Morocco‘s Public Spending Under Scrutiny: Efficiency Concerns Hamper Growth

Morocco, despite meaningful public investment in infrastructure over the past two decades, faces a critical challenge: maximizing the return on its spending.A recent analysis by Bank Al-Maghrib reveals alarming inefficiencies,raising questions about the country’s ability to achieve its ambitious economic goals.

The analysis highlights that approximately 34% of public resources invested annually are effectively wasted. This figure surpasses the average for upper-middle-income countries (25%) and underscores the need for urgent reform. While Morocco boasts notable progress in areas like electrification (from 18% in 1995 to 99.6% in 2019) and rural road access, economic growth remains stubbornly low, averaging just 3.5% annually over the past two decades.

This disparity between investment and growth is attributed to several factors,including poorly designed projects,inadequate selection processes,and insufficient monitoring. The findings echo concerns raised by Morocco’s Court of Auditors, which has also pointed to widespread inefficiencies in public spending.

“The report warns of a dangerous spiral,” says Oussama Ouassini, an economic intelligence expert. “It is clear that state interventionism in the economy slows growth, increases unemployment, and amplifies deficits. with public debt exceeding 90% of GDP, we must break with this model.”

The situation is further intricate by Morocco’s ambitious development goals. The country aims to double the share of private investment in its GDP and attract significant foreign capital. However,achieving thes objectives requires a fundamental shift towards greater efficiency in public spending.

“The efficiency of public spending is a sine qua non condition for meeting development challenges at a time when Morocco aims to double the share of private investment in GDP and strengthen the attractiveness of foreign capital,” the Bank Al-Maghrib analysis concludes.

The implications extend beyond Morocco’s borders. The challenges faced by Morocco in optimizing public investment resonate with many developing nations striving for sustainable economic growth. The need for effective project design, rigorous selection processes, and robust monitoring mechanisms is a universal concern.

As Morocco grapples with these issues, the international community will be watching closely. The success or failure of its efforts to reform public spending will serve as a valuable case study for other developing countries facing similar hurdles.

morocco’s Public investment: A Critical Audit Reveals Systemic Flaws

A recent audit report has exposed significant structural weaknesses in Morocco’s management of public investments, raising concerns about the country’s ability to stimulate economic growth and reduce regional disparities. the report, released by the Court of Auditors, details a range of issues hindering the effective use of public funds for crucial infrastructure projects.

Among the most pressing concerns are inadequate preliminary studies. The report notes that many projects proceed with insufficient or even nonexistent planning, leading to inefficiencies and potentially wasted resources. This lack of foresight is compounded by a failure to adequately consider the unique needs and characteristics of different regions. the report emphasizes that a “one-size-fits-all” approach to infrastructure development is simply not effective in addressing Morocco’s diverse geographical and socioeconomic landscape.

Further complicating matters are persistent challenges related to land acquisition and mobilization. These logistical hurdles frequently delay projects and inflate costs, ultimately undermining their intended impact. The cumulative effect of these shortcomings is a significant reduction in the effectiveness of infrastructure investments, limiting their positive influence on both the Moroccan economy and the lives of its citizens.

Zineb El Adaoui, head of the court of Auditors, strongly recommends a complete overhaul of the system. “Strengthened governance and rigorous monitoring mechanisms are essential,” she stated,emphasizing the critical need for improved intersectoral coordination to maximize the benefits of public investment. This call for reform highlights the urgent need for a more strategic and efficient approach to infrastructure development in Morocco.

The implications of these findings extend beyond Morocco’s borders. The challenges faced in managing large-scale public works projects resonate with similar issues in many developing nations. The Moroccan experience serves as a cautionary tale, underscoring the importance of robust planning, effective oversight, and collaborative governance in ensuring that public investments deliver tangible and sustainable results.

The report’s recommendations offer valuable lessons for policymakers worldwide, especially in countries striving to improve infrastructure and foster economic growth. By addressing the identified weaknesses, Morocco can unlock the full potential of its public investments and pave the way for a more prosperous and equitable future.

Source: Court of Auditors Annual Report (Specific report details not available in provided text)

Morocco’s Development Dilemma: Can Spending Be Made more Effective?

A new report from Morocco’s central bank paints a worrisome picture of the country’s public finances. while Morocco has invested heavily in infrastructure projects, a significant portion of these funds appear to be wasted due to inefficiencies, impeding the country’s economic growth.this poses a major challenge for Morocco as it strives to attract foreign investment and boost its private sector.



World-Today News Senior editor Anya Sharma sits down with Dr. Fatima El Idrissi,an economist specializing in North African development,to discuss these findings and what they mean for Morocco’s future.





Sharma: Dr. El idrissi, Bank Al-Maghrib’s recent report highlights some alarming inefficiencies in Morocco’s public spending. Could you elaborate on these findings?



Dr. El Idrissi: Absolutely.The report suggests that around 34% of public resources allocated to investment projects are not being utilized effectively.This is a higher figure than the average for comparable countries.The consequences are significant; despite considerable investment, Morocco’s economic growth has remained sluggish, averaging only around 3.5% annually over the past two decades.



Sharma: What factors are contributing to these inefficiencies?



Dr. El Idrissi: Several factors are at play. The report points to poorly designed projects, inadequate selection processes, and insufficient monitoring mechanisms. Essentially, there seems to be a lack of stringent oversight and a need for more robust evaluation systems to ensure that public funds are being directed towards projects that will deliver tangible benefits.



Sharma: This raises concerns about Morocco’s ability to achieve its aspiring development goals.





Dr.El Idrissi: Precisely. Morocco aims to double private investment in its GDP and attract significant foreign capital. These objectives are crucial for creating jobs and driving sustainable economic growth. Though, achieving them hinges on making public spending more efficient, as wasteful expenditure can deter potential investors.



Sharma: Are there any ongoing efforts to address these issues?



Dr. El Idrissi: Yes, there are.The court of Auditors has identified similar concerns in their own reports and advocated for reforms. We are also seeing a growing discourse on the need for greater transparency and accountability in public spending.the challenge lies in translating these recommendations into concrete actions.



Sharma: How do these issues resonate with the broader development context in Africa?



Dr.El Idrissi: Morocco’s experience isn’t unique.Many developing countries face similar challenges related to public investment management. The need for effective project design, rigorous selection processes, and robust monitoring mechanisms is a universal concern. What happens in Morocco could offer valuable lessons for other African nations grappling with the same issues.



Sharma: Thank you, Dr. El Idrissi, for shedding light on this important topic.



Dr. El Idrissi: my pleasure. I believe open dialog and a commitment to reform are crucial for ensuring that public investments truly contribute to economic development and improve the lives of Moroccan citizens.