World Bank report details: Morocco:
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| World Bank report details: Morocco: high investment, disappointing results |
Press _ Agencies
A new report by the World Bank revealed another aspect of the crisis in Morocco, which considered that Morocco is among the countries with the highest increase in investment, but its return remains disappointing, as economic growth does not create enough job opportunities. 154 pages issued by the World Bank, entitled
“Creating Markets in Morocco” falls within the framework of the bilateral partnership covering the period between 2019 and 2024.
Huge investments
The report noted that “Morocco has allocated significant resources to make huge investments in economic sectors that are considered a strategy for growth, increase productivity and create value added, especially in sectors such as aviation, electronics, cars and renewable energies, which have benefited from significant investment resources and an arsenal of generous incentives to attract foreign direct investment. But the outcome was without waiting. ”
"The government's efforts have allowed to attract foreign investors and strengthen many sectors, including cars, air navigation and renewable energies, which reflected on the improved Moroccan business environment, with the country advancing nine points in the business climate ranking, ranking 60 out of 190," he said. State, having been ranked 129th in 2009.
"Despite the high investment rate, which is among the highest in the world, reaching 34 per cent of GDP per year since mid-2000, the effects on economic growth, employment and production have been disappointing," the report said.
"The public sector, through public companies, accounts for half of all investments made in the Kingdom," he said.
He added that “Morocco cannot rely on the accumulation of capital in order to bridge the gap with the high-income countries, because this requires always high investments, which threatens macroeconomic balances, stressing that there are differences in the distribution of capital between sectors.”
He stressed that “countries that have been able to maintain high growth rates are those that have achieved high productivity gains in a long period.
Weak economic growth
He stressed that “countries like Colombia, the Philippines and Turkey have had similar growth rates or higher than Morocco, with lower investment levels than those made by Morocco.
“Countries that have made an economic take-off are those that have been able to achieve growth rates of more than 4 percent over several decades, with the fruits of that growth quickly distributed through job creation, while Morocco's growth rates barely reached 7.2 percent between 2000,” he said. And 2017 and 6.1 per cent between 1990 and 2000. ”
The report pointed out that "productive profits were weak, in the long run, between 1970 and 2011, the economy did not record any profit on the level of overall productivity of factors of production."
Job opportunities are rare
According to the report, "the Moroccan economy has performed disappointingly in terms of job creation, knowing that the proportion of the population that reached the working age has risen to 270 thousand people annually, while the number of job opportunities created does not exceed 26 thousand jobs."
The report recommended that “a more dynamic private sector is necessary in order to create more jobs.
The report called for creating “conditions conducive to fair competition, human capital, and high-quality competencies to respond to the needs of modern labor, encourage initiatives to promote entrepreneurial initiatives, and facilitate access to finance“ small businesses and start-ups ”.
He called for "the need to strengthen the conditions of competition in the market and work to create conditions conducive to the emergence of a vibrant and diverse private sector that can create jobs that Morocco urgently needs."
"With the exception of companies operating in free zones through foreign direct investment, young companies in Morocco have not been able to compete with established ones or create jobs at significant levels," he stressed. "Most of the more dynamic and high value added sectors represent only a small share of Operating growth ”.
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