The Role Telecommunication Sector in Morocco Economic Development

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The Role Telecommunication Sector in Morocco Economic Development The economic development of Morocco can directly be liked to the three important areas of initiatives taken at the national level. The institutional telecommunication reforms in place, political democratization and the technological progress achieved (1). The World Bank studies that there is a direct link and a “positive correlation between economic development and telecommunication density.” A liberalization effort in the telecommunication sector is anticipated to generate substantial productivity gains for the economy as a whole. The continuation of this trend would enable the country to attract investors to operate in Morocco form other countries. Morocco’s telecommunication sector underwent an important structural transformation particularly in the late 1990s. The country has upgraded and expanded the telecommunication infrastructure as well as making it known to the general public nationally and also internationally. The expansion of the telecommunication sector plays a significant role in Morocco’s economic development (2) An important forward step taken by Morocco’s government in the whole areas of information and communication technologies has pushed the country in to the forefront of the national socioeconomic development. Trends toward legalization and privatization also prompted the national privatization policy implementation. The pursuit of such a policy enabled Morocco to eliminate the monopoly of the state in the sector. Allowing competition helped to introduce a multitude of new services opening to widespread use to the general public with a better access and cheaper prices (3). Obviously, the movement towards market liberalization and deregulation in the telecommunication sector indicated growth in investment development. Such major initiative also encouraged many multinational firms to conduct business in Morocco. Such a policy also cleared away for private foreign direct investment. International giants in the field of information communication technologies like Microsoft, Nokia and siemens have already set up local offices and marketing facilities in the country (4). Information communication technologies including the internet are increasingly important to productivity and employment in the country. It is believed that firms that use information communication technologies grow faster, invest more and are more productive and profitable tan those who do not use. The development of telecommunication infrastructure and the provision of appreciable legal and regulatory frame work is part of the overall economic development strategy in Morocco. Morocco became one of the first Northern African countries to introduce competition when it allowed second mobile operator in 1999. The current economic growth of morocco has significantly surpassed all its North African Neighbors. Morocco is also said to be a good example of foreign direct investment in the telecommunication sector (5). Such new introduction of foreign operation has obviously created stimulating effect for competition on the market.

Reference: 1. McKinsky & company, Inc.” new opportunities in the Moroccan Telecom fixed line Market,” at Http://www.anrt.net.ma/licencesfixes/mckinsey.pdf, accessed 12 October 2007 2. Mohammed Ibharine. Towards a national telecommunication strategy in Morocco.2004 http:// www.firstmonday.org/issues/issue9_1/ibahrine/index.html 3. World intellectual property organization, “country focus: Morocco’s vision 2010,” at http://www.wipo.int/wipo_magazine/en/2006/04/article_0006.html, accessed 12 October 2007 4. N. Hajji, “morocco as part of the information and knowledge society” at http://www.itu.int/newsarchive/wtdc2002/Morocco.html , accessed 12 October 2007 5. International Telecommunication Union “Effective Regulation case study: Morocco at http://www.itu.int/itudoc/gs/promo/bdt/cast_reg/79125.pdf, accessed 12 October 2007 6. N.rochdi. “Morocco using the internet to enter global economy” at http://www.afrol.com/News2001/mor005_web_economy.htm, accessed 12 October 2007