ECONOMY OF MOROCCO: STRATEGY, STRUCTURE, & PERFORMANCE 1984-2003
This paper reviews the development the economy of Morocco from 1984 through 2003. The review covers economic strategy, economic structure, and economic performance.
Morocco, with a population approximating 30 million persons, is a developing country in relation to its economy ("The Country and People of Morocco", 2004). Morocco faces the problems typical of developing countries รน restraining government spending, reducing constraints on private activity and foreign trade, and achieving sustainable economic growth. Over the past 20 years, the government of Morocco has pursued economic programs designed to attain these objectives (Nsouli, & Fisher, 2004).
The structural reform strategy has led to substantial reduction in the country's external debt. Current reform plans include reductions in the civil service with an objective of reducing total government debt. Government spending was the equivalent (approximately) of 25.5 percent of gross domestic product (GDP) in 2003 (Nsouli, & Fisher, 2004).
Morocco also has created free trade zones from which manufactured good may be exported to the European Union tax-free. Capital investment on industrial equipment and infrastructure (largely associated with the free trade zones) increased eight-percent in 2003 and is on-tract for a 10 percent increase in 2004 (Badcock, 2004).
Phosphate reserves in Morocco are estimated at 110 billion tons, which represents approximately three-quarters of known world reserves of phosphates. The government of Morocco is developing policies and procedures to increase private-sector participation in the development of the country's phosphate resource. One approach is an emphasis on joint-venture financing with European and Asian companies. The government of Morocco also is increasing private-sector participation in other mining activities (silver and lead) by selling shares in sta...