Economy (Morocco), Economy

Assessment
In the long-term Morocco's participation in the Euro-Mediterranean Partnership may transform the economy. The economic and financial component of the Partnership, and in particular the plan to create a free trade zone in the Mediterranean by 2010, forms an integral element in the EU's strategy to alleviate regional instability. The EU is in the process of signing bilateral agreements with the Mediterranean partners as a prerequisite to the creation of a free trade zone. Morocco was one of the first southern Mediterranean countries to conclude such an accord with the EU. Under the terms of the accord, Morocco will adapt its regulatory frameworks to mirror EU regulations in the areas of competition, government procurement, subsidies and technical standards. Improved efficiency should result from harmonising standards, measures and regulations. The agreements also confirm free access to the EU for most manufactured goods; limited approved access to European markets for agricultural goods and the elimination of tariff and non-tariff barriers to imports from the EU. Non-tariff barriers will be eliminated immediately upon the implementation of the agreement. However, tariff barriers will be phased out within a 12-year period.This concession gives Morocco a transition period in which to restructure its economy. The scrapping of customs receipts and other revenue due from imports will also have a major impact on Morocco's economy. Tariffs of up to 25 per cent could be introduced for a maximum period of five years during the transition period if there is evidence of real danger to emerging industries. The

Policy
Morocco is in the process of implementing a series of long-term IMF-structured economic reforms and has demonstrated that it remains genuinely committed to reforming the whole financial sector. The economy has undergone extensive liberalisation, the creation of a fully convertible currency and stable exchange rates. A substantial privatisation of public assets forms a key component of the reform programme. Major banking reforms have been introduced to reduce state intervention. The major economic problems confronting the government remain the budget deficit and Morocco's foreign debt burden. That said, the World Bank has praised what has been achieved thus far, saying that it has witnessed in Morocco "one of the most successful programs of human development and political liberalisation in the Middle East and North Africa region." The IMF praised Morocco in May 2003 for its economic stability, controlled inflation and declining deficit, but urged it to continue structural reform in a wide range of areas. In a regular review of Morocco's economy, the IMF commended it for maintaining stability despite recurrent drought and tough international conditions, pointing to controlled inflation, an acceleration of non-agricultural output and an increase in official foreign exchange reserves to comfortable levels.However, the country is still too heavily dependent on a heavily subsidised agricultural sector that is in turn reliant on annual rainfall patterns, which does not make for the most reliable of economic planning. That said, the government's desire to increase the number of Free Trade Agreements (FTAs) it can sign is encouraging, as are

The complete article appears in the following publication:
Publication Title	Sentinel Security Assessment - North Africa
Publication date	Jul 08, 2009
Section	Economy
Publication synopsis	Jane's Sentinel Country Risk Assessments provide you with in-depth, up-to-date and accurate data and analysis on the latest events and trends in political, security and economic affairs. They provide a comprehensive one-stop information source covering 190 states and 30 territories. Jane's worldwide intelligence network of over 120 expert contributors delivers incisive and impartial analysis to help you protect your economic, strategic and political interests. The new Security file allows prompt and reliable analysis on every country's security, primarily in the areas of terrorism and insurgency state stability international relations organised crime proliferation and procurement Political files provide overviews of the political system, political actors and parties, cabinet lists, civil society and internal history. External files detail all relevant bilateral and multilateral relations and history. Defence files offer profound analysis of, and information on, all services of a country's military, its size, capabilities, requirements, weaknesses, strengths and orders of battle.
North African countries	Algeria Chad Djibouti Egypt Eritrea Ethiopia Libya Mali Mauritania Morocco Somalia Sudan Tunisia Western Sahara Also includes new coverage of Somaliland.

You may purchase a full subscription to this service through the Jane’s Online Catalogue.

About Jane’s
With more than 100 years of experience, Jane’s, an IHS company, holds an unrivalled reputation for the reliability, accuracy and impartiality of our information and advice, trusted and relied upon by business, government and military decision-makers worldwide.

In the specialist fields of defence, security, public safety, transport and law enforcement, Jane’s intelligence is a ‘must have’ resource for our clients, who can trust our intelligence over that from any other open source.

© 2009 Jane's Information Group. All rights reserved | Terms of use | Jane's Privacy Policy