How can Morocco Truly Achieve the Title: Richest Country in Africa?
“Greater firmness is needed to break with the laissez-faire and fraudulent practices that
harm the interests of citizens,” said King Mohammed VI of Morocco, who criticized the current
anti-poverty programs in Morocco (AfricaNews, 2024). Morocco has missed out on many
opportunities for progress due to a neglect of crucial areas that significantly impact poverty
levels. The government has started to recognize these failures, in which Morocco should focus
on solving the various issues by improving legislation on labor and economic diversification.
Morocco can address poverty by balancing labor flexibility with worker protections,
extending social benefits, and strengthening enforcement mechanisms. The country must
recognize the diversity of work forms in Morocco where two-thirds of the workforce work in
informal sectors, making citizens more vulnerable to underpayment and lack of proper labor
regulations. To reduce wage inequality, the government should ensure a proper minimum wage
which will serve as a benchmark of wages in informal sectors and a ratio of employees to labor
inspectors at 1/20,000. This ratio is essential for worker protection and promoting economic
growth. Informal workers are often unaware of their rights in the labor market, which is why it is
crucial for Morocco to increase union presence in Small and Medium Enterprises. To increase
union presence in Small and Medium Enterprises, increasing literacy rates is crucial for
collective bargaining and social guarantees. Higher education is particularly relevant for young
women, as it has been linked to increased labor force participation and employment for women
in their first years after completing their education. Quality education, especially in rural areas,
will increase skilled workers and their knowledge of their rights, ensuring equal income.
However, with low literacy rates, the supply of skilled workers in the labor market is affected. It
is widely acknowledged that unions elevate labor expenses by mandating wages that exceed
market rates. Additionally, unions impose various costs on employers, including limitations on
hiring and firing decisions and modifications to the pay structure across different skill levels.
This becomes an issue which may hinder growth in businesses, leading to bankruptcy and a less
competitive market. This issue could be solved by increased training for workers, and Morocco
could improve poverty by implementing improved measures and promoting both workers and
business welfare.
Leading us to the next solution for economic diversification due to reliance on vulnerable
sectors of agriculture, tourism and high inflation. Economic diversification strategy to promote
sectors which show strong growth potential like renewable energy, technology and services
needs to be put in place for Morocco to grow. The adoption of digital technologies in the
financial sector will promote economic growth through access to financial services. At the same
time, the deployment of e-commerce, as a sector that promotes and facilitates business, can also
have a significant impact on traditional business structures. In addition, the provision of social
protection, including unemployment insurance, food aid, and targeted assistance programs, can
help vulnerable groups in the economy against the effects of economic shocks. Incorporation of
resilience in farming practices and improving water management can buffer the negative effect
of climate change on agriculture. Also, the expansion of the tourism sector to target high yield
tourists, will reduce the dependency on seasonal tourism and stabilize the sector. On the other
hand, the diversification of these sectors could increase the income inequality especially in rural
areas with inadequate digital infrastructure due to Morocco’s lack of equal wealth distribution.
Additionally, with the current literacy rates in Morocco, the supply for tech-savvy workers may
not meet it’s demand.
To break the cycle of poverty, there must be clear action from the government and
continuous evaluation of poverty in Morocco. Morocco must strive to create stronger labor
unions and better education, which results in increased pay and better employment prospects, as
well as economic diversification which generates new employment and lessens dependency on
industries that are susceptible, aswell as ensure safety nets for disadvantaged populations.
Morocco can create a more stable and just economy by embracing digital technologies and
making investments in sustainable agriculture. With all of these actions combined, Morocco will
truly achieve their status as the richest country in Africa.
Works Cited
Gannat, Henri, and Gordon Betcherman. “Labor Regulation and Social Protection for Workers in
Morocco.” World Bank, Dec. 2021,
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“Labor Market Policies in Morocco: The Challenges of Job Creation and Enhancing Skills for
Better Employability.” MIPA Institute, 10 Feb. 2022, mipa.institute/en/8934.
WOODWARD, MICHELLE. “Government Efforts to Reduce Inequality in Morocco Are Only
Making Matters Worse.” MERIP, 21 Apr. 2021,
merip.org/2021/04/government-efforts-to-reduce-inequality-in-morocco-are-only-making
-matters-worse-2/.
“Hire in Morocco | GoGlobal.” GoGlobal, 13 Sept. 2024,
goglobal.com/country/hire-in-morocco/. Accessed 20 Nov. 2024.
