Winston Churchill once said that Marrakech was the most beautiful place on Earth. Few who have visited it would argue. 

Though the earthquake in the Atlas Mountains on September 8 was a reminder of the perils of natural disasters, it was also a confirmation of the power of national resilience. 

To Moroccan leaders, moving or canceling the meetings was unthinkable. The meeting facilities were in great shape but several global issues need immediate attention.

The Boards of Governors of the International Monetary Fund (IMF) and World Bank Group normally meet once a year to discuss the work of their respective institutions — regularly (but not exclusively) in Washington, DC. 

This year, Marrakech was the site of the annual meeting. The right place at the right time for Churchill’s favorite vacation oasis.

Together with the neighboring Souss-Massa region, the Marrakech region accounts for about 14% of the kingdom’s national GDP. Even before the quake, the IMF had approved an innovative new $1.3 billion loan for Morocco to help bolster the kingdom’s resilience to climate-related disasters.

The Russian invasion of Ukraine in early 2022 has had enormous ripple effects across the globe, from energy and grain prices in the developing world to regional security issues and defense spending. 

But there are also challenges involving human capital, digital infrastructure, climate justice, external debt, access to fresh water, as well as public health challenges in a post-pandemic world. There was a lot to tackle in October 2023.

Among the many issues discussed in Marrakech, two important points arose during discussions about growth and sustainability in economies across the globe: economic diversification and investment in human capital. 

Diversification

Qatari Minister of Finance Ali bin Ahmed Al Kuwari described the importance of economic diversification. His presentation highlighted the challenges of fiscal boom-bust cycles — a particular challenge for economies dependent on one or two natural (commodity) resources, such as oil. 

Post-World Cup, Qatar is embarking on an ambitious economic and societal diversification effort that sought to increase the visibility of Doha as a center of energy, global finance, trade logistics, tourism, and even sustainable agriculture, said Kuwari.

An important point here is the synergy from one sector that can drive progress in others. 

Yes, Qatar’s sovereign wealth fund is buying a stake in the parent company of the NBA’s Washington Wizards and the NHL’s Washington Capitals. But it also invests in critical climate-adaptive farming research and agricultural technologies that have relevance in a world with shrinking amounts of arable land.

Westward across the Arabian Peninsula, Saudi Arabia’s city of the future “Neom” on the Red Sea will require significant foreign capital and human investment but it is rooted in a development model that deserves consideration: development that combines working and living — holistic placemaking.

Human capital

The IMF meetings also discussed education and the development of human capital. Brainpower. Finding opportunities for entrepreneurs to develop their ideas (and passions).

Closely tied to this is gender equality issues. In Moroccan universities, for example, women have now surpassed men in college enrollment, comprising 53% of total student enrollment. 

This represents an enormous change and an investment in human capital beyond niche investments in niche industries. It is a harbinger of a more diverse and robust economy that will yield higher GDP numbers and a more robust civil society. 

In the US, women have also overtaken men and now account for a little more than half (50.7%) of the college-educated labor force.

New York Times columnist Thomas Friedman (author of The World Is Flat: A Brief History of the Twenty-first Century) noted the now rapid shift away from a post-World War II hierarchical world order. 

Jobs would find new recruits in new far-off corners of the globe “… because in a flat world there is no such thing as an American job.” 

“There is just a job, and, in more cases than ever before, it will go to the best, smartest, most productive, or cheapest worker—wherever he or she resides,” he said. 

This concept finds meaning in the fact that Morocco is now the leading automobile manufacturer on the African continent thanks to a talented workforce, a modern transportation system, and a commitment to create comprehensive supply chains that shrink the assembly time frame.

The IMF attendees had the opportunity to see great contrasts in the Ochre City: a medina featuring homespun textile and ceramic goods alongside countless rooftop solar panels while modern electric city buses crisscross the growing Ochre City. Churchill would be proud.