Morocco weakness Corruption

From International Business Wiki

Morocco biggest disadvantage in Globalization is its continual need to conduct business in a corrupt and unethical procedure. Some may ask why corruption is a business weakness and not a business strength.Well the answer is quite simple. Corruption impedes nearly every single positive aspect of a country’s economy.This corrupt way of business does not just happen it is passed down from generations and once one indulges in corruption it becomes a way of life, and it is in arduous task to break the cycle. But, there are organizations that are beginning to rise to at least, if anything, slow the corrupt ways of Morocco’s Business practices.

Corruption is considered by many as a business weakness because it inhibits globalization.What private investor would want to do business in a country where the number one complaint by entrepreneurs is the enormous administrative barriers they go through to conduct business in Morocco? Entrepreneurs also agreed that the judicial process in Morocco was highly ineffective and did not have a significant hold on corruption. Corruption also promotes political instability which creates government expenditures being used only to help a small few instead of the entire whole.

Morocco has been plagued with corruption since its beginning. After its independence, a handful of families benefited greatly due to the access of powerful inner circles of Monarchy. They received most if not all public procurement contracts.They also were granted preferential loans which some to this day have still not been paid back. They had no competitors to worry about because the monarchy made it impossible for anyone to compete.And still to this day these select few families have an substantial role to the country’s economy.

Many organizations have stepped up to slow corruption in Morocco and have made a commemorated attempt at a difficult task.Three of the main front runners but certainly not all are, the World Bank, CGEM, and Maroc 2020. These organizations have done in excellent job in raising awareness and getting the Morocco government involved. From 1996 where corruption wasn’t even talked about till three years later when it is being discussed and recognized by all Morocco’s citizen is a great accomplishment. In 1998 Morocco ranked considerably better than presumed by most. The Transparency International corruption perception index ranked Morocco at number 50 out of 180 countries from least to most corrupt countries.But now in 2007, Morocco has slumped to 72nd out of 180. Morocco must continue to pull together to fight corruption and not let the numbers discourage them.

Morocco’s biggest business disadvantage is the corrupt ways in which it conducts business. As long as Morocco continues its cycle of corruption it will not have a significant impact on Globalization.And in this day in age globalization is becoming the key to a nation’s economic survival.

http://ipsnews.net/news.asp?idnews=32238

http://www.zawya.com/marketing.cfm?zp&p=/Story.cf

http://www.mepc.org/journal_vol7/0002_denoeux.asp