Global Competitiveness: Where does Morocco Stand?

The study lingers on the phenomenon of the supply quality of the country’s exports. It is concentrated on a few products, primarily phosphates and clothing textiles. Add to that the low level of diversification of the export markets, which depend significantly on the economic evolution of France and Spain. From 2000 to 2008, 80% of Morocco’s external demand came from the countries of the European Union.

Neither on the technological side has the country managed to get out while the going is good. So, nearly two thirds of manufacturing exports are low level technology products and are highly natural resource and labor intensive, and only 10% of manufacturing exports are considered high technology, a situation which refers to insufficient expenditure in research and development which is no more than 0.79% of the GDP. This is due, amongst other things “to low corporate commitment to innovation and to research and development”.

Morocco also remains focused on less dynamic sectors of global commerce. Three product groups provide nearly 80% of revenue from exportation of goods, as it happens: agricultural and fishing products, clothing textiles and phosphates and their derivatives, products which, according to the IRES, saw the slowest growth in global trading markets.

Other shortcomings to tackle relate to institutional competitiveness. The observation made by the Institute is that Morocco is classed, according to “the 2009 institutional profiles” in the category of countries where social regulations are determined by traditional societal norms (such as family for example) rather that by the State and modern institutions. In addition, social organization focuses on collective safety instead of individual liberties.

The IRES, which charts the issues for Morocco in terms of global competitiveness, also makes some suggestions. So the institute suggests permanently adapting the specialization profile climb higher up the chain of goods values, to promote exports to dynamic markets, the traditional ones but also Brazil, Russia, India and China (BRIC). The country could also focus on regional integration thus maximizing the effects of advanced status. In a global context in which change accelerates under the effect of economic and financial crisis, a new competitive order and new economic balance will emerge. For instance, see the acceleration of the rise of Brazil, Russia, India and China and the relative decline of the influence of Europe. We also see the emergence of new arrangements of spheres of influence: energetic alliances and the intensification of international competition with a greater role for innovation and human capital in construction of competitive advantages.

Despite the views offered by advanced status, Morocco is penalized by its membership of a region with multiple structural weaknesses. The study cites the Arab Maghreb Union obstacle, the limited effect of the Barcelona process on recovery and convergence of south Mediterranean economies together with the limited ambitions of the Union for the Mediterranean (UFM). Now the international financial crisis has shown the decisiveness of anchoring to integrated and solid regional collectives. Alongside these weaknesses, we are witnessing a worsening of international competition, particularly Asiatic competition, which threatens the domestic market and the traditional export markets. In addition, we are confronted with limited bargaining power in international forums, a consequence of a concerted regional consultation resulting in a lesser involvement in setting the global agenda. Morocco Newsline Economiste