THE RISE OF A UNIFIED MEDITERRANEAN WORLD?

The ancient colossus known as the Roman Empire had made the Mediterranean Sea a Roman lake.  Through the Roman road system and the control Rome exerted over the Sea, the Mediterranean Sea was unified, trade flourished and, for a period of time, there was peace and stability.  The 21st century global economy has resurrected this idea of a unified Mediterranean world.  In mid-July a summit was held in Paris, called by France’s president, Nicolas Sarkozy.  Some 40 heads of state from the European Union (EU) and the southern and eastern Mediterranean created a new club, “the Union of the Mediterranean.”  The proposal is for a secretariat, jointly led by France and Egypt, which will finance ventures on solar energy, anti-terrorism and other cultural exchanges.  Turkey, Israel and Egypt dominate the Mediterranean world, but that is changing.  Oil and natural gas are obviously important, but consider these developments:  Investment by the EU in this world is spread among financial services, telecoms, retailing and construction.  Renault and Nissan are building car factories in Morocco.  A new container port is being built in Tangiers that will be larger than Long Beach, California.  But the economic investment in this region extends outside the EU.  The US is building an aerospace parts factory; Arabs are investing in property and construction; Brazil is investing in fertilizer and textiles, while India in IT and pharmaceuticals. 

Why is this an important initiative?  Several factors explain its potential significance:

1. One-third of the world’s container traffic passes through the Mediterranean, so the new container port being built in Tangiers is no small development.  Near the port, manufacturers will build new factories in a newly created tax-free zone.  All of this will serve the huge market to the north—Europe. 
2. The Mediterranean’s southern and eastern coasts are attracting huge investments, on a scale second only to China.
3. These nations currently have an annual growth rate of 4.4%. 
4. Renault and Nissan are building a huge car factory, in a Franco-Japanese alliance, that will begin by producing 200,000 vehicles annually—double that in a few years.  The aim is to build low-cost cars and vans not only for Europe but for markets around the world.
5. In this region, inflation has come down from an average of 20% to 5%.  Debt has come down from 80% GDP to around 60% and budget deficits from 5% to3%.  Tourism and money coming back from migrant workers has helped fuel some of this.  For the first time, governments now have the means to build better roads and houses.
6. Europe has injected significant capital into this region in the form of investment and loans totaling over 24 billion euros.

But the challenges remain significant as well.  Average income per head in this region is $6,200 and unemployment averages between 20% to 30%.  Further, the EU still sees this region as a potential threat, as well as an opportunity.  It is a source of immigrants, often young and illegal, and mainly Muslim.  Italy and Spain are especially concerned.  Finally, there are few democracies in this region and with that reality a rather predictable political instability.  So, Sarkozy’s dream of a united Mediterranean world is a viable idea that is growing in its appeal.  But the dangers and challenges remain most formidable.  Will there be a revival of a unified Mediterranean world?  The idea no longer seems improbable.

See the most helpful article in The Economist (12 July 2008), pp. 15, 78-80.

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