Morocco's opening to the international economy.
2 April 2013
Read by 1869 persons
Like all developing economies, the Moroccan economy has gone through several stages and has undergone various changes, following the political philosophies prevalent during each period, especially since Morocco, after independence, tried to restructure the national economy. During the colonial period, Morocco experienced a certain economic freedom, which was reflected in the role of the private sector and foreign investment in Morocco, particularly that of French investors.
This same period saw a limited role for the public sector, in such a way that the interests of the colonizer were preserved. However, with the end of the colonial period, Morocco had to work hard, especially economically, to restructure the Moroccan economy, which had just emerged at the time, something that did not take long. Indeed, Morocco adopted a planning policy. With this policy adopted, the role of the government increased at the expense of the role of the private sector during the 1960s. This policy was the result of the government's observation that, to achieve a certain economic liberalization, it was necessary at all costs to control the public sector and subsequently protect the recently established economic sovereignty of the Kingdom. As a result, the Moroccan government launched major projects aimed at improving and structuring the national economy, following an economic program developed in partnership with the International Monetary Fund (IMF) and the World Bank.
The problem was the change in policies following changes in government, a change that even affected the expected objectives, especially since Morocco experienced a financial crisis in 1964. Moreover, GDP growth was only 2.3%, while it was estimated that 6.2% growth could be achieved. It was therefore necessary to redress the situation, and in doing so, a new goal was defined: to improve national infrastructure. As a result, a panoply of projects emerged, including several institutions such as Bank Al Maghrib, ONCF, ONE, etc. And in 1986, the number of these institutions reached 687, making the government the largest investor in the country. However, despite the policies followed, the institutions thus created did not aim to generate profits, but the main goal was to serve the citizens, which obliged the state to intervene to continuously subsidize these institutions in order to minimize losses, something that could not last naturally, because the state's financial resources were constantly dwindling. Added to this was the international situation that has prevailed since the 1980s, characterized by soaring oil prices, not to mention that the price of phosphate fell by 47% in 1976, especially since drought had severely hit, thus destabilizing the Moroccan economy, particularly from 1981.
Morocco was therefore faced with several problems, and was forced to review its economic policy once again, which allowed its economy a certain opening to international markets, and which has continued to consolidate over the years, whether through trade and customs agreements signed with several Arab countries, or the free trade agreement signed with the United States, not to mention that the European Union is now Morocco's main trading partner. In this same perspective, Morocco has managed to establish its place internationally, taking advantage of its geostrategic position, thus building the port of Tangier Med, which is less than 24 hours from the port of Barcelona or Marseille. Moreover, the port is located on the second busiest maritime route in the world, namely the Strait of Gibraltar. The opening to the international market has been consolidated with the presence of the Franco-Japanese group Renault-Nissan, which has set up in the Tangier free zone, and which has invested more than 600 million euros to allow the production of 200,000 cars/year, a production that could reach 400,000 cars/year in the coming years.
Other sectors have also experienced growth, as foreign investment has affected several sectors of activity, including the aeronautical sector: indeed, the world's 3rd largest aircraft manufacturer, BOMBARDIER, has invested more than 200 million dollars in Morocco, which will generate 850 direct jobs, and 4,000 indirect jobs. Morocco's opening to the international market is therefore a real boost for the Moroccan economy, which has been trying for several years to establish itself in a very competitive market, a market that has seen the rise of several economies, including those of Japan, China, Korea, and Turkey... Will the Moroccan economy be able to cope with the current situation, especially since the world is experiencing an unprecedented financial crisis?
Hamza B.
Oujdacity.net
Published on April 1, 2013.
Posted online on April 2, 2013.
This same period saw a limited role for the public sector, in such a way that the interests of the colonizer were preserved. However, with the end of the colonial period, Morocco had to work hard, especially economically, to restructure the Moroccan economy, which had just emerged at the time, something that did not take long. Indeed, Morocco adopted a planning policy. With this policy adopted, the role of the government increased at the expense of the role of the private sector during the 1960s. This policy was the result of the government's observation that, to achieve a certain economic liberalization, it was necessary at all costs to control the public sector and subsequently protect the recently established economic sovereignty of the Kingdom. As a result, the Moroccan government launched major projects aimed at improving and structuring the national economy, following an economic program developed in partnership with the International Monetary Fund (IMF) and the World Bank.
The problem was the change in policies following changes in government, a change that even affected the expected objectives, especially since Morocco experienced a financial crisis in 1964. Moreover, GDP growth was only 2.3%, while it was estimated that 6.2% growth could be achieved. It was therefore necessary to redress the situation, and in doing so, a new goal was defined: to improve national infrastructure. As a result, a panoply of projects emerged, including several institutions such as Bank Al Maghrib, ONCF, ONE, etc. And in 1986, the number of these institutions reached 687, making the government the largest investor in the country. However, despite the policies followed, the institutions thus created did not aim to generate profits, but the main goal was to serve the citizens, which obliged the state to intervene to continuously subsidize these institutions in order to minimize losses, something that could not last naturally, because the state's financial resources were constantly dwindling. Added to this was the international situation that has prevailed since the 1980s, characterized by soaring oil prices, not to mention that the price of phosphate fell by 47% in 1976, especially since drought had severely hit, thus destabilizing the Moroccan economy, particularly from 1981.
Morocco was therefore faced with several problems, and was forced to review its economic policy once again, which allowed its economy a certain opening to international markets, and which has continued to consolidate over the years, whether through trade and customs agreements signed with several Arab countries, or the free trade agreement signed with the United States, not to mention that the European Union is now Morocco's main trading partner. In this same perspective, Morocco has managed to establish its place internationally, taking advantage of its geostrategic position, thus building the port of Tangier Med, which is less than 24 hours from the port of Barcelona or Marseille. Moreover, the port is located on the second busiest maritime route in the world, namely the Strait of Gibraltar. The opening to the international market has been consolidated with the presence of the Franco-Japanese group Renault-Nissan, which has set up in the Tangier free zone, and which has invested more than 600 million euros to allow the production of 200,000 cars/year, a production that could reach 400,000 cars/year in the coming years.
Other sectors have also experienced growth, as foreign investment has affected several sectors of activity, including the aeronautical sector: indeed, the world's 3rd largest aircraft manufacturer, BOMBARDIER, has invested more than 200 million dollars in Morocco, which will generate 850 direct jobs, and 4,000 indirect jobs. Morocco's opening to the international market is therefore a real boost for the Moroccan economy, which has been trying for several years to establish itself in a very competitive market, a market that has seen the rise of several economies, including those of Japan, China, Korea, and Turkey... Will the Moroccan economy be able to cope with the current situation, especially since the world is experiencing an unprecedented financial crisis?
Hamza B.
Oujdacity.net
Published on April 1, 2013.
Posted online on April 2, 2013.
