How to improve the economic and social performance of Eastern and Southern Mediterranean countries

In this brief the authors analyze the key challenges facing the MED11 countries and propose policy measures that could improve the region’s economic and social performance

Prospects for Future Euro-Mediterranean Trade

Initiatives and agreements between EU and Mediterranean countries aimed at establishing a free trade area. Indeed there has been a liberalization of trade in the last 10 years creating new trade flows, but trade integration still has to be developed further in order to make substantial differences for the Mediterranean countries.Mediterranean region, trade liberalisation, EU Free Trade Agreements

Tourism: an alternative to development?: reconsidering farming, tourism and conservation incentives in Northwest Yunnan mountainous communities

In the last decade, tourism has developed rapidly in the mountainous areas of northwest Yunnan. This growth has led to substantial economic and social changes, with resulting environmental consequences. This article uses a case study to illustrate how local farmers involved in tourism changed their agricultural practices as a result of the transformations that took place in the area. The aim was to examine tourism's expected benefits of poverty alleviation and conservation incentives. Tourism investments were found to have been adopted only by households with available cash and labor, whereas they remained inaccessible for the poor, small landowners who most needed a new source of income and used their land more exhaustively. Relatively rich, large landowners did not take the opportunity to reduce their agricultural activities. Instead, they used supplementary incomes earned from tourism to hire external labor to cultivate their land more intensely. Tourism development failed to generate real incentives for mountain farmers to adopt more conservation measures and prevent soil erosion and nonpoint source agricultural water pollution, which currently constitute serious environmental problems for mountain environments in Yunnan. This article presents recommendations based on the conclusions of the study

Economic Development, Trade and Investment in Southern and Eastern Mediterranean Countries: An Agenda towards a Sustainable Transition. MEDPRO Policy Paper No. 4, February 2013

This policy paper spells out the policy recommendations that emerge from a series of detailed studies undertaken for MEDPRO Work Package 5 on “Economic development, trade and investment” and presents detailed recommendations for the SEMCs and the EU in the areas of macroeconomic management, trade, investment, private sector development and privatisation, and sectoral policies

Study on Quality of Public Finances in Support of Growth in the Mediterranean Partner Countries of the EU

Until the early 1990s, the discussions on fiscal policy primarily centered on the functions of economic stabilization, income redistribution and resource allocation. Long-term growth was not usually viewed as an end itself, and fiscal policy was often not sufficiently tailored to the different circumstances and priorities of countries at different stages of development. It is only relatively recently that the discussion has gradually focused on the links between different dimensions of quality of public finances and economic growth. Based on the conceptual framework for linking the quality of public finances and economic growth that has been developed by the European Commission and applied to the EU Member States, this study examines the conditions under which the budgetary policy, and more specifically expenditure, revenue and financing design would be supportive of growth in the Mediterranean partner countries of the European Union. The study also highlights some of the interlinkages between fiscal policy and growth and summarises empirical findings found in the literature with particular focus on Mediterranean partner countries of the European Union. The main findings of the study are similar to those that apply to the EU Member States and can be summarised as follows: • The way government expenditures are financed matters. Deficit and debt financing clearly undermines growth performance. • The composition of expenditure does matter however the efficiency of the expenditure undertaken is even more important for growth. For countries with good governance indicators the positive impact of the productive expenditures on growth was enhanced. The analysis was applied to the efficiency of education and health expenditures with basically similar results. • Notwithstanding the importance of 'fair' income distribution, when tax policy relies heavily on income taxation to do so, the analysis suggests a likely negative effect on growth. Specifically, consumption taxes were found to depress growth by up to four times less than income taxes. The study concludes by highlighting possible areas in the planning and execution of fiscal policy and governance where growth enhancing interventions can be applied.public finance, economic growth, Mediterranean region

Reforming tax systems - the World Bank record in the 1990s

The main constraint on world Bank operations in tax and customs administration is the Bank's inadequate institutional framework for accumulating knowledge from loan operations, concludes this review of the Bank's record on reform of tax systems in the 1990s. The Bank's theoretical basis for reforming tax and customs administration is still rudimentary. Recent theories stress the importance of institutions that harness voice and improve transparency and contestability, but there is little evidence that reform of these factors alone makes tax administration more effective. Improvements are needed in pre-project diagnosis and project design, especially for examining accountability, administration costs, managerial autonomy, performance incentives for staff, taxpayer equity and services, and environmental factors. Pre-project work could draw more systematically on lessons from previous experience. Institutional components of project design have been biased toward organization, manpower upgrading, and procedures related to information technology. Too little attention has been paid to improving accountability, administrative cost-effectiveness, and anticorruption institution-building. Projects have made inadequate use of different kinds of performance indicators, with little uniformity in those applied. Methods used to evaluate project outcomes could be better and more uniform. Suggestions for future Bank operations: 1) doing better background work and articulating a strategy and comprehensive framework for Bank involvement in reform of tax administration. 2) Possibly supporting and strengthening regional tax administration associations, which could serve as catalysts for change. 3) Strengthening partnering and supporting private sector consultant organizations, so they can manage major components of administrative reform. 4) Institutionalizing the accumulation of knowledge about tax administration (which might require changing staff recruitment, the mix of staff skills, and training plans). The authors provide recommendations for improving project diagnosis, design, performance indicators, and appraisal, as well as a short list of projects that serve as guides to good practice.Enterprise Development&Reform,Decentralization,Public Sector Economics&Finance,Banks&Banking Reform,Municipal Financial Management,Banks&Banking Reform,National Governance,Public Sector Economics&Finance,Municipal Financial Management,Tax Policy and Administration

A GIS approach towards estimating tourist's off-road use in a mountainous protected area of Northwest Yunnan, China

To address the environmental impacts of tourism in protected areas, park managers need to understand the spatial distribution of tourist use. Standard monitoring measures (tourist surveys and counting and tracking techniques) are not sufficient to accomplish this task, in particular for off-road travel. This article predicts tourists' spatial use patterns through an alternative approach: park accessibility measurement. Naismith's rule and geographical information system's anisotropic cost analysis are integrated into the modeling process, which results in a more realistic measure of off-road accessibility than that provided by other measures. The method is applied to a mountainous United Nations Educational, Scientific and Cultural Organization (UNESCO) World Heritage Site in northwest Yunnan Province, China, where there is increasing concern about potential impacts of unregulated tourist use. Based on the assumption that accessibility tends to attract more tourists, a spatial pattern of predicted off-road use by tourists is derived. This pattern provides information that can help park managers develop strategies that are effective for both tourism management and species conservation

Observer and relocation errors matter in resurveys of historical vegetation plots

Aim: Revisits of non-permanent, relocatable plots first surveyed several decades ago offer a direct way to observe vegetation change and form a unique and increasingly used source of information for global change research. Despite the important insights that can be obtained from resurveying these quasi-permanent vegetation plots, their use is prone to both observer and relocation errors. Studying the combined effects of both error types is important since they will play out together in practice and it is yet unknown to what extent observed vegetation changes are influenced by these errors. Methods: We designed a study that mimicked all steps in a resurvey study and that allowed determination of the magnitude of observer errors only vs the joint observer and relocation errors. Communities of vascular plants growing in the understorey of temperate forests were selected as study system. Ten regions in Europe were covered to explore generality across contexts and 50 observers were involved, which deliberately differed in their experience in making vegetation records. Results: The mean geographic distance between plots in the observer+relocation error data set was 24m. The mean relative difference in species richness in the observer error and the observer+relocation data set was 15% and 21%, respectively. The mean pseudo-turnover between the five records at a quasi-permanent plot location was on average 0.21 and 0.35 for the observer error and observer+relocation error data sets, respectively. More detailed analyses of the compositional variation showed that the nestedness and turnover components were of equal importance in the observer data set, whereas turnover was much more important than nestedness in the observer+relocation data set. Interestingly, the differences between the observer and the observer+relocation data sets largely disappeared when looking at temporal change: both the changes in species richness and species composition over time were very similar in these data sets. Conclusions: Our results demonstrate that observer and relocation errors are non-negligible when resurveying quasi-permanent plots. A careful interpretation of the results of resurvey studies is warranted, especially when changes are assessed based on a low number of plots. We conclude by listing measures that should be taken to maximally increase the precision and the strength of the inferences drawn from vegetation resurveys