The Mediterranean regions are the medium of the interaction between diverse cultures and people of the land surrounding the Mediterranean Sea-the central superhighway of transport, trade and cultural exchanges. Approximately 142 economies are a part of Mediterranean regions including: Spain, France, Italy, Greece, Turkey, Syria, Israel, Morocco etc. These regions face a lot of economic challenges ranging from regional inequality, low per capita income, and weak governance to demographic explosion. To tackle all these hindrances, policies to encourage, support and develop SMEs are made.
Regional Problems in Mediterranean Regions
Reports suggest that the Southern Mediterranean countries have the third fastest growing population in the world whereas working age population has grown by 27.8%. Current growth rates are unlikely to provide sufficient jobs for new entrants. The fiscal pressures are increasing and the World Economic Outlook indicates 0.6% annual average growth for Northern Mediterranean regions while it 5% on average for the Southern part.
SME’s are the Engine of the Mediterranean Economy
Hon. Edgar Maalouf, in the parliamentary sessions addressed the forum: “Small & Medium Enterprises are the road to economic development and social justice”. The forum announced the importance of financial inclusions in the Mediterranean areas thus encouraging SMEs and reducing unemployment while attaining economic growth. SME’s are of critical importance because they account for 60-70% in GDP as well as creating a good share of employment. World Bank states that, relative to larger firms, SMEs enhance competition, entrepreneurship, job growth and poverty eradication.
SMEs are mostly labor oriented, and they have the potential to act as the basic drivers of development. SME development increases the competition improving the per capita income of the economy. This can help generate increased opportunities on both economic and political fronts. With increasing population and urbanization in the Mediterranean regions, a number of concerns relating to sustainable development include inadequate infrastructural facilities, low political and economic growth, and environmental issues. MED is working in boosting and developing SMEs in this regard that can help aid the development of various Mediterranean economies.
