Euro-Mediterranean Industrial Cooperation

Paris, November 2008

Marie Corman

Euro-Mediterranean Industrial Cooperation

Policy Framework

Barcelona ProcessEuropean Neighbourhood Policy

Union for the Mediterranean

Ministerial conference in Nice November 2008

To take stock of progressTo fix priorities for the 2 years aheadEuro-Mediterranean Charter for

Enterprise

Euro-Mediterranean Charterfor Enterprise

Quality business support schemes and services

Quality business support schemes and services

Strong business associations

Strong business associations

Innovative companiesInnovative companies

Improved skillsImproved skillsStrengthening Euro-

Mediterranean networks and partnerships

Strengthening Euro-Mediterranean networks

and partnershipsEasier access to finance and investment-friendly

taxation

Easier access to finance and investment-friendly

taxation

Better market accessBetter market access

Simple Procedures for business

Simple Procedures for business

Education and Training for Entrepreneurship

Education and Training for Entrepreneurship

Clear and Targeted information

Clear and Targeted information

Scope, objective, nature and focus

Scope: 9 Mediterranean partner countries and their stakeholders

4 organisations : Commission, OECD, ETF, and EIB Objective:

Conduct a thorough enterprise policy assessment covering 77 policy indicators in 10 key policy areas affecting the life-cycle of a company, from birth to maturity

Nature: Pilot project

Focus: Policies developed and delivered mainly by central government institutions

Two Assessment teams operating in parallel:

OECD Private Sector

DG Enterprise & Industry

European Training Foundation

European Investment Bank

Independent Consultants

Relevant Institutions in Charge of Policy Elaboration and Implementation for Each

Dimension

National Experts

Key Stakeholders

Independent Team Country Team [operating under the National Charter Co-ordinator]

Steps in the Charter Assessment ProcessSteps Timeline/Location

Define assessment grid in cooperation with MED experts Workshops held in :• Turin (Italy), 10-11 Sept. 2007• Brussels 13 -14 Sept. 2007

Endorsement and validation of assessment grid October 2007

Launch of parallel assessments Dec. 2007- February 2008

Technical meetings to analyse preliminary results to devise weighting system January – February 2008

9 bilateral meetings (Commission+ MED country) to discuss results of parallel assessments with national stakeholders February – March 2008

Regional meeting to present final results 16 April 2008

Finalisation and publishing of Report June – October 2008

Official presentation of the Charter report at the 7th Euro-Med Ministerial Conference on Industry Nice, 5-6 November 2008

Key Results – Overall Assessment

• Convergence towards policy guidelines of Charter progressing in MED region, but at different paces across the region

• Progress most noticeable in : Egypt, Jordan, Morocco and Tunisia

• Transition towards horizontal enterprise policy at early stage: Algeria and Syria

• Progress hindered by conflicts and political instability: Lebanon and Palestinian Authority

• Well-developed enterprise policy: Israel

Dimension 1 Simple procedures for enterprises

In most MED countries building blocks for enterprise policy in place. However:

• No comprehensive enterprise development strategy

• Inter-ministerial policy co-ordination is generally weak

• Clear assignment of tasks and competencies in enterprise policy elaboration and implementation among ministries and implementing agencies needs improvement

• Regulatory reform initial stage (except Egypt and Israel)

• Improvements to company registration. OSS in place (Egypt, Jordan, Lebanon, Morocco, Tunisia)

Dimension 1 Simple procedures for enterprises

0.0

1.0

2.0

3.0

4.0

5.0

Dimensions 2 and 3 Education and Training for Entrepreneurship

and Improved Skills

• Education systems currently do not promote entrepreneurial attitudes (except Tunisia)

• Lack of lifelong learning perspective as a central pillar to competitive economy

• Lack of regular surveys of enterprise community to track skills and training needs and to improve policy

• Well-developed practice on training for expanding enterprises (Egypt, Israel, Jordan, Morocco and Tunisia), but need for developing knowledge sharing networks

Dimension 2 Education and Training for Entrepreneurship

0.0

1.0

2.0

3.0

4.0

5.0

Dimension 3Improved Skills

0.0

1.0

2.0

3.0

4.0

5.0

Dimension 4 Access to Finance

• Asset backed lending main source of external financing, but high collateral requirements

• Little risk capital, VC industry early stages (except Israel)

• Lack of development in credit information services (except Israel and Tunisia)

• Well developed credit guarantee schemes operating in partnership with commercial banks (Egypt, Jordan, Morocco, Tunisia)

Dimension 4Access to Finance

0.0

1.0

2.0

3.0

4.0

5.0

Dimension 5Better Market Access

• National Export Strategies have to be defined (except Israel and Egypt)

• Well-established government export agencies and export promotion programmes

• Implementation of intra-regional trade integration at an early stage

• Improvements in simplification of international trade procedures (Egypt, Israel, Morocco and Tunisia)

• Further progress needed to prepare Agreements on Conformity Assessment and Acceptance of Industrial Products

Dimension 5 Better Market Access

0.0

1.0

2.0

3.0

4.0

5.0

Dimension 6Innovative Firms

• All around recognition that innovation is a source of long-term prosperity and steps to establish innovation systems

• Systems focus on creating linkages with universities, incubators, upgrading human captial and technology upgrading

• Volume of R&D Investment is limited for region, lack of sources of technological innovation (except Israel)

• Development of comprehensive innovation strategies (Egypt, Tunisia)

Dimension 6Innovative Firms

0.0

1.0

2.0

3.0

4.0

5.0

Dimension 7Strong business associations

• Public-private consultations practices well-established all around, but geared to serve insider interests versus new market entrants

• Practices vary in terms of framework, frequency and degree of transparency

• Private sector organisations gaining strength as advocates and service providers (Palestinian Authority)

• Emerging networks in high-value sectors, women and youth entrepreneurs

Dimension 7Strong business associations

0.0

1.0

2.0

3.0

4.0

5.0

Dimension 8 Quality of business support services

• In all countries programmes (services, targeted groups) to support small firms to overcome market failures (Enterprise Upgrading/Mise à niveau)

• Business establishment support centers (industrial parks and zones) are well-established in most countries

• Information gap about availability of programmes

• Lack of monitoring and evaluation tools to evaluate effectiveness of programmes using sizeable resources

Dimension 8Quality of business support services

0.0

1.0

2.0

3.0

4.0

5.0

Dimension 9 and 10EuroMed partnerships and networks,

Clear and targeted information

• Experience in networking and partnerships between firms and between business support services at Euro-Med level but often donor funded pilot projects

• Significant needs to improve quality of information, especially online

• Development of interactive websites, portals and networks of information centres (Egypt, Israel, Morocco and Tunisia)

Dimension 9EuroMed partnerships and networks

0.0

1.0

2.0

3.0

4.0

5.0

Dimension 10Clear and targeted information

0.0

1.0

2.0

3.0

4.0

5.0

Next steps

• Ministerial conference in Nice : ACTION• Focus on implementing recommendations • Next assessment by 2012• In the meantime, fine tune set of indicators paying

more attention to SMEs, sustainable industrial development, accountancy and auditing standards, etc

• Synergies, cooperation, a role for FCM

Euro-Mediterranean Industrial Cooperation

http://ec.europa.eu/enterprise/international_relations/docs/mediterranean/2008_report_charter_en.pdf

Marie.Corman@ec.europa.euMarie.Corman@ec.europa.eu