Morocco: Economic and Political Outline

Economic Overview

During the last few years, the Moroccan economy has been characterized by macro-economic stability, coupled with low inflation and a relatively slow economic growth. Estimated at 4.8% for 2011, growth should slow down slightly in 2012, to 4%, sustained by domestic demand and the vigorous non-agricultural sector. A decline in demand from the eurozone, the main market for Moroccan exports, will have a negative effect on the country's growth.

A movement of popular protest emerged in Morocco in 2011 under the effect of the Tunisian revolution, prompting the government to increase social spending. In January 2012, Prime Minister Abdellilah Benkiran presented the government's program: strengthening the Moroccan identity, strengthening the rule of law; aiming for strong economic growth, reducing unemployment to 8% by 2016; maintaining the inflation rate to 2%; promoting social equality by improving access to education, health, housing and strengthening the welfare state; developing good relations with foreign countries and strengthening ties with Moroccan emigrants. Stimulating tourism after the attacks in Marrakesh in April 2011 and developing solar energy (Desertec) are also among the priorities.

Unemployment (9%) has been rising in the recent years and affects particularly the young (15-24 of age) and young graduates. The rate of poverty remains one of the highest in the Mediterranean region, with 15% of the population living under the poverty line.

Main Sectors of Industry

Thanks to the richness of Morocco's soil, the agricultural sector is dominant, employing  almost half of the active population and contributing around 20% to the GDP. Grains, fruits and vegetables are the country's main crops. Economic growth relies excessively on this sector.

Morocco has little by way of mineral resources; phosphates being its main wealth. Industry contributes around one-third of the GDP, thanks to the textiles, leather goods, food processing, oil refining and electronic assembling sectors. New industry areas are nevertheless booming as well and thus trying to diminish the kingdom's dependence on its agricultural sector: the chemical, automotive, computer, electronics nad aeronautic industry.

The tertiary sector contributes around 50% of the GDP and depends exclusively on tourism, which remains very dynamic despite the economic slowdown brought about by the attacks of September 11, 2001 and those of May 2003 in Casablanca. Other than granting concessions for a lot of public services in the major towns, the country recently liberalized oil and gas exploration regulations. Calls for tender procedures have become increasingly transparent.

Source: World Bank - Last Available Data.

Indicator of Economic Freedom

Score:

59.6/100

Position:

Mostly unfree

World Rank:

88/179

Regional Rank:

10/17

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

Note: The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labor freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.

Sources of General Economic Information

Ministries

Department for Finances
Department for Equipment and Transport
Department of Trade and Industry and New Technologies
Department of Energy and Mines
Department of Tourism
Department of Economic and General Affairs
Overseas Trade Department

Statistical Office

High Commissioner for Planning

Central Bank

Bank Al-Maghrib

Stock Exchange

Casablanca stock exchange

Other Useful Resources

BabFinance
Veille.ma

Main Online Newspapers

Le Maroc
Emarrakech
Casafree
Morocco Portal

Economic Portals

Finance.ma
1st Maroc
Entreprendre.ma

Political Outline

Type of State

Constitutional Monarchy Kingdom with an elected parliament.

Executive Power

Executive power is exercised by the King. He appoints the Prime Minister and members of the Government, directly heads sovereignty fields (Domestic, Foreign affairs, Defense, Religious affairs) and can intervene in the other sectors through Dahir (royal decree).
The Government provides execution of the laws and the administrative apparatus. It is run by the Prime Minister who coordinates its action, passes decrees and submits a program to the Parliament.

Legislative Power

The Parliament comprises the Chamber of Representatives (325 deputies elected by universal direct suffrage for 5 years) and the Chamber of Counselors (270 members elected by indirect universal suffrage for 9 years).
The Parliament votes the law; any bill must be successively examined by the 2 Houses. It moreover shares the initiative of the laws with the Prime Minister.

Main Political Parties

Morocco has a multi-party system, the parties are numerous and a single party has no chance of gaining power. The parties must get together to form coalition governments. Among the principal parties of the country, one finds:
- The USFP (Forces of the Popular Socialist Union) - left socialist party,
- The PI (Independence Party) - nationalist party,
- The PJD (Justice and Development Party) - islamic party,
- the RNI (National Rally of Independents) - party of independent candidates.

Current Political Leaders

King: MOHAMED VI (since July 1999) - hereditary
Prime Minister: Abdelilah BENKIRANE - Justice and Development Party (since 29 November 2011)

Next Election Dates

Chamber of Representatives: in 2012

Indicator of Freedom of the Press

World Rank:

138/179

Evolution:

3 places down compared to 2010

Source: Worldwide Press Freedom Index 2011, Reporters Without Borders

Note: The world rankings, published annually, measures the violations of press freedom worldwide. It reflects the degree of freedom enjoyed by journalists, the media and digital citizens of each country and the means used by states to respect and uphold this freedom. Finally, a note and a position is assigned to each country. To compile this index, Reporters Without Borders (RWB) prepared a questionnaire sent to partner organizations,150 RWB correspondents, journalists, researchers, jurists and activists of human rights, including the main criteria - 44 in total - to assess the situation of press freedom in a given country. It includes every kind of direct attacks against journalists and digital citizens (murders, imprisonment, assault, threats, etc.) or against the media (censorship, confiscation, searches and harassment etc.).