Since the launch of the Barcelona Process in 1995 and later the Euro-Mediterranean Partnership, economic relationship between the European Union (EU) and Southern Mediterranean has grown tremendously. Trade volume, in terms of absolute value, between the EU and Southern Mediterranean has grown to an unprecedented height. Although the value has increased, foreign direct investment (FDI) from the EU to Southern Mediterranean remains low. South-to-North migration has also undoubtedly increased given the fact that it has become one of the priority concerns of the EU. Development has taken place through these economic exchanges. However, economic development growth rate remains considerably low compared to that of Latin America and Southeast Asia. This paper discusses about the economic development dynamic of Southern Mediterranean in comparison with that of Latin America and Southeast Asia through economic indicators, economic openness and trade, FDI and migration flows and structures. It also discusses about the challenges faced by Southern Mediterranean and how the economic crisis in the EU may affect their economic relationship.

The Euro-Mediterranean Partnership, that is formerly known as the Barcelona Process, whose one of the main objectives is aimed at eventual economic development of the developing Southern Mediterranean with the assistance of the developed European Union (EU). Since its launch in 1995, EUMediterranean relationship has unquestionably improved. Despite so, economic growth in the Southern Mediterranean has remained unimpressive. FDI undoubtedly compensates the failure of the governments in implementing effective economic development policies that require large sum of capital to actualise. Despite an increase in FDI, Southern Mediterranean still remains very vigilant over excessive foreign ownerships that may threaten its sovereignties. Its overall political stability is one of the most important sources of the meagre FDI being one of the most polemical region in the world. The alternative to these issues that Southern Mediterranean are facing is migration. Outward migration is the next most adequate substitute for FDI that can be used as both economic and political tools. Migration, first of all, helps relieve the pressure on the government to solve the stubbornly high unemployment rate, particularly youth unemployment. Provided migrants eventually return home, they will become the most important source of knowledge transfer and technology diffusion in Southern Mediterranean. Meanwhile, remittance has become one of the most vital sources of economic development for Southern Mediterranean. Remittance sent to home country increases the generally low purchasing power of the household that allows better condition of living by importing better quality goods and services, invests in small business or in other productive investments. While migrants remain resided in the host country act as actors to help explore potential markets in the foreign while the returning migrants act as promoters promoting the benefits of trade openness and world trade integration. This paper primarily accesses the economic development of Southern Mediterranean through the EUMediterranean cooperation. This process will also be compared with that of Southeast Asia where the Japanese “flying geese paradigm” has played a very important role in its economic development through trade and FDI; while in Southern Mediterranean, trade and migration are the more important motors behind its economic development.

ing fromRegionalism's Political Implications in the Euro-Mediterranean Region 8past efforts that have never been fully implemented8("virtual" integration), the maininitiatives are the Arab Maghreb Union (AMU), the Arab Free Trade Area and a potentialFree Trade Area within the eastern Mediterranean, integrating Mashrek countries withTurkey and eventually, Israel. We will try to show how political, security and culturalmatters are to be taken into account for a comprehensive analysis of ...