Assessing EU Aid to the ‘Southern Partners’ of the European Neighbourhood Policy: Who Benefits from the Reforms in the Agricultural and Industrial Sector?

Abstract

This article critically assesses the claims of the European Neighbourhood Policy (ENP) to support the economic development of ‘southern rim’ states. By amending Putnam's two-level game analysis, the paper exposes the interactions between domestic, national and supranational actors and demonstrates the outcomes of the ENP reforms in the agricultural and industrial sectors. Particular attention is given to the contribution of the ENP to the development of a dual agricultural market in these countries and to the effects of standardization for North African businesses. The article concludes by arguing that in both case studies, and despite the changes brought by the ‘Arab Spring’, (recalibrated) elites still retain established vertical ties with domestic businesses (especially small and medium-sized enterprises)—a situation that benefits certain EU industrial and agricultural companies as well.