Moroccan Economic Policies Reserved by Isabel Vergara
From International Business Wiki
Development of the Economic Policies of Morocco
During the early 1990s, Morocco began to pursue projects to reform its economic and trade environment. And although these projects, better known as policies, have been slowly stabilizing the economy of the country, they have not made a mayor difference when it comes to the growth of the various sectors of the economy. The following are the sectors that Moroccan economic policies have not been able to stabilize: - The unemployment rate, which have not decline in a long period of time. -The GDP growth rate, which it has slowed 2.1% due to an agricultural drought in 2007. -The poverty level, which reaches almost a 20% in the urban areas of the country. -The degree of dependence of foreign energy. -The ability to develop small and medium size enterprises. Still, the Moroccan government keeps working continuously in the creation of new policies in order to create a new diverse economic system that would let the country establish itself in international markets. Some of the economic and trade policies that have been in effect during the past years include the following: -In 1992 and 1993 Morocco made improvements in the investment sector and also worked in making the economic liberalization for businesses stronger. The country was successful in making these improvements in the economy, even though it was going through a series of turmoil of events that were caused by the international currency markets. -In 1993 Morocco finalized repaying its foreign debt with the country’s increases in revenue. On January of that same year, Morocco decided to establish the dirham as its currency for current transactions and also started the privatization program.
-In 1994 the country’s GDP increased by about 11.5% as a result of the growth of various sectors of the country’s economic system, with the exception of the building and public works sector. The agricultural sector was the most impressive since it increased by 63%, which made a total of three quarters of the country’s GDP growth.
-In 2000 Moroccan authorities enter an agreement with the European Union in order to initiate the opening of the country’s own industries to world markets. - In 2005, the Moroccan government started with a project that focused on the social development of the country called the National Initiative for Human Development, or INDH. This project targets the importance of improving the living conditions of the citizens living on the parts of the country that have already reached a poverty level. The main goal of this policy is to reduce poverty level and the unemployment rate. -In 2006, Morocco entered a Free Trade Agreement (FTA) with the United States in order to achieve the country’s long term goals, which includes the improvement of education and the increases of job prospects for the Moroccan youth and the closing of the income gap between the rich and the poor, which the government has planned to achieve by increasing tourism and also increasing the competition within the textile industry. Although the economic system of Morocco had gone through many changes, its results have paid off. Morocco now stands as one of the most economic stable of the North African nations, along with Egypt and Tunisia, which all in total make up a 25% of the total African GDP. The country’s achievements includes a lower inflation rate, an adequate increase in external reserves, a reduction of debt to a more acceptable level, and finally, a great progress made on its structural reforms, specially the privatization and price decontrol.
Works Cited
Central Intelligence Agency. (2008). The World Factbook. Retrieved October 27, 2008, from: https://www.cia.gov/library/publications/the-world-factbook/geos/mo.html
Zunes, S. (1998, December). Morocco and Western Sahara. Foreign Policy in Focus. Retrieved October 29, 2008, from: http://www.fpif.org/briefs/vol3/v3n42mor.html
Rabat. (2008, May). Morocco: Preliminary Findings of the 2008 Article IV Consultation. International Monetary Fund. Retrieved October 27, 2008, from: http://www.imf.org/external/np/ms/2008/053008a.htm
