Morocco’s Quest for Stronger and Inclusive Growth

Books, October 9, 2023

Source details

Throughout the past two decades, Morocco has faced several external and domestic shocks, including large swings in international oil prices, regional geopolitical tensions, severe droughts, and most recently the impact of the pandemic and the economic fallout from Russia’s invasion of Ukraine.
The government maintained focus on immediate stability and long-term needs by adopting measures such as the elimination of energy subsidies, improving infrastructure, diversifying the production and export bases by attracting foreign investment, and modernizing the governance structure of the public administration.
The book draws lessons from reforms implemented in the past few decades and charts a course by addressing key areas for reform to achieve stronger, more resilient, and more inclusive growth.

High share of inactive youth.
Large gaps in economic opportunities for women.
Fragmented social protection system.
Remaining barriers to private sector development.
Despite gains in poverty reduction, literacy, and lifespans, the road to higher and more inclusive growth remains steep.

Morocco has sought to define and pursue a new “model of development” through national debates and a more inclusive approach to reform.
Significant reforms have been announced that revamp both the social protection system and the SOEs business model.
An ambitious reform agenda is recommended to better meet the aspirations of Moroccans by making economic growth stronger, more resilient and more inclusive, particularly to provide greater opportunities for young, women, and entrepreneurs.

Strengthening infrastructure and diversifying production and exports are central to attracting foreign investment and supporting long-term growth.
Modernizing public administration governance supports stability and implementation of reforms.
Revamping the social protection system and the SOEs business model are key recent reform steps that can support inclusivity and efficiency.
A sustained, ambitious reform agenda is needed to address structural barriers: labor market inclusion for youth, gender gaps, social protection fragmentation, and private sector constraints.