Khenifra: Tour of the provincial price control commission
Par El Mostapha BAHRI, Economist
Response to Mr. Fouad Laroui
In a recent column on the le360 website on 09/18/2024, a respected professor addressed the complex subject of price control, emphasizing that economics is a science full of nuances. Unlike other disciplines, it touches daily life, but its solutions are never universal.
The professor also recalled that he never talks about subjects he does not master (dermatology, Assyriology or Lacanian psychoanalysis) and that economics, despite its apparent accessibility, requires solid expertise. He mentioned a friend’s suggestion to control prices in Morocco to combat inflation, an idea that may seem logical, but which has proven catastrophic in many historical contexts, causing economic collapses and famines, due to the application of this price control policy.
However, the real issue in Morocco is not the choice between these policies, but their effective implementation. Since 2021, inflation has increased sharply, reaching 6.3% in 2022 and 6.6% in 2023.[1]This increase is due to factors such as the increase in production costs, abuses by certain economic actors, and the weak application of laws on freedom of prices and competition.
Moreover, article 4 of Law 104-12[2] allows the State to intervene temporarily in exceptional circumstances to stabilise prices, but this measure has never been used since the Prices and Competition Act came into force in 2001. However, consumer associations have asked the government to apply this law in the face of excessive price increases.
The success of price liberalization in other countries depends on several conditions: an efficient administration, a literate and informed population, sufficient purchasing power, and an active role of consumer associations. Unfortunately, these elements are still weak in Morocco.
As a conclusion, it seems clear the complexity of the issue of price control in Morocco, a subject that cannot be addressed by simplistic or universal solutions. The debate between regulation and liberalization of prices reveals that the main issue lies not in the choice of one or the other policy, but in their effective implementation adapted to national realities. The Moroccan experience, marked by increasing inflation since 2021, underlines the importance of strengthening the application of the laws in force, ensuring fair and equitable regulation, and putting in place the necessary conditions so that price liberalization can fully benefit consumers and does not become anarchic. The effectiveness of this approach also requires better education of citizens, increased support for consumer associations, and more rigorous administration, in order to protect the national economy against excesses and abuses.
[1] The New Tribune of 09/12/2024
[2] Law No. 104-12 relating to freedom of prices and competition of June 30, 2014. BO No. 6280 of 08/07/2014.
#Open #Forum #Reflections #price #control #Morocco #policy #implementation
– 2024-09-25 07:26:01
