The research examines the key role played by the five autonomous communities belonging to the Mediterranean Arc in Europe's development

The study El desarrollo del Arco Mediterráneo Español. Trayectoria y perspectivas was presented by Caja Mediterráneo and the Ivie on January 12 in Murcia at a special conference devoted to the Spanish Mediterranean Arc (ARC), made up of five autonomous communities.

Data from the CAM-Ivie study show that Catalonia, the Valencian Community, the Balearic Islands, the Region of Murcia and Andalusia constitute an area of considerable economic importance. Proof of this is that in 2008 the ARC concentrated half of Spain's business and generated an output of 473,000 million Euros, which was above the GDP of 22 countries of the EU-27. A key factor in the ARC's rapid growth has been its ability to attract investment. In 2008, investment in the Mediterranean Arc exceeded 150,000 million Euros, equivalent to over 30% of Gross Value Added.

These factors, together with the capacity to attract population and the expansion of progress from the north to the south of the ARC, confirm the key role played by this area in fostering development. But the study also shows that after several decades of significant advances, the ARC's development pattern does have significant weaknesses which are demonstrated clearly in the current economic crisis and that require a reform strategy.

In this sense, one recalls the economist Paul Krugman's warning in one of his works on geography and trade that the competitive advantages of territories in the past does not guarantee them benefits in the future.

A strategy of reforms in various directions needs to be adopted to overcome the weaknesses of the ARC's development pattern. It is therefore necessary that the ARC strengthen its capacity to generate value added per employee in all activities and base its growth on productivity improvements. Moreover, the public sector should strengthen the effectiveness of their policies in those areas that weaken their competitiveness, such as improving public services to firms and transport infrastructure provision, especially rail. A further aspect to be addressed, according to data from the study, is the threat to long-term development because of environmental degradation.

The study on the Development of the Spanish Mediterranean Arc, El desarrollo del Arco Mediterráneo Español. Trayectoria y perspectivas, was conducted by the Ivie on behalf of CAM. It is presented in four volumes with a synthesis paper, offering a comprehensive and detailed overview of the many geographical, economic, environmental and work activities that shape the Spanish Mediterranean Arc (ARC).

Further information:

Press release (in Spanish)
Presentation (in Spanish)
Speech given at the presentation (in Spanish)