Experts and academics from Morocco, the Arab world, and internationally convened in Rabat on Saturday to discuss the state of economic freedom in Morocco.
Organized jointly by the Arab Research Center, the Friedrich Naumann Foundation in Morocco, the Fraser Institute (Canada), and the Atlas Network, the forum aimed to foster a broader public debate on economic freedom.
The high-level forum on economic freedom in Morocco has concluded that while the country has made strides in recent years, there is still room for improvement.
“Evaluating Morocco’s economic freedom by analyzing its strengths and weaknesses and identifying ways to enhance it is crucial,” said Nouh El Hermouzi, Executive Director of the Arab Research Center.
In his keynote address, Hicham Moussaui, a professor of economics at Sultan Moulay Slimane University, highlighted the importance of competition, initiative, and the rule of law in economic freedom.
Despite reforms over the past two decades, Morocco has not significantly improved its ranking in certain areas, as indicated by the Fraser Institute’s index.
According to the Fraser Institute’s 2024 index, Morocco ranks 90th out of 165 countries, with a score of 6.46 out of 10.
While this represents a seven-place improvement compared to the previous year, Morocco still lags behind in areas such as the size of government, legal structures, and property rights.
Forum participants highlighted several key areas where Morocco requires reform to further enhance its economic freedom.
Firstly, the government’s role in the economy appears excessively large, as indicated by the relatively low score in this category. Reducing the government’s influence and promoting a more market-oriented approach is crucial.
Secondly, the legal framework needs substantial strengthening. A more robust legal system that effectively protects property rights and upholds the rule of law is essential to foster a conducive business environment.
Thirdly, streamlining procedures and reducing administrative burdens will encourage entrepreneurship and facilitate business operations.
Participants called for removing trade barriers and adopting liberal trade policies that can stimulate economic activity and enhance Morocco’s global competitiveness.
Morocco is ranked 86th in terms of overall regulation, largely due to restrictions on lending, employment, and business operations.
Nabil Adil, a research professor at the Higher School of Commerce and Business Administration, said that these limitations hinder competition and slow down economic growth. He pointed out that complex bureaucratic procedures and excessive government intervention make it difficult to start new businesses in Morocco.
This bureaucratic system and the state’s heavy hand in the economy create challenges in both creating wealth and accessing loans.
Fred McMahon, a resident fellow at the Fraser Institute, presented the findings of the latest global economic freedom report, highlighting Morocco’s progress while also noting areas for improvement.
The report found that Morocco’s performance was particularly weak in the areas of sound money and trade freedom. The country’s high inflation rate and relatively closed market were cited as major concerns.
Participants in the forum agreed that while Morocco has made progress in recent years, there is still much work to be done to fully realize the benefits of economic freedom.
They called for continued reforms to reduce the size of government, strengthen the rule of law, and improve the business environment.
The forum concluded with a call for the Moroccan government to implement policies that promote economic freedom and foster sustainable growth.
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