Talk:Morocco
From International Business Wiki
In the past five years, Morocco’s unemployment rate has decreased to its lowest of 7.70 percent. As a country Morocco’s Gross Domestic Product (GDP) is $56.72 billion, with a GDP per capita of $4,400. The country has seen GDP growth rate of 6.7%. One of Morocco’s main focus points is to continually decrease the unemployment rate. There are a few factors that should be central in the attempt to decrease unemployment, such as: education, property rights, trade, and freedom from corruption in regards to the bureaucratic government.
Agriculture is a key part to Morocco’s economy accounting for 20 percent of the GDP, and 40 percent of the population depends directly on agriculture, but only 13.3 percent of the people work in agriculture. Morocco has also seen an increase in economic development, especially through its $3.9 billon dollar tourist industry. However, Morocco is suffering in certain fields which are closely related to unemployment. Although education is free for children between the ages of 6 through 15, many children (especially girls) do not attend school. Morocco’s literacy rate is 52.3 percent, which indicates that almost half of the country can not read or write. Morocco has an urban unemployment rate of 33 percent. The youth of Morocco are not in school and don not possess the skill needed to work. It is reported that Morocco has a moderately high crime rate in urban areas; by targeting tourists for assaults, muggings, and thefts. Another factor with the unemployment rate has to do with Morocco’s government which operates as a constitutional monarchy. Companies and businesses find it difficult to operate in Morocco, because of the bureaucratic structure of the government. To obtain a business license is virtually impossible. In a bureaucratic government bribery is highly encouraged. Morocco is perceived as having high corruption; it is ranked 78 out of 158 countries according to Transparency International Corruption Perceptions index. If companies are not encouraged to open up businesses, the people of Morocco will continue to be unemployed. The barrier put up by the government prohibits the idea of innovation of any sort. In regards to private property rights Morocco scores exceptionally low. Morocco has a high tax rates, the top income tax rate is 44 percent. As a result a substantial amount of individual’s income is withheld from them. Morocco has improved on there trade policy by signing a bilateral Free Trade Agreement (FTA) between the United States and Morocco. As these two countries work together through trade, Morocco will begin to see the benefits. Trade allows for more imports and goods to come in and out of the country. Ultimately this trade policy will lead to more jobs in Morocco. Morocco trades over 70 percent of its goods to Europe, now that they have added the United States, it will strengthen their trade market.
Furthermore, Morocco unemployment rate of 7.7 percent is the lowest the country has ever seen. Morocco’s education system, bureaucratic government and trade agreements are the factor in determining if this unemployment rate will increase or decrease.
References (02/2007). Morocco Market Introduction. British Council, Retrieved 10/31/2007, from http://www.britishcouncil.org/eumd-information-background-morocco.htm
(2007). Index of Economic Freedom, Retrieved 10/31/2007, from http://heritage.org/research/features/index/country.cfm?id=Morocco
(2007, October). U.S. Department of State. Retrieved October, 28 2007, from Bureau of Near Eastern Affairs Web site: http://www.state.gov/r/pa/ei/bgn/5431.htm Janseen, Sarah (2007). The World Almanac and Book of Facts; New York, NY: World Almanac Books
