Greetings and salutations to those of you out there in Africana Studies 221 land! Today's post concerns the country's current economic situation, both domestically and in relation to global markets. All info comes from, as usual, the thoughtful and well-read people who compile the CIA's World Factbook entry for Morocco.
Up until the recent developments of Arab Spring in 2011, Morocco's economy has been sound for many years. Its proximity to Europe makes an economic relationship between the two areas convenient and profitable. This coupled with low labor costs create an economy that is diverse, open, and largely market-oriented. Now, keep in mind I have yet to take an economics course (gotta love Hamilton's open curriculum), but from what I understand, this means that the Moroccan economy has many different aspects to it and is mostly based on supply and demand (Okay, okay, I got some help from the Wikipedia entry for "Market economy"...).
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| A Moroccan farmer |
The economy since King Mohammed VI took the throne in 1999 has for the most part been stable. Different sectors like agriculture, tourism, phosphates, textiles, apparels, and subcomponents all are key parts of Morocco's economy. In the past decade or so, Morocco has enjoyed steady growth, low inflation, and decreased government debt. Nearly half of the population works in the agriculture industry.
With that said, one might conclude that the people of Morocco must therefore live comfortably. This is not the case, as the country has high rates of unemployment and poverty. The unemployment rate is currently 9% and 15% of the population lives below the poverty line. This makes me wonder: who benefits from the economy? What are some policies the new democratic republic government can make in order to create more jobs? Other current challenges that Morocco's economy faces include corruption, increased government spending, and socioeconomic disparities among the Moroccan people. Hopefully under the new constitution, the democratic-republic government can address some of these concerns.
It's cool to read about the economies of small countries, isn't it! (Sorry, I am an econ major and one of the few that actually is nerdy about it). The thing that always blows my mind is thinking about how genuinely vulnerable tiny countries are to economic conditions of the major powers. Although you didn't articulate it in you're post, I would assume that the economic turmoil that Morocco has been facing since spring 2011 has been fallout from the currency problems in Europe. Think about how much America has been suffering from Europe fiscal irresponsibility, then imagine being a nation the size of a small state!
ReplyDeleteI had no idea you were such an econ buff, Bobby! Your point about the effect of world powers' economic problems on smaller countries is well taken. It's interesting to think about how globalization has made it so that economic turmoil has a domino effect now that so many countries are all connected by trade and technology.
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