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The Future of Morocco

Escrito el 19 enero 2013 por Mikel Aguirre en África, Economía Mundial

The «Arab Spring» was rather mild in Morocco, compared with what is still going on in other countries in the region. This result from the role of the king, the Commander of the faithful, but also from the fact that leaders in Morocco have attempted to anticipate the rise of unrest and discontent.

Today, the country has a true asset with its manageable external indebtedness and its solid and dynamic banking sector. However, despite true economic and social progress, and despite the benefits that it derives from phosphates, tourism and better infrastructures, Morocco remain a rural and insufficiently diversified country.

Strongly dependent on raw materials, the Moroccan economy remains fragile. Poorer harvests than in 2011 and the deteriorating economic situation in the European Union, its main economic and commercial partner, are weighing on its growth that could be limited to some 3% in 2012.

Morocco is seen more and more as a regional hub in North Africa for shipping logistics, assembly, production and sales

However, it must still meet three major challenges: education, health and corruption. Much will depend on the implementation of the new constitution, the attitude of the government directed by the leader of the Justice and Development Party (moderate Islamists), and greater social justice. In other words, a reduction of poverty, inequality and unemployment.

Seems that the country is taking the correct steps to achieve it what may bring the necessarily stabilization for this area of the

Comentarios

Tim Palmer 20 enero 2013 - 14:15

The challenges Morocco faces certianly aren’t easy, and are made still more difficult by their lack of clear leadership and internal governance challenges. Before they can begin to focus on economic development and health/education reform, they will have to find and commit to a clear direction for their government to move towards. Up until now, this has proven to be a challenge for a country who is relatively new to democracy and ripe with social inequality.

There is however reason for optimism: 1) Their Prime Minister Abdelilah Benkirane, has instituted various Western democratic practices not seen within the Moroccan government before, 2) Their geographic loacation enables them favorable trade and tourism benefits from Europe, and 3) They have the opportunity to emerge as an example for their region in the wake of democratic transitions from the Arab Spring.
The opportunities are there, however they must be achieved internally through strides made by their government leaders. By doing this, they can then lead through example against further events such as we have seen this past week in Mali and Algeria.

Sara Barragán 20 enero 2013 - 19:08

In the case of Morocco, it is important to remember that the New Constitution is signed by Mohamed VI. The fact that there is not a real change in the political sphere makes us think that it won’t be a full democracy since the beginning, but rather a transition. However, in my opinion, the country is moving in the right direction.

As in many other African countries, I think it is interesting to bring the question: what should come first, economic development or democracy? In the case of Mali (since we are reading much about it during these days), it became an electoral democratic state since 1991. However, in the last presidential elections, there was only a 36.24% voter turnout. The low percentage of political participation is due, among other things, to the fact that most of the population is rural and they don’t have the means, communications and infrastructure necessary for democratic elections to be successful.

In my opinion, a “democracy without voters” plus economic development is the formula that has led to high rates of corruption in many African countries. And this is a risk that must be taken into consideration.

Paula Heras 22 enero 2013 - 19:15

Despite the many challenges Morocco has faced and is still facing, it seems like they are taking steps in the right direction, at least in terms of their economy. In the early 1990s they set economic reform programs, which have lead to some progress. The government has privatized some state-owned companies (although more need to be privatized), they have reduced trade barriers, which is of great importance given its ties with European trading partners. Nonetheless, an important problem still stands which is that of their external debt; they need to privatize more companies, and making their country more attractive to foreign investment. Finally they must deal with unemployment in order to tackle inequalities and improve the living standards of their population which will inevitably lead to better conditions for the country as a whole, and greater political stability.

Naushita Jaising 27 enero 2013 - 13:12

King Mohammed VI managed to curb the Arab spring within Morocco with promises of political reform supported by public spending on rural infrastructure, housing the poor and improving health and education. However, Morocco is one of the top ten recipient countries of remittances which mainly come from Europe. Even if the King plans to keep his promises, the declining remittances due to the slowdown in Europe are most likely to offset state spending. This coupled with lesser trade and poor harvests does not bode well for the economy. If the government is not serious about taking action, it is only a short period of time before the people take to the streets in vociferous protests which will most definitely undermine stability.

Miguel Aguirre 9 febrero 2013 - 11:24

The Key issues for The Morocco economy are:
The Inadequate productivity and competitiveness
Poverty and unemployment (youth in particular) sources of social tension
Vulnerability of tourism to the European economic situation and possible terrorist attacks and the
Insufficient progress on the business environment

Stephanie Uribe 10 febrero 2013 - 09:31

So not to repeat the comments that my colleagues have posted, to which I am in agreement with, I think that Morocco will be undergoing economic development and democracy simultaneously. In fact, with the European economic situation, the slow down of remittances, and the poor harvest, the most important action that the people of Morocco can take is to focus on developing a new competitive market not in natural resources but in industrial goods and services. With Morocco’s close relationship and close geographic vicinity to Europe, if it does it right it is actually best positioned to lead and model to the the rest of the “Arab Spring” countries into transitioning into a fully functioning democratic nation.

Sara Barragán Montes 10 febrero 2013 - 10:08

Hi everybody!

I just found a very good website which talks about the economy in Morocco and explains the key issues highlighted by professor Aguirre: http://www.africaneconomicoutlook.org/en/countries/north-africa/morocco/ Regarding its lack of specialization, you can see in the section “recent development and prospects”, that the agricultural sector is the main one (more than 15% of the total GDP), followed by manufacturing.
Hope you find it helpful,
Sara

Magnus Tulius 6 mayo 2013 - 20:08

Economics for developing States

Following the disappointment of the international community’s current economic system and poor administration of the States in the last 20 years living in a period of “party”, permanent and now no longer works. We propose a mixed system preferably meets the needs of people

Domestic economy (national economy and social market)
The State must ensure the welfare of its citizens without distinction of its economic capacity, promoting class functionality and they struggle dividing the national sense., This is done by promoting the creation of:
• public and private labor sources
• competitive basic services (energy, water sewer and telecommunications)
• Education and culture school normalista more public and private
• Health services with equal coverage in the public and private sectors.
1. – Cups of interest (%)
The State should encourage the legislature to amend laws to lower the interest rates of money by the Central Bank and the State Bank, in strips or sections as headings, under the Ministry of Economy. Tending to zero (0) in the lower segments (enterprise, micro and SMEs). This private banking, will be adjusted to be competitive.
Two. – The internal labor machinery
Consortia, chambers of commerce, industrial clusters and private ownership of small and medium enterprises, are the basis of the domestic economy, can these be subsidiary holding companies with investments abroad without losing their status as SMEs. In these pillars is the absorption of most of the workforce low, medium and high grade. Private investment and state partnership should develop formulas to promote clean production projects and renewable energy. Looking always give value added to goods and services, as criteria for raw materials.
The domestic industrial design can be expressed as. What we behold around us as material inventions, everything is the result of the creative power and ability of each person. All these inventions are used in its most profound significance for human development. (Stimulus to creativity and personal initiative)
Three. – Labor Law
Promote approval (equality) field between labor laws governing public and private institutions, ensuring compensation to encourage their employees “associates” to stimuli proactivity, creativity and continuous improvement of employees. The employee should feel part of the success of your company and the country, the business is involved with their employees, thanks to more horizontal structures. Flexible retirement date (retirement) if the employee is in physical and mental condition to continue producing, however if before age 60 do not have the conditions for the exercise of work the state and the AFP assume equal retirement.

April. – Domestic Trade
Each region has different characteristics than the other and therefore the distribution of its products and services with the application of technology should aim for self-sufficiency and satisfaction of domestic demand evenly inside the country, also consumer values ​​similar , this requires the development of a communication network road, rail, air and sea and coordinated extensive enough.
The energy to move the industry should be the result of government policies, implemented at private or mixed, using clean technologies, high performance and low cost.
Migration from an agricultural country to an Industrialized State, is the result of joint efforts of the Industrial and encouragement of the state, integrating the initiative and capabilities of the employee.
May. – Internal Revenue
The internal tax structure should encourage decentralization of population, industry, trade and distribution of goods and services. For them the state must define tax staggered highest percentage (%) in areas of highest concentration of commercial activity, down to those most neglected areas in industrial investment, ensuring sovereignty, availability and quality of goods and services. Each area or region to close the year of collection, shall retain 25% to be reinvested in their own zone, the remaining 75% going to the administration of the central government for redistribution to all regions in proportion.
June. – Supply and demand versus final value
The balance between supply and demand with the cost to the consumer, advises the annual study “food basket” for the definition of price bands within which are marketed such products and services, avoiding speculation. This promotes the welfare and integration of all sectors of the population, ensuring quality customer.

NOTE: The state promotes and establishes the rules of internal trade. And private or mixed Industry provides goods and services for the welfare of its citizens and the nation.

External economy (free market trade)
Assuming that the state with the private economic dynamics have developed a solid and stable inside, it is envisioned that in some areas it is necessary to establish a trade with other nations, common markets of nations or by TLC. The international trade from the point of view of the benefit of a nation should seek returns on capital and the reinvestment of its domestic subsidiaries (domestic economy) injecting fresh money to promote new initiatives which again affects the welfare of its citizens, improving their salaries, strengthening the industry and macroeconomics.
The consequence of having a stable macro allows and encourages the Entrepreneurship and Associated State to participate in business outside their borders. This when the domestic market has met its demands, in order to accelerate the development process of the nation, using the development of technologies exportable commodity debugging and adding greater value to their goods and services, all with high quality standards.
Trade agreements between states and TLC, and have set their tariffs so that trade policies should be constantly updated and can diversify their investments and to deal in good shape international economic crises.

1. – Profits of foreign trade
 Promotion of economic and social welfare (mission of the business and the State)
 Stability of prices (inflation under control)
 Decreased unemployment
 Increased productivity, improved competitiveness and earnings
 Reduced risk of economic losses (market diversification)
Managers to encourage the achievement of these goals should be the ministry of finance, foreign affairs, foreign affairs and the central bank

Two. – Protected Foreign Trade
Without resorting to protectionist measures the State should establish and promote items for which it is necessary to import, ensuring that the trade balance is favorable to the national market. Stimulating mainly foreign companies established within our country, this means the entry of new technologies, manpower recruitment and supply of raw materials and supplies from local SMEs.
For exports, thanks to the international market diversification should not be complex position our goods and services in other countries. So there must be an ongoing exploration of potential markets and improve existing ones to be redirecting our sales depending on the dynamics of the global economy by varying the international positioning of our goods.

Three. – Objectives of international trade
The development of an open trade policy and international investment flows should accordingly:
• Contribute to the development of the nation and the diffusion of innovation by removing barriers to international trade in goods, services and investments. Strengthening trade relations should allow open markets primarily public and research programs of third countries to the participation of domestic firms.

• Be accompanied by social policies in line with the domestic economy, as indeed the opening of markets can lead to job losses in the retail sector performance. Therefore, the State must continue its cooperation with less developed regions in the fight against poverty, human rights, and respect for international labor standards.

• Close the negotiation of free trade agreements between the State and its trading partners, and strengthen its relations with its strategic partners, especially considering intellectual property rights and protection of innovation, public markets, the rules competition or consumer protection.
• Continuous development of new national policies on investments, create a favorable business environment, facilitate their access to foreign markets, including public markets, and defend the rights of the State for a fair and safe trade.

Overall international trade should promote the development of the nation, participating in all international rules established for this trade. Only that when these returns for taxes, tariffs or other mechanisms within the state, they must be translated into benefits for all citizens. These achievements are assimilated by workers and employers, producing a synergy that stimulates joint commitment and creativity of all stakeholders.

Epilogue:
Every Nation or State, under conditions of political judgment, is to the welfare of its people (citizens). In particular for those companies that are developing, it is advisable to establish mixed economic policies to safeguard the good living conditions of its people. In these countries, even those who are in more advantageous economic situation, are victims of underdevelopment and lack of resources, we have left then for strata modest! A good government, regardless of political persuasion will always put its efforts on the welfare of the nation by applying social and economic policies that favor. In this sense, we propose herein the application of Internal Economy (national economy and social market) for domestic and external economy (free market trade), the main development of the macro economy.
A nation that does not develop its own technology and export, is doomed to underdevelopment!

Tulio Eugenio Muñoz Vergara, Management Engineer and Technological Development, Chile.
e-mail: tuliomunoz@hotmail.com

Moroccan 13 diciembre 2016 - 01:02

the 3 major issues that faces the Moroccans are : Corruption, Corruption, Corruption.
From the top to the bottom. Bad Educational System. Bad Justice System. Very Fragile Economy. Illiteracy about 65% of the population. Drought. Lack of security (too many crimes). The Big fish eats the small ones. The future is very vague…

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