MEDiterranean PROspects

This study quantifies four alternative macroeconomic scenarios for the southern and eastern Mediterranean countries (SEMCs), with the use of GEM-E3, a general equilibrium model. The four scenarios are: i) the continuation of current policies, ii) southern Mediterranean–EU cooperation, iii) a global opening of the southern Mediterranean countries and cooperation with the rest of the Middle East and other developing countries like China, and iv) a deterioration in the regional political climate and a failure of cooperation.

In general equilibrium models the reference scenario is important, as the evaluation of the alternative policies modelled is based on their deviation from the reference scenario. The reference scenario relates to the development of an economic outlook for each region and sector of the model. This means that assumptions are made about the main drivers of growth, e.g. population growth and technical progress. This report provides the main assumptions used for the development of the reference scenario in the MEDPRO project.

This report presents the economic and structural database compiled for the MEDPRO project. The database includes governance, infrastructure, finance, environment, energy, agricultural data and development indicators for the 11 southern and eastern Mediterranean countries (SEMCs) studied in the MEDPRO project. The report further details the data and the methods used for the construction of social accounting, bilateral trade, consumption and investment matrices for each of the SEMCs.