Division 7

The economies of the region face the common challenge of creating employment opportunities and an improved standard of living in the context of rapid demographic growth. The necessary acceleration in development can only be reached through greater competitiveness within the global economy. This requires an improvement, inter alia, of the capacity for innovation of the partners. As free trade is gradually established, so the governments must leave room for private-sector-led growth and for foreign investment. Sound macroeconomic management must be completed by pro-growth and investment-friendly economic policies and regulatory framework. The indicative programmes will take into account the characteristics of each economy when planning interventions.

Economic growth needs to be accompanied by greater social cohesion. Inequalities in access to essential services such as education, health, social safety nets, housing and water persist which reduce the life-chances of significant portions of the population of the partners and which have a negative effect on long-term growth prospects. These needs should be addressed urgently through improvements in the quality of services and greater efficiency in their delivery. Strategic interventions are required for the development of human resources in general as they represent the region's greatest asset for the future. In particular, the integration of the young and of women into the workplace constitutes an important factor of social development for the region.