The Femise Network for economic and social research

Femise is a Euro-Mediterranean network established in 2005 that aims to conduct policy research and make recommendations with respect to economic relations between Europe and its Mediterranean partners. Some relevant examples herein.

Najet Belhatem - Cairo, Eurojar

“Femise is a unique democratic-based network of more than 80 research institutes”, says Ahmad Galal, President of the Euro-Mediterranean Forum of Institutes of Economic Sciences (a non-profit organization). “The creation of Femise is the happy result of fortuitous circumstances. At that time, Egypt's Economic Forum was searching for a possible cooperation with the EU, whereas the Mediterranean Institute had the same goal. So together they decided to get in contact through the EU and this is how the adventure began.” The network gathers more than 80 members of economic research institutes, representing the 44 partners of the Barcelona Process and the Union for the Mediterranean (including 27 EU countries and 10 Southern Mediterranean partner countries). These institutes undertake together economic and social research in a win-win situation.

The Northern institutes might have a more advanced level of research experience. “But that does not necessarily mean that Southern institutes are less competent”, explains Ahmad Galal, as “Southern institutes are experts on their own countries’ affairs”, adding that “Femise aims to develop high-quality research.”

Autonomy is Femise’s another asset, even though the forum is supported by the European Commission within the MEDA program. “We have total freedom of action” says Galal. But what about the field impact of Femise research activities? According to him, members of Femise are often invited to participate in decisions making meetings as experts. But, at the end of the day, the final decision remains a political one.”

The financial crisis
Femise research reports are published on www.femise.org. An annual report about a main issue explored in the Mediterranean region is also available on the forum’s website. In 2009, Femise launched a study on the impact of the international financial crisis on the partner countries. Entitled “preparing the Mediterranean for the way out of the crisis”, the study aimed to identify the transmission channels of the crisis in the partner countries and to quantify its impact. “It seemed highly important to identify economic policy responses that could reduce the damaging effects of the crisis and avoid losing past accomplishments.”

In reality, the study found that Southern economies were indirectly affected by the crisis. “in a reverse way to what happened in the developed countries, the crisis generated an income effect, and consequently a decreasing GDP, largely because of the decrease in exports, the slow rate of immigrants’ money transfers, the potential decline of the tourism industry, as well as the decrease in foreign direct investments.”

The report says that “the European Union should be responsible towards the Mediterranean countries, which, above all, got involved in the economic reform after following EU advices. But how will the Europeans be able to help their Southern Mediterranean partners when rescuing Greece and keeping an eye on Spain’s economy are viewed as high priority?”

“This question is in line with a more general interrogation. From the Barcelona process to the Association Agreements and the Union for the Mediterranean, there has never been a serious reflection on the emergency measures to be taken in a time of crisis. Structural imbalances exist from the beginning… As if the goal behind the whole story is not clear”, says Ahmad Galal. The report points out that “the crisis aggravates the commercial imbalances that accompany the Mediterranean countries since the asymmetrical openness shown during the launching of the Barcelona process.”

And yet, the Mediterranean countries should have counted on their products’ competitiveness, “as competitiveness is one of the main requirements for a successful integration”, says the report. According to Galal, “much of the responsibility lies also with Southern countries leaders, who, even with a quota system, were not able to get a strong position in European markets.”

Besides, Mediterranean countries suffer from a weak South-South cooperation: “only 5% of their external exchanges are made within the southern Mediterranean region… A solid South-South cooperation would have certainly helped the Mediterranean countries strengthen their capacity to resist the international financial crisis”, says Femise report.

See the website: www.femise.org