensure proper acknowledgements are made to the support of FEMISE and the European commission.

(3) the Submission of a Policy Brief based on your research work is highly encouraged.

VIII. CONTACT DETAILS

Please send your proposals (before the deadline of 10th September 2018) by:

Email: internal.competition@femise.org (Subject; Submission of a research proposal)

or by fax:  Fax ++ 33 4 91 31 50 38

or by Post to:

FEMISE Association,

CMCI, 2 rue Henri Barbusse,

13 241 Marseille Cedex 01, France

Tel: ++ 33 4 91 31 51 95

 

This funding is provided by the European Union through the FEMISE project on “Support to Economic Research studies and Dialogues of the Euro-Mediterranean partnership”. The content of the submitted proposals and the output of these projects are the sole responsibilities of the authors and can under no circumstances be representing the position of the European Union or FEMISE.

 

[1] The title of the contract is « Support to dialogues, political and economic research and studies of the Euro-Mediterranean Partnership » launched in March 2014.

Assessing the Macroeconomic and Welfare Effects of Universal Health Coverage in Palestine

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The implementation of “Universal Health Coverage” (UHC) poses serious challenges. Some of these stem from the macro-fiscal space considerations while others relate to the micro-behavioral sphere.

This project seeks to assess the macro-fiscal conduciveness of UHC-oriented reforms in Palestine using a dynamic microsimulation-based Computable General Equilibrium (CGE) approach. Overall, UHC-oriented reform appears to enhance social welfare and economic growth. However, a parallel expansion in the breadth and width of coverage can have a sizeable budgetary impact, with fiscal deficit representing 14% of the GDP, of which about 2% is due to UHC. The latter would absorb about 10% of GDP, 15% of public spending and 57.4% of public spending on health. Under conditions of narrow fiscal space, an additional annual growth of 3.0% is required to progress along all the dimensions of UHC. A set of policy measures, which can help achieve UHC in a financially sustainable manner is advanced.

Spatial proximity and firm performances: how can location-based economies help the transition ?

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The aim of this project is to investigate the productivity impact on firm’s performance stemming from location-based economies due to agglomeration of firms, clustering of innovation and localisation of FDI in three Mediterranean countries, Turkey, Italy and Tunisia. More specifically the research addresses three main questions: 1) the relationships between agglomeration economies and firms’ productivity; 2) the role of innovation spillovers at spatial level taking into account geographical and sector clustering of firms; 3) the spillovers from foreign MNEs at regional and sector level.

The choice of Turkey, Italy and Tunisia as case studies is based on the relevance that economies of agglomeration play in their economy. Italy provides an important benchmarking and is the most critical observatory among North Mediterranean countries for analysing the positive and negative impact of regional agglomeration of activities due to the traditional relevance of regional clusters of development (Industrial Districts) and big regional divides. Turkey and Tunisia are two very interesting case studies due to the emerging innovation clusters over the last years, marked by a large diffusion of science parks, innovation clusters, incubators, special economic zones (SEZs), Centre business districts (CBDs) (in Tunisia) and by an increasing role of multinational corporations (MNC).

Overall, the estimation results suggest some common findings for the three case studies: there are significant productivity enhancing agglomeration effects, in particular there are significant spillovers between firms operating in the same sector and region, spillovers from innovation at local level are also strong, and higher output of foreign firms produce positive spillovers on productivity in the province. However, spillovers are specific to technologically more sophisticated firms.

Med Change Makers e03 : Jocelyn VENTURA, Integration into the global value chains of Moroccan SMEs

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FEMISE recently launched its new series of interviews called « Med Change Makers ».

« Med Change Makers » are text and video-based interviews that allow dynamic FEMISE researchers to illustrate how their research addresses a policy-relevant question and contributes to the policy-making process in the Euro-Mediterranean region.

 

 

Integration into the global value chains of Moroccan SMEs

Interview with Jocelyn Ventura, Aix-Marseille University (France), Institut de la Méditerranée and FEMISE

Jocelyn Ventura, Aix-Marseille Université (France), Institut de la Méditerranée and FEMISE

Economists from FEMISE and Institut de la Méditerranée recently presented the preliminary findings of a study produced for the African Development Bank entitled “Identifying Barriers to Improving the Business Environment and Integrating the global value chains for Moroccan exporting SMEs “.

Jocelyn Ventura (Aix-Marseille University (France), Economist at Institut de la Méditerranée and FEMISE) contributed to the report. In this interview, he offers avenues for reflection on opportunities as well as measures that the state could put in place to improve the insertion of SMEs into global value chains.

 

1) What are the dynamics of Moroccan exports? What are the main export sectors?

There is a notable dynamic. Since 2014, Morocco has implemented an Industrial Acceleration Plan (PAI), one of whose objectives is to promote exports from the industrial sector. One of the goals of this plan is to strengthen Morocco’s international positioning by improving its attractiveness. Since then, Morocco has diversified the destinations of its exports especially to the rest of the world. Although Europe remains the leading destination for Moroccan exports, its relative importance has declined.

In addition to the traditional exporting sectors, there are more technology-intensive sectors that have emerged recently and have experienced a high growth rate: machinery and electrical appliances, vehicles, etc.

Moroccan exports are upgrading to a higher range with the emergence of new export sectors that are more intensive in technology. However, the growth rate of Moroccan exports remains lower than the one found in countries with comparable income levels. A possible explanation being that the competitiveness of exports has been reduced by the rigid exchange rate regime (recently relaxed). In addition, macroeconomic imbalances and the general business environment have been barriers to export growth.

2) What is the situation of Morocco regarding the integration of global value chains? What is its position relative to comparable or neighbouring countries?

Generally speaking, the Mediterranean countries, and Morocco in particular, are fairly well integrated in the GVC. The GVC participation index shows that Morocco’s integration into the GVC is equivalent to that of Turkey and close to that of Israel, but remains lower than that of Tunisia (51.1% in 2011) or other comparative countries (Chile, Romania, Malaysia …).

We observe that the participation of Morocco in the GVC is mainly backward or, in other words, it is the share of foreign VA in Moroccan exports that contributes the most to integration into the GVC. Backward participation is particularly important in Morocco’s main export sectors, such as vehicles, electrical machinery and textiles, which shows that Moroccan exports are part of internationalized production processes.

3) What are the main barriers to SMEs’ ability to sell their product in foreign markets?

Among the obstacles to the launch of an export activity cited by Moroccan SMEs, we can note the difficulty to enter foreign markets and to adapt the products to the standards imposed there, the difficulty to obtain financing, transport costs and cumbersome customs procedures. Also playing a role are the cost of currency hedging, the weakness of R&D and the lack of national export support agencies.

Among the policies demanded to reduce these obstacles is the establishment of relays in the target markets, an increase in the means available to economic advisers of diplomatic missions abroad, and also the creation of a special bank supporting export activities…

4) What opportunities would be offered by a better integration in GVCs of SMEs?

Opportunities are numerous. Between 60% and 80% of trade flows take place within the GVC. For a company in a developing country, integrating these GVCs would be a great way to export its production. The integration of GVC can also improve the productivity and competitiveness of the company. For example, better integration into these GVCs could facilitate the upgrading of both product quality and production processes standards, help improve employee skills, give access to new technologies, etc.

The fragmentation of production processes allows firms in developing countries, especially SMEs, to use comparative advantages to produce and export part of their value chain in which they are more competitive.

This would be one of the best ways to accelerate the growth of Moroccan exports, as well as the shortest way for SMEs to benefit from both productivity and competitiveness improvement and better positioning in the international market.

5) What policy could be implemented to improve the integration of SMEs into GVCs?

First of all, we can notice that SMEs will be at a disadvantage in the face of large companies, which benefit from better productivity and a better capacity to acquire and absorb new technologies, and therefore to integrate GVC.

Among the obstacles to be overcome are the lack of an efficient logistic services, the lack of product competitiveness, the difficulties to satisfy the requirements of ordering customers and to put the products and production processes to the required quality standards etc.

The State could therefore improve the integration of SMEs by offering them a support to bring products and production processes into conformity, a support for employee training, a support for networking with foreign companies, and finally and most importantly, an increase in available bank credits.

Interviewed by Constantin Tsakas

[1] This activity received financial support from the European Union through the FEMISE project on “Support to Economic Research, studies and dialogues of the Euro-Mediterranean Partnership”. Any views expressed are the sole responsibility of the speakers.