Doha – A new report by the Carnegie Endowment for International Peace has shed light on how the leadership of King Mohammed VI, who ascended to the throne in 1999, has modernized Morocco’s economy, enhanced its global competitiveness, and vastly improved the lives of its citizens.
Morocco has embarked on a remarkable economic journey over the past quarter century, embracing ambitious reforms while exuding a knack for strategic adaptation and a steadfast pursuit of progress.
Its economic trajectory has been shaped by a complex interplay of domestic initiatives, regional dynamics, and global trends.
In particular, the country has had to navigate a series of external shocks, from the global financial crisis of 2008 to the euro debt crisis of 2010-2011, all while grappling with persistent socioeconomic challenges at home.
Despite these obstacles, Morocco has made significant strides in key areas such as infrastructure development, industrial diversification, and sustainability.
The kingdom’s strategic location at the crossroads of Europe, Africa, and the Middle East has positioned it as a potential gateway for trade and investment.
In its comprehensive report titled “Morocco’s Long Road Toward Economic Transformation” and published on September 20, the Carnegie Endowment provides an in-depth analysis of Morocco’s economic journey over the past 25 years.
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The report sheds light on the country’s achievements, challenges, and future prospects, offering valuable insights into the complex dynamics shaping its development.
According to the Carnegie analysis, Morocco has made substantial progress in human development since 1999.
The report highlights that “UN figures indicate that between 1998 and 2023, average life expectancy increased by nine years, reaching around seventy-five years, income per capita doubled in inflation-adjusted terms, and the expected years of schooling almost doubled, from 8.1 to 14.6.”
One of the cornerstones of Morocco’s economic strategy has been its successful integration into global value chains.
The report notes that “by leveraging world-class infrastructure such as the Tanger Med port, the kingdom has successfully inserted itself into global value chains and made the best of this insertion by attracting foreign direct investments (FDIs) and building an export-driven industry.”
This approach has allowed Morocco to emerge as Africa’s leading producer and exporter of automobiles.
In parallel, Morocco has initiated a shift toward greater sustainability, setting ambitious targets for renewable energy and water conservation.
The Carnegie report underscores the kingdom’s goal of achieving a 52 percent share of renewables in its energy mix by 2030 and its launch of the $40 billion National Water Management Plan 2020-2050.
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While the European Union remains Morocco’s largest economic partner, the report highlights the kingdom’s efforts to diversify its foreign economic partnerships, particularly through increased engagement with sub-Saharan Africa.
Morocco has become the second-largest investor on the continent after South Africa. The report also characterizes the kingdom as a “global connector,” adeptly navigating an increasingly multipolar geopolitical landscape.
However, the Carnegie analysis does not shy away from the persistent socioeconomic challenges facing Morocco.
The report points out issues such as regional disparities, the urban-rural income gap, high informal employment, youth unemployment, and low female labor participation.
It also cautions that Morocco is exposed to the middle-income trap, underscoring the need for increased investment in human capital and innovation.
To tackle these challenges, the report notes that Morocco has initiated a new development model and a comprehensive social protection reform package.
It stresses, however, that “structural gaps remain in terms of governance and financing” and emphasizes the necessity of creating additional fiscal space to ensure the sustainability of these initiatives.
While Morocco has achieved significant economic and social progress over the past 25 years, the report notes, further institutional reforms and better utilization of human capital are crucial to accelerating growth and potentially achieving high-income status.
As such, the report concludes by highlighting the need for careful management of geopolitical risks, notably tensions with Algeria over the Western Sahara conflict, to avoid straining fiscal resources.
