Economy: Morocco has laid the foundations for "sustainable and clean" growth, says World Bank.
5 May 2014
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The World Bank's Maghreb operations director, Simon Gray, said that Morocco has already "laid the foundations for sustainable and clean growth, becoming a model in the MENA region" in terms of environmental protection and the fight against climate change. "By combining these reforms with a policy focused on creating jobs, wealth and opportunities, particularly for the most vulnerable population, Morocco can further strengthen its green growth and promote a sustainable development model," said Mr. Gray in an interview with the MAP, after the World Bank's Board of Directors approved the Strategic Partnership Framework (SPF) with Morocco for the 2014-2017 period on Tuesday evening in Washington.
Morocco has taken steps to reduce its dependence on fossil fuel imports, to promote renewable energies, both solar and wind, and to limit pollution from any source, Mr. Gray specified.
"Water, a scarce and precious resource for the Kingdom, has also been at the heart of strategic reforms targeting the agricultural sector, to reduce water overuse and limit its pollution," he added. He also indicated that by combining these reforms with a policy focused on creating jobs, wealth and opportunities, particularly for the most vulnerable population, Morocco can further strengthen its green growth and promote a sustainable development model.
In a related context, he reiterated the World Bank's support for this process, through a multi-sectoral program targeting sectors such as water, energy, transport and agriculture. A $300 million policy development loan has recently been approved to support green and inclusive growth, as well as a set of nationally developed reforms aimed at improving the efficiency of natural resource management and encouraging the transition to low-carbon growth," he said.
Regarding Morocco's proactive approach to promoting South-South cooperation and on an African scale, the Bank official believes that the Kingdom "has made a smart choice" by turning to sub-Saharan markets, some of which are booming, to find an outlet for its exports and expertise in areas as diverse as real estate, insurance, or the banking sector. "Thanks to the efforts made in recent years, Morocco can also serve as a reference in establishing a favorable framework for economic growth in sub-Saharan Africa," he assured.
He also indicated that the support of the International Finance Corporation (IFC) for the development of South-South investments from Moroccan companies is a priority area of the World Bank Group's intervention in Morocco, adding that investments in the region will increase cooperation between sub-Saharan African countries and Morocco, but also between the various countries in the region with a view to genuine regional integration.
"Economic development is a first step towards poverty reduction and improving the well-being of Africa's growing population," he stressed. Regarding the resilience of the Moroccan economy in the face of the gloomy economic situation facing many countries around the world and on the continent, Mr. Gray noted that "the Moroccan economy has overcome the successive crises that have shaken the international economy since 2008 without too many apparent setbacks."
He also attributed this resilience to an effort to consolidate public finances in the early 2000s, and in particular to near-balanced or slightly surplus budgets, explaining that the country was able to fully implement counter-cyclical policies to manage successive crises (financial, oil, and sovereign debt crises in Europe).
The World Bank's Maghreb operations director also noted that "economic growth has been supported, in part, by widening budget and current account deficits," specifying that "public debt has increased significantly and foreign exchange reserves have decreased, but activity and employment have been largely preserved." "A new phase is now opening up for the Moroccan economy. After an active demand management policy, it is now necessary to strengthen supply, particularly exportable supply, and to rebuild macroeconomic room for maneuver to face future crises," according to the official of the financial institution.
In the same context, he welcomed the significant effort made in 2013 by the Kingdom to reduce the twin deficits and limit additional indebtedness, particularly thanks to successive adjustments to the compensation policy.
"We encourage the authorities to continue on this path in 2014 and in the medium term and confirm our commitment to fully support the Moroccan economy in the coming years, through the mobilization of our financial resources, our technical assistance and our analytical capacities in the service of greater prosperity for all Moroccans," he maintained. The World Bank renewed its CPS with Morocco at its board meeting, increasing its financial support to $4 billion during the 2014-2017 period.
Lopinion.ma
Published May 2, 2014.
Posted online May 5, 2014.
Morocco has taken steps to reduce its dependence on fossil fuel imports, to promote renewable energies, both solar and wind, and to limit pollution from any source, Mr. Gray specified.
"Water, a scarce and precious resource for the Kingdom, has also been at the heart of strategic reforms targeting the agricultural sector, to reduce water overuse and limit its pollution," he added. He also indicated that by combining these reforms with a policy focused on creating jobs, wealth and opportunities, particularly for the most vulnerable population, Morocco can further strengthen its green growth and promote a sustainable development model.
In a related context, he reiterated the World Bank's support for this process, through a multi-sectoral program targeting sectors such as water, energy, transport and agriculture. A $300 million policy development loan has recently been approved to support green and inclusive growth, as well as a set of nationally developed reforms aimed at improving the efficiency of natural resource management and encouraging the transition to low-carbon growth," he said.
Regarding Morocco's proactive approach to promoting South-South cooperation and on an African scale, the Bank official believes that the Kingdom "has made a smart choice" by turning to sub-Saharan markets, some of which are booming, to find an outlet for its exports and expertise in areas as diverse as real estate, insurance, or the banking sector. "Thanks to the efforts made in recent years, Morocco can also serve as a reference in establishing a favorable framework for economic growth in sub-Saharan Africa," he assured.
He also indicated that the support of the International Finance Corporation (IFC) for the development of South-South investments from Moroccan companies is a priority area of the World Bank Group's intervention in Morocco, adding that investments in the region will increase cooperation between sub-Saharan African countries and Morocco, but also between the various countries in the region with a view to genuine regional integration.
"Economic development is a first step towards poverty reduction and improving the well-being of Africa's growing population," he stressed. Regarding the resilience of the Moroccan economy in the face of the gloomy economic situation facing many countries around the world and on the continent, Mr. Gray noted that "the Moroccan economy has overcome the successive crises that have shaken the international economy since 2008 without too many apparent setbacks."
He also attributed this resilience to an effort to consolidate public finances in the early 2000s, and in particular to near-balanced or slightly surplus budgets, explaining that the country was able to fully implement counter-cyclical policies to manage successive crises (financial, oil, and sovereign debt crises in Europe).
The World Bank's Maghreb operations director also noted that "economic growth has been supported, in part, by widening budget and current account deficits," specifying that "public debt has increased significantly and foreign exchange reserves have decreased, but activity and employment have been largely preserved." "A new phase is now opening up for the Moroccan economy. After an active demand management policy, it is now necessary to strengthen supply, particularly exportable supply, and to rebuild macroeconomic room for maneuver to face future crises," according to the official of the financial institution.
In the same context, he welcomed the significant effort made in 2013 by the Kingdom to reduce the twin deficits and limit additional indebtedness, particularly thanks to successive adjustments to the compensation policy.
"We encourage the authorities to continue on this path in 2014 and in the medium term and confirm our commitment to fully support the Moroccan economy in the coming years, through the mobilization of our financial resources, our technical assistance and our analytical capacities in the service of greater prosperity for all Moroccans," he maintained. The World Bank renewed its CPS with Morocco at its board meeting, increasing its financial support to $4 billion during the 2014-2017 period.
Lopinion.ma
Published May 2, 2014.
Posted online May 5, 2014.
